Material Factors
In assessing materiality, ST Engineering considers factors that impact our businesses and our stakeholders, from both the financial and non-financial perspectives. Our key stakeholders include customers, employees and other workers, local communities, suppliers and collaborators, shareholders and investors, and regulators and governments.
ST Engineering has 10 material factors across 4 pillars of sustainability – economic, environmental, social and governance.
Economic
Technology & Innovation
Why it is material: Our ability to harness disruptive technology and to direct our engineering expertise towards building innovative products and solutions allows new business growth and differentiates us from our competitors.
Commitment: We are committed to improving lives, and making the world more secure and sustainable through technology and innovation.
Governance and Framework: Our efforts to harness advanced technology and promote innovation that supports business growth are guided by the Board, particularly through its Research, Innovation, Technology and Enterprise (RITE) Committee.
The Innovation and Technology Committee comprising senior management representation from Group Technology Office, Group Engineering Centre and Group Strategy and Sustainability Office, provides guidance and support to the technology, engineering and strategic planning leaders of each business area.
Approach:
We Recognise the Importance of R&D
- Believe in focused R&D investment that is in line with the strategy and product roadmaps that we have chartered for business growth
Our R&D Efforts are Driven and Coordinated
- R&D investments are identified by each business area to complement its business strategy, product focus and to develop its technological leadership
We Drive Synergy and Deepen Capability Building
- Focus on finding synergies in our existing products and services and enhancing our capabilities in key technological areas
We Broaden Our Outreach to Leverage External Capabilities
- Leverage on external capabilities through Open Lab, Corporate Venture Capital, Research Translation @ ST Engineering and Industry Collaboration to complement our in-house R&D
Technology & Innovation
Why it is material: Our ability to harness disruptive technology and to direct our engineering expertise towards building innovative products and solutions allows new business growth and differentiates us from our competitors.
Commitment: We are committed to improving lives, and making the world more secure and sustainable through technology and innovation.
Governance and Framework: Our efforts to harness advanced technology and promote innovation that supports business growth are guided by the Board, particularly through its Research, Innovation, Technology and Enterprise (RITE) Committee.
The Innovation and Technology Committee comprising senior management representation from Group Technology Office, Group Engineering Centre and Group Strategy and Sustainability Office, provides guidance and support to the technology, engineering and strategic planning leaders of each business area.
Approach:
We Recognise the Importance of R&D
- Believe in focused R&D investment that is in line with the strategy and product roadmaps that we have chartered for business growth
Our R&D Efforts are Driven and Coordinated
- R&D investments are identified by each business area to complement its business strategy, product focus and to develop its technological leadership
We Drive Synergy and Deepen Capability Building
- Focus on finding synergies in our existing products and services and enhancing our capabilities in key technological areas
We Broaden Our Outreach to Leverage External Capabilities
- Leverage on external capabilities through Open Lab, Corporate Venture Capital, Research Translation @ ST Engineering and Industry Collaboration to complement our in-house R&D
Environmental
Sustainable Quality Products & Solutions
Why it is material: Delivering sustainable quality products and solutions is crucial to eliminating defects and waste, improving product safety and reliability, and maintaining the trust of our customers especially in the world’s transit to a low-carbon economy.
Commitment: We are committed to timely delivery, responsive support, and high quality and safety standards.
Governance and Framework: Our quality efforts are coordinated by the OEST Quality Committee.
Approach:
We Promote a Quality Culture
- Quality training modules are integrated into our new employee onboarding programme
- We established a System Safety Community of Practice (COP) to aggregate System Safety expertise across Business Areas.
We Adopt Global Quality Standards
- Majority of our operations are certified to ISO9001 Quality Management systems or equivalent
- Our business adopts various ISO standards in accordance with respective business or industry specialisations where these standards apply
We Offer a Suite of Sustainable Products and Solutions
- We consider ecological impact and apply circular economy principles in quality product development
- Our products, services and solutions focus on three key themes: reducing GHG emissions, solving urban and city issues, and the circular economy
Sustainable Quality Products & Solutions
Why it is material: Delivering sustainable quality products and solutions is crucial to eliminating defects and waste, improving product safety and reliability, and maintaining the trust of our customers especially in the world’s transit to a low-carbon economy.
