In support of South African diversified energy company Sasol’s decarbonization efforts, AB continued engaging in 2021 as colead of the Climate Action 100+ (CA 100+) investor cohort. Although Sasol still has a long road ahead to achieve its climate objectives, the company made substantial progress in 2021.
After engaging with Sasol early in 2021, AB and the other CA100+ investors escalated concerns about the company’s decarbonization plans to the firm’s board. In early September, we wrote to the board relaying investors’ expectations for disclosure of its climate strategy, including a suitable transition plan, a clear approach to net zero by 2050, a supporting capital plan and openness about remaining uncertainties.
Later that month, Sasol released robust plans for its net-zero 2050 commitment, new emissions-reduction targets, a decarbonization strategy, capital-allocation plans, a CA100+ benchmark self-assessment and a TCFD statement. It also increased its renewable energy procurement at its Secunda site—the largest single carbon-emitting site in the world—from 900 to 1,200 megawatts by 2030.
In November, AB and the CA100+ cohort met with Sasol’s board to discuss the strategy, its implementation and the financial, political, and operational feasibility of proposed solutions and fossil fuel alternatives. Later that month, management’s nonbinding climate-transition-plan resolution was approved by 96% of shareholders. AB and the CA100+ investor cohort will send a follow-up letter emphasizing the importance of effectively implementing the plan and will continue engaging in 2022.