The world has been waiting for a global plastics treaty since 2022, when representatives from 175 nations agreed on a mandate to create a legally binding instrument to end plastic pollution. While progress has been made during the five rounds of negotiations to date, a final treaty has yet to be agreed. With negotiations set to continue, 51风流has collaborated with to launch the 鈥淪hift into Gear鈥� report, inciting companies not to wait but to start preparing now to meet global plastics legislation.

It’s not just a reporting duty

Plastics regulation isn鈥檛 new. It has rapidly spread across the globe like a rising tide, driven by the urgency to reduce our dependence on fossil fuels and curb the plastic waste that is choking both marine and land-based ecosystems. Companies now face the growing tide of extended producer responsibility (EPR) regulations and pay plastic taxes in certain jurisdictions. Globally, the corporate liabilities linked to plastic usage are projected to exceed US$20 billion by 2030.

In this shifting landscape, 51风流and Earth Action argue that plastic and data management are no longer reporting duties only, but fundamental business imperatives. Companies that fail to navigate these waters may find themselves sinking under the weight of financial liabilities, whereas those that prepare, comply with regulations, and leverage digital solutions will ride the wave, standing to gain a competitive advantage.

Disparate EPR regulations make compliance onerous and expensive

Originally designed to fund waste management, EPR regulations are now focused on the eco-design and recyclability of items. Complications for corporations arise from the variety of different EPR regulations across different territories. The report describes how one consumer goods company operating in over 180 countries can face a minefield of 30 to 50 different EPR policies, which could cost in the region of 0.5%-1% of final product revenue. For multinational corporations, this can add up to millions of euros of risk鈥攐r opportunity.

Avoidance isn鈥檛 a viable option. Non-compliance comes with significant financial risks including fines, litigation, and potential clean-up costs. Reputational risk linked to consumer protection violations, false advertising, and environmental damage is also a factor that could result in revenue loss and a decline in investor confidence.

51风流joins forces to lobby for standardization

51风流is working with the World Business Council for Sustainable Development (WBCSD) and the Ellen MacArthur Foundation, calling for industry alignment on packaging data. Together, we are pioneering a project to enable standardized data to be exchanged throughout supply chains. This can allow businesses to access and analyze materials from a variety of suppliers to empower the design of more sustainable and recyclable packaging, which can minimize waste and reduce EPR fees and plastic taxes.

Negotiations to finalize the global plastics treaty are expected to resume with delegates due to convene for INC 5.2 in 2025.

Companies should not delay

The report is clear. Companies must not wait for a finalized treaty before taking action. With a myriad of national and regional regulations already in existence, including the EU鈥檚 Packaging and Packaging Waste Regulation (PPWR) and the Corporate Sustainability Reporting Directive (CSRD), there is already work to do. Delaying compliance may leave companies lagging behind and unable to meet existing and upcoming regulations, leading to the financial and reputational risks already mentioned. Under the PPWR, for example, the penalties for non-compliance are not just theoretical鈥攖hey are a looming reality. Each EU member state can impose sanctions that are effective, proportionate, and dissuasive, ranging from hefty fines to sales bans or mandatory product recalls because of non-compliant packaging. In other words, the clock is ticking and the consequences of inaction could hit harder than anticipated.

Early adopters stand to benefit from their experience and will be better prepared for the shifting regulatory field when the treaty enters into force. By proactively implementing robust data management solutions and streamlining their reporting processes, they can start to make gains in terms of circularity and sustainability. In doing so, they will obtain an unprecedented view of their plastic material flows, allowing them to unlock efficiencies and reduce risk.

Data management is critical

Contrary to an often referred to argument put forward by treaty detractors, the data organizations require for compliance does exist and can be found within existing enterprise systems. Companies should look to their enterprise resource planning (ERP) systems and financial reporting platforms. These are treasure troves, filled with procurement records, supplier data, and waste management information鈥攌ey assets for reporting purposes.

Businesses should also coordinate with their suppliers and customers with a view to data sharing for resource optimization and to scale efficiencies.

Data management systems like help companies collect and use data by aggregating it from third-party systems. It can not only allow sustainability managers to accurately calculate fees and taxes but can give them a lifecycle view of indirect taxation costs and, by considering downstream recyclability and recycled content, the environmental impact of design choices. The solution can also allow users to experiment with switching materials, products, and altering supply chains, providing them with the information they need for agile decision-making.

Prepare for an ambitious treaty

Corporations must invest in their enterprise systems to leverage data and collaborate with their supply chain to meet upcoming legislation and avoid risks and penalties of non-compliance. The sooner they start, the better their competitive advantage. By utilizing data management systems to collect robust data and collaborate with supply chains, they will be equipped to thrive in the era of plastic regulation, limiting their costs, achieving sustainability targets, and complying with evolving regulations.

Darren West is global head of Circular Economy Solutions at SAP.

The energy transition is creating a profound shift across industries and global economies. Amplified by technological innovation and intense competition, it is reshaping sectors and shifting economies toward renewable energy. This change is not only an environmental necessity but also a catalyst for economic growth, challenging the traditional dominance of fossil fuels. With capital investments increasingly directed toward renewable energy infrastructure, investors are aligning their priorities with sustainability, signaling that profitability and environmental stewardship can coexist. Yet, the ongoing prominence of oil and gas underlines the complexity and scale of this transition. 

In parallel, the circular economy is gaining momentum as businesses address the dual challenges of material scarcity and carbon reduction. At COP29, there was significant discussion about how a circular approach focused on rethinking supply chains, redesigning products, and optimizing resources could reduce dependency on finite materials while driving sustainable economic growth. By adopting circular economy principles, businesses can minimize waste and keep valuable materials in circulation, contributing to a more resilient and sustainable future. 

