Question 1

Sasol is dedicated to developing chemical and energy solutions that contribute to a

healthy planet, society, and business. To ensure that its business is environmentally,
socially, and economically sustainable, Sasol has prioritized four relevant Sustainable
Development Goals (SDGs). These are as follows: decent work and economic growth,
responsible consumption and production, climate action, and collaboration to achieve
the goals.

Sasol has a unique set of assets, skills, and relationships that position it to deliver
value-based growth. When deciding how to manage its business, Sasol considers
these, as well as other resources and relationships critical to its ability to create value
sustainably. Human Capital, Social and Relationship Capital, Natural Capital, Financial
Capital, Manufactured Capital, and Intellectual Capital are the six capital letters that
create value. Each input is required for the efficient production and delivery of Sasol
goods and services, generating value for all Sasol stakeholders. As a result, it helps to
advance several of the UN Sustainable Development Goals (SDGs).

Sasol is dedicated to developing chemical and energy solutions that contribute to a

healthy planet, society, and business. To ensure our business is environmentally,
socially, and economically sustainable, Sasol has prioritized four relevant Sustainable
Development Goals (SDGs). These are decent work and economic growth, responsible
consumption and production, climate action, and collaboration to achieve the goals.

Sasol adds value to its stakeholders by developing and commercializing technologies,

as well as constructing and operating facilities that convert mostly low-cost hydrocarbon
feedstock into a variety of high-value product streams. These include chemicals used in
industrial and consumer products, liquid fuels used to transport people and goods, and
electricity used to power our facilities and contribute to the power generation capacity of
South Africa and Mozambique.

Sasol has a unique set of assets, skills, and relationships that position it to deliver
value-based growth. When deciding how to manage its business, Sasol considers

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 these, as well as other resources and relationships critical to its ability to create value
sustainably.

In the year 2000, Sasol's group executive committee (GEC) formally adopted
sustainable development as a group-wide strategic business goal. Since then, Sasol
has taken steps to incorporate sustainable development principles into its operations.

Sasol provides its businesses with the policies, governance structures, targets, and
reporting systems required to manage the risks and opportunities presented by a rapidly
changing global environment through our sustainable development management
framework. These policies, structures, and goals help its businesses develop and
implement systems and procedures that are consistent with the group's commitment to
sustainable development. Sasol believes that there is a strong causal relationship
between promoting sustainable development and meeting its strategic growth goals. At
the most basic level, the group's business thrives in a stable and prosperous society.
The ability of Sasol to attract and retain the best employees, to ensure continued
access to vital natural resources and feedstock, and to maintain positive and trust-
based relationships with its key stakeholders are all critical to the company's growth. To
achieve each of these elements, we must be informed, responsive, and socially
responsible.

In South Africa, the Sasol group of companies is developing a comprehensive

environmental management strategy. The company is the world leader in the production
of coal-derived oil, gas, and petrochemicals. Despite the fact that industrial
environmental management is still a relatively new concept in South Africa,
environmental groups and other lobbying groups in South Africa are increasingly
subjecting industry to environmental pressures. The opening of global markets for South
African products, as well as a growing awareness of the environmental pressures
affecting overseas industry and the expectation that this trend will spread to South
Africa aid this. Despite the challenges of promoting environmental management,
success in a variety of areas has been demonstrated. Examples of accomplishments in
the systematic improvement of environmental protection measures are provided.

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 For many years, Sasol's commitment to environmental conservation has been
enshrined in its mission statement, and the environmental policy (updated in 1995)
outlines the company's commitment to environmental management.

Sasol's policy, for example, is to minimize its environmental impact by conducting

environmental impact assessments (EIAs), controlling emissions from cradle to grave
with the best available and cost-effective technology, and using natural resources
efficiently. Sasol strives to conduct and support research aimed at limiting the
environmental impact of its operations, to cooperate with authorities, and to adhere to
laws and standards aimed at regulating environmental pollution. Conducting a
comprehensive environmental impact assessment for each new plant and project is
regarded as an essential component in the ultimate total quality management of a
commissioned plant and project execution. In this way, the Sasol Fibres plant, the Alpha
Olefins plant, and the two open-cast collieries are just a few of the many Sasol projects
benefiting from early environmental planning and impact mitigation.

Since the Sasol process consumes a lot of water and South Africa is generally a water-
stressed country, water conservation and pollution prevention are top priorities.

A minimal discharge policy and the resulting effluent recycling prevents pollution of the
Eastern Transvaal Highveld's limited water sources, saving 80 megaliters of water per
day. New projects at Sasol Chemical Industries alone in 1995 enabled this 1950s plant
to save 10,5 million liters of water per year by using waste water for fire fighting and
gardening, re-using water in coolers, and minimizing cooling tower losses. This initiative
also saves R 2 220 000 (US$6 660 000) per year and reduces raw water consumption
from 90 to 75 million liters per day. More water-saving projects are being researched.