Commitment: We are committed to timely delivery, responsive support, and high quality and safety standards.
Governance and Framework: Our quality efforts are coordinated by the OEST Quality Committee.
Approach:
We Promote a Quality Culture
- Quality training modules are integrated into our new employee onboarding programme
- We established a System Safety Community of Practice (COP) to aggregate System Safety expertise across Business Areas.
We Adopt Global Quality Standards
- Majority of our operations are certified to ISO9001 Quality Management systems or equivalent
- Our business adopts various ISO standards in accordance with respective business or industry specialisations where these standards apply
We Offer a Suite of Sustainable Products and Solutions
- We consider ecological impact and apply circular economy principles in quality product development
- Our products, services and solutions focus on three key themes: reducing GHG emissions, solving urban and city issues, and the circular economy
Social
People Excellence
Why it is material: We are only as strong as our people. With a capable, motivated and agile workforce, we are able to strengthen our talent pipeline to pursue sustainable growth.
Commitment: We are committed to investing in people development and building a steady pipeline of STEM talent to help us achieve our aspiration of becoming a global technology, defence and engineering powerhouse.
Governance and Framework:
- The Group Chief Human Resources Officer and the HR leadership team oversee the policies and facilitate the engagement on all people issues across the Group.
- The Group Chief Human Resources Officer reports directly to the Group President & CEO. He works closely with the Board, the EXCO and senior management to advise them on global best practices and the implementation of the Group’s people policies.
- Our Group Company Training Committee includes participation from STESU and provides skills upgrading and retraining programmes for our employees.
- Our Engineering Competency Management Framework identifies key competencies of various engineering domains, benchmarks existing technical capability and identifies areas for further development. This will facilitate stronger engineering career pathways in the Group.
- Our Compensation and Benefits Framework is reported to the Board’s Executive Resource and Compensation Committee. The Executive Resource and Compensation Committee has access to consultants to advise on market trends, and compensation and benefits matters. We also work closely with our employee unions on compensation and benefits issues.
Approach:
Attract
- We attract and nurture talent by with a focus on engaging, assessing and hiring diverse and qualified candidates
Nurture
- We take care of our people
- We invest in their development
Retain
- We build a passionate and engaged workforce
- We leverage diversity, equity and inclusion
- We do not condone discrimination or harassment
- We reward performance
Corporate Community Contributions
Why it is material: Our lives and business are deeply intertwined with the communities we operate in. We strive to do good as we do well, so that we flourish and grow together.
Commitment: We are committed to being a good corporate citizen in the places where we operate.
Governance and Framework: Corporate community contributions are coordinated by the Corporate Social Responsibility Committee. We measure, report and communicate our corporate community investments and philanthropy efforts.
Approach:
Our outreach efforts are guided by our CSR framework and our three focus pillars:
- Improving lives through charitable gifts
- Empowering lives through education
- Transforming lives through technology and innovation
People Excellence
Why it is material: We are only as strong as our people. With a capable, motivated and agile workforce, we are able to strengthen our talent pipeline to pursue sustainable growth.
Commitment: We are committed to investing in people development and building a steady pipeline of STEM talent to help us achieve our aspiration of becoming a global technology, defence and engineering powerhouse.
Governance and Framework:
- The Group Chief Human Resources Officer and the HR leadership team oversee the policies and facilitate the engagement on all people issues across the Group.
- The Group Chief Human Resources Officer reports directly to the Group President & CEO. He works closely with the Board, the EXCO and senior management to advise them on global best practices and the implementation of the Group’s people policies.
