due diligence

WE act with

due diligence

We demonstrate the highest due diligence in our practices of policies and processes to all stakeholders – from corporate governance, compliance, and ethics to sourcing, manufacturing, and distribution. Quality assurance (QA) is the proof of our practices; it’s the activities that identify any concerns or matters subject to circumstances or problems, which are likely to require more diligence than others.

For us, both due diligence and QA functions play an equally significant role, deeply integrated as systematic processes across the organization – from strategic decision-making to operational procedures. And by applying risk-based approaches, we want to emphasize our most outstanding effort to place an “additional” safeguard against non-compliant behavior in new and existing businesses.

We do not have our own production facilities, but we facilitate and control our manufacturing activities in close cooperation with our 40 colleagues in our SGA (Sports Group Asia) office in China.
The SGA office is a significant advantage that profoundly strengthens our due diligence processes – the accessibility to identify, prevent and eliminate any risk, and monitor the global business activities are carried out socially and environmentally responsible.

We consistently match the expectations, evaluate existing processes and systems to bring forth a new solution or promote new initiatives that will further improve performance and positively contribute to society’s social, economic, and environmental growth.


“Quality assurance is the proof of reliability, standard, and performance. We keep our promise to our external expectations.”


Our approach to quality assurance is based on a 3-step system, a comprehensive yet efficient system used across all functional operations from strategic decision-making, issues prevention, risk elimination, and goods inspection, and further evaluation and benchmark performances.

For us, QA maintenance is an ongoing process – through sparring and dialogue, internally and externally, with partners and associates. We continually strive to optimize and improve to deliver the most advantageous level of quality assurance.

qa management

The QA management functions to determine and maintain the overall objectives of policies, standards, and requirements.

  • Policies: To ensure our internal controls comply with global (and local) legislation.

  • Standards & Requirements: To ensure that we have adequate QA processes in place.

qa assessments

QA assessments function as an inspection of matters or specific potential risks or concerns for the business activities.

  • Risk assessment: To clarify or determine potential risk within specific areas (e.g. safety, chemicals or governance).

  • Supplier inspection: To identify or clarify potential risk related to social, environmental, and technical performance.

  • Factory inspection: To ensure specific needs (capability, capacity, and efficiency) or requirements (operational standards) are in place.

QA Control

Quality Control functions as ongoing examinations of parts or components relevant for the product guaranty and performance liability.

  • Data collection and verification

  • Control of goods: To ensure the products meet the required specifications and product standards.

  • Evaluate performances

supplier relations


We represent more than 20 brands and a wide range of product groups within sports, outdoor, leisurewear, shoes, and hardware. We produce everything from skateboards, ski jackets to swimming pants. Therefore, a broad supplier portfolio is necessary to match all our needs – materials, fabrics, small components, or innovative techniques.

Our supplier portfolio has gradually increased along with the company’s emerging growth, and today we have around 150 suppliers, of which 20 suppliers have been a part of our growth from day one in 2012 – and still today count for 80 % of our production.
Cooperating with that many suppliers, we must maintain a well-organized system to monitor our manufacturing standards comply with set requirements and global regulations at all times. Therefore, we prioritize and demonstrate an extensive effort in our internal operations and our external verification of all records related to our social, environmental, and economic activities.

And, if we experience any issues, – what to do – then we choose the responsible action.

mutual commitment to business


Supplier audits provide the necessary and crucial information used in the decision-making and stored for future supplier evaluations. We conduct our own supplier audits using a digital assessment tool and system. This tool collects and structures data of social, environmental, technical, and economic parameters to identify capacity, efficiency, and performance on “quantity and quality” and benchmark across the industry or our supply chain. This is necessary information to be used in the decision-making and to be stored for future supplier evaluations.



Our “Terms of business agreement” (TBA) describes our business policy, standards, and requirements; and it functions as:

  • The contractually corporate agreement of mutual commitment to global set rules and regulations
  • Ethical behavior (outlined in the Code of conduct)
  • Responsible manufacturing behavior (outlined in the Standard operational procedure)
  • Commitment to continuously improve business practices of and between SGD and the supplier

SOCIAL compliance

the Code of Conduct

As a global company, Sports Group Denmark holds responsibility for the people who design, manufacture and sell our products and those who use them. Moreover, we are responsible for the environment in which we work: We are committed to avoiding and addressing adverse impacts on the basic principles of social, environmental, and economic development that we cause, contribute to, or are linked with via our business relationships.

Therefore, we follow the ten principles of the UN Global Compact, which is framing our principle-based policy and ethical agreement “Code of Conduct” that outlines the norms, rules, and responsibilities within the business: To cooperate in the very best interest and to work for continuous improvements of ethical conditions globally.
The Code of Conduct demonstrates equal ability and willingness from the supplier to conduct business in line with the set ethical standards and continually work to improve the impacts on human rights, labor, the environment and anti-corruption.

