Sustainability in the modern context needs to consider an organisation’s economic, environmental and societal responsibilities, or the so-called ‘triple bottom line’. The pandemic has only served to emphasise the importance finding more sustainable alternatives to our current ways of work and life. In fact, scientists have warned that .

Our current industrial age follows a model of ‘take, make, waste’, where more than 91% of raw materials are not reusable and therefore wasted. To create a future that is cleaner, greener and more equal than the world we live in today, we need to – as our global CEO puts it – “chase zero”: zero emissions, zero waste, and zero inequality.

Positively, public awareness of and mass mobilisation behind sustainability has never been greater. A 2018 UN study found , and highlighted the crucial role of non-state actors – such as private sector companies – in reducing emissions and reaching climate targets.

Enablers and exemplars

Organisations have a leading role to play in creating and advancing sustainability. In fact, purpose-driven organisations with strong cultures of sustainability have the opportunity to act as both enablers or exemplars.

Enablers provide products and services that meet the sustainability challenges faced by their customers. For example, Climate 21 is a software package that allows SAP’s customers to measure and analyse the CO2 emissions directly associated with individual products they offer in the market.

The Ariba Network, the world’s largest business network that facilitates 5.3 million organisations to trade $3.75-trillion in goods and services each year, also provide greater transparency in enterprise supply chains. This enables organisations to make informed decisions over which of their suppliers prioritise sustainability and helps ensure it remains a key priority across the supplier base.

Not every organisation can be an enabler, but every organisation can strive to be an exemplar, an organisation that leads by example in their own business operations and practices. Being an exemplar is increasingly important in talent attraction and retention. In an internal survey of SAP’s global workforce, 94% of employees believed it is essential for 51ˇçÁ÷to pursue sustainability to create positive impact.

Although progress is sometimes slow, most countries have acknowledged the need to strive for carbon neutrality. The EU, for example, has set an ambitious target for . Here pioneering organisations have another opportunity to act as exemplars by achieving carbon neutrality targets. In fact, there is scope to take bolder steps: SAP, for example, has committed to become carbon neutral in its operations by 2023, two years ahead of its initial goal.

Environmental challenges require new solutions

The issue of plastic pollution has recently gained front-page prominence as the environmental impact of especially single-use plastics becomes clearer. According to the National Geographic, and only 10%-15% of single-use plastic is recycled annually. Microplastics have also been found in fresh water supplies around the world, with as-yet unknown consequences for our health.

New initiatives to combat plastic pollution are giving hope. A new project piloted in Ghana between the World Economic Forum, Global Plastic Action Partnership, and 51ˇçÁ÷has increased visibility within the plastics supply chain and stand to benefit people, companies and the environment.

The project, involving more than 2 000 Ghanaian waste pickers, aims to measure the quantities and types of plastic they collect, with data analysed and matched to market-related prices paid through the value chain locally and abroad.

Organisations committed to sustainability can then pay a premium for socially responsible plastics, while waste pickers gain opportunities to earn fairer wages. The data generated by the project can also guide policy-makers as they determine optimal locations for building recycling facilities.

Tremendous urgency in becoming more sustainable

The UN has called on countries, leaders and organisations around the world to do things differently, think differently, and act differently to bring us closer to a more sustainable future. In a recent call-to-action, the UN put forward three priority areas that will enable the world to recover and build more resilient, sustainable and inclusive societies, namely strong leadership, improved knowledge-sharing, and effective partnerships.

With , and with high levels of climate change vulnerability, Africa is particularly vulnerable to the consequences of unsustainable and environmentally unsound practices.

African enterprises that are in a position to be sustainability enablers should invest further in innovation and product development that can assist organisations, governments and citizens in their own sustainability efforts. All organisations have a duty, however, to act as exemplars and embody the spirit of sustainability across all their practices.

As international diplomat Christiana Figueres once said, “the next eight to ten years is going to determine the quality of life for the next 100 to 200 years”. African organisations have a duty to prioritise sustainability to ensure future generations inherit a clean and liveable world where every person has the opportunity to build a bright future for themselves, their families and their communities.