- Our Group Company Training Committee includes participation from STESU and provides skills upgrading and retraining programmes for our employees.
- Our Engineering Competency Management Framework identifies key competencies of various engineering domains, benchmarks existing technical capability and identifies areas for further development. This will facilitate stronger engineering career pathways in the Group.
- Our Compensation and Benefits Framework is reported to the Board’s Executive Resource and Compensation Committee. The Executive Resource and Compensation Committee has access to consultants to advise on market trends, and compensation and benefits matters. We also work closely with our employee unions on compensation and benefits issues.
Approach:
Attract
- We attract and nurture talent by with a focus on engaging, assessing and hiring diverse and qualified candidates
Nurture
- We take care of our people
- We invest in their development
Retain
- We build a passionate and engaged workforce
- We leverage diversity, equity and inclusion
- We do not condone discrimination or harassment
- We reward performance
Corporate Community Contributions
Why it is material: Our lives and business are deeply intertwined with the communities we operate in. We strive to do good as we do well, so that we flourish and grow together.
Commitment: We are committed to being a good corporate citizen in the places where we operate.
Governance and Framework: Corporate community contributions are coordinated by the Corporate Social Responsibility Committee. We measure, report and communicate our corporate community investments and philanthropy efforts.
Approach:
Our outreach efforts are guided by our CSR framework and our three focus pillars:
- Improving lives through charitable gifts
- Empowering lives through education
- Transforming lives through technology and innovation
Governance
Cybersecurity & Data Protection
Why it is material: Cybersecurity is an enabler for our businesses. Digital technology and highly connected economies and businesses bring new vulnerabilities from a proliferation of cyber threats.
Commitment: We are committed to protecting our data and systems including those entrusted to us by adopting best practices in cybersecurity and complying with all applicable data protection laws and regulations in the countries we operate in.
Governance and Framework: Cybersecurity in the Group is overseen by the Group Cybersecurity Committee and supported by the Group Information Security Office (GISO) and chaired by the Group Chief Information Security Officer.
The Group Data Governance Committee focuses on data governance and protection and comprises representatives from our business areas and Group Headquarters (HQ) functions.
Approach:
We focus on “People, Process and Technology”
- Regular training for our employees on cybersecurity threats, data privacy and handling, relevant regulations, and best practices
- Conducting regular reviews of our digital footprints and carrying out regular cybersecurity exercises
- Implement a multi-layered security framework to ensure there are relevant preventive, detective and recovery measures.
We Prepare for Contingencies
- Established Group escalation process in event of a cyber and/or data breach
- Implemented disaster recovery system in place across our core business operations that is designed to enable the recovery of data and the continuation of vital IT infrastructure
- Continuously review and enhance measures
Cybersecurity & Data Protection
Why it is material: Cybersecurity is an enabler for our businesses. Digital technology and highly connected economies and businesses bring new vulnerabilities from a proliferation of cyber threats.
Commitment: We are committed to protecting our data and systems including those entrusted to us by adopting best practices in cybersecurity and complying with all applicable data protection laws and regulations in the countries we operate in.
Governance and Framework: Cybersecurity in the Group is overseen by the Group Cybersecurity Committee and supported by the Group Information Security Office (GISO) and chaired by the Group Chief Information Security Officer.
The Group Data Governance Committee focuses on data governance and protection and comprises representatives from our business areas and Group Headquarters (HQ) functions.
Approach:
We focus on “People, Process and Technology”
- Regular training for our employees on cybersecurity threats, data privacy and handling, relevant regulations, and best practices
- Conducting regular reviews of our digital footprints and carrying out regular cybersecurity exercises
- Implement a multi-layered security framework to ensure there are relevant preventive, detective and recovery measures.
We Prepare for Contingencies
- Established Group escalation process in event of a cyber and/or data breach
- Implemented disaster recovery system in place across our core business operations that is designed to enable the recovery of data and the continuation of vital IT infrastructure
- Continuously review and enhance measures
