Sasol : Climate Advocacy Policy Supplement

CONTENTS

CLIMATE POLICY ADVOCACY

Our suite of reports is informed by the following standards and initiatives.

We have sought alignment with key reporting expectations and compliance with all relevant legal requirements.

Directors' approval

OUR THREE-PILLAR EMISSION-

The Safety, Social and Ethics Committee (SSEC) of the Sasol Limited Board (the Board) is responsible for ensuring the integrity of our sustainability and climate change reporting. We confirm that the 2023 Climate Change Report and Climate Advocacy and Policy Supplement addresses all material matters relating to climate change from a double

REDUCTION FRAMEWORK

Annual Financial Statements

A complete analysis of the Group's financial results, with detailed financial statements including the Report of the Audit Committee.

materiality perspective and fairly represents the Group's climate change performance. The SSEC, authorised by the Board, approved this report on 30 August 2023 for publication.

Signed on behalf of the SSEC:

Muriel Dube // Chairperson of the SSEC

Our prioritised SDGs are indicated;

this report primarily focuses on SDG 13 and 17.

Reporting frequency

This supplement is focused on our climate policy advocacy activities in the financial year, 1 July 2022 to

30 June 2023. Unless otherwise stated, '2023' refers to the above-mentioned12-month period. This supplement should be read in conjunction with our suite of annual reports, including our 2023 Climate Change Report (CCR).

We incorporate the ten Principles of the United Nations (UN) Global Compact in our business activities to uphold our purpose and values.

Our 2023 suite of annual reports reflects the clear actions taken to deliver progress as well as plans and prospects ahead.

1. These reports are available on our website, www.sasol.com or on request from Investor Relations. Additional content related to stakeholders' burning issues and our responses can also be sourced on our website. Contact details are on page 25 of this report.

CARBON TAX ENGAGEMENTS IN SOUTH AFRICA:

In the second half of 2023, Sasol participated in National Treasury's Tax Law Amendment Bill consultations on the proposed carbon-tax rate increase. Sasol took part in two public multi-stakeholder consultations, post submission of our written comments in August 2022. At the workshops, we presented the impact the proposed carbon tax rate, without allowances, would have had on our business by 2030.

We, and others, reiterated our support for carbon pricing but indicated that the steep increase in the carbon tax rate, coupled with the state of the South African economy, warranted retention of the allowances. With retention, regulated entities would be able to positively respond to the mitigation signal created by the higher carbon tax rate but maintain productivity and continue contributing to job creation.

PRESIDENTIAL CLIMATE COMMISSION (PCC) COLLOQUIUMS:

Sasol participated in the electricity and JET-IPmulti-stakeholder and community colloquium. We supported the recommendations made by the PCC to the Presidency on:

• Short-terminterventions to alleviate pressure on the grid by accelerating renewable energy, unblocking hurdles for grid connections and accelerating energy efficiency by industry and other actors.
• Updating the Integrated Resource Plan to include renewables, battery storage and peaking support such as gas.
• Green hydrogen as a clean energy growth sector and the need for accelerating its development through industrial policy and incentives.

However, we were not aligned with the recommendation that green hydrogen's funding allocation in the JET-IP should be reduced because such projects are not yet economically viable. In the absence of incentives and industrial policy, the JET-IP remains one of the major funding avenues in the short to medium term.

CLIMATE CHANGE BILL IN SOUTH AFRICA:

Technical teams and climate change specialists attended parliamentary hearings on the Bill. We made an oral presentation to the Parliamentary Portfolio Committee on Forestry, Fisheries and the Environment (PCFFE) in September 2022. Sasol also attended public hearings held by the PCFFE in the regions where we operate, and observed proceedings.

Carbon budgets: We undertook engagements during the course of the year with the DFFE and its consultants on the allocation of Sasol's next voluntary carbon budget and on methodologies for setting mandatory carbon budgets.

