Each risk is explained in relation to why it is material to Sasol, and how we are managing it. Risk of increasing portfolio  exposure to high-risk countries.  This covers a broad range of risks  from those related to human rights  to the availability of reliable utilities  and infrastructure. Not succeeding with the  engineering, construction and  commissioning of new plants. Sasol’s growth ambitions depend mainly on the opportunity to commercialise its GTL and CTL  technologies across new frontiers. Most of the world’s available gas and coal reserves are in  developing countries, often in remote and underdeveloped locations. Sasol follows strict procedures for measuring country risks. We use our carefully formulated business  development and implementation model, the level of equity participation through joint ventures as  well as information from reputable rating agencies to assess country risk on a regular basis. Wherever  it operates, Sasol is guided by its values and code of ethics. We believe in business and social  partnerships, based on our South African experience. Sasol’s growth ambitions include a number of large projects that require significant technical skills,  as well as capital equipment and raw materials. The recession has led to some easing in the market  for construction talent, but critical skills needed to execute projects are still relatively scarce, putting  pressure on the cost of projects. Additionally, the prices of many key inputs, like steel, remain high. Sasol has a comprehensive plan to access, train and retain appropriate skills. We are broadening our  supply base, building relationships with new manufacturers of equipment in countries like India and  China. We regularly review international benchmark findings on project management and incorporate  into practice the learning from previous projects. We work to continuously optimise project design. To sustain Sasol’s business, the group understands the importance of creating a high-performance,  ethical, inclusive culture for all its employees. In this way we will be able to attract and retain the  skills we need. South Africa has various laws in place to meet the country’s transformation targets,  and which are required to obtain various licences, permits and mineral rights. Failure to meet these  may have material consequences for Sasol’s reputation, licence to trade and ability to attract and  retain skills. Five processes underpin Sasol’s success in delivering on its goal to develop the company’s culture  and meet its targets in South Africa for transformation. These are Values-driven Leadership, talent  management, employment equity, diversity management and compliance with the broad-based  black economic empowerment (BEE) scorecard. The Sasol BEE office coordinates activities to optimise  Sasol’s compliance with transformation requirements. The Sasol Inzalo BEE equity ownership  transaction was concluded in 2008, and our BEE focus also includes enterprise development  to support sustainable small businesses. Authorities globally are intensifying their efforts to identify and prosecute conduct that is in violation  of laws. In particular, they are focusing on anti-competitive behaviour, which can lead to fi nes, civil  claims and damages awards. Various jurisdictions have specialised legislation aimed at combating  corruption and companies found guilty of contraventions face fines and damage to their reputations.  Tax laws are becoming increasingly complex, as are sanctions against certain jurisdictions. Failure to deliver timeously on  cultural change initiatives and  transformation in South Africa. Non-compliance with applicable  laws, regulations and standards. A group legal compliance committee has been established and additional legal compliance employees  have been recruited. Regular legal compliance risk assessment workshops are held throughout the  group and specific compliance programmes are implemented. These include training in high-risk  legal compliance areas such as competition and anti-corruption. Sasol is setting up a public policy  and regulatory affairs department to focus on finding solutions to the key policy and regulatory challenges the group faces. annual review 2010 • our business •  principal risks 17 Mitigation: Context: Mitigation: Context: Mitigation: Context: Mitigation: Context: