Governance

Disclose the organization’s governance around climate-related risks and opportunities.

Responsibility for sustainability lies with Rajita D’Souza, President, Human Resources and Corporate Social Responsibility, who chairs our Sustainability Council. Strategic sustainability updates and performance are reviewed by our President and CEO at quarterly executive committee meetings.
Our President and CEO regularly updates our Supervisory Board on our sustainability roadmap, risks and opportunities, including climate-related risks, as well as our sustainability strategy and performance.
At the end of 2021, our Supervisory Board decided to create a dedicated Sustainability Committee. Operational in 2022, its mission is to supervise, monitor and advise on the Company's sustainability strategy, targets, goals and overall sustainability performance including climate-related risks and opportunities.

Strategy

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.

We are proactively addressing the transition to a lower-carbon economy. In this context, we are in the process of further identifying and assessing policy, legal, technology, and market transition risks. Simultaneously, we are actively investing in researching new products to help our customers develop new energy saving applications, transforming risk into opportunity.

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks.

Company-level sustainability risks are addressed by our Enterprise Risk Management program, which is aligned with ISO 31000. This is complemented by further ad-hoc analyses and studies, in particular at site-level. In 2021, one such specific science-based study conducted by an external party allowed us to assess current and future climate-related risks which are embedded into our site-level risk assessments. Our environmental and resilience teams are working closely together and with other corporate and site experts to address physical risks resulting from climate change and feed site-level improvement, adaptation, and mitigation plans.

Metrics and targets

Disclosure of the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

ST follows the GHG Protocol for managing and reporting its GHG emissions.
Our roadmap to carbon neutrality includes two specific targets validated by the Science Based Targets initiative and in compliance with the 1.5°C scenario defined at the Paris COP21: 50% reduction of direct and indirect emissions compared to 2018 by 2025, and the sourcing of 100% renewable energy by 2027.
As an intermediate product manufacturer, we enable the manufacturing of low‐carbon technologies and products that aim at reducing GHG emissions. 37% of our revenues derive from products that aim at contributing to climate change mitigation.