(Name of Registrant)

WTC Schiphol Airport

Schiphol Boulevard 265

1118 BH Schiphol Airport

The Netherlands

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.

Enclosure: STMicroelectronics’ 2024 Dutch Statutory Annual Report, including the 2024 IFRS Statutory Accounts.

1.Message from our Managing Board on the financial year 2024

Dear Shareholder,

2024 turned out to be one of the most challenging years in recent memory for ST, particularly for Industrial and Automotive applications. The year was characterized by unexpectedly weaker end demand and higher levels of inventory. Coping with this reality, we elected to postpone our $20B+ revenue ambition plan to 2030 and set a new intermediate financial model for 2027/2028 at our Capital Markets Day last November. As we were managing this challenging business environment, we continued to focus on our long-term innovation strategy, advancing the development of new proprietary technologies and designing new products into our customers’ next generations of systems and devices.

In 2024, our net revenues decreased 23.2% to $13.27 billion, mainly driven by a strong decrease in Industrial and, to a lesser extent, in Automotive. In more detail, on a year-over-year basis, Industrial revenues decreased 49%, Automotive was down 14%, Personal Electronics declined 11% and Communications Equipment and Computer Peripherals were down 2%.

In Automotive, we continued to execute our strategy supporting the transition of the automotive industry to car electrification and digitalization. In electrification we won business with our power discrete and modules, both silicon and silicon carbide, as well as smart power technologies and smart fuse solutions.

With silicon carbide we had multiple high-value wins with both silicon carbide devices and modules for automotive customers. In China, which is the fastest growing market for electric vehicles, we have a very strong momentum in terms of design in activities and as of today we have more silicon carbide engagements with top Chinese car makers than any other suppliers. We also introduced our fourth generation of SiC MOSFET technology, bringing new benchmarks in power efficiency, power density and robustness.

We also saw continued design win momentum across within our automotive microcontrollers portfolio applications such as software-defined vehicle architectures and car electrification systems. Important trends here are the integration of multiple ECUs into a single more powerful unit and the zonal architecture approach. In ADAS, we worked closely with our long-time customer and partner Mobileye with a focus on their latest market introduction – the EyeQ6 family.

In Industrial, in power and energy management applications we had a broad range of design wins, including in data centers, EV charging stations, renewable energy systems, white goods, and factory automation. We introduced a wide range of new products, solutions and reference designs also including high-performance telecom applications and AI server power supply - an important growth opportunity around AI for ST. In embedded processing solutions we further strengthened STM32 microcontroller and microprocessor families and ecosystem introducing many new products and tools. A particular focus was on Edge AI enablement for our customers including making made our most powerful MCU series, the STM32N6, available for broad market adoption.

In Personal Electronics, we continued to be successful with our focused approach, through solid execution of engaged customer programs, securing sockets in flagship devices with differentiated products, and leveraging our broad portfolio to address high-volume applications.

In Communications Equipment our RF communication business delivered solid results. We continued to progress well with engaged customer programs in satellite and cellular communication infrastructure and received awards from a new player in the LEO satellite market.

We continued to invest in our global manufacturing infrastructure’s strategic initiatives. In May we announced the construction of a new high-volume 200mm silicon carbide manufacturing facility in Catania (Italy) to manufacture power devices and modules. Along with the SiC substrate manufacturing facility on the same site, these facilities will form ST’s silicon carbide campus, a fully vertically integrated manufacturing hub for SiC devices.

All our strategic manufacturing initiatives are aligned with our sustainability strategy and our commitment to sustainable manufacturing in terms of energy consumption, greenhouse gas emissions, air and water quality.

We made a number of significant changes in the way our Company is structured and operates during 2024.

In January, we announced the reorganization of our product groups into two groups split in four reportable segments, as well as the creation of a new application marketing organization by end market implemented across all regions within the existing sales and marketing organization.

In May, Jean-Marc Chery was reappointed as member and Chairman of the Managing Board for a three-year term to expire at the end of our 2027 AGM; and Lorenzo Grandi was appointed as member of the Managing Board for the same three-year term.

In October we announced the launch of a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm silicon and 200mm silicon carbide and resizing our global cost base. This program should result in strengthening our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027.

Our strategy remains based on three fundamentals. First, a value proposition for stakeholders focused on sustainable and profitable growth, providing differentiating enablers to customers and a strong commitment to sustainability.

Second, our global Integrated Device Manufacturer ("IDM") operational model, with highly-skilled employees, a wide range of capabilities in proprietary and innovative technology and IP design, product and solution development, and with advanced manufacturing (both in-house and with selected partners) providing us with a strong competitive advantage and supply chain resilience for our customers.

Third, three unchanged long-term trends acting as enablers for our industry: smarter mobility; better power and energy management; and the pervasion of cloud-connected and autonomous things.

These fundamentals continue to guide our market positioning and customer engagements, continuous and open innovation processes, product and IP design and technology R&D efforts and manufacturing investments.

Our objective is to restore profitability levels compatible with our model, while strengthening our strategic assets and continuing to invest in innovation to capture the revenues growth opportunities created by the long-term trends transforming the end-markets we address.

We stand by our conviction that, together with our customers, partners and employees, ST is a key enabler of the transformation of all industries towards a smarter, safer and more sustainable future.

2.Corporate overview

In this annual report, references to "we", "us", "our", "the Company", "our Company" and "ST" are to STMicroelectronics N.V., references to "ST Group Company" are to any of STMicroelectronics N.V.'s direct or indirect subsidiaries, and references to the "Group" or "ST Group" are to STMicroelectronics N.V. and its direct and indirect subsidiaries.

Certain industry-specific, accounting, legal, or otherwise commonly used defined terms included in this annual report are defined in the "Certain definitions" table included in Appendix 11.6., and in the "ST Policies" table included in Appendix 11.7. for ease of reference. Some defined terms included in the relevant Appendices have also been defined throughout the body of this document, as required for clarity.

STMicroelectronics N.V. was formed and incorporated in 1987 as a result of the combination of the semiconductor business of SGS Microelettronica (then owned by Società Finanziaria Telefonica (S.T.E.T.), an Italian corporation) and the non-military business of Thomson Semiconducteurs (then owned by the former Thomson-CSF, now Thales, a French corporation). We completed our initial public offering in December 1994 with simultaneous listings on the Bourse de Paris (now known as “Euronext Paris”) and the New York Stock Exchange. In 1998, we also listed our shares on the Borsa Italiana (the Italian stock exchange).

We operated as SGS-Thomson Microelectronics N.V. until May 1998, when we changed our name to STMicroelectronics N.V. We are organized under the laws of The Netherlands, with our corporate legal seat in Amsterdam, The Netherlands, and our head offices at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol, The Netherlands. Our telephone number there is +31-20-654-3210. Our headquarters and operational offices are managed through our wholly owned subsidiary, STMicroelectronics International N.V., and are located at 39 Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland. Our main telephone number there is +41-22-929-2929. Our agent for service of process in the United States related to our registration under the U.S. Securities Exchange Act of 1934, as amended, is Corporation Service Company (CSC), 80 State Street, Albany, New York, 12207. Our operations are also conducted through our various ST Group Companies, which are organized and operated according to the laws of their country of incorporation, and consolidated by STMicroelectronics N.V.

We are organized in a matrix structure with geographic regions interacting with product lines, both supported by shared technology and manufacturing operations and by central functions, designed to enable us to be closer to our customers and to facilitate communication among the research and development (“R&D”), production, marketing and sales organizations.

While STMicroelectronics N.V. is our parent company, we conduct our global business through STMicroelectronics International N.V. and also conduct our operations through service activities from our subsidiaries. We provide certain administrative, human resources, legal, treasury, strategy, manufacturing, marketing, insurance and other overhead services to our consolidated subsidiaries pursuant to service agreements for which we recover the cost.

Semiconductor devices are electronic components that serve as the building blocks inside electronic systems and equipment. Semiconductor devices, generally known as “chips” combine multiple transistors on a single piece of material to form a complete electronic circuit. With our portfolio of semiconductor products, we serve customers across the spectrum of electronics applications with innovative solutions.

We have a portfolio of power products and analog products, including sensors, signal channel devices and output power stages - discrete and/or integrated - as well as complete power management blocks. Our analog products, including both general purpose and application specific, can fulfill the needs of a wide range of designs and systems.

We also have digital products that are at the heart of electronics systems, including microcontrollers and microprocessors, ASICs and optical sensing solutions. Our full set of microcontrollers and microprocessors includes one of the industry’s broadest ranges of general-purpose devices serving all market segments, microprocessors addressing the industrial market, secure microcontrollers for mobile devices, wearables, banking, identification, industrial, automotive and Internet of Things (“IoT”) markets and a series of embedded processing solutions for our addressed end-markets (Automotive, Industrial, Personal Electronics, and Communications Equipment, Computers and Peripherals, each as defined below).

We are one of the leading suppliers and innovators in the domain of semiconductor devices dedicated to automotive applications. Our offer includes a wide range of products, covering systems and functions from powertrain, chassis and safety, to audio, infotainment and telematics, as well as body and convenience. We offer automotive microcontrollers as well as solutions for ADAS and we provide automotive-grade MEMS as well as imaging solutions, including wide bandgap devices for hybrid and electric vehicles. The products are designed and manufactured specifically for automotive applications and complemented by a large range of “automotive grade” standard products, both tested and guaranteed to perform under stringent automotive environmental conditions.

On top of the product design R&D spending, our principal investment and resource allocation decisions in the semiconductor business area are for expenditures on technology R&D as well as capital investments in front-end and back-end manufacturing facilities, which are planned at the corporate level; therefore, our product groups share common R&D for process technology and manufacturing capacity for some of their products.

As of December 31, 2024, our reportable segments were as follows:

•In our Analog, Power & Discrete, MEMS and Sensors ("APMS") product group:

oAnalog Products, MEMS and Sensors ("AM&S") segment, comprised of ST analog products, MEMS sensors and actuators, and optical sensing solutions.

oPower and Discrete products ("P&D") segment comprised of discrete and power transistor products.

•In our Microcontrollers, Digital ICs and RF products ("MDRF") product group:

oMicrocontrollers ("MCU") segment, comprised of general-purpose microcontrollers, secure and automotive microcontrollers, microprocessors and connected security products (including EEPROM).

oDigital ICs and RF products ("D&RF") segment, comprised of automotive ADAS, infotainment, RF and communication products.

Below is a description of our main categories of products as of December 31, 2024.

We develop a broad range of innovative smart power and analog ICs, comprising both application specific and general-purpose analog products. These serve a wide spectrum of markets and applications including automotive, smart grid, cloud computing, data servers, industrial automation, power conversion and personal electronics.

We are a leading supplier of analog semiconductors devices for automotive industry worldwide, enabling the electrification and digitalization of the car, and the pervasion of electronics in both traditional internal combustion engine vehicles as well as in electric cars, full or hybrid. Based on our proprietary BCD and VIPower technologies, we provide solutions for a range of car systems, such as battery management, traction engine, braking systems, airbag, door zone, e-fuse, and power management for ECUs.

In Industrial (as defined below) our product families include ASICs and ASSPs, covering motion control, power and energy management and factory automation. We continuously introduce new devices in our MasterGaN® and VIPerGaN families integrating a silicon driver and GaN power transistors in a single package. Our connectivity ICs range from wireline to wireless solutions. For wireline communication, we offer a complete family of transceivers compatible with different protocol standards used in the industry. Finally, we have a strong presence with our galvanic isolated gate drivers (also known as STGAP family) that are used both in industrial and automotive markets.

In Communications Equipment, Computers and Peripherals (as defined below) we serve our customers with power management solutions for data storage, as well as addressing the high power and high efficiency needs for servers and AI data centers.

In Personal Electronics (as defined below) we provide custom analog ICs, mainly power management ICs for battery powered devices. We deploy wireless charging solutions from low to high power across applications from smartphones to wearables, as well as display power management ICs and FingerTip touch screen controllers.

In General-Purpose Analog (as defined below) we have a wide product portfolio addressing all the market segments, spanning high-end analog front-end products, AC-DC and DC-DC converters, gate drivers for MOSFET, IGBT, SiC and GaN transistors, intelligent power switches, high and low side drivers, LED drivers, real-time clocks and timers, supervision and control ICs, as well as a comprehensive range of operational amplifiers (both low-voltage and high-voltage), comparators and current-sense amplifiers.

Our MEMS portfolio includes both sensors and actuators for a broad range of applications, including smartphones, personal devices, computers, automotive, industrial, healthcare and IoT.

MEMS sensors include motion MEMS (accelerometers, gyroscopes, magnetic sensors), environmental sensors (pressure, temperature and presence detection), biosensors and microphones. We offer a unique sensor portfolio, from discrete to fully integrated solutions, high performance sensor fusion to improve the accuracy of multi-axis sensor systems in order to enable highly-demanding applications, such as navigation and location-based services, optical image stabilization and high-level quality products. Our latest range of smart sensors includes machine learning and edge AI processing capabilities built into the sensor enabling ultra-low power gesture recognition and tracking applications.

MEMS actuators include: (i) thermal and piezoelectric actuators for 2D and 3D printing in consumer, commercial and industrial market applications and (ii) piezoelectric actuators for applications such as smartphone camera autofocus, MEMS loudspeakers and image projection.

We have a broad portfolio of optical sensing solutions based on our proprietary differentiated technologies such as FlightSense and BrightSense. These address various markets including 3D sensing for automotive applications such as in-cabin monitoring and occupant detection, as well as for industrial and consumer applications. Our optical sensing solutions are composed of both specialized components developed for dedicated customer systems; and full optical sense and illumination system solutions targeting multiple customers.

Our discrete and power transistors families include both power products and protection devices serving our end markets (Automotive, Industrial, Personal Electronics and Communications Equipment, and Computers and Peripherals, each as defined below).

Our leading-edge power technologies cater to both high-voltage and low-voltage applications. We combine a full range of packaging options with innovative die bonding technologies, utilizing both silicon and wide bandgap materials. Our portfolio includes silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules as well as a wide range of power bipolar transistors. We are expanding our offering based on wide bandgap materials with a full range of GaN-based power device solutions targeting a wide variety of applications.

Our portfolio of protection devices supports all industry requirements for electrical overstress and electrostatic surge protection, lightning surge protection and automotive protection. Our devices meet or exceed international protection standards for electrical hazards on electronics boards found in the demanding markets we serve.

Our general purpose microcontroller product portfolio largely contains families of products based on 32-bit ARM®-based Cortex®-M0, -M0+, -M3, -M4, -M33, -M55 and M7 with the ARM® TrustZone®. The STM32N6 MCU series introduced in December 2024 is ST’s most powerful to date, and the first to embed ST’s proprietary neural processing unit, the neural-ART accelerator, currently delivering 600 times more machine-learning performance than a high-end STM32 MCU.

For each product family, a broad selection of features is available with respect to microcontroller performance, ultra-low-power, memory size, peripherals, and packaging. Numerous dedicated families include features such as our TouchGFX advanced 3D graphics, dedicated peripherals for industrial motor controls, security features, and low-power wireless connectivity.

Our latest microprocessors product line targeting the industrial market features 64-bit processing and edge AI acceleration. Based on the Arm Cortex®-A35, these microprocessors run up to 1.5GHz, enhancing the main processing capability compared to first-generation devices. Additionally, they come with a dedicated Linux distribution.

The STM32 family based on the ARM® Cortex®-M and -A processors are designed to offer significant degrees of freedom to microcontroller and microprocessors users. The product range combines very high performance, real-time capabilities, digital signal processing, and low-power, low-voltage operation, while maintaining full integration and ease of development. We offer an unparalleled range of STM32 devices, accompanied by a vast choice of tools and software including support for industrial safety standard IEC 61508 SIL2/3, human machine interface.

We continued to strengthen our STM32 microcontroller ecosystem with various software releases and updates of STM32Cube, CubeMX and TouchGFX. We also introduced ST Edge AI suite, a comprehensive approach to help developers create AI for the tiny edge. This comprehensive portfolio makes our STM32 an ideal choice for enabling ever smarter objects for an increasingly broad range of applications.

We offer cutting-edge solutions for secure and connected applications. Security is particularly critical to near field communication ("NFC"), contactless and wired connectivity technologies that target payment, identification, access control and all secure transactions in mobile, industrial, consumer and automotive applications. Building upon our 30+ year experience in security, we offer one of the most ambitious and coherent security portfolios, with the right level of protection from a basic identification of objects (tags and secure tags) to the most advanced security with our certified secure microcontrollers.

Our well-defined system-level architecture enables us to match our security strategy with current and future threats, accelerating our pervasion in the security ecosystem. We offer security solutions for everybody, creating the opportunity to address customers for whom security is a must.

With the STSECURE and ST25 portfolio, we offer certified hardware and software solutions to answer the market demand in security and connectivity. In 2024, we delivered the industry’s first FIPS 140-3 certified TPM for computer, server, and embedded systems. We diversified our portfolio with the introduction of the ST25TA-E NFC tag IC to strengthen the security of digital product passports and blockchain-based applications by implementing state-of-the-art on-chip digital signature mechanism, TruST25™ Edge.

Our wide range of small density serial non-volatile memories has among the highest industry performance. The serial EEPROM family ranges from 1 Kbit to 32 Mbits and offers the most common serial interfaces to facilitate adoption: I²C, SPI and Microwire. In 2024, we introduced Page EEPROM with two-in-one memory, creating a hybrid memory for applications that face extreme size and power constraints. Our wide range of products are also automotive compliant. Very small package options are available for applications where space is critical, such as in camera modules for consumer and mobile devices.

Our automotive microcontroller portfolio supports ongoing transformation of the industry through electrification and digitalization of the car. We offer a complete portfolio of products able to address all the needs, from local actuation and smart sensing to high-performance real-time processing with cross functional integration across multiple application domains.

Our Stellar family is a scalable ARM-based hardware architecture supporting real-time virtualization of multi-ASIL ECUs. It features a rich set of IOs and peripherals, and offers a unique over-the-air update value proposition. This is made possible by leveraging our internally developed embedded non-volatile memory technology, built on 28nm FD-SOI technology. This is the industry’s first family of emerging technologies after eFlash, representing the most mature and smallest memory cell automotive-grade solution on the market. The Stellar family is optimized for electrification, including x-in-1 vehicle motion control computer, new vehicle architectures and safety MCUs for safety critical subsystems, such as ADAS, zone and body integration.

In 2024 we announced that we will build a new series in the STM32 family tailored for automotive. The STM32A will be designed for actuation at the very edge of the car network, such as car body control and smart sensor management, and will support ASIL B automotive safety level.

We offer RF, digital and mixed-signal ASICs, which are based on our proprietary FD-SOI, RF-SOI, and SiGe technologies, as well as foundry-based FinFET technologies, for satellite communications (satellites, ground stations, user antennas and terminals) as well as networking infrastructure.

We also use our proprietary FD-SOI, RF-SOI, and SiGe technologies to provide RF and mmWave components for terrestrial communication, based on our know-how in analog and digital beamforming design techniques, to address massive MIMO antenna and 60GHz very-short-range ultra-low-power multi-gigabit/second links.

We also address the fast-growing market of interconnect in data centers based on our SiGe and SiPho technologies.

We are a leading player in ADAS, dedicated to improving the passenger experience and helping to avoid or minimize the severity of traffic accidents. We manufacture cutting-edge ADAS SoCs and radar systems that assist drivers with basic - high volume ADAS to advanced hand-off functions such as autonomous lane changing, front/rear collision avoidance and traffic jam assistance, paving the way towards most advanced eye-off systems. Our ADAS products meet the most stringent quality criteria required for automotive applications guaranteeing a safer driving experience.

Our car infotainment portfolio includes comprehensive solutions for digital radios, audio amplification and positioning systems. With our continuous innovation, we are the leader in the audio infotainment market, with a wide range of power amplifiers meeting all the needs, from head units to premium audio, from telematics to AVAS.

The positioning portfolio includes families of SoC and RF solutions capable of receiving signals from different bands and multiple satellite constellations. These solutions are designed to enhance the accuracy of the user's position and ensure reliable, safe and secure position even under poor satellite visibility conditions.

ST is also a leading provider of radio solutions for automotive infotainment systems and offers digital and analog terrestrial and satellite receivers, as well as multi-standard ICs designed to deliver world-class performance and functionality.

3.Report of the Managing Board

In accordance with Dutch law, our management is entrusted to our managing board (our "Managing Board") under the supervision of our supervisory board (our "Supervisory Board"). Under our articles of association (the “Articles of Association”), the members of our Managing Board are appointed for a three-year term at our AGM, by a simple majority of the votes cast, provided quorum conditions are met, upon a non-binding proposal by our Supervisory Board, which term may be renewed one or more times. On May 22, 2024, our AGM was held (the "2024 AGM") and Mr. Jean-Marc Chery was reappointed as member of our Managing Board with the function of President and Chief Executive Officer (our "President and Chief Executive Officer" or "CEO"), for a three-year term expiring at our 2027 AGM. At our 2024 AGM Mr. Lorenzo Grandi was appointed as member of the Managing Board with the function of President and Chief Financial Officer (our "President and Chief Financial Officer" or "CFO"), for a three-year term expiring at our 2027 AGM. We continue to review and strengthen the succession planning for the Managing Board to ensure business continuity, taking into account, amongst others, the rapidly changing technological, social, economic and regulatory developments in our industry.

The members of our Managing Board hereby declare that, to the best of their knowledge, the statutory financial statements as of December 31, 2024, and for the year then ended, prepared under Title 9 of Book 2 of the Dutch Civil Code and in accordance with IFRS as adopted by the EU, provide a true and fair view of the assets, liabilities, financial position and profit or loss of STMicroelectronics N.V. and the undertakings included in the consolidation taken as a whole. Furthermore, the members of our Managing Board hereby also declare that the report of the Managing Board includes a true and fair view concerning the statement of financial position as of December 31, 2024. The report of the Managing Board also includes the development and performance of STMicroelectronics N.V. and the undertakings included in the consolidation taken as a whole, together with the principal risk and uncertainties they face.

Our total available market is defined as “TAM”, while our serviceable available market is defined as “SAM” and represents the market for products sold by us (i.e., TAM excluding major devices such as microprocessors, graphics processing units / AI accelerators, DRAM and flash-memories, optoelectronics devices other than optical sensors, video processing and wireless application specific market products, such as baseband and application processors).

Based on industry data published by World Semiconductor Trade Statistics (“WSTS”), semiconductor industry revenues in 2024 increased on a year-over-year basis by approximately 19% for the TAM and decreased by approximately 5% for the SAM, to reach approximately $628 billion and $244 billion, respectively.

Full year 2024 total revenues decreased 23.2% to 13.27 billion from $17.29 billion in 2023, as a result of an approximate 15% decrease in average selling prices, due to product mix and lower selling prices, and a 8% decrease in volumes. By reportable segments, AM&S revenues decreased 13.0%, driven by lower average selling prices of approximately 8% due to lower selling prices and less favorable product mix, and lower volumes of approximately 5%. P&D revenues decreased 18.8%, driven by lower average selling prices of approximately 11% due to a less favorable product mix and lower selling prices, and lower volumes of approximately 8%. MCU revenues decreased 38.80% due to lower volumes of approximately 20% and lower average selling prices of approximately 19% mainly driven by a less favorable product mix and lower selling prices. D&RF revenues decreased by 16.50%, driven by lower average selling prices of approximately 43%, due to less favorable product mix and lower selling prices, partially offset by higher volumes of approximately 26%.

We believe Gross Margin and Operating Margin provide useful information as they measure the profitability of our operations. Gross Margin is defined as gross profit divided by total revenues. Gross profit is calculated as total revenues minus cost of sales. Operating Margin is defined as operating profit divided by total revenues. Operating profit is calculated as gross profit net of operating expenses, other income and other expenses.

Our 2024 Gross Margin decreased 880 basis points to 37.1% from 45.9% in 2023, mainly due to product mix and, to a lesser extent, to sales price and higher unused capacity charges.

Operating Margin was 12.7% in 2024, a decrease of 1,400 bps from 26.7% in 2023. Operating profit in 2024 decreased to $1,688 million compared to $4,610 million in 2023 mainly driven by the combining effect of lower revenues and gross margin profitability.

Our operating expenses, comprised of aggregated SG&A and R&D expenses, amounted to $3,375 million in 2024, substantially flat from $3,388 million in the prior year. Other income and expenses, net, was $140 million in 2024 compared to $67 million in 2023, increasing mainly due to lower start-up costs and higher income from public funding.

Combined finance income and costs resulted in a net income of $616 million, compared to a net loss of $95 million in 2023, and reflect in both years the IFRS accounting of our convertible bonds. The 2024 amount included a gain of $477 million for the fair value adjustment of the embedded bondholders’ conversion options on outstanding convertible bonds (compared to a loss of $249 million in 2023). The main driver of the gain is the decrease in the stock price, including dividend yield.

Full year 2024 net profit was $1,987 million or $2.19 diluted earnings per share, compared to net profit of $3,985 million, or $4.38 diluted earnings per share for the full year 2023.

Net Capex (non-GAAP measure) was $2,531 million for the year 2024 compared to $4,111 million for the year 2023. The main driver of our capital expenditures is our efforts in investing in our SiC production facilities, in our back-end manufacturing capacity and our 300mm wafer front-end facilities.

During 2024, our net cash decreased by $940 million, with net cash from operating activities reaching $3.34 billion. During 2024, we paid $359 million for the repurchase of ordinary shares, $288 million of cash dividends to our shareholders, and $203 million for long-term financial debt repayment, partially offset by $300 million proceeds from the second tranche under our existing €600 million credit facility with the European Investment Bank (“EIB”).

Our Net Capex, Free Cash Flow, Net Financial Position and Adjusted Financial Position are non-GAAP measures and are further described in Section 3.2.5. (Report of the Managing Board - Business overview and performance - Liquidity and financial position).

We are a global semiconductor company that designs, develops, manufactures and markets a broad range of products used in a wide variety of applications for the four end-markets we address: Automotive, Industrial, Personal Electronics and Communications Equipment, Computers and Peripherals (each as defined below). For the Automotive and Industrial markets we address a wide customer base, particularly in Industrial, with a broad and deep product portfolio. In Personal Electronics and in Communications Equipment, Computers and Peripherals we have a selective approach both in terms of the customers we serve, as well as in the technologies and products we offer, while leveraging our broad portfolio to address high-volume applications.

Our diverse product portfolio includes discrete and general purpose components, ASICs, full-custom devices and semi-custom devices and ASSPs for analog, digital and mixed-signal applications. It benefits from a unique, strong foundation of proprietary and differentiated leading-edge technologies. We use all of the prevalent function-oriented process technologies, including CMOS, bipolar and non-volatile memory technologies. In addition, by combining basic processes, we have developed advanced systems-oriented technologies that enable us to produce differentiated and application-specific products, including FD-SOI technology offering superior performance and power efficiency compared to bulk CMOS, Bi-CMOS and RF-SOI for mixed-signal and high-frequency applications, as well as a combination of BCD, VIPower, and intelligent integrated gallium-nitride technologies for smart power applications, power MOSFET, SiC) and GaN for high-efficiency systems, MEMS technologies for sensors and actuators, embedded memory technologies for our microcontrollers and differentiated optical sensing technologies for our optical sensing solutions.

Further information on our business model is included in Section 2 (Corporate Overview) above and Sections 3.2.2.1. (Strategy and objectives) et seq. below.

We are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. As an IDM, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things.

Our strategy focuses on sustainable long-term value creation for the Company and its affiliated enterprises and takes into account the short-. medium- and longer-term evolution of the markets we serve and the environment and opportunities we see. It stems from key long-term trends in electronic systems. These key trends are: (i) smart mobility, where we provide innovative solutions to help car manufacturers make driving safer, greener and more connected; (ii) power and energy, where our technology and solutions enable industries to increase energy efficiency and support the use of renewable energy; and (iii) cloud-connected autonomous things, which transform our lives and the objects we use with smart, connected devices for personal, business and industrial applications.

Our global IDM operational model, with a wide range of capabilities in proprietary and innovative technology and IP design, product and solution development, and with advanced manufacturing - both in-house and with selected partners - providing us with a strong competitive advantage and supply chain resilience for our customers.

Our value proposition for stakeholders is focused on sustainable and profitable growth, providing differentiating enablers to customers and a strong commitment to sustainability. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable energy sourcing goal by the end of 2027.

The tables below set forth the breakdown of employees by geographic area and category of main activity for the past two years.

Our future success will partly depend on our ability to continue to attract, retain and motivate highly qualified technical, marketing, engineering and management personnel, as well as on our ability to timely adapt the size and/or profile of our personnel to changing industry needs. Unions are represented at almost all of our manufacturing facilities and at several of our R&D sites. We use temporary employees if required during production spikes and, in Europe, during summer vacation. We have not experienced any significant strikes or work stoppages in recent years.

More detailed information on our employees can be found in Section 3.4.4.1. (Social - Own workforce - Characteristics of the undertaking’s employees). It should be noted that the number of employees presented in the tables above differ from the number of employees included in Section 3.4.4.1., due to a different headcount definition and related scope.

We believe that customer alliances and industry partnerships are critical to our success in the semiconductor market. Customer alliances provide us with valuable systems and application know-how and access to markets for key products, while enabling our customers to gain access to our process technologies and manufacturing infrastructure. We are actively working to expand the number of our customer alliances, targeting key global original equipment manufacturers ("OEMs") as well as emerging, innovative customers and partners around the globe.

From time to time we collaborate with other semiconductor industry companies, research organizations, universities, customers, experts and suppliers to further our R&D efforts. Such collaboration provides us with a number of important benefits, including acquisition of technical know-how, access to additional production capacities, sharing of costs and reductions in our own capital requirements.

We design, develop, manufacture and market thousands of products which we sell to over 200,000 customers. We emphasize a broad and balanced product portfolio, in the applications and regional markets we serve, which helps foster closer, strategic relationships with customers. Our major customers include (in alphabetical order) Apple, Bosch, Continental, Denso Hyundai Motor, Mobileye, Samsung, SpaceX, Tesla and Vitesco. This broad product breadth provides opportunities to enable application solutions and to supply such customers’ requirements for all their product and technology needs. We also sell our products through our distribution channel.

