SAP, a global leader in software and technology solutions, is taking significant steps towards reducing carbon emissions in its supply chain. As part of its commitment to combat climate change, the company is focusing on key suppliers to address the majority of its scope 3 emissions, which result from indirect activities such as procuring goods and services.
Recognizing the importance of collaboration in achieving net-zero emissions, SAP is actively engaging with customers, business partners, and suppliers to develop sustainable strategies. These strategies encompass a wide range of initiatives, including eliminating single-use plastics, decreasing carbon emissions, and enforcing human rights in the supply chain. Additionally, SAP is fostering collaboration with a diverse supplier network, including social enterprises, across its seven procurement categories.
To achieve its goals, SAP is planning to implement a multi-phased supply chain engagement program by 2024. This program will focus on key suppliers and aim to significantly reduce greenhouse gas emissions throughout the upstream value chain. Environmental considerations will be integrated into the procurement process, with a new sustainability classification system and environmental impact criteria being embedded in procurement documentation.
Dominik Asam, SAP’s chief financial officer and member of the Executive Board, emphasized that reducing scope 3 emissions is crucial on the path to achieving net zero. He highlighted that collaboration with business partners is vital to achieve emission reduction goals effectively.
As part of its commitment to transparency and accountability, SAP plans to work closely with its top 100 suppliers to report and record product-level emissions. The company aims to have all of its top suppliers report their company-wide emissions and product-level emissions for relevant key products by 2027. This approach will enable SAP to base its emissions reporting on actual data rather than averages, providing a clearer picture of its carbon footprint.
To facilitate the exchange of sustainability data securely, SAP intends to leverage its Sustainability Data Exchange for CO2 information exchange. This platform will increase transparency throughout the supply chain, allowing all stakeholders to collaborate more effectively in reducing scope 3 emissions.
SAP’s efforts to focus on key suppliers and establish sustainable procurement practices demonstrate its commitment to taking tangible climate action. By targeting scope 3 emissions and engaging with suppliers and partners, SAP is actively contributing to the global efforts to combat climate change and achieve net-zero emissions by 2030. As a purpose-driven company, SAP continues to set an example for the corporate sector in promoting sustainable business practices and driving positive environmental change.