Sasol Climate Change Report 2022 - Book - Page 45
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
ADAPTING TO CLIMATE CHANGE (CONTINUED)
Responding to climate change (continued)
Summarised view of Sasol Chemicals: Lake Charles Operation adaptation risks and controls
Risk theme
(acute and chronic)
Risk consequence
Controls
(in addition to the weather readiness procedure)
Reduced cooling capacity
during periods of extreme
heat resulting in
production interruptions/
lost production (restricted
throughput)
• Implemented new project designs to
account for operating within a more
extreme (hotter) temperature envelope
Production interruptions/
lost production due to
forced shutdowns or
equipment damage
• Apply inclement weather, winterisation,
and freeze protection procedures
TORNADOES AND
HIGH WIND
(Existing but infrequent)
Major equipment
damage and subsequent
production interruption
• Implemented regional weather forecasts
and warning systems
HIGH RAINFALL
(Existing and certain)
Localised flooding
resulting in disruptions
in inbound and outbound
road and rail logistics,
as well as production
interruptions
• Proactively identified at-risk facilities/units/
equipment/infrastructure and identified
and developed appropriate action plans to
mitigate risk (flash-flood study)
Disruption of work
activities (mainly
construction and
maintenance)
• Implemented regional weather forecasts
and warning systems
Major equipment and
infrastructure damage
and subsequent
production interruption
• Implemented process equipment to be
wind-rated for 110 miles/hour
CHRONIC RISKS
HEAT WAVES
(Existing and certain)
FREEZE EVENTS
(Existing but infrequent)
ACUTE RISKS
SEVERE LIGHTNING
(Existing and certain)
INCREASE IN TROPICAL
WEATHER EVENTS
(HURRICANES)
(Existing and certain)
• Maintenance of cooling systems to perform
under optimal conditions
• Assessed and upgraded freeze protection
equipment on existing processes, where
necessary
• Apply existing facility-specific shelter in
place procedures
• Implemented Business Continuity Plans
• Apply existing facility-specific lightning
procedures
• Confirmed wind rating of all buildings
• Updated Engineering Design Standards
to reflect the most current wind rating
standards
CONTINUOUS IMPROVEMENT IN OUR
ADAPTATION RESPONSE
The site-specific adaptation risk profile review
confirmed that there are no new unknown risks
for our at-risk sites. While these operations have a
good understanding of the potential physical climate
change risk events, more work is being undertaken
to align the potential business impact with the risk
events. This risk review process will be used to
inform and prioritise the undertaking of detailed
risk assessments in high priority identified areas,
where such detail is warranted.
There is no doubt that extreme weather events are
having an impact on our operations and supply
chains. Response measures are in place and range
from improved operational controls, changing design
parameters to adopting new technologies and ways
of working. Adaptation includes both responding to
slow-onset and sudden/rapid climate-related events
in a prepared and proactive, risk informed way.
URBANISATION AND CHANGING FACTORS
CHANGING SEASONAL
RAINFALL PATTERNS
(Future condition)
Shortage of raw
water supply
• Working with local authorities, industry
associations and Sabine River Authority to
develop additional water sources should it
be needed
We recognise that climate change is not the only
contributor to extreme weather events. Urbanisation
and changing land-use are two examples of factors
which can exacerbate the impacts of weather events
which fall within historical extremes.
INCREASE IN DISEASES
ASSOCIATED WITH
TROPICAL CLIMATES
(Malaria and Dengue
fever – developing risk)
Increased employee
absenteeism
• Expanding medical programmes and
awareness campaigns
CLIMATE ADAPTATION THROUGH AN
INSURANCE LENS
Sasol has a comprehensive programme for protecting
the business against significant material losses.
Insurance cover has historically focused on providing
protection against fires and explosions. However, it is
SASOL CLIMATE CHANGE REPORT 2022 44
noticeable that protection against extreme weather
events is growing in prominence. We have also
implemented insurance cover for our at-risk
operations from extreme weather events. Recently,
we claimed for the disruption caused by the KwaZulu
Natal flood event for both our crude oil transfer
operations and product shipping from the port
of Durban.
Notwithstanding the severity of these weatherrelated events, we continue to receive a positive
and above average ratings from our insurers on the
management of our insurable risk profile. These
positive ratings take into account our response to
extreme weather risks. Despite the prevalence of
extreme weather events, other facilities like
Mozambique, Secunda and Sasolburg, have not had
severe damage and loss to trigger insurance claims.
This confirms the efficacy of the design and
operating practices implemented at these facilities
and may well be reflective of the already built in
resilience the business has undertaken to manage
this risk.
Our insurance providers undertook a review of
our management approach to addressing the risk
of tailings dams failures. Tailings dams continue
to receive scrutiny due to the risk of failure often
exacerbated during extreme weather events.
This review confirmed that we remain an insurable
company. Regardless, we continue to rigorously
review and refine our design and operating practices
to deal with inevitable global climate change and
projected changes to weather patterns for
impacted operations.
