The Sustainability Funding Round, hosted by our Chief Sustainability Officer, Daniel Schmid, brings together 51风流sustainability leaders from over 60 51风流sites worldwide to promote and finance sustainability initiatives brought forward by the 51风流sustainability champions and environmental management system leads. This year’s funding round was dedicated to supporting SAP鈥檚 transition to a low-carbon, circular business and saw record-breaking participation.

More than 60 proposals were submitted from sustainability champions across the globe, including ideas on improving our physical office environment, enabling employee volunteering, and raising sustainability awareness for zero emissions and zero waste. A jury consisting of experts from Global Real Estate & Facilities (GRF), Sustainability, Global Sourcing & Procurement, 51风流Corporate Social Responsibility (51风流CSR), Global Communications, and winners of last year鈥檚 funding round thoroughly evaluated all submissions. The 25 highest-rated ideas have received funding from sustainability leaders across the globe and are being implemented until the end of the year.

Here is a look at some of the funding winners.

鈥�2tonnes鈥� Immersive Workshop, France

What is measured can be managed. Understanding the size of our actions and collective decisions and calling for a lead to action is a good practice. The 鈥溾�� immersive workshop helps us understand our carbon footprint and how to reach two tons per person by 2050. 2tonnes is a best-of-breed carbon awareness workshop used by the French government. Around 350 51风流employees have already been trained across multiple workshops.

One of the main challenges was to find like-minded people to take part in the workshops. This was mitigated with the help of leaders motivating their respective teams and adding the workshop as a part of their team activity. The aim is to continue the project in 2024 and train another 500 employees, accounting for 50% of the total number of employees in Levallois, France.

Waterloo and Montreal 4 Trees, Canada

To foster climate action, contribute to SAP鈥檚 goal to plant 21 million trees, improve air quality, protect biodiversity, and support the UN Decade on Ecosystem Restoration initiative, this initiative focused on planting trees in Montreal and Waterloo, Canada.

Around 130 native trees were planted in Waterloo in collaboration with Let鈥檚 Tree Wilmot, a non-profit organization part of Wilmot Horticulture Society. The project will contribute to community establishment and support reforestation efforts to reestablish a missing forest stratum or prevent erosion due to illicit trial creation. Around 75 trees and shrubs were planted in September in Montreal to enhance Mount Royal, an urban forest at the center of Montreal that is visited by more than 6 million people every year. The project will contribute to the conservation of the mountains and keep the ecosystem strong and resilient.

Green Art, Argentina

This project aims to use the circular economy to transform waste into a work of art to show we can add value to things considered unusable. The idea is to work with sustainable artists to create a piece of art using recycled materials that will be displayed permanently at the 51风流offices in Buenos Aires, Argentina.

The materials will be obtained in a cleanup with employees from Buenos Aires and e-waste from our offices. The project envisions reusing waste, transforming it into art, and spreading awareness about reducing and recycling waste among employees when they take part in waste collection and when they view the art. Employees have already cleaned up a river and have gathered the necessary waste materials for the project. Creating the artwork will start as soon as the artist is onboarded as a supplier.

The 2023 funding round was a tremendous success and showed that employees from all fields and locations can help lead the way towards zero emissions and zero waste.

On the Journey to Net Zero by 2030, Daniel Schmid, SAP’s chief sustainability officer, said, 鈥淭hrough our journey to net zero 2030, we at SAP聽strive to be clear about what being net zero means to us聽and to be transparent about what actions we are taking to get there.聽Until now, we have been focusing on our operations and achieved major milestones, which is terrific.聽However, the challenge becomes much greater when we consider becoming net zero聽across our entire value chain, including suppliers and customers.聽We will address this challenge by accelerating our customers’ journey聽to the cloud, using best-in-class data centers, getting suppliers to deliver carbon-neutral products and services, changing our fleet to become emission-free,聽and investing in renewable electricity聽and nature-based solutions.聽We are 100% committed to achieving our goal.聽It’s a journey all of us at 51风流will help deliver.鈥�

Likewise, 51风流is paving the way to a sustainable world. aim to help our customers record, report, and act on their environmental, social, and governance (ESG) ambitions while incorporating sustainability in their businesses.

