In assessing materiality, ST Engineering considers factors that impact our businesses and our stakeholders, from both the 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.

ST Engineering has 10 material factors across 4 pillars of sustainability – economic, environmental, social and governance.



Economic Performance & Productivity

Why it is material: Inclusive growth and productive value creation for our stakeholders are key to our long-term viability.

Commitment: We are committed to delivering a sustainable and balanced triple bottom line of “People, Planet, Profit”.

Governance and Framework: 

Our strategic planning community reviews the Group’s strategy in the context of global trends and developments. We focus on operational excellence to ensure that we continue to add value to our stakeholders and have a positive impact on our communities. Productivity efforts are coordinated by the Group Continuous Improvement Office.


Maintaining a Culture of Continuous Improvement

  • Helps improve our processes which allows us to improve our productivity, protect our environment and enhance our economic performance

Digitalisation and Automation

  • Helps reduce lead time, allow real time data monitoring and anomaly identification to predict potential problems

Contributing to Inclusive Growth and Value Creation

  • Contributing to the local economy and developing local workforce and companies through knowledge transfer


Environmental Protection

Why it is material: Climate change is an issue of urgency and importance. A low carbon business strategy is not only good for the environment, but also enables us to better respond to climate change related regulations and price volatilities of hydrocarbon resources.

Commitment: We are committed to a pathway towards net zero and target to halve our absolute Scope 1 and 2 absolute emissions by 2030 compared to a 2010 base year. We strive to optimise use of resources such as water and energy, minimise waste and pollution, and be part of the circular economy.

Governance and Framework: Our environmental protection efforts are overseen by OEST – Environment team. The team supports the OESC Chairman who reports to the OESC Executive Sponsor. The OESC Executive Sponsor is currently our President, Commercial Aerospace who is a member of the Group EXCO.


Shaping Our Culture

  • We believe it is critical to cultivate an environmentally conscious culture and help shape our employees habits

Doing Our Part

  • We adopt various carbon reduction initiatives to reduce our carbon footprint
  • We use water efficiently and continue to pursue initiatives to optimise our water consumption
  • We manage waste and effluent in accordance with local laws and regulations
  • We strive to be a good neighbour and mitigate noise generated by our operations

Guided by Global Best Practices and Local Laws and Regulations

  • We have robust environmental management systems that are based on well-established international standards e.g. ISO 14001
  • We are working towards getting all our global units externally verified against ISO 14064-1

We take guidance from reputable sources

  • Our sources include:
Information Sources
Density of Aviation Kerosene Chevron
Acetylene Emission Factor Acetylene Emission Factor
Singapore Grid Electricity Emission Factor Energy Market Authority - Singapore
Density of Motor Gasoline and Diesel The Engineering Toolbox
Emission factors and Net Calorific Values (NCV) for Aviation Gasoline, Motor Gasoline, Diesel, LPG and CNG 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume
Density of Natural Gas The Engineering ToolBox
Global Warming Potential Values GHG Protocol


People Excellence

Why it is material: We are only as strong as our people. With a capable, motivated and agile workforce, we are able to strengthen our talent pipeline to pursue sustainable growth.

Commitment: We are committed to investing in people development and building a steady pipeline of STEM talent to help us achieve our aspiration of becoming a global technology, defence and engineering powerhouse.

Governance and Framework: 

  • The Group Chief Human Resources Officer and the HR leadership team oversee the policies and facilitate the engagement on all people issues across the Group.
  • The Group Chief Human Resources Officer reports directly to the Group President & CEO. He works closely with the Board, the EXCO and senior management to advise them on global best practices and the implementation of the Group’s people policies.
  • Our Group Company Training Committee includes participation from STESU and provides skills upgrading and retraining programmes for our employees.
  • Our Engineering Competency Management Framework identifies key competencies of various engineering domains, benchmarks existing technical capability and identifies areas for further development. This will facilitate stronger engineering career pathways in the Group.
  • Our Compensation and Benefits Framework is reported to the Board’s Executive Resource and Compensation Committee. The Executive Resource and Compensation Committee has access to consultants to advise on market trends, and compensation and benefits matters. We also work closely with our employee unions on compensation and benefits issues. 



  • We attract and nurture talent with a focus on engaging, assessing and hiring diverse and qualified candidates


  • We take care of our people
  • We invest in their development


  • We build a passionate and engaged workforce
  • We leverage diversity, equity and inclusion
  • We do not condone discrimination or harassment
  • We reward performance


Ethical Business & Regulatory Compliance

Why it is material: Good governance refers to having the appropriate people, policies and processes to manage the business and affairs of the company to enhance long-term stakeholder value whilst upholding high standards of compliance and ethical business practices.

Commitment: We are committed to conducting our business in a responsible manner, and comply with all applicable laws and regulations including export control, data privacy, trade sanctions and embargoes.

Governance and Framework: The Risk and Assurance (R&A) function oversees matters relating to governance, risk and compliance. It has put in place a regulatory compliance framework to continually train our global workforce on our Code of Business Conduct and Ethics. The department also works with relevant functions and operations to strengthen compliance.


Our Leaders Keep Abreast of Best Practices and Key Risk Trends

  • Regular training to enhance collective knowledge and skills
  • Regular updates to GSBC and formulation of action plans to address macro-economic risks, opportunities and threats to the Group where we operate in

We Are Guided by Our Code of Business Conduct and Ethics

  • Forms the foundation of the Group’s commitment to ethical business conduct and regulatory compliance

We Have Zero Tolerance for Fraud and Corrupt Practices

  • Reinforced by our detailed policies and compliance procedures

We Comply with All Applicable Export Control Regimes

  • Complies with all applicable laws, regulations, trade sanctions and embargoes
  • Group Export Control Policy is applicable to all our businesses
  • Adopts a risk-based approach to monitor transactions

We Empower our Employees to Uphold Business Ethics and Integrity

  • The Group has detailed policies, training and compliance procedures for our employees
  • Whistleblowing channels have been established for our employees and other stakeholders