Through the above framework, we: • Refine our Global Procurement Policy to enable effective and efficient procuring processes • Uphold our Vendor Code of Conduct • Enhance our systems and processes for better supplier management, including the use of recognised third party platforms to carry out independent checks on suppliers • Measure and review the performance of our suppliers for continual improvement or remedial action, including blacklisting them from future business as appropriate • Work with our suppliers to improve their sustainability performance and those of their suppliers Read our Vendor Code of Conduct Supply Chain Management ST Engineering's supply chain is diverse, mostly due to the range of businesses, as well as the multiple geographies we operate in. Singapore operations had over 9,700 unique suppliers in 2021 alone. Of these, 75% are based in Singapore, 16% in Europe and North America and the remaining 9% in other parts of the world. SOCIAL → Responsible Procurement We engage suppliers through our vendor management programmes and maintain a close relationship. To communicate our business and ESG requirements, the Vendor Code of Conduct is progressively being included as part of Purchase Order terms and conditions. Suppliers are expected to adhere to it or we may disengage from them if they are either unwilling to do so or unresponsive with respect to implementing corrective action plans. We adopt various sourcing strategies, which include the use of weighted criteria for tender contracts. This ensures that suppliers are assessed fairly both technically and commercially. For new suppliers, we actively screen each supplier against a defined set of ESG criteria including checking for reputation and negative feedback in the public domain, prior to establishing a business relationship with them. Conflict Minerals Management We do not procure conflict minerals. Our company’s offerings are typically at systems-level, and we procure finished electronics products. When we do buy electronics components, we mostly do so at sub-system level, and from reputable contract manufacturers. We expect these suppliers to have conflict minerals policies for their own supply chain. OVERVIEW OF ST ENGINEERING GROUP SUPPLY CHAIN Aerospace Urban Solutions Land Systems Marine Digital Systems & Cyber TYPE OF GOODS & SERVICES PROCURED Aircraft airframes, engines, parts and components Electronic and electrical products, equipment, hardware, parts and components Vehicle engines, transmissions, electronics, electrical sub-systems, tyres, parts and components Marine equipment, hardware, parts and components Electronic and electrical products, hardware, parts and components Engineering services and on-wing support Communications equipment, hardware, parts and components Castings, forgings, extruded parts Navigation, communication and automation equipment and software Communication products, hardware, parts and components Materials and production consumables, including chemicals ICT Infrastructure and systems, hardware, software and services Materials: Metals, rubber, plastics, chemicals, etc. ICT Infrastructure hardware and systems, software and services Aviation fuel, oil, lubricants Vehicle fuel, oil and lubricants Marine fuel, oil and lubricants Cybersecurity products, hardware, software and services Fabrication and assembly services Facilities spares and maintenance services Misc industrial tools and equipment Safety equipment Manpower services and subcontractors Enterprise IT equipment, software and services Office supplies Professional services 45 ST ENGINEERING SUSTAINABILITY REPORT 2021 OVERVIEW OUR SUSTAINABILITY APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE AWARDS INDEX
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