How Does SAP's Software Drive Sustainable Supply Chains?

SAP, a world leader in enterprise resource planning (ERP) software, is driving change in sustainability efforts across the globe.

With its software solutions powering 87% of global commerce, SAP is uniquely positioned to influence sustainable practices throughout supply chains.

The company's focus on decarbonisation and environmental responsibility is transforming how businesses address sustainability.

Founded in 1972, SAP has grown into the largest ERP vendor in the world and the biggest company in Germany by market capitalisation.

Its leadership in sustainability has been recognised, with the company holding the top spot in the Dow Jones Sustainability Indices for 16 consecutive years. In 2023, SAP reported revenues of US$34.2bn and employed over 106,000 people.

Christian Klein, CEO of SAP, emphasised this commitment: “In 2023, SAP achieved carbon neutrality in its own operations and continues to focus on achieving net zero by 2030 along our value chain.

"Further, we intend to make an even bigger contribution to sustainability by helping our customers accelerate their respective journeys. Roughly 1,000 new customers chose SAP’s sustainability solutions in 2023 alone.”

Sustainability at SAP

SAP’s sustainability journey extends far beyond its own operations. Achieving carbon neutrality in 2023, two years ahead of its target, is a testament to its drive for environmental responsibility.

The company has also made substantial progress in recycling, with 93% of its discarded equipment either recycled or reused.

SAP is working to implement an environmental management system (EMS) that complies with ISO 14001 standards across all its major company-owned sites by 2025.

The company has also successfully reduced its Scope 1 and 2 energy consumption by 11%, further demonstrating its commitment to cutting emissions and promoting sustainable business practices.

But SAP’s mission goes beyond meeting its own sustainability goals. The company is helping its customers reduce their environmental impact, enabling businesses around the world to adopt greener practices with ease.

The cloud-powered solution

SAP's software is used by 97% of the world’s greenest companies, reinforcing its standing as a leader in sustainability.

The company’s range of solutions helps businesses manage their environmental impact, and SAP’s own environmental, social, and governance (ESG) score is the highest in the software industry.

One notable example of SAP’s influence is its work with Henkel, a global consumer goods company. Henkel uses SAP Responsible Design and Production to simplify tax compliance and improve the sustainability of its products.

Henkel must comply with plastic tax regulations in countries like Spain and the UK, while also providing sustainability data to customers.

Dr Nora Mundschenk, Corporate Director for Finance Tax and Trade Group at Henkel, said, “At Henkel, we are committed to leadership in plastics reduction and offering greener options for our customers. SAP Responsible Design and Production and SAP Services and Support are going to help us do that.”

SAP also offers SAP Cloud for Sustainable Enterprises, a set of applications designed to help companies manage their sustainability performance.

The suite can be tailored to address specific sustainability challenges, making it easier for businesses to embed sustainable practices into their operations.

Daniel Schmid, SAP’s Chief Sustainability Officer, stresses the need for sustainability to be integrated into every aspect of a business.

“I am a firm believer that sustainability cannot be an add-on topic. For long-term success, companies need to truly embed sustainability in their business strategy, processes and operations end-to-end.”

Schmid, who began his journey with SAP after his start-up was acquired by the company, has played a pivotal role in shaping SAP’s sustainability efforts.

Since 2014, he has overseen SAP’s global sustainability strategy and serves as Chair of the Board of econsense, a forum dedicated to the sustainable development of German businesses.

Next month, Schmid will speak at Sustainability LIVE London 2024, where he will join a panel discussing AI in Sustainability, sharing insights on how technology can drive sustainable outcomes for businesses.

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