Dear shareholders, A PURPOSE-DRIVEN GROUP ST Engineering continues to harness technology and innovation to enable a more secure and sustainable world. We maintain our focus on long-term resilience and sustainable value creation for all our stakeholders, which includes our customers, employees, communities, shareholders, governments and suppliers. We now face many challenges from factors such as geopolitical tensions, extreme weather patterns, the pandemic and disruptions across industries. In our encounter with these difficulties, we have continued to step up efforts to integrate sustainability into our strategy and operations. DOING OUR PART 2022 was notable for several key milestones in our sustainability journey: Climate: We published our first TCFD analysis as part of this report. It highlights the risks and opportunities for the Group due to climate change and is aligned with the TCFD framework. The scenarios we worked through led us to the following conclusions: • The physical risk to our productive assets and our people is low. We have put in place a process to regularly review our facilities against extreme climate and weather events • We expect minimal impact on our business in the transition to a low carbon economy. We will continue to monitor emerging issues including the evolving regulatory and carbon tax environment • We updated our Enterprise Risk Management (ERM) framework to incorporate climate-related considerations and launched an initiative to enhance the monitoring of emerging risks and recommend actions on a proactive basis Emissions: We are on target to halve our absolute GHG emissions by 2030 compared to 2010, as we continue our journey alongside global efforts towards net zero. In our Singapore operations, we increased our renewable energy share from 8% to 13% of the total electricity used. Safety & Health: As part of our Total Workplace Safety & Health efforts, we launched a 24-hour mental support helpline for our employees in Singapore and raised awareness among our employees on the importance of their mental health. We are sad to report that a fatal accident occurred in December 2022. We implemented a groupwide Safety Time-Out across all MESSAGE FROM THE GROUP PRESIDENT & CEO OVERVIEW 06 ST ENGINEERING SUSTAINABILITY REPORT 2022
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