Sasol Integrated Report 2022 - Book - Page 33
INTRODUCTION | ABOUT SASOL
CREATING VALUE
STRATEGIC OVERVIEW
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
RISK MANAGEMENT (CONTINUED)
Managing our Group top risks (continued)
Our Group top risk themes
Our Group top risk themes, in the table below, include the identified Group top risks with their associated
key business drivers and key responses. The Group top risk themes have also been linked with key business
imperatives supporting our sustainability intent and triple-bottom-line outcomes. These are connected to
our material matters and how we use the six capitals to preserve and create shared value.
In our assessment of the existing Sasol Group Top Risk (GTR) profile in the context of our reset corporate
strategy, a new Group top risk named: “Inability to effectively transition to Future Sasol in time” under the
Group Top Risk Theme “Sustainability and Transition” was identified. This risk considers how Sasol is
positioned in charting the course towards delivering on its future strategy plans, while focusing on
recovering our safety and operational discipline, delivering on the Sasol 2.0 baseline in a prioritised and
sequenced manner as well as ensuring that our ESG roadmaps are progressed. The new risk is also fully
interconnected with the other existing Sasol Group top risks, particularly in aspects such as air quality issues
covered under the climate change risk, capital availability, carbon tax, affordable gas feedstock, stakeholder
commitments and legal and regulatory issues.
KEY BUSINESS IMPERATIVE
Business sustainability and earnings growth
Group top risk theme
Group top risks
Key responses
Group top risk theme
Group top risks
Key responses
FINANCIAL
Includes risks associated
with macroeconomic factors
(key business drivers):
– volatile commodity prices and
exchange rates
– short-term cost increases
– credit rating downgrades
– liquidity
– solvency
– gearing
– going concern
– debt covenant breaches
– tax liability and exposure
(includes carbon and windfall taxes)
• Group financial market risk
management policy, processes
and frameworks (includes hedging)
LEGAL, REGULATORY
AND GOVERNANCE
Includes risks associated with:
– legal compliance in multiple
jurisdictions
– adherence to corporate governance
requirements
– changing policy and regulatory
requirements in multiple
jurisdictions; and
– challenges with regards to delivery
on environmental commitments
• Multi-disciplinary compliance
programmes
Includes risks associated with:
– process safety
– occupational safety
– occupational health and product
safety incidents
– utility interruption
(electricity and water)
– failure of critical assets
– extreme weather events; and
– feedstock and supply chain
disruptions (inbound
and outbound logistics)
• Zero Harm approach
MM
Transforming
for resilience
SAFETY AND
OPERATIONAL
MM
Safety of
our people
• ESG-linked financing
framework developed
MM
• Sales and operations planning processes
• Group assumptions, budgeting,
forecasting and scenario analysis
processes
Environmental
stewardship
• Sasol 2.0 full potential initiatives
MM
• Global tax strategy and management
• Management of relationships
with lenders, credit rating agencies
and tax authorities
• SHE risk management and incident
management
• One Sasol SHE Excellence Approach:
each business to evolve its own SHE
governance
• Sasol Operations Management System
including asset management
• Annual compliance certification
• Annual compliance and governance
training and awareness
• Due diligence processes and
screening tools
• Governance policy, standards and
procedures, including disclosure controls
• Adherence to listing requirements
• Monitor and inform developments
in policy, legislative and regulatory
landscape for current and future business
Strengthening
relationships
with stakeholders
• Proactive stakeholder engagement
• Deliver on committed environmental
roadmaps and offset programmes
• HSI management and fatality elimination
programme
• Process safety, occupational safety,
occupational health, environmental
and product stewardship management
systems and security management
• Sasol’s Code of Conduct
INFORMATION
MANAGEMENT
MM
Includes risks associated with:
– information and cyber security
threats including business
operations outages as well as a
force majeure
• Information security controls, maturity
roadmap, training and awareness
• Monitor global cyber landscape to
identify, detect, protect and respond
to and recover from cyber breaches
• Global information security management
process
Transforming
for resilience
• Critical assets, extreme weather, natural
disaster, feedstock, supply chain and
utility interruption set of key responses
and processes
• Execution and monitoring of critical
Operations Technology (OT) security
controls and remediation of weaknesses
identified
• Simulation exercises that are aligned
with global threat landscape
• Insurance as a risk transfer mechanism
• Cyber security due diligence to assess
Sasol cyber security posture/readiness
• Group crisis management, emergency
response and contingency planning
SASOL INTEGRATED REPORT 2022
• Information technology (IT) security
continuity plans
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