| Risk |
Summary of measures taken to address the risk |
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| Major fire, explosion or release of hazardous gas
or vapour. |
All Sasol sites have identified and quantified their major risks in these categories.
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. |
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|
| Major logistics incident (fire, explosion, emission,
spillage or gas pipeline rupture). |
In most instances, 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 material safety data sheets, information
and advice using global 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
ton of product transported, on the 2004 baseline, by July 2009. |
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| Climate change poses a significant challenge for
our business. |
We have a policy statement on greenhouse gas (GHG) emissions. A group-wide target
has been set with the aim of achieving at least a 10% reduction in GHG emissions per
ton of product, on the 2005 baseline, by July 2015. This reduction will be facilitated
by switching feedstock at new and existing facilities and improving more energy- and
carbon-efficient technologies. New coal-to-liquids (CTL) and gas-to-liquids (GTL)
plants will be designed to reducing CO2 emissions and allowing for CO2 capture. We
have the opportunity to make significant savings by energy efficiency improvement
and to use carbon credits. We have recently registered a Clean Development
Mechanism (CDM) project for the reduction of nitrous oxide emissions from our
Sasol Nitro operations in South Africa, which will reduce emissions equivalent to
about one million tonnes of carbon dioxide per annum. Other projects - including
potential CDM projects, are under way that will result in GHG emissions reductions. |
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Changes in environmental laws (especially air,
water and waste),
resulting in higher costs of
compliance. |
In South Africa, a new Air Quality Act has been promulgated, bringing South Africa
into line with international requirements for air emissions. Minimum requirements
based on World Bank Group standards or local legislation (whichever is the more
stringent) have been adopted for new projects and existing facilities have prepared
plans to achieve these standards. We maintain working relationships with government
departments in the major regions in which we operate. |
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| The potential health impact of long-term exposure
to harmful chemicals. |
Operational personnel are subject to annual medical evaluations and where the risks
cannot be entirely eliminated, employees are provided with personal protective equipment
and necessary training. A group-wide target has been set of achieving at least a 50%
reduction in the emission of certain volatile organic compounds (VOCs), by July 2015. |
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| 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 to enable
further improvements. |
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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 and to compliance with the EU legislation
on the Registration, Evaluation, and Authorisation of Chemicals (REACH). The
impact of other countries' chemicals legislation is assessed when new regulations
are proposed. |
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| Availability of skills and competence to design,
construct, operate and maintain plants. |
Programmes are being developed to upgrade the professional and artisan training
programmes 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. |
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| Natural disasters and epidemics or pandemics
(eg SARS and avian influenza). |
Business units review existing business continuity planning in anticipation of threats
of various sorts. Probability and potential to disrupt business are key parameters. |
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| 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 wellcharacterised
during the due diligence process, with relatively low residual risk.
Ongoing work is being done to remediate contaminated land throughout our South
African operations. Our goal is to prevent future contamination and address all
historical issues. |