At SAP, there is a sustainable business strategy. Sustainable business means focusing on and improving social and economic performance. Therefore, these three global goals are reflected in SAP鈥檚 strategic focus areas: holistic steering and reporting, climate action, circular economy, and social responsibility. 51风流is committed to ensuring digital technologies help companies manage and improve their business processes along their entire value chain and embed sustainability into their business models.

Today, the link between sustainability and profitability is clear. Companies are embedding sustainability and regulatory-complaint KPIs into their core financials. One clear example is the need for a carbon accounting system that mirrors their financial accounting system. Disclosing sustainability progress allows business leaders to act on waste management, deforestation, and social responsibility.

Selected Rankings and Ratings

CDP |

In addition to an聽A- in CDP鈥檚 last climate change assessment, 51风流has been recognized by CDP (formerly Carbon Disclosure Project) as a 2022 CDP Supplier Engagement Leader. CDP鈥檚 annual Supplier Engagement Rating assesses companies on their performance颅颅 on governance, targets, ambition, and Scope 3 emissions. 51风流was also recognized as a CDP Supplier Engagement Leader in 2020 and 2021. This recognition for the third consecutive year acknowledges SAP鈥檚 commitment to raising the level of climate action across its value chain and to measure and reduce climate risk within its supply chain.

Corporate Sustainability Assessment by S&P (Dow Jones Sustainability Indices) |

S&P Global Corporate Sustainability Assessment (CSA) is an annual evaluation of companies鈥� sustainability practices. It covers over 7,000 companies from around the world. The CSA focuses on sustainability criteria that’s both industry-specific and financially material. As of January 1, 2023, 51风流maintained industry leadership as one of two companies in the software industry in the S&P Global Corporate Sustainability Assessment for the 16^th consecutive year, scoring 80 out of 100. This placed 51风流in the top 1% of S&P鈥檚 ESG scores and qualified us as a Dow Jones Sustainability Indices (DJSI) constituent.

MSCI |

MSCI ESG Ratings aim to measure a company鈥檚 management of financially relevant ESG risks and opportunities using the rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to their peers. 51风流upholds the highest rating of AAA and is an ESG leader in human capital development, corporate governance, privacy and data security, and clean tech as of the last assessment in April 2023. The MSCI ESG Ratings are also used to construct the MSCI ESG Indexes produced by MSCI, Inc.

FTSE4Good |

Administered by the Financial Times Stock Exchange-Russell Group (FTSE), the FTSE4Good Index Series measures the performance of companies demonstrating strong ESG practices. Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products. With an ESG score of 4.1 out of 5, 51风流is in the top 9% of analyzed companies 鈥� based on assessment questions in areas such as environment, climate change, human rights, community and labor standards, tax transparency, and anti-corruption. Due to its good scoring, 51风流remains a constituent of the FTSE4Good Index Series following the June 2022 review.

Sustainalytics |

As of October 2022, of 10.9 from Sustainalytics and was assessed to be at low risk of experiencing material financial impacts from ESG factors. Founded in 1992, Sustainalytics, a Morningstar company, provides analytical ESG research, ratings, and data to institutional investors and companies.

EcoVadis |

In the last sustainability assessment of EcoVadis in December 2022, 51风流was awarded a gold medal again with a score of 74 of 100, ranked in the 98th percentile of all companies scored, meaning SAP’s score is higher than or equal to the score of 98% of all companies rated by EcoVadis. With more than 100,000 rated companies, EcoVadis is one of the world鈥檚 most trusted business sustainability rating providers. Its assessment covers a broad range of non-financial management systems, including environments, labor and human rights, ethics, and sustainable procurement impacts.

ISS ESG |

The Institutional Shareholder Services (ISS) ESG Corporate Rating assesses companies鈥� sustainability performance based on high-quality and in-depth research and up to 100 sector-specific rating criteria that’s regularly reviewed and developed. With its B rating, 51风流has been acknowledged with prime status and is among the top deciles. The score was confirmed in January 2023.