BROAD CLIMATE CHANGE POLICY IN SOUTH AFRICA:

• We attended Business Unity South Africa (BUSA)-hosted meetings with the Department of Forestry, Fisheries and the Environment (DFFE) on mandatory greenhouse gas (GHG) reporting and climate policy. DFFE provided feedback on the latest updates on GHG reporting and climate policy studies underway.
• We participated at the DFFE's COP27 negotiating-position workshop and supported the positions taken by the South African government soliciting funding to accelerate decarbonisation and a just transition. We also backed the country's call for developed countries to display greater ambition than was demonstrated in 2022 as a result of the Russia-Ukraine war. We proposed that DFFE request the European Union to make non-financial incentives available to encourage greater access to its market by South African entities.
• We participated as an observer at a parliamentary session in which the DFFE Minister provided feedback on COP27 and progress on the Climate Change Bill. Further to this, we participated in another session at which the PCC presented on the JET-IP.

JUST ENERGY TRANSITION INVESTMENT PLAN FOR SOUTH AFRICA (JET-IP):

In February 2023, Sasol submitted comments on the JET-IP, which sets out the nature and scale of investments required to support South Africa's decarbonisation commitments and the need for a fair and equitable energy transition. Thereafter, we participated in business consultations held by the PCC on behalf of the Presidency. At these sessions and in our submission, we welcomed the JET-IP and its inclusion of the electricity and green hydrogen sectors as prioritised funding areas. We also recommended that a higher allocation be made for skills development and localisation in the R1,48 trillion assessed in the JET-IP.

EUROPEAN UNION DELEGATED ACTS:

Additional formal submissions were made to the European Commission in July 2022. These were made to support our submissions in June 2022. We submitted our view that for co-processing sustainable and fossil-fuel feedstocks from existing facilities in developing economies, a flexible allocation approach will need to be applied for a just transition. For more information on our position, see page 43 in our 2023 CCR .

MEMBERSHIPS:

• Roundtable on Sustainable Biomaterials (RSB): Sasol joined the RSB policy advocacy workstreams on sustainable aviation fuel (SAF) and Power-to-X (PtX). In 2023, we sponsored and presented at the Roundtable's annual conference on challenges for SAF development and deployment.
• Global Alliance Powerfuels (GAP): We participated in PtX working groups and commented on the Alliance's policy positions relating to social sustainability criteria for PtX development.

• Hydrogen Council: No policy engagements have taken place thus far.

• Energy Council of South Africa: No policy engagements have taken place thus far.

• NBI: We participated in the Climate Pathways Study through various steering and technical committees that are proposing pathways for achieving net zero in support of the Paris Agreement.

• EP100: Sasol participates in the initiative which encourages greater energy efficiency uptake within business.

Our climate advocacy declaration

Climate change management is material to our sustainability and is managed as a Group Top Risk with ultimate accountability residing at the Sasol Limited Board through its Safety, Social and Ethics Committee.

This year, again we underscored our commitment to the Paris Agreement and accountable, principles-based advocacy through a formalised Climate Policy Advocacy Declaration.

This declaration explains how we engage with trade and industry associations and stakeholders, including policymakers, to promote balanced and effective climate policy.

We also detail the principles that guide our climate-change advocacy, including our commitment to assess this, both directly and indirectly through industry associations.

The importance we attach to transparency and meeting the legitimate expectations of our stakeholders is embodied in the declaration. This company-wide declaration is applicable to all Sasol employees who engage on our behalf.

1. Refers to executive functionaries with powers to develop and implement policy and associated regulations
2. Blue and green hydrogen
3. Taskforce for Climate Related for Financial Disclosure
4. Global Reporting Initiative
5. Sustainable Development Goals
6. Energy Productivity 100
7. Presidential Climate Commission
8. National Business Initiative
9. Sasol joins industry associations that represent a broad spectrum of views on

policy issues that extend beyond climate change and are important to our business

and operational issues. We do not always agree with the opinions of these groups, however, Sasol is committed to collaboration and working with these groups to address issues and reach the best outcomes. Our participation in industry associations is subject to Board and executive management oversight. We reserve the right to assess and determine whether to remain a member of

any organisation which publishes differing views or opinions.