In Automotive (as defined below), we have identified a significant evolution of the relationship with customers. Historically, semiconductor companies addressed the needs of carmakers mostly through tier 1 and/or tier 2 automotive industry suppliers with whom we work closely. In recent years there has been an accelerated transformation of the automotive industry driven by the electrification and the digitalization of vehicles, significantly increasing the amount and complexity of semiconductor products in vehicles. As a result, and following further from the supply chain challenges which arose during and after the COVID-19 pandemic, carmakers are taking a more direct role in the decision making and control of both the semiconductor strategy and supply for their vehicles. Carmakers now have a more direct relationship with companies such as ours, notably playing a more active role in defining the specific solutions they require, as well as in certain instances engaging in direct co-operation agreements. We are committed to playing a major role in these new business models and we see multiple opportunities for co-operation with carmakers in this area, while also continuing to build on our co-operation with tier 1 and tier 2 automotive industry suppliers.

Our sales and marketing is organized by a combination of regional and key account coverage with the primary objective of accelerating sales growth and gaining market share. Emphasis is placed on strengthening the development of our global and major local accounts; boosting demand creation through an enhanced focus on geographical and key account coverage with strong technical and application expertise, supported in the mass market by our distribution channel and local initiatives; and establishing regional sales and marketing teams that are fully aligned with our end-markets, each as defined below: Automotive, Industrial (split into two verticals: a power and energy vertical; and a smart industrial IoT / automation vertical), Personal Electronics and Communications Equipment, Computers and Peripherals.

We have four regional sales organizations reporting to a global head of sales and marketing: Americas, APeC, China and EMEA. Our regional sales organizations have a similar structure to enhance global coordination and go-to-market activities. The sales and marketing teams are strongly focused on profitable revenue growth and business performance as well as on fostering demand creation, expanding the customer base, maximizing market share, developing new product-roadmaps and providing the best technical and application support in the field for our customers.

The sales and marketing activities are supported by sales engineers, system marketing, product marketing, application labs, competence centers, field application engineers and quality engineers.

In the first quarter of 2024, we announced that we will complement the existing sales and marketing organization (the "Sales and Marketing" organization) by implementing a new SM&A organization, offering customers end-to-end system solutions based on our product and technology portfolio, covering the following four end markets:

•automotive end-market ("Automotive");

•industrial end-market ("Industrial"), split into two verticals: a power and energy vertical and a smart industrial IoT / automation vertical;

•personal electronics end-market ("Personal Electronics"); and

•communications equipment, computers and peripherals end-market ("Communications Equipment, Computers and Peripherals").

The regional Sales and Marketing organization remained unchanged.

We engage distributors and sales representatives to distribute and promote our products around the world. Typically, distributors handle a wide variety of products, including those that compete with ours. Our distributors have a dual role, in that they assist in fulfilling the demand of our customers by servicing their orders, while also supporting the creation of product demand and business development. Most of our sales to distributors are made under specific agreements allowing for price protection and stock rotation for unsold merchandise. Sales representatives, on the other hand, generally do not offer products that compete directly with our products, but may carry complementary items manufactured by others.

At the request of certain customers, we also sell and deliver our products to electronics manufacturing services companies, which, on a contractual basis with our customers, incorporate our products into the application specific products they manufacture for our customers. We also sell products to ODMs. ODMs manufacture products for our customers much like electronics manufacturing services companies do, but they also design applications for our customers, and in doing so themselves select the products and suppliers that they wish to purchase from.

In furtherance of our strong commitment to quality, our sales organizations include personnel dedicated to close monitoring and resolution of quality-related issues.

We believe that market driven R&D based on leading-edge products and technologies is critical to our success. We devote significant effort to R&D because we believe such investment can be leveraged into competitive advantages: about 20% of our employees work in R&D on product design/development and technology and, in 2024, we spent approximately 13.0% of our total revenues on R&D.

New developments in semiconductor technology can make end products significantly cheaper, smaller, faster, more reliable and embedded than their predecessors, with differentiated functionalities. They can enable significant value creation opportunities with their timely appearance on the market. Our innovations in semiconductor technology as well as in hardware and software contribute to the creation of successful products that generate value for us and our customers. Our complete design platforms, including a large selection of IP and silicon-proven models and design rules, enable the fast development of products designed to meet customer expectations in terms of reliability, quality, competitiveness in price and time-to-market. Through our R&D efforts, we contribute to making our customers’ products more efficient, more appealing, more reliable and safer.

Our technology R&D strategy is based on the development of differentiated technologies, allowing for a unique offer in terms of new products and enabling new applications opportunities. We draw on a rich pool of fabrication technologies for chips and products, including advanced digital CMOS on FD-SOI, embedded non-volatile memories, analog and mixed-signal, optical sensing, integrated photonics, MEMS, BCD for smart power, power transistors and diodes, power SiC and GaN processes, Bi-CMOS, and SiPho. This is well embedded in our strong packaging technologies portfolio, such as high pin count BGA, wafer level packaging, panel-level packaging, highly integrated sensor packages and leadframe package power products. We combine both front-end and back-end manufacturing and technology R&D under the same organization to ensure a smooth flow of information between our R&D and manufacturing organizations. We leverage significant synergies and shared activities between our product groups to cross-fertilize them. We also use silicon foundries and OSATs

We have advanced R&D and innovation centers which offer us a significant advantage in quickly and cost effectively introducing products. Furthermore, we have established a strong culture of partnerships and through the years have created a network of strategic collaborations with key customers, suppliers, competitors, and leading universities and research institutes around the world. We also play leadership roles in numerous projects running under the "Information Society Technologies" programs of the EU. We also participate in certain collaborative R&D and innovation programs established by the EU Commission, individual countries and local authorities in Europe (primarily in France and Italy) and in Singapore. We currently own over 21,000 active and pending patents worldwide.

The total amount of our R&D expenses was $1,726 million and $1,750 million in 2024 and 2023, respectively, while the total amount of R&D expenses capitalized amounted to $354 million and $361 million in 2024 and 2023, respectively.

We are an IDM with the ability to control and optimize the value chain, from semiconductor process development, chip design, testing and validation, wafer fabrication, to assembly, testing, and delivery to our customers. At our Company, manufacturing is based on our owned and operated facilities in EMEA and in Asia, complemented by outsourcing in both front-end and back-end processes. This enables us to provide customers with an independent, flexible and robust manufacturing and supply chain, which aids in our success. In addition, our proprietary semiconductor process technologies highlighted above enable product differentiation. We believe that the combination of these two aspects represent a differentiating factor for our Company as compared to fabless semiconductor companies and semiconductor foundries.

We currently operate fourteen main manufacturing sites around the world. Please refer to Appendix 11.5 for a list of our main manufacturing sites.

As of December 31, 2024, our front-end facilities had a total maximum capacity of approximately 145,000 wafer starts per week (200mm equivalent). The number of wafer starts per week varies from facility to facility and from period to period as a result of changes in product mix.

We own all of our manufacturing facilities, but certain facilities (Muar, Malaysia; Shenzhen, China; Kirkop, Malta; Toa Payoh and Ang Mo Kio, Singapore) are built on land subject to long-term leases.

We have historically subcontracted a portion of total manufacturing volumes to external suppliers. In 2024, we subcontracted approximately 11% of the value of our total silicon production to external foundries. Our plan is to continue sourcing silicon from external foundries and OSATs to give us flexibility in supporting our growth.

As of December 31, 2024, we had approximately $1,411 million in outstanding orders for purchases of equipment (certain of which are subject to cancellation or amendment in accordance with their terms) and other assets for delivery in 2025. In 2024, our capital expenditure payments (defined as payments for purchases of tangible assets), net of proceeds from sales, capital grants and other contributions, was $2,642 million compared to $4,111 million in 2023. In the 2022-2024 period the ratio of capital expenditure payments, net of proceeds from sales, capital grants and other contributions to total revenues was about 22%.

Our success depends in part on our ability to obtain patents, licenses and other IP rights to protect our proprietary technologies and processes. Intellectual property ("IP") rights that apply to our various products include patents, copyrights, trade secrets, trademarks and mask work rights. We currently own over 21,000 active and pending patents worldwide.

We believe that our IP represents valuable assets. We rely on various IP laws, confidentiality procedures and contractual provisions to protect our IP assets and enforce our IP rights. To optimize the value of our IP assets, we have engaged in licensing our design technology and other IP, including patents, when consistent with our competitive position and our customers’ interests. We have also entered into broad-scope cross-licenses and other agreements which enable us to design, manufacture and sell semiconductor products using the IP rights of third parties and/or operating within the scope of IP rights owned by third parties.

From time to time, we are involved in IP litigation and infringement claims. Regardless of the validity or the successful assertion of such claims, we may incur significant costs with respect to the defense thereof, which could have a material adverse effect on our results of operations, cash flow or financial condition.

Our sales are made primarily pursuant to standard purchase orders that are generally booked from one to eighteen months in advance of delivery. Quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery and, in some cases, to cancellation due to changes in customer needs or industry conditions. During periods of economic slowdown and/or industry overcapacity and/or declining selling prices, customer orders are not generally made far in advance of the scheduled shipment date. Such reduced lead time can diminish management’s ability to forecast production levels and revenues. When the economy rebounds, our customers may strongly increase their demands, which can result in capacity constraints due to a time lag when matching manufacturing capacity with such demand.

In addition, our sales are affected by seasonality, with the first half generally showing lowest revenue levels in the year, and the third or fourth quarter historically generating higher amounts of revenues partly as a result of the seasonal dynamics for smartphone applications dynamics.

We also sell certain products to key customers pursuant to frame contracts. Frame contracts are annual contracts with customers setting forth quantities and prices on specific products that may be ordered in the future. These contracts allow us to schedule production capacity in advance and allow customers to manage their inventory levels consistent with just-in-time principles while shortening the cycle times required to produce ordered products. Orders under frame contracts are also subject to a high degree of volatility, because they reflect expected market conditions which may or may not materialize. Thus, they are subject to risks of price reduction, order cancellation and modifications as to quantities actually ordered resulting in inventory build-ups.

Furthermore, developing industry trends, including customers’ use of outsourcing and their deployment of new and revised supply chain models, may reduce our ability to forecast changes in customer demand and may increase our financial requirements in terms of capital expenditures and inventory levels.

We entered 2024 with a backlog lower than we had entering 2023. For 2025, we entered the year with a backlog lower than what we had entering 2024.

Markets for our products are intensely competitive. We compete with major international semiconductor companies and while only a few companies compete with us in all of our product lines, we face significant competition from each of them. Smaller niche companies are also increasing their participation in the semiconductor market, and semiconductor foundry companies have expanded significantly, particularly in Asia. Competitors include manufacturers of standard semiconductor devices, ASICs and fully customized ICs, including both chip and board-level products, as well as customers who develop their own IC products and foundry operations. Some of our competitors are also our customers or suppliers. We compete in different product lines to various degrees on the basis of price, technical performance, product features, product system compatibility, customized design, availability, quality and sales and technical support. In particular, standard products may involve greater risk of competitive pricing, inventory imbalances and severe market fluctuations than differentiated products. Our ability to compete successfully depends on factors both within and outside our control, including successful and timely development of new products and manufacturing processes, product performance and quality, manufacturing yields and product availability, customer service, pricing, industry trends and general economic trends.

The semiconductor industry is characterized by the high costs associated with developing marketable products and manufacturing technologies as well as high levels of investment in production capabilities. As a result, the semiconductor industry has experienced, and is expected to continue to experience, significant vertical and horizontal consolidation among our suppliers, competitors and customers, which could lead to erosion of our market share, impact our capacity to compete and require us to restructure our operations.

We receive public funding mainly from EU member states (including France, Italy and Malta) and China. Such funding is generally provided to encourage R&D and innovation activities, enhance industrialization, and contribute to Capex for certain strategic programs, as well as national, regional and local economic development. Our funding programs are classified under four general categories: funding for research, development and innovation (“RDI”) activities, funding for FID activities and capital investment for pilot lines, and tax credits. We benefit from tax credits for R&D activities in several countries which are generally available to all companies.

The main R&D, RDI and FID programs in which we are involved include: (i) IPCEI which combines R&D, RDI as well as FID activities; (ii) Chips JU/ECS program, formerly Key Digital Technologies Initiative, which combines all electronics related R&D activities and is operated by a joint undertaking formed by the EU, certain member states and industry; (iii) EU R&D projects within Horizon Europe (the EU's research and innovation framework); and (iv) national or regional programs for R&D and for industrialization in the electronics industries involving many companies and laboratories.

In December 2018, the European Commission announced the approval of the IPCEI on Microelectronics ("IPCEI ME"), a pan-European project initiated to foster research and innovation in microelectronics to be funded by Germany, France, Italy, the U.K. and Austria.

In our combined role as beneficiary of the IPCEI ME, we have recognized grants of €266.1 million for the period 2018-2022 in France (locally referenced as Nano2022) which was linked to technical objectives and associated achievements, and have been allocated approximately €789 million for the period 2018-2024 in Italy. The IPCEI ME program significantly strengthened our leadership in key technologies. It has contributed to anticipating, accelerating, and securing our technological developments. The IPCEI ME program also has wide ranging, pan-European benefits on the microelectronics ecosystem from education to downstream industries.

In December 2021, we took part in a new IPCEI program, titled IPCEI on Microelectronics and Communication Technologies (“IPCEI ME/CT”). This new pan-European project was initiated to foster research and innovation and kick-start the first industrialization of microelectronics. It involves ST in France (2022-2026), Italy (2023-2027) and Malta (2021-2026), as well as around 65 other companies across 14 European countries. In 2024 we recognized grants of €86 million and €157 million related to our respective participations in IPCEI ME and IPCEI ME/CT in Italy, €113.6 million related to our participation in IPCEI ME/CT, Chips JU/ECS and other national and European programs in France and $18 million related to our participation in IPCEI ME/CT in Malta.

On October 4, 2022, the European Commission approved, under EU State Aid rules, a support up to €292.5 million through the Italian Recovery and Resilience Plan for the construction of a new integrated SiC substrate manufacturing facility in Catania, Italy. In 2024 we recognized grants of €17 million related to this project. On April 28, 2023, the European Commission approved, under EU State Aid rules, a French aid measure to support the Company and GlobalFoundries in the construction and operation of a front-end semiconductor production facility in Crolles, France. This project represents an overall projected cost of €7.5 billion for capital expenditure, maintenance and ancillary costs. The new facility will benefit from significant financial support of up to around €2.9 billion from France for GlobalFoundries and ST. In 2024 we received around €309.8 million in cash and recognized grants of €41.3 million from this program in Crolles, France.

On May 31, 2024, the European Commission approved, under the EU State Aid rules, an Italian aid measure to support the Company in the construction and operation of an integrated chip manufacturing plant for SiC power devices in Catania, Italy. The aid will take the form of a €2 billion direct grant to ST to support its planned investment of €5 billion in capital expenditure. The measure will strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies. The measure will also contribute to achieving the digital and green transitions.

These projects are “first-of-a-kind” facilities in Europe in line with the ambitions and objectives of the European Chips Act.

In 2023, the Company and Sanan Optoelectronics jointly created SANAN, STMicroelectronics Co. Ltd. (“Sanan ST JV”), for high-volume 200mm SiC device manufacturing in China. This joint venture will make SiC devices exclusively for us, using our proprietary SiC manufacturing process technology, and will serve as a dedicated foundry to support the demand of our Chinese customers. The total amount for the full buildout of the joint venture’s future operations is expected to be about $3.2 billion, including capital expenditures of about $2.4 billion over the next 5 years, for which Sanan ST JV receives local government support through a funding program with Chinese regional authorities.

We use three primary critical types of suppliers in our business: (i) equipment suppliers, (ii) material suppliers and (iii) external silicon foundries and test and packaging subcontractors. We also purchase third-party licensed technology from a limited number of providers.

In the front-end process, we use steppers, scanners, tracking equipment, strippers, chemo-mechanical polishing equipment, cleaners, inspection equipment, etchers, physical and chemical vapor-deposition equipment, implanters, furnaces, testers, probers and other specialized equipment. The manufacturing tools that we use in the back-end process include bonders, burn-in ovens, testers and other specialized equipment. The quality and technology of equipment used in the IC manufacturing process defines the limits of our technology. Demand for increasingly smaller chip structures means that semiconductor producers must quickly incorporate the latest advances in process technology to remain competitive. Advances in process technology cannot occur without commensurate advances in equipment technology, and equipment costs tend to increase as the equipment becomes more sophisticated.

Our manufacturing processes consume significant amounts of energy and use many materials, including silicon and SiC, GaN and glass wafers, lead frames, mold compound, ceramic packages and chemicals, gases and water. The prices of energy, such as electricity and natural gas, and many of these materials are volatile due to the specificity of the market, and other factors including geopolitics. We have therefore adopted a “multiple sourcing strategy” designed to minimize the impact of price increases. The same strategy applies to supplies for the materials used by us to avoid potential material disruption of essential materials and to ensure the continuity of energy supply. Our “multiple sourcing strategy”, our financial risk monitoring as well as the robustness of our supply chain and strong partnership with suppliers are intended to mitigate these risks.

Finally, we also use external subcontractors to outsource wafer manufacturing and assembly and testing of finished products.

On March 19, 2025, we announced the resignation of Mr. Maurizio Tamagnini from our Supervisory board, effective immediately.

On January 30, 2025, we announced that our Supervisory Board has agreed to propose for shareholders’ approval at the Company’s 2025 AGM, the appointment of Werner Lieberherr to the Supervisory Board of the Company, in replacement of Janet Davidson, whose mandate will expire at the end of the 2025 AGM.

On January 30, 2025, we announced the start of the company-wide program to resize ST's global cost base. For each of the concerned countries, the start of the program will take place in accordance with applicable regulations.

On January 28, 2025, we announced to have signed a physical power purchase agreement with TotalEnergies, which will supply renewable electricity to STMicroelectronics sites in France. This 15-year contract, started in January 2025, represents an overall volume of 1.5 TWh.

On December 10, 2024, we announced a new NPU-accelerated STM32 microcontrollers series, STM32N6, with new machine-learning capabilities make it possible to run computer vision, audio processing, sound analysis and more consumer and industrial applications at the edge.

On December 3, 2024, we announced a multi-year agreement with the Renault group on the supply of SiC power modules for Ampere, and a collaboration on powerbox and cooling systems for the inverter.

On November 20, 2024, we outlined 2027-2028 financial model and path towards 2030 ambition. Within the framework of an unchanged strategy, ST reiterated its $20 billion plus revenue ambition and associated financial model, now expected to be reached by 2030. ST also set an intermediate financial model with revenues expected around $18 billion with an operating margin within a 22% to 24% range in 2027-2028.

On November 7, 2024, we announced the signature of a power purchase agreement with ENGIE, which will supply renewable electricity to STMicroelectronics sites in Malaysia. This 21-year contract, starting in 2025, represents an annual volume of 50 GWh.

On October 31, 2024, we announced the launch of a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm silicon (Agrate, Italy, and Crolles, France) and 200mm silicon carbide (Catania, Italy) and resizing our global cost base. This program should result in strengthening our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027. At a later stage, ST announced that, specifically in terms of operating expenses (SG&A and R&D), it expects annual cost savings totaling $300 to 360 million, exiting 2027, compared to the cost base of 2024.

On October 31, 2024, we announced that since October 1, 2024, Lorenzo Grandi, President and Chief Financial Officer, has taken additional responsibilities, with a perimeter now also covering supply chain, corporate development and integrated external communication in addition to finance, global procurement, digital transformation and information technology, enterprise risk management and resilience.

ST’s Executive Committee remains unchanged and continues to report to Jean-Marc Chery, ST President and Chief Executive Officer.

On October 1, 2024, we announced a new strategic collaboration with Qualcomm for the next generation of industrial and consumer IoT solutions augmented by edge AI.

On September 24, 2024, we unveiled our fourth generation STPOWER SiC MOSFET technology.

On August 21, 2024, we published our IFRS 2024 Semi Annual Accounts for the six-month period ended June 29, 2024 on our website and filed them with the Netherlands Authority for the Financial Markets (Authoriteit Financiële Markten).

On June 4, we announced a long-term supply agreement for third-generation SiC MOSFETs with Geely Auto for powertrain efficiency, as well as a joint innovation lab to support the development of smart, electrified and connected cars.

On May 31, 2024, we announced our plan to build a new fully integrated SiC facility in Catania, Italy for the mass production of 200mm SiC power devices and modules, as well as test and packaging, to be built in Catania, Italy. The facility is a projected €5 billion multi-year investment program including €2 billion support provided by the state of Italy in the framework of the EU Chips Act.

On May 22, 2024, we held our AGM, in Amsterdam, the Netherlands. The proposed resolutions, all approved by the shareholders were:

•the adoption of the Company's statutory annual accounts for the year ended December 31, 2023, prepared in accordance with IFRS and filed with the Netherlands Authority for the Financial Markets on March 21, 2024;

•the distribution of a cash dividend of $0.36 per outstanding share of the Company’s common stock to be distributed in quarterly installments of $0.09 in each of the second, third and fourth quarters of 2024 and first quarter of 2025 to shareholders of record in the month of each quarterly payment;

•the amendment to the Company's Articles of Association;

•the adoption of the remuneration policy for the Supervisory Board;

•the adoption of the remuneration policy for the Managing Board;

•the reappointment of Mr. Jean-Marc Chery as member and chairman of the Managing Board for a three-year term to expire at the end of the 2027 AGM;

•the approval of the stock-based portion of the compensation of the President and Chief Executive Officer;

•the appointment of Mr. Lorenzo Grandi as member of the Managing Board for a three-year term to expire at the end of the 2027 AGM;

•the approval of the stock-based portion of the compensation of the Chief Financial Officer;

•the approval of a new 3-year unvested stock award plan for management and key employees;

•the reappointment of Ernst & Young as external auditor for the 2024 and 2025 financial years;

•the reappointment of Mr. Nicolas Dufourcq, as member of the Supervisory Board, for a three-year term to expire at the end of the 2027 AGM;

•the reappointment of Ms. Janet Davidson, as member of the Supervisory Board, for a one-year term to expire at the end of the 2025 AGM;

•the appointment of Mr. Pascal Daloz, as member of the Supervisory Board, for a three-year term expiring at the 2027 AGM, in replacement of Mr. Yann Delabrière whose mandate expired at the end of the 2024 AGM;

•the authorization to the Managing Board, until the conclusion of the 2025 AGM, to repurchase shares, subject to the approval of the Supervisory Board;

•the delegation to the Supervisory Board of the authority to issue new common shares, to grant rights to subscribe for such shares, and to limit and/or exclude existing shareholders’ pre-emptive rights on common shares, until the end of the 2025 AGM;

•the discharge of the member of the Managing Board; and

•the discharge of the members of the Supervisory Board.

On April 22, 2024, we announced the expansion of the existing multi-year, long-term 150mm SiC substrate wafers supply agreement with SiCrystal, a ROHM group company

On April 16, 2024, we published our 2024 sustainability report detailing 2023 performance, strategy and ongoing action plans.

On April 11, 2024, we announced the signature of a power purchase agreement with Centrica Energy, which will supply renewable electricity to STMicroelectronics sites in Italy. This 10-year contract, starting in 2025, represents an annual volume of 61 GWh.

On March 19, 2024, we announced our first STM32 microcontroller based on our new 18nm FD-SOI with embedded phase change memory technology, delivering a leap in performance and power consumption.

Our policy is to modulate our capital spending according to the evolution of the semiconductor market. For 2025, we plan to invest between $2.0 to $2.3 billion in Net Capex (non-GAAP measure). Net Capex (non-GAAP measure) is further described in Section 3.2.5 (Report of the Managing Board - Business Overview and Performance - Liquidity and financial position).

Our Net Capex (non-GAAP measure) will be largely driven by our manufacturing reshaping initiatives (accelerated transition towards 300mm silicon and 200mm silicon carbide). In particular:

•in Catania, Italy, the new high-volume fully vertically integrated 200mm silicon carbide manufacturing facility for power devices and modules, as well as test and packaging;

•in Chongqing, China, the new 200mm silicon carbide device manufacturing joint venture with Sanan Optoelectronics;

•in Crolles, France, digital 300mm;

•in Agrate, Italy, the ramp-up of the 300mm wafer fab to support analog mixed signal, smart power HCMOS and VIPower technologies; and

•capital investments in back-end facilities, which in 2025 will be largely focused on: (i) capacity growth on certain package families, including power loss protection / direct copper interconnect technology (ii) the new generation of intelligent power modules for automotive and industrial applications, and (iii) selected investments for the modernization and expansion assembly and test operations.

The remaining part of our Net Capex (non-GAAP measure) covers the overall maintenance and efficiency improvements of our manufacturing operations and infrastructure, R&D activities, laboratories as well as the execution of our carbon neutrality programs.

We will continue to invest to support revenues growth and new products introduction, taking into consideration factors such as trends in the semiconductor industry, capacity utilization and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. We expect to need significant financial resources in the coming years for capital expenditures and for our investments in manufacturing and R&D.

We plan to fund our capital requirements with cash provided by operating activities, available funds and support from third parties, and may have recourse to borrowings under available credit lines and, to the extent necessary or attractive based on market conditions prevailing at the time, the issuance of debt, convertible bonds or additional equity securities. A substantial deterioration of our economic results, and consequently of our profitability, could generate a deterioration of the cash generated by our operating activities. Therefore, there can be no assurance that, in future periods, we will generate the same level of cash as in prior years to fund our capital expenditure plans for expanding/upgrading our production facilities, our working capital requirements, our R&D and manufacturing costs.

We believe that we have the financial resources needed to meet our currently projected business requirements for the next twelve months, including capital expenditures for our manufacturing activities, working capital requirements, approved dividend payments, share buy-backs as part of our current repurchase program and the repayment of our debt in line with maturity dates.

We maintain an adequate cash position and a low debt-to-equity ratio to provide us with adequate financial flexibility. As in the past, our cash management policy is to finance our investment needs mainly with net cash generated from operating activities.

During 2024, our net cash decreased by $940 million. The components of our net cash variation and the comparable period are set forth below:

Net cash from operating activities is the sum of (i) net profit adjusted for non-cash items and (ii) changes in net working capital. The net cash from operating activities in 2024 was $3,342 million, decreasing compared to $6,366 million in the prior year, mainly due to lower net profit.

Investing activities used $4,096 million of cash in 2024, decreasing compared to $5,975 million cash used in 2023, mainly due to lower payments for purchase of tangible assets, net of proceeds from sales of tangible assets, capital grants and other contributions, which totaled $2,642 million in 2024, higher proceeds from marketable securities for a total of $2,251 million, partially offset by higher purchases of marketable securities for a total of $2,980 million, and lower net investments in short-term deposits of $225 million. Capital investments for the year 2024 included (i) investments in advanced wafer fabs, such as the 300mm fab in Crolles, France and the 300mm fab in Agrate, Italy; (ii) SiC activities, primarily in Catania, Italy, Singapore and China; and (iii) in selected programs of capacity growth in other front-end and back-end activities.

Net cash used in financing activities was $178 million for 2024, compared to $432 million in 2023, and consisted mainly of $359 million repurchase of common stock, $288 million of dividends paid to our shareholders and $274 million repayment of financial debt including payment for lease liabilities, partially offset by $300 million of proceeds from a new drawdown of the second tranche under our existing €600 million credit facility with the EIB and $344 million of proceeds from advances on capital grants for which capital expenditures have not been incurred yet.

Our Net Capex (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows, which differs from our Consolidated Statements of Cash Flows under IFRS. Our Net Capex (non- GAAP measure) takes into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Net Capex is reported as part of our Free Cash Flow (non-GAAP measure).

Net Capex, a non-GAAP measure, is defined as (i) payment for purchase of tangible assets, as reported plus (ii) proceeds from sale of tangible assets, as reported plus (iii) proceeds from capital grants and other contributions, as reported, plus (iv) advances from capital grants allocated to property, plant and equipment in the reporting period.

We believe Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.

Our Net Capex (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows; a reconciliation from the Consolidated Statements of Cash Flows as reported under IFRS is provided in the table below:

Net Capex decreased by $1,580 million, from $4,111 million in 2023 to $2,531 million in 2024, primarily due to lower payments for purchases of tangible assets.

Our Free Cash Flow (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows, which differs from our Consolidated Statements of Cash Flows under IFRS. Free Cash Flow, a non-GAAP measure, is defined as (i) net cash from operating activities plus, (ii) net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.

We believe Free Cash Flow, a non-GAAP measure, provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.

Free Cash Flow is a non-GAAP measure and does not represent total cash flow since it does not include the cash flows from, or used in, financing activities.

Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchase of (and proceeds from matured) marketable securities and net investments in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates while excluding the advances from capital grants received in prior periods and allocated to property, plant and equipment in the current reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.

Our Free Cash Flow is derived from our U.S. GAAP Consolidated Statements of Cash Flows; a reconciliation from the Consolidated Statement of Cash Flows as reported under IFRS is provided in the table: below:

In millions of U.S. dollars						December 31, 2024						December 31, 2023
Net cash from operating activities as reported under IFRS						3,342						6,366
Excluding U.S. GAAP/IFRS presentation differences:
Payment for withholding tax on vested shares						44						54
Payment for operating lease liabilities						(67)						(67)
Net cash from operating activities adjusted under IFRS						3,319						6,353
Net Capex (non-GAAP measure)						(2,531)						(4,111)
Payment for purchase of intangible assets, net of proceeds from sale						(447)						(458)
Payment for purchase of financial assets, net of proceeds from sale						(53)						(10)
Free Cash Flow (non-GAAP measure)						288						1,774

Our Free Cash Flow was $288 million in 2024, compared to $1,774 million in 2023.

