MASHINIi

THE SAGE GROUP PLC.

SGE.LSE | Software publishing

The Sage Group plc is a multinational enterprise software company based in the United Kingdom. It is the world's third-largest supplier of enterprise resource planning software (behind Oracle and SAP), the largest supplier to small businesses, and has 6.1 million customers worldwide. Sage develops a...Show More

Ethical Profile

Mixed.

The Sage Group PLC presents a mixed ethical profile. A notable concern is the August 2016 data breach, which allegedly compromised personal and bank details of nearly 300 UK companies via unauthorized internal access. Sage has since strengthened cybersecurity measures. Positively, Sage has a validated SBTi net-zero target by 2040, including a 50% emissions cut by 2030, and achieved 68% global renewable energy use in 2023. The company supports over 130,000 UK SMBs, reaching approximately 40% of underserved segments with subsidized products. Sage was also named a Top 50 Employer for Gender Equality in 2023, with 70% of workers reportedly earning living wages. Sage maintains a corporate ban on military sales.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-20
-100100
Honest & Fair Business-30
-100100
Kind to Animals0
-100100
No War, No Weapons-10
-100100
Planet-Friendly Business-40
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech30
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

Sage demonstrates industry-leading practices in healthcare data responsibility, evidenced by its HIPAA and HITECH compliance certification from Avertium

1
and its provision of advanced audit trails to monitor Protected Health Information (PHI) access
2
. The company also maintains a Data Privacy framework
3
, a Global Data Privacy Centre of Excellence
4
, and conducts cyber security and data privacy due diligence with suppliers and business partners
5
. Sage implements comprehensive mental health initiatives for its employees, including rolling out Employee Assistance Programmes (EAPs) in all countries
6
, establishing 157 Healthy Mind Coaches across 10 countries
7
, and offering free access to the Calm app for colleagues and their family members
8
. The company also provides a webinar program covering sensitive topics such as suicide prevention, anxiety, and financial stress
9
, and supports Colleague Success Networks for mental wellbeing
10
. For other health-related KPIs, the company's core products are general business software, resulting in a neutral impact on harmful revenue share, safety record, price accessibility, risk transparency, health externalities, healthcare workforce support, preventative health measures, pharma patent flexibility, nutrition and food safety, addiction mitigation, and clinical trial ethics. Several KPIs, including health impact core, vulnerable reach, health innovation investment, health equity programs, global health crisis response, and healthcare education, could not be scored due to a lack of specific quantitative data in the provided articles.

Fair Money & Economic Opportunity

0

The Sage Group plc is a software company, not a financial institution that directly offers lending or deposit services to consumers. As such, several KPIs related to consumer finance, including underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, fair lending compliance, debt burden ratio, geographic inclusion, and product simplicity, are scored 0 as 'not applicable' based on the rubric's definitions. Sage provides AI-driven financial insights and tools like Sage Copilot to enhance small and medium-sized business (SMB) efficiency and financial management.

1
The company also supports economic opportunity through community partnerships, including investments in Atlanta focusing on technology education and capital access for small businesses
2
, and a £1.4 million investment to support micro and small businesses in North East England with training and digital tools.
3
However, the provided articles do not contain the specific quantitative data required to score other KPIs such as data accessibility, wealth building outcomes, profit reinvestment (as a percentage of profit), or the reach and outcomes of financial literacy initiatives.

Fair Pay & Worker Respect

0

The median gender pay ratio for Sage Group's UK-based colleagues was 0.906 as of April 5, 2024, indicating women earned 90.6% of men's median pay.

