Are African enterprises at risk of extinction, just as millions of natural species face extinction due to the impact of climate change?聽Businesses and countries across the continent are attempting to rebuild after the devastation caused by the pandemic. It is perhaps an opportune time to take stock of whether we are rebuilding in a way that will ensure our sustainability in the long term, economically and environmentally.

When economic activity tapered down in 2020 due to the Covid-19 lockdowns, researchers noted a drop in global emissions. For a moment it appeared that the pandemic would be a catalyst for a more sustainable and less environmentally harmful global economy. However, our modern lifestyle 鈥� in many cases the very basis of global economic activity 鈥� is undermining progress made during the quieter periods of 2020. Environmentalists decried a sharp increase in deforestation last year, despite the slowdown in overall economic activity. New research also found that the average meat-eating, coffee-drinking Westerner is responsible for the loss of聽four trees annually聽as forests are cleared for cattle and high-profit crops.

Recent data indicates that the volume of聽greenhouse gas emissions will continue to grow unless there is a change in policy and business practices. So far, we have not risen to the occasion with commendable urgency. A recent Oxford study found that only $368bn of the $14.6-trillion in recovery spending during 2020 was green, with one study author saying the findings are 鈥渁 wake-up call鈥�.

Africa is expected to be one of the hardest-hit continents in terms of climate change. Our reliance on agriculture, outdated or lack of infrastructure and low levels of development leave us more vulnerable than many more developed regions.

Miracle intervention

Our business sector is also at risk.聽In the mid-2000s, as digital technologies and social media started entering the mainstream, analysts and industry experts dedicated vast column centimetres to predicting which products and business models would not survive the digital revolution.

One article from 2007 predicted the demise of several types of businesses, including record stores and newspapers.聽Many of the predictions were correct: record stores were first disrupted by iTunes and then, more recently, by streaming services. Most have shut doors. Newspapers, though still very much around, look vastly different, with most of newsroom efforts going into digital platforms. Many other types of businesses have had to either reinvent themselves or close down.

The point of the predictions was that, barring some miracle intervention, these business models would go extinct due to a combination of technology, innovation and changing consumer habits.

These predictions were made during a period of relative calm, before the global financial crisis of 2008. Fast-forward to now and I would argue you could list hundreds, even thousands, of business models facing extinction. The accelerated pace of technological progress, the rise of the data-empowered consumer, the proliferation of smartphones, the changing climate and, recently, the unprecedented impact of the coronavirus pandemic have created a storm of disruption and uncertainty.

As we collectively try to build back after the devastation of the pandemic, do we risk losing sight of our longer-term priorities, and could we be sacrificing sustainability at the altar of short-term profit? In short, yes. But there is time to course correct, albeit very little time. How can we as a business community respond to the dual challenge of economic and environmental sustainability? Start by acknowledging that the opposite of extinction is sustainability, and build sustainability into the fabric of the business.

Closer relationships

Business leaders should define a clear purpose and ensure that the purpose transcends narrow, short-term interest in favour of longer-term success. Develop a compelling vision 鈥� or reason to believe 鈥� about the purpose and bring it to life in all aspects of the business. Reframe your business objectives away from short-term wins and towards more sustainable, long-term outcomes. Realise that this requires a fundamental culture change and strong, visionary leadership.

For example, sales teams should look beyond quarterly sales targets and instead focus on developing closer relationships with customers with the aim of establishing constant exchanges of value over longer periods.

Instead of slavishly working to generate shareholder value, take a more balanced view and strive for success across social, environmental and financial metrics, the so-called triple bottom line. This may mean sacrifices in the short term, but will lead to greater success in future and help foster closer collaboration between organisations and their customers. It requires that managers and business leaders support their teams in achieving longer-term targets, which in most cases depend on a shift in organisational culture.

Evaluate supply chains and ensure every partner, supplier and provider places the same premium on sustainability. Where possible, work with and support the growth of social enterprises, which are businesses built from the ground up with purpose and sustainability at their core.

Consider the role of technology in aligning everyday decisions to sustainable outcomes.聽Building intelligent enterprise capabilities that allow for the seamless integration of new technologies to a powerful digital core also gives organisations the flexibility and adaptability to overcome new challenges and act on business priorities quicker and with greater accuracy.

Driven by purpose and with greater agility and adaptability enabled by technology, African enterprises can switch from survival mode to long-term success while bringing the continent 鈥� and the world 鈥� closer to a more sustainable society, one that works for all.聽But time is running out.

The post Sustainable or Extinct? What African Enterprises Need to Know About the Next 10 Years appeared first on 51风流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掳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 51风流SE leading Product Engineering, launched an initiative to understand how 51风流S/4HANA and other 51风流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鈥檚 first statement to the market on Climate 21 at the World Economic Forum.

Manage the 鈥淕reen Line鈥�

Saueressig鈥檚 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.

鈥�51风流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.鈥�

Not Just About CO₂

Since 1972, 51风流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鈥檚 target function.

鈥淥n the way to a more sustainable future, 51风流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,鈥� 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.

51风流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 51风流News Center.

The post 51风流to Help Customers Track Their Greenhouse Gas Emissions appeared first on 51风流Africa News Center.