Sasol Integrated Report 2022 - Book - Page 34
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 (continued)
KEY BUSINESS IMPERATIVE
Long-term business viability
Group top risk theme
Group top risks
Key responses
Group top risk theme
Group top risks
Key responses
CAPITAL
INVESTMENT
Includes risks associated with:
– project performance (cost, schedule
and quality) driven by both internal
delivery risks and risks arising from
unexpected changes in the external
environment
– capital project portfolio; capital
allocation; and
– capital availability (internal/external
funding) and capital structuring
• Capital Project Excellence programme
MARKET
• Milestone driven de-risking and
assurance of opportunities through
the decision enablement stage gate
methodology
MM
Includes risks associated with:
– our ability to remain competitive
– changing global marketplace
dynamics (COVID-19 and the Russia/
Ukraine conflict with ensuing global
inflation) impacting supply and
demand for products (including
short- to medium-term demand
collapses and longer-term market
structural changes) and continued
supply chain challenges
– technologies becoming
uncompetitive; and
– access to feedstocks and markets
• Geographically diversified asset base,
with a focus on growth in high-value
and differentiated markets
MM
Transforming
for resilience
• Capital challenge process to ensure
parity in informing the Rolling
Capital Plan
• Projects, engineering and business
standards
Transforming
for resilience
• Update and track delivery on key
investment parameters
• Regular status review of capital projects
• Continuous learning practices
• Disciplined Capital Allocation Framework
and investment guidelines
• Sasol Energy, Sasol Mining, Sasol
Chemicals and Sasol ecoFT responsible
for keeping the capital project
funnel full with quality opportunities
and improving optionality to grow
portfolios
MM
Transforming
for resilience
Includes risks associated with:
– operating in a range of countries
and regions, with varying
geopolitical, socio-economic
and developmental landscapes,
as well as war and civil unrest
• Monitoring of developments in major
markets including new competitor
entrants, increased global capacity builds,
consumer behaviour, supply and demand
patterns
• Innovation and technological advances
• Managing research and development
portfolio and incrementally improving
existing technology offerings
• Mozambique upstream gas project and
the alternative gas supply programme
• Long-term ethane supply contracts
• Developing stakeholder and partnering
approach
• Brand management to explore business
opportunities
• Monitor socio-economic developments
and geopolitical events in host countries
• Regular engagements with host
governments, local authorities,
communities, non-governmental
organisations (NGOs), customers and
suppliers
• Group crisis management, emergency
response and contingency planning
• Country risk analysis
• Scenario risk analysis of impact of the
Russia/Ukraine conflict on Sasol supply
and value chain
SASOL INTEGRATED REPORT 2022
• Customer service, sales and marketing
excellence programmes
• Southern Africa Upstream Gas Strategy
and the Alternative Gas and Energy
Supply programme (includes LNG
and green hydrogen)
• Asset review and classification
processes
GEOPOLITICAL
• Competitor cost curve analysis and peer
group benchmarking
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