Integrated_Annual_Report_2026 - Flipbook - Page 23
INTRODUCTION
SASOL AT A
GLANCE
DRIVING SUSTAINABLE
VALUE CREATION
EXECUTING
STRATEGY
DELIVERING
BUSINESS VALUE
SUMMARISED FINANCIAL
PERFORMANCE
CORPORATE
GOVERNANCE
SUSTAINABILITY
REPORT
REMUNERATION
REPORT
ASSURANCE/
ADMINISTRATION
RISKS AND OPPORTUNITIES CONTINUED
Embedding a strong risk culture
Sasol fosters a risk-aware culture where risk management is embedded in how it operates and makes decisions. This is achieved through leadership accountability that sets the tone,
clear communication and training that build understanding and capability, integration into core processes to ensure consistency, technology that enables transparency and decision-making,
and the embedding of risk activities in day-to-day operations.
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For more details on the risk culture, refer to www.sasol.com/ESG
Governance and oversight of risk management
Managing Sasol’s Group risk appetite and tolerance
Sasol applies an integrated risk governance model that embeds risk
management into the company’s strategic intent and execution. Oversight
is driven by the Board of Directors (the Board), supported by Board
Committees and the Group Executive Committee (GEC).
Sasol applies a disciplined approach to
managing Group risk appetite and tolerance,
aligned with its strategic objectives and
long-term value creation. Through the One
Sasol ERM approach, risk considerations
are embedded in decision-making.
The Board holds ultimate accountability, ensuring alignment with Sasol’s
ERM Framework and CAM. Its responsibilities include:
• Strategic risk oversight: Setting direction through Risk Policy and
defining Group financial risk appetite and tolerance metrics to
support sustainable growth
• Risk management effectiveness: Evaluating the adequacy and
performance of risk processes aimed at proactive management of
material risks, understanding health and status of the key responses and
driving continuous improvement through improved risk maturity over time
• Board Committees’ role: Overseeing assigned GMRs and ensuring
assurance mechanisms align with the CAM
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For more information on the internal control framework and assessment refer to
www.sasol.com/ESG
This governance structure reinforces Sasol’s
commitment to proactive risk management, strategic
resilience, and long-term value creation.
The Group is governed through established structures that are subject
to regular review. These structures provide for appropriate delegation of
authority while enabling the Board to maintain effective oversight.
Appropriate policies and processes are in place to ensure that all Group
entities comply with key Group requirements and minimum governance
standards. As a direct or indirect shareholder, Sasol Limited exercises its
rights and participates in decision-making on significant matters relating
to its subsidiaries.
Subsidiaries adopt the governance framework as appropriate and align
their Memoranda of Incorporation and Shareholder Agreements with the
Group governance framework.
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Financial risk appetite is actively managed
against approved metrics, including net
debt, gearing and net debt to EBITDA, with
regular review to reflect emerging risks and
changing business conditions, supporting
financial resilience and strategic agility.
We define risk appetite and risk tolerance as follows:
RISK APPETITE
The extent and type of risk Sasol is willing to take
in pursuit of our strategic objectives.
RISK TOLERANCE
The level of risk Sasol is prepared to accept, establishing clear
boundaries beyond which the company will not operate.
Top-down and bottom-up process to identify and manage risks
Sasol applies an iterative risk review
process that incorporates both top-down
and bottom-up inputs to ensure the GMRs
remain reflective of the Group’s most
material risk exposures.
GROUP MATERIAL RISKS (GMRs)
Enterprise-level risks requiring active
management and oversight
Assessed at inherent, residual and target risk levels
The current 16 GMRs represent the most
significant enterprise-level risks requiring
active management and oversight and are
assessed at inherent, residual and target
risk levels.
Supporting the GMR profile are risk
profiles for Operating Model Entities
(OMEs), projects and other key initiatives,
where risk exposures are continuously
identified, assessed and monitored. Risks
that exceed established Group materiality
thresholds are escalated for Group
consideration and may be incorporated
into the GMR profile.
For details about the Escalation reporting structure refer to www.sasol.com/ESG
SASOL INTEGRATED REPORT 2026
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Escalation to GMRs based on
Group materiality thresholds
OME, PROJECT AND INITIATIVE RISK PROFILES
Risk exposures continuously identified,
assessed and monitored
Support the GMRs profile
All risk instances across Sasol are managed and report to
respective Operating Model Entities (OMEs), project committees
and initiative sponsors.
