Sasol Integrated Report 2024 - Book - Page 35
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 continued
2
continued
ASPECT 2: MEDIUM- TO LONG-TERM BUSINESS VIABILITY AND SUSTAINABILITY
RISK THEME
Capital
Investment
(Includes
capital
allocation)
RISK THEME
Geopolitical
RISK DESCRIPTION
Includes risks associated with:
• project performance and
value delivery, driven by both
internal delivery risks and risks
arising from unexpected
changes in the external
environment;
• capital project portfolio;
• capital allocation;
• capital availability (internal/
external funding); and
• capital structuring.
RISK DESCRIPTION
Includes risks associated with:
• operating in countries
and regions, with varying
geopolitical, socio-economic
and developmental landscapes;
• conflict and civil unrest; and
• unfavourable macroeconomic
environment impacting
unemployment, creation of
business opportunities and
skills development initiatives.
POTENTIAL IMPACT
RESPONSE
• Material project cost and schedule impact
• Material impacts on capital availability,
capital allocation across the portfolio, debt
reduction, cash flows and profitability
• Disciplined capital allocation decisions, portfolio approach to capital allocation and business
case development through robust stage-gated de-risking and governance
• Effective management of capital portfolio within Group targets protecting the balance sheet
• Entrenching value-based investment principles in investment decision-making, development
and implementation, underpinned by a focus on delivering an overall investment case
(not only cost, schedule, quality, etc)
• Progressive and continuous robust milestone-driven de-risking of assumptions and investment
risk profile over the development lifecycle and beyond
• Strengthening business development and implementation capabilities
• Committed to providing sustainable and competitive shareholder returns
POTENTIAL IMPACT
RESPONSE
• Safety and security of our people
and service providers
• Production interruptions in our business
value chain
• Failure to meet service level agreements
with customers
• Active participation in organised community and industry platforms
• Corporate Social Investment and Enterprise Supplier Development programmes
• Involvement in providing solutions to address shortage of critical services in fenceline
communities
• Preserve employment focusing on new opportunities, localisation and partnering
with key stakeholders
• Provide skills development and learnerships given the existing high demand from communities
SASOL INTEGRATED REPORT 2024
33
