SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 42
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
Tracking and monitoring emerging risks (our "watch list")
Emerging risks are highly uncertain and potentially disruptive, often arising from
shifts in technology, policy, economics, or geopolitics. Their unpredictable nature
makes them difficult to manage using traditional risk tools.
Through our Enterprise Risk Management (ERM) Framework and Risk Policy,
we adopt a proactive approach to identify and monitor these risks early. This
involves structured environmental scanning and integrating insights into our
planning and decision-making processes.
Our approach includes:
A Detecting early signals that may evolve into significant risks.
A Embedding insights into scenario analysis and resilience strategies.
A Collaborating across the organisation to assess potential impacts on
operations, reputation, and performance.
This enables us to remain agile and better prepared for emerging challenges,
while protecting stakeholder value.
OUR WATCH LIST
GEOPOLITICAL THREATS
Escalating global geopolitical
tensions with the potential for
conflict
Increasing protectionism and
trade barriers impacting global
supply chains
Political instability in key regions
affecting market stability
TECHNOLOGY DEVELOPMENTS
INCREASING CYBER THREATS
Rapid advancements in
technology and artificial
intelligence leading to increased
cyber vulnerabilities
Growing sophistication of cyber
attacks targeting critical
infrastructure
Regulatory changes impacting data
privacy and security requirements
ENERGY TRANSITION
SUPPLY CHAIN AND UTILITIES
Unpredictability around the
timing and impact of energy
transition policies
Global supply chain interruptions
causing delays and increased
costs
Shifts in energy demand patterns
due to technological
advancements
Infrastructure vulnerabilities
impacting utility services delivery
Volatility in energy markets driven
by geopolitical factors
Resource scarcity affecting
production capabilities
STAKEHOLDER ACTIVISM
(SHAREHOLDERS, ACTIVISTS AND NGOs)
Increased scrutiny from
stakeholders on environmental,
social, and governance (ESG) issues
Activist campaigns influencing
corporate strategies and
operations
Heightened expectations for
transparency and accountability
from businesses
RESPONSE AND OPPORTUNITIES
RESPONSE AND OPPORTUNITIES
RESPONSE AND OPPORTUNITIES
RESPONSE AND OPPORTUNITIES
RESPONSE AND OPPORTUNITIES
• Diversifying supply chains to reduce
dependency on specific regions or
countries.
• Investing in advanced cyber security
measures and technologies.
• Developing flexible investment
strategies that account for regulatory
uncertainties.
• Building resilient supply chains
through diversification of suppliers.
• Enhancing transparency through
comprehensive ESG reporting
practices.
• Engaging proactively with activist
investors to understand their
concerns.
• Various initiatives to address
stakeholder concerns and meet
future targets as communicated.
• Enhancing geopolitical risk
assessment capabilities.
• Engaging with policymakers to
influence trade policies favourably.
• Conducting regular cyber security
training for employees.
• Collaborating with industry partners
to share threat intelligence.
• Exploring partnerships with
innovative technology providers.
• Monitoring policy developments
closely to anticipate market shifts.
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• Implementing robust infrastructure
maintenance programmes.
• Investing in resource- efficient
technologies to mitigate scarcity
impacts.