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The challenge this presents is huge, but so are the rewards. In Europe alone, .

Change in the Air

SMEs have compared with large corporations. But change is in the air. Pressure to act is as large companies pass their requirements on to suppliers.

BMW is a case in point. In July 2020, the German auto group of well over 10,000 suppliers, with the goal of reducing emissions per vehicle produced by at least one-third. The company uses carbon footprint as a criterion for awarding contracts for everything from materials and components to production equipment and tools. “Our aim is to ensure the most sustainable supply chain in the entire industry,” says Oliver Zipse, chairman of the Board of Management at BMW.

BMW’s German competitor Mercedes-Benz announced that more than 75% of its suppliers are committed to supplying CO₂-neutral parts to help it achieve its 2039 ambition of CO₂ neutrality.

Other examples of large enterprises that are working with their suppliers to reduce carbon footprint include and . Nearly half of CEOs at large companies are targeting sustainability in their business operations, according to the .

But it is not only the supply chain leaders that are adding climate action to their corporate policies. Increasingly investors, shareholders, consumers, and employees are looking to business to adopt ambitious climate-related targets. Countries, cities, states, and provinces are also adding to the pressure. Over or are planned worldwide. National and international regulations may soon require to be provided on product labels and descriptions.

Open Questions Without Adequate Answers

Matthias Weigold is familiar with the complex world in which SMEs currently find themselves. The director of the Institute for Production Management, Technology, and Machine Tools (PTW) at the Technical University Darmstadt is partnering with German manufacturers to test scenarios for energy efficiency and flexibility in manufacturing processes based on the availability of renewable energy sources.

“Many SMEs hear their primary customers saying, ‘Do something about your carbon footprint and do it fast.’ They are faced with a mountain of open questions without adequate answers,” he explains. “SMEs also know that if they react too slowly and without the necessary level of detail, they could lose their most valuable customers.”

To satisfy the demands of their customers for low-carbon production, SMEs will increasingly need to adapt their manufacturing operations to the pricing fluctuations associated with the energy mix of fossil and renewable energy. The scenarios are no longer hypothetical, according to Weigold: “Exceptionally led wholesale electricity prices to go negative in Germany.”

Complicating the situation are the myriad national policies and timelines worldwide, says Weigold, who provides an example. “Over 80% of the machine tools made in Germany are exported, with the lion’s share going to manufacturers in China. Now that , German SMEs are unsure how they should react.”

At the which makes it possible to test various production scenarios under real-world conditions, 51ˇçÁ÷and PTW are modeling enterprise resource planning (ERP) software to the manufacturing environment.

“By bringing two worlds together — the business software layer and the operational layer — we can influence the efficiency and flexibility of manufacturing processes,” Weigold says, adding that it is the first project of its type worldwide.

Turning Climate Action into a Competitive Advantage

51ˇçÁ÷expects the cooperation with PTW to help it refine its new software package that enables CO₂ accounting for SMEs over the entire supply chain. The solution makes it possible for companies to manage the CO₂ footprint for each product by combining their existing ERP system — for example, 51ˇçÁ÷Business One or 51ˇçÁ÷Business ByDesign — with an energy flow model for the process. 51ˇçÁ÷partners worldwide will be responsible for applying the solution to customers’ individual and industry needs.

that SMEs are prepared to manage their carbon emissions if they have the necessary support and tools. The recently launched is a brokerage for such resources. With a growing number of members, the hub could serve as a vital part of the implementation of ambitious corporate climate action.

Emissions are typically divided into three categories, or . The main targets of 51ˇçÁ÷Business Ecology Management are the Scope 1 and Scope 2 emissions of SMEs, which directly impact the upstream Scope 3 emissions of their customers.

“Supply chains make up the part of the carbon footprint, which are not under direct influence of a company, but have the highest reduction potential because they give organizations insight into the hot spots in their supply chain,” says Jochen Mayerle, business process architect, SAP.

Mayerle emphasizes that the new product is designed to be easy to use and its implementation does not require the hiring of an expert in sustainability. Niels Hermansen, founder of the Danish 51ˇçÁ÷partner BitPeople A/S, based in Denmark, agrees. “I like that 51ˇçÁ÷has taken the initiative in this area,” Hermansen says. “It understands that SMEs have the same requirements as big companies, but do not have the same resources.”

51ˇçÁ÷Business Ecology Management is currently being testing by numerous customers and is planned for launch the third quarter of 2021.

Sandra Thiel, Agile expert, and Chris Horak, global vice president of Solution Marketing, contributed to this story.

This article first appeared on the 51ˇçÁ÷News Center.

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This helps customers understand their carbon footprint and provides a foundation for analyzing and optimizing greenhouse gas emissions. The announcement was made at the  conference, held online from June 15–19, 2020.

“In uncertain times, companies need a trusted partner to help them make confident decisions to enhance agility and resiliency during and beyond the current COVID-19 crisis,” said Thomas Saueressig, member of the Executive Board of 51ˇçÁ÷SE for 51ˇçÁ÷Product Engineering. “In today’s hyper-connected world, it’s even more important for businesses to quickly react to environmental and market changes. We’re helping to address these challenges with new ways for customers to address sustainability, lead in their industry and grow their business networks.”

51ˇçÁ÷and its partners are also offering industry cloud solutions that extend the end-to-end processes of SAP’s intelligent suite to help drive customer’s core business in their industries. SAP’s industry cloud strategy will deliver innovative, vertical solutions from 51ˇçÁ÷and its partners.

These solutions will be built on technologies in the Business Technology Platform portfolio and use an open API framework, open process model, open domain model and common business services to create a better customer and user experience.

The interoperability with SAP’s intelligent suite will enable rapid development, deployment and integration. Artificial intelligence, the Internet of Things and other advanced technologies from 51ˇçÁ÷will be available to help developers to accelerate development and deliver greater business value, enabling improved business practices and business innovation at the vertical edge.

This article first appeared on .

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This is the message from Christian Klein, CEO of SAP, who explains that organisations can increase resilience, rise to challenges, and increase profitability.

“We can achieve sustainability by reducing waste and creating circular economies,” he told delegates to the virtual SAPPHIRE NOWconference. “We can make sustainability profitable and profitability sustainable.”

The Covid-19 pandemic has shown us how helpless we can be when something unexpected hits us, Klein adds. “Digital transformation is no longer an option, but a must. When we can’t interact in person, we have to find other ways.”

While business leaders across the world are worrying about whether their companies will survive, the more technologically advanced have a better chance of survival.

“If your business is not resilient, you have nothing,” he stresses. “After that, you need to focus on profitability.”

In the current world of coronavirus, Klein says it is more important than ever to set your company up for growth.

“New technologies enable better customer experiences. They also allow for scale, and help to secure profitability.”

While the focus right now is on health, safety and business continuity, a bigger challenge is climate change, he adds. “Just as we cannot ignore the pandemic, we cannot ignore climate change.

“Imagine the impact if all industries join the fight to reduce carbon emissions,” Klein points out. “The current situation has shown us we can quickly drive change if we want to. So let’s seize the opportunity to build resilient, profitable and sustainable businesses.

“We all care about our business success, but we are also members of our communities, and should care about the world we leave behind.

“We are in the driver’s seat,” Klein says.

Sustainability is good for business too, he adds. “This is not just about the next generation, it is about customers and employees that choose companies that care about sustainability. Companies are selected not only on their performance but on their sustainability practices.

“The business values of a profitable business are clear: resilience, profitability, sustainability.

“We can help you achieve this.”

Klein was previously the chief operating officer of 51ˇçÁ÷and was responsible for the company’s own digital and sustainability transformation.

“I learnt that transformation will only be successful if there is leadership from the top,” he says. “We have been doing this ourselves for almost 50 years, and the 51ˇçÁ÷product strategy enables us to deliver the right outcomes.

“We are an innovator and business partner. We have spent time with customers to understand requirements and challenges. As a result we have evolved our vision of the intelligent enterprise.”

51ˇçÁ÷is helping companies improve supply chain and industry-specific processes, connect through the business network and embed sustainability as a critical measure of business success.

“In uncertain times, companies need a trusted partner to help them make confident decisions to enhance agility and resiliency during and beyond the current Covid-19 crisis,” says Thomas Saueressig, member of the executive board of 51ˇçÁ÷for 51ˇçÁ÷product engineering. “In today’s hyperconnected world, it’s even more important for businesses to quickly react to environmental and market changes.

“We’re helping to address these challenges with new ways for customers to address sustainability, lead in their industry and grow their business networks. 51ˇçÁ÷has the strategy, expertise, solutions and partner ecosystem to enable customers to run their business as an intelligent enterprise.”

Other announcements included:

Climate 21

51ˇçÁ÷announced the Climate 21 program to support customers in pursuing their climate-related objectives.

In a multiyear road map, 51ˇçÁ÷will work with co-innovation partners to embed sustainability metrics across SAP’s solution portfolio. This will help customers understand, analyse and optimise the carbon footprint of their products and operations along the value chain.

The 51ˇçÁ÷Product Carbon Footprint Analytics application is now available as the first solution in the Climate 21 program. The application uses data from 51ˇçÁ÷S/4HANA and third-party sources and calculates this information within the 51ˇçÁ÷Analytics Cloud solution.

This helps customers understand their carbon footprint and provides a foundation for analysing and optimising greenhouse gas emissions.

Industry Cloud

Intelligent enterprises strike the balance between optimising their current business models and innovating at the vertical edge to develop new revenue streams and growth potential using digital technologies.

51ˇçÁ÷and its partners are offering industry cloud solutions that extend the end-to-end processes of SAP’s intelligent suite to help drive customer’s core business in their industries.

SAP’s industry cloud strategy will deliver innovative, vertical solutions from 51ˇçÁ÷and its partners. These solutions will be built on technologies in the Business Technology Platform portfolio and use an open API framework, open process model, open domain model and common business services to create a better customer and user experience.

The interoperability with SAP’s intelligent suite will enable rapid development, deployment and integration.

Artificial intelligence, the Internet of Things and other advanced technologies from 51ˇçÁ÷will be available to help developers to accelerate development and deliver greater business value, enabling improved business practices and business innovation at the vertical edge.

Investment in Industry 4.0 across the supply chain

51ˇçÁ÷innovations can help companies design and manufacture intelligent products and assets that can capture and analyse the increased tide of information from sensors across the supply chain. This enables customers to move Industry 4.0 from a factory-focused initiative to a company-wide business strategy.

With Industry 4.Now, 51ˇçÁ÷will deliver innovations that companies need to create and capture a digital thread of these intelligent products and assets throughout their lifecycle to provide real-time insights back into the business processes, from design to operations.

With embedded analytics and predictive capabilities, this intelligence can empower people to make better business decisions and drive new business models and revenue streams.

Strategy for a unified business network

51ˇçÁ÷announced a strategy to bring end-to-end visibility, increased efficiency and collaboration across the entire supply chain processes, including design, planning, sourcing, procurement, manufacturing, logistics and asset operations.

By creating a network of intelligent enterprises, 51ˇçÁ÷can help companies digitalise multi-enterprise business processes for better visibility and collaboration across the supply chain ecosystem.

This initiative spans across SAP, using insights from real-time ERP, advanced analytics and successful networks solutions such as Ariba Network, 51ˇçÁ÷Asset Intelligence Network, 51ˇçÁ÷Logistics Business Network and 51ˇçÁ÷Fieldglass solutions to deliver the collective intelligence through an open and interoperable business network.

With more than $3,3-trillion flowing through these business-to business powerhouses, 51ˇçÁ÷will help enable sustainable and resilient supply chains, transform business models and provide the agility to safeguard against global disruptions.

This article first appeared on .

