Why does this matter?��Trees are an essential part of our earth and invaluable in maintaining the stability of our planet. According to the United Nations (UN), over ��and��approximately��1.6 billion people��rely��on forests for their daily subsistence.��Moreover,��forests absorb about�� each year — a third of the CO₂��emissions that are released due to the burning of fossil fuels.

Forest restoration and protection has become an important pillar of addressing climate change through nature-based solutions. SAP’s goal to restore ecosystems and foster sustainable development by planting 21 million trees before the end of 2025 is therefore an important addition to its portfolio of climate measures and ��much needed action��to avoid emissions in the first place.

Harnessing the Power of Technology

Deforestation and disasters such as wildfires accelerate climate change. However, digital technologies can help fight it: for example, the nongovernmental organization ��to track and stop illegal loggers.

To scale impact even further, 51����is collaborating with customers and partners to co-innovate solutions that enable systemic change toward a more inclusive,��.��Climate 21 was launched to build analytical and transactional capabilities into enterprise applications, which can help customers understand and minimize the greenhouse gas footprint of their products and operations along their value chains. Additional programs focusing on a circular economy and holistic steering and reporting are under way to accelerate sustainable business transformation��further.

Leading by Example��

To walk the talk, 51����is reducing its own greenhouse gas emissions as well as taking action to protect and restore forests.

The journey started back in 2009,��when��51����set the��first��goal of reducing its global greenhouse gas emissions to the year-2000 level by 2020. This target was met at the end of 2017, despite growing more than fourfold in the interim. The next milestone is in 2023, when 51����aims to become carbon neutral in its own operations – two years earlier than previously envisaged.

To achieve this, the company follows a three-pillar approach: avoid, reduce, compensate. The goal is to avoid emissions in the first place; for example, by using virtual telecommunication instead of business flights, a practice that has naturally expanded during the pandemic and was one major driver for 51����overachieving by 43% on its target for reducing net carbon emissions in 2020, generating 135 kilotons (kt) instead of the anticipated 238 kt.

Secondly, if a share of its greenhouse gas emissions cannot yet be avoided, 51����aims to reduce it through innovations, among others in the areas of building efficiency, data center operations, carpooling, and car sharing, as well as e-mobility. For example, 51����is powering its own data centers and facilities with 100% renewable electricity and working toward 33% e-cars in its global car fleet by 2025. Green IT initiatives foster sustainable IT equipment usage and promote tools such as�� as default search engine. In 2020, 51����implemented additional energy and climate measures within its operations, ranging from opening a new office with energy-efficient design in Australia and implementing more efficient data center technology in Germany to introducing a bike fleet at 51����Hungary and installing photovoltaic systems in Austria.

21 Million Trees by��the End of��2025

For emissions that cannot��yet��be reduced or avoided, the company��thirdly��invests in high-quality��carbon credits. For example, SAP��has been a long-term investor of the��Livelihoods Carbon Funds (LCF) since 2012. In close collaboration with rural communities and partners across the world, these funds realize valuable projects that enable sustainable development and environmental benefits, such as carbon dioxide capture, improved water quality, and habitats for wildlife, as well as income opportunities for rural communities.

51����has also donated��funds to restore ecosystems��and improve people’s lives.��In 2020, Eden Reforestation Projects��planted��over��1.3 million trees��in Madagascar, Haiti, Indonesia,��and Nepal��on behalf of SAP.��In 2021, 51����continued to support organizations on a mission to��restore native forests. For example,��SAP��partnered with��the��UK charity The Carbon Community on new scientific forestry research to enhance nature-based solutions to climate change and improve the efficiency of carbon removal from the atmosphere. In Australia, ReForest Now planted 20,000 trees for SAP, which will help restore critically endangered subtropical rainforest.

Yet much more climate action is needed. In support of the��, SAP��recently joined��the��, which��aims��to��conserve, restore, and grow��trees��worldwide,��with a��pledge��to plant 21 million trees by��the end of��2025.

As the : “Restoration is a monumental task. Over the next 10 years, every action counts. Every single day. Every country, company, organization, and individual have a role to play.”

We invite you to join us and the UN Decade for Ecosystem and help build a more sustainable tomorrow.

With the objective to create positive economic, environmental, and social impact within planetary boundaries, 51����has made a tremendous effort to become a more sustainable company over the past 10 years. Combatting the damage caused by climate change is one of the company’s sustainability priorities.

