Sasol Integrated Report 2023 - Book - Page 69
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
GOVERNANCE CONTINUED
Key issues the Board focused on in 2023
and remains invested in going forward
INTERNAL CONTROL FRAMEWORK
AND ASSESSMENT
The Board, with the support of the Audit
Committee, is ultimately responsible for Sasol’s
system of internal control, designed to identify,
evaluate, manage and provide reasonable
assurance against material misstatement
and loss. We apply a combined assurance model,
which seeks to optimise the assurance obtained
from management as well as internal and
external assurance providers while fostering a
strong ethical context and mechanisms to ensure
compliance. Through the Risk Policy and
strategic intent of risk management approved
by the Board, management identifies key risks
facing Sasol and implements the necessary
internal controls.
OUR COMBINED ASSURANCE MODEL
1
Making sure our people return home safely is the top
priority of the Board. Fatalities are unacceptable.
Significant time is devoted to monitor processes
implemented to ensure Zero Harm.
2 Transforming for resilience
Resilience, operational stability and performance
and cash flow improvement remain essential,
especially in view of continued market volatility,
geopolitical uncertainty and disruptions, and the
deepening global energy crisis. Progressing Sasol 2.0 is a
priority. We are also re-focusing on Sasol Mining’s
performance and on improving the stability of our
South African value chain.
3 Caring for our planet
We have invested significant time in implementing
our air quality improvement plans, including the
development of an integrated air quality and
greenhouse gas (GHG) reduction solution, and plotting
our path to deliver on our GHG emission-reduction
targets. It is essential that we align with an integrated
just transition programme and incorporate localisation
and economic empowerment in our journey. We need
to expand our growth opportunities through
partnerships and source affordable feedstock; for this
we need capital to invest in new technologies and
attract suitable talent.
Management
Internal
assurance
providers
External
assurance
providers
The process is monitored and evaluated under
the direction of internal audit, while external
audit teams cover key controls and accounting
matters in the course of their audits. Other levels
of external assurance are obtained as and when
required.
The consolidated financial statements present
fairly, in all material respects, our financial
position, results of operations and cash flows
as of and for the period.
However, the Company’s internal control over
financial reporting was ineffective due to the
continued existence of the material weakness
with respect to the South African Integrated
Value Chain impairment process, identified
during financial years 2020 and 2021.
Safety of our people
4
Strengthening relationships
with stakeholders and regulators
Our people are the cornerstone to realising our
ambitions, thus capability retention is a key focus area.
Strengthening our partnerships and co-developing
sustainable solutions with our stakeholders for
economic transformation and localisation remain
crucial. Delivering on our commitments is essential and
we are committed to maintain regular and transparent
communication with our stakeholders.
PEOPLE
PLANET
AFS
Refer to the report from the Audit Committee in the
Annual Financial Statements for more information in relation to
the material weakness that was identified in financial year 2020.
PROFIT
Board effectiveness
Newly appointed Directors are apprised of Sasol’s business and their duties and responsibilities as Directors.
Our Directors are also given the opportunity to visit Sasol’s plants and operations. The development of industry and
Group knowledge is a continuous process and Directors are briefed on legal developments and changes in the risk
and general business environment on an ongoing basis. The Board, its Committees and Directors are entitled to seek
independent professional advice concerning the Company’s affairs and to gain access to any information they may
require in discharging their duties as Directors.
The Board formally evaluates its performance and effectiveness, and that of its Committees, Directors and the
Chairman, every second year. A formal evaluation was conducted this year, firstly to assess whether there had been
improvement in the areas identified during the evaluation conducted in 2021 and secondly, to identify any further
areas to enhance.
The Board concluded that it is effective and the Directors are satisfied that the
evaluation process is contributing to the improvement of the Board’s performance
and effectiveness.
Progress was made on the following key considerations identified to be addressed during the previous
formal evaluation in 2021:
• The quantity and focus of material being provided to the Board and its Committees were reviewed
to ensure the material enables constructive dialogue and prioritisation during meetings. The number
of meetings has also been increased to ensure that Directors are kept abreast of developments.
• Key skills and competencies have been identified that would be required for Future Sasol. The succession
plan takes into consideration these required skills and competencies. As a first step, Mr Andreas
Schierenbeck has been appointed and we are comfortable that his past experience as a Chief Executive
Officer in charge of an energy company’s transition will greatly benefit the Board.
• The Board determined that the maximum number of Directors will be 14 for the time being. The ideal size
of the Board is an ongoing matter for consideration, especially given the key skillsets and competencies
required, the composition of the Committees, as well as international footprint and complexity.
• Respect and open and honest discussions enhance trust. Team dynamics and culture remain key focus
areas for the Board. A number of engagements took place during the year to strengthen cohesion among
Directors and promote engagement with executives.
Some key questions considered to ensure the Board remains effective and adds value included:
• What can be done to ensure the success of our current and future leaders? The Board should
ensure that there is focus not only on the succession of executives, but the level below them.
Our people are the cornerstone to realising the Company’s ambitions.
• What are we missing? The Board will continue to focus on the nature and extent of risks faced
by the organisation, the impact of these risks on the strategy, performance and sustainability of
the Company and the effectiveness of the risk management process.
• Are we agile enough and solutions driven? Adaptation of our strategic direction taking into
consideration risks, opportunities, market dynamics and performance is crucial to ensure the
sustainability of the Company.
Another key consideration identified to further enhance the value of the Board going forward was:
• Further evolving the Board’s role of overseeing the effective execution of strategy and ensuring
that the strategy translates into adding value to shareholders and building a sustainable
business. Enhancing data based strategic decision-making and the outside, diverse perspective provided
by Directors to add value to management’s integrated thinking is crucial to ensure resilience.
SASOL INTEGRATED REPORT 2023
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