ECONOMIC RESPONSIBLE & RESILIENT SUPPLY CHAIN We Foster Strong Relationships to Deliver Quality Products ST Engineering expects our suppliers to deliver products and services that meet or exceed our quality standards and contractual requirements. Due to the Group’s diverse business portfolio, individual business areas have quality departments that enforce industry regulations and ensure that quality standards meet contractual requirements. Where required, quality audits are performed to ensure our suppliers meet expectations. We Set Ourselves Up for Resiliency To better respond to supply chain disruptions, we established a Supply Chain Resilience framework. This enables our procurement and business operations to adopt a consistent and standardised group wide approach to assess supply chain risks. Various risk factors such as geopolitical, climate, financial and supplier risks are examined to determine strategies that minimise such risks. Risk Visibility & Identification Risk Qualification Risk Mitigation Risk Monitoring & Recovery • Identify key supply chain risks • Conduct workshop with key stakeholders • Identify top supply chain risk scenario • Review supplier base, supplier criticality and assess impact • Determine plans & mitigation strategies • Obtain management’s approval • Develop risk monitoring capacity • Improve processes to support recovery SUPPLY CHAIN RESILIENCE FRAMEWORK 24 ST ENGINEERING | SUSTAINABILITY REPORT 2024
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