Net Financial Position and Adjusted Net Financial Position are non-GAAP measures. Our Net Financial Position represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits and quoted debt securities; our total financial debt includes interest-bearing loans and borrowings, including current portion, as represented in our consolidated statement of financial position. Adjusted Net Financial Position represents net financial position less advances from capital grants, to present the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. Net Financial Position and Adjusted Net Financial Position are non-GAAP measures but we believe they provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and quoted debt securities and the total level of our financial debt.

Our definition of Net Financial Position may differ from definitions used by other companies and therefore comparability may be limited. Our Net Financial Position and Adjusted Net Financial Position are derived from our U.S. GAAP Consolidated Balance Sheets, which differs from the Consolidated Statement of Financial Position under IFRS. A reconciliation with the Consolidated Statement of Financial Position under IFRS is provided in the table below:

Our Net Financial Position as of December 31, 2024, was a net cash position of $3,231 million, increasing compared to a net cash position of $3,156 million as of December 31, 2023.

As of December 31, 2024, our financial debt as reported under IFRS was $2,848 million, composed of (i) $1,683 million of current portion of financial debt and (ii) $1,165 million of long-term debt. The breakdown of our total financial debt included: (i) $1,457 million in senior unsecured convertible bonds issued in 2020, (ii) $1,178 million in EIB Loans, (iii) $208 million in CDP SpA Loans and (iv) $5 million in loans from other funding programs.

The EIB Loans are comprised of three long-term amortizing credit facilities as part of our public funding programs. The first, signed in August 2017, is a €500 million loan, in relation to R&D and capital expenditures in the EU for the years 2017 and 2018. The entire amount was fully drawn in Euros, corresponding to $233 million outstanding as of December 31, 2024. The second one, signed in 2020, is a €500 million credit facility agreement with EIB to support R&D and capital expenditure programs in Italy and France. The amount was fully drawn in Euros representing $364 million outstanding as of December 31, 2024. In 2022, we signed a third long-term amortizing credit facility with EIB of €600 million. Of this amount, €300 million was withdrawn in Euros in 2022, and $300 million was withdrawn in U.S dollars during 2024, representing a total outstanding balance of $581 million as of December 31, 2024.

The CDP SpA Loans are comprised of two long-term credit facilities. The first, signed in 2021, is a €150 million loan, fully drawn in Euros, of which $65 million were outstanding as of December 31, 2024. The second one, signed in 2022, is a €200 million loan, fully drawn in Euros, of which $143 million was outstanding as of December 31, 2024.

On August 4, 2020, we issued $1.5 billion offering of senior unsecured convertible bonds (Tranche A for $750 million and Tranche B for $750 million, each, "Tranche A" and "Tranche B", respectively), due 2025 and 2027, respectively. Tranche A bonds were issued at 105.8% as zero-coupon bonds and Tranche B bonds were issued at 104.5% as zero-coupon bonds. The conversion price at issuance was $43.62 for Tranche A equivalent to a 47.5% conversion premium and $45.10 for Tranche B, equivalent to a 52.5% conversion premium. These conversion features correspond to an equivalent of 4,585 shares per each Tranche A bond $200,000 par value and an equivalent of 4,435 shares per each Tranche B bond $200,000 par value. The bonds are convertible by the bondholders or are callable by us following contractual terms and schedule, if certain conditions are satisfied, on a net-share settlement basis, except if we elect a full-cash or full-share conversion as an alternative settlement.

The net proceeds from the bond offering were $1,567 million, after deducting issuance costs.

Our long-term debt contains standard conditions but does not impose minimum financial ratios. We had unutilized committed medium-term credit facilities with core relationship banks totaling $634 million as of December 31, 2024.

Our current ratings with two major rating agencies that report on us on a solicited basis, are as follows: Standard & Poor’s (“S&P”): “BBB+” with stable outlook; Moody’s Investors Service (“Moody’s”): “Baa1” with stable outlook.

We are exposed to changes in financial market conditions in the normal course of business due to our operations in different foreign currencies and our ongoing investing and financing activities. Our activities expose us to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on our financial performance. We use derivative financial instruments to hedge certain risk exposures.

Financial risk management is carried out by our central treasury department ("Corporate Treasury”). Additionally, a Treasury Committee, chaired by our Chief Financial Officer, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by our policies, which define procedures, objectives and controls. The policies focus on managing financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from our Corporate Treasury. Our Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with our subsidiaries. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity.

The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long-term rating from two of the major rating agencies, meaning at least A3 from Moody’s and A- from S&P or Fitch ratings, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business.

We conduct our business on a global basis in various major international currencies. As a result, we are exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at our subsidiaries and future commercial transactions.

Our interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose us to cash flow interest rate risk. Borrowings issued at fixed rates expose us to fair value interest rate risk.

We select banks and/or financial institutions that operate with us based on the criteria of long-term rating from at least two major rating agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total. For derivative financial instruments, management has established limits so that, at any time, the fair value of contracts outstanding is not concentrated with any individual counterparty.

We monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, considering its financial position, past experience and other factors. The utilization of credit limits is regularly monitored. Sales to customers are primarily settled in cash, which mitigates credit risk. As of December 31, 2024 and 2023, no individual customer represented more than 10% of total trade accounts receivable. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas.

Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. Our objective is to maintain a significant cash position and a low debt-to-equity ratio, which ensures adequate financial flexibility. Our liquidity management policy is to finance our investments with net cash from operating activities.

Management monitors rolling forecasts of our liquidity reserve based on expected cash flows.

As a company operating globally in the semiconductor market, we are exposed to risks, particularly in the current environment of increased volatility, uncertainty, complexity and ambiguity. For a description of our risk factors, please refer to Section 3.3.1.2. (Report of the Managing Board - Risk Management and Internal Control - Risk Management - Risk factors). Our embedded approach to ERM is formalized in a specific policy and is aligned with ISO 31000 (Risk Management).

This enables us to:

•set and enable our Company strategy, manage our performance, and capitalize on opportunities; and

•systematically identify, evaluate and treat specific risk scenarios.

Our ERM improvement roadmap includes, in particular, deploying our risk framework which is based on the following principles:

•taking into consideration the interests of our stakeholders;

•addressing uncertainty explicitly;

•pragmatic and tailored to us;

•integral part of our processes and decision-making;

•proactive, structured, dynamic, iterative and responsive to change; and

•based on the best available information.

Our risk framework is described in the following chart:

Our overall risk approach is managed by our Chief Audit & Risk Executive (our "Chief Audit and Risk Executive") under the direct responsibility of our Managing Board and the oversight of our Supervisory Board. The scope of this oversight role is detailed in our Supervisory Board charter.

Our risk governance is described in the following chart:

Below is a list of the main risk factors we believe are related to the semiconductor industry and specifically related to our operations, which may affect our results, performance, and the ability of our management to predict the future of our Company. This list of main risk factors also includes risks that we have identified to be material, including through our double materiality assessment ("DMA") performed in 2024 (as described further in Section 3.4.2.3.C (Strategy - Material impacts, risks and opportunities and their interaction with strategy and business model).

•We, and the semiconductor industry as a whole, have been and may be further impacted by changes in, or uncertainty about, global, regional and local economic, political, legal, regulatory and social environments as well as climate change.

•The semiconductor industry is cyclical and downturns in the semiconductor industry can negatively affect our results of operations and financial condition.

•Epidemics or pandemics may impact the global economy and could also adversely affect our business, financial condition and results of operations.

•We may not be able to match our production capacity to demand.

•Competition in the semiconductor industry is intense, and we may not be able to compete successfully if our product design technologies, process technologies and products do not meet market requirements. Furthermore, the competitive environment of the industry has resulted, and is expected to continue to result, in vertical and horizontal consolidation among our suppliers, competitors and customers, which may lead to erosion of our market share, impact our ability to compete and require us to restructure our operations.

•Our high fixed costs could adversely impact our results.

•Our capital needs are high compared to those competitors who do not manufacture their own products and we may need additional funding in the coming years to finance our investments, to purchase other companies or technologies developed by third parties or to refinance our maturing indebtedness.

•Our operating results depend on our ability to obtain quality supplies on commercially reasonable terms. As we depend on a limited number of suppliers for materials, equipment and technology, we may experience supply disruptions if suppliers interrupt supply, increase prices or experience material adverse changes in their financial condition.

•Our financial results can be affected by fluctuations in exchange rates, principally in the value of the U.S. dollar.

•Our operating results may vary significantly from quarter to quarter and annually and may also differ significantly from our expectations or guidance.

•If our external silicon foundries or back-end subcontractors fail to perform, this could adversely affect our business prospects, financial condition and results of operations.

•Our manufacturing processes are highly complex, costly and potentially vulnerable to impurities, disruptions or inefficient implementation of production changes or interruptions that can significantly increase our costs and delay product shipments to our customers.

•We may experience quality problems from time to time that can result in decreased sales and operating margin and product liability or warranty claims.

•Disruptions in our relationships with any one of our key customers or distributors, and/or material changes in their strategy or financial condition or business prospects, could adversely affect our results of operations.

•We may experience delays in delivering our product and technology roadmaps as well as transformation initiatives.

•Our computer systems, including hardware, software, information and cloud-based initiatives, are subject to attempted security breaches and other cybersecurity threats, which, if successful, could adversely impact our business.

•We may be subject to theft, loss, or misuse of personal data about our employees, customers, or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings.

•Our business is dependent in large part on continued growth in the industries and segments into which our products are sold and on our ability to retain existing customers and attract new ones. A market decline in any of these industries, our inability to retain and attract customers, or customer demand for our products which differs from our projections, could have a material adverse effect on our results of operations.

•Market dynamics have driven, and continue to drive us, to a strategic repositioning.

•We depend on collaboration with other semiconductor industry companies, research organizations, universities, customers and suppliers to further our R&D efforts, and our business and prospects could be materially adversely affected by the failure or termination of such alliances.

•We depend on patents to protect our rights to our technology and may face claims of infringing the IP rights of others.

•We operate in many jurisdictions with highly complex and varied tax regimes. Changes in tax rules, new or revised legislation or the outcome of tax assessments and audits could cause a material adverse effect on our results.

•We receive public funding, and a reduction in the amount available to us or demands for repayment could increase our costs and impact our results of operations.

•Some of our production processes and materials are environmentally sensitive, which could expose us to liability and increase our costs due to environmental, health and safety laws and regulations or because of damage to the environment.

•Climate change, increased focus on social impact, and related sustainability regulations and initiatives, including our commitment to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027, could place additional burden on us and our operations.

•Individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

•Loss of key employees and the inability to continuously recruit and retain qualified employees could hurt our competitive position.

•The interests of our controlling shareholder, which is in turn indirectly controlled by the French and Italian governments, may conflict with other investors’ interests. In addition, our controlling shareholder may sell our existing common shares or issue financial instruments exchangeable into our common shares at any time.

•Our shareholder structure and our preference shares may deter a change of control.

•Any decision to reduce or discontinue paying cash dividends to our shareholders could adversely impact the market price of our common shares.

•We are required to prepare financial statements under IFRS and we also prepare Consolidated Financial Statements under U.S. GAAP, and such dual reporting may impair the clarity of our financial reporting.

•There are inherent limitations on the effectiveness of our controls.

•Because we are subject to the corporate law of The Netherlands, U.S. investors might have more difficulty protecting their interests in a court of law or otherwise than if we were a U.S. company.

Changes in, and uncertainty about, economic, political, legal, regulatory and social conditions pose a risk as consumers and businesses may postpone spending in response to factors such as curtailment of trade and other business restrictions, financial market volatility, interest rate fluctuations, recessions, shifts in inflationary and deflationary expectations, lower capital and productivity growth, unemployment, negative news, declines in income or asset values, natural catastrophes or weather events, and/or other factors. Such global, regional and local conditions are volatile, subject to frequent change and could have a material adverse effect on customer and end-market demand for our products, thus materially adversely affecting our business and financial condition.

We may also experience a shortage of certain semiconductor composites and delays in shipments due to supply chain disruptions caused by geopolitical conflicts, natural catastrophes, extreme weather events, or punctual power outages, and sales of our products may be negatively impacted by such events, both directly and indirectly through a reduction of sales or production by our customers in or to affected areas or otherwise.

Geopolitical conflicts have additionally resulted in certain countries imposing sanctions. Further consequences of such conflicts could include a risk of further sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on macro-economic conditions, currency exchange rates and financial markets. This could lead to disruption to international commerce and the global economy, and could have a negative effect on our ability to sell to, ship products to, collect payments from, and support customers in certain regions based on trade restrictions, embargoes, logistics restrictions and export control law restrictions.

The institution of trade tariffs globally, as well as the threat thereof, could negatively impact economic conditions, which could have negative repercussions for our business. In particular, trade protection and national security policies of the U.S. and Chinese governments, including tariffs, trade restrictions, export restrictions and the placing of companies on restricted entity lists, have and may continue to limit or prevent us from transacting business with certain of our Chinese customers or suppliers; limit, prevent or discourage certain of our Chinese customers or suppliers from transacting business with us; or make it more expensive to do so. If disputes were to arise under any of our agreements with other parties conducting business in China, the resolution of such dispute may be subject to the exercise of discretion by the Chinese government, or agencies of the Chinese government, which may have a material adverse effect on our business. In addition, we could face increased competition as a result of China's programs to promote a domestic semiconductor industry and supply chains (including the Made in China 2025 campaign). Various countries are imposing and increasing tariffs on imports, and may impose additional tariffs or further increase existing tariffs on imports, or impose other restrictions on imports in response to these measures by other countries.

Any or all of these measures or restrictions may impact our ability to service our customer base in a cost-effective manner.

Trade policy changes could trigger retaliatory actions by affected countries, which could have a negative impact on our ability to do business in affected countries or lead to reduced purchases of our products by foreign customers, leading to increased costs of components contained in our products, increased manufacturing costs of our products, currency exchange rate volatility, and higher prices for our products in foreign markets. Further, protectionist measures, laws or governmental policies may encourage our customers to relocate their manufacturing capacity or supply chain to their own respective countries or other countries, or require their respective contractors, subcontractors and relevant agents to do so, which could impair our ability to sustain our current level of productivity and manufacturing efficiency.

We, and the semiconductor industry as a whole, face greater risks due to the international nature of the semiconductor business, including in the countries where we, our customers or our suppliers operate, such as:

•instability of foreign governments, including the threat of war, military conflict, civil unrest, regime changes, mass migration and terrorist attacks;

•natural events such as severe weather, earthquakes and tsunamis, or the effects of climate change;

•epidemics or pandemics such as disease outbreaks and other health related issues;

•changes in, or uncertainty about, laws, regulations (including executive orders) and policies affecting trade and investment, including following Brexit and including through the imposition of trade and travel restrictions, government sanctions, local practices which favor local companies and constraints on investment;

•complex and varying government regulations and legal standards, particularly with respect to export control regulations and restrictions, customs and tax requirements, data privacy, IP anti-corruption, bribery, fraud and sanctions (including potential third-party product diversion risks into sanctioned countries or use for unauthorized purposes);

•differing practices of regulatory, tax, judicial and administrative bodies, including with regards to the interpretation of laws, governmental approvals, permits and licenses;

•water availability, usage and consumption levels, as well as recycling and discharge practices;

•constraints in the supply of electricity as a result of cost increases, reliability of infrastructure or due to extreme weather events, leading to power outages; and

•changes in, or uncertainty about, labor laws and human rights, and our ability to ensure compliance across our international supply chains.

The semiconductor industry is cyclical and has been subject to significant downturns from time to time, as a result of global economic conditions, as well as industry-specific factors, such as built-in excess capacity, fluctuations in product supply, product obsolescence and changes in end-customer preferences.

Downturns are typically characterized by reduction in overall demand, accelerated erosion of selling prices, reduced revenues and high inventory levels, any of which could result in a significant deterioration of our results of operations. Such macro-economic trends typically relate to the semiconductor industry as a whole rather than to the individual semiconductor markets to which we sell our products. To the extent that industry downturns are concurrent with the timing of new increases in production capacity or introduction of new advanced technologies in our industry, the negative effects on our business from such industry downturns may also be more severe.

We have experienced revenue volatility and market downturns in the past and expect to experience them in the future, which could have a material adverse impact on our results of operations and financial condition.

The recent increase in inflation rates in the markets in which we operate may lead us to experience higher costs related to labor, energy, water, transportation, wafer and other raw materials costs from suppliers. Our suppliers may raise their prices, and in the competitive markets in which we operate, we may not be able to make corresponding price increases to preserve our gross margins and profitability due to market conditions and competitive dynamics. Additionally, any such increase in prices may not be accepted by our customers.

Epidemics or pandemics may result in authorities imposing, and businesses and individuals implementing, numerous measures to try to contain the virus, including travel bans and restrictions, shelter-in-place and stay-at-home orders, quarantines and social distancing guidelines. This may negatively impact the ability of our suppliers to deliver on their commitments to us, our ability to ship our products to our customers and general consumer demand for our products may be negatively impacted by the pandemic and/or government responses thereto.

Many of our products and services are considered to be essential under national and local guidelines. As such, during the COVID-19 pandemic, we generally continued to operate in each of the jurisdictions where we were present. However, certain of our facilities were not able to operate at optimal capacity and any future similarly restrictive measures may have a negative impact on our operations, supply chain and transportation networks, and our products and services may not be considered to be essential in the future. In addition, our customers and suppliers may experience disruptions in their operations and supply chains, which could result in delayed, reduced, or cancelled orders, or collection risks, and which may adversely affect our results of operations and financial condition.

During an epidemic or pandemic, governments may look to re-direct resources and implement austerity measures in the future to balance public finances, which could result in reduced economic activity. Any resulting economic downturn could reduce overall demand for our products, accelerate the erosion of selling prices, lead to reduced revenues and higher inventory levels, any of which could result in a significant deterioration of our results of operations and financial condition.

An epidemic or pandemic may also lead to increased disruption and volatility in capital markets and credit markets. Unanticipated consequences of an epidemic or pandemic and resulting economic uncertainty could adversely affect our liquidity and capital resources in the future.

As a result of the cyclicality and volatility of the semiconductor industry, it is difficult to predict future developments in the markets we serve, and, in turn, to estimate requirements for production capacity. If our markets, start-up or ramp-ups in manufacturing operations are not efficiently executed, major customers or certain product designs or technologies do not perform as well as we have anticipated, demand is impacted by factors outside of our or our customers’ control, or if there is otherwise any future excess capacity by us or other semiconductor manufacturers, we risk unused capacity charges, price erosion, write-offs of inventories and losses on products that may adversely impact our operating results, and we could be required to undertake restructuring and transformation measures that may involve significant charges to our earnings. Furthermore, during certain periods, the global supply of semiconductor industry fabrication capacity may not be sufficient to meet the demand for semiconductor products. We may also experience increased demand in certain market segments and product technologies and any future shortage of our capacity and the capacity of our sub-contractors may lead to an increase in the lead times of our delivery to customers, us being required to enter into agreements with our suppliers with onerous terms such as take-or-pay arrangements, or us being unable to service some of our customers, which may result in adverse effects on our customer relationships and in liability claims.

Further, as a result of this supply imbalance, the industry in general may experience a high level of profitability and gross margins, which may not be sustainable over the long-term.

We compete in different product lines to various degrees on certain characteristics, for example, price, technical performance, product features, product design, product availability, process technology, manufacturing capabilities and sales and technical support. Given the intense competition in the semiconductor industry, if our products do not meet market requirements based on any of these characteristics, our business, financial condition and results of operations could be materially adversely affected. Our competitors may have a stronger presence in key markets and geographic regions, greater name recognition, larger customer bases, greater government support and greater financial, R&D, sales and marketing, manufacturing, distribution, technical and other resources than we do. These competitors may be able to adapt more quickly to changes in the business environment, to new or emerging technologies and to changes in customer requirements.

The semiconductor industry is intensely competitive and characterized by the high costs associated with developing marketable products and manufacturing technologies as well as high levels of investment in production capabilities. As a result, the semiconductor industry has experienced, and is expected to continue to experience, significant vertical and horizontal consolidation among our suppliers, competitors and customers. Consolidation in the semiconductor industry could erode our market share, negatively impact our ability to compete and require us to increase our R&D effort, engage in mergers and acquisitions and/or restructure our operations.

Our operations are characterized by high fixed or other costs which are difficult to reduce, including costs related to manufacturing, particularly as we operate our own manufacturing facilities, and the employment of our highly skilled workforce. When demand for our products decreases, competition increases or we fail to forecast demand accurately, we may be driven to reduce prices and we may not always be able to decrease our total costs in line with resulting revenue declines. As a result, the costs associated with our operations may not be fully absorbed, leading to unused capacity charges, higher average unit costs and lower gross margins, adversely impacting our results.

As a result of our choice to maintain control of a large portion of our manufacturing technologies and capabilities, we may require significant capital expenditure to maintain or upgrade our facilities if our facilities become inadequate in terms of capacity, flexibility and location. We monitor our capital expenditures taking into consideration factors such as trends in the semiconductor market, customer requirements and capacity utilization. These capital expenditures may increase in the future if we decide to upgrade or expand the capacity of our manufacturing facilities, purchase or build new facilities or increase investments supporting key strategic initiatives.

For instance, we may be unable to successfully develop, maintain and operate large infrastructure projects. Such increased capital expenditures associated with large infrastructure projects and strategic initiatives might not achieve profitability or we may be unable to utilize infrastructure projects to full capacity. There can also be no assurance that future market demand and products required by our customers will meet our expectations. We also may need to invest in other companies, in IP and/or in technology developed either by us or by third parties to maintain or improve our position in the market or to reinforce our existing business. Failure to invest appropriately and in a timely manner or to successfully integrate any recent or future business acquisitions may prevent us from achieving the anticipated benefits and could have a material adverse effect on our business and results of operations.

The foregoing may require us to secure additional financing, including through the issuance of debt, equity or both. The timing and the size of any new share or bond offering would depend upon market conditions as well as a variety of other factors. In addition, the capital markets may from time to time offer terms of financing that are particularly favorable. We cannot exclude that we may access the capital markets opportunistically to take advantage of market conditions. Any such transaction or any announcement concerning such a transaction could materially impact the market price of our common shares. If we are unable to access capital on acceptable terms, this may adversely affect our business and results of operations.

Our ability to meet our customers’ demand to manufacture our products depends upon obtaining adequate supplies of quality materials on a timely basis and on commercially reasonable terms. Certain materials are available from a limited number of suppliers or only from a limited number of suppliers in a particular region. We purchase certain materials whose prices on the world markets have fluctuated significantly in the past and may fluctuate significantly in the future. Although supplies for most of the materials we currently use are adequate, shortages could occur in various essential materials due to interruption of supply or increased demand in the industry. For instance, epidemics or pandemics could cause disruptions from the temporary closure of suppliers’ facilities or delays and reduced export or shipment of various materials. Geopolitical conflicts could also disrupt supply chains and cause shortages of certain semiconductor components and corresponding delays in shipments. Any such shortage may impact different geographical markets disproportionately, leading to shortages or unavailability of supplies in specific areas and higher transportation costs. In addition, the costs of certain materials may increase due to recent inflationary rates and market pressures and we may not be able to pass on such cost increases to our customers.

We also purchase semiconductor manufacturing equipment and third-party licensed technology from a limited number of suppliers and providers and, because such equipment and technology are complex, it is difficult to replace one supplier or provider with another or to substitute one piece of equipment or type of technology for another. In addition, suppliers and providers may extend lead times, limit our supply, increase prices or change contractual terms related to certain manufacturing equipment and third-party licensed technology, any of which could adversely affect our results. Furthermore, suppliers and technology providers tend to focus their investments on providing the most technologically advanced equipment, materials and technology and may not be able to address our requirements for equipment, materials or technology of older generations. Although we work closely with our suppliers and providers to avoid such shortages, there can be no assurance that we will not encounter these problems in the future.

Consolidation among our suppliers or vertical integration among our competitors may limit our ability to obtain sufficient quantities of materials, equipment and/or technology on commercially reasonable terms and engage in mergers and acquisitions. In certain instances, we may be required to enter into agreements with our suppliers with onerous terms, such as take-or-pay arrangements.

If we are unable to obtain supplies of materials, equipment or technology in a timely manner or at all, or if such materials, equipment or technology prove inadequate or too costly, our results of operations could be adversely affected.

Currency exchange rate fluctuations affect our results of operations because our reporting currency is the U.S. dollar, in which we receive the major portion of our revenues, while, more importantly, we incur a limited portion of our revenue and a significantly higher portion of our costs in currencies other than the U.S. dollar. A significant variation of the value of the U.S. dollar against the principal currencies that have a material impact on us (primarily the Euro, but also certain other currencies of countries where we have operations, such as the Singapore dollar) could result in a favorable impact, net of hedging, on our net income in the case of an appreciation of the U.S. dollar, or a negative impact, net of hedging, on our net income if the U.S. dollar depreciates relative to these currencies, in particular with respect to the Euro.

In order to reduce the exposure of our financial results to the fluctuations in exchange rates, our principal strategy has been to balance as much as possible the proportion of sales to our customers denominated in U.S. dollars with the amount of purchases from our suppliers denominated in U.S. dollars and to reduce the weight of the other costs, including depreciation, denominated in Euros and in other currencies. In order to further reduce our exposure to U.S. dollar exchange rate fluctuations, we have hedged certain line items on our consolidated statements of income, in particular with respect to a portion of the cost of sales, the majority of the R&D expenses and certain SG&A expenses located in the Euro zone. We also hedge certain manufacturing costs, included within the cost of sales, denominated in Singapore dollars. There can be no assurance that our hedging transactions will prevent us from incurring higher Euro-denominated manufacturing costs and/or operating expenses when translated into our U.S. dollar-based accounts.

Our operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability or lead to significant variability of our operating results from one period to the next. These factors include changes in demand from our key customers, capital requirements, inventory management, availability of funding, competition, new product developments, start of adoption of our new products by customers, technological changes, manufacturing or supplier issues and effective tax rates. In addition, in periods of industry overcapacity or when our key customers encounter difficulties in their end-markets or product ramps, orders are more exposed to cancellations, reductions, price renegotiation or postponements, which in turn reduce our ability to forecast the next quarter or full year production levels, revenues and margins. Although backlog may provide an indication of future orders, quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery and, in some cases, to cancellation due to changes in customer needs or industry conditions, as well as seasonality, among other things. As a result, we may not meet our financial targets, which could in turn have an impact on our reputation or brand. For these reasons and others that we may not yet have identified, our revenues and operating results may differ materially from our expectations or guidance as visibility is reduced.

We currently use external silicon foundries and back-end subcontractors for a portion of our manufacturing activities. Any limitation on the ability of our external silicon foundries and back-end subcontractors to satisfy our demand may cause our results of operations and ability to satisfy the demand of our customers to suffer.

Likewise, if we are unable to meet our commitments to silicon foundries and back-end subcontractors, our results of operations could suffer. Prices for these services also vary depending on capacity utilization rates at our external silicon foundries and back-end subcontractors, quantities demanded and product and process technology. Such outsourcing costs can vary materially and, in cases of industry shortages, they can increase significantly, negatively impacting our business prospects, financial condition and results of operations.

Our manufacturing processes are highly complex, require advanced and increasingly costly equipment and are continuously modified or maintained in an effort to improve yields and product performance and lower the cost of production.

Furthermore, impurities or other difficulties in the manufacturing process can lower yields, interrupt production or result in scrap. As system complexity and production changes have increased and sub-micron technology has become more advanced, manufacturing tolerances have been reduced and requirements for precision have become even more demanding. We have from time to time experienced bottlenecks and production difficulties that have caused delivery delays and quality control problems. There can be no assurance that we will not experience bottlenecks or production, transition or other difficulties in the future.

In addition, we are exposed to risks related to interruptions of our manufacturing processes. If any of our property or equipment is damaged or otherwise rendered unusable or inoperable due to accident, cyberattack or otherwise this could result in interruptions which could have a material adverse effect on our business, financial condition and results of operations.

We sell complex products that may not in each case comply with specifications or customer requirements, or may contain design or manufacturing defects, that could cause personal injury, property damage or security risks that could be exploited by unauthorized third parties hacking, corrupting or otherwise obtaining access to our products, including the software loaded thereon by us, our suppliers or our customers. Although our general practice is to contractually limit our liability to the repair, replacement or refund of defective products, we occasionally agree to contractual terms with key customers in which we provide extended warranties and accordingly we may face product liability, warranty, delivery failure, and/or other claims relating to our products that could result in significant expenses relating to compensation payments, product recalls or other actions related to such extended warranties and/or to maintain good customer relationships, which could result in decreased sales and operating margin and other material adverse effects on our business. Costs or payments we may make in connection with warranty and other claims or product recalls may adversely affect our results of operations. There can be no assurance that we will be successful in maintaining our relationships with customers with whom we incur quality problems. Furthermore, if litigation occurs we could incur significant costs and liabilities to defend ourselves against such claims. The industry has experienced a rise in premiums and deductibles with regards to insurance policies. These may continue to increase and insurance coverage may also correspondingly decrease. If litigation occurs and damages are awarded against us, there can be no assurance that our insurance policies will be available or adequate to protect us against such claims.

A substantial portion of our sales is derived from a limited number of customers and distributors. The level of sales booked by our customers and distributors varies year to year and there can be no assurance that our customers or distributors will continue to book the same level of sales with us that they have in the past, will continue to succeed in the markets they serve and will not purchase competing products over our products. Many of our key customers and distributors operate in cyclical businesses that are also highly competitive, and their own market positions may vary considerably. In recent years, some of our customers have vertically integrated their businesses. Such vertical integrations may impact our business. Our relationships with the newly formed entities could be either reinforced or jeopardized by the integration. If we are unable to maintain or increase our market share with our key customers or distributors, or if they were to increase product returns or fail to meet payment obligations, our results of operations could be materially adversely affected. Certain of our products are customized to our customers’ specifications. If customers do not purchase products made specifically for them, we may not be able to recover a cancellation fee from our customers or resell such products to other customers. In addition, the occurrence of epidemic or pandemic outbreaks could affect our customers. The geographic spread of epidemics or pandemics may be difficult to predict and adverse public health impacts on our customers could negatively affect our results.