The Role of Business in Transforming Climate Commitments into Tangible Outcomes 

One of the central discussions at COP29 was the need for harmonizing global standards for carbon reduction and accounting. Foreign policy players, along with the private sector, stressed the importance of mobilizing finance for sustainable capitalism. In particular, there was a call for clearer and standardized reporting frameworks to simplify the process and ensure transparency. One critical area was the importance of accurate data collection for carbon markets and product-level carbon accounting, which can help businesses engage consumers and reduce emissions. 

There are three ways technology plays a pivotal role in addressing some of these challenges: 

• is available in every organization鈥檚 ERP system, so it鈥檚 time to start automating data collection and reporting processes to ease some of the regulatory burden.
• Companies should leverage IT spending to support sustainability initiatives, specifically to optimize climate solutions and create circular products.
• Companies must shift focus on the to pinpoint areas with the most significant impact.

From Policy to Practice: How Technology and Global Standards Can Accelerate Climate Action 

Empowered by technology and guided by clear policies, businesses have a unique opportunity to bridge the gap between high-level climate commitments and actionable, on-the-ground strategies. 

Central to this is aligning sustainability and financial priorities. Effective demands collaboration between chief sustainability officers and chief financial officers, as climate change has evolved from an ethical and environmental issue to a pressing financial imperative. 

To accelerate progress, we need globally harmonized policies, rigorous carbon accounting frameworks, and advanced technology solutions. By embedding AI-driven innovation, robust reporting standards, and actionable insights into business operations, we can ensure that COP events, such as COP29 in Baku, are remembered as turning points 鈥� not just discussions. While the challenges ahead are formidable, the opportunities for transformative action are even greater 鈥� and is here to lead the way on a low-carbon, future. 

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Sophia Mendelsohn is chief sustainability and commercial officer at SAP.

The partnership has continued to this day with a mission to make great wines and spirits that bring people together. Now, the company has over 2,000 hectares of vines under cultivation in 12 wine-growing regions of Spain, Chile, and Mexico, where the producer deploys sustainable agricultural techniques to bring indigenous vines back into production.

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Running a Responsible Business

鈥淔or us, everything revolves around sustainability,鈥� said Elisabet Braza Valle, head of 51风流Supply Chain and Finance at Gonz谩lez Byass, during an interview at 51风流Sapphire Barcelona. 鈥淥ur goal is to be a reference in the wine sector and also in the field of sustainability, and we鈥檙e using technology to do that.鈥�

Valle explained that digitalization is helping to drive efficiency by improving processes and that people are already noticing a more expeditious service. 鈥淎ll the processes are connected,鈥� she said. 鈥淐lients notice that we are preparing their packages and managing their invoices faster than before. That鈥檚 because, thanks to SAP, we have all the data in the same place.鈥�

In addition to its core 51风流ERP system, Gonz谩lez Byass recently implemented , a solution that helps enterprises calculate extended producer responsibility (EPR) obligations and define corporate commitments to optimize material choices. It鈥檚 also designed to help address all the requirements of the new plastic taxes in Europe.

To help promote a more circular economy, for example, Spanish law mandates an indirect tax levied on plastic in packaging. Calculating the taxable amount is particularly complex and burdensome. Companies must know how much non-recycled plastic is in the non-reusable plastic packaging contained in the shipments they receive. This information should be furnished by the suppliers that now find themselves in a challenging situation as they did not have to comply with this type of requirement before. Collected data must be reliable and verifiable to ensure accuracy when sharing with customers or if it should be questioned by the Spanish tax authorities.

鈥淪AP鈥檚 solution not only helps us comply with the law, but it also helps us manage our materials more efficiently,鈥� said Valle, who believes one of the greatest assets of the solution is the visibility it provides into the company鈥檚 supplier landscape. 鈥淲e are encouraging all of our suppliers to commit to being more sustainable, and we assess them every year. We also work together to improve our environmental behavior.鈥�

Valle cited several examples of collaborative engagement, such as reducing the weight of glass bottles and using recyclable packaging materials. The company has already substituted some materials with more sustainable alternatives and is buying cardboard boxes and wood sourced from certified forests.

鈥淲e have all the information about our materials in 51风流Responsible Design and Production, so we can see how much plastic we are using and how much of it is recycled. That determines the amount of tax we pay,鈥� Valle explained. 

All these improvements are part of the company鈥檚 People and Planet program that is designed to ensure a nature-friendly, energy-efficient foundation for future generations. The efforts are paying off.

Simplifying a Complex Landscape

According to its sustainability report for 2022, Gonz谩lez Byass already reuses or recycles 99% of the waste it generates and 79% of the energy it consumes comes from renewable sources. Water conservation efforts include using rainwater for irrigation, underground irrigation, and satellite-controlled irrigation.

Gonz谩lez Byass has already reduced carbon emissions by 20% and is committed to a 55% reduction by 2030. Besides managing its own regulatory obligations in Spain, the company must also be compliant with other regulations in the EU and the UK that impact its business. For example, recycling glass packaging waste is mandatory in all EU Member States. In Spain, this process is driven by Ecovidrio, a non-profit entity managing the Collective System of Extended Producer Responsibility (SCRAP).

