Materiality Assessment

Materiality Assessment

Materiality Assessment Journey


In 2019, the Group’s material ESG factors were reorganised into 10 areas for greater focus and clarity. They were mapped into Environmental, Social and Governance categories and aligned with the UN SDGs.



We conducted a review of our material ESG factors according to GRI 3: Material Topics 2021 guidelines. We identified synergies between four of our previous material factors and regrouped them into:

  1. Economic Performance & Productivity
  2. Sustainable Quality Products & Solutions

Additionally, two new material factors were identified:

  1. Technology & Innovation
  2. Cybersecurity & Data Protection
We also reclassified the ten material factors into Economic, Environmental, Social and Governance pillars.

Materiality Review Process

This process is performed regularly, and the Group has identified 10 material factors spanning four broad areas of Economic, Environmental, Social and Governance. There are no changes to our material factors from the previous reporting period.


Industry Domains and Stakeholders

It is important to first understand the context of our businesses and our ecosystem. We do this by considering the industry domains that the Group operates in, which includes but are not restricted to, Aerospace and Defence, Maritime, Information and Communication Technologies, Transportation and Smart Cities.

Additionally, we consider our six material stakeholders as well as the sustainability context of our entities, focusing on those in which we have operational control.

Materiality Matrix

Materiality sets an important foundation for the Group’s Sustainability Approach. Assessing our material areas of focus in sustainability enables us to optimise sustainable value for all our stakeholders, which is essential to the Group’s long-term success.

ST Engineering identifies and evaluates material factors in sustainability that impact our businesses and our stakeholders from both financial and non-financial perspectives. Our six material stakeholders include customers, employees and other workers, local communities, suppliers and collaborators, shareholders and investors, and regulators and governments.

Responses from our stakeholder surveys and interviews has enabled us to quantify the relative importance of each material factor to the Group and our stakeholders. The result was the following Materiality Matrix:

[Click the image to enlarge]