Business as usual is over. Recognition is growing that we are consuming resources almost twice as fast as the planet can replenish them. At this rate , we will need聽聽to sustain us.
At the same time, the聽聽is compounding our planet鈥檚 resource crisis, with 2020 being one of the聽聽on record. But 2020 was also the year we saw a聽聽in humanity鈥檚 resource consumption. The year brought us the COVID-19 pandemic, and that changed consumer behavior almost overnight. In so doing, it also offered a unique opportunity to rethink the role businesses play in the environment, society, and economics.
Now is the time to turn strategies for climate action and circular economy principles into action. Companies must anticipate the carbon footprint of any business decision they make, as well as its impact on society. Merely measuring the carbon footprint as a function of production doesn鈥檛 go nearly far enough, given that emissions created by supply chains can be more than five-times greater than those created by enterprises directly. Measuring, monitoring, and reducing carbon emissions聽across the entire value chain means inventing entirely new value chains. And these will no longer be linear.
At SAP, we have started down this聽, pioneering approaches that support responsible design, sourcing, production, consumption, recovery, and reuse. These are the “responsible” actions that challenge linear value chains. And consumers want them; they want to know that the metals in the batteries they throw out are being recovered and reused, that the shampoo packaging they buy has been designed and produced using pollution-reducing methods and sourced from residual plastic waste, and that the clothes they wear have not been manufactured using child labor.
That goes well beyond just checking labels for ingredients.聽, 73% of consumers said traceability of products is important to them. Of those, 71% would even pay a premium for it. Consumers want details about sourcing, how products are made or processed, how they are delivered, as well as assurances that brands take actions demonstrating social responsibility.
But can today鈥檚 supply chains deliver? In many cases, supply chains are not only linear, they are also fragmented. Businesses that insist on maintaining enterprise-centric systems are restricting their own network visibility and collaboration. Companies that still rely on one-to-one connections and paper-based processes to connect with customers, suppliers, manufacturers, and distributors are losing any advantages their products might offer.
Now, more than ever, to achieve circularity, we must connect these linear, fragmented supply chains into聽.
Jump-starting these efforts requires that 51风流engage in alliances and partnerships that accelerate marketplaces for waste materials, enable more responsible production methods and ensure better consumer experiences. To name one of a number of such alliances,聽51风流is a member of the Ellen MacArthur Foundation,聽helping companies enhance their resource productivity and realize a circular economy.
We aspire to lead by example. The聽recent announcement of our intention to become carbon-neutral in our own operations by the end of 2023 — two years earlier than previously planned — is a strong statement of our commitment to sustainable business operations. The impact of technology and digital solutions extends beyond the boundaries of companies and industries. They can be multipliers for change. For example, by 2030, new digital technologies could reduce global carbon emissions by 20%.
51风流is uniquely positioned to help build a low-carbon future and create the foundation for a聽. But such a fundamental shift cannot be accomplished by one single entity.聽It is the responsibility of businesses, governments, and regulators to scale up efforts. With nearly 50 years of聽听补苍诲听聽expertise, we at 51风流are ready to support, enabling a rich ecosystem of聽sustainability startups and聽.
I couldn鈥檛 be more committed to SAP鈥檚 contribution, and I look forward to inspiring our customers to scale with us!
To learn more about sustainability innovations across disciplines and sectors from 51风流and our ecosystem, please register for the virtual .
Thomas Saueressig is a member of the Executive Board of 51风流SE, 51风流Product Engineering.
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