1
The company's employee satisfaction rate (eSAT) was 76% in FY24, and voluntary employee turnover was 13.5% in the same fiscal year.
2
In 2017, a lawsuit alleging failure to pay proper overtime wages under the Fair Labor Standards Act was filed against Sage Software Inc. and other entities, leading to a a $750,000 settlement.
3
Sage has implemented a global anti-discrimination, bullying, and harassment policy and developed a Human Rights Charter.
4
,
5
The company publishes gender pay gap data for all UK colleagues and aims for global gender diversity in leadership, targeting no more than 60% of any gender across leadership levels by FY26.
6
In June 2023, Sage was recognized in The Times' Top 50 Employers for Gender Equality list.
7

Fair Trade & Ethical Sourcing

-20

Sage currently only has visibility of its direct (Tier 1) suppliers

1
, with plans to improve transparency for Tier 2 suppliers in FY26.
2
No incidents of forced or child labour were reported through the Whistleblower Policy during the 1 July 2023 to 30 June 2024 reporting period
3
, nor through due diligence processes or the whistleblowing hotline during FY25.
4
Most Sage suppliers are engaged on terms that include compliance with anti-slavery and human trafficking laws.
5
Sustainability clauses have been included in standard procurement contracts for both new agreements and renewals, in addition to existing anti-slavery and human trafficking provisions.
6

Honest & Fair Business

-30

Sage Group PLC has established a confidential reporting hotline and whistleblowing facility for employees and stakeholders, allowing anonymous reporting.

1
Reports are monitored by senior management and regularly updated to the Board.
2
The company demonstrates a strong commitment to anti-corruption, with a Code of Conduct outlining adherence to anti-bribery statutes, including the UK Bribery Act 2010 and other relevant laws across its jurisdictions.
3
Sage has implemented systems to counter bribery and corruption, and all employees undergo ethics and anti-corruption training.
4
A comprehensive risk management framework is in place to identify and mitigate ethics and compliance risks.
5
The company also integrates ESG screening into its supplier onboarding process and partners with EcoVadis to assess supplier ESG performance, including human rights and labor practices.
6
In FY24, no concerns related to modern slavery were raised through their supplier due diligence processes.
7

Kind to Animals

0

The Sage Group PLC operates in the application software industry, developing and providing software solutions.

1
Its core business model means it has no direct interaction with animals, animal products, or animal testing.
2
Therefore, all KPIs related to cruelty-free certifications, animal testing, humane operations, animal-derived ingredients, supplier audits for animal welfare, cage-free sourcing, animal agriculture ethics, and R&D for animal-free alternatives are not applicable.
3
The company maintains a neutral stance on animal welfare issues.
4
While Sage demonstrates a commitment to environmental sustainability, including net-zero targets and emissions reduction, these are general environmental impacts and do not provide measurable biodiversity or species-specific conservation outcomes required by the rubric for the wildlife conservation impact KPI, leading to its omission.
5
A partnership with the RSPCA involved providing software to enhance the charity's operational efficiency, which is a client-vendor relationship and not direct engagement in animal welfare policy advocacy or collaborative development of animal-free standards by Sage.
6

No War, No Weapons

-10

The Sage Group PLC does not engage in military contracts or arms manufacturing, and its core software offerings are inherently non-military.

1
The company does not derive revenue from military activities
2
and has no documented involvement in defense projects.
3
Consequently, it has no dual-use products, no exposure to controversial weapons, and no defense assets requiring divestment. However, the company has no documented stance on conflict resolution or peace initiatives, indicating no investment in peacebuilding or disarmament programs.
4

Planet-Friendly Business

-40

Sage's net-zero target for 2040

1
and near-term targets for a 50% reduction in Scope 1, 2, and 3 emissions by 2030 (from a 2019 baseline)
2
have been validated by the Science Based Targets initiative (SBTi).
3
In FY24, 54% of the company's electricity was sourced from renewable energy.
4
For supply chain climate transparency, 60% of supply chain emissions from Sage's top 100 suppliers shared carbon emissions data in FY24.
5
Furthermore, 57% of Sage's top 100 suppliers have committed to or already set science-based targets.
6
Full disclosures in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) are available.
7
The company has piloted Lifecycle Carbon Assessments for 2 products.
8

Respect for Cultures & Communities

0

The company has no reported cultural appropriation incidents. Its business model does not typically involve operations near cultural or heritage sites, and no disruptions are reported. Sage demonstrates a commitment to cultural respect and inclusion through several initiatives. In 2024, it released digital resources promoting equity and inclusion, including content on Indigenous research methods and decolonization.

