RESPONSIBLE & RESILIENT SUPPLY CHAIN ECONOMIC Our supply chain is integral to supporting our diverse range of businesses and extends across multiple geographies. This diversity is essential for maintaining ST Engineering’s competitiveness and resilience. ST Engineering is committed to partnering with our suppliers, to establish a responsible and resilient supply chain to meet our business needs. We will continue to strengthen our procurement process in relation to human rights. In 2024, ST Engineering conducted a workshop on the topic of human rights with the participation from our leadership team, to raise awareness on the evolving regulations and develop a strategic roadmap. In partnership with various internal and external stakeholders, we are also continuously building upon existing policies and governance frameworks to enhance our business and human rights programme. OUR APPROACH We Do Not Procure Conflict Minerals Our company’s offerings are typically at the systems-level and we procure finished electronics products. When we do buy electronics components, we mostly do so at subsystem level, and from reputable contract manufacturers. Our Supplier Code of Conduct requires our suppliers to determine if their products contain conflict minerals. Suppliers are to implement supply chain due diligence processes to identify links to conflict mineral sources and support efforts to eradicate the use of conflict minerals. We Conduct Multi-Faceted Evaluations We adopt various sourcing strategies, which include the use of weighted criteria for tender contracts. This ensures that suppliers are assessed fairly, both technically and commercially. ESG assessment criteria has been included as part of our overall tender evaluation criteria, to reinforce our ESG expectations to our suppliers and encourage them to advance their sustainability journey. Our Supplier Code of Conduct communicates our business and ESG expectations to our suppliers. Our suppliers are expected to adhere to this code and failure to do so will trigger further actions. We review and update our Supplier Code of Conduct regularly to reflect industry ESG practices. Read our Supplier Code of Conduct on our website Our supplier screening process includes ESG screening criteria. This enhances our ability to identify suppliers with sustainability risks that include, but are not limited to, bribery and corruption cases, human rights violations, environmental violations and sanctions. We identify these risks using an accredited third-party tool to screen both new and existing suppliers for ESG violations. Furthermore, an ESG questionnaire has been introduced to complement our screening process for suppliers to selfdeclare their ESG status. 22 ST ENGINEERING | SUSTAINABILITY REPORT 2024
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