Tracking our progress against our commitments on material challenges

 
A dredger removing sediment from an evaporator dam to increase capacity for water received from Secunda plants, as well as rain water.
 
The following table outlines the actions we have taken to address the commitments we made in our 2009 sustainable development report in terms of the main material issues that we focused on last year.
 
Material challenges and commitments
(as outlined in our 2009 report) 
What some of our stakeholders have said
Our progress

Ethics

   
Continue to root out any noncompliance within our businesses and to achieve full compliance. 
Complete the competition law compliance review of all our businesses by the end of the 2009 calendar year. 
Continue to work with leadership and leadership teams on our six "levers of influence". 
Step up stakeholder engagement regarding Sasol code of ethics and specific provisions in the code. 
Increase emphasis on specific programmes related to human rights, including improved awareness and understanding. 
"Much has been made of Sasol running foul of competition authorities in both South Africa and Europe. These events have not only hit the business in the pocket but has also negatively impacted on the social image of the firm and weighed on it from an investment perspective."
ManufacturingHub.co.za

"Fawu is pleased at the news that the chemical division of Sasol was forced to embark on a divestiture programme in which it will off-load some of its fertiliser plants to other players as part of enhancing competition."
Food and Allied Workers Union (FAWU) 
We completed a comprehensive competition law compliance review of all our businesses; and appointed a dedicated internal team to roll out our compliance programmes. 
We rolled out our new Competition Law Policy and Guidelines to more than 13 000 employees, provided online or via face-to-face training to more than 4 000 priority employees on competition laws, and ran more than 60 workshops on corruption and competition issues. 
We have commenced a process of engaging our suppliers and service providers, and changed our contracts with them, to include ethics and our code of conduct as a requirement for doing business with Sasol. 

Safety

   
Short term:
Develop leading performance indicators. 
Focus behavioural based safety (BBS) programmes on quality of interactions and ensure collected data is effectively used to reduce exposure to risks. 

Over the next two years:
Update our culture survey to plot our position on the safety maturity curve. 
Build on existing ad-hoc business unit initiatives to develop safety leadership at both management and supervisory levels. 
Continue with development of roles, responsibilities and accountabilities to improve integration between leadership and employee-engagement systems. 
"Despite a strong record, there are several opportunities that we see for Sasol to improve its safety functioning. Taking deliberate, strategic steps would significantly enhance the effectiveness of existing safety activities and position the organisation for long-term excellence."
Leo Strydom (behaviour based initiatives)

"Overall results for the year are a persistent plateau in the group recordable case rate (RCR) and an increase in the number of significant incidents. The relevant question for all leaders to reflect on is: 'What must we do differently to get the improvement we all strive for?'
Howard Parry: general manager, Operations Excellence and SH&E 
We have developed a revised Safety Improvement Plan for 2011 that integrates existing safety improvement actions with specific new interventions at both business unit and group level. 
Safety commitments and leadership principles have been revisited and refreshed in all business units. 
Reviews of safety systems and practices have been held in specific business units to identify improvement opportunities. 
Facilitated workgroup discussions have been held to engage with employees regarding improvements and required behaviour changes. 
An improved and standardised procedure to conduct root cause analysis has been implemented. 
We have identified several key leading indicators of performance that will be rolled out throughout the group in 2011. 
Our nine "life saving behaviours" have been emphasised together with a focus on the need for effective consequence management. 
The organisational design of the safety, health and environment (SH&E) function has been improved as part of our Functional Excellence programme and will strengthen governance and standardisation of best practices across the group. 

Workforce diversity

   
Meet our employment equity targets with the aim of addressing areas of under-representation across occupational levels. 
Implement culture change workshops in an integrated manner to all employees to achieve behaviour and mind set shifts. 
Provide continuous support for line management and human resources practitioners with regards to integrated disability management in the workplace. 
Continue towards meeting our self-imposed targets for improving our broad-based black economic empowerment scorecard. 
Focus further on the gender issue, particularly for black women. 
"Diversity in companies, including at senior level, is good for business and not only because it ticks the right boxes: it's good for the bottom line. Research by Accenture shows there is a significant correlation between stock market performance and both the gender mix and the international diversity of a company's board."
Business Report

"It is pleasing to see the genuine efforts of Sasol in terms of achieving diversity at the Board level. Of particular importance is the fact that Sasol has managed to break through the psychological barrier by appointing black people to run strategic areas like finance and operations. The challenge facing Sasol is to ensure that the middle to senior management layers below the executive directors reflect the economic active population of South Africa."
Black Management Forum (2009 dialogue) 
As outlined in this report we have made progress and achieved a level 4 BEE certificate in September 2010. 
As part of our recently initiated Global Diversity Journey, we have set up diversity forums in each of our business units; chaired by the business unit managing directors and attended by leadership, unions and employee representatives, these forums strive to create coownership of the achievement of our diversity goals. 
In March 2009, we launched a disability equity awareness campaign within all of our South African operations; we also undertook a comprehensive audit of our human resources policies and procedures, and our physical facilities, to ensure that any discriminatory barriers towards persons with disabilities are removed. 