1
The company is developing a Reconciliation Action Plan to engage with Aboriginal and Torres Strait Islander peoples.
2
Its Sage Foundation invests in community support programs like Sage Pathways, which helps underrepresented groups, including people with disabilities, enter the workforce, with specific hiring outcomes in South Africa.
3
Employee Resource Groups, such as the Global Majority Group and US People of Color ERG, foster workplace diversity.
4
Sage also implements a "Knocking Down Barriers" strategy to address inequality and indirectly support cultural preservation, alongside a zero-tolerance policy for modern slavery
5
and a Global DEI Strategy.
6

Safe & Smart Tech

30

Sage has not experienced any significant data breaches since August 2016, when an internal breach affected employees from nearly 300 UK companies.

1
The company has since implemented comprehensive multi-year cybersecurity programs
2
and a Cyber Security Risk Management Methodology.
3
Sage demonstrates a world-class AI ethics program, having published AI and data ethics principles in 2023,
4
established a Sustainability, AI, and Data Ethics Committee,
5
and adopted global frameworks like US NIST AI Risk Management Framework and UK Government’s AI Cyber Security Code of Practice.
6
It funds PhD research in mitigating LLM hallucinations
7
and is developing an AI Trust Label for 2025.
8
Sage maintains formal certification schemes, including internal and external audits against ISO 27001 and SOC 2.
9
All employees receive mandatory cybersecurity and data protection training,
10
with specialized training for engineers and security teams,
11
tested through simulations.
12
Sage continuously monitors AI for accuracy
13
with audit trails
14
and implements built-in safeguards to prevent algorithmic bias and harm.
15
Sage Copilot offers full transparency, allowing users to understand, control, and override AI recommendations.
16
The company prevents unauthorized data use by sharing only minimum necessary data with explicit permission
17
and conducting due diligence on partners.
18
Security is built-in from the outset of software development, adhering to secure-by-design principles.
19
Sage employs continuous security testing, including static/dynamic analysis, penetration testing, red/purple teaming.
20
Data minimization involves sharing only necessary data and using anonymization.
21
Sage maintains an industry-leading regulatory compliance program, adhering to GDPR, CCPA, and the EU AI Act.
22
It advocates for a transparent AI labelling system and for SMB customers with policymakers.
23

Zero Waste & Sustainable Products

0

No specific, quantitative evidence was found in the provided articles regarding Sage Group PLC's performance on waste diversion, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design principles, waste reduction initiatives, hazardous waste management, product durability, repairability, waste audit frequency, zero waste certification, waste disposal violations, material efficiency, packaging-to-product ratio, waste reduction targets, supplier waste requirements, or customer waste education. The articles primarily focus on carbon footprint reduction, renewable energy, and general sustainability awards, which are outside the scope of the 'Zero Waste & Sustainable Products' value unless directly related to waste management. Sage Group PLC has been named the most sustainable company in the UK by TIME Magazine for 2024

1
, ranking globally among the top 500 for sustainable practices
2
. The company received a Gold Medal from EcoVadis for its environmental initiatives
3
, including a strategic supply chain carbon reduction plan and significant uptake in renewable energy usage across its offices
4
. In 2022, 42% of Sage's carbon footprint was attributed to its supply chain
5
. In 2022, the company focused on developing a supply chain carbon reduction strategy to support its net zero commitments, set for implementation in 2023
6
. Sage acquired Spherics, now branded Sage Earth, a carbon accounting software solution enabling SMBs to estimate their carbon footprint and identify emission hotspots
7
.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.