Sasol Limited Integrated Report 2018

Using the six capitals to create value

We create value for our stakeholders by developing and commercialising technologies and building and operating facilities to convert mostly low-cost hydrocarbon feedstock into a range of high-value product streams. These include chemicals used in industrial and consumer products, liquid fuels used to move people and goods, and electricity to power our facilities and contribute to South Africa's and Mozambique's power-generating capacity.

We have a combination of assets, skills and relationships that place us in a strong position to deliver value-based growth. When making decisions on how to manage our business, we take these, as well as other resources and relationships that are critical to our ability to create value sustainably, into account.

We refer to these as the six capitals. Inputs of each are needed for the effective production and delivery of Sasol goods and services, thereby generating value for all our stakeholders. In so doing, we contribute towards advancing several of the UN Sustainable Development Goals (SDGs).

IN MANAGING
OUR SIX
CAPITALS,
THE BOARD AND
MANAGEMENT
CONTINUES TO:

EVALUATE risk tolerance and risk appetite measures

ASSESS impact on our material matters

EVALUATE impact on our strategic objectives

ALLOCATE capital to further unlock value

inputs

HUMAN CAPITAL

To grow and steer our business and operate our facilities safely and efficiently, we require highperforming, innovative and diverse people with the right skills and experience. We focus on being an inclusive organisation, building and retaining critical skills and developing our leadership capabilities.

SOCIAL AND RELATIONSHIP CAPITAL

To create an enabling environment for operations and investment, we integrate the needs of our stakeholders into our business and we deliver on our commitments. We actively engage stakeholders to ensure we progress on our value-based growth strategy and have a multistakeholder approach to solve difficult challenges.

NATURAL CAPITAL

We require natural gas, shale gas, coal and crude oil as well as air, water, land and energy to convert hydrocarbon reserves into value-adding product streams.

FINANCIAL CAPITAL

We are disciplined in the way in which we allocate our financial capital. We use cash generated by our operations and investments, as well as debt and equity financing, to run our business and fund growth.

MANUFACTURED CAPITAL

By investing in plant and equipment, we are able to convert hydrocarbon resources into high-value product streams and operate reliably. These investments also help manage our environmental footprint and assist us to comply with regulatory requirements.

INTELLECTUAL CAPITAL

Our proprietary or licensed technologies, software, licences, procedures and protocols support Sasol’s competitive advantage. Through various initiatives that include operational excellence, Continuous Improvement and digitalisation, we enhance our robust foundation.

DEVELOP
new value-adding
opportunities

GROW the business sustainably

INVEST smartly to retain
current operations

EVALUATE business
performance continuously
against strategic
targets

key
processes

COAL-TO-LIQUIDS (CTL)

GAS-TO-LIQUIDS (GTL)

CHEMICAL PROCESSES

ELECTRICITY

GAS-TO-POWER (GTP)

outputs

We produce bulk fuel and chemical commodities as well as a vast spectrum of high value-add differentiated petrochemical products

outcomes
for our
stakeholders

FINANCIAL IMPACT Prioritised investment in research and development R1,0 bn
Total capital expenditure R53,4 bn		Earnings R8,7 bn

SUSTAINABILITY IMPACT
Total greenhouse gas emissions 67 412 kilotons (C02 equivalent)		Total water consumption 134,4 thousand cubic meters		RCR of 0,27 regrettably 4 fatalities
Total energy use 413 470 thousand gigajoules		Extended home ownership programme benefiting 140 mining employees since January 2016		B-BBEE status Level 6

VALUE DISTRIBUTED
Wages and benefits paid R30 bn		Skills and socio- economic development spend R2 bn		Dividends paid R8 bn

Preferential procurement of over R12,7 bn		Issued 3 million Sasol ordinary BEE shares to selected members of black public at no cost as part of Sasol Khanyisa

UNDERPINNED BY: