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WE CARE

 

At SGM, we are dedicated to building a responsible and resilient business through our focus on Environmental, Social, and Governance (ESG) principles.

We align our sustainability efforts with the United Nations Sustainable Development Goals and follow industry best practices to ensure a lasting, positive impact both within our organisation and in the communities we serve. This means continuously working to reduce our environmental footprint, support people and culture, and uphold strong, transparent governance.

 

ENVIRONMENTAL RESPONSIBILITY

  SUPPLY CHAIN & CARBON REDUCTION

Our products can be complex, and as a result, our supply chain is diverse. We are committed to ensuring that our supply chains are free from conflict minerals, that human rights are respected, and that the embodied carbon from both manufacturing and transportation is minimized to the best of our ability. We are in continuous dialogue with our existing suppliers and request ESG statements from all new partners to ensure alignment with our values.

We increasingly collaborate with local supply chain partners—many located in Denmark or Scandinavia—to reduce the carbon footprint of our products. This not only minimizes transport-related emissions but also increases the use of components manufactured using renewable energy sources.

Continuous improvement is essential to us. We are planning to quantify our emissions following the Greenhouse Gas Protocol, including Scope 1, 2, and 3 emissions. This will provide us with a comprehensive understanding of our full value chain emissions and help us identify the greatest opportunities for reduction.

UN Sustainable Development Goals 8, 9, 10, 11, 12, 13 & 15

  PRODUCT EMBODIED CARBON      

We are committed to increasing transparency and reducing environmental impact throughout the product lifecycle. As part of this commitment, SGM conducts embodied carbon analyses on all products designed from 2023 onwards.

To support this effort, TM65.2 Embodied Carbon in Building Services: Lighting, published by CIBSE (The Chartered Institution of Building Services Engineers), outlines the calculation methodology for assessing embodied carbon emissions in lighting equipment. It enables lighting manufacturers to conservatively estimate the global warming potential of their products, serving as a step toward obtaining full Environmental Product Declarations (EPDs) in the future.

UN Sustainable Development Goals 9, 11, 12, 13, & 15

  POWER AND ENERGY    

We are committed to reducing our environmental footprint through the use of 100% renewable electricity at our headquarters in Denmark and our North American office in Orlando, Florida. In Denmark, our operations are primarily powered by wind energy, while our Florida office relies on solar photovoltaic panels.

To ensure transparency, we use Guarantees of Origin that document our exclusive use of renewable electricity and our direct support for renewable energy production. This significantly reduces our Scope 2 greenhouse gas emissions.

Additionally, our local supply chain partners across Scandinavia and Northern Europe typically operate on a majority and in many cases entirely renewable electricity, further reinforcing our commitment to responsible production practices.

To further enhance the energy efficiency of our facilities, we repurpose excess heat from our in-house “burn-in” testing area to help heat our buildings. This is just one example of the many initiatives we implement to reduce our environmental impact. Another initiative is that the majority of our lighting is sensor-controlled, ensuring that energy is not wasted on unnecessary illumination.

UN Sustainable Development Goals 9, 12, 13, & 15

  RENEWABILITY AND REPAIRABILITY

SGM products have a long history of repairability. Almost all SGM products can be refurbished or repaired, down to component level, as our products are designed using industry leading components sourced through reputable suppliers. 

Built for Repairability — Designed to Last.

UN Sustainable Development Goals 9, 11, 12, & 15

  RESOURCES AND RECYCLING

Where possible, we use supply chain partners which can provide recycled materials, including aluminium extrusions and molds. The energy used for the initial production of aluminium is “bound” in the metal, and therefore remelting requires only a fraction of the original energy. All 2024 and later designed products are made with a majority of recycled aluminium.

Since 2024, we have been actively phasing out all non-FSC certified cardboard boxes across our packaging operations. In parallel, we are working closely with our packaging suppliers to adopt more sustainable materials wherever possible without compromising the protection and integrity of our products during transport.

UN Sustainable Development Goals 9, 11, 12, 13, 15

  PRODUCT DESIGN

The product design of SGM emphasizes dependability, repairability, and renewability. Nearly all SGM products can be refurbished or repaired down to the component level, thanks to their modular design and high-quality parts sourced from trusted suppliers. For years, SGM products have been renewable through component replacement and recalibration. 

The development of the latest SGM product also focuses on the use of safer, lower-impact materials. We are phasing out toxic substances such as adhesives and chemicals restricted under Cradle-to-Cradle Certified V3 while maintaining exterior-rated technologies that ensure durability. Furthermore, we actively design in materials with lower embodied carbon wherever possible.

UN Sustainable Development Goals 9, 11, 12, 14, & 15

 

SOCIAL VALUES

Supply chain

  SOCIAL VALUE CHAIN     

At SGM, we strive for responsible procurement by working with reputable sources and building long-term partnerships. We are increasingly working with suppliers and partners with clear ESG statements, encouraging good social and environmental practices across our value chain. We aim to ensure that our value chain is free from conflict metals, that human rights are respected, and that the embodied carbon from fabrication and transportation is minimized to the best of our ability

UN Sustainable Development Goals 5, 8, 9, 10, 11, & 12

Supply chain

  AN INCLUSIVE WORKPLACE    

At SGM Lighting, we are committed to creating a workplace where people thrive both professionally and personally. We support a wide range of employee needs and life circumstances, including apprenticeships, traineeships, and flexible arrangements for individuals navigating challenges. As a multinational company with a diverse team, we believe that people with all their unique backgrounds and experiences are what truly make the difference at SGM.

Our working culture is grounded in respect, adaptability, and a firm belief in every person’s potential. We actively support individuals in realising their career goals, including those with unconventional paths. Everyone deserves the opportunity to grow, contribute, and be treated with dignity.

We operate under Danish welfare principles and uphold fair, union-compliant working conditions. Employees benefit from continued education and training opportunities, as well as access to national schemes such as the Fritvalgsordning.

To support physical well-being, our canteen provides hearty and nourishing meals helping our team stay energised and focused throughout the day. We also prioritise a calm and respectful workplace atmosphere. Additionally, we contribute to education and innovation by donating equipment for research and learning purposes, supporting future generations of thinkers and creators.

Beyond work, we value connection. Informal gatherings and social activities help foster a strong sense of community, inclusion, and shared purpose across our organisation.

 

GOVERNANCE STRUCTURES

  GOVERNANCE AND BUSINESS CONDUCT

We actively participate in integrating disadvantaged citizens, young people with challenges, and refugees together with Aarhus Kommune. We are a union compliant manufacturer and follow the relevant guidelines from those unions.
We create compassionate working environments and practices. We are careful not to create excessive noise or disturbance in our places of business. We donate equipment for educational and research purposes for the local communities.
We are working towards ensuring our supply chain is compliant with our goals for sustainable business practices. We do this by increasingly using EU based suppliers, commonly in Scandinavia. We are working to set robust internal sustainability and emissions reduction targets which link to remuneration.

UN Sustainable Development Goals 4, 8, 9, 10, 12, & 13