Sasol Limited Integrated Report 2021 - Book - Page 26
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Strategically managing our Group top risks (CONTINUED)
Sasol’s Group top risks are continuously managed, monitored and reviewed as aligned with the Group’s business
imperatives considering our materiality lens, our material matters, top priorities, sustainability focus areas and
the six capitals. The review of our Group top risks are further tested against major internal and external developments
reported through our emerging risks (watch list) process, plausible business scenarios and appropriate risk flags.
Business scenarios are customised and stress tested against progressive international, regional and national scenario
parameters as well as key driving forces.
Our Group top risk themes are linked to key business imperatives, supporting our sustainability intent
and triple-bottom-line outcomes. They are also connected to our material matters and how we use the
six capitals to preserve and create shared value.
MM
Safety
People
Talent
Decarbonising
Trust
Sasol 2.0
Group strategy, business imperatives
and objectives
Key business
imperatives
Functional risks – through engagements with
subject matter experts
Internal organisational
developments
Group top risks
Business
sustainability and
earnings growth
Group top risk
themes
Business top risks – through engagements
with business stakeholders
Assurance in respect
of the Group top
risks is provided
based on the
Combined Assurance
Model
Emerging risks on watch list – through
engagements with internal stakeholders and
sourcing of risk intelligence from external sources
Pressure risk flags – developed in
respect of business initiatives, strategic
scenarios and emerging risks
Business scenarios
Includes risks associated with:
– macroeconomic factors impacting
key business drivers;
– volatile commodity prices and
exchange rates;
– short-term cost increases;
– credit rating downgrades;
– liquidity;
– solvency;
– gearing;
– going concern;
– debt covenant breaches; and
– tax liability and exposure
(includes carbon tax).
• Group financial market risk management policy, processes and
frameworks (includes hedging)
• Sales and operations planning processes
• Group assumptions, budgeting, forecasting and scenario
analysis processes
• Sasol 2.0 full potential initiatives
• Global tax strategy and management
• Management of relationships with lenders, credit rating
agencies and tax authorities
Safety and
operational
Includes risks associated with:
– process safety;
– occupational safety;
– occupational health and product
safety incidents; and
– various risks that could result
in unplanned operational and
reliability interruptions.
• Zero harm SHE philosophy
• HSI management and fatality prevention programmes
• Process safety, occupational safety, occupational health,
environmental and product stewardship management systems
• SHE risk management and incident management
• One Sasol SHE Excellence Approach: each business to evolve
its own SHE governance
• Sasol Operations Management System including asset
management
• Critical assets, extreme weather, natural disaster, feedstock,
supply chain and utility interruption set of key responses
and processes
• Insurance as a risk transfer mechanism
• Group crisis management, emergency response and
contingency planning
Legal, regulatory
and governance
Includes risks associated with:
– legal compliance in multiple
jurisdictions;
– adherence to corporate
governance requirements;
– changing policy and regulatory
requirements in multiple
jurisdictions; and
– challenges with regards to delivery
on environmental commitments.
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Monitoring of
Group top risks
Tracking and monitoring emerging risks on our watch list
Business
sustainability and
earnings growth
These refer mainly to unknown aspects around these risks which are identified
as part of key developments emerging in our business environment
Theme
Global security incidents
(eg cyber threats)
Potential areas impacted
Business response
Information security eg in the areas of Information Our cyber security structures providing
Technology (IT)/Operations Technology (OT)
integrated Information Technology
Cyber Security Programme
(IT)/Operations Technology (OT)
end-to-end monitoring support
Increasing pressure from NGOs, activists and
shareholders to force their resolutions on
Board composition, environmental, social
and governance (ESG) requirements and
financial performance
Various initiatives to address
stakeholders’ concerns
Geopolitical threats
Insurgence activity in Mozambique which may
potentially cause major business interruption
Participation in multi-stakeholder
forums and initiatives to assess the
posed risk
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Sasol Integrated Report 2021
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Information
management
Stakeholder activism
(eg shareholders, activists
and NGOs)
Key responses
Financial
Top-down and bottom-up process
to develop Group top risks
External business
developments
Group top risks
Includes risks associated with:
– information and cyber security
threats including business
operations outages as well as a
force majeure.
Multi-disciplinary compliance programmes
Sasol’s Code of Conduct
Annual compliance certification
Annual compliance and governance training and awareness
Due diligence processes and screening tools
Governance policy, standards and procedures, including
disclosure controls
Adherence to listing requirements
Monitor developments in policy, legislative and regulatory
landscape to understand the impact on our business
Proactive engagement with stakeholders to make appropriate
disclosures
Deliver on committed environmental roadmaps and offset
programmes
• Information security controls, maturity roadmap, training
and awareness
• Monitor global cyber landscape to identify, detect protect
and respond to and recover from cyber breaches
• Global information security management process
• Information technology security continuity plans
• Execution and monitoring of critical Operations Technology (OT)
security controls and remediation of weaknesses identified
• Simulation exercises that are aligned with global threat
landscape confirmed