Better Health for All
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SGL Carbon's products, primarily carbon-based materials, have no significant positive or negative health impact overall, though some applications in medical technology offer benefits like reduced radiation exposure.
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The company has an outstanding safety record, with a Lost Time Injury (LTI) frequency rate of 1.5 per million working hours in 2024, 1.6 in 2023, and no fatal accidents in the last six years.
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However, it has faced 7 workplace safety or health violations totaling $81,584 since 2000, including three penalties in 2023.
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For health externalities, SGL Carbon has 13 records of environment-related offenses totaling $822,930 since 2000, including 1 water pollution violation and 3 air pollution violations.
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The company has reduced Scope 1 and 2 CO2 emissions by 39% from 2019 to 2024 and aims for climate neutrality by 2038.
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SGL Carbon maintains a whistleblower system, revised in 2024 to comply with the German Act on the Protection of Whistleblowers, and conducts risk assessments on human rights compliance.
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The company provides employees with training, including online and in-person human rights training, and holds global Safety Days.
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Occupational health and safety is a core component of the corporate strategy, with flu vaccinations offered at various German locations and regular site inspections.
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Fair Money & Economic Opportunity
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SGL Carbon SE is a manufacturer of carbon-based products, not a financial institution.
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The company does not offer lending or deposit services to consumers, nor does it provide debt products or financial products requiring disclosure.
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Therefore, KPIs related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, data accessibility, fair lending compliance, debt burden ratio, and product simplicity, are not applicable to its core business. While SGL Carbon offers employee retirement benefit plans and vocational training, these are not specific inclusion or wealth-building programs for external low-income, SME, or micro-segments, nor are they financial literacy initiatives for customers.
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The company's geographic presence
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and Aid & Relief operations
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are for its manufacturing and logistics, not for providing financial service access points.
Fair Pay & Worker Respect
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SGL Carbon reported a safety incident rate of 1.5 accidents per million hours worked in 2024, which translates to a TRIR of 0.3 per 200,000 hours.
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For SGL Carbon Fibers Limited in the UK, the median hourly pay gap for women was 3% in 2022-2023, meaning women earned 97p for every £1 earned by men.
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The mean hourly pay for women was 20% lower than for men.
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The median bonus pay for women was 36% lower than for men, and the mean bonus pay was 18% lower.
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Employee engagement, based on Glassdoor reviews, shows an average rating of 3.6 out of 5 stars, with a 67% recommendation rate.
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The company's voluntary employee turnover rate was 15.39% in 2024.
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Since 2000, SGL Carbon has accumulated 22 penalty records totaling $1,139,514, including 8 safety-related records and 1 competition-related record.
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Fair Trade & Ethical Sourcing
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SGL Carbon includes enforceable ethical-sourcing clauses in 99% of its supplier contracts.
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Honest & Fair Business
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SGL Carbon incurred $182,864 in ethics-related regulatory fines over the past three years, including OSHA fines in 2023 totaling $43,764 and an EPA fine in 2021 of $139,100.
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The company has had zero financial restatements in the past five years. SGL Carbon operates a global whistleblower system, accepting anonymous reports and providing mandatory protection for whistleblowers, with reporting available in multiple languages and via phone numbers for Germany, North America, and China.
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Whistleblowers receive an acknowledgment within 7 calendar days and feedback within 3 months.
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In fiscal year 2024, 10 of 14 submissions related to human rights and the Code of Conduct, with 2 confirmed violations leading to punitive action.
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The anti-corruption management system is externally certified to ISO 37001:2016, and a new Anti-Corruption Policy was introduced in 2022, with 2,121 employees acknowledging it by the end of 2023.
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The separate non-financial Group report received an unqualified limited assurance audit opinion from KPMG, and the compliance management system underwent a surveillance audit to ISO 37301:2021.
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The company reports that 75% of its board members are independent, with no material related-party interests reported by Board of Management or Supervisory Board members in the reporting period.
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Kind to Animals
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SGL Carbon explicitly states that animal testing is not relevant to its business model, and this topic was excluded from its sustainability matters.
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Consequently, there is no information available regarding cruelty-free certifications, alternative testing methods, animal testing policies, or the volume of animals used in testing.
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Similarly, the company manufactures carbon-based products and does not report on animal-derived inputs, humane certifications for animal operations, or cage-free sourcing, indicating these are not applicable to its business.
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There is no evidence of R&D investment in animal-free technologies, participation in animal-free R&D collaborations, or public policy engagement related to animal welfare.
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While the company engages with suppliers on environmental and human rights issues,
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there is no specific data on animal welfare audits for suppliers.
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Although SGL Carbon addresses biodiversity as part of its environmental strategy
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and has a project to plant over 2,500 trees at a former industrial site,
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there are no measurable biodiversity or species recovery metrics directly related to animal conservation.
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No War, No Weapons
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SGL Carbon is a sub-awardee on a contract for nuclear weapons production facilities, and it supplies CFRP components to the defense industry.
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The company acknowledges that some of its products are dual-use items with both civil and military applications, subject to export controls to prevent misuse.
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Its Code of Conduct supports efforts to combat the misuse of dual-use items and prevent the proliferation of weapons of mass destruction and terrorism.
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The company's General Purchasing Conditions require suppliers to guarantee that goods do not contain conflict minerals, and its Code of Conduct states that SGL Carbon does not use conflict minerals in its products and expects the same from business partners.