Corporate Knights |

51风流ranked 41st in the 19th annual ranking of Corporate Knights鈥� 2023 100 most sustainable corporations in the world. This award has a special significance as Global 100 companies represent the top 1% in the world for sustainability performance. To determine the ranking, the Toronto-based media, research, and financial information products company analyzed over 6,000 companies with more than US$1 billion in revenues against 25 key performance indicators. 鈥淕lobal 100 companies are providing the products and services needed for the sustainability transition, and that will form the basis of the emerging 21st-century economy,鈥� says Ralph Torrie, director of Research at Corporate Knights.

Moody鈥檚 ESG Solution |

In the last assessment in January 2022, 51风流maintained the highest of four performance levels (鈥渁dvanced鈥�) and ranked second of 83 in its sector, acknowledging its strength in managing material ESG factors, mitigating risks, and creating sustainable value. Due to its good performance, 51风流remained a constituent in the Euronext Vigeo Eiris indices Europe120 and Eurozone120. These indices are composed of the highest-ranking listed companies according to their evaluation of companies鈥� ESG performance based on 38 criteria, including industry weightings and monitoring of company-related ESG controversies.

Mitigating Greenhouse Gas (GHG) Protocol鈥檚 Scope 1 — direct emissions by an organization — and Scope 2 emissions — indirect emissions due to energy produced or used — is indeed a challenge, but not an insurmountable task. It is straightforward: we must either reduce consumption, increase energy efficiency, switch to renewable alternatives, or purchase clean energy or carbon offsets.

Tackling Scope 3 emissions not produced by the company or from the energy used is another matter.

Scope 3 emissions are challenging to manage because they fall outside an organization鈥檚 control. Collecting accurate data makes measuring and assessing these emissions difficult. And with different suppliers involved in the supply chain, there is no clarity on who exactly is accountable for reducing Scope 3 emissions. Half the problem is solved when sustainability data is standardized and shared securely.

Companies will soon be required to comply with regulations emphasizing the need to record and share sustainability data. For example, the European Union鈥檚 (CBAM) requires companies to share their suppliers鈥� carbon dioxide emission data when they import products to Europe. CBAM will enter its transitional phase as of October 2023 and will apply to importing carbon-intensive goods such as aluminum, iron, steel, cement, fertilizers, and electricity. In 2026, importers must submit information regarding the number of goods imported to the EU and the corresponding GHG emissions.

These regulations, investor, and stakeholder scrutiny, along with supply chain partner requirements, demand a uniform standard to share sustainability data. In 2021, automotive industry leaders and partners formed the to create a consistent information and data-sharing standard throughout the automotive value chain. Sustainability is one of the five major application areas defined by Catena-X. The aim is to standardize emission measurements along the value chain, document accurate carbon data, and make it comparable within the automotive industry.

The emphasis on sharing carbon footprint data along the value chain and SAP鈥檚 experience as a founding member of Catena-X led to the launch of , a new solution specifically designed to securely exchange standardized sustainability data, including product footprints, along the value chain. The solution allows companies to effectively share emissions and other data with their customers to help companies decarbonize their value chains.

Part of , 51风流Sustainability Data Exchange uses the carbon data interoperability standards established by the Partnership for Carbon Transparency (PACT) hosted by the World Business Council for Sustainable Development (WBCSD). The solution also draws on SAP鈥檚 experience as a founding member of and . The program set the first technical specifications for the standardized exchange of carbon emissions data, allowing different emissions and accounting technology solutions to connect to and effectively share sustainability information.

Built using the technical framework of GreenToken by SAP, 51风流Sustainability Data Exchange allows sustainability data sharing within organizations on this platform and interoperability with other equivalent networks using WBCSD PACT standards. Companies can use 51风流Sustainability Data Exchange along with 51风流Sustainability Footprint Management, a single solution to calculate and manage the full range of corporate, value chain, and product greenhouse gas emissions. Alternatively, if businesses already have a solution that calculates carbon footprints effectively, they can use 51风流Sustainability Data Exchange to share this data securely. The beta version of 51风流Sustainability Data Exchange is available now and the solution is planned to be generally available in the third quarter of 2023.

