SOCIAL ST Engineering has an extensive and extremely diverse supply chain. We buy goods and services to support our manufacturing, systems integration, MRO operations and services offerings in the aerospace, maritime and transport domains. We had 9,700 active suppliers supporting our Singapore operations in 2021 alone. Despite the complexity of our global supply chains, we embarked on a journey to better steward our partnerships with our suppliers. We believe that collaborating and engaging with socially- and environmentally-conscious suppliers will mitigate a significant proportion of our ESG risks. In 2021, we obtained an acknowledgement to adhere to our Vendor Code of Conduct from 100% of our strategic suppliers supporting our Singapore operations. We also started screening all new suppliers supporting Singapore operations on environment- and reputationrelated risks. Suppliers not meeting expectations must submit their recovery action plans and are further assessed before they are accepted. We also seek to support local SMEs where possible -- for example, we spent $330m with local SMEs supporting our Singapore operations in 2021. We will continue to strengthen our supply chain resilience by rolling out our procurement sustainability roadmap globally. We will build a firm foundation through setting guiding principles and standards for responsible procurement, and implement standards that are put into practice. We will constantly review them and obtain feedback from our global operations. Over the next three years, our goals include: • Conducting surveys and consolidating feedback on our Global Procurement Policy and Vendor Code of Conduct; • Getting acknowledgment of Vendor Code of Conduct from our strategic suppliers globally; and • Implementing environmental screening for all new suppliers globally. We aim to promote inclusive, ethical and sustainable procurement practices. We recognise that sustainable procurement helps us manage risks, improve efficiencies and reduce costs. To that end, we actively manage relationships with our suppliers to meet the needs of our businesses and deliver long-term value. We also seek to maximise social and economic benefits, while minimising damage to the environment and health. → → Acknowledgment of ST Engineering’s Vendor Code of Conduct by our strategic suppliers → Added environmental risks as a new supplier screening criteria for our Singapore operations WHAT WE ACHIEVED IN 2021 RESPONSIBLE PROCUREMENT 42 ST ENGINEERING SUSTAINABILITY REPORT 2021 OVERVIEW OUR SUSTAINABILITY APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE AWARDS INDEX
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