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“In uncertain times, companies need a trusted partner to help them make confident decisions to enhance agility and resiliency during and beyond the current COVID-19 crisis,” said Thomas Saueressig, member of the Executive Board of 51ˇçÁ÷SE for 51ˇçÁ÷Product Engineering. “In today’s hyperconnected world, it’s even more important for businesses to quickly react to environmental and market changes. We’re helping to address these challenges with new ways for customers to address sustainability, lead in their industry and grow their business networks. 51ˇçÁ÷has the strategy, expertise, solutions and partner ecosystem to enable customers to run their business as an intelligent enterprise.”

Climate 21

51ˇçÁ÷announced the Climate 21 program to support customers in pursuing their climate-related objectives. In a multiyear road map, 51ˇçÁ÷will work with co-innovation partners to embed sustainability metrics across SAP’s solution portfolio. This will help customers understand, analyze and optimize the carbon footprint of their products and operations along the value chain.

The SAPÂŽ Product Carbon Footprint Analytics application is now available as the first solution in the Climate 21 program. The application uses data from 51ˇçÁ÷S/4HANAÂŽ and third-party sources and calculates this information within the 51ˇçÁ÷Analytics Cloud solution. This helps customers understand their carbon footprint and provides a foundation for analyzing and optimizing greenhouse gas emissions.
To learn more, read “Our Decade of Delivery for Climate” by Saueressig. Also read “51ˇçÁ÷Launches Carbon Emissions Accounting System to Address Climate Change.”

Industry Cloud

Intelligent enterprises strike the balance between optimizing their current business models and innovating at the vertical edge to develop new revenue streams and growth potential using digital technologies. 51ˇçÁ÷and its partners are offering industry cloud solutions that extend the end-to-end processes of SAP’s intelligent suite to help drive customer’s core business in their industries.

SAP’s industry cloud strategy will deliver innovative, vertical solutions from 51ˇçÁ÷and its partners. These solutions will be built on technologies in the Business Technology Platform portfolio and use an open API framework, open process model, open domain model and common business services to create a better customer and user experience. The interoperability with SAP’s intelligent suite will enable rapid development, deployment and integration. Artificial intelligence, the Internet of Things and other advanced technologies from 51ˇçÁ÷will be available to help developers to accelerate development and deliver greater business value, enabling improved business practices and business innovation at the vertical edge.

To learn more, read “Innovation at the Vertical Edge: New Business Models for a Digital Economy” by Peter Maier, president, Industries and Customer Advisory, SAP.

51ˇçÁ÷Increases Investment for Industry 4.0 Across the Supply Chain

51ˇçÁ÷brings significant innovations across the supply chain from design to operations to deliver greater insights, automation and responsiveness with the Industry 4.Now initiative. These innovations can help companies design and manufacture intelligent products and assets that can capture and analyze the increased tide of information from sensors across the supply chain. This enables customers to move Industry 4.0 from a factory-focused initiative to a company-wide business strategy.

With Industry 4.Now, 51ˇçÁ÷will deliver innovations that companies need to create and capture a digital thread of these intelligent products and assets throughout their lifecycle to provide real-time insights back into the business processes, from design to operations. With embedded analytics and predictive capabilities, this intelligence can empower people to make better business decisions and drive new business models and revenue streams.

To learn more, read “Why the Time for Industry 4.0 Is NOW” by Richard Howells, vice president, Solution Management for Digital Supply Chain, SAP.

51ˇçÁ÷Announces a Strategy for a Unified Business Network

51ˇçÁ÷announced a strategy to bring end-to-end visibility, increased efficiency and collaboration across the entire supply chain processes, including design, planning, sourcing, procurement, manufacturing, logistics and asset operations. By creating a network of intelligent enterprises, 51ˇçÁ÷can help companies digitalize multienterprise business processes for better visibility and collaboration across the supply chain ecosystem.

This initiative spans across SAP, using insights from real-time ERP, advanced analytics and successful networks solutions such as AribaÂŽ Network, 51ˇçÁ÷Asset Intelligence Network, 51ˇçÁ÷Logistics Business Network and 51ˇçÁ÷FieldglassÂŽ solutions to deliver the collective intelligence through an open and interoperable business network. With more than US$3.3 trillion flowing through these business-to business powerhouses, 51ˇçÁ÷will help enable sustainable and resilient supply chains, transform business models and provide the agility to safeguard against global disruptions.

