Sasol Integrated Report 2023 - Book - Page 36
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
OUR RISK MANAGEMENT CONTINUED
Emerging risks
GEOPOLITICAL THREATS
Potential areas impacted
TRACKING AND MONITORING EMERGING
RISKS ON OUR WATCH LIST
• The Russia/Ukraine war conflict escalating with global socio-economic fallout and high price and cost impact
• Potential unrest in South Africa (exacerbated by socio-economic pressures) which may potentially cause major business interruption
• Economic and policy/regulatory uncertainty, as well as changing market dynamics with increasing costs of doing business in South Africa
(eg the African Growth Opportunity Act)
These refer mainly to unknown aspects around these
risks which are identified as part of key developments
emerging in our business environment.
RESPONSE:
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)
GLOBAL SECURITY INCIDENTS (EG CYBER THREATS)
Potential areas impacted
• The rise in cyber attacks posing security threats and increased costs
RESPONSE:
Our cyber security structures provide integrated Information Technology/Operations Technology end-to-end monitoring support
Cyber security due diligence to assess cyber security posture/readiness
ENERGY TRANSITION ACCELERATION
Potential areas impacted
• Unpredictability and change of pace in the transition of the energy landscape to deliver our net zero ambition with failure potentially eroding
shareholder value and delivery on ESG aspirations
RESPONSE:
Monitoring and responding to the changes in the energy landscape which include the applicable regulatory and policy frameworks
SAFETY AND OPERATIONAL DISRUPTIONS (INCLUDING SUPPLY CHAIN AND UTILITIES)
Potential areas impacted
• Constrained global supply chains – inbound and outbound key concerns (potential impact of US/China relationship)
• Electricity and water supply constraints exacerbated by ongoing power outages and loadshedding in South Africa
RESPONSE:
Ongoing multi-stakeholder engagements to monitor developments and provide supporting intelligence to business
STAKEHOLDER ACTIVISM (EG SHAREHOLDERS, ACTIVISTS AND NGOs)
Potential areas impacted
• Increasing pressure from shareholders, activists and NGOs to consider their resolutions on Board composition, accountability in delivering
financial performance and ESG requirements
RESPONSE:
Proactive and constructive engagement with stakeholders
Various initiatives to address stakeholders’ concerns and monitoring of ongoing developments
SASOL INTEGRATED REPORT 2023
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