Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 39
which could have a material adverse effect on our
business, operating results, cash flows, financial
condition and future growth.
the courts of other jurisdictions, should the host
governments hold the view that these contracts are not
beneficial to their countries.
(e) Stakeholder relationships
(g) Other specific country risks that are applicable
to countries in which we operate and which may
have a material adverse effect on our business
include:
Sasol has a complex network of stakeholders,
often with competing interests. Beyond our financial
community, our stakeholders are persons or groups who
are or may be directly or indirectly affected by our
operations, as well as those who have interests in our
business and/or the ability to influence its outcomes.
Stakeholders may include members of local
communities and their representatives, national,
provincial or local government authorities, officials at
all spheres of government, government agencies,
multilateral organisations, regulators, political and
religious leaders, civil society organisations and groups
with special interests, suppliers, investors, business
partners, customers, employees, trade unions,
academics and the media. Failure to manage
relationships with our stakeholders may harm our
reputation as well as our ability to conduct our
operations effectively. Our stakeholder objective is to
position Sasol as a credible partner and build trust with
all our stakeholders. Our engagement approach is
premised on open and effective communication and
mutually beneficial outcomes where possible, as well as
inclusiveness and integrity.
Given the impact of operating in a volatile
macroeconomic environment and considering the
fallout of the COVID-19 pandemic, especially in South
Africa, where the rate of vaccinations is slower than
other jurisdictions in which we operate, we may not be
able to meet some of our stakeholder commitments in
2022. This may have a material impact on stakeholder
relations. Various processes are in place to proactively
engage with stakeholders and to mitigate associated
risks. However, we cannot assure you that the strategy
will fully mitigate the risk and therefore, actions taken
by stakeholders could have a material adverse effect on
our business, operating and financial results, and future
growth.
•
acts of warfare and civil clashes;
•
the loss of control of oil and gas field
developments and transportation
infrastructure;
•
failure to receive new permits and
consents;
•
expropriation of assets;
•
lack of capacity to deal with emergency
response situations;
•
social and labour unrest and riots due to
economic and political factors in host
countries;
•
terrorism, insurgency, xenophobia and
kidnapping threats;
•
security threats to assets, employees and
supply chain including cyber threats;
•
possible demands to participate in
unethical or corrupt conduct that lead us
to forgo certain opportunities;
•
feedstock security of supply; and
•
sanctions against countries in which we
operate.
Risks related to the market
Cyclicality in petrochemical product prices and
demand may adversely affect our business,
operating results, cash flows and financial condition
(f) Contract stability
Host governments in some of the resource-rich
countries in which we operate or consider making
investments may display tendencies of wanting to
change existing contracts through early terminations,
non-renewal or cancellation of contractual rights. In
these jurisdictions, we may not be able to fully enforce
our contractual rights or enforce judgements obtained in
Sasol’s chemicals portfolio includes several
products that are exposed to cyclicality in margins.
Margins for polymers, solvents, surfactants and
fertilisers trend in a cyclical manner that usually, but
not always, coincides with the normal business cycles
of regional and global economies. Periods of high
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