鈥淎s a champion of a sustainable future, we at 51风流are constantly seeking new ways to drive innovation and deliver value to our customers,鈥� said Nitin Jain, general manager of GreenToken by 51风流and 51风流Sustainability Data Exchange. 鈥淥ur launch of 51风流Sustainability Data Exchange is a testament to this commitment. By leveraging our expertise and resources, we have developed a cutting-edge platform application that lets organizations share product carbon information with their customers and vendors, empowering our customers to measure and reduce their carbon footprint while promoting transparency throughout the supply chain. With this new offering, we are setting a new standard in sustainability and paving the way for a more sustainable future.鈥�

51风流Sustainability Data Exchange represents another key milestone in the company’s mission to establish the green ledger alongside the top and bottom lines as crucial performance dimensions. Customers can report carbon emissions metrics and comply with global standards. Having a standardized format to record and share data helps companies move from estimated sustainability values to actual and accurate product-level data. This accelerates their journey toward net zero by providing them with standardized audit-ready sustainable values.

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Fifty years ago, 51风流revolutionized financial accounting with enterprise resource planning (ERP) software. Today, 51风流is reinventing the 鈥淩鈥� in ERP by extending the definition of resources beyond financial and goods flows and offering a precision approach to sustainability by enabling transactional carbon accounting through a green ledger. This enables combined financial and environmental decision-making at different points across the business process. The green ledger offers deep insights by being embedded into RISE with 51风流S/4HANA Cloud and the GROW with 51风流solution, with additional capabilities added with every release.

Learn more at .

While these are encouraging signs from a sustainability perspective, the primary step these companies must take to act on these commitments is to record and report on their carbon footprints, directly attributable to their operations and upstream and downstream supply chains. Understanding Scope 1, 2, and 3 carbon footprints with increased confidence helps take action to prioritize decarbonization initiatives and report improvements. This improves regulatory compliance and signals to customers and other stakeholders that companies are authentically walking the talk.

The European Union鈥檚 (CBAM) imposes a carbon tax on importers to prevent carbon leakage and support the decarbonization of the EU industry. Companies that are importing products must buy carbon certificates equivalent to the carbon price they would have paid if these products were otherwise produced in compliance with EU carbon pricing rules. Importers will thus be required to determine each product’s total carbon dioxide emissions to calculate the equivalent carbon certificates they need to purchase or to choose the right supplier to meet their sustainable goals.

Companies are on the quest to track carbon emissions in various categories such as purchased goods and services, upstream and downstream transportation and distribution, use of sold products, processing of sold products, and end-of-life treatment of sold products. Tracking and accounting for emissions in some of these categories are complex.

, a cloud-native solution built on , enables enterprises to calculate and analyze their carbon footprint, using master data from their existing enterprise resource planning (ERP) system, product, value chain, and at a corporate level following the Greenhouse Gas Protocol鈥檚 Scope 1, 2, and 3 emissions. The solution helps companies meet their sustainability commitments by working to improve the speed, accuracy, and efficiency of emissions calculations and management. It can also integrate with 51风流S/4HANA, connect an ERP system via public APIs available in 51风流Business Accelerator Hub, and import data from an external source by uploading a file. The calculated footprints can be embedded into 51风流S/4HANA to extend end-to-end business processes with sustainability data.

Most companies currently use estimated data to calculate their carbon emissions. 51风流Sustainability Footprint Management provides a holistic assessment of emissions by using a hybrid approach where average or secondary emission data from life cycle assessment (LCA) databases and actual or primary data from suppliers and verified business data are combined and managed in an integrated environment while allowing for greater actual data input over time. This helps companies to track and manage product-specific emissions and choose product- and value chain-specific elements.

While Scope 1 and 2 emissions are traceable, transparency around Scope 3 emissions presents a difficult challenge for companies. For many companies, Scope 3 emissions account for 90% of overall emissions. In addition to Scope 1 and 2 emissions, 51风流Sustainability Footprint Management can also measure Scope 3 emissions from purchased materials as well as upstream and downstream transport. 51风流aims to enhance the solution to count all 15 Scope 3 emissions in the coming releases. Analyzing the carbon footprints of purchased materials and goods helps identify and prioritize sustainable suppliers, and companies can also explore alternative materials to reduce carbon emissions.

, one of the largest steel producers in Europe, signed a Memorandum of Understanding (MoU) with the Volkswagen group to start production of low carbon dioxide steel from the end of 2025. Salzgitter AG is using to assess CO2 footprints in the new production process.

