Our Economic Performance Leads to Inclusive Growth and Value Creation The Group’s economic performance is material to our sustainability goals. We contribute economically to the communities we operate in through local procurement, direct and indirect employment, dividends paid to shareholders, taxes paid to governments, and investment in community programmes. Apart from our financial contributions, we also develop innovation capabilities, transfer know-how and technology to local SMEs, and provide internship and training opportunities. OUR GOVERNANCE AND FRAMEWORK The management of the Group’s productivity efforts begins from our top management and extends to employees throughout the company. The Group CI Office provides a structured and dedicated approach to enhance CI activities. It also strengthens the Group’s CI framework and concept by reviewing and enhancing our CI toolkit, and by training our employees to equip them with a strong CI foundation. The Group CI Office is overseen by the executive sponsor of OESC and consists of CI Practitioners who work closely with the CI Councils of our business areas to provide on-site deployment guidance. Our Group CI and Innovation framework was set up to focus on CI across our businesses and focuses on six drivers: • Enabling a productive work environment • Encouraging innovation and the use of technology • Developing people and enhancing skills • Organising work systems and reviewing work processes • Adopting best practices through networking • Measuring what matters We embed CI activities into our day-to-day operations to drive productivity. Key actions undertaken include: • Setting and tracking productivity targets • Training our staff on CI tools such as 5S, Define Investigate Verify Ensure (DIVE) methodology, Kaizen, Quick Changeover, Pareto Analysis, Standard Work, Total Productive Maintenance and Value Stream Mapping • Pursuing the use of new technology including automation, data analytics and digitisation such as Robotic Process Automation • Organising the ST Engineering Best-of-Best CI Award to promote and recognise teams that demonstrate excellence in creating value and raising productivity • Reviewing our structure, systems and processes periodically to achieve higher efficiency and effectiveness The Group’s economic performance is driven by the EXCO and is overseen by the Board. The Board meets quarterly to review our financial performance. The SFC reviews the Group’s strategy in the evolving context of global trends and developments annually. They are supported by our corporate functions, including Group Finance and GSSO. Direct Economic Value Generated and Distributed Group Economic Contribution ($m) Bought-in material and services 5,254 Employee wages, salaries and benefits 2,591 Dividends and interest paid 823 Government taxes and levies 79 Total 8,747 OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE INDEX 27
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