鈥淥ne of our next projects is to set up Ecovidrio in the 51风流Responsible Design and Production solution, where we manage all our tax declarations and reports,鈥� Valle said. 鈥淎nother critical report is the declaration for the Ministry of Ecological Transition. Technology is helping us become a global reference in the sector because now we鈥檝e integrated all relevant information needed for compliance.鈥�

Four of its wineries have received the Wineries for Climate Protection certification, the first of such credentials specific to the wine industry targeting environmental sustainability. The certification recognizes sustainability activities in wineries in four key areas: reducing greenhouse gas emissions, managing water, reducing waste, and increasing energy efficiency.

Valle is confident that with the aid of technology Gonz谩lez Byass will not only be a leader and a reference in the sector, but, most importantly, it will secure its place as an exceptional winemaker for posterity. After all, since its most iconic wine , it鈥檚 a good thing Gonz谩lez Byass is doing everything to continue producing the best wines and spirits for future connoisseurs. 

Companies that prioritize sustainability in their operations, such as using recycled materials, reducing carbon emissions, or supporting social causes, are gaining popularity among consumers. But those consumers demand proof of these values and product promises at the point of sale.

鈥淭he rise of sustainability isn’t just a movement; it is a shift in consumer consciousness,鈥� said Dania Fayyaz, 51风流North America sustainability program manager. 鈥淭oday’s consumers are redefining their purchasing patterns, opting for products and brands that align with their values, and driving a demand for eco-conscious practices and ethical sourcing.鈥� In her conversations with retailers that visited SAP鈥檚 booth at NRF 2024, the world鈥檚 largest retail fair, she saw a high interest in sustainability solutions.

Consumers 鈥� and Markets 鈥� Demand Visibility

When the EU Deforestation Regulation (EUDR) comes into effect for large enterprises later this year all products sold in the EU containing palm oil, cocoa, soy, rubber, cattle/leather, coffee, wood, and their derivatives will need proof that their harvest didn鈥檛 contribute to deforestation. Non-compliance will result in potential fines of up to 4% of companies鈥� EU annual turnover. To help businesses simplify this complex task, the 51风流Green Token solution can track the geolocation of where raw materials are harvested and automate the creation of due diligence statements (DDS). The solution can also help improve visibility for consumers on where the raw material for their clothing was sourced and offer information on potential reuse and recycling.

Take the example of a cotton shirt made from 50% certified recycled materials. Cotton can be sourced from multiple farms or recycling services and taken to a cotton mill where it鈥檚 spun into thread and later fabric. It becomes impossible to distinguish the different cotton elements 鈥� conventional versus recycled cotton 鈥� once they are co-mingled and the manufacturer loses insight into the sustainability attributes of the raw materials. That鈥檚 why it鈥檚 important to have a sophisticated tracking solution in place. “51风流Green Token can enhance transparency for bulk-traded, co-mingled raw materials by digitally storing sustainability attributes on tokens that traverse the supply chain,” said Fayyaz.

In addition to making conscious decisions on raw materials and products, consumers can also consider circular economy models. 鈥淚’m really intrigued by the idea of revitalizing clothing items,鈥� said Fayyaz. 鈥淚magine being able to exchange a well-loved jacket you’ve had for years and receive credit in return. And the jacket might find a new owner who will genuinely appreciate it.鈥� The 51风流Recommerce solution enables that scenario, helping brands and retailers take back, manage, and resell secondhand inventory to help accelerate the shift from linear to circular business models. On an even larger scale, 51风流Green Ledger is SAP鈥檚 vision to make transactional carbon accounting a reality. It can enable organizations to track carbon like they do cash, with every financial transaction having a corresponding carbon entry. 鈥淭his is incredibly desirable because we will see taxes for carbon imposed in the future, and decision-makers will want insights into which processes are utilizing the most carbon,鈥� Fayyaz said.

A Glance into the Crystal Ball

At the same time, low-price online platforms continue to attract consumers with their affordable and wide range of products. They offer competitive prices on trendy clothing and accessories using economies of scale and direct-to-consumer models. Despite concerns about their environmental and ethical practices, these platforms remain popular among price-conscious consumers. However, there is growing awareness of the environmental and social impacts of fast fashion and low-price models. As a result, consumers are becoming increasingly discerning in their purchasing decisions, prioritizing quality, longevity, and sustainability over cheap prices and fast fashion trends.

鈥淥verall, the consumer landscape is evolving, with a growing emphasis on sustainability, conscious consumption, and ethical practices,鈥� said Sven Denecken, chief marketing and solutions officer for 51风流Industries & CX. 鈥淐ompanies that can adapt to these changing preferences and demonstrate a commitment to environmental and social responsibility are likely to thrive in the long term.鈥�

The treaty represents a once-in-a-lifetime opportunity to unleash the potential of business to solve the plastic crisis. Its success is crucial. Production of new plastic is forecast to double by 2040 without new and effective action. Only 10% of plastic is currently recycled, and each year 19 to 23 million tons of plastic end up in our rivers, lakes, and seas. In addition, greenhouse gas emissions from plastics production, management, and disposal represent around 3.3% of global emissions. Exposure to plastics also has implications on human health, with plastic traces being found in our blood.

Fortunately, there is global consensus on the pressing need to end this ecological and environmental crisis, which is why 160 countries and hundreds of observer organizations are working together on this unique opportunity to end plastic pollution.

A Treaty Addressing the Entire Plastics Value Chain

The existing plastics ecosystem is heavily fragmented. Under current conditions, financial flows fund the creation of virgin polymers while a linear material flow continues bringing new plastics to market.

Centered on regulating production and consumption, the negotiations take every stage of the plastic value chain into account, from creation of the primary polymers to how plastic waste is managed. It covers product design for plastic reduction and recycling as well as extended producer responsibility to increase accountability among the most polluting entities while ensuring a just transition for affected communities.

