SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 34
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
RISK MANAGEMENT continued
RISK MANAGEMENT IS EMBEDDED IN SASOL’S STRATEGIC AND OPERATIONAL DECISION-MAKING PROCESSES continued
Managing our Group risk appetite and tolerance
We take a structured and proactive approach to risk management, ensuring alignment with our strategic objectives and commitment to sustainable
value creation. Through the One Sasol ERM Approach, we integrate risk considerations into decision-making, optimising returns while safeguarding
stakeholder interests.
We define risk appetite and risk tolerance as follows:
RISK APPETITE
RISK TOLERANCE
The extent and type of risk we are
willing to take in pursuit of our
strategic objectives.
The level of risk we are prepared to
accept, establishing clear boundaries
beyond which we will not operate.
Aligned with the Group’s approved financial risk appetite and tolerance levels, we actively manage risk exposures related to net debt positions, debt
covenants and gearing, reinforcing financial resilience and balance sheet strength. We assess risk appetite and tolerance against key financial metrics,
including net debt to EBITDA, gearing, and net debt levels. To ensure effective risk governance, we regularly review and update performance against
our risk appetite and tolerance metrics, considering emerging risks and evolving business dynamics. This approach supports strategic agility, financial
stability, and long-term sustainability.
Top-down and bottom-up process to identify and manage risks
An iterative risk review process – allowing for both top-down and bottom-up risk updates and developments to ensure that the overall
Group Material Risks reflect material areas of exposure.
GROUP
RISK
THEMES
SASOL INTEGRATED REPORT 2025
33
ro
ive P cess
BOTTOM UP
t
ra
OME TOP RISKS, PROJECT/
INITIATIVE TOP RISKS AND SIMILAR
Ite
Group Materiality Filter (includes risks with potentially high impact)
OPERATING MODEL ENTITY'S (OMEs) AND OTHER RISKS
OMEs, projects and or other initiatives have specific instances of
risks that ultimately provide a bottom-up risk view. Where these
risks meet the Group materiality thresholds, they are escalated
for Group consideration.
ro
ive P cess
GROUP
MATERIAL RISKS
Ite
t
ra
GROUP MATERIAL RISKS (GMR)
Group Material Risks are linked to the Group risk themes and inform the
overall risk rating of the theme. The 18 GMR's are deemed to be the most
material risks to the Group that require active management. Other risks linked
to the themes and watch list risks are also monitored.
TOP DOWN
GROUP RISK THEMES
Sasol has 11 Group risk themes which are assessed at both residual and
target residual risk levels.
