Sasol Integrated Report 2024 - Book - Page 33
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
DATA AND ASSURANCE / ADMINISTRATION
REMUNERATION REPORT
RISK MANAGEMENT continued
RISK MANAGEMENT IS INTEGRATED INTO OUR DECISION-MAKING PROCESSES AND DAILY OPERATIONS
Our Group top risks by aspect and risk themes
1
continued
ASPECT 1: SHORT-TERM BUSINESS RESILIENCE AND VIABILITY
RISK THEME
Financial
RISK DESCRIPTION
Includes risks associated with:
• volatile commodity prices
and exchange rates;
• short-term cost increases;
• credit rating downgrades;
• liquidity, solvency, gearing
and going concern;
• debt covenant breaches; and
• tax liability and exposure
(includes carbon and
windfall taxes).
RISK THEME
RISK DESCRIPTION
Safety
Includes risks associated with:
• process safety;
• occupational safety;
• occupational health and
product safety incidents; and
• environmental incidents.
POTENTIAL IMPACT
RESPONSE
• Material adverse effect on cash flows,
profitability, potential impairments, share
price, cost of capital, debt reduction and
ability to finance debt maturities before
they mature
• Group financial market risk management policy, processes and frameworks (including
hedging and environmental, social and governance (ESG) linked financing framework)
• Group assumptions, budgeting, forecasting and scenario analysis processes
• Creating financial headroom by optimising cash flow including margin improvement and
cost containment initiatives
• Balance sheet management and protection through hedging, including management
of financial risk appetite and tolerance metrics
• Continued proactive management of relationships with key stakeholders (eg lenders,
investors, rating agencies)
POTENTIAL IMPACT
RESPONSE
• Fatal/severe life-altering injury
(employees, public, on-site or road
transport service providers)
• Hospitalisation of personnel
• Irreversible/significant environmental
impact
• Zero Harm aspiration with high-severity incident (HSI) programme and fatality
elimination programme
• Process safety, occupational safety, health and environmental management programmes
(including product stewardship)
• One Sasol SHE Excellence Approach
• Our SHE Fundamentals anchored in Accountable Leadership, Engagement of People,
Event Prevention and Continuous Improvement
• Personnel training and competency
RISK THEME
Operational
RISK DESCRIPTION
Includes risks associated with:
• utility supply interruption
(electricity and water);
• security, availability
and quality of feedstock;
• failure of critical assets;
• extreme weather events; and
• supply chain disruptions
(inbound and outbound
logistics).
POTENTIAL IMPACT
RESPONSE
• Production interruptions with a Group
impact on the integrated value chain,
production volume targets, cash flow
and profitability
• Integrated planning and optimisation processes
• Operational core processes (includes asset strategies, maintenance planning,
operating within agreed parameters and turnaround management)
• Production improvement programmes
• Asset integrity and maintenance management systems/processes
• Group crisis management and emergency response and preparedness protocols
• Personnel training, competency testing and performance management
SASOL INTEGRATED REPORT 2024
31
