Reader's guide

Report scope and profile

This is a report of how responsibly we have performed as a company in the calendar year 2007.

It covers all STMicroelectronics NV’s activities and sites, unless otherwise stated. You can find details about ST’s structure and countries of operation in the chart on page 1.

For additional information you can look at reports from previous years at http://www.st.com/stonline/company/cr/reports/index.htm.

This year we have chosen to continue to present examples of best practice from sites, regions, product groups and central organizations to illustrate our successes, but also our challenges, in each section of the report. We want to demonstrate the growing company-wide awareness of Corporate Responsibility that our activities reflect.

Each chapter of the report is organized in the same way as last year, with articles, interviews and concrete actions deployed at ST sites at the beginning of the chapter and then a performance overview, which presents detailed results and figures on our Corporate Responsibility performance.

Adherence to GRI and the UN Global Compact

This report is in accordance with the 2006 Global Reporting Initiative (GRI) G3 Guidelines, with an A+ selfdeclared rating checked and confirmed by GRI. If G3 indicators are not applicable or relevant to us we explain why we do not report on them either in the text and/or in the indicator index in the html version of this report. We use our own indicators to respond to or to supplement GRI indicators (see below).

As a signatory of the United Nations Global Compact, we also endorse the Global Compact Principles. This report describes actions we have taken to implement these Principles, and serves as our Communication on Progress.

On the flap of the back cover, you will find an index that links the GRI and ST indicators to related information in the report. The link with the UN Global Compact Principles is shown in the html indicator index.

Assurance

As in previous years, Bureau Veritas Certification has been engaged to provide us assurance services.

All our Social, Health & Safety and Environmental indicators are verified by Bureau Veritas Certification France. For these sections, the audit takes place at two levels in the company. First, the auditor verifies the data collection and consolidation process, as well as the data itself at the corporate level. The auditor then verifies the data at a given local site. Each year a different site is audited – in 2007 it was our Kirkop facility in Malta.

This process helps us to ensure the relevancy and effectiveness of the indicators we use and to support our continuous improvement.

Accessibility

This printed Corporate Responsibility report provides details of STMicroelectronics’ Corporate Responsibility performance and shows how our company integrates Sustainable Excellence in its strategy and daily activity.

The report is published in English only. It is printed and is also accessible on the web, in html version, and can be downloaded in PDF format at http://www.st.com/stonline/company/cr/reports/index.htm.

Materiality

In order to respond to the most material issues in our reporting, we have sought feedback from our stakeholders in a variety of different ways:
• we took into account spontaneous feedback (e-mails, web requests);
• we organized phone interviews with external stakeholders (socially responsible investment (SRI) analysts, civil society organizations, customers, suppliers and academic institutions);
• we organized ‘road shows’ for specific audiences (SRI analysts, environmental specialists and relevant media);
• we conducted regular tracking of rules and regulations;
• we conducted benchmarking with other companies;
• we participated in multi-stakeholder and business networks, conferences and discussion sessions on key topics relating to our industry;
• we interviewed ST’s Vice Presidents involved in the key issues linked to Sustainable Excellence; and
• we launched an internal survey, and received feedback from around 75 managers and other employees.

We are aware that the ’disclosure on management approach’ required by GRI’s G3 Guidelines for each main area of our activity is very important to help readers understand how we manage material issues and potential risks. As our management approach is stable and does not require an annual update, we have published it in detail in the html version of this report only, at the beginning of each performance overview section.

Indicators and use of symbols

Where relevant, we have used our own company indicators to give a complete and accurate picture of our performance. These are all prefixed ‘ST’. We have also identified a number of Key Performance Indicators (KPIs), which are shown as .

A detailed table on the inside back cover provides a summary of the results of all Key Performance Indicators for the current year. There is also a full indicator index in the html version of this report .

We have used a few symbols to illustrate:
• the level of achievement of our objectives

	In progress
	Target achieved
	No progress

High-level objectives are all specified on page 10 and are detailed in sub-level objectives in each performance overview section of the report;
• references to our Environment, Health & Safety Decalogue:

Feedback and contact details

We are committed to improving both our Corporate Responsibility performance and the ways we communicate to our stakeholders. We encourage contributions and debate from all stakeholders and welcome feedback on the content and presentation of this report, as well as suggestions for next year.

In order to receive your feedback, we have developed an online form: http://www. st.com/stonline/company/cr/2006/feedback.htm, please do not hesitate to use it.

You can also contact us directly at corporate.responsibility@st.com
or contact
Kate Rigge
STMicroelectronics
Corporate Headquarters
39, Chemin du Champ-des-Filles – C.P. 21
CH-1228 Geneva – Plan-Les-Ouates
Switzerland



Although reasonable efforts have been made to ensure the consistency of the summary financial information for the year 2007 in this report with ST’s financial reporting, reliance should only be placed upon the complete financial reporting contained in ST’s Annual Report on Form 20-F for the year ended December 31, 2007, as filed with the SEC on March 3, 2008 which can be found at www.sec.gov.

Some of the statements contained in this report that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as ’believes’, ’may’, ‘will’, ‘should’, ‘would be’ or ‘anticipates’ or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of the relevant risk factors are described in “Item 3. Key Information— Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2007. We do not intend, and do not assume any obligation, to update any information or forward-looking statements set forth in this report to reflect subsequent events or circumstances.