INTRODUCTIONOUR FUTURE SASOL STRATEGYRISKS AND OPPORTUNITIESGOVERNANCEDATA AND ASSURANCEADAPTING TO CLIMATE CHANGE (CONTINUED)Responding to climate change (continued)Our site-specific risk profilesDevelopment of Sasol’s adaptation materiality assessmentOur risk exposure resides at site level and hence the risk profiles for Secunda, Sasolburg, Mining,Mozambique and North American operations were reviewed.Adaptation materiality assessments were undertaken for the Secunda and Lake Charles Operations because oftheir strategic and financial importance to the Sasol Group. A materiality assessment matrix was developed toidentify risk levels, prioritise and manage the risks. Risks were rated on a three-tier scale of high, medium and low.The risk assessment process involved identifying and assessing the top risk events associated with thephysical risks of climate change against which we developed adaptation responses. Our detailed riskassessment methodology is on page 13. Our risk events were broadly grouped into two themes, a risein temperature and an increase in the intensity and frequency of extreme weather events. Interlinkagesbetween the risk themes were identified. Anticipated weather events include excess rainfall, thunderstorms,wind speeds, lightning and hurricanes. The risk profile process we followed included:The risk review confirmed the risk themes that were already captured and that our approach is appropriate. For allidentified adaptation risks, mitigation controls were in place. For example, under the theme of weather readiness,an early warning system, protocols for operating during extreme weather events, regional weather forecasts andwarnings and business continuity were common response themes. The table below summarises SecundaOperations broad focus areas and key controls.Summarised view of Sasol Energy: Secunda Operation’s adaptation risks and controls• The top risks were assessed for potential impacton the business and the adequacy of the responsemeasures;• The risk owner for each identified risk wasconfirmed; and• A residual risk rating was determined throughfacilitated and participatory risk workshops.2. GROUPING RISK EVENTSINTO THEMES OF:Risk consequence• Increasing temperature;Controls(in addition to the weather readiness procedure)• Excess rainfall;• Droughts; and• Wind and lightning.3. IDENTIFYING RESULTANT IMPACTS AND INTERLINKAGES BETWEEN RISK THEMES:Increase in temperatures leading to:• changes in process cooling envelopes and a risk of veld fires occurring;• an increase in the prevalence of extreme hot days (heat stress); and• changes in the risk profile of product storage practices.Excess rainfall leading to:• flooding and wastewater storage dams being operated above the freeboard resulting in a greaterrisk of uncontrolled overflow or release as an operations risk.Droughts leading to:Risk themeINCREASE INTEMPERATURECHRONIC AND ACUTE RISKS1. IDENTIFYING AND ASSESSING THE TOP RISK EVENTS:INCREASE INTEMPERATURE/CHANGING RAINFALLPATTERNSINCREASE IN THEFREQUENCY ANDSEVERITY OF EXTREMEWEATHER EVENTS• constraints on our water supply.SASOL CLIMATE CHANGE REPORT 2022 43Reduced cooling capacityduring periods of extremeheatOptimise efficiency of cooling systemsWorkers experiencing heatstressApply applicable protocols when working outsideduring extreme hot daysUncontrolled veld fires duringdry seasonsImplemented early warning and emergencyresponse preparedness for managinguncontrolled firesFlooding resulting in overflowof wastewater storage damsManaging water balances to preventuncontrolled releasesWind damage and workingin extreme windApply applicable protocols when working outsideduring extreme windLightning, damage and safetyconcernsEarly warning system in place and operationalFlooding of operational sitesIntroduced flood preventative control measures
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