Integrated_Annual_Report_2026 - Flipbook - Page 99
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
ENVIRONMENT CONTINUED
Climate change continued
ADAPTATION POSITION
Sasol recognises climate change
as a material risk to the resilience of
operations, supply chains and the
communities in which it operates.
Sasol’s adaptation response focuses
on strengthening its ability to anticipate,
prepare for and respond to the physical
impacts of climate change, while
safeguarding value across its integrated
value chains.
In FY26, Sasol is continuing its journey
to advancing its approach from
high-level risk identification to more
structured, decision-useful analysis.
www
For more information on climate change adaptation
refer to the website: www.sasol.com
• Inland operations, including Secunda and Sasolburg, are
• Global operations, including Mozambique, the United States
and Europe, remain vulnerable to region-specific risks such as
cyclones, hurricanes, extreme heat and cold events
These insights have been integrated into Sasol’s enterprise risk
management framework, emergency preparedness protocols and
business continuity planning processes, strengthening its ability
to respond to climate-related disruptions.
Advancing quantification of physical climate risks
Sasol initiated a formal process during the year to enhance the
quantification of climate-related physical risks across its operations.
Specialist partners were invited to submit proposals to support
the development of a robust, fit-for-purpose methodology to quantify
physical climate risks at asset level. This work will enable Sasol to:
Building resilience across Sasol’s
operations and supply chain
• Quantify the proportion of assets and business activities
During the year, Sasol made meaningful
progress in strengthening its adaptation
response and aligning with emerging global
disclosure expectations.
• Assess the potential financial impacts of acute and chronic
Sasol updated and expanded the climate
change adaptation risk profiles across the
Southern African value chains, with a specific
focus on supply chain infrastructure, critical
logistics corridors and key operational assets.
These assessments identified priority risk
exposures, including flooding, extreme rainfall,
storms, heatwaves and fire, and evaluated
their potential impact on operations, safety,
environment and financial performance.
This initiative represents a critical step in strengthening
Sasol’s climate-related disclosures, moving beyond qualitative
assessments towards quantified, decision-useful information.
The analysis indicates that:
• Coastal operations, particularly in
KwaZulu-Natal, remain highly exposed to
flooding and storm-related disruptions, with
potential operational interruptions of up to
five days per event
FEATURE STORY:
increasingly exposed to extreme rainfall and associated
flooding, typically resulting in shorter-duration disruptions of
one to three days per event
Adapting to a Changing Climate: Strengthening Energy
Security Across Borders
In early 2026, extreme weather events in Mozambique served as a
clear reminder of the growing physical risks posed by climate
change to critical energy infrastructure and communities. Following
periods of intense rainfall and flooding, Sasol issued a precautionary
notification to customers regarding potential disruptions to natural
gas supply, demonstrating both the reality of climate-related risks and
the importance of proactive risk management.
Flooding in southern and central Mozambique damaged road infrastructure
and disrupted access to key operational sites, particularly around the Temane
Central Processing Facility. These conditions constrained the transportation
of condensate and limited access to essential resources, temporarily affecting
production and logistics.
Despite these challenges, gas deliveries to customers in South Africa continued
uninterrupted.
exposed to physical climate risks
Sasol’s response to the Mozambique flooding reflects a structured and forwardlooking approach to climate adaptation and key elements of this response include:
climate hazards
• Support scenario-based analysis to inform strategic and capital
• Early warning systems and transparency
The precautionary force majeure notice ensured that customers were informed
ahead of any potential disruption, enabling operational preparedness.
allocation decisions
• Operational flexibility and system optimisation
Sasol implemented measures such as optimising production from available
wells and adjusting internal consumption to stabilise supply.
• Infrastructure and logistics resilience
Looking ahead
Flooding disrupted road access and condensate transportation, requiring
storage management and temporary production adjustments while alternative
transport solutions were explored.
Looking ahead, Sasol’s focus is on:
• Completing the quantification of physical climate
risks across its priority assets to strengthen the
resilience of its operations, employees and fenceline
communities
• System-wide contingency planning
Contingency planning was activated, with customers informed through
distributors such as Egoli Gas. Gas supply remained uninterrupted, and
customers were not required to adjust consumption.
• Enhancing physical climate scenario analysis
capabilities
This integrated response demonstrates how climate risk management is
embedded within operational decision-making, and how Sasol’s adaptation
response extends beyond operational continuity to the safety of its people and
the resilience of the communities around its operations.
• Progressively strengthening its disclosures in line
with ISSB IFRS S2 requirements
SASOL INTEGRATED REPORT 2026
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