ST Engineering Sustainability Report 2020

Good corporate governance is the foundation for long-term value creation of the Group. This Report sets out ST Engineering’s corporate governance processes, practices and activities in 2020 with specific reference to the guidelines of the Singapore Code of Corporate Governance 2018 (the Code). The Board is pleased to report that the Company has complied in all material aspects with the principles, provisions and recommendations set out in the Code. CORPORATE GOVERNANCE BOARD MATTERS The Board’s Conduct of its Affairs (Principle 1) The Board is accountable to shareholders for overseeing the effective management of the Company. To this end, the Board relies on the integrity, commitment, skills and due diligence of its management, its external advisors and auditors. In addition to its statutory responsibilities, the Board reserves the following key matters for its decision: • setting the Group’s strategic objectives and ensuring that decisions made are consistent with these objectives; • approval of annual budgets, major funding proposals, investment and divestment proposals in accordance with the approved delegation of authority framework; • appointment of the Group President & Chief Executive Officer (Group President & CEO), Board succession and appointments on Board committees; • appointment of key management executives and succession planning as an ongoing process; • review of the risk management framework and sustainability performance; and • approval of the unaudited quarterly and audited full-year results prior to their release. In the discharge of its functions, the Board is supported by six Board Committees to which it delegates specific areas of responsibilities for reviewing and decision making. The Group President & CEO, Vincent Chong, is accountable to the Board. He is supported by the Management Committee* which consists of Group Chief Financial Officer (Group CFO), Group Chief Operating Officer and Presidents of the four business sectors. Director Induction, Training/Development For the onboarding of a Board member, a formal letter is sent to a Director upon his/her appointment setting out his/her statutory obligations, duties and responsibilities as a Director. He/She is also given key information of the Group and the Company, as well as the terms of reference for the respective Board Committees. An induction programme is organised for a new Director on the strategic direction, sustainability efforts and performance of the Group as well as his/her duties and obligations under the statutory compliance and corporate governance framework. Facility visits are also arranged for new Directors to enable them to develop a good understanding of the Group’s business, operations and the respective key management. The Board is routinely updated on the relevant laws, SGX continuing listing obligations and accounting standards requiring compliance, and their implications to the Group, so as to enable each Director to properly discharge his/her duties as a Board member and Board Committee member. / ST ENG I NEER I NG 104 * Group Executive Committee (EXCO) replaces Management Committee with effect 1 January 2021. Refer to EXCO profiles on pages 24 and 25.