SasolAnnual review and summarized financial information 2006
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Summary /  Downloads / Quick & useful links About this report / Company at a glance / Sasol's integrated business model  / CE’s statement / Our group of companies / Global operations / Our sustainability performance Material SH&E–related risks at Sasol / addressing our previously identified challenges / addressing material sustainability challenges / our management framework for sustainable development / Sasol's sustainable development milestone Engaging our stakeholders  / Report on the stakeholder process our economic contribution / our social performance / our economic contribution / looking ahead KPMG's independent assurance report / Our performance data / GRI index for Sasol's 2006 sustainable development report  / UN Global Compact − communication on progress / Acronyms  
 
 
 
 •  Our economic contribution
 •  Our social performance
Our environmental performance
 •  Looking ahead
 
Our environmental performance
 
 
Reducing greenhouse gas emissions
Benchmarking Sasol’s greenhouse gas emissions
Benchmarking our climate change governance practices
The CERES climate change governance checklist – Sasol’s self-assessment
Targeting other atmospheric pollutants
Promoting energy efficiency
Working to minimise waste
Water use and liquid effluent
Comprehensive air pollution review at Sasolburg
and Secunda 
 
Plant security
Meeting cleaner fuel specifications
Investing in land remediation
Significant water savings achieved as part of clean
fuels expansion
Managing land use and biodiversity
Furthering product stewardship
Managing environmental impacts in our new
global activities
Investing in improved environmental performance in
our South African operations
 
Working to minimise waste
 
Managing the risks associated with waste remains a priority at Sasol. Cleaner production and pollution prevention principles have been integrated within our new Sasol group SH&E minimum requirements with the aim of reducing future risks, while a comprehensive programme is in place to manage historical legacies in accordance with relevant legal requirements. The underlying goal of the minimum requirements is to adopt a systematic and hierarchical approach to integrated waste management that results in zero hazardous waste.

In 2006, Sasol operations generated 270 kt of hazardous waste, representing an 8% decrease on the previous year. Over the same period, we generated 1 126 kt of non-hazardous waste, up from 959 kt in 2005. A large portion of the hazardous waste generated this year was as a result of the once-off removal of hydrocarbon sludge from storage dams at our Secunda operations. A major waste minimisation programme is being undertaken along the oily water and storm-water sewer systems at Sasol Synfuels. Ongoing focus areas include the abatement of associated VOC emissions and the disposal of hydrocarbon sludge.

At Sasolburg, the full benefits of converting to natural gas feedstock are being realised, with a significant decrease in hazardous waste associated with the elimination of gasification sludge. At Sasol Wax, a project was initiated to use spent catalyst in the manufacture of bricks, resulting in the elimination of 300 tonnes of waste a month.

The recently commissioned waste-recycling facility at Secunda is fully operational and a waste-water treatment plant linked to this facility capable of treating high organic strength effluents has been commissioned. It is anticipated that the full benefits of these facilities for current on- and off-site waste treatment and disposal activities will soon be visible. 
 
Hazardous and non-hazardous waste (thousand kilotonne)
 
Hazardous and non-hazardous waste
 
Purple block Hazardous waste Green block Non-hazardous waste Orange line t product per t waste
 
Water use and liquid effluent
 
Water is a concern in many of our operations, particularly in the Middle East and South Africa. To ensure effective effluent and water demand management at our operations, minimum requirements for water and effluent handling are being developed based on World Bank guidelines. Although the group is implementing several water-demand and effluent management projects, most of these are at an early stage. So far, there has been little evident reduction in the total volume of water used, or effluent generated, per tonne of product.

During the 2006 reporting period, our total water usage per tonne of product decreased by 2% throughout the group compared with the levels of the previous year. The more water intense processes still make up a large percentage of total production.

During the year, our Brunsbüttel operation in Germany was awarded first prize by the German Chemical Association for its waste-water reduction project. This project resulted in reduced consumption of potable water of 200 000 m3 a year, as well as a 50% reduction in the waste-water load.

Various initiatives were undertaken in South Africa with the aim of ensuring improved water use efficiency and ensuring greater security of supply. As part of the major expansions at the Sasol Synfuels operation, undertaken primarily to meet new fuel specifications, a capital investment of about R500 million was made in a series of water-treatment processes to recover an existing effluent. The initiative resulted in no additional water demand required as part of the expansion, as well as in a reduction of effluent discharged to the environment. In another initiative, construction commenced for a R3,3 billion pipeline that will pipe water from the upper Vaal River system to ensure a sustainable supply of water, up to 2030, to both Sasol and Eskom as they increase capacity to meet rising demand for liquid fuels and electricity, respectively.

