Strengthening our position as a credible stakeholder partner
Effective stakeholder engagement is fundamental to delivering our strategy
and creating value for all stakeholders.
WHY STAKEHOLDERS MATTER
Our success and the sustainability of our business
depends on the support of our stakeholders. The process
of protecting, creating and growing value is advanced
through our relationships with key stakeholders, making
it a business imperative to understand and be responsive
to their needs and interests.
OUR STAKEHOLDER APPROACH OBJECTIVES
Position Sasol to be
experienced as a credible
partner and build trust with all
Make meaningful socio-economic
impacts in the
countries and communities in
which we operate.
In South Africa, in an effort to build trust and win support, we conducted an external stakeholder perception audit and listening
excercise focusing on government, non-governmental organisations and fence-line communities. We used this feedback to map
a journey to 2022 and beyond to redefine our relationship goal.
Key factors that emerged:
Our stakeholders are diverse,
and localised solutions are
important to remain relevant
and have impact.
We need to focus on contributing towards
improving the quality of people’s lives,
primarily by enabling meaningful economic
participation, especially of fence-line
Good governance and leadership with integrity are important.
Our stakeholders are persons or groups who are directly or indirectly affected by our operations, as well as those who have
interests in our business and/or the ability to influence outcomes.
Sasol has a complex network of stakeholders, often with competing interests that include local communities, national, provincial
or local government authorities, politicians, religious leaders, civil society organisations and groups with special interests, the
academic community and media. In addition, they include employees, investors, suppliers, customers and business partners.
Our stakeholders include the following:
We are determined to use the reach of our business to create opportunities in the areas where we operate.
Sasol's promise to society
We recognise that in today’s world,
stakeholder engagement is about working
collaboratively with stakeholders to find
solutions for more inclusive economies.
As a global firm with strong roots in South
Africa, our promise to society is that we will
seek to employ inclusive and sustainable
business practices that enable development
in the geographies and communities
where we operate. Our products touch
and enhance the quality of people’s lives
every day and we see great potential to do
more to enable economic development.
In addition, using our extensive value
chain, we commit ourselves to facilitating
inclusive and local supply chains, enabling
local economies and the development of
Our Response to our stakeholders priorities
Sasol has a number of fence-line communities globally. There are growing expectations
from communities that Sasol contributes to lowering unemployment and enabling
meaningful economic participation by creating opportunities in its value chain,
particularly in South Africa and Mozambique.
Community stakeholders have an increasingly important role, specifically in the
environmental space with the power to impact Sasol’s ability to do business.
A multi-pronged and multi-year, integrated response to community development aimed
at enabling economic access is in place. This response consists of the following:
Effective Social Investment programme as indicated below.
Community engagement – Proactive multi-stakeholder engagements to agree on
development priorities. Engagements to build the knowledge base of our stakeholders
on top priority issues.
In addition, an integrated, organisation-wide programme is in place to enhance Sasol's
reputation with all stakeholders, comprising:
Delivery on our commitments;
Changes to Sasol‘s culture and ways of working as it relates to stakeholders;
Measurement and reporting on reputation performances; and
Ensuring Sasol‘s value proposition to its stakeholders is developed and that we are
embedded in conversations on topics that matter to stakeholders.
2018 SOCIAL INVESTMENT HIGHLIGHTS
through the Sasol bursary programme
During 2018 we increased the total Group Social Investment spend globally by 21% since 2017 to a total spend of R817,7 million
Increased access to HIV/Aids HEALTHCARE facilities in Southern Africa to over 380 000 community members
Increased the Sasol Siyakha Fund loan book to R301,7 million and loans were granted to 91 SMMEs since 2008
As in previous years, our 2018 Social Investment spend IN South Africa, exceeded the international best practice of 1% of net profit after tax.
Increased reach of our STEM education support programmes in South Africa and Mozambique to 6 million learners, students and teachers.
Enabled a step change in our early childhood development (ECD) programme.
Over 2 800 Sasol employees are registered in Sasol for Good employee volunteering activities, benefiting 220 000
people and reaching 497 causes.
2018 ENGAGEMENT WITH OUR STAKEHOLDERS
Aligned with our strategy, we continue engaging our stakeholders through a multi-stakeholder
Our 2018 stakeholder engagement plan was informed by Sasol and stakeholders’ priority issues. We
responded to stakeholder concerns while also progressing strategic business issues, and working to
proactively build more trust-based relationships. We engaged with communities, environmental non-governmental
organisations, Parliamentary Portfolio Committees, ministers, government officials,
the media, as well as Sasol employees.