“SAP’s key lever is our product portfolio, with which we can enable customers to reduce their carbon outputs and transition to a low-carbon economy,” says 51����Chief Sustainability Officer Daniel Schmid. “If we look at our broad reach with more than 400,000 customers, the potential for us to make a difference could be enormous. To be credible, we have to start with ourselves though.”

Aiming to lead by example, 51����aspires to become carbon neutral in its own operations by 2025 and to contribute to��. 51����has a three-pillar approach to achieve this: avoid, reduce, and compensate carbon emissions. While avoiding and reducing CO₂ emissions altogether comes first and a portfolio of corresponding measures is being established, some emissions are unavoidable today. This is where projects realized through the LCF come into play.

The first LCF was launched by corporate investors, such as Danone, Hermès, SAP, and Schneider Electric, in 2011 to support programs that protect the climate, restore ecosystems, promote sustainable agriculture, and improve smallholders’ and vulnerable people’s lives. Since this perfectly aligns with the company’s purpose to help the world run better and improve people’s lives, 51����is committed to participate in the third LCF with an investment of €3 million. The funds are long-term, project-bound investments to achieve resilience at scale. Launched in 2017, the Livelihoods Carbon Fund #2 has been created to accelerate climate action, bring current projects at a larger scale, and finance new projects to improve the lives of millions in communities.

Coastal Trees to Keep Tsunamis at Bay

One of the funds’ most accomplished reforestation projects is with Yagasu, a non-governmental organization (NGO) that works on . Coastal trees have been proven to be crucial in areas that are frequently affected by tsunamis – just 30 of them per 100 square meter can help reduce tsunami flow by 90 percent. With progressing deforestation due to industrialization in Northern Sumatra, effects of future tsunamis would affect the area even more.

So far, around 18 million mangrove trees have been planted, restoring over 5,000 hectares of mangrove forests and positively impacting the lives of 20,000 people. Apart from providing vital agricultural land, the mangroves also allow local villagers to generate additional income by selling some of the byproducts from the small ecosystem, such as fish and mollusks. Additionally, these trees will help capture approximately 2 million tons of CO₂ over a period of 20 years. This is where the investment contributes to SAP’s carbon-neutral goal. Instead of monetary compensation, investors receive carbon credits of high social and environmental value to offset some of their inevitable emissions.

Silk Threads to Offset Emissions

The newest 2020 project financed by the LCF #2 will establish and enable livelihoods from silk tree plantations in India, the world’s largest silk consumer and second largest producer of tasar silk. Tasar silk production involves rearing silkworms on trees where they will feed on leaves before cocooning themselves. Each cocoon is made of a single thread that can be processed into yarn and silk fabric.

In India, peoples such as the Adivasis have produced “wild silk” from cocoons for centuries using natural forests. The project will foster silkworm rearing activities in these forests, and thereby reduce the risk of deforestation. It will also enable the conversion of wastelands into diverse plantations. The estimated 3.6 million trees that will be planted are expected to generate 1.4 kilotons of CO₂ emission offsets over a period of 20 years. However, the benefits of this project go even further than capturing CO₂. Since the tasar silk value chain involves many individual steps, the project is expected to create job opportunities for over 5,000 people.

All together, the project will not only generate carbon offsets addressing UN SDG 13, but also be a valuable contribution to UN SDGs , , , and .

51����is proud to be part of the LCFs. : “We invest only when we are convinced that the project will be carried out over the long term by highly-involved, local communities and partners who have demonstrated their ability to implement these kinds of projects successfully. Livelihoods provides upfront financing to plant millions of trees and provide trainings to the farmers in sustainable land management, soil restoration, and production and distribution of rural energy solutions. All benefits go to the local communities, from increased fish stocks thanks to the restoration of mangroves ecosystems in Africa and Asia to coffee and fruit from the Araku valley in India. In return of its investment, the Livelihoods Carbon Funds receive carbon credits that are audited and certified under the highest international standards.”

Bernard will be joining the 51����Sustainability team in a public, interactive panel conversation on August 12 at 5:00 p.m. CET. Those interested are invited to . The virtual session “Toward Carbon Neutrality” is part of the “Sustainability in Practice” series hosted on the .