Our industry adapts to technological advancements and it is likely that new products, equipment, processes and service methods, including transformation initiatives related to digitalization, are in the process of being implemented. Any failure by us to manage our data governance processes could undermine our initiatives related to digitalization and any failure by us to react to changes or advances in existing technologies and processes as we develop and invest in our product, technology and transformation roadmaps could materially delay the introduction of new solutions. If we are not able to execute on these roadmaps on a timely basis or at an acceptable cost this could result in loss of competitiveness of our solutions, decreased revenue and a loss of market share.

We have, from time to time, detected and experienced attempts by others to gain unauthorized access to our computer systems and networks. The reliability and security of our information technology infrastructure and software, including our AI technology, and our ability to expand and continually update technologies, including to transition to cloud-based technologies, in response to our changing needs is critical to our business. In the current environment, there are numerous and evolving risks to cybersecurity, including criminal hackers, state-sponsored intrusions, terrorism, industrial espionage, employee malfeasance, vandalism and human or technological error. Computer hackers and others routinely attempt to breach the security of technology products, services, and systems, and those of our customers, suppliers, partners and providers of third-party licensed technology, and some of those attempts may be successful.

The attempts to breach our systems, including our cloud-based systems, and to gain unauthorized access to our information technology systems are becoming increasingly more sophisticated, are often well-financed, in some cases supported by state actors, and are designed to not only track, but also to evad detection. These attempts may include covertly introducing malware into our computers, including those in our manufacturing operations, and impersonating unauthorized users, among others. For instance, employees and former employees, in particular former employees who become employees of our competitors or customers, may misappropriate, use, publish or provide to our competitors or customers our IP and/or proprietary or confidential business information.

Also, third parties may attempt to register domain names similar to our brands or website, which could cause confusion and divert online customers away from our products.

Since the techniques used by cyber attackers change frequently and are often not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. Our use of AI technology may also increase vulnerability to cybersecurity risks, including through unauthorized use or misuse of AI tools and bad inputs or logic or the introduction or malicious code incorporated into AI generated code. AI and machine learning also may be used for certain cybersecurity attacks, improving or expanding the existing capabilities of threat actors in manners we cannot predict at this time, resulting in greater risks of security incidents and breaches.

Such security incidents and breaches could result in, for example, unauthorized access to, disclosure, modification, misuse, loss, or destruction of our, our customer, or other third-party data or systems, theft of our trade secrets and other sensitive or confidential data, including personal information and IP, system disruptions, and denial of service. In the event of such breaches, we, our customers or other third parties could be exposed to potential liability, litigation, and regulatory action, as well as the loss of existing or potential customers, damage to our reputation, and other financial loss and such breaches could also result in losing existing or potential customers in connection with any actual or perceived security vulnerabilities in our systems. In addition, the cost and operational consequences of responding to breaches and implementing remediation measures could be significant. As these threats continue to develop and grow, we have been adapting and strengthening our security measures.

As a result of work-from-home policies that we have undertaken, there has been additional reliance placed on our IT systems and resources. The resulting reliance on these resources, and the added need to communicate by electronic means, could increase our risk of cybersecurity incidents.

Geopolitical instability has been associated with an increase in cybersecurity incidents. This may result in a higher likelihood that we may experience direct or collateral consequences from cybersecurity conflicts between nation-states or other politically motivated actors targeting critical technology infrastructure.

U.S. and foreign regulators have increased their focus on cybersecurity vulnerabilities and risks, and customers and service providers are increasingly demanding more rigorous contractual certification and audit provisions regarding cybersecurity and data governance. This may result in an increase of our overall compliance burden due to increasingly onerous obligations and leading to significant expense. There may also be shorter deadlines in which to notify the authorities of data breaches and ever-increasing fines and penalties for businesses that fail to respond swiftly and appropriately to cyberattacks. Any failure to comply could also result in proceedings against us by regulatory authorities or other third parties.

We continue to increase the resources we allocate to implementing, maintaining and/or updating security systems to protect data and infrastructure and to raising security awareness among those having access to our systems. However, these security measures cannot provide absolute security and there can be no assurance that our employee training, operational, and other technical security measures or other controls will detect, prevent or remediate security or data breaches in a timely manner or otherwise prevent unauthorized access to, damage to, or interruption of our systems and operations.

We regularly evaluate our IT systems and business continuity plan to make enhancements and periodically implement new or upgraded systems, including the transition and migration of our data systems to cloud-based platforms and critical system migration. Any delay in the implementation of, or disruption in the transition to different systems could adversely affect our ability to record and report financial and management information on a timely and accurate basis and could impact our operations and financial position. In addition, a miscalculation of the level of investment needed to ensure our technology solutions are current and up-to-date as technology advances and evolves could result in disruptions in our business should the software, hardware or maintenance of such items become out-of-date or obsolete and the costs of upgrading our cybersecurity systems and remediating damages could be substantial.

We may also be adversely affected by security breaches related to our equipment providers and providers of IT services or third-party licensed technology. As a global enterprise, we could also be impacted by existing and proposed laws and regulations, as well as government policies and practices related to cybersecurity, data privacy and data protection. Additionally, cyberattacks or other catastrophic events resulting in disruptions to or failures in power, information technology, communication systems or other critical infrastructure could result in interruptions or delays to us, our customers, or other third-party operations or services, financial loss, potential liability, damage to our reputation and could also affect our relationships with our customers, suppliers and partners. See Section 3.3.1.4 (Illustrative risk management measure - Protection against cyber threats).

We have, from time to time, detected and experienced attempts by others to gain unauthorized access to our computer systems and networks, may experience successful breached of our computer systems in the future, and may be adversely affected by security breaches related to our equipment providers and providers of IT services or third-party licensed technology. The theft, loss or misuse of personal data processed by us or for us, as a result of any such breaches or otherwise, could result in significantly increased security costs or potential liability, litigation and regulatory action, as well as the loss of existing or potential customers

Further, with increasing digitalization, data privacy-related legislations are rapidly evolving around the globe which may have a negative impact on our business if interpreted or implemented in a manner that is inconsistent from country to country and inconsistent with the current policies and practices of our customers or business partners. We may also have to change the manner in which we contract with our business partners, store and transfer information and otherwise conduct our business, which could increase our costs and reduce our revenues.

The demand for our products depends significantly on the demand for our customers’ end products. Growth of demand in the industries and segments into which our products are sold fluctuates significantly and is driven by a variety of factors, including consumer spending, consumer preferences, the development and acceptance of new technologies and prevailing economic conditions. Changes in our customers’ markets and in our customers’ respective shares in such markets could result in slower growth and a decline in demand for our products. In addition, if projected industry growth rates do not materialize as forecasted, our spending on process and product development ahead of market acceptance could have a material adverse effect on our business, financial condition and results of operations.

Our business is dependent upon our ability to retain existing customers. In 2024 our largest customer, Apple, accounted for 14.5% of our total revenues. While we do not believe to be dependent on any one customer or group of customers, the loss of key customers or important sockets at key customers could have an adverse effect on our results of operations and financial condition.

Our existing customers’ product strategy may change from time to time and/or product specifications may change on short-time product life cycles and we have no certainty that our business, financial position and results of operations will not be affected. Our business is also dependent upon our ability to attract new customers.

There can be no assurance that we will be successful in attracting and retaining new customers, or in adequately projecting customer demand for our products. Our failure to do so could materially adversely affect our business, financial condition and results of operations.

In recent years, we have undertaken several initiatives to reposition our business. Our strategies to improve our results of operations and financial condition have led us, and may in the future lead us, to acquire businesses that we believe to be complementary to our own, to divest ourselves of or wind down activities that we believe do not serve our longer term business plans, or to enter into partnerships or joint ventures to enter into or strengthen our position in certain markets and increase our scale of operations. Our potential acquisition strategies depend in part on our ability to identify suitable acquisition targets, finance their acquisition, obtain approval by our shareholders and obtain required regulatory and other approvals. Our potential divestiture strategies depend in part on our ability to compete and to identify the activities in which we should no longer engage, obtain the relevant approvals pursuant to our governance process and then determine and execute appropriate methods to divest of them. Our actual or potential partnerships and joint venture strategies depend in part on our ability to execute sales and operations plans alongside our partner or joint venture.

We are constantly monitoring our product portfolio and cannot exclude that additional steps in this repositioning process may be required. Furthermore, we cannot assure that any strategic repositioning of our business, including executed and possible future acquisitions, dispositions or partnerships and joint ventures, will be successful and will not result in impairment, restructuring charges and other related closure costs. The realization of our identified opportunities, including sustainability opportunities, may result in exposure to new risks. Should we not be able to anticipate these risks, or should the anticipated benefits not be realized from these opportunities, our business and strategy could be adversely affected.

Acquisitions, divestitures, partnerships and joint ventures involve a number of risks that could adversely affect our operating results and financial condition, including, in respect of acquisitions and divestitures, the inability for us to successfully integrate businesses or teams that we acquire with our culture and strategies on a timely basis or at all, and the potential requirement for us to record charges related to the goodwill or other long-term assets associated with the acquired businesses. There can be no assurance that we will be able to achieve the full scope of the benefits we expect from a particular acquisition, divestiture, partnership, joint venture or investment. Our business, financial condition and results of operations may suffer if we fail to coordinate our resources effectively to manage both our existing businesses and any acquired businesses. In addition, the financing of future acquisitions, divestitures, partnerships or joint ventures may negatively impact our financial position, including our ability to pay a dividend and/or repurchase our shares, and our credit rating and we could be required to raise additional funding.

Other risks associated with acquisitions include the assumption of potential liabilities, disclosed or undisclosed, associated with the business acquired, which liabilities may exceed the amount of indemnification available from the seller, potential inaccuracies in the financials of the business acquired, and our ability to retain customers of an acquired entity, its business or industrialize an acquired process or technology. Identified risks associated with divestitures include loss of activities and technologies that may have complemented our remaining businesses or operations and loss of important services provided by key employees that are assigned to divested activities.

Our success depends on our ability to introduce innovative new products and technologies to the marketplace on a timely basis. In light of the high levels of investment required for R&D activities, we depend in certain instances on collaborations with other semiconductor industry companies, research organizations, universities, customers and suppliers to develop or access new technologies.

Such collaboration provides us with a number of important benefits, including the sharing of costs, reductions in our own capital requirements, acquisitions of technical know-how and access to additional production capacities. However, there can be no assurance that our collaboration efforts will be successful and allow us to develop and access new technologies in due time, in a cost-effective manner and/or to meet customer demands. If a particular collaboration terminates before our intended goals are accomplished we may incur additional unforeseen costs, and our business and prospects could be adversely affected. Furthermore, if we are unable to develop or otherwise access new technologies, whether independently or in collaboration with another industry participant, we may fail to keep pace with the rapid technology advances in the semiconductor industry, our participation in the overall semiconductor industry may decrease and we may also lose market share.

We depend on patents and other IP rights to protect our products and our manufacturing processes against misappropriation by others. The process of seeking patent protection can be long and expensive, and there can be no assurance that we will receive patents from currently pending or future applications. Even if patents are issued, they may not be of sufficient scope or strength to provide meaningful protection or any commercial advantage. In addition, effective IP protection may be unavailable or limited in some countries. Our ability to enforce one or more of our patents could be adversely affected by changes in patent laws, laws in certain foreign jurisdictions that may not effectively protect our IP rights or by ineffective enforcement of laws in such jurisdictions. Competitors may also develop technologies that are protected by patents and other IP and therefore either be unavailable to us or be made available to us subject to adverse terms and conditions. We have in the past used our patent portfolio to negotiate broad patent cross-licenses with many of our competitors enabling us to design, manufacture and sell semiconductor products, without concern of infringing patents held by such competitors. We may not in the future be able to obtain such licenses or other rights to protect necessary IP on favorable terms for the conduct of our business, and such failure may adversely impact our results of operations. Such cross-license agreements expire from time to time and there is no assurance that we can or we will extend them.

We have from time to time received, and may in the future receive, communications alleging possible infringement of third-party patents and other IP rights. Some of those claims are made by so-called non-practicing entities against which we are unable to assert our own patent portfolio to lever licensing terms and conditions. Competitors with whom we do not have patent cross-license agreements may also develop technologies that are protected by patents and other IP rights and which may be unavailable to us or only made available on unfavorable terms and conditions. We may therefore become involved in costly litigation brought against us regarding patents and other IP rights. IP litigation may also involve our customers who in turn may seek indemnification from us should we not prevail and/or who may decide to curtail their orders for those of our products over which claims have been asserted. Such lawsuits may therefore have a material adverse effect on our business. We may be forced to stop producing substantially all or some of our products or to license the underlying technology upon economically unfavorable terms and conditions or we may be required to pay damages for the prior use of third-party IP and/or face an injunction.

The outcome of IP litigation is inherently uncertain and may divert the efforts and attention of our management and other specialized technical personnel. Such litigation can result in significant costs and, if not resolved in our favor, could materially and adversely affect our business, financial condition and results of operations.

We operate in many jurisdictions with highly complex and varied tax regimes. Changes in tax rules, new or revised legislation or the outcome of tax assessments and audits could have a material adverse effect on our results.

In 2021, the OECD and the G20 inclusive gramework on BEPS agreed to a two-pillar solution to address the tax challenges arising from the digitalization of the economy. Pillar I is a set of proposals to revisit tax allocation rules in a changed economy. The intention is that a portion of a multinationals' residual profit is taxed in the jurisdiction where revenue is sourced.

Pillar II enforces a global minimum corporate income tax at an effective rate of 15% for large multinationals. On December 20, 2021 the OECD published the Global Anti-Base Erosion Model Rules ("GloBe Rules") for Pillar II. On December 22, 2021, the European Commission published a legislative proposal for Pillar II ("Pillar II").

On December 15, 2022, the Council formally adopted Pillar II. TPillar II aims at consistently implementing among all 27 member states the GloBe Rules. The majority of the EU Member States transposed Pillar II into their national laws and started applying the Pillar II measures as from the fiscal years beginning on or after December 31, 2023. The Netherlands transposed the Pillar II into its national legislation with effect from December 31, 2023 pursuant to the Dutch Minimum Tax Act 2024 (Wet minimumbelasting 2024). On January 15, 2025, the OECD published new guidance for which we are currently assessing the potential impact. We are continuously monitoring the EU Pillar II legislation and related guidance, which are still volving and may have an impact on our EU Pillar II tax charge in future periods.

The tax impact of the Pillar I rules is monitored to determine the potential effect on our results and to ensure compliance when the legislation is effective.

Our tax rate is variable and depends on changes in the level of operating results within various local jurisdictions and on changes in the applicable taxation rates of these jurisdictions, as well as changes in estimated tax provisions due to new events. We currently receive certain tax benefits or benefit from net operating losses cumulated in prior years in some countries, and these benefits may not be available in the future due to changes in the local jurisdictions or credits on net operating losses being no longer available due to either full utilization or expiration of the statute of limitations in such jurisdictions. As a result, our effective tax rate could increase and/or our benefits from carrying forward net operating losses could affect our deferred tax assets in certain countries in the coming years. In addition, the acquisition or divestiture of businesses in certain jurisdictions could materially affect our effective tax rate.

We evaluate our deferred tax asset position and the need for a valuation allowance on a regular basis. The ultimate realization of deferred tax assets is dependent upon, among other things, our ability to generate future taxable income that is sufficient to utilize in certain jurisdictions loss carry-forwards or tax credits before their expiration. The recorded amount of total deferred tax assets could be reduced, which could have a material adverse effect on our results of operations and financial position, if our estimates of projected future taxable income and benefits from available tax strategies are reduced as a result of a change in business condition or in management’s plans or due to other factors, such as changes in tax laws and regulations.

We are subject to the possibility of loss contingencies arising out of tax claims, assessment of uncertain tax positions and provisions for specifically identified income tax exposures. We are also subject to tax audits in certain jurisdictions. There can be no assurance that we will be successful in resolving potential tax claims that result from these audits, which could result in material adjustments in our tax positions.

We record provisions on the basis of the best current understanding; however, we could be required to record additional provisions in future periods for amounts that cannot currently be assessed. Our failure to do so and/or the need to increase our provisions for such claims could have a material adverse effect on our results of operations and our financial position.

Our operating results can vary significantly due to impairment of goodwill, other intangible assets and equity investments booked pursuant to acquisitions and the timeframe required to foster and realize synergies thereof, joint venture agreements and the purchase of technologies and licenses from third parties, as well as to impairment of tangible assets due to changes in the business environment. Because the market for our products is characterized by rapidly changing technologies, significant changes in the semiconductor industry, and the potential failure of our business initiatives, our future cash flows may not support the value of goodwill, tangible assets and other intangibles registered in our consolidated balance sheets.

We have in the past obtained public funding, primarily to support our proprietary R&D for technology investments and investments in cooperative R&D ventures, and expect to obtain public funding in the future, mainly from EU member states (including France, Italy and Malta) as well as from China. The public funding we receive is subject to periodic review by the relevant authorities and there can be no assurance that we will continue to benefit from such programs at current levels or that sufficient alternative funding will be available if we lose such support. If any of the public funding programs we participate in are curtailed or discontinued and we do not reduce the relevant R&D or other costs, this could have a material adverse effect on our business. Furthermore, to receive public funding, we enter into agreements which require compliance with extensive regulatory requirements and set forth certain conditions relating to the funded programs. If we fail to meet the regulatory requirements or applicable conditions, we may, under certain circumstances, be required to refund previously received amounts, which could have a material adverse effect on our results of operations. If there are changes in the public funding we receive this could increase the net costs for us to, amongst others, continue investing in R&D at current levels and could result in a material adverse effect on our results of operations.

A change in the landscape in public funding may also affect our business. For example, the European Chips Act which entered into force on September 21, 2023 and is designed to bolster Europe’s competitiveness and resilience in semiconductor technologies and applications and any similar proposals in other regions, may provide public funding towards manufacturing activities of semiconductors. It is yet to be seen whether this would impact the amount of public funding currently available to us for our R&D or other investments and ventures, but any reduction in said funding will result in a material adverse effect on our results of operations. Further, this may result in new or existing competitors benefiting from such funding and could also have an impact on the competitive landscape in our industry.

We are subject to various laws and regulations, as well as increasing focus from our stakeholders regarding EHS matters, including the use, storage, discharge and disposal of chemicals, gases and other hazardous substances used in our operations. Addressing such focus from stakeholders, as well as compliance with such laws and regulations could adversely affect our manufacturing costs or product sales by requiring us to acquire costly equipment, materials or GHG allowances, or to incur other significant expenses in adapting our manufacturing processes or waste and emission disposal processes. In addition, we are working towards transitioning into an increasingly circular economy model through which we aim to continue to reduce our waste, and increase the use of recycled raw materials in our manufacturing processes.

Failure to successfully implement such a model, or a reduction in stakeholder interest in circular economy models, may result in increased costs and stakeholder dissatisfaction.

Separately, several jurisdictions have recently sought to restrict the use of certain substances found in process chemicals, parts, components and other materials used in semiconductor manufacturing and which have limited technically and commercially feasible alternatives. Any such restriction in our ability to access materials necessary for the manufacturing of our products may adversely affect our results of operations. Furthermore, environmental claims or our failure to comply with present or future regulations could result in the assessment of damages or imposition of fines against us, suspension of production or a cessation of operations. Failure by us to control the use of, or adequately restrict the discharge of, chemicals or hazardous substances could subject us to future liabilities.

As climate change issues become more pronounced, we may correspondingly face increased regulation and also expectations from our stakeholders to take actions beyond existing regulatory requirements to minimize our impact on the environment and mitigate climate change related effects. The semiconductor manufacturing process has historically contributed to direct GHG emissions by utilizing perfluorocarbons, which may lead to new or increased regulation of such compounds. In order to address such regulation, we may be required to adapt our production processes or purchase additional equipment or carbon offsets, leading to increased costs. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027.

To meet these additional regulatory requirements, expectations, and goals, we will need to continue to deploy additional equipment, introduce process changes, utilize alternative suppliers and materials, and take other similar actions, some or all of which may require us to incur additional costs which could result in a material adverse effect on our results of operations and our financial condition. To address climate change mitigation of our own operations, we may resort to purchasing renewable energy, and purchasing carbon credits. In addition, if we fail to meet these requirements, expectations, or goals, or foster additional sustainability initiatives, we may experience reputational risk which could impact our ability to attract and retain customers, employees, and investors.

Further, our sites, as well as those of our partners along the supply chain, may be exposed to changing and/or increasing physical risks resulting from climate change that are either chronic (induced by longer-term shifts in climate patterns, such as sea level rise or constraints in the availability of water, changing temperature, wind or precipitation patterns) or acute (event-driven such as cyclones, hurricanes or heat waves). In the context of the transition to a lower-carbon economy, we will likely be exposed to further policy, legal, technology, and market transition risks. We have already seen further policy developments in this area in the form of Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18, 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (the “EU Taxonomy Regulation”), which entered into force on July 12, 2020. As a result of the EU Taxonomy Regulation, we must disclose information on how and to what extent our activities are associated with economic activities that qualify as environmentally sustainable.

Enhanced focus on issues concerning the protection of human rights, labor laws, environmental justice and climate change are resulting in a more complex regulatory environment, leading to potential additional legal risks, penalties or taxes. Directive (EU) 2022/2464 of the European Parliament and of the Council of December 14, 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (the “CSRD”), which entered into force on January 5, 2023, strengthens the rules regarding social and environmental information that is required to be reported.

The CSRD seeks to provide investors and other stakeholders with access to the information they need to assess investment risks arising from climate change, social impact, and other sustainability topics, including mandatory supply chain due diligence requirements and new third-party assurance obligations. Should our partners not comply with current regulations, their performance may detrimentally impact our own results on climate change mitigation, social impact, energy efficiency, water use, chemicals and pollution management, or waste disposal. Moreover, if our partners are unable to meet our climate change, social impact and sustainability criteria, we may engage with alternative partners at a higher cost.

The requirements of the CSRD are likely to overlap in scope and diverge in content with the rules of other jurisdictions to which we may be subject. If our disclosure metrics relating to climate change and other sustainability topics are lower than those of our peers in the industry, or are otherwise regarded as insufficient, this may lead to reputational risk which may lead to onward financial repercussions such as a decrease in share price or difficulty in raising capital.

This enhanced focus and increased regulations and initiatives, as well as related stakeholder expectations, have been and may continue to be subject to rapid and extensive change or reversal, and have resulted and may result in conflicts between regulatory regimes and stakeholders.

Our standard terms and conditions of sale state that our products are not intended for certain uses. Our calculations for the anticipated GHG emissions reductions from the use of our products are based on certain common but significant assumptions, such as that all products are powered by grid electricity. Misuse of our products, or any deviation from our products’ anticipated uses, could result in difference in performance, decrease in product lifespan, product malfunction, and an increase in energy consumption. Any such instances of misuse may lead to a failure to achieve our disclosed emission-reduction goals, adverse publicity, and may lead to legal action.

Our success depends to a significant extent upon our key executives and R&D, engineering, marketing, sales, manufacturing, support and other personnel. Our success also depends upon our ability to continue to identify, attract, retain and motivate highly trained and skilled engineering, technical and professional personnel in a competitive recruitment environment, as well our ability to ensure the smooth succession and continuity of business with newly hired and promoted personnel. For instance, in highly specialized areas, it may become more difficult to retain employees.

Our employee hiring and retention also depend on our ability to build and maintain a diverse and inclusive workplace culture and be viewed as an employer of choice. We intend to continue to devote significant resources to recruit, train and retain qualified employees, however, we may not be able to attract, obtain and retain these employees, which may affect our growth in future years and the loss of the services of any of these key personnel without adequate replacement or the inability to attract new qualified personnel could have a material adverse effect on us.

We understand that as of December 31, 2024, STMicroelectronics Holding N.V. (“ST Holding”), owned 250,704,754 shares, or approximately 27.5%, of our issued common shares. ST Holding may therefore be in a position to effectively control the outcome of decisions submitted to the vote at our shareholders’ meetings, including but not limited to the appointment of the members of our Managing and Supervisory Boards (the "Managing Board" and the "Supervisory Board", respectively).

We have been informed that ST Holding’s shareholders, each of which is ultimately controlled by the French or Italian government, are party to a shareholders agreement (the “STH Shareholders Agreement”), which governs relations between them. We are not a party to the STH Shareholders Agreement. The STH Shareholders Agreement includes provisions requiring the unanimous approval by the shareholders of ST Holding before ST Holding can vote its shares in our share capital, which may give rise to a conflict of interest between our interests and investors’ interests, on the one hand, and the (political) interests of ST Holding’s shareholders, on the other hand. Our ability to issue new shares or other securities giving access to our shares may be limited by ST Holding’s desire to maintain its shareholding at a certain level and our ability to buy back shares may be limited by ST Holding due to a Dutch law requiring one or more shareholders acquiring 30% or more of our voting rights to launch a tender offer for our outstanding shares.

The STH Shareholders Agreement also permits our respective French and Italian indirect shareholders to direct ST Holding to dispose of its stake in us at any time, thereby reducing the current level of their respective indirect interests in our common shares. Sales of our common shares or the issuance of financial instruments exchangeable into our common shares or any announcements concerning a potential sale by ST Holding could materially impact the market price of our common shares depending on the timing and size of such sale, market conditions as well as a variety of other factors.

We have an option agreement in place with an independent foundation, whereby the foundation can acquire preference shares in the event of actions which the board of the independent foundation determines would be contrary to our interests, our shareholders and our other stakeholders and which in the event of a creeping acquisition or offer for our common shares are not supported by our Managing Board and Supervisory Board. In addition, our shareholders have authorized us to issue additional capital within the limits of the authorization by our AGM, subject to the requirements of our Articles of Association, without the need to seek a specific shareholder resolution for each capital increase. Accordingly, an issue of preference shares or new shares may make it more difficult for a shareholder to obtain control over our general meeting of shareholders. These anti-takeover provisions could substantially impede the ability of our shareholders to benefit from a change in control and, as a result, may materially adversely affect the market price of our ordinary shares and our investors’ ability to realize any potential change of control premium.

On an annual basis, our Supervisory Board, upon the proposal of the Managing Board, may propose the distribution of a cash dividend to the general meeting of shareholders. Any reduction or discontinuance by us of the payment of cash dividends at historical levels could cause the market price of our common shares to decline.

We use U.S. GAAP as our primary set of reporting standards. Applying U.S. GAAP in our financial reporting is designed to ensure the comparability of our results to those of our competitors, as well as the continuity of our reporting, thereby providing our stakeholders and potential investors with a clear understanding of our financial performance. As we are incorporated in The Netherlands and our shares are listed in Europe on Euronext Paris and on the Borsa Italiana, we are subject to EU regulations requiring us to also report our results of operations and financial statements using IFRS.

As a result of the obligation to report our financial statements under IFRS, we prepare our results of operations using both U.S. GAAP and IFRS, which are currently not consistent. Such dual reporting can materially increase the complexity of our financial communications. Our financial position and results of operations reported in accordance with IFRS will differ from our financial position and results of operations reported in accordance with U.S. GAAP, which could give rise to confusion in the marketplace.

There can be no assurance that a system of internal control over financial reporting, including one determined to be effective, will prevent or detect all misstatements. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance regarding financial statement preparation and presentation. Projections of the results of any evaluation of the effectiveness of internal control over financial reporting into future periods are subject to inherent risk. The relevant controls may become inadequate due to changes in circumstances or the degree of compliance with the underlying policies or procedures may deteriorate.

Our corporate affairs are governed by our Articles of Association and by the laws governing corporations incorporated in The Netherlands. The rights of our investors and the responsibilities of members of our Managing and Supervisory Boards under Dutch law are not as clearly established as under the rules of some U.S. jurisdictions. Therefore, U.S. investors may have more difficulty in protecting their interests in the face of actions by our management, members of our Managing and Supervisory Boards or our controlling shareholders than U.S. investors would have if we were incorporated in the United States.

Our executive offices and a substantial portion of our assets are located outside the United States. In addition, ST Holding and most members of our Managing and Supervisory Boards are residents of jurisdictions other than the United States. As a result, it may be difficult or impossible for shareholders to effect service within the United States upon us, ST Holding, or members of our Managing or Supervisory Boards. It may also be difficult or impossible for shareholders to enforce outside the United States judgments obtained against such persons in U.S. courts, or to enforce in U.S. courts judgments obtained against such persons in courts in jurisdictions outside the United States. This could be true in any legal action, including actions predicated upon the civil liability provisions of U.S. securities laws. In addition, it may be difficult or impossible for shareholders to enforce, in original actions brought in courts in jurisdictions located outside the United States, rights predicated upon U.S. securities laws.

We have been advised by Dutch counsel that the United States and The Netherlands do not currently have a treaty providing for reciprocal recognition and enforcement of judgments (other than arbitration awards) in civil and commercial matters. With respect to choice of court agreements in civil or commercial matters, it is noted that the Hague Convention on Choice of Court Agreements entered into force in The Netherlands, but has not entered into force in the United States. As a consequence, a final judgment for the payment of money rendered by any federal or state court in the United States based on civil liability, whether or not predicated solely upon the federal securities laws of the United States, will not be enforceable in The Netherlands. However, if the party in whose favor such final judgment is rendered brings a new suit in a competent court in The Netherlands, such party may submit to The Netherlands court the final judgment that has been rendered in the United States.

If The Netherlands court finds that the jurisdiction of the federal or state court in the United States has been based on grounds that are internationally acceptable and that proper legal procedures that are in accordance with the Dutch standards of proper administration of justice including sufficient safeguards (behoorlijke rechtspleging) have been observed, the court in The Netherlands would, under current practice, in principle give binding effect to the final judgment that has been rendered in the United States unless such judgment contradicts The Netherlands’ public policy and provided that the judgment by the foreign court is not incompatible with a decision rendered between the same parties by a Dutch court, or with a previous decision rendered between the same parties by a foreign court in a dispute that concerns the same subject and is based on the same cause, provided that the previous decision qualifies for acknowledgment in The Netherlands. Even if such a foreign judgment is given binding effect, a claim based thereon may, however, still be rejected if the foreign judgment is not or no longer formally enforceable.

