A WHOLE OF ST ENGINEERING EFFORT ST Engineering recognises the impact of climate change. We support the efforts to address it both globally and locally where we operate. In our journey towards net zero, we do our part to reduce GHG emissions and adopt environmental-friendly practices in our business, while encouraging our employees to inculcate sustainable habits in their daily lives. We develop products and solutions that will help our customers reduce their carbon footprint, in their journey towards net zero. We agree that the recommendations of TCFD are useful for our stakeholders. Hence, we have aligned our disclosures with the TCFD framework. In 2021, we started our journey on TCFD by ensuring that the impact of climate change is taken into consideration in the strategies of each of our business areas. We also conducted a preliminary physical climate risk assessment for our major operating sites across the world. In 2022, with the support of consultants, we assessed key areas in our existing practices against TCFD disclosure requirements and their implications. A climate scenario analysis was then carried out for a material portion of our business. This was crucial in providing insights on the potential extent of climate-related risks to our business as well as the potential opportunities. We incorporated these considerations into our strategy, decision-making and ERM approach. Our future steps include continuous assessment of the physical and transition risks and opportunities for the rest of our global portfolio, developing mitigation plans, and defining strategic opportunities. This inaugural report addresses the disclosure recommendations of the four core elements of the TCFD framework. OUR GOVERNANCE: LEADERSHIP FROM THE TOP Strategies and actions to address climate change are directed at the highest levels in ST Engineering. Our sustainability governance structure includes the Board and its relevant committees, EXCO, GSBC, CCWC, and various working groups across our businesses and geographies. This ensures that climate-related risks and opportunities are effectively managed. The Board provides oversight on all sustainability matters, including climate-related risks and opportunities. Briefings and discussions on climate-related topics are conducted regularly at Board meetings, including those supported by external subject matter experts. CLIMATE CHANGE Legend: AC Audit Committee RSC Risk and Sustainability Committee SFC Strategy and Finance Committee EXCO Executive Committee GSBC Group Senior Business Council Business Area Technology and Innovation Communities Business Area Sustainability Focus Teams Board AC/RSC/SFC Group EXCO and GSBC Group Green Technology Task Force Group Climate Change Working Committee Group Strategy Community OUR SUSTAINABILITY APPROACH 18 ST ENGINEERING SUSTAINABILITY REPORT 2022
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