TCFD index
The following index provides information and links to ST’s disclosures on climate-related risks and opportunities, as recommended by the TCFD framework.
Governance
| TCFD recommended disclosure and location | ST description | |
|
Recommended disclosure Disclose the organization’s governance around climate-related risks and opportunities. Disclosure location Our approach to the environment Supervisory Board on investors.st.com Sustainability Committee Charter on investors.st.com |
The Managing Board is responsible for directing our sustainability roadmap, and the Supervisory Board is responsible for overseeing it, considering both risk and opportunity. The Executive Committee holds quarterly meetings attended by our President and CEO, Presidents, and Executive Vice Presidents to review sustainability performance and targets. Our dedicated Sustainability Committee supports and advises the Supervisory Board with sustainability strategy, goals, and performance including climate-related risks and opportunities. Our executive 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. Organization and site Sustainability Champions implement programs at operational levels. |
Strategy
| TCFD recommended disclosure and location | ST description | |
|
Recommended disclosure 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. Disclosure location 2023 Annual report (Form 20-F) at investors.st.com (page 23) |
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
| TCFD recommended disclosure and location | ST description | |
|
Recommended disclosure Disclose how the organization identifies, assesses, and manages climate-related risks. Disclosure location |
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 2023, we commissioned an update of the science-based study from AXA Climate to assess the current and future climate risks on our 155 most critical locations (ST and partner sites in 25 countries). In addition to these global analyses, we also carry out site-specific studies on natural hazards, according to local conditions. Our various climate-related analyses inform our site-level business interruption risk assessments and business impact analyses, as well as our site resilience index. Ultimately, they feed into our regularly updated improvement, mitigation, and adaptation plans, helping us address environmental and resilience issues in the medium to long term. |
Metrics and targets
| TCFD recommended disclosure and location | ST description | |
|
Recommended disclosure Disclosure of the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. Disclosure location |
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: 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. Our activities which aim at contributing to climate change mitigation and climate change adaptation, are the manufacturing of electronic components that enable other sustainable economic activities and applications.For the financial year 2023, the proportion of turnover from products associated with Taxonomy-aligned economic activities reached 12% compared to 9% in 2022. |