Operational And Product Impact

We’re focused on building a world that’s always advancing and are committed to doing it sustainably. We recognize the ongoing threat of climate change and are dedicated to minimizing our environmental impact throughout our operations and value chain.

Our work to reduce our environmental footprint extends beyond our operations and into the lifecycles of the products we design and manufacture. We’ve adopted design principles that improve energy efficiency without compromising performance in our business lines. For example:

  • Penguin Solution’s technologies leverage liquid immersion cooling, which is more efficient and consumes less energy than traditional air-based methods
  • Cree LED’s products provide high-performance, low-energy LED lighting technology
  • Our SMART memory modules optimize efficiency through low-voltage technology, which minimizes energy consumption

We act with purpose, aim for impact, and incorporate principles of corporate social responsibility in everything we do at SGH. For over 30 years, we have maintained industry-leading safety and ethical conduct standards across our operations in compliance with International Organization for Standardization (ISO) standards ISO 9001, ISO 14001, and ISO 45001.

Climate Action

Climate change poses a critical threat to our planet. We are meeting this challenge by sourcing clean energy, contributing to reforestation efforts, and reducing our energy consumption.

In 2022, we expanded our commitment to climate action by pledging to achieve net-zero on Scope 1 and Scope 2 greenhouse gas (GHG) emissions across all SGH lines of business by 2030. This ambitious goal was backed by years of experience in meeting emissions reduction goals and was supported by commitments from SGH leadership, our Board of Directors, and our ESG Steering Committee. This year, we are proud to have achieved 38% renewable energy usage in our global operations, nearly double the percentage of the previous year. We also invested in carbon offsets to reduce our carbon footprint and invest in a sustainable economy.

Given that energy use is our greatest source of GHG emissions, we see energy management as our biggest opportunity to reduce our environmental impact. We are taking actions to reduce or eliminate consumption by investing in energy-saving technologies and ultimately transitioning to renewable energy sources.

In 2022, we began installing solar panels on our factory in Penang Malaysia. This installation coupled with a PPA will allows us to utilize 100% renewable energy for this facility.

Overall GHG Emissions

The details for our GHG emissions for 2022 are below:

2022 Water Withdrawal (megaliters)
Rest Of World

Overall Water Withdrawal

We have a reduction of 21% from our 2021 to 2022 water withdrawals.

Total 2022 Emissions by Location
Rest Of World


We believe that reducing waste at the source of production is one of the most important aspects of effective waste management. As such, we strive to minimize our use of natural resources and promote responsible resource consumption in our facilities. Guided by expertise from our QEHS team, we have put in place a robust waste management program that aligns with our company values and ESG goals. Our waste management strategy focuses on reducing waste production through innovative product design, packaging and shipping improvements, and maximizing reuse and recycling opportunities.

Waste reduction is a global initiative and an area of continuous improvement. As part of this initiative, in 2022 we began reporting non-hazardous waste and electronic waste, or e-waste, alongside our hazardous waste figures in order to hold ourselves accountable to our goals.

Please reference the 2022 ESG Performance Summary index for a breakdown of our waste performance at our global sites.

Reusable SGH water bottle, mug and tote bag, promote sustainability.

Waste And
Water Management

Water is a critical global resource of vital importance to our business, industries, and communities. We diligently monitor the water risk of our operations, as well as actively track, reduce, manage, and report our water use. Each year, we disclose our details of our water management program in CDP’s Water Questionnaire.

SGH also consistently looks for opportunities to reduce waste and promote recycling and reuse. In our corporate offices, we are making improvements in our business processes to reduce paper and food-related waste. In 2022, we distributed reusable water bottles, mugs, and bags to our employees worldwide to promote sustainable habits that make an impact.


For 10 years now, we have been a proud member of the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains. The RBA is committed to upholding and implementing industry best practices for management systems, business ethics, fair labor practices, safe working conditions, and environmental responsibility. Since joining the RBA, we have aligned our policies and practices with the organization’s Code of Conduct (version 7.0), along with the United Nations (UN) Guiding Principles on Business and Human Rights, UN Universal Declaration of Human Rights, International Labor Organization (ILO) International Labor Standards, and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises.
We also participate in the RBA’s Validated Assessment Program (VAP), the leading standard for on-site compliance verification. Through the VAP, factories undergo independent third-party audits against the RBA’s rigorous standards, which remain valid for two years. These audits produce in-depth assessments of the social, ethical, occupational health and safety, and environmental performance of RBA members and their global supply chains. Our VAP audits consistently demonstrate full compliance and high performance across our facilities.

Awards And Recognition

In 2022, we received recognition from several organizations on our ESG performance, including the following:

RBA Gold and Platinum Recognition

Our manufacturing factories in Brazil, Malaysia, and the U.S. have continued to receive perfect scores on RBA closure audits. In 2022, our factories in Brazil and Malaysia received Platinum recognition for their 2021 closure audits.

EcoVadis Silver Medal

EcoVadis, a leading global ESG survey and engagement platform, awarded SGH the 2022 Silver Medal for our 2021 ESG performance. SGH outperformed peer companies across the assessment categories, including Environment, Labor and Human Rights, Ethics, and Sustainable Procurement.