The effects of climate change have become increasingly pronounced. ST Engineering is aligned with our stakeholders' efforts to act responsibly and combat climate change. This includes implementing TCFD recommendations. In 2021, we joined the Singapore Low Carbon Network (SLCN) as an inaugural member. The SLCN aims to advance the sharing of best practices and insights on key carbon measurement and decarbonisation topics. Governance The Board provides oversight on all sustainability matters, including climate-related risks and opportunities. Briefing sessions on climate-related topics are conducted periodically for the Board, while detailed discussions on actions to be taken, are carried out by the Board’s Risk and Sustainability Committee. The EXCO is accountable to the Board for the implementation of these climate-related strategies and directions. Business leaders at all levels are responsible for addressing the risks and opportunities in their respective business areas. Plans and actions needed are discussed at various management fora and incorporated into the strategic planning and annual budgeting processes. The Group Chief Strategy & Sustainability Officer assists the EXCO in ensuring that the impact of climate change is taken into consideration in all business strategies and plans. Various committees, working groups and focus teams across the Group and its business areas support the execution of these plans. In particular, the Operational Excellence Steering Committee (OESC), comprising the global operations leaders across all our business areas, is a key platform for integrating and executing these efforts. Strategy We identify sustainability-related risks and opportunities as part of our annual five-year strategic plan review. This is discussed and endorsed by the Board’s Strategy and Finance Committee, and forms the foundation for initiatives relating to climate change in subsequent years. Risk Management A preliminary Physical Climate Risk Assessment was carried out for our major operating sites across the world in 2021. An in-depth climate risk assessment for key vulnerable locations will follow in 2022. We will also be examining our transition risks as we move into low carbon products and operational processes, including more detailed studies on the supply chains of our business areas. Metrics & Targets We have identified relevant climate-related metrics and targets, and these are elaborated under the respective material ESG factors in this report. OUR SUSTAINABILITY APPROACH CLIMATE CHANGE 13 ST ENGINEERING SUSTAINABILITY REPORT 2021 OVERVIEW OUR SUSTAINABILITY APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE AWARDS INDEX
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