Aground and surface waters are continuously monitored at all plants. Surface water is
monitored at several points upstream and downstream of the Sasol Secunda plants.
This 13km2 industrial complex is monitored by 45 boreholes, which allow for
fingerprinting of ground water contamination.

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 Sasol is concerned about air quality because its plants are located in both the Vaal
Triangle, an industrial center south of Johannesburg, and the Eastern Transvaal
Highveld, where coal is used to generate 80% of South Africa's power. These two
regions are well-known for their poor air quality, which is exacerbated by direct coal
combustion in low-income households, veld fires in winter, and high pollen counts. This
overall situation necessitates that the Sasol plants limit their emissions to a bare
minimum.

Particulate air pollution from power plants is reduced by using electrostatic precipitators
and ammonia dosing. The majority of the sulfur in the form of H2S is removed from the
flue gases of the gasification plant. This recovered by-product is used in the production
of a variety of consumer products. So far, R506 million has been spent solely on
controlling sulfur emissions into the atmosphere, with an additional R19 million spent on
ongoing research in this area.

Monitoring stations in and around the plants measure various atmospheric emissions to
provide continuous information on the plants' environmental status. By prior agreement,
the results of monitoring are reported to authorities.

Sasol meets - and in some cases exceeds - permit requirements for most gaseous and
particulate emissions. However, the sulfur recovery system continues to pose a
significant environmental challenge for Sasol. Sasol meets – and in some cases
exceeds – permit requirements for most gaseous and particulate emissions. However,
the sulfur recovery system continues to pose a significant environmental challenge to
Sasol. When the sulfur recovery units fail to function properly, hydrogen sulfide is
released into the atmosphere, and the associated rotten egg odor has been a nuisance
since the plants' construction. The concentrations of H2S that can be smelled pose no
health risk. Numerous solutions have been investigated in collaboration with
internationally renowned engineering firms, but no technology has yet been discovered
that provides a complete solution. This situation will remain difficult, especially given that
this unpleasant odor can be detected 160 kilometers away in Johannesburg under
certain climatic conditions.

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 Thorough management analyses and teamwork improved and streamlined operations.
As a result, productivity increased and costs were reduced: per ton of coal, production
of steam, heat, and gas increased dramatically (synthesis gas production has increased
by more than R124 million). By improving processes, R18 million in losses through
flares and other points have been reduced, as have significant energy savings (in the
form of electricity). Every year, more than R 17 million is saved in energy costs.

Due to the obvious ever-changing legal and policy landscape, particularly in South
Africa, Sasol is constantly looking for alternative solutions to some of its waste
management and disposal practices. The group also ensures that land and biodiversity
are managed responsibly in the future.

The general principles of the waste management hierarchy inform Sasol's waste
management approach. In South Africa, the group is collaborating with selected third-
party waste service providers to investigate innovative waste minimisation and reduction
opportunities. Sasol has prioritized investigations for its waste incinerators in Sasolburg
and Secunda, and has identified promising alternative waste management options that
are both environmentally responsible and cost effective, but require time to develop and
test.

In order to comply with landfill prohibitions that took effect in August 2017, Sasol's
operations in South Africa identified alternative destinations to successfully divert
identified high calorific waste streams from landfill, and in some cases incineration, to
higher-order waste-to-energy solutions. Many on-site waste disposal practices are being
phased out or improved, including the closure and rehabilitation of legacy waste sites in
both Sasolburg and Secunda.

A progressive waste minimisation strategy is also being implemented. Reduce, reuse,

and recycle options for dealing with liquid/moisture-containing waste streams are being
developed, which will significantly advance the waste roadmap into 2019. In Sasolburg,
a wax spent catalyst recycling project with a third-party service provider was
implemented, which recycles 50% of the volume of this specific waste generated.

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 To improve responsible waste handling and transportation in South Africa, Sasol has
developed Globally Harmonised System (GHS) compliant waste safety data sheets for
its process waste streams. The group also maintains positive interactions with
regulators through the Industry Waste Management Forum, which was established
between businesses and the National Department of Environmental Affairs (DEA). The
waste management license (WML) for the Secunda waste ash disposal facility was
successfully amended in 2018, ensuring license compliance.

To improve responsible waste handling and transportation in South Africa, Sasol has
developed Globally Harmonised System (GHS) compliant waste safety data sheets for
its process waste streams. The group also maintains positive interactions with
regulators through the Industry Waste Management Forum, which was established
between businesses and the National Department of Environmental Affairs (DEA). The
waste management license (WML) for the Secunda waste ash disposal facility was
successfully amended in 2018, ensuring license compliance.

Sasol's operations in South Africa are making progress with site assessments to
advance land risk management in areas where authority notifications have been
received in accordance with Part 8 of the National Environmental Management: Waste
Act. Significant progress has also been made in investigations into soil and groundwater
areas with elevated concentrations of certain parameters. After the investigations are
completed, a remediation order will be requested from the authorities, and the
necessary remedial actions will be carried out.

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