Quarterly, we track the commitments we have made to stakeholders, specifically in South Africa
and Mozambique. This allows management to ensure that we continue to progress in meeting these
commitments. Most of our initiatives to meet these commitments are on track.
INCREASING LOCAL CONTENT AND ADDRESSING SOCIAL CHALLENGES
Our preferential procurement practices and local content requirement prerequisites in
the areas we operate provide us with an opportunity to drive local requirements and,
in South Africa, provide a specific focus on social and economic transformation within
our sphere of influence.
MANAGING OUR SUPPLY CHAIN EFFECTIVELY
Our Supply Chain function (Supply Chain) is responsible
for ensuring the sustainable supply of utilities, goods,
services and products for our business. The Supplier
Management process facilitates ethical, fair and equal
treatment of suppliers and the continuous improvement of
our integrated value chain to deliver optimum value to the
benefit of Sasol.
Supply Chain has implemented the Supply Chain Governance
Framework, which has a specific focus on supplier
management. On an annual basis, all our supply chain
employees are required to declare their support and commit
to diligent behaviour to prevent any form of bribery and
corruption. Employees are also trained regularly to ensure
the understanding and implementation of anti-bribery and
corruption (ABAC) practices. We have also implemented
processes for ABAC practices in our dealings with suppliers.
To deliver greater value to our communities, our small
business development programmes have been relocated to
our Supplier Management and Transformation department
within Supply Chain in order to ensure integration with
the broader supply chain and grow our preferential
procurement base, rather than dealing with them as an
aspect of Corporate Social Investment.
ENSURING ECONOMIC TRANSFORMATION
The economic transformation strategy is focusing on
procurement practices towards local content requirements
in South Africa, and provides a valuable opportunity to drive
social and economic transformation. We have a deliberate
focus on economic transformation in South Africa in order
to provide meaningful and sustainable mainstream business
opportunities for previously disadvantaged businesses
and communities. We do this with the intention of creating
and utilising an equitably representative supplier base,
particularly in the regions in which we operate. We have
made good progress with regards to Broad-Based Black
Economic Empowerment (B-BBEE).
We have implemented a fence-line community supplier
strategy to accelerate the achievement of our preferential
procurement targets towards exempted micro-enterprises
(EMEs) and qualifying small enterprises (QSEs). Furthermore,
our enterprise and supplier development teams will
continue to provide new and existing suppliers with
targeted interventions and financial support aimed at
enhancing their business and improving the skills level of
work with us.
To accelerate the
THE ASSOCIATED RESULT
2018 HIGHLIGHTS AT A GLANCE
Supplier technical and
safety audits conducted
based on standard Sasol
Suppliers have been
trained on the Supplier
Code of Ethics and ABAC
expenditure in the
Sasolburg and Secunda
regions up from R2,6 billion
A large number of opportunities have been identified in the economic transformation environment and to date 30 contractshave been assigned to suppliers in the different regions.
Managing our suppliers effectively
In line with our ABAC policy, a set of commitments, principles
and standards have been implemented as part of the Sasol
supplier application and verification process. These will be
fully implemented over a 36-month period to ensure ABAC
compliance as per the Foreign Corrupt Practices Act (FCPA),
UK Bribery Act and the UNGC Guidelines.
We have implemented a process, which screens existing
and new suppliers to ensure that they are legally compliant
in terms of the Sanction Screening Legislation. Screenings
are also being performed on supply purchase orders and
deliveries from suppliers. Further, we have engaged with
suppliers who deviate from, or do not support, our supplier
code of ethics. Our aim is to achieve a commitment to
acceptable levels of ethical behaviour and suppliers are
being trained on the specific requirements contained in the
Suppliers need to be Occupational Health and Safety
Assessment Series (OHSAS) certified and compliance with
prescribed environmental standards is a requirement in
the supplier accreditation protocol. Suppliers are required
to have procedures and records in place for recording and
investigating non-conformances to indicate immediate
actions taken to avoid problems pending further
During the supplier application process, all suppliers need to
agree that they will comply with the minimum standard set
for supplier safety management. Suppliers agreed to the SHE
requirements as part of their contractual commitment. ESG
compliance audits are conducted on an ad hoc basis with our
Further we conducted a supplier risk analysis to identify
potential risks to reliable supply and preventative mitigation
actions have been implemented in areas of high risk exposure.
A number of risks and mitigation actions have been addressed
to ensure continued and uninterrupted support to our business.