Risk management activities are governed by our risk appetite strategy, which is discussed annually at the Supervisory Board and audit committee (our "Audit Committee") levels.

We determine the amount of risk we are willing to pursue or retain, depending on associated expected rewards, opportunities, and costs.

Our risk appetite strategy depends on the nature of risks. As an illustration, we strive to reduce residual exposure to a level as low as reasonably practicable for the following risk categories:

•corporate governance;

•product quality;

•operations resilience (internal events);

•protection of IP and other sensitive information;

•people, health and safety;

•compliance with environmental regulations and commitments;

•adherence to our Code of Conduct (the "Code of Conduct") and complying with applicable laws and regulations; and

•protection against cyber threats.

The embedded ERM process takes a holistic view, combining both company-wide top-down and bottom-up perspectives, to ensure that specific risk scenarios are addressed at the right level. The process is implemented as described in the following chart:

During 2024, we refreshed our Company risk assessment with the executive management team. The output from this exercise was a risk map linked to our strategic objectives, including ten redefined ‘priority 1’ risk scenarios.

Risk owners (members of our Senior Management, which consists of our Executive Committee and Executive Vice Presidents (the "Executive Committee" and our "Executive Vice Presidents" or "Vice Presidents", respectively, and together, "Senior Management") as detailed in Section 5.4. (Corporate Governance - Managing Board)) were appointed for each priority risk area to develop risk response plans, adapt to changing external conditions and enhance monitoring capabilities. The risk response plans are regularly reviewed by our Executive Committee and periodically discussed with the Audit Committee of the Supervisory Board.

Each of our organizational units completes its own risk assessment. This includes marketing and sales regions, product groups, manufacturing and technology, and corporate functions. In addition, we implemented further risk assessments on large company programs, including transformation programs.

Our adherence to the good principles of corporate governance is outlined in Section 5.1. (Corporate Governance - Commitment to the principles of good corporate governance). The Supervisory Board and its committees, and the Managing Board, through their structures, charters and activities ensure proper corporate governance as described in Section 5 (Corporate Governance).

Quality is a key value and priority for us. Our vision is to elevate ST to the highest level of quality as an asset for our customers. We can achieve a high level of quality because our employees and management are committed to quality, focused on customer’s targets, and improvement programs are effective.

Global Quality and Reliability (“GQR”) is organized at Company level and embedded in all our organizations. The GQR leadership team brings together quality directors from across our entire business operations (front-end and back-end manufacturing, product groups, sales regions and corporate organizations) to deploy our quality strategy and quality programs throughout the Company.

We are continuously adapting to have the necessary advanced and innovative infrastructure and organization to ensure our products meet the highest quality and reliability requirements in the markets we address.

Our quality governance is based on our quality management system, part of our enterprise management system, as documented in our quality manual. It details how we implement processes allowing to meet the highest customer and standards requirements.

We adhere to internationally recognized quality management standards. We received our first company wide ISOTS16949 certification in 2003 and this certification was renewed every three years since that time. Since 2018, we have been certified IATF 16949:2016 and ISO 9001:2015 demonstrating our robust quality governance, effective quality management system and quality compliance across the Company. In 2024, we were certified ISO SAE 21434 confirming that we established a certified management system and governance which meets and complies with the requirements of the automotive industry in the field of cybersecurity process management within product development phases.

We have extended our risk approach to encompass a dedicated Resilience Management System (“RMS”), including both business continuity and crisis management, and addressing the following dimensions:

•continuity of the main sites;

•manufacturing flexibility across internal and/or external sites;

•continuity of full supply chain including third parties;

•managing the business continuity and crisis communication to clients and other stakeholders; and

•improving company-wide capability to respond to crises.

In 2024, as per our multi-year improvement roadmap, we further embedded our RMS in our main sites and selected organizational units, leveraging our corporate resilience competence center and a global network of resilience champions. We deployed incremental improvements to our RMS (fully aligned methodologies and toolkits across ERM, resilience, business continuity and crisis management). It provides a consistent methodology to address potential business disruptions of our resources, such as:

•site unavailability;

•people unavailability;

•IT system disruptions (e.g. cyber-attacks); and

•critical sourcing and logistics/transportation disruptions.

As such, we address scenarios that may affect our supply chain and operations such as pandemics, natural hazards (such as earthquakes, floods, snowstorms, volcanic eruptions or tsunamis), industrial accidents (such as fires and explosions), facilities/energy interruptions and major impacts related to human activities (such as geo-political tensions, terrorism or strikes).

We continued to enhance a company-specific methodology underpinning a global dashboard: a range of relevant indicators based on internal or external standards, covering dimensions such as exposure to natural hazards, loss prevention characteristics, facilities robustness, equipment modernization and redundancy, IT infrastructure quality and cyber protection. For every significant site, those indicators are compiled in our site resilience index, which is updated on a quarterly basis. Annually, site management teams prepare and update a site improvement plan accordingly.

We have been ISO 22301 (Security and Resilience) certified since 2016. Our continuous improvements have been subjected to both internal audits and external surveillance audits from the certification body.

We have processes and procedures in place to protect our IP and other sensitive information. This includes a dedicated team of global patent attorneys and patent engineers who harvest and collect inventions generated through our R&D efforts, chair and manage patent committees to determine patent filing strategies and oversee the filing and issuance of our more than 21,000 active and pending patents worldwide. As part of this process, we offer incentive awards to our inventor community to help ensure their active and on-going participation in protecting this innovation. The patent committees also regularly make decisions on which inventions are better maintained as our confidential or sensitive information. For any information which we deem as confidential or sensitive, we have processes and procedures which restrict any disclosure of such information to any third-party without having in place appropriate measures such as a non-disclosure agreement. We further secure our IP and sensitive information through the administration of our corporate IT security policies and procedures.

Our approach to protecting the health and safety of our employees and onsite value chain workers is outlined in Section 3.4.4. (Sustainability statement - Social).

Our approach to managing our Company in an environmentally responsible way is outlined in Section 3.4..3. (Sustainability statement - Environment).

We believe that conducting our business with the highest standard of integrity is essential to our long term success, and that compliance and ethics is everyone’s job and responsibility.

Our Code of Conduct embodies our values and principles, which are shared throughout the Company. ST Code of Conduct serves as the highest reference for guiding our behavior, decision-making, and activities. Our values are:

•integrity: we conduct our business with the highest ethical standards, honor our commitments, deliver on our promises, are loyal and fair, and stand up for what is right.

•people: we behave with openness, trust and simplicity; we are ready to share our knowledge, encourage everyone’s contribution, develop our people through empowerment, teamwork and training; each one of us is committed and personally involved in the continuous improvement process; and

•excellence: we strive for quality and customer satisfaction and create value for all our partners; we are flexible, encourage innovation, develop our competences, seek responsibility and are accountable for our actions; we act with discipline, base our decisions on facts, and focus on the priorities.

Further information on our approach to conducting business with the highest standard of integrity is outlined in Section 3.4.5. (Sustainability statement - Business conduct).

Cybersecurity risk management is an integral part of the overarching risk framework and seeks to identify and address fast-evolving cybersecurity threats. The management of cybersecurity risks is governed by the Executive Committee and receives regular oversight from the Audit Committee as a standing item.

We have a specialized Information Security team within the wider Digital Transformation and Information Technology department of the Company, which covers the following:

•program definition and steering;

•framework, which include third-party security;

•awareness and training campaigns;

•architecture and engineering;

•protection of business applications;

•protection of business solutions (R&D, manufacturing and industrial solutions, business applications);

•protection of IT infrastructures;

•cybersecurity operations (such as risk-based vulnerability management); and

•detection and reactions to information security incidents, as part of the wider crisis management process.

In particular, within our Information Security team, the Cybersecurity Incident Response Team monitors on a continuous basis the evolving cyber threats, and detect and analyze incidents. Based on their initial assessments, any significant risk is escalated and would, if required, trigger the assembly of a CCT. This CCT would lead the Company response (e.g. containment, forensic investigation, system restoration, and any associated business impact). The CCT would periodically inform the Executive Committee of any developments, and the Executive Committee would in-turn keep the Audit Committee and Supervisory Board informed.

In addition, we created a Third-Party Management function within our Global Procurement Organization, with the aim to embed cybersecurity risks in the overall management of third parties.

The maturity of our overall risk framework design and implementation, which includes cybersecurity risks, is periodically audited by a leading independent organization. In 2024, an independent third-party performed a cybersecurity maturity assessment. The results and associated improvement plan were presented to Executive Committee as well as to the Audit Committee of the Supervisory Board.

Furthermore, we have been ISO 22301 (Security and Resilience) certified since 2016. Throughout 2024, our continuous improvements have been subjected to both internal audits and external surveillance audits from the certification body. We have also been certified ISO SAE 21434 (Road Vehicles – Cybersecurity Engineering) since 2022, confirming that we established a certified management system and governance which meets and complies with the requirements of the automotive industry in the field of cybersecurity process management within product development phases.

In 2024, no single risk event had a negative material impact on the Company’s financial results.

Our Managing Board is responsible for ensuring that we comply with applicable legislations and regulations. As such, under the guidance of our Chief Financial Officer, we have established and implemented internal financial risk management and control systems. These controls and procedures are based on identified risk factors that could potentially influence our operations and financial objectives and contain a system of monitoring, reporting and operational reviews.

We regularly evaluate the effectiveness of our internal controls and procedures and correspondingly advise our Audit Committee on the results of such evaluations, any changes to such internal controls and procedures, as well as any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to affect our ability to record, process or summarize and report financial information to our auditors and to our Audit Committee. Likewise, any fraud, whether or not material, that involves management, or other employees who have a significant role in our internal control over financial reporting, are disclosed to our external auditors and to our Audit Committee, which informs our Supervisory Board.

We have established policies and procedures which set forth principles, business rules of behavior and conduct which are considered to be consistent with proper business management, in line with our mission and strategic objectives, such as our Code of Conduct.

We have adopted policies and procedures to describe the operational flow of actions to perform a task or activity, or to implement a policy within a given functional field. We have a large number of corporate procedures which cover a wide range of activities such as approvals, authorizations, verifications, reconciliations, review of operating performance, security of assets and segregation of duties, which are deployed throughout the Company.

Our internal audit organization (our "Corporate Audit") is independent of our management. Its primary objective is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insights.

Internal audit plans are developed by Corporate Audit and apply a risk-based approach. They are reviewed annually by our Audit Committee and approved by our Supervisory Board. Each year, the internal audit plan includes audit assignments covering a variety of organizational units, processes and risks.

Corporate Audit performs its activities in accordance with the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors.

Based on the information included in this Section 3.3. (Report of the Managing Board - Risk management and internal control) and the outcome of the aforementioned measures, the Managing Board states that to the best of its knowledge: (i) the internal risk management and control systems in place provide a reasonable assurance that the Company’s financial reporting does not include any errors of material importance as of and for the 2024 financial year; (ii) in relation to the Company’s financial reporting these systems operated effectively during 2024; (iii) it is justified that the financial reporting is prepared on a going concern basis; and (iv) the report states those material risks and uncertainties that are relevant to the expectation of the Company’s continuity for the period of twelve months after the preparation of the report.

Our internal risk management and control systems, including the structure and operation thereof, were discussed and evaluated on several occasions with our Audit Committee, and also discussed by our Supervisory Board, during 2024 (in accordance with best practice provision 1.4.1 of the Dutch Corporate Governance Code).

As an IDM providing semiconductor devices, we handle most manufacturing in-house. We have over 50,000 employees and manufacturing sites worldwide. The manufacturing of semiconductor devices requires natural resources, use of water, use of chemicals, and is labor-intense. Our strategy and business model take into account the material impacts we may have on the environment, our own workforce, our supply chain workers and our affected communities.

Sustainability has been a guiding principle at ST for more than 30 years.

Sustainability is embedded in our activities. We implement programs and take action to manage our impacts, opportunities, and risks within our own operations and relevant sections of our value chain. We put people first, prioritize health and safety, well-being and human and labor rights. We strive to minimize our impact on the environment by, inter alia, reducing our GHG emissions, reducing energy consumption as well as addressing water and waste related challenges.

At the heart of our strategy is a strong focus on identifying topics that matter to our business and stakeholders, through a double materiality assessment, which includes a review with our key stakeholders. Based on this double materiality assessment, taking into account the perspectives of our stakeholders, our sustainability strategy, policies, programs, targets and objectives are regularly reviewed and adjusted as appropriate with the aim to cover identified material sustainability topics.

Relevant ST sites are ISO certified (e.g. ISO 45001: international standard for an occupational health and safety management system; ISO 14001: international standard for environmental management system and ISO 50001: international standard for energy management system) and EMAS validated, with regard to the management systems in place relating to addressing relevant sustainability topics as further indicated in Appendix 11.8.

We are a full member of the Responsible Business Alliance ("RBA"), an industry coalition dedicated to responsible business conduct in global supply chains, and as such we participate in the collective efforts of the industry to formulate solutions to global sustainability challenges. Our policies are aligned with the RBA Code of Conduct. The RBA Code of Conduct aligns with relevant internationally recognized standards and instruments, including OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, UN Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, ILO Fundamental Conventions.

We are included in several sustainability indices, such as Dow Jones Sustainability Index World and Europe indices, and the Euronext Vigeo Eiris Europe 120 index. In 2024, we were rated MSCI AAA(1), ISS ESG Prime, Ecovadis Platinum, FTSE4Good top 10%, Bloomberg top 5%. For 2024 we received an A score from the CDP for climate change, and an A- score from the CDP for water security. We have been a signatory of the United Nations ("UN") Global Compact since 2000. Our sustainability programs are aligned with its ten principles and contribute to 11 of the 17 UN Sustainable Development Goals (“SDG”).

(1) The use by ST of any MSCI ESG RESEARCH LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of ST by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

On January 5, 2023, the CSRD entered into force. The CSRD modernizes and strengthens the rules about the social and environmental information that companies have to report, and aims to ensure that investors and other stakeholders have access to the information they need to assess investment risks arising from climate change and other sustainability topics. Based on the CSRD, we would be required to report on the way we operate and manage social and environmental challenges. In connection with these reporting obligations we would be required to formulate long-term sustainability targets, policies, strategic plans and to conduct due diligence for our own operations and supply chain. Under the CSRD, further transparency rules are introduced on division of roles and responsibilities within the Company for the management of material sustainability matters. The CSRD would also make it mandatory for companies to have third-party assurance on the sustainability information that they report. The European Sustainability Reporting Standards ("ESRS") requires disclosure on detailed information on environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption, bribery and on equal treatment.

Being a Directive, all EU Member States and EEA countries are required to implement the CSRD into domestic law. The deadline for such implementation was July 6, 2024. While certain EU member states have implemented the CSRD into domestic law, the Netherlands, has not done so yet. The legislative proposal to implement the CSRD into Dutch law was submitted to the second chamber of Dutch Parliament on January 13, 2025, for parliamentary proceedings. At the date hereof, there is no certainty on the effective date of the implementation of the CSRD into Dutch law. As we are a company incorporated and governed under Dutch law, this means that we are not legally required to report in accordance with the CSRD with respect to 2024. However, considering the current status of the CSRD implementation in the Netherlands, we have prepared our sustainability statement based on the general principles of the CSRD. Our sustainability statement is included in this section of our Dutch annual report and we will not publish a separate sustainability report. There are no other entities in the ST Group that are legally required to report in accordance with the CSRD for this reporting year.

Our sustainability reporting approach is based on the most recent guidance on the CSRD and we have used estimates and assumptions where appropriate, as further detailed in the relevant sections of this sustainability statement. However, it should be noted, that the Dutch legislation implementing the CSRD is still in draft form and this legislation is still subject to further amendments, guidance and interpretation, and that the CSRD is still under development and its interpretation and application is evolving. Notably, on February 26, 2025, the European Commission issued the first of two omnibus proposals to "cut red tape" and "simplify EU rules for citizens and businesses", which includes proposed changes to the CSRD, such as a reduction of the number of datapoints that need to be included in the sustainability statement (the "Omnibus Proposal"). Taking the aforementioned into account, including that this is the first year that we are reporting under the CSRD, we note that our sustainability reporting approach may change in the coming years.

As referenced above, this sustainability statement has been drawn up in alignment with the CSRD and is based on the ESRS, with the use of all applicable phase-in options. It contains required disclosures on the material sustainability matters as assessed through a DMA conducted in 2024 ("2024 DMA") and on other matters for which disclosure is required under the ESRS.

ST has prepared this sustainability statement with a detailed review of its consolidated perimeter. As an outcome, the scope of consolidation of this sustainability statement is different than the scope of the financial statement for the environmental data only. The scope for environmental data (metrics from the ESRS E – see Section 3.4.3 (Sustainability statement - Environment)) includes our fourteen main manufacturing sites, three large R&D sites and one EWS site. The environmental data from other ST sites is less than 1% of the total. While the goal for future year reporting is to capture the full consolidated perimeter, it has been considered this year that excluding some sites would not change the underlying result.

The qualitative information in this sustainability statement covers ST’s own operations and relevant sections of its value chain, based on the outcomes of the 2024 DMA. A description of ST’s upstream and downstream value chain is further included in Section 3.4.2.3.A (Strategy business model and value chain).

In preparing this sustainability statement no specific information has been omitted, due to it being assessed to be classified or sensitive information, nor has information relating to IP, know-how or the results of innovation, been omitted.

ST is not reporting any value chain data except with regard to scope 3 GHG emissions, where we have used estimations. In the case of GHG emissions, additional elements regarding the basis of preparation for the scope 3 categories along with the level of accuracy is described in the relevant environmental section.

We note that our ability to receive primary data from suppliers or other value chain partners is highly dependent from the evolution of external requirements, the ability of these stakeholders to calculate and provide the information to us and our variety of partners with operations worldwide. If the availability and quality of information from our value chain partners improve in the future we expect to enhance our methodology for value chain reporting.

The preparation of this sustainability statement in accordance with the ESRS requires management to make estimates and assumptions.

The primary areas that required significant estimates and judgements by management include but are not limited to:

•scope 1, 2 and 3 GHG emissions, where any update on the GHG Protocol or emission factor database would have an impact on the total GHG emissions;

•in addition, scope 3 GHG relies on various estimation methods without, at this stage, access to primary data from value chain stakeholders; and

•information on pollution of air and water and the amount of substances of concern and very high concern are dependent on external regulations that are in constant evolution and on current measurement techniques which could evolve over time.

Various data points stem from European regulations, such as the E-PRTR on pollution in Section 3.4.3.2 (Pollution), and on the emission trading scheme in Section 3.4.3.1 (Climate Change), and Annex III of Directive 2008/98/EC of the European Parliament and of the Council on waste for Section 3.4.3.4 (Waste and Circular Economy) where any change either in terms of threshold or categorization would have a direct impact on the amount reported in a fiscal year.

In this first year of reporting under the ESRS, estimates and judgements have been identified for all the disclosed metrics and further described in the relevant sections. When used, they are based on operational considerations linked to our manufacturing footprint, current state of the art in terms of measurement techniques or are driven by industry-specific limitations.

This sustainability statement includes forward-looking statements based on disclosed assumptions about events that may occur in the future and by possible future actions by ST. This includes ambitions, objectives and targets. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under current circumstances.

In addition, ST operates on a worldwide basis in an economic environment impacted by many risk factors which generates uncertainties on future economic conditions which might impact ST’s forward-looking environmental and social performance.

Any such forward-looking statement involves uncertainties and is subject to change.

Since this is the first year that ST reports on a voluntary basis in alignment with the CSRD following the disclosure requirements of the ESRS, the sustainability information in this annual report has been expanded significantly from prior years. We have included new metrics, aligned our disclosures with the definitions from ESRS (unless stated otherwise) and defined certain new targets reflecting the material sustainability matters and related impacts, risks and opportunities identified in this year's materiality assessment. In future sustainability statements, we will report changes compared to this year's statement.

We have included information from generally accepted sustainability reporting standards (e.g. GHG Protocol) and legislation (refer to Appendix 11.2) in this sustainability statement.

We used the option to incorporate information in this sustainability statement by reference, as defined in ESRS 1. The information that has been incorporated by reference is included in the table in Appendix 11.1.

We included references to external sources and links to websites (for example st.com) for information purpose only, noting that these references and links are not incorporated by reference into this sustainability statement.

All material IROs identified in the 2024 DMA stem from the sustainability topics included in the ESRS. Certain targets we have set, related to these IROs, include entity-specific information, as further described in the disclosure of the relevant target, marked with "entity-specific".

We have a two-tier governance structure, in accordance with Dutch law. Our management is entrusted to our Managing Board under the supervision of our Supervisory Board.

No representatives of our employees and other workers are included in our administrative, management and supervisory bodies.

Our Supervisory Board consists of nine members, of whom 44% are female and 56% are male. Based on the independence criteria set for the members of our Supervisory Board 100% of its members are considered independent. Further details on the composition and experience of the members of our Supervisory Board can be found in Section 4.1 (Report of the Supervisory Board - Composition of the Supervisory Board - Biographies), which includes their personal details and biographies.

Our Supervisory Board is responsible for supervising the policies pursued by our Managing Board and supporting the Managing Board with its advice. The Supervisory Board has a sustainability committee (the "Sustainability Committee") which supports and advises the Supervisory Board in relation to its responsibilities in supervising, monitoring and advising on ST's sustainability strategy, targets, goals and overall sustainability performance.

The responsibilities of the Sustainability Committee, detailed in its charter available on st.com include, but are not limited to:

•monitoring and advising on sustainability policies and practices, including, but not limited to, social and environmental;

•monitoring and assessing sustainability developments and emerging trends in the semiconductor industry;

•reviewing stakeholders' feedback relating to sustainability;

•monitoring the sustainability performance of the Company;

•monitoring sustainability matters;

•monitoring and advising on the Company’s sustainability strategy, targets, goals, and overall sustainability performance; and

•monitoring that the sustainability strategy is aligned with the corporate strategy of the Company and vice versa.

The Supervisory Board has an audit committee (the "Audit Committee"), which assists the Supervisory Board in fulfilling its oversight responsibilities relating to corporate accounting, reporting practices, and the quality and integrity of our financial and non-financial reports of ST.

The responsibilities of the Audit Committee in relation to non-financial reporting, detailed in its charter available on st.com include, but are not limited to:

•monitoring the non-financial reporting process;

•monitoring the effectiveness of the Company’s internal control and risk management systems in relation to the Company's non-financial reporting; and

•reviewing annual and interim financial statements and other non-financial information.

Our Managing Board consists of two male members, our President & Chief Executive Officer and our President & Chief Financial Officer, who are entrusted with the general management of our Company, including setting and implementing our sustainability strategy.

Our President & Chief Executive Officer chairs our Executive Committee, consisting of 8 members, of whom 12% are female and 88% are male. Our Executive Committee acts under the authority and responsibility of the Managing Board and in this respect manages our Company together with the Managing Board.

Further information on the composition of our Managing Board and our Executive Committee as well as their experience can be found in Section 5.4 (Corporate Governance - Managing Board). Further details on the gender balance in our Managing Board and Executive Committee can be found in Section 5.5 (Corporate Governance - Dutch Gender Balance Act).

Our Senior Management consists of the members of our Managing Board, the members of our Executive Committee and our Executive Vice Presidents, and consists of 31 members, of which 10% are female and 90% are male. Further information on the composition of our Senior Management as well as their experience can be found in Section 5.4 (Corporate Governance - Managing Board). Further details on the gender balance in our Senior Management can be found in Section 5.5 (Corporate Governance - Dutch Gender Balance Act).

In 2023 a sub-committee of the Executive Committee was established: the Corporate Affairs Committee (the "Corporate Affairs Committee"). As per its charter, this committee's primary purpose is to advise and support the Managing Board and Executive Committee in relation to their respective responsibilities regarding, amongst others, (i) defining and aligning corporate communications related to ST’s corporate social responsibility, ESG and compliance & ethics initiatives and activities, as well as, (ii) assessing and recommending processes and policies related to such initiatives and activities.

While we have an existing governance process regarding sustainability topics in general, we are currently reassessing, adjusting and formalizing our governance processes to monitor, manage and oversee our material sustainability matters and specific related material IROs assessed in the 2024 DMA. We will report on the progress in formulating these processes in the coming years.

Our Managing Board is responsible for formulating and directing our sustainability strategy and sustainability long-term targets, and the Supervisory Board is responsible for overseeing these activities.

On a quarterly basis, the Sustainability Committee, as well as the Managing Board, the Executive Committee and the Senior Management, are generally updated on sustainability topics and ST's sustainability performance and targets, by our President Human Resources and Corporate Social Responsibility ("CHRO"), Corporate Sustainability Group Vice President ("Group VP Sustainability") and relevant sustainability experts, as the case may be.

The Corporate Affairs Committee regularly informs the Managing Board and Executive Committee and updates them on relevant sustainability topics.

In 2024, we created a dedicated project board, the Integrated Reporting Program Board, consisting of our President and Chief Financial Officer, our President and Legal Counsel, our CHRO and our President Quality, Manufacturing and Technology, with an advisory seat for our Executive Vice President, Chief Audit and Risk Executive, to manage and oversee the preparation of our sustainability reporting. This dedicated Integrated Reporting Program Board advised the Managing Board and Executive Committee on the process towards our sustainability reporting under the CSRD, on a regular basis during the reporting year.

While the ERM framework is covering the management and oversight of sustainability-related risks, we are evaluating how to expand it to further embed sustainability-related impacts and opportunities.

Annual targets and long-term targets are set by the Executive Committee and are supervised by the Sustainability Committee and their performance is reviewed each quarter.

Our corporate sustainability department ("Corporate Sustainability") is responsible for coordinating the sustainability target setting process. Sustainability-related targets are set based on the outcomes of the DMA. Although there was no direct engagement with specific stakeholders in the target setting process, the interests and views of our (external) key stakeholders are included in the DMA as described in Section 3.4.2.3.B (Strategy - Interests and views of stakeholders), and in that regard are taken into consideration by ST when setting its sustainability-related targets, as the targets were set based on the material IROs as assessed in the DMA.

For each sustainability matter identified as material in the DMA, a person who is skilled and knowledgeable on the relevant sustainability matter is identified and engaged to define the sustainability-related targets (“Goal Owners”). The Goal Owners propose sustainability-related targets which respond to the respective material IROs, in collaboration with all relevant internal stakeholders (i.e. relevant ST departments whose perimeter is covered by the scope of the target). The Executive Committee reviews and approves the sustainability-related targets and presents them to the Sustainability Committee. Sustainability-related targets may change from time to time in accordance with the outcomes of each DMA. Any amendments to the targets follow the same process as the target setting, including review and approval by the Executive Committee.

Corporate Sustainability is in charge of monitoring the targets. The Group VP Sustainability is responsible for the definition of the key performance indicators (each a "KPI"and together, the "KPIs"), monitoring and quarterly reporting to management.

We reviewed and updated our sustainability-related targets based on the outcome of the 2024 DMA. We disclose any changes made in the reporting year to previously set targets regarding a material sustainability matter in the relevant target disclosure section, relating to that specific sustainability matter. We review our targets on a regular basis and update where needed to reflect our sustainability strategy and to manage our material IROs effectively. This includes material sustainability matters for which we currently have not yet set targets. For a full overview of ST's current sustainability-related long-term targets please refer to Appendix 11.9.

Corporate Sustainability, as well as site sustainability teams and other local teams, include people with a sustainability focus and relevant sustainability knowledge and who have a background in various social, environmental and safety topics, including climate change, pollution, water, waste, work-related rights such as working conditions and human rights regarding own workforce and supply chain workers and rights of affected communities. Our dedicated Compliance, Ethics and Privacy Department, consists of people with relevant knowledge on business conduct matters, namely whistleblowers' protection, corruption and bribery, and we have people within our internal Legal Department and Corporate External Reporting Department dedicated to non-financial reporting.

In 2024, our CHRO and the Group VP Sustainability attended the quarterly Sustainability Committee meetings, together with relevant sustainability experts. Topics discussed included: customer and investors sustainability requirements, environment, value chain and social aspects.

Furthermore, during 2024 the DMA results were communicated to and approved by the Executive Committee and were thereafter presented to the Audit Committee who acknowledged the results. The material IROs identified in the 2024 DMA, are addressed by specific programs or regular dedicated activities, and the Executive Committee and Supervisory Board are updated on the progress of such programs and dedicated activities.

The priority risks managed under our ERM Framework, including sustainability-related risks are addressed on an annual basis by the Managing Board, Executive Committee, Senior Management and Supervisory Board. These risks are considered in our strategy and are monitored and managed in accordance with our ERM Framework.

When overseeing our strategy in 2024 our management and Supervisory Board considered sustainability topics in general and more specifically certain IROs in specific cases or projects, such as IROs related to climate change, energy, pollution, labor rights of own workforce, water and affected communities, health and safety own workforce.

The remuneration policy of our Supervisory Board does not include sustainability-related performance.

The remuneration policy of our Managing Board, Executive Committee and Senior Management includes sustainability-related performance. More specifically, we have factored in climate-related considerations into their remuneration. The short-term incentive and long-term incentive program included a KPI for environment/climate (kCO2eq), aligned with our previous long-term sustainability targets. For more information on the performance against the environmental/climate KPI, we refer to Sections 4.9.3.2 (Senior Management remuneration structure – Short-term 2024 incentive), Section 4.9.3.2. (Senior Management remuneration structure – Long-term incentive) and 7.6.20.4 (Notes to the Consolidated Financial Statements - Equity).

