Fair Pay & Worker Respect

In 2024, the remuneration of all employees within the Group was above the adequate wage in their respective countries.

The ratio of the annual total remuneration of the highest-paid individual to the median annual total remuneration of all employees was 9.6 in 2024. In the same year, 70.7% of all employees in the Sto Group were covered by collective agreements, with 88.0% coverage in Germany. The company's occupational injury rate (TRIR) was 14.8 in 2024, an increase from 8.4 in the previous year, with the number of accidents at work rising from 20 to 28. The average income of female employees was 15.1% lower than male employees in 2024. The voluntary employee turnover rate for Sto SE & Co. KGaA was 1.8% in 2024. No cases of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration, or the OECD Guidelines were reported in 2024. The company had 333 employees on fixed-term contracts out of a total of 5,599 employees in 2024.

Fair Trade & Ethical Sourcing

The company reported no significant violations of laws and regulations, including those related to forced or child labor, and no fines were paid during the reporting period.

Sto's Supplier Code of Conduct, which prohibits child and forced labor, is an integral part of contracts, and the company aims for 100% recognition/sign-off from all relevant Tier 1 suppliers. Around 2,400 Tier 1 suppliers were in Sto's risk assessment system at the end of 2022.

Honest & Fair Business

The company has a publicly accessible reporting system for compliance infringements, a whistleblower policy with procedures for reporting and protection, and a compliance management system that includes training and advice for employees worldwide.

All balance sheets, income statements, and cash flow statements of subsidiaries and other business units are audited by the Sto Group Accounting department, and external audits are conducted by PricewaterhouseCoopers. No conflicts of interest were reported by Supervisory Board members. The company has a zero-tolerance anti-bribery and anti-corruption policy, effective October 2020, which applies to all STO Group employees and stakeholders, and all employees receive regular compliance training. Ethical claims and compliance are independently verified through external audits by PricewaterhouseCoopers and various ISO certifications (9001:2015, 14001:2015, 50001:2018) for various subsidiaries.

No War, No Weapons

STO SE & Co. KGaA's core business is building materials, and there is no evidence of involvement in arms or defense-related activities, dual-use technology development, military AI, or defense-related lobbying.

The company's Executive Board is responsible for human rights commitments. Sto has a Supplier Code of Conduct that includes a basic humanitarian procurement guideline, stating that business partners shall not restrict access to adequate food, clothing, water, and sanitary facilities in the workplace. The company conducts annual risk analyses in accordance with the German Act on Corporate Due Diligence Obligations in Supply Chains, and risk analyses are conducted on direct suppliers as standard. Sto's 'Policy statement on Human Rights', 'Code of Conduct', and 'Supplier Code of Conduct' are aligned with the UN Guiding Principles on Business and Human Rights, and it participates in the UN Global Compact. The company has a Code of Conduct that sets out principles for responsible and legally correct conduct from employees. There is no evidence of exposure to controversial weapons, nor any information on investment in peace technology or compliance rates for ethical red lines.

Planet-Friendly Business

In 2022, the company's total Scope 1, 2, and 3 greenhouse gas emissions for 21 Sto companies were 75,263.1 tCO₂e, an increase from 67,583.3 tCO₂e in 2021.

The company aims to align its operations with the Paris Agreement's 1.5 degrees Celsius target by 2040, but no SBTi-validated targets are explicitly stated. Renewable energy accounted for 16.5% of the Sto Group’s total energy consumption in 2022. In 2023, 5.1% of the company's capital expenditure was aligned with the EU Taxonomy. Approximately 680 products hold Environmental Product Declarations (EPDs) with specific CO₂ values. EPS insulants contain up to 20% recycled content, expanded glass panels contain more than 80% recycled glass, and selected acoustic panels consist of up to 100% recycled PET fibres. The company reported no significant environmental compliance violations or fines paid during the reporting period. The company has a target to achieve climate-neutral production across the entire Group by 2040. The company plans to conduct climate risk and vulnerability assessments, incorporating climate projection scenarios, for sites and supply chain. Climate risk analysis was carried out for all economically relevant Sto locations, incorporating RCP2.6 and RCP8.5 climate scenarios up to 2050. The reprocessing of over 3,041 intermediate bulk containers (IBCs) saved the equivalent of 291.8 tonnes of CO₂ emissions. The company supports the Development and Climate Alliance, which aims to achieve global climate action targets with the involvement of countries in the Global South.

Respect for Cultures & Communities

The company reported no cultural appropriation incidents in 2023-2024.

Sto SE & Co. KGaA buys approximately 75% of its procurement volume in Germany and the remaining 25% in Europe. The company supports the restoration of a medieval fortified church and rectory in Metiș, Transylvania, which is one incident of cultural site protection. Learning content and materials are available in 14 languages. A standardized reporting system for compliance breaches is publicly accessible via the website, but its coverage across operational sites is not specified.

Safe & Smart Tech

The company states compliance with the General Data Protection Regulation (GDPR) and the Federal Data Protection Act.

It also utilizes Binding Corporate Rules (BCR) and EU standard contractual clauses for data transfers. Users are granted rights to information, rectification, erasure, restriction of processing, data portability, and objection. However, the company retains some data for up to 10 years, which is a significant retention period.

Zero Waste & Sustainable Products

Sto utilizes recycled content in several products and components. The absorber for the StoSilent Frame system consists of an expanded glass panel made from 95% recycled glass.

Selected Sto acoustic panels contain up to 100% recycled PET fibres, and a synthetic resin adhesive product has 77% secondary raw materials. EPS insulants contain up to 20% recycled content from production and construction waste. The company aims to reduce critical hazardous materials and harmful substances in its products by 5% each year or earlier than legally required, and proactively seeks alternatives. Hazardous waste is collected by certified disposal companies and disposed of according to legal requirements. Sto has a corporate objective to reduce waste from its own production facilities by 5% per year relative to total tonnage and aims for zero landfill for packaging, product, and construction-site residues by 2030. The company has had no waste disposal violations in the past three years. Sto is committed to extending the useful life of its products, particularly in thermal insulation, with a target to extend the official useful life of EWIS to over 50 years by 2025.