Sasol Sustainability Report 2018

DRIVING SUSTAINABLE AIR QUALITY Our ability to anticipate and respond to the changing regulatory and policy landscape is one of our most material challenges, particularly in the context of the air quality legislation applicable to our existing plants in South Africa. Improving air quality at our operations We remain committed to compliance and to promoting sustainable ambient air quality improvement at all our operations. We continue to entrench leading environmental indicators at all our operations, in line with our proactive incident prevention philosophy. We investigate emission incidents to ensure the Group-wide sharing of lessons learnt and associated optimisation of applicable control regimes. Meeting minimum emission standards • In South Africa, legislated minimum emission standards (MES) required that our plants meet existing plant standards for point sources by April 2015. Subsequently, more stringent new plant standards must also be met by April 2020. We already meet most of the MES for existing plants, and we believe we are on track to concurrently meet both the remaining existing and new plant standards for all MES, with the exception of boiler plant sulphur dioxide (S0 2 ) by April 2025. Our roadmaps, in certain respects, therefore aim for an integrated solution for purposes of meeting both new and existing plant standards and we discuss these in more detail below. • We are executing our committed air quality improvement roadmaps and our community- based offsets whilst simultaneously advancing technology assessments for certain challenging standards where no feasible solutions currently exist to meet the requirements. In February 2018, we communicated at the Parliamentary Portfolio Committee Environmental Affairs (PPCEA) session that our roadmaps are progressing as planned. Our presentation in this regard can be downloaded from the website http://pmg-assets.s3-website-eu- west-1.amazonaws.com/180206sasol.pdf. To ensure success and enable compliance, we continue to fund and commit capital to environmental compliance projects. We have a capital allocation framework to assist us in allocating such capital and prioritising capital allocation towards the retention of Sasol’s licence to operate. Details regarding capital allocation and utilisation are included in the annual financial statements. • While we continue to make good progress, we will be reliant on further postponements to 2025 in order to enable the safe and successful execution of the associated projects within the committed timeframes, and to seek a longer-term solution for the challenging new plant standard for SO 2 emissions. Sasol’s air quality impact on the surrounding airshed is assessed as part of our postponement application and these reports, together with further information, are available via the following link at https://www.srk.co.za/en/za-sasol-postponements . These assessments confirm that Sasol’s emissions do not cause exceedances of the national ambient air quality standards. We have, however, identified that a significant concern in the vicinity of our plants is the high ambient concentration of particulate matter (PM) (including smoke), which is especially evident during winter months as a result of domestic coal burning for heating and cooking. We provide more detail about the opportunity for Sasol to help improve overall air quality in our section on beyond- the-factory-fence initiatives. • Over this past year, we have made significant progress to meet the new plant standards at our Secunda facility, including the successful commissioning of seven regenerative thermal oxidisers as part of the reduction of volatile organic compounds (VOCs) in the tar value chain. Additionally VOC abatement equipment has been installed on a tank to reduce emissions. The installation of medium frequency inverters in a boiler is under way and is aimed at helping to reduce particulate matter emissions, as well as high frequency and high voltage pulse energisation inverters are being installed for testing. • For Sasolburg Operations, of the more than 100 stacks on site, only seven stacks (thermal oxidation and boilers) do not meet existing plant standards as yet. For Steam Station 2, both existing and new plant standards for PM will be met by 2020. During the year, we have installed nitrous oxide and particulate matter abatement technologies on a boiler and testing of the technology is in progress. • Sasol has raised the challenges that it faces in meeting the new plant standards in relation to SO 2 standards with government and in the PPCEA. It is important to note that the measured levels of SO 2 in the airsheds where we operate are well below the internationally accepted health standard requirements. As mentioned, at some of the government engagement sessions, presentations were delivered in which Sasol explains the challenge it faces in complying with new plant standards; however we remain committed to finding sustainable solutions to address this and to advancing our technology assessments, either alone or in collaboration with others. Our presentations also reflect how Sasol, in the meantime, continues to ENVIRONMENTAL AND PRODUCT SUSTAINABILITY (CONTINUED) Sasol Sustainability Report 2018 24