Sasol Integrated Report 2022 - Book - Page 36
INTRODUCTION | ABOUT SASOL
CREATING VALUE
STRATEGIC OVERVIEW
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
RISK MANAGEMENT (CONTINUED)
Managing our Group top risks (continued)
Tracking and monitoring emerging risks on our watch list
Our Group top risk themes (continued)
These refer mainly to unknown aspects around these risks which are identified
as part of key developments emerging in our business environment.
KEY BUSINESS IMPERATIVE
Stakeholder impact
Group top risk theme
STAKEHOLDER
MM
Safety of our people
New Group top risk
Includes risks associated with:
– being a credible stakeholder partner
with a good reputation
– managing stakeholder relations
across a broad spectrum of key
stakeholders
– upholding human rights
– delivering on commitments; and
– meeting transformation and local
content objectives
Key responses
• Regular engagement with key
stakeholders
• Ongoing multi-stakeholder
engagements to monitor developments
and provide supporting intelligence to
business (eg plausible future scenarios
developed by Sasol’s Strategic Scenario
Modelling team)
• Potential unrest in South Africa
(exacerbated by socio-economic
pressures) which may potentially
cause major business interruption
• Social investment programmes
• Customer and supplier relationship
management
• Enterprise and supplier development and
preferential procurement
• E
conomic and policy/regulatory
uncertainty, as well as changing
market dynamics with increasing
costs of doing business in
South Africa
• Diversity, employment equity, skills
development and social development
plans
• Ongoing insurgence activity in
Mozambique which may potentially
cause major business interruption
• B-BBEE ownership targets and meeting
industry-specific charters
COVID-19 is considered to be a systemic risk and impacts all key business imperatives
Group top risk theme
Group top risks
Key responses
COVID-19
Include risks associated with:
– the impact of the COVID-19
pandemic on people, business,
operations and markets including
extended pandemic impacts on
ability to operate and responding
to lockdown market impacts
• People-centric responses including social
distancing; health and hygiene practices;
personal protective equipment; testing
and screening
MM
Business response
• The Russia/Ukraine conflict
escalating with global socioeconomic fallout and high price
and cost impact
• Reputation management programme
• Human Rights Policy and framework
directives covering aspects relating to our
employees, supply chain, communities,
mergers and acquisitions (including joint
ventures) and environmental footprint
Safety of our people
Potential areas impacted
GEOPOLITICAL
THREATS
• Tracking delivery on stakeholder
commitments
• Local content strategies and plans in all
our regions
MM
Theme
• Compliance programmes
• Scenario analysis
GLOBAL SECURITY
INCIDENTS
(eg cyber threats)
• Dedicated COVID-19 response task team
and a vaccination task team
• Our cyber security structures providing
integrated Information Technology (IT)/
Operations Technology (OT) end-to-end
monitoring support
• Cyber security due diligence to assess
Sasol cyber security posture/readiness
ENERGY TRANSITION
ACCELERATION
• Increased urgency to transition
the energy landscape to deliver
on the Net Zero ambition with
failure thereof potentially eroding
shareholder value and delivery on
ESG aspirations
• Monitoring and responding to the
changes in the energy landscape
which include applicable regulatory
and policy frameworks
SAFETY AND
OPERATIONAL
DISRUPTIONS
(including supply
chain and utilities)
• Constrained global supply chains –
inbound and outbound key concerns
• Ongoing multi-stakeholder engagements
to monitor developments and provide
supporting intelligence to business
STAKEHOLDER
ACTIVISM
(eg shareholders,
activists and NGOs)
• Increasing pressure from NGOs,
activists and shareholders to
consider their resolutions on
Board composition, accountability
in delivering ESG requirements
and financial performance
• Business continuity and risk assessments
• Sasol for Good initiatives
• T
he rise in cyber attacks posing
cyber security threats and
increased costs
Strengthening
relationships
with stakeholders
SASOL INTEGRATED REPORT 2022
35
• E
lectricity and water supply
constraints exacerbated by ongoing
power outages and loadshedding
in South Africa
• Proactive and constructive engagement
• Various initiatives to address
stakeholders’ concerns and monitoring
of ongoing developments
