Sasol Limited Climate Change Report 2021 - Book - Page 35
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CLIMATE CHANGE IN BUSINESS PROCESSES
Adapting to climate change
The atmospheric lifetime of CO2, the main GHG, is up to a thousand years, implying that climate change will be felt for decades to come even if all emissions are stopped
today. A complementary adaptation strategy is therefore as important as a mitigation strategy.
At Sasol, we are feeling the consequences of climatic changes and see how they affect the planning and day-to-day operations of our business.
Sasol leverages existing skills, technologies and risk
management processes to embed adaptation practices. We
pursue proactive responses to build the resilience of our people,
business and communities.
Our physical risks are divided into two categories: acute and
chronic risks. Physical risks are direct hazards and require
detailed local understanding and management.
Impacts from climate-related physical risks are embedded in
the risk management approach of each site. Implementation of
mitigating measures lie mainly with Operations and Group Risk,
Sustainability and Supply Chain. An implementation framework
is being utilised to manage these risks.
Different regions are at varying levels of maturity in
implementing their adaptation response. We are leveraging the
more mature regions to cross-pollinate best practice learnings
across the business. With severe weather events increasing
in frequency and intensity, Lake Charles is well-equipped to
respond. This site therefore serves as a best-in-practice case
study, particularly for hurricane preparedness.
Mapping the high probability acute and chronic risks*
Risk type
South Africa
Mozambique
North America
Europe
Acute physical risks: eventdriven
• Tropical cyclones
• Flooding
• Storm surges
• Drought
• Lightning
• Bush fires
• Tropical cyclones
• Storm surges
• Flooding
• Drought
• Bush fires
• Hurricanes
• Storm surges
• Flooding
• Drought
• Flooding
• Landslides
• Storm surges
• Increasing
temperatures
• Tornado
(increasing
winds)
• Increasing
temperatures
• Increasing
temperatures
• Low
temperatures
• Tornado
(increasing
winds)
• Increasing
temperatures
Chronic physical risks: longer
term shifts in climate patterns
Assess risks to understand severity
of impacts on business objectives
MANAGEMENT OF
PHYSICAL RISKS AT
SASOL
Undertake a response gap analysis
and develop actions to close gaps and
implement actions
Prioritise risks
Identify existing processes, procedures
and standards as responses to the
prioritised risks
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• Injuries (minor to fatalities);
• Equipment and infrastructure damage resulting in
production interruptions;
• Supply chain interruptions; and
Four major hurricanes have impacted us since 2005: Rita
(2005), Harvey (2017), Laura (2020) and Delta (2020). Local
infrastructure was impacted and production interruptions
were felt, but no major injuries were recorded. By and large,
this was due to:
• Proactive preparedness: Annually updated manuals
and check lists are available. ’Safe Zone’ maps are visible
across the operations. Stock levels of critical supplies
and equipment (eg diesel and generators for emergency
power) are maintained in audited procedures. Staff are
trained on emergency preparedness and specialised
personnel (eg fire wardens) are re-trained every few
months.
• Detailed weather forecasts and impact modelling:
Designated Sasol representatives share local weather
updates and weather briefings are mandatory.
Identify acute and chronic physical risks
specific to the site and develop a review
frequency
Share best practices
In the United States, hurricane season runs from June to
November and poses one of the most material acute risks
to our Lake Charles operations. Potential consequences can
include:
• Productivity issues from regional impairments or
shutdowns.
*Informed by downscaled climate modelling, interviews with on-site specialists and other relevant climate tools
Sasol's adaptation
implementation
framework
Case study: Sasol's Lake Charles
hurricane preparedness
Sasol Climate Change Report 2021
• Strong specialised support during and after a hurricane:
In the event of a hurricane, quick response procedures
are activated in phases. Trained hurricane response
teams are mobilised ‘ride out crews’ and environmental
specialists monitor potential uncontrolled releases. All
other personnel are evacuated. Portable communication
devices and back-up power are available on-site. Postevent analyses are a must to ensure that lessons learnt
are captured and distributed.
• Relationships with local authorities, utility providers
and neighbouring plants: A strong collaborative
relationship exists between local authorities, utility
providers and other businesses in the area for support
during and after a hurricane. Sharing of resources (eg
steam) and volunteering after a hurricane is undertaken.
Agreements with utilities ensure critical units are provided
with electricity first as the power system is restored.
During these times, force majeure commercial agreements
protect Sasol against liability from production disruptions.
The Group Production Policy is in effect and covers any
financial impact. We also have construction cover in the event
that construction activities are impacted. For all four major
hurricane events, Sasol claimed under these policies.