Sasol Sustainability Report 2018

ENVIRONMENTAL COMPLIANCE Sasol is committed to complying with all applicable laws and obligations arising from our environmental authorisations. On-going compliance is managed, by dedicated environmental managers with the support of subject matter experts for water, waste, air quality, climate change and land and biodiversity management. It is enabled by our Group Compliance Policy and associated Compliance Programmes. Global authority inspections During the reporting period, our operations globally have been subject to various environmental authority inspections and associated compliance enforcement actions. We collaborated fully with the authorities during these inspections, resolved enquiries and duly responded to subsequent enforcement actions. Key aspects are highlighted below. In South Africa , the Department of Water and Sanitation (DWS) conducted various routine inspections at some of our mining collieries in Secunda and Sasolburg, at the Secunda Synfuels Operations’ (SSO) sewage plant, as well as at our Sasolburg Operations (SO) and Natref in Sasolburg. The reports for SO and SSO are still awaited. Sasol Mining has subsequently submitted requests for amendment of impractical monitoring conditions (which have already been discussed with the DWS). The findings at Natref were related to water quality exceedances as a consequence of the specified location for monitoring, with the associated unintended consequence that Natref’s monitoring results are impacted by downstream users. This is being addressed through a pending amendment application. Air Quality compliance The Gert Sibande local licensing authority conducted an air quality compliance inspection at our Secunda Chemical Operations (SCO) in Secunda and the report is awaited. We previously reported that the Department of Environmental Affairs’ (DEA) enforcement directorate communicated its intentions regarding enforcement action related to air quality exceedances associated with three thermal oxidation units at SO. This was surpassed by a new, but related notice of intention to implement administrative enforcement action, issued in early 2018. Following an extensive response submitted by SO, the DEA confirmed that it would not proceed with further administrative enforcement action in this matter. It remains SO’s intent to only re-commission these incinerators when it is satisfied that ongoing compliance can be sustained with the requirements of its recently varied atmospheric emission licence (AEL). No final enforcement actions were instituted and no fines and penalties were imposed as a consequence of these inspections or the enforcement actions reported in 2017. Further afield In Mozambique , the environmental authority conducted an environmental compliance inspection at Sasol’s operations, and commended Sasol on its commitment to and overall compliance performance. Our Eurasian Operations underwent various inspections. No deviations were noted at our operations in Novaky, Solvakia. A hazardous waste warehouse at our China operations was upgraded to meet the specifications of the Nanjing Environmental Bureau. At our operations in Augusta, Italy, a joint inspection and sampling campaign were undertaken by Sasol and the authorities. The sampling results confirmed compliance with applicable groundwater limits. At our Brunsbüttel operations in Germany, the industrial emissions directive inspection noted no deviations from a waste management perspective, but abatement equipment was subsequently installed to bring the plant into compliance with the applicable atmospheric emission limits. No deviations were noted at Hamburg Sasol Wax’s tank farm, hydrogenation plants and the ammonia cooling plant. Following an inspection at our operations in Marl, the authority confirmed its support for the plant’s mitigation of dioxin levels in waste water and periodic status reports are submitted to the authority. In North America , a warning letter was received from the environmental regulatory authorities following a previous inspection, noting concerns regarding water sampling. Sasol submitted a response, thereby preventing further enforcement action being instituted. In addition, a notice of potential penalty (NOPP) was received from the authorities in Louisiana in relation to an unauthorised release from the Comonomer Unit. In the same NOPP received, a dust complaint was also cited in relation to the Lake Charles Chemical Project (LCCP) construction activities. A settlement offer in the amount of USD 2500 has been proposed to settle this enforcement matter. ENVIRONMENTAL AND PRODUCT SUSTAINABILITY (CONTINUED) 22 Sasol Sustainability Report 2018