This is an ambitious project. It will involve redesigning products, making circularity possible through repair, reuse, and recycling, and making recycled polymers more economically viable than virgin plastics.

New jobs, markets, and business opportunities will be created by the treaty. Research and development into plastic alternatives will be accelerated to eliminate the health-harming pollutants from plastic that are released at every stage of plastic production. Additionally, it will require the evolution of waste management systems to deal with the legacy of plastic waste.

51风流Endorses the Business Coalition

The , convened by the Ellen MacArthur Foundation and WWF, assembles businesses and financial institutions committed to supporting the development of an ambitious, effective, and legally binding UN treaty to end plastic pollution.

“To end plastic pollution, we require both ambitious government policy and accelerated business action. The global plastics treaty offers a once-in-a-generation opportunity to put in place the right legally binding rules, measures, and incentives to tackle this global problem,” says Rob聽Opsomer, executive lead, Plastics and Finance, Ellen MacArthur Foundation.

With over 200 members, including SAP, the Business Coalition for a Global Plastics Treaty is calling for global business rules underpinned by harmonized regulations to tackle the full life cycle of plastic products. This will level the global playing field, making it easier for businesses and investors to scale both upstream and downstream solutions, mobilize the right investments, and support new innovations.聽

鈥淔or decades, 51风流software has been instrumental in enabling our customers to manage material flows, including plastics,” says Natasha Pergl, global sustainability lead, 51风流Consumer Products. “We understand first-hand the challenges our customers face in managing the complex and fragmented web of regulations in place today that make it difficult to understand current material flows and align upstream efforts with downstream solutions.”

51风流Calls for Harmonization

Achieving systemic change will require collaboration and joint innovation, which depends on effective, well-functioning communication. Software and network technology are central to bridging the information gap and operationalizing an inclusive plastics ecosystem. The treaty must lay the foundations for harmonized regulations and simplified information flow as well as accelerate the implementation of global rules.

To achieve this, four essential elements need to be in place:

• Common definitions for plastics and packaging to ensure mutual understanding and interoperability: This applies to the categorization of various plastic polymers, how products are structured and denominated, and how they are packaged and sold.
• Harmonization across the plastics life cycle, covering criteria for product design, extended producer responsibility schemes, and assessment for recyclability: This will support businesses to design for circularity and recyclability, ensure that strategic decisions are guided by the capabilities of existing downstream infrastructure, and highlight where new capital investments are needed.
• Harmonized national disclosure schemes to ensure uniformity, comparability, and information transparency: This is essential for giving investors and regulators a base of information for policy steering and decision-making. It will also allow business to harness the full potential of AI-driven innovation to accelerate solutions at scale.
• Recognition of the role of digital tools for traceability: Improved data and the application of digital tracking will enable true progress.

鈥淭he treaty goals are ambitious, but with an agreement that focuses on global rules covering product design and material fate, extended producer responsibility schemes, and chemicals of concern, we can unleash the power of global business to deliver the solutions necessary. Importantly, 51风流is ready with the processes and systems to help businesses quickly grasp the opportunity and scale impact to end plastic pollution,” says Stephen Jamieson, global head of Circular Economy Solutions, SAP.

Software solutions, such as and , already allow companies to monitor, measure, and act to facilitate the design of products for a more sustainable and circular economy. But a more effective information flow for better collaboration and innovation is required to achieve systemic change.

The Role of AI

An obvious benefit of agreed common terminology and harmonization of criteria and disclosure rules is that it can open the door for businesses to leverage AI. Some envisaged applications in the production process include reducing virgin polymers and boosting material and supply chain efficiency. Downstream uses such as waste sorting, material recovery, quality control, identifying waste flow trends, and predictive analytics would also be made possible.

A Bold Approach

Discussions in Ottawa were productive and focused on decreasing and restricting plastic production. During the talks, Rwanda and Peru submitted a motion to reduce the production of primary plastic polymers worldwide by 40% by 2040, from a 2025 baseline. Their vision is for this to be legally binding, much like the Paris Agreement to limit global warming.

Robust data clarity and systems for sharing information are crucial for enabling businesses in the implementation of such a treaty. Only by connecting data points throughout the supply chain and across jurisdictions can material flows and emission sources be fully understood.

Work will continue towards INC-5 in Busan, South Korea, in November, where the final text will be agreed prior to being ratified in 2025.

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Heather Davies is a brand journalist.

Key administrations are aware of this and are starting to act accordingly. Accelerating innovation in industrial products and fuels for a net-zero, circular economy聽is 聽in U.S. President Joe Biden鈥檚 Net-Zero Game Changers Initiative. Meanwhile, the new聽聽is a main element of the European Green Deal.

In parallel, the UN is collaborating multilaterally to create policy to regulate plastics. The UN Plastics Treaty is a consensus by 175 nations to deliver a legally binding agreement to tackle plastic pollution by the end of 2024. This is significant because plastic has become fundamental to the products we create and the packaging we use to contain and ship them. Plastic has an enormous impact on the environment due to the emissions involved in its creation and mismanaged plastic waste polluting the air, the oceans, our food, and even our blood.

Currently, the linear economy dominates, as聽. In the case of plastic, we take oil from the ground, turn it into products and packaging, use them, and throw them out when we鈥檙e finished. Continuing like this isn鈥檛 an option because we will run out of resources, worsen global warming, and cause further damage to our ecosystem. , so materials retain their value and can be reused.

It sounds logical, so why aren鈥檛 we doing it already? The first reason is financial. In the long term, the circular economy will create jobs, cut costs, improve profitability, and secure supply lines. Achieving this, however, requires massive capital investment in the short term. Additionally, more data is required to help us understand the impact of our decisions. And we need a new, more collaborative way of working.