For the disclosure required under ESRS 2 GOV-3 paragraphs 27 and 29, on how sustainability-related performance is included in incentive schemes of our Managing Board, Executive Committee and Senior Management, reference is made to the disclosure included in the remuneration report:

•Section 4.9.2.3. (Managing Board remuneration structure – Performance criteria short-term incentive) regarding the inclusion of sustainability-related performance in the short-term incentive of our Managing Board and Section 4.9.2.3. (Managing Board remuneration structure – Long term incentive grant in 2024) regarding the inclusion of sustainability-related performance in the 2024 long-term incentive of our Managing Board;

•Section 4.9.3.2. (Senior Management remuneration structure – Short-term 2024 incentive) regarding the inclusion of sustainability-related performance in the short-term incentive of our Senior Management (including our Executive Committee) and Section 4.9.3.2. (Senior Management remuneration structure – Long-term incentive) regarding the inclusion of sustainability-related performance in the long-term incentive of our Senior Management (including our Executive Committee).

In line with our Code of Conduct, we have embedded responsible business conduct into our governance, strategy and business model. Our principles of responsible business conduct are informed by internationally recognized standards.

ST recognizes that conducting due diligence is an important element in managing our impacts on people and the environment. Due diligence allows us to identify, prevent, mitigate and address impact on people and the environment connected to our business. Our due diligence processes are based on, inter alia, the international instruments of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Due diligence is an ongoing process, and we routinely evaluate our practices and policies and update those as appropriate. For more information on the application of the main aspects and steps of our due diligence process reflected in this sustainability statement, we refer to the sections in the table below.

The financial risk management and internal control processes which are currently in place will be applied to the sustainability reporting process in the coming years.

Our strategy focuses on sustainable long-term value creation for the Company and its affiliated enterprises and takes into account the evolution of the markets we serve and the environment and opportunities we see. Our strategy stems from the following key long-term trends in electronic systems which drive the evolving requirements of our customers and our solutions across the four end markets we address (Automotive; Industrial; Personal Electronics; and Communications Equipment, Computers and Peripherals):

•smart mobility – we provide innovative solutions to help car manufacturers make driving safer, more energy efficient and more connected;

•power and energy - our technology and solutions for power and energy management enable customers to increase energy efficiency everywhere and support the use of renewable energy sources;

•cloud-connected autonomous things – support the proliferation of secure, connected, autonomous devices enabled by edge AI.

Our value proposition for our various stakeholders is:

•For our shareholders – returning value in line with our objectives, by working towards sustainable and profitable growth;

•For our customers – providing differentiating enablers, using an independent, reliable and secure supply chain;

•For all stakeholders – committed to sustainability and upholding our values of integrity, prioritizing people and excellence.

We are an IDM. We design, manufacture, and sell semiconductor devices. We handle most manufacturing in-house. Being an IDM allows us to tightly integrate our technology and product development with our manufacturing operations while providing our customers the capacity, flexibility, and quality they need. Most of our employees are based in Europe, specifically in Italy and France, as detailed in the table titled 'Overview by Country' included in Section 3.4.4.1.G.2. (Metrics - Characteristics of the undertaking’s employees).

Further details of our products and product groups can be found in Section 2.3. (Corporate overview - Product information) above.

One of the main challenges we foresee in the coming years in relation to our sustainability matters is increased, dynamic and rapidly evolving sustainability regulatory requirements, on matters such as reduction of water consumption and use of hazardous substances. This could create challenges in terms of resources, operations and our manufacturing processes. We have set up specific projects to address these challenges and we are constantly monitoring developments in this regard and how to effectively respond hereto.

Our business model and value chain are presented in the below graph.

Our value chain is a comprehensive process that involves multiple stages, each contributing to the creation of high-quality semiconductor devices. Our three broad value chain sections are described as follows:

•Upstream value chain:

◦suppliers - ST purchases raw materials, equipment, energy, gas, chemicals, and services from many suppliers.

◦subcontractors - ST utilizes external silicon foundries and OSATs (together "subcontractors") to supplement its capacity in front-end manufacturing, electrical wafer sorting, and back-end manufacturing. These subcontractors help manage demand and expand production capabilities.

•ST own operations: ST is an IDM that designs, develops, manufactures, and markets a broad range of products used in a wide variety of applications for the four end-markets it addresses. ST's in-house operations include:

◦R&D concept and design: New products are created in a multi-step process including architecture conception, electrical layout, electrical and logic simulation, chip layout, and generation of the masks that will be used to etch the design in silicon.

◦front-end manufacturing: Manufacturing chips requires around 400 separate stages, starting with a plain wafer and resulting in the etching of several hundreds to thousands of dies.

◦electrical wafer sorting: Dies on the wafer are electrically tested to check that they meet the required specifications. This step is known as wafer sort or probe.

◦back-end manufacturing: The dies are cut from the wafer before being assembled in a package. The chips are then tested again prior to delivery to the customer, ensuring they are functional and reliable.

•Downstream value chain (distributors and customers):

◦product use and end of life (downstream value chain - distributors and customers). We offer a large portfolio of products suitable for the wide range of applications addressed by our customers. This stage includes distributing products to customers and ensuring that products meet the needs of various applications.

Our diverse range of stakeholders can affect or be affected by our activities and products in different manners. Our key stakeholders are: employees, customers, suppliers, including supply chain workers, subcontractors, including their workers, investors and affected communities. Regular engagement with internal and external stakeholders is essential to assess their expectations.

We aim to maintain open communication and actively listen, to be able to integrate their feedback into our decision-making, as appropriate. We seek to integrate the interests and views of our stakeholders into our strategy and business model as they are taken into account when defining our sustainability strategy, ambitions, policies, programs and targets. Every year, we aim to review our sustainability materiality based on, amongst others, stakeholder feedback and external trends to anticipate changes and include stakeholder expectations in our considerations. As of 2024 this annual materiality assessment is conducted on a double materiality basis in accordance with the ESRS. The Sustainability Committee is responsible for reviewing stakeholders' feedback related to sustainability and through the DMA governance process, the Executive Committee, Audit Committee and Supervisory Board are informed of the results of the stakeholder consultation.

In 2024, for the DMA, we consulted our stakeholders to:

•identify the sources of their interests and concerns;

•collect additional perspectives and support the identification and assessment of IROs; and

•check the completeness of the identified material sustainability matters.

The answers provided by our stakeholders were reviewed and analyzed and were considered in the DMA through which we identified the Company’s material sustainability matters.

For further details on the 2024 DMA reference is made to Section 3.4.2.4.A (Impact, risk and opportunity management).

Our engagement with our stakeholders varies across our sites and all levels of the Company. Sites conduct specific actions depending on their activity, size, location and local culture. ST sites have regular exchanges with local stakeholders. At corporate level, we conduct surveys as part of the double materiality exercise. It involves all categories of stakeholders and covers pre-identified sustainability topics. Specifically with regard to our employees, we also conduct a bi-annual general employee engagement survey, and a bi-annual employee survey on specific topics, gathering and responding to their feedback and inputs.

The table below lists certain main topics of interests identified through materiality surveys and examples of various types of engagement per category of stakeholder group:

*So-called “silent stakeholders” managed through NGOs, communities, authorities

While we have various engagements with our stakeholders, we routinely seek for ways to improve our processes. Standardizing stakeholder engagement throughout the Company and deploying a more structured and effective stakeholder method, specifically regarding sustainability topics, is one of the ways we have identified to enhance our stakeholder engagement process. Therefore, at the end of 2024, we developed a structured stakeholder engagement approach, which is currently being deployed across relevant ST departments and sites. The main principles of this enhanced structured stakeholder engagement are described in the Stakeholder Engagement Policy available on st.com.

The risks included in the IRO tables in Section 3.4.2.4 (Impact, risk and opportunity management) concern risks regarding environmental, social and governance sustainability matters that we identified to be material through our 2024 DMA.

The sustainability-related IROs we identified and assessed as material through the 2024 DMA are listed and described in more detail in Section 3.4.2.4 (Impact, risk and opportunity management).

Current and anticipated effects of material IROs on our business model, value chain, strategy and decision-making are detailed in the description of each IRO (see Section 3.4.2.4 (Impact, risk and opportunity management)). The IRO description also details how material impacts affect people or the environment. Our response to these effects is embedded in our long-term sustainability targets and associated programs and related key actions detailed in this sustainability statement.

Our strategy and business model currently address material impacts and risks, and allow the Company to take advantage of material opportunities. The connection between identified impacts, risks and opportunities, and our business model and strategy is made through our sustainability target setting process. The resilience of our strategy and business model regarding our capacity to address material impacts and risks and to take advantage of material opportunities will be regularly assessed by monitoring targets (in so far such targets have been set) and associated programs or related key actions.

This assessment is conducted through the tracking of the Company's progress towards reaching its targets on a regular basis, at least annually. Furthermore, this assessment is also conducted by annually performing an evaluation of the targets against the outcomes of the annual DMA, so that identified material IROs are effectively responded to via existing targets, programs and actions, whereby the relevant time horizons as applied in the DMA for the material IROs are taken into account. Based on these assessments, the Company updates targets and associated programs as appropriate to support the resilience of our strategy and business model.

In 2024, based on the DMA, the Company has not identified any actual material risks or opportunities. Therefore, there are no related current financial effects to be reported.

As a fundamental element of our preparation for the CSRD reporting, we have performed a DMA pursuant to the ESRS.

At ST, ERM is designed and implemented in a way that enables the Company to set and execute its strategy. We recognize the need to support coherence between the assessment and management of different types of risks, including the sustainability-related ones. Therefore, we have adopted the ERM process in the DMA and leveraged our ERM methodology, which has been further developed and adjusted as necessary to accommodate ESRS specificities. Material risks identified in the DMA are embedded in the overall Company risk map. Based on our ERM methodology, risks are prioritized based on the combination of criticality and possible improvement to be implemented. In the coming years, ST will assess how to more explicitly embed material impacts and opportunities as identified through the DMA in the ERM framework.

The DMA process and results were overseen by a dedicated, cross-functional, integrated reporting program board. The DMA results and conclusions were communicated to and approved by the Executive Committee. The DMA results were ultimately presented to the Audit Committee of the Supervisory Board who acknowledged the results.

The 2024 DMA process consisted of the following steps:

Based on our business model and taking into account the sustainability topics covered by the ESRS, we identified the following nineteen sustainability matters as relevant for ST:

The nineteen sustainability matters relevant to ST formed the basis for the identification of our impacts on people and the environment, as well as the risks and opportunities to ST as a company. To conduct a comprehensive DMA, the sub-topics and sub-sub-topics as referenced in the ESRS, were systematically considered in light of our specific business model and strategy and our value chain. IROs were identified considering various relevant dimensions including different activities, business relationships and geographies. Moreover, when relevant, interdependencies were identified and documented (e.g., when an impact might be the cause of a risk or an opportunity). Dependencies on the availability of natural and social resources were also identified and documented for each IRO.

Our value chain is summarized in the below chart, while a detailed overview of our value chain is included in Section 3.4.2.3.A. (Strategy, business model and value chain) above.

Further to the general description on ST's stakeholder engagement (Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders)), this section refers to the specific role of stakeholder engagement as part of the DMA. ST engages with stakeholders to identify the sustainability matters that are most significant to them.

The main objectives of the stakeholder consultation were the following:

•Collect additional perspectives to support the identification and assessment of material impacts, risks and opportunities.

•Ease the identification of stakeholder’s sources of interest and concerns.

Moreover, the stakeholder consultation helped to support the completeness of the identified relevant sustainability matters.

The stakeholder consultation was conducted leveraging a variety of channels:

•A selection of external stakeholders (customers, industry associations, investors, analysts and shareholders, national and local authorities, non-profit organizations, schools, research and academic institutions, as well as suppliers) were directly consulted through a dedicated survey.

•Internal stakeholders (comprising of different categories of ST management and employees) were also directly consulted through a dedicated survey.

•Furthermore, ST leveraged a data analytics platform to conduct a research-based consultation collecting additional inputs from a wide range of media and complete the consultation.

•ST also leveraged inputs from non-profit organizations and media coverage to include silent stakeholders’ views in the analysis. Silent stakeholders are stakeholders who may not actively voice their opinions (e.g. nature) but might nonetheless be impacted by our activities.

Both the survey-based and research-based consultations covered the ESRS topics.

In processing the outcome of the stakeholder consultation, each above-mentioned stakeholder groups received a weight based on its ability to influence ST decisions and representativeness of the responding group. The weights were applied to the views expressed by each stakeholder group on individual sustainability matters in order to produce an overall ranking by sustainability matter of stakeholder group perceptions.

Overall, the stakeholder consultation outcome was consistent with our internal materiality assessment. The topics evaluated at high score by our stakeholders were also assessed as material in the 2024 DMA, confirming alignment between their views and the internal materiality assessment. Additional topics were identified as material by ST in the internal 2024 DMA, which were not identified as such by our stakeholders.

Based on our ESRS topical review, our knowledge of our value chain and our business and our understanding of stakeholder perceptions, we identified a first list of IROs clustered into our nineteen sustainability matters. Those IROs were pre-assessed by an internal cross-functional team.

The IROs were discussed in a series of sustainability matter-specific workshops with ST subject matter experts from the relevant functions concerned. Prior to the workshops, onboarding sessions were held to obtain a common understanding of the CSRD, the objectives of the DMA as well as the associated process steps and methodology.

During those sustainability matter-specific workshops, the pre-identified scope and IROs, including pre-assessment, were discussed, updated as needed and new IROs were included as relevant.

Following the sustainability matter-specific workshops, an internal management review and further consistency checks were performed, and the list of IROs and their respective assessments were finalized.

The 2024 DMA results and conclusions were communicated to and approved by the Executive Committee. The 2024 DMA results were ultimately presented to the Audit Committee of the Supervisory Board which acknowledged the results.

The methodology for both the impact and financial materiality is consistent with our ERM practices. The identified actual (negative and positive) impacts on people and the environment were assessed based on magnitude of impact (four levels from low to very high). The identified potential (negative and positive) impacts on people and the environment, as well as the risks and opportunities for the Company were assessed based on the two following criteria:

•likelihood of occurrence: four levels from remote to almost certain

•magnitude of impact: four levels from low to very high magnitude

The combination of likelihood and magnitude provided four degrees of materiality, which were represented in a criticality matrix, with a color code ranging from white to dark blue. The IROs assessed in the dark blue area are deemed material for the purpose of the CSRD.

The below matrix is an illustration of such criticality matrix.

Both for impact and financial materiality, IROs were initially assessed on a residual basis (i.e. taking into account existing mitigating measures). Where relevant, insights from internal data and/or from our existing due diligence process with regard to the value chain (e.g. in the context of the RBA, as further described in Section 3.4.4.2.C (Workers in the supply chain - Policies) below) were leveraged in the assessment process.

Assessments were performed across different time horizons, ranging from short-term (within current reporting year) and mid-term (from one to five years) to long-term (beyond five years), with the exception of climate-related IROs for which the time scale was extended with long term defined as beyond ten years.

When IROs were not assessed as material on a residual basis across the three-time horizons, they were further assessed on an inherent basis (i.e. without taking into account any existing mitigating measure). Inherent assessments were performed on a long-term time horizon therefore considering the highest effect.

Regarding the impact materiality, the magnitude of (negative and positive) impacts on people and the environment was assessed using a combination of the following sub criteria:

•scale (how great is the impact?)

•scope (how widespread?); and

•irremediable character (i.e. the extent to which the impact can be remediated) for negative impacts only.

Regarding the financial materiality, the magnitude of risk and opportunities was assessed based on qualitative considerations, and quantitative considerations when available. From a quantitative standpoint, the estimated financial magnitude of risk and opportunities towards ST was assessed based on their potential effects on net income. Overall, in 2024, we leveraged a 1-year phase-in regarding the estimation of potential financial impacts.

Finally, we have followed the ESRS-defined methodological exceptions, in particular in relation to potential negative human rights impacts.

The impact and financial materialities were combined in the following manner:

Each relevant sustainability matter was positioned on the above impact or financial materiality matrices based on its highest-rated IRO. Ultimately, a sustainability matter has been considered to be material when at least one IRO was assessed to be material.

In the final double materiality matrix, any sustainability matter positioned in the dark green area is deemed material from a CSRD standpoint.

Out of the nineteen relevant sustainability matters, thirteen sustainability matters related to ESRS E1, E2, E3, E5, S1, S2, S3 and G1 were assessed as material as outlined in the following table and illustrated matrix.

The following sustainability matters were assessed as material on an inherent basis only: "Own workforce: Working conditions and other-related rights”; “Own workforce: Equal treatment and opportunities for all”; “Whistleblowing” and “Corruption and Bribery”.

* = Sustainability Matters material on an inherent basis only

The sustainability disclosures included in this sustainability statement, have been considered relevant based on the significance of this information to explain ST's approach to sustainability and our management of the material IROs assessed in the DMA we conducted in 2024.

A table showing the disclosure requirements covered by the sustainability statement is included in – Appendix 11.1. A table showing the data points that derive from other EU legislation is included in Appendix 11.2.

We are dedicated to managing our business operations in an environmentally responsible way.

We provide semiconductor solutions that play a role in helping to address environmental and social challenges. At the same time, our manufacturing operations require water, energy and chemical substances, and can have a negative impact on the environment. Minimizing our overall environmental footprint is a priority for ST.

Our approach to the environment is laid out in our Global Environmental Policy, which includes our Global Water Policy, and is incorporated into our strategy. This policy is available on st.com and is applied at global level and applicable to all ST entities and all ST employees. The Global Environmental Policy was in place during the reporting period, and was recently updated to more specifically address our material IROs identified in the 2024 DMA. For an overview of the relevant key elements of this policy, please refer to the policy overview table in Appendix 11.7.

Our Global Environmental Policy contains, inter alia, our ambition to reduce our negative environmental impacts, and risks arising from our own operations and that of our suppliers, to utilize environmental opportunities through various key actions, and states various of our goals, such as:

•to maintain an environmental management system based on standards and proven practices throughout the Company;

•to implement control measures and audits to check that appropriate environmental procedures are carried out and to identify and prioritize areas for improvement;

•to maintain relevant environmental certifications for all our manufacturing and large R&D sites worldwide;

•to comply with environmental regulations and other requirements globally and locally;

•to pursue improvement in our environmental performance;

•to provide appropriate training to our employees and provide all necessary information to our stakeholders; and

•to develop long-term partnerships with suppliers committed to responsible environmental standards and practices.

Our Global Water Policy, which is embedded in our Global Environmental Policy, more specifically, details our ambition to manage water-related impacts, including impacts of water pollution, through various key actions, such as:

•to apply water governance at all manufacturing sites, including water use, discharge, quality, and regulatory compliance; and

•regularly evaluating water flows and water balance.

Our CHRO is accountable for the implementation of the Global Environmental Policy. Our corporate environmental team is responsible for developing programs and procedures that enable us to work towards our environmental objectives. These are implemented by local ST site sustainability committees, each of which develops a roadmap according to the needs of their respective sites.

Our manufacturing sites have an EHS steering committee responsible for implementing the Global Environmental Policy. Each EHS steering committee includes representatives from various relevant departments and meets regularly to review relevant topics, such as environmental performance and/or compliance with local and national environmental standards and requirements. The outcomes of these reviews are shared with site management and appropriate actions are implemented where necessary.

Our environmental management system is aligned with international standards, including ISO 14001, ISO 50001 and EMAS. Our performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. Our main manufacturing sites are certified.

ISO 14001 and EMAS are internationally recognized frameworks that help organizations improve their environmental performance. ISO 14001 establishes a systematic approach for organizations to improve energy efficiency and decrease GHG emissions, reduce and recycle waste, conserve water, and control pollutants. EMAS builds on this by requiring detailed public reporting, enhancing transparency and accountability. Both frameworks encourage improvement in environmental performance and compliance with environmental regulations and best practices. ISO 50001 sets a standard for energy management, improving energy efficiency and reducing related consumption, thereby contributing to climate change mitigation.

ST’s employees, suppliers, partners and other stakeholders are key stakeholders in the Global Environmental Policy, which includes our Global Water Policy, and required for successful implementation of the policy. Training and information sharing sessions are deployed. Our Global Environmental Policy is available on st.com for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it, and all STs environmental procedures implementing the commitments of the policy are available to ST’s employees via ST’s internal platforms.

The following table lists the IROs related to climate change we have identified and assessed as material in our 2024 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

For climate-related physical risks, we have commissioned analyses conducted by third parties over the past years in order to understand the implications of climate change in terms of resilience of our strategy and business model. These included global analyses, as well as site-specific studies on climate-related risk, where necessary due to local conditions.

In 2021, we commissioned a study from an expert third-party (an environmental consultancy firm), which has been a valuable resource to help us understand the characteristics and implications of water scarcity on our operations. Additionally, in 2023, we commissioned an update of a science-based study from an expert third-party to assess the current and future climate risks on 155 assets (including all our main sites and those of our key manufacturing and logistics partners in our supply chain, located in 25 countries) (the "Climate Study").

This Climate Study has provided an overview of the inherent climate-related risks for the assets in scope.

The analysis was based on two climate change scenarios defined by the United Nations Intergovernmental Panel on Climate Change (the "IPCC"):

•     an intermediate emissions scenario: SSP2-4.5 (mid-century warming of 1.6 to 2.5°C, end of century warming of 2.1 to 3.5°C versus preindustrial era); and

•     a very high emissions scenario: SSP5-8.5 (mid-century warming of 1.9 to 3°C, end of century warming of 3.3 to 5.7°C versus pre-industrial era).

Specifically for each scenario and for each of the 155 assets, climate projections on 2030 and 2050 time horizons show likely evolutions across a range of indicators based on the Taxonomy classification of climate-related hazards, which might be temperature-related, wind-related, water-related or solid-mass erosion-related, including more specifically: cyclonic and non-cyclonic wind gusts, coastal and riverine floods, number of heavy precipitation days, freezing conditions such as cold wave duration and number of frost days, extreme heat conditions, including heatwave duration and number of hot days, drought including dry wave duration and water stress, and landslide.

In 2024, we completed the assessment of the robustness of existing infrastructure and equipment for one pilot site.

Overall, the purpose of these analyses was to obtain the residual level of climate-related physical risks for ST sites, defining our need for development of adaptation plans accordingly in alignment with our long-term sustainability targets. Ultimately, these different climate-related analyses feed our site-level business interruption risk assessments and business impact analyses, as well as our site resilience index.

While the conducted analyses were based on the latest climate modelling techniques, results inherently entail uncertainties in the assessment process.

In our 2024 DMA, we also identified a number of IROs related to the transition to a lower-carbon economy. To identify transition risks and opportunities, we first leveraged the analysis we previously conducted under the TCFD. In this context, we identified transition risks and opportunities around market, policy and regulations, infrastructure robustness, resource efficiency, energy source and image TCFD categories considering potential climate related transition events. These potential transition events and associated transition risks and opportunities were initially identified based on inputs from key ST subject matter experts, as well as the key characteristics of our IDM business model.

The identified relevant climate related transition risks and opportunities were built upon in the 2024 DMA process and further completed and assessed leveraging additional expertise from our subject matter experts.

Overall, the potential climate related transition events included potential changes in laws and regulations (e.g. public authorities decisions, new regulations, new carbon pricing mechanisms), in supply market dynamics (e.g. evolution of energy prices, availability of renewable energy sources, products, services and raw materials cost variation), in end-market dynamics (e.g. customers behaviors versus climate change), in the robustness of our infrastructure and more broadly included stakeholders perception towards our carbon neutrality performance.

In our process, from a risk management standpoint, we assessed a climate scenario consistent with the UN Paris Agreement (i.e. strictly limiting climate change to 1.5°C with no or limited overshoot) to be unlikely based on current and evolving environmental context and associated uncertainties.

Simultaneously, regarding transition opportunities, we are actively investing in developing and launching new products to help our customers implement new energy saving applications, as further described in Section 3.4.3.5 (Environment - EU Taxonomy Regulation) below.

The resilience of our IDM strategy and business model in relation to climate change will be regularly assessed through the monitoring of related targets.

Climate scenarios considered for determining material physical and transition risks were evaluated across the short, medium and long-term. Consistent time horizons were considered to set related targets.

We have not yet adopted a complete transition plan for climate change mitigation that meets all the elements contemplated by the ESRS. We are continuing to further develop such plan. The following elements of our contemplated transition plan for climate change mitigation were approved by our Executive Committee in 2024, and we are already actively taking steps on these topics, as detailed further below:

•Decarbonization of our own operations;

•Decarbonization of our supply chain;

•Development of technologies and products that aim to reduce GHG emissions across their life cycle.

Each of these topics are covered in our policies (further details included in Section 3.4.3.1.B. (Climate change - Policies related to climate change mitigation and adaptation)), with the actions included and deployed in actions plans. We have also set targets on the first two elements: our targets on GHG emissions reduction (further details included in Section 3.4.3.1.C. (Climate change - Actions, targets and resources in relation to climate change policies)). These targets and identified decarbonization levers are a key element for us to develop further within our transition plan for climate change mitigation.

We aim to finalize our transition plan for climate change mitigation within the applicable legal framework, in the coming years and we will continue to report on our progress.

We are not excluded from the EU Paris-aligned Benchmarks.

Our Global Environmental Policy states our approach to managing environmental impacts, risks and opportunities through various key actions. This policy is available on st.com, for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it, and applied at global level and applicable to all ST entities and all employees. Our CHRO is accountable for its implementation.

Climate change mitigation and climate change adaptation are an integral part of our Global Environmental Policy.

To mitigate potential negative impacts on the environment due to GHG emissions in our own operations, our Global Environmental Policy contains our aim to minimize our direct GHG emissions, as well as to maintain relevant environmental certifications for all our manufacturing and large R&D sites worldwide and provide appropriate training and relevant information to our employees. Additionally, it includes our ambition to secure robust internal and external controls, and audits to check that environmental procedures are carried out and to identify and prioritize areas for improvement.

To mitigate potential negative impacts on the environment due to GHG emissions in our supply chain, our Global Environmental Policy contains our dedication to minimize our upstream GHG emissions, to develop long-term partnership with suppliers which have responsible environmental standards and practices, while regularly engaging with our stakeholders and providing them with relevant information.

In connection with the energy-related IROs, the policy states our ongoing objective to manage energy consumption, improve energy efficiency, and source renewable energy.

Finally, regarding climate change adaptation, the Global Environmental Policy includes our ambition to define and implement climate adaptation plans addressing relevant climate-related risks in order to cope with the risk of natural catastrophe due to chronic and/or acute climate-related events damaging ST's assets disrupting operations and causing business interruption.

In 2020 we announced our commitment to become carbon neutral by 2027, with an intermediate milestone, to be achieved by 2025, endorsed by the Science Based Targets Initiative ("SBTi"). In 2024 we set an additional target: (i) to achieve a 20% (in absolute: 142 ktCO2eq) overall reduction in absolute scope 1 and scope 2 market-based GHG emissions by 2030 versus the baseline year 2024, whereby 54% relates to scope 1 reductions and 46% to scope 2 reductions; as well as (ii) the target to achieve a 10% (in absolute: 384 ktCO2eq) reduction in our scope 3 upstream GHG emissions by 2030, and a 20% (in absolute: 768 ktCO2eq) reduction by 2035, versus the baseline year 2024.

The baseline values of these targets are included in Section 3.4.3.1.D.1 (Metrics related to climate change mitigation and adaptation - Gross scope 1,2,3 and Total GHG emissions). We have set the baseline value against which the progress toward the targets is measured, to be representative in terms of site activities covered and the influences from external factors, since the baseline value is consistent with the current calculation methodology, using IPCC Global Warming Potential AR5, related to target time horizon. In next year's reporting, the updated calculation methodology IPCC Global Warming Potential (GWP) AR6 will be used. Specifically with regard to the target relating to our scope 3 upstream emissions, we have sought to make it representative in terms of procurement activities covered and the influences from external factors, by assessing impacts of future eventual changes, including technology and outsourcing model potential impact related to target time horizon.

These targets are consistent with our GHG inventory boundaries as they are percentage reduction targets within the relevant scope.

These additional targets have not yet, but will be submitted to SBTi, and so their compatibility with limiting global warming to 1.5 degree is not yet validated.

We aim to address the negative impact on the environment, due to GHG emissions linked to our own operations, contributing to climate change, through actions and targets associated with three decarbonization levers:

•decrease climate adverse process gases (“CAPG”) emissions;

•purchase renewable energy; and

•improve energy efficiency.

Decarbonization lever 1: Decrease climate adverse process gases (“CAPG”) emissions (entity-specific target)

The use of climate adverse process gases ("CAPG") is inherent to the semiconductor industry, as there are currently no alternative substances for some parts of the semiconductor foundry manufacturing process. CAPG are gases with a high global warming potential used in production processes. ST is collaborating within the semiconductor sector with industry experts, partners and suppliers to find technical solutions for decreasing the quantities of CAPG used in our industry or replacing GHG intensive climate adverse process gases with lower GHG intensive ones.

The GHG emitted by the use of CAPG accounts for the highest share of our direct air emissions (scope 1). It is therefore a central part of our environmental strategy to reduce their use and to ensure that they are treated appropriately before being released into the atmosphere.

ST aims to abate at least 90% of its CAPG GHG emissions by 2030 vs. 2024, by installing point of use CAPG abatement systems in our manufacturing sites. These abatement systems treat and destroy CAPG molecules before emission in the air, thus decreasing the GHG impact of our manufacturing process. This entity-specific target is based on conclusive scientific evidence, as the impact of CAPG abatement systems on GHG emissions from CAPG is defined in the IPCC-2019 standard.

The percentage of abatement of CAPG GHG emissions is defined as the share of emission reduction out of the total of CAPG GHG emission without abatement. The 90% abatement ratio has been calculated simulating the effect of all new abatement systems planned to be installed by 2030. Our target is aligned with the current sectorial guidance from the ESIA, which has defined 85% as the 2030 target for abated CAPG GHG emissions. The definition of the target is based on the current status of ST's business and the WSC methodology.

In 2024 we abated 76% of CAPG GHG emissions, covering our fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

The GHG reduction associated to installation of new CAPG abatement systems is estimated to be around 24% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024, with the assumption of constant ST data activity and same GHG computation methodology throughout the 2024-2030 target period. The methodology to compute the GHG emission is further described in Section 3.4.3.1.D.1 (Metrics related to climate change mitigation and adaptation).

