2022 MATERIALITY REVIEW PROCESS It is important to first understand the context of our businesses and our ecosystem. We do this by considering the industry domains that the Group operates in, which includes but are not restricted to, Aerospace and Defence, Maritime, Information and Communication Technologies, Transportation and Smart Cities. Additionally, we consider our six material stakeholders as well as the sustainability context of our entities, focusing on those in which we have operational control. Based on our organisation’s business and sustainability context, we set about identifying actual and potential impacts. We made reference to GRI standards, and identified these impacts through our internal assessment and by referencing disclosure standards such as SASB – Defence and Aerospace standards, SGX Core ESG Metrics and TCFD recommendations. The requirements from these standards give us an idea of the typical impact that an organisation like ours can expect to have. The initial process led us to identify a preliminary list of 42 topics over four broad areas (Economic, Environmental, Social and Governance) that impact or may impact others based on our business activities. We do this by considering their significance (likelihood and severity). Through a combination of surveys and interviews, we prioritised each topic by engaging with relevant stakeholders such as our employees, managers, senior management and our customers. A topic was considered significant if more than 75% of our stakeholders agreed that it was important to the Group. This threshold resulted in a shortlist of 23 topics, that were further grouped and distilled into 10 material factors. Through the review, we identified synergies between four of our previous material factors: Economic Performance, Productivity, Green Products and Solutions, and Quality. These have been regrouped into: 1. Economic Performance & Productivity 2. Sustainable Quality Products & Solutions Additionally, two new material factors were identified: 1. Technology & Innovation 2. Cybersecurity & Data Protection We will continue to monitor topics that are not defined as material but might become more important moving forward. MATERIALITY MATRIX The responses from our survey also enabled us to quantify the relative importance of each material factor to the Group and our stakeholders. The result was the Group’s Materiality Matrix. HIGH • Cybersecurity & Data Protection • Ethical Business & Regulatory Compliance • Environmental Protection • Responsible & Resilient Supply Chain • Technology & Innovation • Total Workplace Safety & Health • Economic Performance & Productivity • People Excellence • Sustainable Quality Products & Solutions • Corporate Community Contributions LOW HIGH Importance to the Group Importance to Stakeholders X-axis: Importance to the Group: Includes current operations, business strategy Y-axis: Importance to Stakeholders: Includes our six stakeholder groups GROUP'S MATERIALITY MATRIX OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE INDEX 15
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