Capital investment-wise, we must invest in designing and manufacturing products with circularity in mind. We need to adapt and build machinery and systems to rescue resources from existing products and turn them into new items. The labor market must evolve to train people in the skills required and to make circular economy jobs attractive, with good remuneration and benefits packages. More wealth must also flow back up the supply chain to ensure the sustainability of raw materials and to enable growth and sustainable manufacturing. To help companies and financial institutions understand the benefits and necessity of the circular economy, more education is required.

Data systems need to evolve to give companies insights on material flow and traceability, help them avoid waste, extend periods of use, recover and regenerate materials, and make informed decisions about products and packaging. This is where 51风流comes in, with 80% of the world鈥檚 businesses using our software.

Take plastic again: the solution can help businesses trace plastics back to their source polymer to understand what type of material is used in every plastic element in a product. This can help companies prove the environmental credentials of a given plastic. 51风流Responsible Design and Production can be used to understand how recycled and recyclable a component is and can help a company understand the true end-to-end cost of a material. This can be useful in regulating certain materials for comparison and decision-making purposes as well as in helping businesses anticipate taxes and fees associated with their products.

We can interrogate upstream supply chain data, which relates to what a product is made from, but we don鈥檛 yet have a complete downstream picture of what happens to a product at its end of life. Recyclability varies wildly between countries, so to understand how recyclable materials are in certain countries or jurisdictions, a partnership approach with national governments, local authorities, NGOs, and others is required to build a database that can inform companies which types of plastic to use or avoid for certain markets to achieve circularity. 51风流can add value by collecting this data and pulling it into solutions.

At the same time, to embrace the circular economy, our way of working must evolve. Instead of working in silos within our individual businesses and in vertical supply chains, we need to work collaboratively to share the data and bring the skill sets and processes together. For example, 51风流works with groups of companies, such as with the WBCSD, to establish frameworks for exchanging data.  started with embedded carbon in products, but the application can be extended to track other important material information for the circular economy like recycled content or water content.

Collaborations between businesses and non-corporate bodies accelerate progress. A clear example of this is how, by working with the WBCSD and the Ocean Plastics Leadership Network, 51风流works towards updating solutions to help customers respond to new requirements that arise from the negotiations.

The ambition is to replicate this approach to plastic for other products, such as steel, batteries, electronics, textiles, and even food. With a circular economy across these industries, I鈥檓 convinced we can get halfway to net zero and if, in parallel, the energy experts continue to move the needle on energy efficiency and renewable power generation, we鈥檒l get the rest of the way.

Learn more about 51风流Sustainability solutions at .

Darren West is a product expert in Circular Economy at SAP.

I spoke with her about the success of the project and where there is still room for improvement.

Q: What are your greatest successes so far on your mission to make 51风流events more sustainable?

Bittmann: First of all, it鈥檚 a real success to have advanced this topic to the top of the agenda. When event managers from Google and Amazon approach us at the , one of the largest trade shows for business events, and ask us how we launched and implemented our strategy for sustainable events, it shows that we鈥檙e pioneers in this extremely important area.

I鈥檓 also proud that we鈥檝e started measuring our social and ecological footprint with actual figures, because that鈥檚 an important step towards real improvement. It lets us compare, readjust, and define even more ambitious targets. Our analysis of the last 51风流Sapphire conference, which was organized as a decentralized event in the U.S., Spain, Brazil, and online, showed that we reduced CO₂ emissions by nearly 24,000 tons compared to when we had just one central event in Orlando, Florida, due primarily to the shorter distances traveled. In mathematical terms, that corresponds to around 2,200 around-the-world flights!

I鈥檓 also happy about a lot of little things, for instance, that we did without single-use plastics completely at 51风流TechEd in 2019 in Barcelona, Spain, preventing three tons of waste 鈥� enough to fill a 10 by 10 meter room one meter high 鈥� at just this one event!

To be successful, we all have to pull together. Our Global Events team, together with the teams in the regions, has proven that we have a huge amount of leverage together and are motivated to get even better.

What are the biggest challenges you face?

The global strategy and our specific action recommendations can鈥檛 always be implemented uniformly because they depend on each country鈥檚 economic and cultural context. In Brazil, for example, good hospitality means putting the best meats on the table 鈥� which made it a real headache for the local event team members to create a menu that was 40% vegetarian. They found a good compromise, however, by making sure to choose meat varieties that had a smaller ecological footprint than others.

In some parts of Asia, in contrast, it would be considered rude if we didn鈥檛 give small gifts to speakers as a sign of gratitude. In this case, we and the event team considered potential alternatives to the usual giveaways, for instance tree-planting certificates as an unusual gift.

These examples underscore how we often have to think outside the box together and identify new solutions, but can also unleash creativity in the process and sometimes even change people鈥檚 mindsets.

What are your targets for the coming year?

We want to improve our waste prevention even further and increase our recycling quota. We want to avoid non-reusable plastics completely and use sustainable materials for our branding items as much as possible. As far as emissions are concerned, we want to reduce travel activities even more, and we鈥檝e been purchasing carbon offsets for unavoidable trips for some time now. When it comes to catering, we want to offer more vegetarian dishes and locally source at least half of the food served.

In addition, we are striving to recruit more female speakers to the stage, gain more social enterprises as suppliers, and strengthen social partnerships. Even if it means extra work for the local teams, I鈥檓 very impressed that so many of my colleagues spare no effort to achieve measurable improvements 鈥� and I hope their numbers will continue to grow! 