Skills development

   
Build capabilities of employees to develop innovative solutions required to address current and future challenges. 
Ensure ongoing focus on leadership development. 
Contribute meaningfully to addressing the skills shortage and unemployment concerns in South Africa. 
"I hope that the government and Sasol will strengthen the partnership that exists between us. I really believe we must do more to increase the number of competent researchers and technologists in SA and we should use industry skills and opportunities as the base for the kind of growth that we need. One of the things that I am looking for is increased opportunities for young scientists to develop experienced research skills through facilities such as the Sasol Fuels Application Centre."
Naledi Pandor, SA Minister of Science and Technology

"It is widely accepted that South Africa's artisan shortage is a chronic problem."
Engineering News 
During the year, we closed-out our Project TalentGro initiative and integrated its activities into our business operations through our global learning function, which has the responsibility for establishing a group-wide learning approach comparable with world best practices. 
We have developed a group-wide learning strategy based on a standardised curriculum that adopts a blended learning approach combining classroom and computer-based learning delivery, and have invested heavily in developing internal talent (see table). 
We continue to run one of the largest bursary schemes in South Africa, and have invested in skills development initiatives for artisans, engineering contractors and chartered accountants, as well as in science education at school level. 

Energy security and climate change

   
Improve energy efficiency and reduce carbon intensity of current processes while planning to reposition the company for a carbon-constrained future. 
Implement approved capex of R4,8 billion that will achieve GHG emission reductions of 2,04 million tons by 2012. 
Further our investigations into carbon capture and storage (CCS). 
Drive further internal and external communication initiatives regarding climate change and our role in reducing emissions. 
“Sasol’s really big dilemma is managing the conflict between energy security – its liquid fuel saves South Africa R40 billion a year in foreign exchange – in an age in which the world’s carbon challenge has become paramount. Looked at another way, it straddles the conflict between generating short-term profit for shareholders and long-term sustainability of the environment (and by extension long-term profit).”
Ingi Salgado, Business Report

“Sasol is one of the largest southern corporate multinationals, and must be critically viewed as the world views other oil majors such as Shell, BP and Exxon Mobil. It is critical that they be dealt (with) accordingly as they seek ever-increasing profits through their climate-heavy, problematic CTL technogies.”
Bobby Peek, GroundWork 
Our GHG emissions intensity for 2010 (measured as carbon dioxide equivalent per ton of production) reduced from 3,24 in 2009 to 3,05 in 2010. 
Sasol New Energy has made further progress in consolidating its activities on energy efficiency, renewable energy, low-carbon electricity, and carbon capture and storage. 
We implemented various energy efficiency related projects, with a capital expenditure value of R100 million; collectively these will achieve a reduction of around 760 000 tons of GHG per annum. 
As part of the process of monitoring and tracking performance against our targets we have started to forecast our GHG emissions to 2050. 
An environmental communication task team has been set up to assist with the development and rollout of climate change communications. 

Water

   
Seek to further reduce our water consumption. 
Continue to take a holistic view regarding water access and focus on collective action by all users to reduce inefficiencies in the catchments where we operate. 
Continue to achieve significant progress on all six key focus areas of the UN Global Compact CEO Water Mandate. 
Further address our mine water effluent challenges. 
Work towards our vision of operating a zero waste-water discharge facility in Sasolburg. 
"By 2030, under an average economic growth scenario and if no efficiency gains are assumed, global water requirements would grow from 4 500 billion cubic metres (m3) today to 6 900 billion m3, a full 40% above current accessible, reliable supply. Business-as-usual in the water sector is no longer an option for most countries." 
2030 Water Resources Group

"In South Africa, Sasol should develop proposals to contribute to better water management in general rather than simply assuring its own access."
Professor Mike Muller, Wits University (2009 dialogue)
Our total water demand for 2010 was 151 million m3, as compared with 152 million m3 in 2009 and 154 million m3 in 2008. The initiatives taken to reduce our water consumptions are reviewed in this report. 
In line with our commitment to a catchment management approach, we have been active this year in various collaborative initiatives aimed at addressing water concerns beyond our factory fence. 
Our commitment to aligning with the UN Global Compact CEO Water Mandate is reflected in our review of our water performance, which is framed in the context of the six key focus areas of the CEO Water Mandate. 
Our progress in addressing mine water management challenges at Sasol Mining, and more detail on our activities aimed at advancing technology responses to managing water and effluents, is outlined in our online sustainable development report. 
 
View a detailed table of Sasol Group risks and our approach to managing these risks.
 
(GRI – 1.2)