Our second lever on GHG emission reduction in our own operations is sourcing renewable energy, in order to decrease our scope 2 market-based GHG emissions. We aim to transition to 100% renewable electricity sourcing by the end of 2027 and maintaining this percentage each year thereafter.

This target is based on conclusive scientific evidence on the impact of renewable energy on GHG emission.

The main actions to reach 100% of renewable electricity procurement by 2027 are:

•develop internal competence and a roadmap for sourcing renewable electricity through PPAs and engage expert consultants to advise us to secure ramp-up of ST electricity share from PPA contracts;

•procure unbundled EACs. We manage and monitor an annual roadmap, budget and action plan for our Global Procurement Organization to procure EACs on all relevant locations; and

•whenever possible, implement onsite installations for renewable energy production.

The GHG reduction associated to procuring 100% renewable electricity, is estimated to be around 19% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024, with the assumption of constant ST data activity and same GHG computation methodology throughout the 2024-2030 target period. In practice, ST data activity and GHG computation methodology will be variable along the period 2024-2030, and the actual GHG reduction will depend on, amongst others, these variables.

The percentage of renewable energy we consumed in 2024 is included in Section 3.4.3.1.D.1 (Metrics related to climate change mitigation and adaptation - Energy mix in percentage), and includes electricity as well as other sources of energy.

Renewable electricity is purchased or self-generated electricity coming from recognized renewable sources, such as solar, wind, hydro or geothermal. We consider as renewable electricity, electricity sourced through renewable contractual instruments signed by ST: EAC, renewable PPA and onsite electricity generation from solar panel. The percentage of renewable electricity is the ratio between the total renewable electricity and the total electricity consumption. Our baseline 2024 value for renewable electricity is 84%. This ratio is reviewed quarterly and our progress is in line with our 2020 commitment to reach carbon neutrality by 2027 with 100% electricity coming from renewable sources. The performance trends are stable with no significant changes identified towards achieving our target.

ST is investing in energy savings projects, in order to improve energy efficiency, to use more renewable energy sources, and to reduce our scope 1 and 2 GHG emissions. ST also takes decarbonization actions in its own operations by implementing energy conservation projects, that improve energy efficiency at equivalent production levels, by monitoring energy consumption and productions, and regular maintenance and upgrade of its facilities equipment in ST manufacturing sites. In this regard ST set an entity-specific target to annually save energy, achieving cumulative energy savings of 100 GWh by 2035, versus the baseline year 2024.

The energy saving target relates to the absolute volume of energy consumption saved annually and has been set by taking into account the list of energy conservation projects included in sites' multiple years plan, accordingly, a cumulative saving of 100 GWh by 2035, versus the baseline year 2024, has been estimated. The implementation of energy conservation projects has yet to start, and therefore the baseline value is zero.

In order to reach this energy saving target by 2035 we are taking the following actions:

•we conduct regular maintenance on our facilities equipment and arrange expert third-party review of our assets to identify opportunities for improvement of energy efficiency;

•install digital monitoring systems for energy in all our manufacturing sites;

•arrange regular ISO 50001 certification audit and certification by a third-party of our main manufacturing sites, to validate that an adequate energy management system is in place and that annual optimization targets are set in each of those sites;

•create a company roadmap for energy saving with associated annual targets per manufacturing site; and

•we conduct annual investments to upgrade the least energy efficient facilities equipment.

The new installations bringing energy savings will be followed through meters and monitored. Energy savings will be accredited by a third-party and maintained during the life of the equipment.

In defining the target the following main assumption has been taken into account: that there will be no significant change in facilities installations, which negatively affects the execution of the intended actions needed to reach the target.

The GHG reduction associated to this energy saving target, is estimated to be less than 2% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024.

Complementing ST actions to mitigate climate change within its own operations, ST aims to work with its partners in its supply chain to encourage them to reduce their GHG emissions.

ST has launched a supply chain decarbonization program to reduce its scope 3 emissions related to the purchase of goods and services. We aim to deploy several actions from 2024 onwards, which will be focused on our tier one high emitting suppliers. For overall reduction of our carbon footprint, the scope includes goods and services suppliers of ST, procurement being accounted in scope 3.1 and scope 3.2.

ST aims to achieve a 10% reduction in its scope 3 upstream GHG emissions by 2030, and a 20% reduction by 2035, versus the baseline year 2024. The scope of the reduction target is identical to the inventory of the carbon footprint calculation for scope 3.1 to scope 3.8 categories. with specific focus on decarbonization on goods and services procurement (scope 3.1 and 3.2 categories).

This target is based on conclusive scientific evidence, namely using IPCC.

This target is set based on, amongst others:

•the GHG Protocol Guidance for scope 3 calculation to manage carbon accounting for scope 3.

•a review of our suppliers' public targets on GHG reduction by 2030, and build a strategy and roadmap for the decarbonization of our supply chain.

To meet this target by 2035, ST has identified three levers and takes the following actions:

An assessment of subcontractors for their GHG impact and GHG reduction roadmap has been completed, giving ST an understanding of its suppliers' maturity and roadmap towards reducing their GHG emissions.

The GHG reduction associated to this lever, is estimated to be around 14% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024.

An assessment of goods and services suppliers for their GHG impact and GHG reduction roadmap has been completed, giving ST an understanding of its supplier maturity and roadmap towards reducing their GHG emissions.

The GHG reduction associated to this lever, is estimated to be around 33% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024.

To increase supplier awareness of ST decarbonization targets, in 2024, we have implemented various sustainability e-learnings for the Global Procurement Organization. The next step will be to increase the supplier awareness through communication on relevant ST targets.

To manage suppliers towards decarbonization and to influence suppliers towards decarbonization, ST has integrated carbon reduction criteria into its procurement processes (such as our tendering, new supplier onboarding and supplier evaluation and monitoring processes).

The GHG reduction associated to this lever, is estimated to be around 8% of the overall decarbonization effort relating to scopes 1, 2 and 3 by 2030 versus 2024.

As of December 31, 2024, the total CapEx related to climate change mitigation actions amounted to $28 million mainly driven by CAPG abatement systems installation. This amount has also been considered in our eligible CapEx as individual measures. Please refer to Section 3.4.3.5 (EU Taxonomy) for further information.

As of December 31, 2024, the total OpEx related to climate change mitigation actions amounted to $6 million mainly driven by the purchase of energy certificates. The amount is reported on the line "Power and gas" in Note 7.6.27 of our consolidated financial statements (Please refer to Section 7).

Please refer to Section 3.2.4 (Business Overview and Performance - Financial Outlook: Capital Investment) for CapEx and Section 7.6.36 (Notes to the Consolidated Financial Statements - Commitments, contingencies, claims and legal proceedings ) for OpEx.

We aim to be carbon neutral each year from 2027, in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus).

To achieve carbon neutrality by the end of 2027, ST will offset its residual GHG emissions from its own operations through purchasing of carbon credits, considering recognized quality standards for carbon credits from GHG emissions reduction projects.

We are planning to develop a portfolio of carbon offset projects based on a long-term engagement in local projects and innovative solutions.

Our aim is to combine nature-based solutions with technological solutions, to cover carbon sequestration. Our strategy will be implemented in the coming years in collaboration with our stakeholders, based on local opportunities.

We are working with an external expert advisor to identify the most appropriate carbon credits registry and carbon offsetting projects developers. Based on this assessment, we will define a roadmap and a budget for offsetting our residual emissions for own operations starting 2026. Hence for this reporting year, ST has not included any removals, or any purchased, sold or transferred carbon credits, or any allowances in the calculation of scope 1 nor scope 2 GHG emissions as disclosed in 3.4.3.1 E (Metrics).

As mentioned above, based on the assessment of climate-related risks in the Climate Study, we will conduct further extended analyses on our manufacturing sites to define the need for the development and implementation of adaptation plans and maintain business continuity.

In 2024, we completed the assessment of the robustness of existing infrastructure and equipment for one pilot site. We aim to complete and maintain climate risk assessments for all manufacturing sites including risks of floods, heat, and drought, aiming to identify and implement actions needed for business continuity purposes in relation to physical climate risks. These actions are ongoing.

In this reporting year, ST’s total energy consumption amounted to 3,356,519 MWh out of which 632,073 MWh related to fossil sources, 74,394 MWh related to nuclear sources and 2,650,052 MWh related to renewable sources. This includes the energy consumption for our fourteen manufacturing sites, three large R&D sites and one EWS site. The amount of energy resulting from our warehouses, laboratories and sales offices is not captured for this reporting year. It is estimated to be around 1% of ST’s total energy consumption. ST is planning to capture the remaining energy consumption for our next reporting period. The reported amounts correspond either to meter reading, invoices or certificates received from external providers.

As a manufacturer of semiconductor devices which are electronic components, ST activities belong to the NACE code 26.11 "Manufacture of electronic component". According to the Commission delegated Regulation (EU) 2022/1288 and in Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council, the NACE code 26.11 “Manufacture of electronic component” is classified in section C-Manufacturing. This section C-Manufacturing is considered as a high climate impact sector. As such, the entire perimeter of ST activities is considered as operating in high climate impact sector.

As ST has all its operations in high climate sector, it has disaggregated the total energy consumption from fossil sources by consumption from crude oil and petroleum products 7,023 MWh, from natural gas 284,239 MWh and from consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources 340,811 MWh. ST does not consume fuel from coal and coal products nor from other fossil sources.

As of December 31, 2024, the share of renewable energy in ST overall energy mix amounted to 79%. ST’s energy consumption from renewable sources amounted to 2,650,052 MWh and relates to three different type of sources (i) onsite generation from solar panels, (ii) offsite purchasing power agreement and (iii) Energy Attributes Certificates. ST does not consume fuel from renewable sources including biomass or other related type.

At ST, we do not produce non-renewable energy for our operations. Certain of our sites have onsite generators that are able to produce non-renewable energy in case of emergency situation. The amount of energy produced in this reporting year is considered as not material. None of ST's sites are using coal to produce energy. In this reporting year, we produced renewable energy for a total of 6,071 MWh. It mainly comes from the installation of solar panels.

The energy intensity amounted to 253 MWh per million of U.S. dollars, where the numerator is ST total energy consumption and the denominator is ST total revenues as reported on the consolidated income statement for the year ended December 31, 2024.

As of December 31 2024, the total amount of scope 1 GHG emissions in tCO2eq amounted to 538,136 for ST captured perimeter. Please refer to 3.4.2.1 (General basis for preparation).

To compute our scope 1 GHG emissions, the principles, requirements and guidance provided by the GHG Protocol Corporate Standard were considered.

ST computed the emissions of CO2, CH4, N2O, HFC, PFC, SF6 and NF3. For PFCs, emission factors from the IPCC 5th Assessment Report were used and integrated into a calculation tool. With regards to calculation methods, ST followed the IPCC-2019 Standard – Chapter 6: Electronics Industry Emissions and specifically tier 2c and GWP100 values as per application requirement 39 of the ESRS E1.

The tier 2c method distinguishes process types for all GHGs, and considers wafer sizes, i.e. between ≤ 200 mm and 300 mm. In addition, the method provides estimates of the quantities of fluorinated compounds exhausted from tools which are connected to emission control systems.

For scope 1 GHG emissions, ST calculated GHG emissions from stationary combustion, mobile combustion, process emissions and fugitive emissions. ST used two activity data “energy related emissions” with the emission factor database of the International Energy Agency ("IEA") as emission factor source and PFC and HFC leakages with IPCC Fifth (AR5) and Fourth (AR4) Assessment report of the IPCC, that includes the non-renewable fuel consumption.

ST will perform regular reviews of the latest available emission factor and will update relevant ones to IPCC AR6 for the next reporting period.

For this reporting year, ST did consider GHG related to Heat Transfer Fluids ("HTF") which are considered fugitive emissions. HTF is a refrigerant used in a closed loop which is not supposed to leak, however it might be partly released or discharged during maintenance. Due to inability to measure accurately the related emissions, and lack of standards and guidance regarding the GWP of all the fluids, ST made a preliminary estimate out of its total scope 1 emissions. Total amount of GHG emissions related to HTF amount to 101,810 tCO2eq which represents 19% of total scope 1 emissions.

ST will further refine this estimate by integrating operational data into the modelling and aligning within the World Semiconductor Council while working on identifying processes to segregate initial filling volumes purchased from fugitive emissions from maintenance activities. ST does not have any biogenic emissions.

In this reporting year, no scope 1 GHG emissions were covered by regulated emission trading schemes.

In this reporting year, the total amount of scope 2 GHG emissions for ST amounted to 864,057 tCO2eq with a location-based approach and to 171,347 tCO2eq with a market-based approach.

To compute our location-based and market-based scope 2 GHG emissions, the principles, requirements and guidance provided by the GHG Protocol scope 2 guidance were considered. As such, the location-based amount reflects the average emissions intensity of grids on which energy consumption occurs while the market-based method reflects emissions from electricity that ST was able to drive. The latter, derives emission factors from contractual instruments.

For location-based approach, the amount includes purchased electricity and super-heated water consumed by ST during the reporting period. ST applied the location-based method with average energy generation emissions factors. For electricity related emissions, the International Energy Agency database of emissions factors was used for all countries except for France, where ADEME, the French Agency for Ecological Transition dataset was used. For super-heated water used on one of our sites, the emissions factor provided by the supplier was used.

For the market-based approach, on top of super-heated water and electricity from grid, ST considered three types of renewable electricity instruments: EACs, offsite PPAs for two manufacturing sites, and onsite generation for three sites coming from solar panels. ST defined at corporate level a renewable procurement strategy for each site and reallocates each certificate according to each site’s targets. EACs can be procured whether unbundled i.e. separately from the underlying energy produced or bundled.

GHG emissions other than CO2 (e.g. CH4 or N2O) are included from location-based grid average emissions factors and from the market-based method information used in the computation of ST scope 2 GHG emissions.

ST has disclosed in the above table the scope 3 GHG emissions for scope 3 categories that are a priority for ST. This prioritization is based on the targets defined this reporting year. Please refer to Section 3.4.3.1.C. (Climate change - Actions, targets and resources in relation to climate change policies).

ST considered the GHG Protocol guidance related to companies producing intermediate products and other elements further detailed below. ST is not reporting on scope 3.11 for this reporting period. This category relates to the use of sold products.

The determination of GHG emissions related to the use of sold products presents a high level of complexity and uncertainty. The complexity lies in the integration of semiconductor devices in end-products and its consequent impact on GHG during usage. Semiconductor devices have many potential downstream applications each with a different GHG emissions profile. This variability requires ST to make significant and multiple assumptions in order to model the downstream emissions associated with the various possible end applications. Additionally, current standards and industry associations provide no guidance to support these complex calculations.

ST does not have sufficient end-application data and industry-specific guidance available, which limits its ability to make reasonable assumptions for estimating the amount of GHG emissions for scope 3.11. Despite being a significant category among all our scope 3 emissions, ST is unable to report on the GHG emissions for scope 3.11 related to the use of sold products. ST is planning to work on the means to facilitate the collection of use-phase related data, in line with its external commitment and strategy. ST will engage with stakeholders to further work on this reporting element.

To compute scope 3 reported amounts, ST considered the principles, requirements and guidance provided by the GHG Protocol "Corporate Value Chain (Scope 3) Accounting and Reporting Standard along with the GHG Protocol Technical Guidance for calculating Scope 3 emissions". The fifteen scope 3 categories from this standard have been screened.

The reporting boundaries considered in the calculation methods either cover the financial consolidated perimeter (e.g. scope 3.1 and 3.2) or the sustainability statement perimeter (e.g. scope 3.5 or 3.3). As such, these categories will be adjusted in future reporting period in light with our other environmental metrics.

The calculation methods for estimating the GHG emissions either follow a spend-based approach or a distance-based or an average-data method, as described in the GHG Protocol.

Emission factors from various databases were used: IEA, Biogenic Emission Inventory System ("BEIS"), US Environmental Protection Agency ("EPA") Supply Chain, Defra, Ademe and Ecoinvent 3.8 or 3.10 database were used.

ST is not using a specific scope or carbon tool for its computation and leverage existing tool with the addition of data analytic and visualization software.

•scope 3.1 amounted to 2,903,098 tCO2eq and relates to the GHG emissions of our purchased goods and services. Based on the GHG Protocol, two main approaches have been considered, the spend-based method and the average-data method, with a priority on average-data method when information on emission factor related to specific goods or services category was available along with quantity associated to relevant activity data. We have screened all relevant spend categories;

•scope 3.2 amount to 449,764 tCO2eq and relates to the GHG emissions of our equipment, building or IT related services. The same approach and methodology as for the scope 3.1 was used;

•scope 3.3 amount to 259,815 tCO2eq and relates to GHG emissions of fuel and energy-related activities not accounted for in scope 1 or scope 2. It includes fuel consumed by leased company cars, other fuel consumed by power generators and gas from boilers or power back-up generators or catering equipment, and super-heated water. It also includes transmission and distribution losses related to ST electricity consumption. Emission factors applied on these categories related to energy upstream phase (production and transport). The location-based methodology is used along with average-data method;

•scope 3.4 amount to 126,762 tCO2eq and relates to the GHG emissions of our products' logistic flows and storage activities. The distance-based methodology described in the GHG Protocol was followed for our logistic flows and the spend-based approach was used for our storage activities;

•scope 3.5 amount to 4,332 tCO2eq and relates to the GHG emissions from third-party disposal and treatment of waste generated by ST. It includes emissions from disposal of solid waste and wastewater. Based on the GHG Protocol, the waste-type specific method was followed;

•scope 3.6 amount to 39,182 tCO2eq and relates to the GHG emissions from the transportation of employees for business related activities in vehicle owned or operated by third-parties such as aircraft, trains, shuttles, taxi, car rental. Based on the GHG Protocol, the distance-based and the spend-based methods were followed;

•scope 3.7 amount to 54,403 tCO2eq and relates to the GHG emissions from the transportation of employees between their home and their place of work. It includes various transportation modes: automobile including carpooling, bus, rail, tramway, subway and motorcycles. Based on the GHG Protocol, the distance-based method was followed. For scope 3.6 and 3.7, the parameters required for the calculation are integrated in a tool providing the total amount; and

•scope 3.8 is not applicable for ST as of December 31, 2024. Where ST does have upstream leased assets such as building or equipment, they are considered under IFRS as finance leases and as such shall be accounted in scope 2. At this stage, as explained in our basis of preparation they have not been considered for this reporting year.

Some categories were not relevant for ST such as categories 3.13, 3.14 and 3.15.

Other categories were not disclosed considering the criteria provided by ESRS to identify the significance i.e. magnitude of GHG emissions, influence, related transition risks and opportunities and stakeholder views. This is valid for the following categories: scope 3.9, 3.10 and 3.12.

We have not received primary data obtained from suppliers or other value chain partners. Scope 3 calculation methods used rely on estimates with limited guidance available from the standards. The variability of the scope 3 disclosed amounts exists and underlying numbers might be adjusted in the coming years following potential revision of the standard, specific data received by value chain stakeholders or precision on emission factors.

In addition, our ability to receive primary data from suppliers or other value chain partners is highly dependent from the evolution of external requirements, the ability of these stakeholders to calculate and provide the information to us and our variety of partners with operations worldwide. If the availability and quality of information from our value chain partners improves in the future we expect to enhance our methodology for value chain reporting.

However, we expect the scope 3 to remain an estimated amount with high variability, for the coming reporting years.

The total amounts of GHG emissions, included in this statement, are also subject to this variability as they include scope 3 GHG emissions.

ST emitted in this reporting year 5,239,549 tCO2eq GHG emissions using the location-based method and 4,546,839 tCO2eq GHG emissions using the market-based method.

As of December 31, 2024, the GHG intensity based on net revenue amounted to 395 tCO2eq per millions of U.S. dollars, using the location-based approach to compute GHG emissions and to 343 tCO2eq per millions of U.S. dollars using the market-based approach to compute GHG emissions where the numerator is ST total GHG emissions (location-based and market-based respectively)) and the denominator is ST total revenues as reported on the consolidated income statement for the year ended December 31, 2024.

It is our priority to responsibly manage chemicals and replace hazardous substances wherever possible. We carefully manage the chemical substances and materials we use throughout our operations. This allows us to monitor and address our impacts on people and the environment and to comply with legal and customer requirements.

The following table lists the IROs related to pollution and chemicals we have identified and assessed as material in our 2024 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

3.4.3.2.A. Processes to identify and assess material pollution-related impacts, risks and opportunities

We screened our sites and operations and have identified material negative pollution related impacts on local natural ecosystems which may be generated by the nature of our manufacturing operations, being an IDM. The assessment was conducted considering the mitigating measures already in place for identifying potential air, water and soil contamination and de-pollution needs in specific areas of our site locations and were considered material on a residual basis.

We assumed that our subcontractors might also generate material negative pollution related impacts on local natural ecosystems due to the nature of their activities which are similar to ours and their geographical locations. For suppliers, we also considered the broad panel of activities they provide us with.

To assess material pollution-related IROs, for both our own operations and for subcontractors, magnitude and likelihood were assessed, considering the several types of chemicals used in the semiconductor manufacturing process as well as the mitigation measures in place and past pollution-related incidents.

We strive to reduce the use of hazardous substances and to find substitutes. We assessed the related identified risk considering the complexity of our manufacturing processes and the current state of pollution management technology.

We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing pollution-related challenges. Our engagement with affected communities takes place on an ad hoc basis as needed, based on the engagement process described in Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders). ST sites actively engage with communities and national and local authorities, according to their specific needs and the local context. This can include local non-governmental organizations ("NGOs"), community organizations or town hall events to address community concerns. Engagement with affected communities is not standardized across all ST sites, but is organized specifically taking into consideration local circumstances. This engagement aims to provide relevant insights which can inform decision making processes at local level and improve our ability to manage and mitigate pollution-related negative impacts effectively.

3.4.3.2.B. Policies related to pollution

Our Global Environmental Policy contains our ambition to minimize our negative environmental impacts, and risks arising from our own operations and that of our suppliers. We aim to achieve this through our actions on pollution prevention and actions to minimize the impact of certain chemical substances on people and the environment. Through our stakeholder engagement, as described in (Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders) we are informed of the interests of our key stakeholders, whose interests are taken into consideration by ST when setting policies concerning pollution.

Pollution management is an integral part of the Global Environmental Policy. Relevant key elements included in the policy are our commitment (i) to strive for pollution prevention, (ii) to have a pollution and chemicals management system based on standards and best practices and therefore maintaining relevant environmental certifications (namely ISO 14001 certification and EMAS validation) of relevant ST’s manufacturing sites and large R&D sites worldwide, including processes for monitoring; and (iii) minimize impact on people and the environment of chemical substances.

To monitor and minimize the potential negative impacts on the environment (caused by existing and/or accidental pollution) resulting from ST's own operation, our Global Environmental Policy includes commitments to implement and maintain control measures, and audits to check that environmental procedures applicable to pollution prevention and chemical use are carried out and to identify and prioritize areas for improvement.

To monitor and minimize the potential negative impacts on the environment (caused by existing and/or accidental pollution) resulting from ST's suppliers' and subcontractors' operations, ST's Global Environmental Policy outlines our commitments to develop long term relationships with ST’s suppliers and partners, particularly those with the highest environmental standards and practices.

Furthermore, ST's Global Water Policy details our ambition to manage water-related impacts, including impacts of water pollution, across ST’s operations and across the operations of its major subcontractors. The policy is available on st.com, for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it. Further details of this policy are included in Section 3.4.3.3.B. (Water - Policies related to water).

In connection with our ambition regarding pollution management and chemicals use as referenced in the Global Environmental Policy, we have several procedures relating to the mitigation of negative impacts related to pollution of air, water and soil. Those procedures, applicable to all ST manufacturing sites and to selected non-manufacturing sites, are imposed to:

•be compliant with relevant legal requirements at local level, employees’ health and safety, adequate protection and reduced emissions to the environment, whatever chemical substances and gases are used onsite;

•control the concentration and/or quantity of pollutants in its air emissions, industrial wastewater emissions and to seek to prevent accidental discharges to soil and groundwater so that it is maintained below the limits laid down in applicable laws and regulations, or in the permits or authorizations.

ST's approach to chemical use, as referenced in the Global Environmental Policy, is to substitute and minimize the use of hazardous materials (substances of concern and very high concern) and heavy metals where feasible, and to phase out certain substances of very high concern where our inability to substitute represents a material risk for the Company. Therefore, ST has set operational procedures applicable to relevant ST manufacturing sites and to selected non-manufacturing sites, including procedures addressing:

•The optimization of chemical products consumption;

• A list of chemical substances that are legally banned, regulated, exempted and declarable.

As per our policy and relevant operational procedures, we apply a hierarchy of safety controls approach to our chemical management procedure. When specific chemicals or materials cannot be eliminated or substituted with less hazardous alternatives, we implement engineering measures and administrative controls to reduce workers’ and environmental exposure.

In line with our commitments included in our Global Environmental Policy to maintain relevant environmental certifications for relevant manufacturing and large R&D sites and to comply with environmental regulations globally and locally, we have certain procedures to manage, prevent and reduce the risk of incidents and emergency situations occurring as much as possible. These procedures, applicable to ST manufacturing sites and to selected non-manufacturing sites, require these sites to:

•take certain precautions aimed at prevention of accidental out-of-compliance air and wastewater emissions (emissions amounts emitted above limits laid down in laws and regulations, or in the relevant permits or authorizations), thus reducing negative impacts;

•implement prevention and monitoring measures for equipment that could potentially contaminate     soil;

•prepare and update a Spill Control Plan, if required by law;

•apply the precautionary principle (as set out in Principle 15 of the Rio Declaration);

•apply a resilience management framework including crisis-related elements and business continuity-related elements to withstand events/ shocks / crises, and to re-cover as fast and strongly as possible.

Additionally, the Global Environmental Policy includes our dedication to provide appropriate training to all relevant employees, such as fire trainings, chemical risk trainings or environmental trainings, and to provide relevant and applicable information to our stakeholders.

ST implements various actions aiming at addressing material negative impacts and risks related to pollution. All the following actions are continuous and ongoing to reach the objectives of our related policies and relevant targets, covering the same time horizon as the targets included in Section 3.4.3.2.D. (Metrics and targets related to pollution).

We recognize the importance of reducing environmental emissions to minimize the potential pollution effect we could have, and we have made it a priority to do so in the domains of air, water, and waste. Our approach includes treating emissions where possible and implementing replacement programs for hazardous substances throughout our own operations to reduce our environmental impact.

ST has set EHS criteria in operational procedures for the monitoring of chemicals, substances, emissions to air, wastewater, soil and groundwater and waste management. These procedures are applicable to all ST manufacturing sites and to selected non-manufacturing sites depending on the chemical substances the site uses.

ST aims to perform internal corporate EHS audits every three years on all manufacturing sites to check corporate operational procedures are implemented and applied correctly. Based on these audits, sites define local action plans which they report on quarterly.

ST also operates a program of third-party EHS compliance audits at all ST manufacturing sites, and other selected sites.

At each of our manufacturing sites, local sustainability teams and EHS champions are responsible for the following pollution related activities:

•deploying the strategy and the programs onsite;

•supporting site management in defining local targets and KPIs;

•monitoring and reporting performance to corporate;

•sharing best practices; and

•engaging with site stakeholders.

On each manufacturing site, ST has dedicated teams which work on the adequate functioning of and promote improvement ST's air and water treatment systems.

Furthermore, at each of our manufacturing sites, a chemical committee meets regularly to review and evaluate best management practices for identified hazards. The committee uses a comprehensive approach to make decisions on chemical usage. This includes evaluating chemical compositions, hazards, use conditions, engineering controls, medical recommendations, and industrial hygiene requirements. Risk management measures, personal protective equipment, waste management, administrative controls, and training requirements are also considered. By applying this process, we can identify critical substances when they are introduced or reclassified. Modifications to existing processes are also considered and implemented as appropriate.

ST adheres to the RBA Code of Conduct, by setting high standards, conducting thorough audits, providing training, fostering collaboration, emphasizing transparency, and promoting improvement. This approach helps us in our efforts to address the potential impact from pollution generated by our manufacturing processes and supports the overall goal of sustainable development in the supply chain.

The RBA framework covers our upstream supply chain, in addition to the ST manufacturing sites.

ST's water management process prioritizes proven practices of water management to address the potential impact from pollution of water generated by our manufacturing processes. Action plans have been defined at site level with dedicated experts to help implement actions locally. Further details can be found in Section 3.4.3.3.C.(Water - Actions and resources related to water).

ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are ISO certified and/or EMAS validated (please refer to Appendix 11.8 and st.com for an overview).

Additionally, using available proven technologies ST maintains the treatment of wastewater discharge in order to minimize the presence of pollutants and substances of concern in its effluents, amongst others, to be compliant with local regulations. More information can be found in Sections 3.4.3.3.C. (Water - Actions and resources related to water) and Section 3.4.3.4.C. (Waste and circular economy - Actions and resources related to waste).

To further reduce its environmental impact, ST has implemented an air emission abatement program that focuses on reducing emissions of VOCs and covers all ST manufacturing sites. Our air emission abatement program includes the use of advanced technologies and processes to capture and treat air emissions from manufacturing processes, as well as ongoing monitoring to check that installations are working effectively. By reducing VOC emissions and reducing the use of other VOC-emitting materials and chemical products, ST is able to minimize and address its impact on the environment and protect the health and safety of its employees and that of local communities. The program also anticipates compliance with possible future stricter regulation on emissions. These actions are undertaken to, amongst others, reach the VOC reduction target as detailed further in Section 3.4.3.2.D. (Pollution - Metrics and targets related to pollution).

ST has a proactive approach to reduce the use of hazardous substances (including some heavy metals), including substances of very high concern in its processes and final products to help safeguard the health and safety of its stakeholders, while reducing its environmental footprint. These actions are undertaken at all our manufacturing sites. An example of such actions is the reduction of the length and complexity of certain manufacturing processes leading to a decrease of chemical consumption.

