| Risk |
Summary of measures taken to address the risk |
| Major fire or explosion at any
site with large hydrocarbon
inventory. |
All Sasol sites have identified and quantified their major risks in these categories. Risks have been quantified using the insurance estimated maximum loss approach and a quantitative risk assessment (using the industry standard DNV's PHAST). Specific mitigation measures and contingency plans have been drawn up and, where required, agreed with relevant authorities. Site risks, as well as mitigation and contingency plans, are reviewed as part of SH&E corporate governance audits. A comprehensive safety improvement plan is being implemented. |
Major release of hazardous
gas or vapour. |
| Major shipping or transport
incident (fire, explosion,
emission, spillage or gas
pipeline rupture). |
In most cases, responsibility to manage these emergencies lies with third parties. Where Sasol uses third−party
logistics service providers, we assess compliance with specific requirements. In addition, we provide
first-line advice using emergency call centres. A group-wide target has been set of achieving at least a
50% reduction in the number of significant logistics incidents per tonne of product transported, on the
2004 baseline, by July 2009. |
| Insufficient awareness and
experience, or poor attitude
of employees or service
providers, on SH&E issues. |
Broad technical competence, as well as SH&E professional competence, is at risk. Critical safety elements
include commitment, safety culture, service provider performance and process safety management. Sasol is
implementing globally accepted minimum standards, systems and procedures to reduce the duplication of
effort and to ensure acceptable levels of performance globally. A strong focus is placed on the promotion
of behavioural-based safety practices. |
| Climate change poses a
challenge for business.
Carbon taxes could affect
CTL and GTL plants. Carbon
credit trading is an
opportunity. |
We have a position statement on greenhouse gas (GHG) emissions. A group-wide target has recently been
set with the aim of achieving at least a 10% reduction in GHG emissions per tonne of product, on the 2005
baseline, by July 2015. This reduction will be facilitated by switching feedstock at new and existing facilities,
reducing emissions at our nitric acid facilities, and implementing and promoting energy efficiency.
New CTL and GTL plants will be designed for significant reductions in CO2 emissions and allow for CO2
sequestration. We have the opportunity to make significant savings by energy-efficiency improvement
and to use carbon credits. |
| Changes in environmental
laws (especially air, water
and waste), resulting in
higher compliance costs. |
In South Africa, a new Air Quality Act has been promulgated, bringing South Africa in line with international
requirements for air emissions. China, Mozambique and some Middle Eastern countries have also
strengthened their legislation. Minimum requirements based on World Bank standards or local legislation
(whichever is the more stringent) are being adopted for all new projects. A number of capital projects have
been approved for our South African operations to reduce emissions. We maintain a working relationship
with government departments in all the major regions in which we operate. |
| Impact of long-term
exposure to harmful
materials (eg, asbestos,
benzene and dioxins) on the
health of employees and the
neighbouring communities. |
Legal actions on health issues are becoming more common in South Africa. Asbestos is no longer installed
in new Sasol plants. Old asbestos is being removed from our business on a risk-based priority programme.
European Union (EU) and United States of America (USA) emission inventories are undertaken routinely
and are tightly monitored. A harmful emissions inventory is being developed in South Africa. All operational
staff are subject to annual medical evaluations and are provided with personal protective equipment and
relevant training as necessary. A new group-wide target has been set of achieving at least a 50% reduction
of the emission of VOCs, on the 2005 baseline, by July 2015. |
| Inherent SH&E risks in
technology development
(R&D, concept, design,
construction and
commissioning). |
Provision is made for lower risk technologies and cleaner production approaches in new project design.
Hazard and operability studies and quantitative risk assessment are used. Additional classification tools and
checklists are being developed for further improvement. |
| Implementation of tighter
product regulations, such as
new fuel regulations in
South Africa, and new
chemicals legislation in
Europe. |
Significant progress has been made in implementing product-related initiatives relating, for example, to
cleaner fuels (Project Turbo) and to compliance with EU chemical products legislation. The impact of other
countries' chemical legislation will be assessed when the new regulations are available. |
| Reduced availability of skills
and competence to design,
construct, operate and
maintain plants. |
Programmes are being developed to upgrade the professional and artisan training programmes of people
in South Africa, to provide further training to Sasol employees through in-house programmes and external
institutions, to stimulate recruitment globally, and to leverage external resources. |
| Natural disasters and
epidemics or pandemics
(eg, SARS and avian
influenza). |
A task force has been formed to address contingency plans for avian influenza. Business units are to review
existing business continuity planning. Although this is seen to have a low probability in the short term, it
has a high potential to disrupt business. |
| Environmental liabilities due
to past contamination
(eg, mine water, air
emissions and contaminated
groundwater). |
Sasol Technology has developed a group-wide approach to identifying and quantifying environmental
liabilities in South Africa. This project will take several years to complete. The EU and USA sites'
environmental liabilities were well characterised during the due diligence process, with relatively low
residual risk. Ongoing work is being taken to remediate contaminated land throughout our South African
operations. Our goal is to prevent future contamination and address all historical issues. |
