Growing Together In 2022, we have successfully initiated strategic engagement programs with several local SMEs in Singapore. These suppliers were selected for their good performance and track record with ST Engineering. To support their growth, we assisted them in linking up to industry partners and expanding the scope of their capabilities where relevant. After discussions on requirements and prototyping, we were able to leverage and build up their existing capabilities to support our requirements and new projects across the Group. These collaborations not only facilitated the growth of the SMEs but also had the added benefit of improving our supply chain resiliency by localising a significant package of work. We identify sustainability risks through the use of an accredited third-party tool to screen new and existing suppliers for ESG violations. In 2022, we expanded our ESG screening criteria to include topics such as human rights, genocide, war crimes and environmental violations. We implemented the same ESG-criteria and standardised processes in Singapore, as well as in more than 20 international business entities and subsidiaries. Suppliers that have been identified in our screening process as having ESG risks or who do not meet our expectations will be further reviewed, investigated and determined if corrective actions can or need to be taken. We will reevaluate our business relationship with a supplier if they are unwilling to comply with our Supplier Code of Conduct, violate our ESG criteria or are unresponsive in implementing corrective actions highlighted during the screening process. In 2022, none of our suppliers were identified as having significant negative ESG impact. Of the suppliers that were assessed for compliance to our Supplier Code of Conduct, none required corrective action plans. We Partner with Our Suppliers for Growth We engage suppliers through our supplier management programmes and maintain close relationships. We also believe in tandem growth with our suppliers and aim to procure locally where possible. Furthermore, we continuously collaborate and engage with local SMEs to expand their capabilities. Value of Purchases from SMEs in Singapore $350m ECONOMIC RESPONSIBLE & RESILIENT SUPPLY CHAIN This continuous engagement ensures that our suppliers are in turn, able to support the Group’s growth in technology, product capability and competitiveness. 34 ST ENGINEERING SUSTAINABILITY REPORT 2022
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