Integrated_Annual_Report_2026 - Flipbook - Page 24
INTRODUCTION
SASOL AT A
GLANCE
DRIVING SUSTAINABLE
VALUE CREATION
EXECUTING
STRATEGY
SUMMARISED FINANCIAL
PERFORMANCE
DELIVERING
BUSINESS VALUE
CORPORATE
GOVERNANCE
SUSTAINABILITY
REPORT
ASSURANCE/
ADMINISTRATION
REMUNERATION
REPORT
RISKS AND OPPORTUNITIES CONTINUED
Group Material Risks (GMRs)
GMRs management and process
Recognising that risk exposures and opportunities develop and materialise over different timeframes, Sasol assesses and manages its GMRs across
short-, medium-, and long-term horizons.
This forward-looking approach enhances the organisation’s ability to identify emerging risks and opportunities, evaluate potential implications for
strategy and performance, and adapt key responses as conditions evolve. By considering both current and future risk drivers, Sasol strengthens
organisational resilience, supports informed decision-making and maintains a balanced view of factors that may influence future performance.
The GMR process ensures that current material risks are effectively managed while maintaining a long-term perspective on trends, uncertainties
and opportunities that may impact the sustainability, competitiveness and long-term value creation potential of the business.
Identified through the ERM process, all GMRs
are presented with details of the key responses,
material matters, the six capitals, link to the
strategic objectives and all relevant supporting risk
information.
• The six capitals provide a consistent lens to
GMRs are assessed
SHORT-TERM
MEDIUM-TERM
LONG-TERM
0 – 2 years
2 – 5 years
5+ years
and managed across
short-, medium-, and
assess how risks and responses affect these,
supporting a balanced view of dependencies,
trade offs and resilience over time
FC
HC
NC
MC
SC
IC
long-term time horizons,
showing evolving risk
exposures, impacts,
Responding to near-term risks
and operational pressures
Managing emerging risks
and capturing opportunities
opportunities, and
Anticipating future
shifts and enabling
sustainable value creation
• The risk profiles are also linked to the three
strategic objectives to show relevance and
alignment
EVOLVING RISK EXPOSURES AND RESPONSES
response requirements
For more detail regarding the six capitals refer to pages 33 – 35.
over time.
Forward-looking
assessment
Informed strategic
decision-making
Building resilience
across horizons
Creating long-term value
for all stakeholders
S1
S2
S3
For strategic objectives refer to pages 33 – 35.
GMRs profile
GMR
1
Material business
underperformance
compounded by external
headwinds impacting cash
flow generation and the
ability to deleverage the
balance sheet
Material financial risks,
together with external
macroeconomic vulnerabilities
(economic downturns,
inflationary pressures, and
volatile commodity prices
and exchange rates),
may negatively impact
business performance,
debt management, and
future income
KEY RESPONSES
• Forward looking risk management: Expanded scenario analysis, “what if” playbooks and refreshed
forecasts to anticipate risks and opportunities
FC
• Cost and asset optimisation: Cost reduction programmes, asset reviews and turnaround plans to improve
efficiency and lower breakeven levels
• Balance sheet and liquidity resilience: Active cash and liquidity management, refinancing initiatives, debt
reduction plans and diversification of funding sources
• Integrated planning and governance: Alignment of operational forecasts with financial risk appetite
through Integrated Business Planning and updated Group assumptions
• Market and geopolitical responsiveness: Ongoing monitoring of geopolitical and trade developments,
supported by dedicated war rooms and targeted hedging strategies
Strengthening our foundation business
LINK TO 6
CAPITALS AND
STRATEGY
BOARD COMMITTEE: Audit Committee
SASOL INTEGRATED REPORT 2026
23
GEC SPONSOR: Group Chief Financial Officer
S1
S2
