Beyond Business: STO’s Purpose-Driven Sustainability Journey in 2024

In an era where business success is increasingly measured not only by profit but by impact, State Trading Organization (STO) has emerged as a leading example of purpose-led transformation. With its 2024 Sustainability Report included in annual report, STO reinforces its long-standing commitment to responsible growth, environmental stewardship, and community well-being.

“Sustainability is more than a commitment—it’s a purpose-driven journey towards creating lasting value for our people, our planet, and our nation,” the company declares in the opening pages of its report.

A Vision Beyond Profit

Rooted in a mission to deliver reliable, affordable, and sustainable products to the Maldives, STO’s approach to sustainability weaves together environmental goals, strong governance, and social responsibility. Its vision to become the leading sustainable trade partner in the Maldives is backed by concrete action—driven by policy, innovation, and employee engagement.

Sustainability, STO affirms, is not an initiative added on—it is embedded into every business decision, upheld through strict compliance standards, and overseen by the Governance and Sustainability Committee of the Board.

2024 Highlights: Energy, Innovation, and Impact

1. Advancing Sustainable Energy Solutions

STO’s climate efforts continued with investments in Liquefied Natural Gas (LNG), in collaboration with the Ministry of Environment on the Greater Malé LNG power plant. The company is also exploring alternative energy sources, including KONE’s regenerative elevator technology, which can reduce energy use in buildings by up to 45%. In addition, Nippon Paint, known for its low-VOC water-based formula, has been positioned as a sustainable product option.

2. Sustainable Construction Initiatives

As part of its commitment to greener infrastructure, STO is exploring the use of Portland Limestone Cement (PLC), which can reduce the carbon footprint of concrete by up to 10%. A comprehensive sustainability assessment is underway and expected to conclude by Q2 2025, with a focus on water conservation and recycling of concrete waste.

3. Digital Transformation and a Paperless Future

One of STO’s most ambitious goals is to become 100% paperless by 2030. The company has already achieved 20% of this target. New digital platforms for customer services, along with the introduction of digital stamps, are reducing reliance on paper while enhancing operational efficiency.

4. Ocean Stewardship and Green Shipping

Under its Save the Ocean initiative, STO launched the Ocean Drone Project, gifting a drone to Maldives Airports Company Ltd. to support ocean conservation. The company also enhanced its green procurement practices and secured key maritime certifications, including the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) ratings for its fleet.

5. Health, People, and Community

Employee well-being remained a core focus in 2024, with health camps, wellness programs, and family support initiatives rolled out across the organization. Public awareness campaigns on health further strengthened STO’s role as a socially responsible corporate citizen.

Embedding ESG at the Core

To further institutionalize sustainability, STO established a dedicated ESG function within the organization in 2024. This unit ensures that environmental, social, and governance goals are deeply integrated into corporate strategy and daily operations.

STO aligns its sustainability reporting with global frameworks such as the United Nations Sustainable Development Goals (UN SDGs) and the Global Reporting Initiative (GRI) standards. The 2024 report reflects a reassessment of material priorities and supports compliance with the Maldives Sustainability Reporting Framework (MSRF).

While external assurance has not yet been applied, the report notes that internal validation is conducted by department heads and operational managers to ensure accuracy and transparency across the board.

Board-Level Stewardship and Future-Ready Leadership

The report highlights the strength of STO’s Board sustainability competence, noting that members bring experience from diverse sectors, including social policy, governance, and executive leadership in ESG-focused organizations. Continuous training and cross-sector exposure help maintain a dynamic and future-ready governance framework.

Looking Ahead: Purpose and Progress

With a clear roadmap, measurable goals, and bold environmental targets, STO’s 2024 sustainability narrative is one of transformation with integrity. From clean energy and digital innovation to climate-conscious construction, STO is proving that responsible business is smart business.

Through transparency, leadership, and purpose, STO is not only building a more resilient future—but inviting others in the public and private sectors to join them on the journey.

“Every step we take today is an investment in a brighter, more resilient tomorrow.”