Sasol is committed to climate action and acknowledges the need to reduce GHG emissions in support of the Paris Agreement and its temperature goals to limit global warming to well below 2°C and pursue efforts to limit temperature increase to 1,5°C. We responded positively in 2021 to the calls for a higher reduction ambition by increasing our 2030 reduction target and committing to a 2050

net zero ambition.

Sasol's decarbonisation approach for a just transition is premised on reducing our climate change risks whilst maximising opportunities for shared value creation through our just transition roadmap. Climate change management is embedded in our portfolio analysis and decision-making processes as a mainstream activity. Our net zero ambition with associated short- and medium-term targets is underpinned by Sasol's commitment to progressively shift our portfolio towards a low-carbon future. Our dedicated efforts are therefore focused on leveraging our competitively advantaged FT technology to develop and produce sustainable fuels and chemicals using green hydrogen and sustainable sources of carbon.

We accordingly advocate for policymakers1 to deliver robust climate action through coherent and integrated climate policy and a related regulatory framework to enable a just and equitable transition that is appropriately paced and timed for the context in which we operate. We look to governments to set Paris-alignedNational Determined Contributions (NDCs) with our GHG reduction targets contributing to their achievement, as well as creating an enabling environment for climate action to be taken by industry. Creation of an enabling environment includes development of an integrated mitigation system supported by both positive and negative incentives, such as subsidies and carbon pricing tools, respectively.

Sasol undertakes to participate in policymaking processes transparently and constructively, as provided for in the various jurisdictions in which we operate. We will do so through direct engagements with policymakers in the process and also indirectly through industry associations. We have adopted guiding principles to enable responsible and effective advocacy that is aligned with our strategic imperatives and embodies our position on key climate change matters. These principles include:

Acknowledgement and support for climate science: We recognise the scientific basisunderpinning anthropogenic climate change and acknowledge the role of industry in mitigating emissions.

Support for the Paris Agreement goals: We recognise that increased global effort is required to support the aims of the Paris Agreement and meet its temperature goals, taking national circumstances into account.

Support for carbon pricing that provides greater incentives for innovation and low-carbon choices: We support carbon pricing that enables an effective and efficient transition to a low-carboneconomy.

Support for the development of low- and lower-carbon energy solutions in the form of renewable energy; hydrogen2; carbon capture, utilisation and storage; natural gas (as a transition fuel) and energy and process efficiencies: In our commitment to reduce our reliance on coal, we view gas (as a transition fuel) and renewable energy as springboards into green hydrogen, to decarbonise

our operations. Energy- and process-efficient technologies are being pursued in the short term as they have not been fully maximised.

Support for transparency and disclosure: We support and advocate for disclosure aligned with best-practicestandards, such as the TCFD3, GRI4, SDGs5 and associated reporting criteria.

In its ongoing pursuit of responsible and effective climate policy advocacy, Sasol remains committed to:

• Engaging policymakers and collaborating with industry associations to advocate our position on matters that are critical to managing climate change across our business operations;
• Engaging in fact-based dialogues, sharing our perspectives, listening to others, respecting differences and working collaboratively to enable a just and equitable transition that is appropriately paced and timed for the context within which we operate;
• Participating, where relevant and required, in coalitions and industry associations that have specific purposes that support the Paris Agreement, such as EP1006, the PCC7 and the NBI8;
• Advocating and engaging constructively in public policy processes and discussions, with a view to respectfully acknowledging contrary views where raised;
• Undertaking periodic industry association policy reviews against our guiding principles for responsible climate advocacy and transparently disclosing the results of these reviews in our reporting;
• Engaging with relevant industry associations should misalignment (full or partial) with our guiding principles be found, and should it be deemed necessary, exiting industry associations, engaging to influence their views or disassociating ourselves from specific misaligned policy positions9;
• Reviewing relevant independent third-party assessments of our industry associations; and
• Assessing and incorporating, where relevant, global best practices in our climate-advocacy approach and disclosures.