To learn more, read “Creating a Unified, Open and Intelligent Business Network” by Chris Haydon, president, 51ˇçÁ÷Procurement Solutions, and Paige Cox, senior vice president and head of Digital Supply Chain Networks, SAP.

The post 51ˇçÁ÷Delivers Innovations That Tackle Supply Chain And Industry Challenges; Embedding Sustainability For The Post-Pandemic Era appeared first on 51ˇçÁ÷Africa News Center.

The question is no longer if but how fast and how large the .

While experts, activists, and politicians debate the correct response, it is clear that , , and will not be nearly enough to bend the global warming curve.

The current COVID-19 pandemic could mark a turning point in progress on climate change; the has been advanced as a silver lining of the crisis. Estimates by the United Nations (UN) show that emissions must fall by 7.6 percent every year until 2030 to keep temperature increases to less than 1.5°C.

As companies emerge from the crisis, they have to expect that they will be faced with legislation that stipulates a sustainable recovery through tighter CO₂ regulation. This would significantly impact operating costs. The largest carbon producers will feel the push for climate action beginning in highly developed markets, followed successfully by others.

A challenge to corporate reputation is another risk not to be underestimated, as companies are increasingly and the public whether their businesses and products are contributing to the solution or to the problem.

Make the World Run Greener

A few months ago, Thomas Saueressig, member of the Executive Board of 51ˇçÁ÷SE leading Product Engineering, launched an initiative to understand how 51ˇçÁ÷S/4HANA and other 51ˇçÁ÷applications could help customers manage their carbon footprints.

The initiative resulted in Climate 21, a program that reaches well beyond the corporate practices of emissions reporting to data about product-related greenhouse gases and other sustainability issues that help businesses and consumers make more responsible buying decisions.

In January, top management made the company’s first statement to the market on Climate 21 at the World Economic Forum.

Manage the “Green Line”

Saueressig’s vision for the company’s enterprise resource planning (ERP) products is to add sustainability as the third dimension to driving business success: the “green line,” as he calls it.

“51ˇçÁ÷helps customers manage the top line and bottom line of their business, and we run the supply chains and value chains of the largest companies in the world,” Saueressig said. “So we are in the best position to now help companies manage their green line by minimizing the carbon footprint and negative environmental impact of their product. I believe this will help make us the leader of the next-generation ERP market.”

Not Just About CO₂

Since 1972, 51ˇçÁ÷has helped businesses to manage their enterprise resources to drive revenue, reduce cost, optimize asset utilization, streamline supply chains, and improve customer service. From this point of view, minimizing CO₂ and other greenhouse gases is just an additional factor in an enterprise’s target function.

“On the way to a more sustainable future, 51ˇçÁ÷has a critical role to play in helping companies understand, monitor, and optimize their CO₂ transactions — up and down their supply chains as well as in their asset base,” said Toby Croucher, head of Solution Management for Climate 21 and Sustainability at SAP.

Green Line Benefits for Companies and Consumers

The Climate 21 program team is planning a phased approach to crafting the solutions that companies can use to manage their green line. This starts with understanding the composition of the CO₂ footprint that products accumulate over the entire value chain and looking at product design, operations, and supply chains.

The idea is to share the CO₂ product footprint with business customers and consumers to enable them to make climate-friendly buying decisions. Customers that know the CO₂ rating of each product they buy and each service they use are empowered to choose products with the smallest climate impact.

But can citizens really make a difference? Studies say yes. In the U.S., about ; reducing this footprint by only five percent would make a substantial difference. Such buying decisions would influence supply chains and reward businesses that make products and services with a smaller CO₂ footprint.

51ˇçÁ÷is busy preparing to introduce the first analytical solution. Co-innovation with leading customers across all industries in well underway and has set the company on a path to a sustainability-enabled ERP that helps companies balance top line, bottom line, and green line for the 21st century.

This article first appeared on the 51ˇçÁ÷News Center.

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