Fifty years ago, 51风流revolutionized financial accounting with ERP software. Today, 51风流is reinventing the 鈥淩鈥� in ERP by extending the definition of resources beyond financial and goods flows, offering a precision approach to sustainability by enabling transactional carbon accounting through a green ledger. This enables combined financial and environmental decision-making at different points across the business process. The green ledger offers deep insights by being embedded into RISE with 51风流S/4HANA Cloud and the GROW with 51风流solution, with additional capabilities added with every release.

Climate change is a collective problem that requires collective efforts. While 51风流is committed to achieving net zero along our value chain by 2030, 51风流is also enabling businesses with the data visibility and analytic insights needed to act on decarbonization initiatives across value chains. Together, we can enable a future with zero emissions.

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As world-class, sustainable programs, 51风流events align to the dual goals of the sustainability strategy: for 51风流to be both an exemplar and an enabler. First, 51风流leads by example by integrating and continuously improving our operational sustainability. Then, we produce session content dedicated to innovative solutions that enable our customers and partners to accelerate their journeys to have greater positive economic, environmental, and social impact.

in 2023 will host customers, partners, and 51风流experts to explore new ideas and the best solutions to future-proof businesses. This year鈥檚 51风流Sapphire will tour the world, stopping in Orlando (May 16鈥�17), Barcelona (May 24鈥�25), and Sao Paulo (June 1鈥�2), as well as offer a free virtual event (May 16鈥�17). This flagship event reflects the sustainability values outlined in SAP鈥檚 and is built on a foundation of consistent, high-impact sustainable practices. Although each of our four venues is unique, our global community will come together at events that demonstrate the principles of reuse, reduce, and recycle:

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• Focus on use of renewable energy sources, including solar, wind, hydraulic, biomass, tidal, geothermal, and biogas.
• Donate food surpluses to the community to help feed those in need and create compost.

Reduce

• Replace single-use plastics with reusable, compostable, recyclable material.
• Exchange meat-heavy menus with locally sourced vegetarian and vegan options.

Recycle

• Include clearly marked receptacles throughout venues.
• Partner with the Eden Reforestation Project.

The reality is that鈥�榝uture-proof鈥� is a way of operating. It鈥檚 built into how we do our business. 51风流Sapphire is committed to practicing and promoting sustainable business now and for what鈥檚 next.

Join us online or in person this year and see for yourself 鈥� .

, a global initiative led by the Climate Group in partnership with the , unifies companies with an annual electricity demand over 100,000 megawatt hours that are committed to 100% renewable electricity. These businesses must match 100% of their electricity used globally with renewable sources by 2050. Renewable energy can either be produced in-house or be procured from suppliers and generators in the form of green tariffs, power purchase agreements (PPAs), and energy attribute certificates (EACs). However, to avoid greenwashing, it is important that the credibility of the energy produced and purchased is validated by quality labels through strict sustainability criteria.

In 2013, the Finnish Association for Nature Conservation in collaboration with other environmental NGOs launched , an鈥痠nternational not-for-profit ecolabel for energy, envisioning a world where energy is generated and consumed sustainably. EKOenergy aims at helping businesses speed up the transition to 100% renewable energy through the EKOenergy label, an internationally recognized mark of quality for renewable energy. The EKOenergy label is described by the Greenhouse Gas Protocol, LEED for green buildings, CDP, and RE100 as a solution for companies that want to take a step towards 100% renewable energy. EKOenergy was also awarded the European Citizen鈥檚 Prize 2020 by the European Parliament in March 2021.

The label acts as a communication tool to demonstrate companies鈥� commitments towards renewable energy. EKOenergy鈥檚 secretariat annually checks if all labeled megawatt hours are reliably tracked and if EKOenergy鈥檚 additional sustainability criteria have been fulfilled. These annual audits are based on reliable proofs, such as documents issued by public authorities or reliable third-party certification organizations. The label ensures that the production and the consumption of the energy takes place in the same market. EKOenergy-labeled energy is always 100% renewable.