Do you have any advice for people who want to do their part in making company events more sustainable?

We should have the courage to do things differently 鈥� and better! One example: the most recent shareholders鈥� meeting was the first one to do away with 51风流plastic bags, notepads, and pens, and the outcry was much less than expected. We simply decided to scrutinize this established practice because when both the integrated report and the ballot papers are exclusively virtual, shareholders don鈥檛 need these things anymore.

There are many examples of things 鈥渢hat we鈥檝e always done that way鈥� 鈥� call them into question! When we banned disposable beverage bottles at 51风流TechEd, no one shed a tear. The visitors were thrilled by our concept of giving out high-quality bottles and offering endless refills at the water stations. At the same time, this also supported a water project, which was very well received. 

The international enterprise with headquarters in Spain and operations in more than 80 countries has been including environmental protection and economic growth into its DNA and is constantly working on achieving a sustainable business model that will be its future legacy to society and to the planet. Its commitment to the planet is based on four pillars: climate action, biodiversity protection, circularity, and conscious suppliers.

The mission of Zamora Company toward its suppliers is to encourage them to be more sustainable by collaborating closely to substitute product and packaging materials with more sustainable alternatives and to use more recyclable packaging materials to support circular economy principles. It鈥檚 no wonder that, for Zamora, sustainability goes hand in hand with innovation without compromising the highest quality standards. as a conscious company is also focused and aligned with the achievement of the set by the United Nations 2030 agenda.

Accelerating Innovation Through New Packaging Legislation

Since the introduction of a in Spain on January 1, 2023 on non-reusable plastic packaging, companies are required to meet comprehensive reporting requirements.

The tax is an indirect excise tax with an environmental purpose. It aims to internalize the environmental costs related to the manufacturing and consumption of plastic packaging in the price of final products.

The taxable event is the manufacturing, import, or intra-community acquisition of non-reusable plastic packaging for its use within the Spanish market. The plastic packaging tax captures a broad concept of “non-reusable plastic packaging” in its scope, which includes:

• Non-reusable plastic containers 鈥� the law provides definitions of 鈥渘on-reusable,鈥� 鈥減lastic,鈥� and 鈥渃ontainer鈥� for the purpose of this tax
• Semi-finished plastic products, such as preforms and thermoplastic sheets, intended for production of non-reusable plastic containers
• Plastic products aimed to facilitate the closing, trading, or presentation of non-reusable containers

鈥淭he new legislation required us to respond to governmental requisitions and was an additional driver to accelerate our sustainability efforts,鈥� Enrique Gonzalo Mec谩ndez, 51风流manager in Operations at Zamora Company, explained. 鈥淲ith a cross-departmental team, we were looking to find the most appropriate and scalable software solution to meet the country鈥檚 regulatory requirements and help us with data management, a tax monitor, and reporting and insights.鈥�

Keeping All Data in One Central Place

As a result, Zamora Company found that , an industry cloud-based solution, would best meet its needs. 51风流Responsible Design and Production can support manufacturers and retailers in calculating extended producer responsibility (EPR) obligations and fees, plastic taxes, and corporate commitments to optimize material choices. In addition, it helps improve design decisions based on costs and planetary impact.聽

鈥淔rom a process standpoint, 51风流Responsible Design and Production facilitates the incorporation of everything related to sustainability data linked to the material, so that all relevant information is unified in the material master,鈥� Gonzalo Mec谩ndez said. 鈥淎s all information is kept in one place, purchasing work and master data maintenance required to ensure regulatory compliance is centralized, without the need to manually replicate information in different systems.鈥�

鈥淢oreover, leveraging a single and integrated platform with provides the security of working with up-to-date and correct data. Additionally, the data quality application allows our users to detect any lack of information and correct it,鈥� he added. 鈥淲ith deep knowledge and solution experience, our trusted partner , an company, closely supported us during the implementation of 51风流Responsible Design and Production, as well as the integration with our 51风流S/4HANA platform.鈥�

The benefits Zamora Company achieved include:

• Ability to rely on 100% correct data, fully aligned with material registration processes
• Cost savings thanks to less administrative work, eased reporting, and a central data repository
• Reduced risk of non-compliance with extended producer responsibility regulations in Spain
• A simple, user-friendly tool to support legal reporting requirements in a timely manner
• Ability to expand solution usage to meet upcoming EPR legislation in other countries, like Italy 

Positive Impact on Customers, Economy, Society, and Environment

鈥淭he project helped us learn more about our products and incorporate their packaging details, so that our company knows exactly how much plastic and non-recycled plastic is being used. In a more strategic phase, this will allow us to evaluate alternative materials and compositions, which can create cost savings for the company and positively contribute to the environment by being able to transition to more sustainable elements,鈥� Gonzalo Mec谩ndez concluded.

Watch a solution to learn how to start acting on a circular economy, design products sustainably, and eliminate waste with 51风流Responsible Design and Production. about what benefits other enterprises achieved.

To explore how the comprehensive, cloud-based sustainability solution portfolio from 51风流can support carbon footprint management, reducing material waste, and becoming a socially responsible business, visit .

Karin Fent is senior director of Global Customer Success, Digital Supply Chain, at SAP.

