OUR GOVERNANCE AND FRAMEWORK We have a single-tier Board system consisting of an appropriate level of independence and diversity of thought and background in its composition to enable it to make decisions in the best interests of the Company and all shareholders. The Board is supported by CoSec who ensures that board processes and regulatory requirements are followed. Read more about our Board on page 79 of our 2022 Annual Report The RSC assists the Board in its risk governance responsibility, overseeing the responsibilities delegated to the senior management. This ensures that there is a sound system of controls in place for identifying and managing risks to safeguard stakeholder interests and the Group’s assets. It also oversees sustainability matters, including those related to climate change. In addition, significant risk and control issues are communicated to the Board, and remedial actions are taken promptly to minimise lapses. The RSC is supported on risk related matters by the R&A function which in turn liaises with Risk Champions appointed by the respective business areas. Read more about our Risk and Sustainability Committee on page 96 of our 2022 Annual Report The Group’s R&A function is integral to ensuring that ST Engineering manages its key risks well, complies with legal and regulatory requirements where it operates, and has the appropriate governance and controls in place. This is facilitated by a regulatory compliance framework and policies to ensure adherence to all applicable regulations and laws in the jurisdictions that we operate in. Our policies include but are not limited to: • Code of Business Conduct and Ethics • Gifts and Hospitality Policy • Export Control Policy • Whistle-Blowing Policy The Group Head, R&A reports to the Group Chief Financial Officer. The R&A function provides leadership in the implementation of a group-wide ERM framework and ensures the continued effectiveness of relevant policies and procedures in all our business units. Read more about our Risk and Assurance function on page 96 of our 2022 Annual Report The CSA framework is designed to reinforce control ownership and awareness of key risks throughout the Group. The primary objective of CSA is to identify weaknesses on internal controls and facilitate the formulation of action plans to address any lapses in a timely manner. The Board receives, at regular intervals, updates from the Board Committees on the key business risks, the material controls to manage these risks, and the Internal Audit (IA) reports on the operational effectiveness of material controls. The Group IA function is headed by the Group Head Internal Audit who reports directly to the Audit Committee (AC). The IA function examines and evaluates the adequacy and effectiveness of the Group’s governance, risk management and internal controls. The Group Head Internal Audit operates independently and has the right to audit the ERM framework. GROUP RISK & COMPLIANCE TRAINING PROGRAMME Building our competencies – Expanded library of topics in line with evolving regulatory and risk landscape – Customised content with business-centric examples – Roll-out and communication of Risk Appetite Statements (RAS) to raise awareness • Staff circular • RAS videos • RAS digital posters Broadening Knowledge – Courses translated in ten local languages Localising Content for Global Audience 01 ST Engineering Code Business Conduct & Ethics 02 Fraud, Bribery & Corruption Bribery, Corruption, Fraud, COI, Gifts & Hospitality, Managing Third Parties 03 Regulatory Compliance AML, Sanctions, Trade Compliance 04 Personal Data Protection PDPA, GDPR, IGDPA Deepening Business Acumen Driving Tone from the Top Refer to Annual Report 2022 Read more about our Control Self-Assessment and our Internal Audit function on page 101 of our 2022 Annual Report OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE INDEX 71
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