Our process, principles and practices help us deal with uncertainty by minimising any downside potential and capitalising on the upside potential of those issues that affect our business objectives.
Our Enterprise Risk Management (ERM) process focuses on ensuring the adequacy, appropriateness and effectiveness of our key responses to mitigate potential significant business impacts and ensure that we deliver on our targets.
The ERM process is enabled through our risk management fundamentals which direct all risk management behaviours, actions and decisions and are implemented in accordance with our values. Integrated into day-to-day decision-making, these fundamentals provide the foundation of effective risk management.
Sasol is a values-based organisation, committed to high standards of business integrity and ethics. The Board steers and sets the direction of the Group and brings independent, informed and effective judgement and leadership to bear on material decisions reserved for the Board, while ensuring that strategy, risk, performance and sustainable development considerations are effectively integrated and appropriately balanced.
The Board and its committees continue to closely monitor the implementation of Sasol’s legal compliance policies and processes and improve upon them to mitigate the risk of non-compliance with the laws in the various jurisdictions in which we do business. Competition laws, anti-bribery and anti-corruption laws, sanction laws, safety, health and environmental laws, identified as key Group legal compliance risk areas, remain our focus. We have implemented risk mitigation controls for each of these areas, aiming to achieve a balanced approach on compliance, by taking into consideration Sasol’s obligations as well as Sasol’s rights. The Board is satisfied that it fulfilled all its duties and obligations in the 2018 financial year.
We regularly review and benchmark the Group’s governance structures and processes to ensure they support effective and ethical leadership, good corporate citizenship and sustainable development and ensure that they are applied in the best interests of Sasol and our stakeholders. We have the necessary policies and processes in place to ensure that all entities in the Sasol Group adhere to essential Group requirements and governance standards.
As a direct or indirect shareholder, Sasol exercises its rights and is involved in the decision-making of its subsidiaries on material matters and the Board is satisfied that its delegation of authority framework contributes to role clarity and effective exercise of authority and responsibilities.
Our material matters are factors that have the potential to impact, both positively and negatively, value preservation and creation in the short, medium and long term. Managing them effectively could support or hinder our ability to execute our strategy and remain competitive.
The Board approves the strategy and has ultimate control of the company according to its Memorandum of Incorporation and Board Charter. Through its oversight and strategic steer, it ensures that Sasol capitalises on its opportunities as an ethical, decisive and responsible corporate citizen.
The careful selection of individual directors, to ensure the most appropriate combination of expertise and experience, underpins the effectiveness of the Board in fulfilling its role.