MATERIALITY ASSESSMENT OUR SUSTAINABILITY APPROACH In assessing materiality, ST Engineering considers factors that impact our businesses and our stakeholders from both financial and non-financial perspectives. Our key stakeholders include customers, employees and other workers, local communities, suppliers and collaborators, shareholders and investors, and regulators and governments. Our 10 material factors cover four broad areas of Economic, Environmental, Social and Governance. MATERIALITY REVIEW PROCESS Building on ST Engineering’s past materiality reviews, our stakeholders accounted for our unique business and sustainability contexts and collectively reaffirmed the significance and relevance of our 10 material topics and their corresponding actual and potential impacts. We performed internal assessments, benchmarked against external standards and disclosure requirements, such as the GRI Standards, SASB – Defence and Aerospace standards, SGX Core ESG Metrics and TCFD recommendations, and reviewed the significance (likelihood and severity) of the topics identified. This process was conducted for material factors across four broad areas: Economic, Environmental, Social, and Governance, in collaboration with the Board and senior management. Considering the evolving compliance requirements, ST Engineering introduced the concept of double materiality through a management workshop this year, in anticipation of the European Union’s Corporate Sustainability Reporting Directive (CSRD). Double materiality considers key sustainability-related impacts, as well as risks and opportunities that are material to organisations based on their scale, scope, irremediable character and likelihood of occurrence, from non-financial and financial lenses. Going forward, we will monitor the developments in sustainability reporting standards and the need for the Group to perform any double materiality assessment. Read more about our Materiality Review Process on our website 10 ST ENGINEERING | SUSTAINABILITY REPORT 2024
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