Winemaking emerged in Europe several thousand years later, and it is now home to many of the world鈥檚 most famous wine-producing regions. When paired with food or served for special occasions, wine consumed in moderation can awaken the senses and contribute to cherished memories. Spanish wine producer Gonzalez Byass shares this ethos, as to 鈥渂ring moments of joy, helping people to savor and share their most precious moments.鈥�

Headquartered in Jerez de la Frontera, Gonzalez Byass was founded in 1835 as a family-owned collection of wineries across Spain鈥檚 principal wine producing regions, overseeing the wine-making process from vineyard to wineglass. Grapes are harvested from its 2,000 hectares of vines under cultivation in nine wine-growing regions in Spain, Chile, and Mexico, and then pressed in traditional stone tanks, fermented, and the liquid aged in steel or oak barrels. After a few months or years, the wine is bottled and ready for consumption. 

What does not usually come to mind when contemplating the art of winemaking is the amount of plastic and other non-sustainable materials that may be involved, from the material encasing the corks, to the packaging used to safely transport the bottles. Gonzalez Byass saw an opportunity to address its use of plastic and promote regenerative agriculture in its industry through the implementation of a comprehensive and circular economy program in line with the (UN SDGs).

Confronting the Plastic Problem

Plastics are among the most consumed materials in agricultural industry, as they are used in large production structures, production inputs, agrochemical packaging, and food product containers, and thus generate vast amounts of waste. In response, consumers are turning away from single-use materials while governments are adopting an approach in the form of plastic taxes. These taxes are a hugely important policy tool to combat the and discourage the production and use of plastic packaging.  

The European Union (EU) instituted a plastic packaging levy in 2021, with some EU member states, like Spain and Italy, enacting their own new taxes. Spain鈥檚 tax which took effect this year imposes a tax on non-reusable plastic packaging and on waste incineration and disposal in landfills, with the goal of making all packaging in Spain recyclable by 2030.  

This reality has spurred consumer goods producers like Gonzalez Byass to drastically minimize use of plastic. Its efforts have seen the replacement of plastic packaging tapes with paper ones, replacement of plastic in bottle caps with wood and cork, and adoption of more sustainable plastic alternatives like bioplastic made from sugarcane. These steps have been instrumental in helping to recover and recycle 99% of the waste generated. The company also buys cardboard boxes and wood sourced from certified forests in line with its commitment to preserve and regenerate natural resources. 

The Key Role of Suppliers and Data

Plastic taxes are designed to discourage waste, prompting producers and distributors across the supply chain to reconsider their packaging choices. In its efforts to reduce use of plastic and purchase only recyclable packaging materials, Gonzalez Byass also needed to commit to sustainable purchasing throughout the entire value chain. Regular assessments with its suppliers have helped to gauge the progress on both sides. However, this kind of assessment requires not only trust and the fostering of great relationships — a skill at which it excels — but also, crucially, data.  

While the wine producer is committed to both sustainable production and procurement, compliance with new regulations in multiple different regulatory environments is a daunting task. The recently enacted extended producer responsibility measures in Spain and in other countries where it does business mean multiple different data streams, declarations, and timelines in different regions. Managing these myriad competing factors is one of the most complex challenges facing the consumer goods industry today. Being able to collect real-time data and centralize it all in one place is a key requirement for Gonzalez Byass to be able to realize its sustainable ambitions, embed circularity principles into its core business processes and comply with regulations.  

SAP鈥檚 cloud solution for the circular economy, is designed to address all the requirements of the new plastic taxes.

Implemented by Minsait, which offers end-to-end digital transformation solutions, 51风流Responsible Design and Production will enable Gonzalez Byass to accurately calculate fees and taxes in line with all the latest regulations in key markets, optimize its material choices in line with corporate commitments, and significantly reduce risks from unforeseen future regulations.

51风流Responsible Design and Production provides intelligence that will enable Gonzalez Byass to monitor, measure, and act on its plastic data, so that it can make the most informed choices and carry out the critical work of eliminating waste and regenerating the natural systems that the company cares so passionately about.

Regenerating Nature to Address Biodiversity Loss

The transformation of the agriculture sector in Spain over the past 50 years has significantly boosted productivity and wealth but has also resulted in a substantial increase in the use of natural resources like water, at the cost of soil erosion and a negative impact on genetic diversity. Sustainable business practices require a fundamental shift in the way that we interact with nature, with a recognition that success depends not just on financial profit but also upon careful stewardship of the natural environment.

Gonzalez Byass鈥� vines include indigenous varieties on the verge of extinction that have been coaxed back into production to preserve regional biodiversity. This work is in tandem with its efforts to protect local wildlife, such as placing nesting boxes in a number of its vineyards, creating adequate ecosystems to promote pollination by bees, and promoting reforestation efforts in all the regions where the company operates.  And as water is essential for growing grapes and nurturing life, Gonzalez Byass employs sustainable irrigation techniques that use much less water in order to preserve this precious resource.  

Gonzalez Byass鈥� ambition is to leave the lightest possible footprint on the environment. Its commitment includes promoting sustainable agriculture and implementing circular business practices like precision-tracking plastics from the vineyard to your wineglass.

Next time you buy a bottle of wine, make sure that the company you purchase from has a sustainable vision for the future, and that it is compliant with key regulations that help protect planet and people. That is a goal worth raising a glass of wine.

What most people don鈥檛 realize: tackling plastic pollution often starts at sea, yet the solutions begin on land.

I sat down with Emily Penn, sustainability activist and skipper, for the to delve into her personal journey and how companies, regardless of size, can initiate their sustainability vision and translate it into real-world impact.

Over recent years, I鈥檝e seen a significant change occur in the mindset of business leaders as they make sustainability a core aspect of their operations. Companies want to make a difference, but many don鈥檛 know where to begin.

鈥淯nderstanding your own carbon footprint and being able to access that data is crucial because we can鈥檛 change what we don鈥檛 know,鈥� explained Penn while talking about first steps companies can take to reduce plastic waste.