The only significant environmental event took place in December 2005, when failure of an emergency pipeline at Secunda during abnormally high rainfall resulted in an effluent discharge that killed fish in the Klipspruit River. We immediately undertook measures to inform regulatory authorities and the community and to rehabilitate the affected area.

Key challenges ahead include implementing our commitment to zero effluent, ensuring effective water supply over the longer term in our South African operations and reducing salt discharge. 
 
Water use and effluent (million cubic metres)
 
Water use and effluent
 
Green block Water Purple block Effluent
 
Comprehensive air pollution review at Sasolburg and Secunda 
 
To assist us to prepare for the changing regulatory environment in South Africa, in 2005 we commissioned two internationally recognised air quality management consultancies, International Sustainable Systems Research Centre (ISSRC) and Performance Management Inc (PMI), to jointly conduct a comprehensive assessment of the air quality issues facings our operations at Sasolburg and Secunda. During August 2005, a six-member ISSRC/PMI team visited the Sasol facilities at Sasolburg and Secunda where they: 
reviewed the current operations;
interviewed operational and corporate personnel;
interviewed national, provincial and municipal government and regulatory officials;
met activists from NGOs; and
met South African industrial representatives.
 
On the basis of a comparison with international best-in-class activities, the team made recommendations. Process recommendations included detailed process changes and identified emissions limits based on best-in-class reasonably available control technology (RACT) and best available technology (BAT) options.

Suggested environmental management recommendations included: 
developing a complete emissions inventory for each plant in a dynamic format that supports easy updating, analysis and reporting, and that is accurate, comprehensive and automated; 
developing facility-wide emission reduction roadmaps aimed at ensuring RACT/BAT compliance; 
promoting greater transparency in ambient air quality data and emissions data; 
setting specific environmental performance indicators ;
changing the corporate SH&E function from a largely advisory role to a standard-setting and auditing function; 
building on the behaviour-based safety system to include and reinforce improved environmental behaviour; and 
identifying and implementing measures to develop, attract and retain personnel with suitable environmental and air quality management skills. 
 
These recommendations will significantly lower emissions, improve national air quality and produce more efficient operations at Sasol and at other industries that may choose to follow Sasol's example.

A task team has been appointed to facilitate the implementation of these recommendations. 
 
Meeting cleaner fuel specifications
 
All our liquid fuels delivered to the South African marketplace since 1 January 2006 have met the new specifications for cleaner fuels. Besides terminating the production and marketing of leaded petrol and introducing a lead-replacement petrol for older vehicles, Sasol and the rest of the South African fuel industry had to introduce a diesel with a substantially lower sulphur content − down from 3 000 parts per million (ppm) to 500 ppm. Sasol's diesel already complies with the most stringent international sulphur specifications. Both our Secunda operation and the Natref oil refinery at Sasolburg, owned by Sasol and Total South Africa, successfully completed their clean-fuels projects on time. Sasol Oil, Total South Africa and Natref are working with Sasol Technology on a new investment programme aimed at meeting the more stringent petrol and diesel specifications that are likely to become mandatory from 2008 onwards. 
 
Investing in land remediation
 
Because of our historical chemicals and fuels processes, we have several areas where soil or groundwater has been polluted in the past. Over the year, good progress has been made in the remediation of contaminated land throughout the group. At 30 June 2006, we had a provision at Sasol Synfuels of R1,6 billion for site remediation. At Sasol Mining there is provision for R430 million, of which R240 million was invested in a trust fund for mine closure and rehabilitation. This figure is reviewed annually to ensure adequate provision is made at all times, taking into account all relevant circumstances. In some areas, remediation projects were successfully complete, while in others, detailed surface and groundwater characterisation projects have been implemented or are ongoing.

We completed comprehensive characterisation studies at our Phalaborwa and Sasolburg operations where identified remediation options are being implemented. Detailed assessments of groundwater contamination at our Sasolburg and Secunda facilities are continuing and various opportunities for effective remediation are being assessed. As part of our expansion into the fuel retail market, risk assessments have been undertaken prior to any retail fuel station being acquired. Where deemed necessary, these have been accompanied by more detailed site investigations.

Remedial projects are ongoing in our US operations at Lake Charles in Louisiana and at Baltimore in Maryland, as well as the nonoperating sites of Aberdeen and Mansfield. These remedial activities are attributable to operations conducted before Sasol acquired the sites and are covered by relevant environmental indemnities. In Italy, remedial activities, also mostly attributable to operations conducted prior to Sasol's acquisition of these businesses, are being undertaken on the Augusta, Crotone, Porto Torres, Paderno and Sarroch sites. 
 
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