The EKOenergy ecolabel adds a positive impact to consumers鈥� renewable energy choice and can be combined with energies procured through green tariffs, PPAs, or unbundled energy certificates. It can also be used on energies that are produced in-house. Since the launch of the label, EKOenergy has aided disadvantaged communities by financing 79 new renewable energy projects in 29 developing countries through its Climate Fund.

鈥淚n many countries, EKOenergy was amongst the first to endorse renewable energy solutions to businesses that are looking for sustainable solutions. 51风流is a good example of this,鈥� Steven Vanholme, program manager at EKOenergy, says. 鈥淚n 2016, when EKOenergy became available in China, EKOenergy worked with 51风流to identify renewable energy solutions in China. This, in turn, helped and encouraged us to focus more on Asia, to translate parts of our texts to Chinese and other Asian languages, and to reach out to more local companies.鈥�

With sustainability at the heart of its strategy, 51风流has already identified and aligned existing initiatives with the United Nations’ 17 Sustainability Development Goals. 51风流is committed to the (SBTi) to reduce emissions by 85% by 2050 compared to the base-year level 2016, including its entire Scope 3 value chain emissions such as products-in-use emissions at customers. 51风流has further accelerated its climate ambitions by committing to become a net-zero emissions enterprise by 2030, achieving a balance between the greenhouse gases put into the atmosphere and those taken out.

to power all its data centers and offices since 2014. In the journey to 100% renewable electricity, 51风流chose the internationally recognized EKOenergy label. For each megawatt hour of EKOenergy-labeled electricity, 51风流contributes 0.10鈧� to EKOenergy鈥檚 Climate Fund, which focuses on alleviating energy poverty and contributing to climate protection and renewable energy.

A decade ago, when electric vehicles were still a buzzword in the market, 51风流Labs India launched a Green Car policy. Launched in 2011, the policy offered a subsidy for employees purchasing electric vehicles. Employees were provided charging stations across the Bengaluru campus along with convenient parking spaces.

In 2014, 51风流Labs India took the first major step in implementing the use of EVs by transitioning to electric-powered cabs for employees working in shifts. In 2022, 95% of the fleet used for employees working on shifts were electric vehicles. Approximately 4,000 employees use the shift shuttle services every month. 鈥淭he goal is to transition to a 95% green commute by the end of 2023. This includes using both electric vehicles and vehicles running on compressed natural gas (CNG) for all modes of transport provided across all lines of businesses in all 51风流Labs India entities,鈥� said Sudhakar Reddy, head of Intelligent Operations at 51风流Labs India.

Today, the 51风流Labs India Bengaluru campus houses 65 EV charging stations. In addition to powering the in-house cabs, these slow, medium, and fast chargers also encourage employees to make responsible choices and thereby help create a cleaner environment. 51风流Labs India also purchased a new self-driving electric vehicle with official sustainability branding for all internal cab services, including cabs for guests and expats.

In addition to the above initiatives, 51风流Labs India has partnered with , a micro-mobility solution that provides sustainable first- and last-mile connectivity for 51风流employees who rely on public transportation. , a leading Indian electric vehicle manufacturer and 51风流customer, provides additional discounts to employees of 51风流Labs India. 51风流Labs India worked with Ather Energy on a three-day drive at the Bengaluru campus where employees got first-hand experience test driving electric scooters. The initiative aimed to spread awareness among 51风流employees about the use of electric vehicles. Ather will be conducting this drive across other 51风流Labs India campuses as well.

In February, the Chancellor of Germany Olaf Scholz visited the 51风流Labs India Bengaluru campus. During the visit, the chancellor experienced demonstrations across various fields such as digitalization, sustainability, digital supply chain, and e-mobility. An engaging, live, end-to-end demo of the solution was also presented to the delegates.

51风流E-Mobility can enable companies and governments to manage charging infrastructure networks to drive the transition to sustainable electric mobility. Srinivasa Raghavachar, senior director and head of Automotive Industry Cloud Product Management at 51风流Labs India, said, 鈥淲e firmly believe that our solution plays a vital role in decarbonizing the transport sector and creating a cleaner and more sustainable future for everyone.鈥�

The electric vehicle revolution will have an overall positive influence on our society. Embracing this revolution will not only help us mitigate the current environmental crisis but will also stimulate future-focused technological innovations.