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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 strive for responsible procurement by working with reputable sources and building long-term partnerships.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 increasingly working with suppliers and partners with clear ESG statements, encouraging good environmental and social practices across our value chain.

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

  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

  RESOURCES AND RECYCLING

Where possible, we use supply chain partners which can provide recycled materials, particularly aluminium molds. The energy used for the initial production of aluminium is “bound” in the metal, and recycling aluminium requires only a fraction of the original energy needed, without loss of performance. 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 transportation.

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 components 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

 

  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 their products’ contributions to global warming, serving as a step toward obtaining full Environmental Product Declarations (EPDs) in the future.

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

SOCIAL VALUES

Supply chain

  INCLUSIVE WORKPLACE    

At SGM Lighting, we are committed to creating a workplace where people thrive both professionally and personally. 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 encourage individuals in realising their career goals, including those with unconventional paths. We support a wide range of employee needs and life circumstances, including apprenticeships, traineeships, and flexible arrangements for individuals navigating challenges.

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  atmosphere in our workspace. 

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

UN Sustainable Development Goals 3, 4, 5, 8, 10, & 12

 

Supply chain

  SUPPORTING LOCAL COMMUNITIES

At SGM, we are committed to being a responsible and engaged member of the communities where we operate. We contribute to education and innovation by donating equipment to schools  for research and teaching purposes, helping to empower the next generation. We support the integration of disadvantaged citizens, young people with challenges together with Aarhus Kommune. We also take care to minimize our environmental impact to local communities by ensuring our operations do not create excessive noise, lights, or any other disturbance.


UN Sustainable Development Goals 4, 8, 10, 11, 12, & 13

GOVERNANCE STRUCTURES

  GOVERNANCE AND BUSINESS CONDUCT


As a Danish manufacturer, SGM operates in full compliance with national labor laws and union agreements, ensuring ethical and transparent business practices.We are working to ensure our supply chain aligns with our commitments to environmental sustainability and ethical business conduct. One of our approaches to this is increasingly using EU-based suppliers, commonly in Scandinavia. We are in the process of strengthen our supplier evaluation procedures to maintain responsible governance across our supply chain.

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