Picture: FINANCIAL MAIL
Picture: FINANCIAL MAIL

Sasol, SA’s second-biggest producer of greenhouse gases after Eskom, pledged more clarity on plans to reduce its effects on the environment.

The company, which together with Eskom also produces pollutants such as sulphur dioxide and particulate emissions, said its long-term strategy would be released in 2020.

Sasol has already pledged to reduce greenhouse gas emissions by at least 10% by 2030 in its inaugural climate-change report released earlier in 2019.

The company will lay out plans to use more natural gas, rather than coal, in its operations, as well as so-called green hydrogen, which is produced from renewable energy sources, CEO Fleetwood Grobler said at the company’s AGM.

Sasol is coming under pressure from environmental activists and investors to improve its performance on climate matters. The company refused to put resolutions demanding more clarity on its strategy, to shareholders and activists gathered outside the meeting in northern Johannesburg.

Grobler and chair Mandla Gantsho stressed that while the company acknowledged its effect on climate change, its actions needed to be balanced with SA’s inequality, poverty and unemployment levels in mind.

“No company can have a sustainable future without the support and sympathy of society,” Grobler said. “This involves difficult questions of balance.”

The success of climate mitigation efforts will be one of the measures used to determine Sasol’s executives’ pay from 2021, Grobler said.

Bloomberg