  • Human rights and labour: We require that all suppliers and sub-suppliers respect and promote human rights and labor legislation in all factories and facilities related to manufacturing.
  • Environment: We strongly believe it’s a must that all suppliers source and produce with a responsible approach and a precautionary mindset for the environment.
  • Anti-corruption: We have a zero-tolerance policy on anti-corruption and bribery, and we expect all of our partners to have a strict business moral throughout all operations and comply with local rules and legislation.
  • Animal welfare: Animals are entitled to humane treatment, and suppliers shall support and respect the lives of all animals. Materials or components that stem from animals must include a standard or certificate to prove the animal’s lifecycle.

To access the Code of Conduct “Click here”.

“We always strive to protect our employees’ health and safety, rights and the environment we operate in.”

Social compliance audits

Suppliers and business partners must maintain appropriate compliance records, according to the international set standards and the ethical requirements of the Code of conduct, and demonstrate their due diligence in practice via a third-party authorized audit or certification.

The supplier can freely appoint their preferred authority for third-party inspection as long as they adhere to the principles of international labor standards that protect labor rights such as ILO conventions and the UN guidelines on Business and Human Rights as well as for instructions for multinational companies in the OECD (e.g., BSCI, Sedex, Wrap, etc.).


product guarentee & safety


The Standard Operational Procedure specifies the requirements and standards in manufacturing, which the supplier must strictly follow throughout the manufacturing process.



    The fear of chemistry is widespread among people – especially in garments, as it’s in close contact with the body, and therefore we pay extra cautious attention to our use of chemicals.
    We maintain a well-defined Restricted Substance List (RSL) to protect the consumer and the environments in which they operate.
    And we follow the most acknowledged and strict bodies within chemistry. We even apply precautionary principles in some cases, which means we set our company standards to restrict chemicals higher than the international legislation requires.

    The REACH regulation defines the principal requirements of the EU limiting value of chemicals and substances in a product, and therefore fundamentally integrated into our RSL, which is determined and developed based on the principals of AFIRM Group and thus also includes the SVHC – The REACH candidate list of Substances of Very High Concern. Having this approach, we ensure, at all times, to meet the highest legal standards in the selling country, but furthermore, we also ensure that we always are prepared and adjustable to
    upcoming new legislations.

    Our customers and the consumers can feel safe when purchasing our products!

    To access The RSL “Click Here”.

      “Chemistry plays a decisive role in product innovation and development. We consistently improve our products while reducing our chemical footprint.”


      Transparency is more important than ever, and therefore we keep records of all data information relevant for each product of our different product groups. The supplier is obliged to inform about all components, chemicals, chemical compounds, and chemical mixtures used in the product or any process relevant to the product’s manufacturing.


      Testing tells us whether a product meets, exceeds, or fails the required standard. It is the critical checkpoint in the manufacturing processes of examining specific concerns relevant to the product safety, functionality, and chemical performance to ensure adequate quality of the final product and its end-use and as well, for us to continuously improve and keep track of our impacts.

      Our test standards and requirements follow the international rules and regulations and local needs of the distribution country at all times. In addition, we work in close cooperation with our nominated test institute SGS to ensure the best-in-practice approach to testing. SGS is one of the leading authorized testing and inspection companies within the industry, and their worldwide service is a valuable support for us and our global business activities.

      Quality Control

      We carry out quality control and inspections systematically and digitally regularly. The many benefits of the digital QC transformation are organizational transparency in manufacturing, maximized performance efficiency, and accurate outcome data to drive new improvements.

      Furthermore, due to the systems build-in automated translation, we can communicate directly with suppliers and their staff and have a real-time dialogue about matters or issues relevant to the manufactured product. In addition, we are experiencing a remarkable reduction in our paper use using this QC system, as printed QC docs are no longer necessary.

      “Eliminating the language barriers has been a real game changer for us to minimize potential issues in manufacturing.”

      conscious labeling

      Today, more than 700 certificates or standards are available across the different industries, focusing on “sustainability” unwanted chemicals and other textile-related concerns. It can be difficult for customers to choose and navigate between the different symbols and meanings, and likewise, for a company to decide which one(s) to use.

      But it is also highly essential to understand our limitations and deliver accurate and precise information – it’s not about quantity, but rather the quality.

      All certificates and standards are equally valuable, in some way, and we do have access and the ability to use them. But we choose to label only for information use. Labeling is meant to help the customer, not confuse.

      We believe it is necessary to communicate our stand and make the customer feel safe when purchasing our products.
      But for us, sustainability is not a label; it’s our company philosophy that we demonstrate in our products – responsibility, reliability, and guarantee. We choose to use labeling to guide and to support our customers in becoming confident in making their own choice.