ST Engineering
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Economic Performance & Productivity
- Technology & Innovation
- Responsible & Resilient Supply Chain
- Environmental Protection
- Sustainable Quality Products & Solutions
- People Excellence
- Total Workplace Safety & Health
- Corporate Community Contributions
- Ethical Business & Regulatory Compliance
- Cybersecurity & Data Protection
Environmental Achievements
- Reduced absolute GHG emissions by 37% compared to 2010 baseline.
- Increased renewable energy share in Singapore operations from 8% to 13% of total electricity used.
- Achieved a waste recycling rate of 75% in Singapore operations.
- Reduced emissions by at least 80 tCO2e/year by implementing a smart building management system in Singapore.
Social Achievements
- Launched a 24-hour mental support helpline for employees in Singapore.
- Contributed close to $2.9m to community causes.
- Average training hours per employee: 22.5 hours.
- No cases of discrimination lodged.
Governance Achievements
- Published first TCFD analysis.
- Updated Enterprise Risk Management (ERM) framework to incorporate climate-related considerations.
- Launched initiative to enhance monitoring of emerging risks.
- Zero substantiated cases of bribery and corruption.
- Zero significant regulatory non-compliances.
Climate Goals & Targets
- Net zero emissions (target year not specified).
- Halve absolute Scope 1 and 2 GHG emissions by 2030 (2010 baseline).
- Increase sustainability-linked revenue to more than $3 billion by 2026.
- Reduce water usage intensity in Singapore operations by 15% by 2025 (2015 baseline).
Environmental Challenges
- Potential impact of carbon tax and costs passed through suppliers.
- Shifts in demand and innovation within industries.
- Impact on supply chain from climate change and other macro trends (geopolitical tensions, pandemic, inflation, energy costs).
- A fatal accident occurred in December 2022.
Mitigation Strategies
- Monitoring carbon price and sector-specific regulations.
- Tracking sectoral structural shifts and investing in climate-related business and technology opportunities.
- Reviewing climate risks in the broader supply chain and addressing them through sustainability initiatives.
- Implemented a group-wide Safety Time-Out, reviewed material handling operations, intensified safety assessments, and emphasized workplace safety.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- ESG criteria in screening of new suppliers
- Incorporation of Supplier Code of Conduct into purchase orders (Singapore operations)
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- Extreme weather events
- Increasing temperatures
Transition Risks
- Regulatory changes
- Market shifts
- Rising cost of carbon
Opportunities
- Energy management and efficiency
- Recycling and reuse
- Technology-enabled carbon verification solutions
- Sustainable Aviation Fuel (SAF) adoption
- Circular economy businesses (P2F conversions)
- Materials recycling and reuse
Reporting Standards
Frameworks Used: GRI Standards, SGX Listing Rules 711A, 711B and Practice Note 7.6, SASB Aerospace and Defence standards, TCFD recommendations, UNGC
Certifications: ISO 14001 (Singapore entities), ISO 45001 (Singapore entities), ISO 9001 (majority of operations) or equivalent, AS 9100D (relevant business units)
Third-party Assurance: LRQA Limited (GHG emissions data for Singapore entities)
UN Sustainable Development Goals
- Goal 8: Decent Work and Economic Growth
- Goal 9: Industry, Innovation and Infrastructure
- Goal 11: Sustainable Cities and Communities
- Goal 12: Responsible Consumption and Production
- Goal 13: Climate Action
- Goal 16: Peace, Justice and Strong Institutions
The report details how ST Engineering's initiatives contribute to these goals through various programs and operations.
Sustainable Products & Innovation
- Airbitat Data Centre Cooling System
- Carbon Prospecting Dashboard
- P2F Conversions
- Ship Conversions
- Integrated Waste and Water Treatment Solutions
- Smart City solutions
- Electric and Autonomous Vehicles
Awards & Recognition
- Dow Jones Sustainability Asia Pacific Index
- iEdge SG ESG Transparency Index
- iEdge SG ESG Leaders Index
- WSH Innovation Awards (Singapore)
- Food For Neighbour’s Community Champion
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Economic Performance & Productivity
- Technology & Innovation
- Responsible & Resilient Supply Chain
- Environmental Protection
- Sustainable Quality Products & Solutions
- People Excellence
- Total Workplace Safety & Health
- Corporate Community Contributions
- Ethical Business & Regulatory Compliance
- Cybersecurity & Data Protection
Environmental Achievements
- Reduced absolute Scope 1 and Scope 2 GHG emissions by 36% over 2010 base year
- 12% of electricity consumption from global operations derived from renewable energy
- Recycled 67% of 20,916 tonnes of waste generated in Singapore operations
- Reduced energy consumption by 9% in Belgium laboratories over nine months through CI initiatives
Social Achievements
- Zero fatalities in operations
- Lowered major injuries year-on-year
- Launched Group’s DEI commitment statement
- Launched series of upskilling and retraining programmes for employees
- Finalised first Collective Agreement with STESU in Singapore
- Contributed $2.3m to community causes
Governance Achievements
- Zero substantiated cases of bribery and corruption
- Established a supply chain resilience framework
- Incorporated ESG criteria into suppliers’ tender evaluation
- Formalised the Emerging Risk Management Framework
Climate Goals & Targets
- Net zero emissions (long-term goal mentioned, specific year not stated)
- Halve absolute Scope 1 and Scope 2 GHG emissions by 2030 compared to 2010
- Increase sustainability-linked revenue to more than $3 billion by 2026
- Continue to increase year-on-year planned productivity savings
- Improve RFR and RSR by 5%
- Enhance and fine tune data collection processes
Environmental Challenges
- Supply chain disruptions due to geopolitical tensions and climate change
- Climate change related physical and transition risks
- Cybersecurity threats
Mitigation Strategies
- Developed alternative sourcing strategies and a supply chain resilience framework
- Implemented an internal shadow carbon price on major capital expenditure
- Established roadmaps for development of product carbon footprint
- Strengthened ERM framework to incorporate climate-related considerations
- Launched Emerging Risk Management Framework
- Implemented a multi-layered security framework and regular cybersecurity training
Supply Chain Management
Supplier Audits: Regular quality audits and ESG questionnaires
Responsible Procurement
- Supplier Code of Conduct
- ESG assessment as part of tender evaluation criteria
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Energy management
- Composites recycling and applications
- Technology-enabled carbon verification solutions
Reporting Standards
Frameworks Used: GRI Standards, SASB Standards – Aerospace and Defence, TCFD recommendations, UNGC
Certifications: ISO 14001, ISO 45001, ISO 9001
Third-party Assurance: Lloyd’s Register Quality Assurance Ltd (for Singapore entities’ GHG emissions)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- AGIL® Intelligent Traffic Management Systems
- AGIL® Smart Water Solutions
- P2F conversions
- AUTONOMAST™
- ACCESS expandable cabin lavatory solution
- 8520C E-Paver
Awards & Recognition
- Community Chest Awards – Charity Platinum Award (Fifth Consecutive Year)
- MRO Asia Pacific Awards 2023 – Sustainability Initiative of the Year
- National Environment Agency Energy Efficiency National Partnership Award for Excellence in Energy, Greenhouse Gas (GHG) Management (Honourable Mention)
- Duke Energy’s Business Energy Excellence Award (LeeBoy)