Sasol Sustainability Report 2018

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. 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. MANAGING OUR SUPPLY CHAIN EFFECTIVELY 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 suppliers. ENSURING ECONOMIC TRANSFORMATION THE ASSOCIATED RESULT OUR AIM New skills Industrialisation Spend efficiently Employee/ community wellness Regulatory compliance Risk mitigation (safety, financial, ect.) Direct job creation Community infrastructure development Better the lives of the communities in which we operate in Enable Sasol's business SHARED VALUE To accelerate the development of small transformed businesses. To create meaningful opportunities for transformed businesses to work with us. SAFETY, SOCIAL AND ETHICS (CONTINUED) 16 Sasol Sustainability Report 2018