Sasol under fire over emissions
REDUCTION: TARGETS NOT IN LINE WITH PARIS GOALS
For third year, company refuses to table resolutions on climate change.
Energy and chemical giant Sasol is one of 100 companies responsible for 71% of the world’s industrial greenhouse gas (GHG) emissions. Since 1988, Sasol has consistently contributed to GHG emissions, with its Secunda plant identified as the world’s largest single point-source GHG emitter.
Although it disclosed its emissions in annual reports, shareholders calling for it to commit to the Paris Agreement are being prevented from tabling proposed climate risk-related resolutions.
One is Just Share, a nonprofit shareholder activism and responsible investment organisation. Executive director Tracey Davies said Sasol’s emission reduction targets were not aligned with the Paris Goals and were flawed in addressing indirect emissions.
Just Share and other shareholders regularly submit resolutions to keep companies in check, which Davies said ensures transparency and improves corporate governance. “In South African law, more than 50% of shareholders have to approve the resolution before it is binding.”
But Sasol is not playing ball and for the third year in a row has refused to table climate change-related resolutions.
Its reasons included that co-fi lers within the company are not legally entitled to table shareholder resolutions relating to climate risk, that their emissions reduction targets are on course, and that resolutions were submitted too late – the latter of which was, according to Davies, submitted 23 business days before Sasol’s annual general meeting with another shareholder, R aith Foundation.
“Sasol accuses the proposing shareholders of trying to ‘micromanage’ the company...” said Davies.
Sasol’s total emissions in 2019 were around 108.8 megatons of carbon dioxide.
“Climate science makes it clear that, by 2030 and in order to limit the most severe impacts of the climate crisis, global GHG emissions must be reduced by 45% from 2010 levels,” Just Share director of climate change engagement, Robyn Hugo said.
“Climate risk poses material financial risk to investors and if they are not permitted to vote on requests such as those posed by our resolution, this presents a serious barrier to their ability to comprehensively assess risk...” Hugo said.