Sasol Climate Change Report 2022 - Book - Page 14
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
RISK MANAGEMENT
The process we follow
Group strategy and scenarios,
business imperatives and objectives
Sasol’s Enterprise Risk Management (ERM)
process assists us to identify, understand and
respond to the risks associated with our business.
Addressing climate change is a strategic
imperative, Group top risk and a material matter.
Functional top risks
through engagements with Corporate Centre
Changes in
the internal
and external
business
environment
Our top risks are continuously managed, monitored
and reviewed:
• in alignment with the Group’s business imperatives;
Group themes and top risks
Top-down and bottom-up process
to develop Group top risks
• considering our materiality lens, material matters,
top priorities and sustainability focus areas, including
the six capitals ( IR refer to pages 23 – 24); and
Business top risks
through engagements with business stakeholders
• our ambitions for People, Profit and Planet.
Emerging risks on watch list
through engagements with internal
stakeholders and sourcing of risk intelligence
from external sources
The review of our top risks (as depicted below)
is further tested against major internal and external
developments reported through our emerging risks
(watch list) process, plausible business scenarios
and appropriate risk flags. Business scenarios are
customised and stress-tested against progressive
international, regional and national scenario
parameters, as well as key driving forces.
Monitoring of Group top risks
Enabled through risk pressure flags aligned
with business imperatives or Key Performance Indicators
(KPIs), initiatives, strategic scenarios and emerging risks
PLAN
DO
1
2
Identify and understand the risk event
Manage and monitor
Climate-related risks relevant to our business
(including transitional1 and physical acute and
chronic risk) and specific to our operational sites
are identified. Risk events are analysed, assessed
based on their severity and prioritised with
the external and internal operating context
also considered.
Mapping of existing business processes,
procedures and standards as key responses
to prioritised risks is undertaken.
The appropriateness and efficacy of the
key responses are regularly reviewed.
Sasol’s risk
management
process is iterative
and applied in a
dynamic operating
context
IMPROVE
4
Analyse and improve
Maturity level is assessed, as well as identification
of gaps and opportunities for improvement.
Action plans are developed and learnings are shared.
REVIEW
3
Governance and assurance
Climate change risks are tracked, reviewed
and assured at GEC and Board level
( IR refer to pages 31 – 35).
1. Arise as a result of global and governmental shifts towards a low-carbon future.
SASOL CLIMATE CHANGE REPORT 2022 13
Group top risk
one-pagers
KPI dashboards
per Group
top risk
Quarterly risk
reports to Board
and Board
Committees
Assurance in
respect of the
Group top risks
provided based on
the Combined
Assurance Model
The Board provides governance oversight over the
identified top risks, including climate change. The Board
receives regular assurance on the risks, based on the
combined assurance model and plays a pivotal role
in enabling appropriate responses to the top risks.
Our ERM approach fully integrates with the top risk review
process and business and operational risk level assessments,
where climate change responses and adaptation measures
are implemented.
Climate change risks form part of long-term business viability
imperatives, which relate to sustainable execution of our
strategy, opportunity management and ensuring a balanced
approach between growth, investment and delivering shareholder
value. In executing our ERM process, we consistently follow a
well-embedded Plan, Do, Review and Improve (PDRI) model as
indicated alongside. We identify, understand, execute, monitor,
govern, assure and report on our top risks and respond to
significant risks being faced in the short, medium and long term.
