(Bloomberg) -- Sasol Ltd., South Africa’s second biggest emitter of greenhouse gases, is revising how to achieve an emissions reduction of 30% by 2030, drawing further skepticism over its commitment to the goal.
The world’s largest producer of fuel from coal plans to displace the dirtiest fossil fuel with natural gas in its manufacturing processes along with lining up renewable energy and clean power solutions, but Sasol Chief Executive Officer Simon Baloyi has taken another look at that strategy.
Baloyi said that unanticipated factors such as a shortage of transmission grid connections would make a target range between 25% and 35% more realistic, according to a Sept. 1 interview published in the Sunday Times. That’s raised alarms for environmental groups already critical of Sasol.
“Baloyi’s interview has dashed any hope that new leadership at Sasol might bring a more responsible, informed, and credible approach to the company’s biggest risk,” said Just Share, a Cape Town-based investor activist organization. “It is notable that he does not even attempt to explain why this back-track is required.”
Sasol’s target of a 30% reduction by 2030 remains, the company said in a reply to questions and in an exchange filing. “However, we are in the process of refining our pathways toward achieving this target to ensure that we remain agile, mitigate potential risks and also respond to new emerging opportunities, given the changing global landscape and energy security needs.”
Refinements to the strategy could include changes in feedstock, energy and products, Sasol said. The company is also working to increase volumes and profitability from its Secunda operations — the world’s largest single-point emitter of greenhouse gas.
Sasol’s emissions for 2024 showed a 5% reduction from the 2017 baseline it references to measure the target, even though it increased for a second consecutive year.
Sasol needs a larger shift by 2050, when it plans to reach net zero emissions. Baloyi’s predecessor Fleetwood Grobler outlined plans to use green hydrogen — a developing technology that burns without generating climate-warming greenhouse gases and is produced by splitting water using renewable energy. However, that remains prohibitively expensive.
Emissions have become a contentious issue for the company. Sasol’s annual general meeting, initially held at the company’s headquarters in Johannesburg on Nov. 17, was rescheduled and moved online after activists stormed the stage and refused to leave.
“We look forward to seeing how Sasol positions its annual ‘say on climate’ shareholder resolution this year, and how institutional investors respond to Sasol’s climb-down from a target that it has countless times over the past three years insisted it will meet,” Just Share said.
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