Sasol Climate Change Report 2023 - Book - Page 48
INTRODUCTION
TRANSFORMING FOR RESILIENCE
GOVERNANCE
CLIMATE ADVOCACY AND POLICY
DATA AND ASSURANCE
ADAPTATION CONTINUED
Progressing our adaptation strategy
With climate change thinking firmly entrenched across the company, we continue to advance the operationalisation of our adaptation strategy. Specifically, we are integrating
adaptation risk profiles into business processes and reporting. In the long term, we will build off this foundation to ensure continuous improvement while incorporating global best
practice at all levels of management decision-making.
Our adaptation approach: Moving from reactive to proactive action
REACTIVE
PROACTIVE
PHASE 1 // DEVELOPING OUR ADAPTATION
RESPONSE TO EXTREME WEATHER EVENTS
(2010-2017)
PHASE 2 // DEVELOPED OUR CLIMATE
CHANGE ADAPTATION RESPONSE
STRATEGY (2018-2019)
" Identified and implemented controls in
response to extreme weather events.
An assessment confirmed that future climate
change risks will be amplified over time.
" Our strategy was informed by a detailed
downscaled climate change assessment at
four operating sites: Secunda, Sasolburg,
Mozambique and Lake Charles. We are
experiencing highly variable climate impacts
in all of the regions where we operate, and
more pronounced effects at these operations.
" Developed and implemented weather-ready
guidelines.
" Embedded weather-related impacts into our
risk management process and emergencypreparedness plans and procedures.
PHASE 3 // UPDATING OUR ADAPTATION
RISK PROFILES (2020-2023)
" Through a risk-facilitated process, our
site-specific climate change adaptation risk
profiles were reviewed and updated, with
responses confirmed.
" Adaptation risk profiles are
reviewed periodically to ensure their
suitability for a changing climate.
" Our modelling work for the prioritised sites
predicted the following, which informs our
adaptation risk profiles:
LONG TERM // 2025 AND BEYOND
Systems, processes and projects are
beginning to mature.
Implementing monitoring and
assurance of site-specific actions
such as asset integrity, maintenance
schedules and early warning systems.
Assessing and incorporating global
best practice as well as identification
of emerging risks.
3 a future increase in average temperatures
of 1°C 3 4°C;
3 a five-fold increase in extreme hot days,
from above five to 25 days per year;
3 rainfall patterns will change; and
3 severity of storm events will increase.
We are integrating climate change-related metrics into our design standards. We are also investigating methodologies and tools to improve the translation of our physical risks into financial indicators.
Benefits of integrating relevant metrics into standards
Moving towards quantitative financial indicators
By considering risks such as extreme weather events and other disruptions, design standards can guide
the development of infrastructure and systems that are better equipped to withstand and recover
from such events. This will also minimise damage and ensure continuity of service. These standards
could include enhanced stormwater management systems, which can involve constructing flood
barriers, levees or drainage systems.
We are engaging numerous internal and external stakeholders, which will lead to updates to our
site-specific standards.
Climate-related disclosure requirements are evolving from qualitative to quantitative, requiring
companies to align climate-related risks (physical and transitional) with their financial statements.
Sasol appreciates the importance of this shift and is actively working towards integrating quantitative
risk-assessment methodologies into our climate-related disclosures. By quantifying climate-related
risks, we improve our understanding, resource allocation, decision-making processes and prioritisation
of adaptation actions.
Software-based climate adaptation physical risk modelling tools could enable us to integrate objective
data into our reporting and analysis. Sasol is evaluating such tools for applicability in our operations.
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