- Sasol Limited has recently paid to publish a letter in several local media outlets.
- The letter, from Sasolโs CEO Fleetwood Grobler, is addressed to โstakeholdersโ and titled โBalancing People, Planet, Profit on our pathway to Net Zeroโ.
The letter states that: โSome views about Sasolโs approach have, regrettably, been inaccurate. It is therefore important that we set the record straightโ. Although Sasol has on several recent occasions stated that Just Shareโs analysis of its climate disclosures is โinaccurateโ and โmisleadingโ, its sponsored letter does not deal with the concerns raised by Just Share, including:
- Sasolโs admission in its 2023 climate disclosures that โexternal factors โฆ threaten to hinder the delivery we are aiming to achieve by 2030โ;
- The inexplicable removal from its 2023 disclosures of a target to procure 40% renewable energy for its Energy Business by 2026; and
- The fact that achieving its 2030 targets requires a significant acceleration in the pace of greenhouse gas emission reductions compared to what Sasol has been able to achieve over the last 19 years, and this in circumstances where emissions increased in 2023, and are set to further increase in 2024.
Related news: SASOL AGM decends into chaos over flawed climate goals – cancelled
On 2 November 2023, Just Share published a briefing assessing Sasolโs 2023 climate disclosures. Although Sasolโs sponsored open letter does not reference Just Shareโs briefing, its two previous media releases, claiming that Just Shareโs briefing is โinaccurateโ and โmisleadingโ, as well as other statements to the media, make clear that the so-called inaccuracies it intends to correct include the content of Just Shareโs briefing.
Total annual compensation for outgoing CEO, Fleetwood Grobler, was R41million for the year to June 2023. Image credit: Freddy Mavunda
Sasol also publicly criticised Old Mutual Investment Group (OMIG), one of its biggest shareholders, for pre-declaring its intention to vote against Sasolโs 2023 โsay on climateโ resolution. Sasol stated that OMIG โappears to have placed significant reliance on the Just Share report without proper consideration and/or recognition of any of Sasolโs recent disclosures and assertions made in response, which point to factual inaccuracies contained in Just Shareโs reportโ.
Ninety One has also pre-declared its intention to vote against Sasolโs climate change resolution. Although Ninety Oneโs concerns are similar to those of Just Share and OMIG, Sasol has not alleged that Ninety One placed improper reliance on Just Shareโs briefing in making its decision not to support Sasolโs climate plans.
In none of its public statements, however, has Sasol demonstrated why Just Shareโs briefing is โmisleading and inaccurateโ, nor has it โcorrectedโ any of the facts set out in our briefing.
Sasol share price is down nearly 35% year to date. Image credit: JSE
The briefing is based entirely on Sasolโs own disclosures, and is an accurate reflection of what Sasol has reported, bolstered where appropriate by reasonable conclusions based on Sasolโs disclosures.
In this statement, we address the aspects of our briefing which appear, based on Sasolโs responses, to have caused it the most concern, and demonstrate Sasolโs failure to provide evidence that these are not accurate.
For the reasons set out in this statement and in our briefing, and in the absence of any credible basis for Sasolโs accusation that our briefing is either inaccurate or misleading, Just Share reiterates its voting recommendations for Sasolโs yet-to-be rescheduled Annual General Meeting i.e.:
- that shareholdersย vote against Sasolโs โSay on Climateโ resolution; and
- that shareholders vote against the re-election of non-executive directorย Muriel Dube.
Author: Just Shareย
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