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In 2024, 99% of relevant suppliers signed the Business Partner Code of Conduct, which includes guidelines for dealing with conflict minerals.
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SGL Carbon is a signatory to the UN Global Compact, and its Supplier Code of Conduct includes a binding commitment to its principles.
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The company's Public Human Rights Statement, finalized in October 2024, states that human rights, climate, and environmental criteria are considered when selecting and evaluating suppliers.
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Human rights risk analysis was intensified in 2024, and risks are regularly analyzed.
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The General Purchasing Conditions prohibit suppliers from engaging in bribery, human rights violations, or child labor.
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In 2024, 10 out of 14 whistleblower submissions concerned human rights and the Code of Conduct.
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The company's Code of Conduct bans autonomous lethal systems and cluster munitions.
Planet-Friendly Business
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SGL Carbon's total GHG emissions (market-based) for 2024 were 567 kt CO2e, representing a 47.9% reduction from 1,088,112 tCO2e in 2023.
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A near-term science-based target was validated by SBTi in March 2023, with commitments to reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030 from a 2021 base year, and Scope 3 GHG emissions from upstream transportation and distribution by 51.6% per tonne-km by 2030 from a 2021 base year.
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A long-term target was submitted for validation in December 2023.
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The share of renewable sources in total energy consumption was 24.7% in 2024.
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In 2023, total water withdrawal was 5.41 million m³, with a water withdrawal intensity of 5.0 m³ per €1,000 of sales revenue.
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Eight out of 29 SGL sites are located in regions with very high water scarcity.
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The total amount of waste generated in 2024 was 27,226 t, with 78.9% of waste not recycled.
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The proportion of capital expenditure associated with Taxonomy-eligible economic activities was 28.5% in 2024, but 0.0% was Taxonomy-aligned.
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By the end of 2024, the Graphite Solutions business unit had subjected around 54% of its product portfolio to PCF assessment.
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In 2024, 2.4 kt (2.1%) of reused or recycled secondary components were used.
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The company expects approximately one-third of emissions to be unavoidable by 2025 and will need to be compensated, but no carbon offset quality rating is provided.
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99% of relevant suppliers signed the Business Partner Code of Conduct, and suppliers are subject to an ESG risk assessment via Integrity Next.
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SGL Carbon has faced environmental compliance violations, with a penalty total of $822,930 for environment-related offenses across 13 records since 2000, including water and air pollution violations.
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However, zero environmental issues or incidents were reported in 2023.
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The company's ESG Factbook includes TCFD reporting standards indices, and climate-related transition risks are classified according to TCFD.
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Climate scenario analysis used three IPCC Shared Socioeconomic Pathways (SSP1-2.6, SSP3-7.0, and SSP5-8.5).
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Polystyrene linings for specific cardboard packaging were replaced with recycled cardboard bags, and paper is used instead of plastic for packing slip envelopes.
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The company aims to be climate-neutral in Scope 1 and 2 by 2038 and reach net-zero greenhouse gas emissions across the value chain by 2050.
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Respect for Cultures & Communities
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The provided articles, including the Annual Report 2024, Sustainability Statement 2024, CSR Reports for 2021 and 2023, Code of Conduct, and Human Rights Statements, consistently indicate a lack of specific quantitative data for all KPIs related to 'Respect for Cultures & Communities'. Metrics such as formal partnerships with indigenous or local community groups, percentage of revenue reinvested in local community development, cultural appropriation incidents, cultural impact assessment protocols, local employment ratios, coverage of formal grievance mechanisms for community concerns, average complaint resolution time, FPIC participation rates, community governance inclusion, cultural preservation investment, local procurement share, indigenous supplier count, cultural site protection, social license to operate, charitable giving to cultural heritage organizations, community fund allocation, language inclusivity, cultural incident response, and cultural sensitivity training completion are explicitly stated as 'not reported', 'not specified', or 'lacking specific quantitative data'.
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Therefore, no KPIs can be scored based on the provided evidence.
Safe & Smart Tech
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The company reports no incidents of unauthorized data use for 2024.
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It states that data is processed only as necessary for contract performance and legal obligations, and describes user rights under GDPR, including access, rectification, and erasure.
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The company explicitly states compliance with GDPR and supplementary national data protection laws, as well as other relevant national and international regulations.
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Zero Waste & Sustainable Products
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SGL Carbon diverted 38.66% of its total waste from disposal in the reporting period.
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The company's products have 56.2% recyclable content, and its packaging has 94.0% recyclable content.
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Recycled content in products and services is 2.1%.
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The Process Technology business unit offers end-of-life service with custom solutions for plant recyclability, including refurbishment or reuse of components.
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Circular design principles are applied across all product development, with products designed for reliability, durability, and repair opportunities.
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The company has implemented waste reduction initiatives, including a principle of prevention before recycling before disposal, and aims to continuously reduce waste volume.
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Hazardous waste management is compliant with operating permits, and hazardous waste volume decreased by 6% from 2022 to 2023.
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Waste audits are conducted monthly by the central corporate EHSA unit in cooperation with local EHS managers at all sites.
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The company had no waste disposal violations in the past three years. Material efficiency is at the industry average, with 24.3 tons of waste per €1.0 million sales in 2023.
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SGL Carbon plans to set circular economy and waste management targets by the end of 2027.
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The Business Partner Code of Conduct requires suppliers to obtain necessary permits, recycle, and avoid waste and hazardous substance release.
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