Moreover, ST implements replacement programs for hazardous substances, including substances of very high concern, throughout its own operations. We search for the best solutions using technology and innovation to replace hazardous materials in our manufacturing processes. We also work with our relevant supply chain actors. These actions are implemented by all ST entities worldwide, that use chemicals and/or purchase any materials containing hazardous substances.

ST strives to eliminate the use of restricted substances in the manufacturing of its products through new designs and reduced dimensions. For example, ST is using ECOPACK which is a grading system to classify environmental compliance of products, as part of its product strategy. This action is implemented in ST’s own operations specifically at design and process stages. This supports ST in its efforts to address its potential risk of not being able to substitute hazardous materials in ST processes and products. These actions are implemented to, amongst others, reach our voluntary target to make all products manufactured within ST's own operations 98% halogen-free by 2035, as further detailed in Section 3.4.3.2.D.1.

(Pollution - Metrics and targets related to pollution).

Finally, ST requires its suppliers to adhere to the EHS-regulated substances list, which specifies a large number of substances regulated by legislation and which is regularly reviewed. ST also requires its suppliers to confirm their compliance to such list through analytical certificates, safety data sheets, and commitments. This supports ST's efforts to address its potential pollution impacts in its value chain, its potential risk of not being able to substitute hazardous materials in its processes or products, to address customer's changing perceptions and potential stricter regulations on the use of hazardous materials in ST's processes or products. This action is applicable to ST suppliers and subcontractors and by extension all ST sites receiving and purchasing products and materials from these stakeholders are affected.

ST provides material declarations to its customers, which provide insight into the hazardous materials in ST products (each, a "Material Declaration"). In the Material Declaration of our products we report the full material declaration disclosure (based on IPC 1752 format) of the substances included in ST products. For substances of very high concern a specific disclosure is available within the Material Declaration.

As per our Global Environmental Policy, we are dedicated to limiting soil, air, and water pollution risks. We do this by, amongst others, implementing state-of-the-art technologies to tackle emissions (in water and air) and by regularly assessing the use and potential substitution of hazardous materials, such as substances of very high concern, to address potential negative impact from our operations on local natural ecosystems caused by, amongst others, air emissions.

Pollution-related target

In 2024 we set a voluntary target to decrease VOC air emissions from ST's fourteen main manufacturing sites, three large R&D sites and one EWS site (as detailed in the table included in Appendix 11.9) to achieve 70% absolute reduction in kg by 2030 vs 2024, building on emissions reductions already achieved in past years.

This target focuses on delivering a reduction of VOC air emissions in absolute kg value in comparison with 2024 levels, taking into account expected production growth.

The baseline value, reported in base year 2024, is 265 tons kg of VOC, covering our main manufacturing sites and major R&D sites as further detailed in Appendix 11.8.

VOC air emissions will be measured by monitoring (periodic measurements) or online monitoring by an accredited laboratory (through automated measuring systems).

By setting this target, ST addresses the prevention and control of air pollutants and substances emission, by reducing air pollutants emitted by ST operations, which subsequently contributes to reducing emissions of substances of concern.

The target has been defined by using 2024 forecasted VOC air emissions and simulating implementation of (new) VOC abatement systems in three specific manufacturing sites, while keeping the existing VOC abatement systems in the other manufacturing sites. New manufacturing facilities will be equipped with VOC abatement systems from the start. This assessment indicates that a reduction of VOC air emissions from ST’s own operations of around 70% in 2030 vs 2024 is achievable.

This target is based on scientific evidence regarding the negative impact of VOC emissions on human health and the environment.

With regard to the use of hazardous materials, including substances of concern and very high concern, in our manufacturing processes and products, in 2024 we set a voluntary entity-specific target to make all products manufactured within ST's own operations 98% halogen-free by 2035, alongside our efforts to regularly assess the use and potential substitution of substances of very high concern.

The target, applicable between 2024 and 2035, is relative, expressed in a percentage of the total volume of products manufactured within ST’s own operations. The baseline value, is 93% of products manufactured within ST’s own operations in 2024 are halogen-free.

For determining the percentage of halogen-free products, the ratio between products which are halogen-free and all products manufactured within ST's own operations is calculated.

To set this target, we examined the likely potential improvement from this baseline until 2035, accounting for products that contain halogenated mold compounds that can be qualified with new materials. The forecast volume of ST manufactured products that contain halogenated mold compounds that we plan to qualify with new materials is 4%. The 98% target was set accordingly.

The halogen-free monitoring methodology for this target is based on an ST specific methodology.

By setting this target, ST aims to prevent and control the emissions of pollutants and substances:

•by reducing halogenated materials in products, ST aims to limit halogen emissions to air;

•by reducing halogenated materials in products, ST aims to limit halogenated solid waste production from the manufacturing process and the products' end of life and thus limiting any release to soil; and

•by reducing emissions of substances of concern through the increase of halogen free products.

This target has been set based on scientific evidence that halogenated compounds, which are substances of concern, have a negative impact on the environment and human health.

As of December 31, 2024, ST emitted consolidated amount of water and air pollutants which exceeded the applicable threshold at site level. ST performed an analysis of the relevant pollutants listed in Annex II of the European Pollutant Release and Transfer Register Regulation (“E-PRTR”). ST performed an analysis to identify the number of pollutants locally measured out of the 91 pollutants listed in E-PRTR Annex II. The pollutants measured at site level are driven by local environmental permits.

The amounts were consolidated and included only the emissions from facilities for which the applicable threshold value specified in Annex II of Regulation (EC) No 166/2006 was exceeded.

With regards to soil pollutants, they are not released by any ST manufacturing site according to the E-PRTR definition. E-PRTR defines soil pollutants as substances that are introduced into the soil. In the context of ST’s manufacturing processes, there is no significant pathway for these substances to become direct soil pollutants. ST sites adhere to environmental standards and controls, governing the handling, storage, and disposal of chemicals and other materials, and these processes are designed to minimize pollution, including soil pollution.

The monitoring and measurement methods of pollutant related to air or water depend on ST's policies and the environmental regulations in force in the country where the site is located. All relevant sites are subject to local permits. These permits include pollutants to be measured in line with local regulations. It also includes monitoring and control plan identifying the emission points to be monitored, the parameters, the monitoring frequency and the associated analytical methods.

The specific procedures by which external laboratories conduct the analytical measurements are displayed in each lab report. EU Best Available Techniques Reference Documents ("BREF") standards and other standards, where applicable, are required to be taken into consideration by local authorities in listing the parameters to be monitored, the monitoring frequency and the emission thresholds.

The local teams rely on external accredited laboratories to conduct periodical analyses identified by the monitoring plan as defined in ST policies. EHS local teams conduct emissions monitoring campaigns by sending sampling and analysis to external laboratories compliant with local environmental requirements. The frequency of the monitoring campaign depends on the sites or the pollutant. In any case, pollutants are measured at least on an annual basis and sometimes monthly, quarterly or bi-annually depending on local regulations. ST does not use estimates but direct measurement via monitoring systems calibrated by an external party for two manufacturing sites and periodic measurements performed by laboratories for the remaining perimeter.

In addition, spot measures are performed outside the period emissions measurement defined by the monitoring plan. For these measurements, the local teams also rely on external laboratories to perform analyses.

With regards to emissions to water, they relate to wastewater with two main destinations:

•water discharge to sewer

•water discharge to surface water

Sites can release their wastewater to sewer or surface water, depending on the wastewater treatment plant network design implemented onsite. The monitoring can be measured on a daily basis when there is a local wastewater treatment plant.

ST does not generate nor use micro-plastics during production processes. It does not either procure, and does not have microplastics that leave the facilities as emissions, as products, or as part of products or services.

ST disclosed above the amount of substances of concern ("SOCs") and substances of very high concern ("SVHCs") using the following approach of computation:

•amount of substances procured;

•amount of substances leaving facilities as part of products; and

•amount of substances leaving facilities as emissions.

The list of SOCs comes from the ATP 18 Table of the Regulation (EC) No 1272/2008 on the classification, labelling and packaging of substances and mixtures (CLP Regulation), as published by the European Chemicals Agency ("ECHA").

SVHCs are substances that meet the criteria laid down in Article 57 of Regulation (EC) No 1907/2006 ("REACH"). The list of substances was identified in accordance with Article 59(1) of that regulation, and as published by the ECHA.

SOC and SVHC are contained in materials procured by ST (raw materials, chemicals, packing and handling). When going through ST’s operations, these procured materials are either used as-is or are involved in reaction processes consuming and/ or transforming and/or releasing SOCs and SVHCs as such. After going through ST’s operations (manufacturing, reaction process, packing, etc.), these SOCs and SVHCs end up in the final product and/or in emissions (air, water) and/or in waste. ST does not manufacture new SOCs and SVHCs.

ST is not disclosing the amounts split into main hazard classes of SOCs due to limited guidance from the ESRS or ECHA or other external recognized bodies. Notably as of today, certain substances can be part of several hazard classes and there are no clear rules nor guidance from EFRAG on how to treat these cases. ST is currently discussing this element within ESIA and the European Commission may release a different proposal in the future, notably with an aggregation of hazard linked to environment only versus hazards linked to health and safety. In addition, substances might be assigned to other classes than the current ones. ST will provide this split upon clarification of this matter and additional guidance.

Addressing the challenges of water scarcity and wastewater treatment across our operations is part of our strategy. Population growth and climate change make it increasingly important to protect this shared natural resource. Our water management approach includes water stress assessments, conservation programs, water efficiency, and wastewater treatment. We strive to implement solutions to reduce water extraction and consumption and we work closely with various stakeholders in the local communities where we operate and otherwise.

The following table lists the IROs related to water we have identified and assessed as material in our 2024 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

The water study performed in 2021 by an expert third-party, and the Climate Study, helped us understand the characteristics and impact of water scarcity. In addition to these global analyses, site-specific studies on natural hazards are also conducted where necessary due to local conditions, giving us insights into specific local water- related issues.

The above analyses served as input for our 2024 DMA and considering that the manufacturing of semiconductors is water intensive, we have identified two potential material risks of increased water shortage for our own operations and for those of our subcontractors which carry out the same manufacturing activities as us.

For our engagement with our affected communities reference is made to Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders).

We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing water-related challenges. ST sites actively engage with affected communities in various ways and according to their specific needs and the local context. This can include local NGOs, community organizations or town hall events to address community concerns. These engagements, although not standardized across all sites, provide critical insights that inform our decisions and activities aimed at managing our water-related risks.

For example, as part of the expansion of our site in Crolles, France, thorough research was conducted to understand and communicate our impacts in areas such as noise and water. A public consultation was held to present the project, allowing local stakeholders to understand the expansion and to voice any potential concerns. It included web conferences and open meetings with local stakeholders and employees. A dedicated project website was established, allowing stakeholders to ask questions and provide feedback.

Our Global Water Policy details our ambitions to manage water-related risks, including risks of water shortages, across own operations and our expectations on water management towards our major subcontractors.

This policy is available on st.com for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it, and is applied at global level and applicable to all ST entities and all employees. ST’s CHRO is accountable for its implementation. Through our stakeholder engagement, as described in Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders) we are informed of the interests of our key stakeholders, whose interests are taken into consideration by ST when setting the Global Water Policy.

The policy reflects our approach to managing water within our operations and supply chain. It states ST's ambitions for improved water efficiency and recycling, which relies on the establishment of a water governance and the implementation of monitoring strategies. The Global Water Policy covers the following matters: (i) ST's use and sourcing of water in its own operations and (ii) ST water treatment as a step towards more sustainable sourcing. The policy is based on four key principles:

•commit to water preservation;

•managing water risks and opportunities;

•development of solutions that enable effective water management practices;

•engaging with stakeholders.

The policy states ST's commitments and ambitions for improved water efficiency and recycling, which relies on the establishment of a water governance and the implementation of monitoring strategies.

The various initiatives we are engaged in to address water-related risks, and to achieve enhanced monitoring are detailed throughout the document.

As part of our water management approach, which includes action plans to monitor ST water consumption and increase recycling rates, thus mitigating risk on water shortages in ST operations, we have certifications for ISO 14001 and EMAS validations, as detailed in Appendix 11.8. Our manufacturing site in Shenzhen, China, is AWS platinum certified. ST also takes part in the RBA, whose goal is to engage with suppliers and subcontractors to foster water management best practices, thus, amongst others, mitigating risk on water shortages in ST supply chain. The RBA requires its members to implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination.

ST acknowledges that collaboration, education, and a comprehensive approach are fundamental for the effective management of water.

ST actively participates in industry best practice coalitions, such as the AWS which provides a globally recognized framework to guide water management best-practices on ST manufacturing sites, including engaging with communities. Being a member of the AWS contributes to two main objectives included in the Global Water Policy: managing water risks and opportunities across ST operations and engaging with stakeholders.

ST engages in dialogue with communities located in areas in which we operate to understand their water-related challenges and expectations such as further described in Section 3.4.4.3.D.(Affected communities - Processes for engaging with affected communities about impacts).

As mentioned in our Global Water Policy, ST acknowledges that water is a valuable and finite resource that is essential for people, society, communities, biodiversity, and the environment as a whole. ST is committed to managing its water use responsibly and sustainably, minimizing our impact on water resources.

As part of the policy:

•ST uses local water resources and converts a major proportion into ultra-pure water for its manufacturing processes and discharge all of them after treatment and control;

•ST applies strict water governance in all its plants, including water use, discharge, quality, and adherence to applicable laws and regulations;

•ST evaluates water flows and water balance, enhancing water circularity, implementing smart monitoring strategies, seeking water-related innovations, investing to reduce its reliance on freshwater resources, and improving operational resilience. ST follows rigorous procedures for the protection of water, rainwater, soil, and groundwater to preserve the natural environment and minimize any environmental risks;

•ST aims to develop partnerships with customers to innovate on water management, efficiency, recycling, or treatment.

ST's Global Water Policy requires that water-management best practices be applied at all ST manufacturing sites, including the six sites located in high water stress areas, which include R&D sites as well as manufacturing sites.

In order to achieve the objectives of the Global Water Policy ST has a water management process in place, which prioritizes best practices of water management and mitigation of risks of water shortages that could lead to business disruption or interruption for own operations and subcontractors. The process includes documentation, characterization and monitoring of water sources, consumption and discharging, seeking opportunities to conserve water, and controlling channels of contamination.

ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are ISO 14001 certified and/or EMAS validated, as detailed in Appendix 11.8. An overview of the certificates and validation is also available on st.com.

This comprehensive approach helps to reduce ST’s environmental impact and supports the overall goal of sustainable development in the supply chain. We expect all our suppliers and subcontractors to have business practices and processes aligned with our Code of Conduct, and with these standards and/or with the RBA Code of Conduct. Our largest manufacturing sites, and our suppliers' and subcontractors' sites identified at high risk, are subject to RBA third-party audits.

ST implements actions on all its manufacturing sites to improve water efficiency across its operations. Manufacturing semiconductors requires a large volume of water, and therefore we strive to improve water efficiency across our operations. All the following actions are continuous and ongoing to reach the objectives of related policies and relevant targets.

Action plans have been defined at site level, through dedicated water roadmaps for manufacturing sites, with designated water champions to help implement actions locally. Each site is responsible for creating its own roadmap according to the local context.

Some examples of the actions implemented by ST manufacturing sites to reduce their water consumption include:

•proper monitoring of water consumption, for example through the implementation of smart water metering systems that help spot consumption inefficiencies, detect leaks and water wastage;

•process optimization such as minimizing and standardizing water consumption in manufacturing
equipment in idle mode;

•improvement of drain segregation to increase recycling rates;

•recycling water issued from different technical systems including reverse osmosis and ultra
filtration systems;

•reuse of recycled water for internal industrial purposes such as cooling towers, scrubbers for air
emission treatment, and thermal processing units;

•addition of new wastewater management system to recycle water to produce ultra-pure water (see example below);

•treating our wastewater onsite or in municipal treatment plants before discharging it. Our manufacturing sites are continually improving their treatment of wastewater and the quality of
water discharge, which is carefully controlled and monitored online.

ST is engaged in various innovative projects to increase its water recycling rates. For example, at our site in Crolles, France, we started a pilot line to recycle part of the final aqueous discharges from the wastewater treatment plant. This involved launching a project to set up a recycling unit with the aim of producing ultra-pure water. This ultra-pure water can then be used in the manufacture of softened water and ultra-pure water, reducing the use of municipal water for industrial purposes. This process increases the water-recycling rate per hour.

In parallel, we are a member of ESIA, the European arm of the WSC. As part of the WSC, ESIA is playing a leading role in advancing initiatives at the WSC ESH committee, including regarding water management.

Through this unique forum, the global semiconductor industry is working together on collaborative approaches relating to, amongst others, resource conservation.

All ST manufacturing sites, including the ST sites located in areas at water-risk or at high water stress, aim to improve their water management practices through all the actions and certifications detailed above.

Finally, ST encourages its managers and employees to join volunteering initiatives aimed at improving access to safe drinking water for the communities located in the areas where we operate.

In 2024 we set a voluntary entity-specific target to achieve an annual water recycling rate of at least 60% by 2035. Additionally, it is our aim to annually save water reaching 6 million cubic meters of water saved by 2035 vs 2024. These entity-specific targets relate to ST’s own operation: our fourteen main manufacturing sites and one EWS site, as detailed in the table included in Appendix 11.9.

Although no scientific evidence was used in setting this target, based on the high-water consumption in the manufacturing of semiconductor devices, lowering our water consumption is a continuous focus for ST.

The water recycling target has been calculated starting from 2024 baseline and applying the saving in cubic meter per year anticipated by all existing projects included in our sites' multiple years plan. Simulating the recycling, after implementation of all these projects, the final result obtained was a 60% recycling rate by 2035.

The water recycling rate will be determined accounting for both internal and external recycling. The data is reported annually as a percentage of the overall water use from ST operations.

The water recycling rate is computed as follows: C+R / W+C+R, whereby: (i) C = onsite reused and recycled wastewater used; (ii) R = externally reused and recycled wastewater used; and (iii) W= external sources of water used (including rainwater).

The water saving target relates to the absolute volume of water consumption saved annually and has been set by taking into account the list of water saving projects included in sites' multiple years plan, accordingly, a cumulative saving of 6 million cubic meters of water has been estimated. As these projects will start as of 2025, the baseline value is 0 cubic meters of water saved.

In line with our Global Water Policy commitments embedded in our Global Environmental Policy, this target addresses the risk of water shortage and challenges of wastewater treatment by improvement of our water-saving and recycling rates.

The target related to our annual water recycling rate is relative to the total amount of water used annually, expressed as a percentage. The baseline value, reported in base year 2024, is 54% for water recycling (calculated using a new formula which takes into account external recycling).

The water consumption of all targeted manufacturing installations will be followed through meters or flowmeters, reported for online monitoring.

By setting this target, ST addresses the management of material impacts, risks and opportunities related to areas at water risk and those at high water-stress, notably by improving water quality and reducing water consumption, in line with the focus of our Global Water Policy, detailed in Section 3.4.3.3.B. (Water - Policies related to water).

ST targets are tools to monitor the effectiveness of the actions, that stem from our ambitions presented in our Global Water Policy. All ST manufacturing sites are working towards reaching these targets, including the sites located in areas at water risk.

In 2024, the total water consumption of ST amounted to 5,072,354 m3 out of which 1,391,169 m3 in areas at water risk which include areas of high-water stress. The information is collected in our fourteen manufacturing and four main R&D sites. The data is sourced from direct measurements or calculated from measurements notably regarding raw water incoming. In very few cases, the data is estimated for the recycled volume (4% of the total value is estimated) or the discharge water amount (1% of the total value is estimated).

The water consumption represents the amount of water drawn into the boundaries of the undertaking (or facility) and not discharged back to the water environment or a third-party over the course of the reporting period. At ST, the amounts of water drawn into the boundaries are sourced from direct measurement (i.e. meter reading) and water discharge amounts are either sources from direct measurement (upon the existence of a flow meter at site level) or result from a ratio determined at the site level. The ratio used depends on various factors, such as the rate of water evaporation and the irrigation system. Water discharges can come from discharge in surface water or discharge in sewers.

In 2023, ST mandated an external provider to perform an assessment of water-related risks. The aim was to understand to which water-related risks ST operations are exposed, and what could be the impacts of ST activities on local communities. One of the key indicators used to assess the risks associated with drought episodes was Water Stress per Watershed calculated as the demand over the supply. In addition, the areas of high-water stress were identified using the Aqueduct Water Risk Atlas tool of the World Resources Institute. Areas at water risk and areas of high-water stress have been identified following the definition from the Annex of the CSRD. Six sites, out of which two main R&D sites, are present in areas at water risk.

As of December 31, 2024, total water recycled amount to 15,927,655 m3. Water recycled is defined as water that has been used more than once before being discharged from the undertaking, so that water demand is reduced. The total water recycled is calculated based on the difference between the total of water needs (or used) and the total water withdrawn (from wells or city aqueduct). As such it derives from a combination of direct measurement and the use of a specific ratio as explained for water consumption.

As of December 31, 2024, total water stored amount to 14,124 m3. The water volume considered for water storage corresponds to the total amount of water held in water tanks for fire safety purposes. An external body is monitoring these tanks as part of ST property damage and business interruption insurance program. It provides a report including water volumes. If any, the changes in water storage are not significant as mainly due to evaporation or ad-hoc needs during one year.

We strive to reduce waste by minimizing resource consumption, recycling, and implementing circular economy programs.

Generating waste is an inevitable part of our operations. Recognizing this, we have developed a waste management strategy to limit our negative impacts. We focus on the classification, separation, and safe disposal of waste using an approach driven by local regulations and company policy. Our priority is to reduce, prepare for reuse, and recycle and we consider landfill and incineration to be a last resort.

The following table lists the IROs related to waste we have identified and assessed as material in our 2024 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

3.4.3.4.A. Processes to identify and assess material waste

We screened our sites and identified material negative impacts on the environment generated by residual internal waste from our own operations and subcontractors' activities due to the nature of related manufacturing processes and limited capacity of recycling infrastructures. For suppliers, we also considered the broad panel of activities they provide us with.

Regarding residual presence of harmful materials in our products, we recognize the importance of this topic and the negative impacts that might be caused on the environment. We have conducted the assessment considering the current state of waste management technology. However, due to the mitigating measures already in place, this negative impact has been assessed as material on an residual basis only.

For our engagement with our affected communities reference is made to Section 3.4.2.3.B. (Strategy - Interests and views of stakeholders). We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing waste-related challenges. ST sites actively engage with affected communities in various ways and according to their specific needs and the local context. This can include local NGOs, community organizations or town hall events to address community concerns. These engagements, although not standardized across all sites, provide critical insights that inform our decisions and activities aimed at managing our waste-related impacts and risks.

3.4.3.4.B. Policies related to waste

Our Global Environmental Policy, which is available on st.com for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it, states the company's commitments to limit impacts on the environment, and supports ST response to and management of its potential negative impacts on the environment resulting from generation of residual waste from own operations, suppliers and subcontractors, and the residual presence of harmful materials in the products.

Waste management and introduction of circular economy principles in ST activities are integral parts of our Global Environmental Policy, as highlighted in the following:

•Strive for pollution prevention, reduced consumption of natural resources, reduction of waste,
maximized recycling and circular economy, biodiversity protection, minimized impact of chemical substances on people and the environment;

•Incorporate environmental criteria into all stages of product life cycle, from the design phase to
procurement, manufacturing, sales, and end of life.

ST's efforts are focused on prioritizing reduction, preparation for reuse, recycling and recovery in the waste hierarchy, and to consider landfilling and incineration as a last resort. This policy therefore aims at addressing the generation of residual waste and landfilled.

To monitor and manage the potential negative impacts on the environment (landfill, waste treatment) resulting from generation of residual waste from own operations, suppliers and subcontractors, and the residual presence of harmful materials in the products, Our Global Environmental Policy states commitments to implement control measures, and audits to check that environmental procedures applicable to waste are carried out and to identify and prioritize areas for improvement, and seek to improve ST's environmental performance.

As referenced in our Global Environmental Policy, we strive to develop long term relationships with our suppliers and subcontractors choosing those with the highest responsible environmental standards and practices, which helps us to address a range of environment issues, including, materially, potential negative impacts from our residual waste and certain substances at the end of life of our products.

This objective notably involves participating in industrial programs.

As mentioned in our Global Environmental Policy, we are committed to maintain relevant environmental certifications for our sites, namely ISO 14001 certification, EMAS validation and RBA standard. Thus, these standards apply to our operational procedures regarding residual waste from own operations, suppliers and subcontractors and our management systems are set up in compliance therewith.

ST employees, suppliers, partners and other stakeholders are important for successful implementation of the policy, and therefore ST seeks to undertake the following:

•provide appropriate training to all our employees and all necessary information to our stakeholders;

•develop long term relationship with our suppliers and partners choosing those with the highest
environmental standards and practices;

•promote environmental responsibility among employees; and

•transparently communicate ST's environmental policies, practices, and impact to
stakeholders.

3.4.3.4.C. Actions and resources related to waste

We implemented tailored actions related to waste and circular economy to address its negative impacts on the environment arising from its own operations and, where relevant, its suppliers and subcontractors, arising from residual internal waste and residual presence of harmful materials in our products at the end of their life. All actions are continuous and ongoing to reach the objectives and targets set in connection with related policies.

Our waste management process prioritizes recycling over disposal in the manufacturing process to address one of its potential negative impacts by avoiding landfill and incineration. Specific action plans have been defined at site level, comprising actions referenced below, amongst others, to increase the recycling rate. ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are all certified (please refer to Appendix 11.8 and st.com for an overview).

ST addresses negative impact from waste from suppliers’ and subcontractors’ operations by requiring suppliers and subcontractors to adhere to RBA standards and to implement a systematic approach to identify, label, manage, reduce and responsibly recycle or dispose of waste.

Considering the waste hierarchy, ST implements various actions to reduce and prepare for reuse the waste generation in all its manufacturing sites.

•optimization of material packing processes;

•improving wastewater treatment processes to reduce waste sludge; or

•reusing certain chemicals from manufacturing processes in wastewater treatment processes.

Considering the waste hierarchy, ST also implements actions to enhance recycling and recovery of waste generated in its manufacturing sites, to address one of its potential negative impacts by reducing and reusing waste generated within its operations. ST strives to increase recycling rates and implement solutions to create value from waste generated by our activities, by converting waste into secondary raw materials that can be used in other industries.

•traditional recycling for paper, card box, plastics, wood and plastic packaging trays;

•recycling of sludge waste into secondary raw materials and building materials;

•recycling of metals through dismantling of electronic waste;

•recycling of silicons and metals from scrapped devices to limit extraction and transportation of virgin materials;

•use of certain chemical waste for energy recovery; and

•compost of organic waste (limiting food waste allows to reduce waste amounts sent to landfill).

ST is also setting up programs to address end of life management at a global level in our own operations:

•to implement ECOPACK processes and classification to monitor the substances used in our products, and to take action on replacement of certain harmful material where feasible, which in turn facilitates end of life and recycling when our devices are disposed of.

•improve end of life and recycling through the Sustainable Engineering Program. This program aims at including circularity and recycling initiatives, potentially leading to new services provided to customers, or any initiatives increasing levels of recycled materials in products.

ST participates in collaborative R&D projects that aim to integrate end-of-life management constraints into the development and design processes of electronic products to address negative impacts (i.e. EECONE), including the residual presence of harmful materials and dependencies on finite resources.

Based on, amongst others, the RBA Code of Conduct, ST identifies, labels and manages waste, chemicals and other materials posing a hazard to people or the environment to ensure their safe handling, movement, storage, use, recycling or preparation for reuse, and disposal. Hazardous waste data is tracked and documented. Application of the RBA framework is assessed and verified through dedicated RBA audits.

ST has set a voluntary target to prepare for reuse, recycle, and recover at least 95% of our waste, and to limit waste disposal to below 5% per year. No specific scientific evidence was used in setting this target, rather this target was deduced by maintaining the current performance, promoting waste segregation and diversification in manufacturing sites and considering new opportunities of recycling for the remaining waste today at landfill.

In line with our Global Environmental Policy, this target addresses our impact on the environment resulting from generation of residual internal waste by reducing resource consumption, increasing recycling and implementing circular economy programs.

This target is relative to total waste generated per year and is expressed as a percentage. This target relates to ST own operations only: our fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

Our performance in 2024, was a 97% preparation for reuse, recycling and recovery rate, with a waste disposal rate of 3%.

By setting this target, we address resource outflows and in particular waste management: the target is aimed at reducing the waste generation, maintaining our very high rates of preparation for reuse, recycle and recovery through extending the lifecycle of materials, and aimed at maintaining our performance in limiting the amount of waste disposed in landfills.

This target contributes to UN SDG 12.5 on substantially reducing waste generation through prevention, reduction, recycling and reuse by 2030.

Previously ST had set a target to prepare for reuse, recycle or recover 95% of our waste by 2025 and in 2024 this target was changed to be an annual target, which does not impact comparability with prior disclosures.

ST's prior target to ensure an annual landfill waste rate below 3%, has been updated in 2024. This new target has evolved and now includes both landfilled and incinerated waste without energy recovery and therefore covers all ST waste. As this new target includes bigger waste scope, future results can not directly be compared to prior disclosures.

3.4.3.4.D.2. Metrics

As per the double materiality assessment, the matter associated with resource outflows which is material for ST relates to the management of waste from our own operations.

As of December 31, 2024, ST generated a total amount of waste of 76,693,366 kg, out of which 74,499,266 kg of waste by weight diverted from disposal and 2,194,100 kg of waste by weight directed to disposal.

Waste, per the ESRS definition is understood as any substance or object which the holder discards or intends or is required to discard.

In this reporting year, ST generated a total amount of waste of 76,693,366 kg, out of which 30,231,630 kg of hazardous waste.

Breakdowns on the hazardous waste directed to or diverted from disposal along with non-hazardous waste directed to or diverted from disposal are presented in tables below.

Hazardous waste follows the standard definition i.e. waste which displays one or more of the hazardous properties listed in Annex III of Directive 2008/98/EC of the European Parliament and of the Council on waste.