Governance

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

Our Supervisory Board and Managing Board are respectively responsible for overseeing and directing our sustainability roadmap, considering both risk and opportunity. Our dedicated Sustainability Committee supports and advises the Supervisory Board with sustainability strategy, goals, and performance including climate-related risks and opportunities.
Our Executive Committee and Sustainability Council, validate our sustainability strategy and maintain business alignment as well as ensuring the adequate means are in place to deploy the relevant corporate programs, including our carbon neutrality program.
Our Corporate Sustainability function is responsible for developing our sustainability strategy and programs. These are then implemented at operational levels by central functions and local sustainability committees who develop a roadmap according to their specificities and needs.

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 our corporate strategy.
Based on the risk management process described below, we act on the most material risks and opportunities such as climate change mitigation and adaptation, water challenges and positive impact opportunities both in communities where we operate and markets we serve.
Simultaneously, we are actively investing in developing and launching new products to help our customers implement new energy-saving and substantial GHG reduction applications.

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. We have deployed a process to continuously identify and assess policy, legal, technology, and market transition risks, across the short-, medium- and long-terms. In 2022, a specific science-based study provided by an external party has been fully deployed to main ST and outsourcing sites. This allows us to assess the current climate risks and associated natural hazards which are therefore embedded into our site-level risk assessments. This is complemented by further ad-hoc analyses and studies, in particular at site-level. Our environmental and resilience teams work closely together to address physical risks resulting from climate change that are either chronic (induced by longer-term shifts in climate patterns) or acute (event-driven).

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 on which we are fully certified ISO 14064.
Our roadmap to carbon neutrality by 2027 includes two 2025 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, and the sourcing of 80% renewable energy.
As an intermediate product manufacturer, we enable the manufacturing of low-carbon technologies and products that aim at reducing GHG emissions. In 2022, 38% of our revenues derive from products that aim at substantial contribution to climate change mitigation.