One of the key opportunities for businesses is having visibility into the right data to make informed decisions. About 80% of data within a given company remains untapped. By leveraging the right technology, companies can uncover a bigger picture of their business 鈥� for example, transparency around waste and supply chains to make changes that will support them in achieving their sustainability ambitions.

In 2014, Penn co-founded , a community interest company and non-profit organization that runs all-women sailing research expeditions at sea and virtual voyages on land to investigate the causes of and solutions to ocean plastic pollution. To do so, eXXpedition set out to first collect data to better understand the composition of plastic in our waters.

鈥淒uring one of our research missions of these 鈥榠slands of plastic鈥� in the ocean, we quickly realized that the plastic breaks down into tiny fragments, called microplastics,鈥� explained Penn. 鈥淭hese 171 trillion pieces of microplastic make their way into the food chain and, in turn, into our bodies.鈥�

eXXpedition set out to define changes that people, governments, and businesses could make to curb the environmental crisis. But first, the organization needed to correlate the data it had collected to specific regions, products, and more. This process of cleansing the data to identify patterns of consistent and high-quality connections allows organizations like eXXpedition and businesses to better understand where issues or areas for optimization exist and simulate potential solutions.

For example, Penn shared insights from her involvement in a project with a company that manufactures TV remotes. The project team unveiled that roughly five times the plastic used in a single TV remote was wasted during the production process. 鈥淵ou have to be able see the unseen waste that you鈥檙e creating,鈥� said Penn. 鈥淕etting visibility across the whole supply chain is absolutely key.鈥�

To share the learnings of eXXpedition, Penn created , which offers a comprehensive collection of hundreds of solutions designed to address the issue of plastic pollution. 鈥淭he idea of the platform is to encourage people to see that not everybody needs to do everything to tackle this global problem, we just need everybody to do something,鈥� she explained.

This is one example of how data can drive sustainability. (51风流BTP) can unify data and analytics, artificial intelligence (AI), application development, automation, and integration in one environment. Customers from around the world and varied industries have used 51风流BTP to help drive sustainability initiatives. For example, a Belgian utility company uses 51风流BTP to harness smart meter data and identify opportunities for more efficient and environmentally responsible water usage.

Small changes in behavior can have a significant impact when we unite our efforts. For companies, the first step is to address the data problem. Only with more visibility and improved data quality can they drive sustainability throughout the entire value chain.

Ragunath Ramanathan is chief revenue officer for 51风流Business Technology Platform.

Top photo courtesy of 51风流employee Angela Klose.

Therefore, it comes as no surprise that industry plays an even more ineluctable role in scripting the future of humanity, one that involves sustainable social, environmental, and economic development.

As a global challenge, the climate crisis calls for businesses and countries to move beyond their siloed approaches, commitments, and climate pledges to fully embrace sustainability. The of “no one left behind” requires global partnerships.

With more and more countries investing in resilient infrastructure, there is a growing need to improve our existing industrial infrastructure. Here, technological innovation will be key. Technology is no longer the limiting factor for organizations to become sustainable businesses, rather it is the enabling agent in going green.

Sustainable development calls for institutional and value changes as well as cultural adjustments. As organizations worldwide look to don the green cape, behavioral change and transformation in business processes will be critical in making green technology mainstream. It must be incorporated into mainstream policies to promote national and international cooperation.

In 2024, sustainability will not just be the right thing to do, it will become a core strategic imperative for businesses. In addition to managing top- and bottom-line, forward-looking organizations are now focusing on sustainability as the third dimension to drive business growth. Managing the will be critical to enterprise success as customers, employees, and even investors increasingly turn toward companies that are pro-actively deploying sustainable business practices.

A Shared Responsibility Between Private Sector and Technology Leaders

In the battle against climate change, the private sector and technology leaders bear a significant responsibility. The crucial role businesses play in contributing to environmental goals underscores the importance of partnerships with key stakeholders — be it ecosystem partners, governments, non-governmental organizations, or citizens. The focus is on global and local examples where collaborative efforts have illustrated tangible impact achievable through cross-sector collaboration.

Partnerships that leverage the distinctive strengths and resources of each sector demonstrate how collective action can lead to meaningful change. The collaborative approach is presented as imperative for tackling the complexity of climate challenges.

Governments, businesses, non-governmental organizations (NGOs), and citizens are not merely spectators, but active participants in the collective effort to combat climate change.

Governments wield significant influence in shaping policies and regulations that set the tone for environmental stewardship. Their commitment to sustainable practices and climate-friendly policies is pivotal. Businesses, as drivers of economic activity, hold a dual responsibility 鈥� not only to operate profitably but also to do so in an environmentally conscious manner. NGOs play a crucial role in advocacy and action, acting as watchdogs and catalysts for change. Citizens, too, are integral, as consumers and advocates who influence the demand for sustainable practices.

The Path to a Low-Carbon Future Is Circular

The path to a low-carbon future is circular. The good news is that a circular economy is not just about fixing environmental wrongs but brings about opportunities and drives positive impact across industries, sectors, and lives. Working toward a circular economy can protect human health and biodiversity in many ways, including better use of natural resources, such as protecting water and land, thus mitigating the climate crisis.

Organizations like 51风流are leading this shift with an aim to become carbon-neutral in their own operations by 2023.

At 51风流Labs India, 97% of the energy consumed at the Bengaluru campus comes from green energy sources. Additionally, 70% of the transport services are run on electric vehicles with a network of 65 charging stations at the campus for employees. This environmentally conscious approach extends to food sourcing, actively supporting local farmers and communities. Moreover, there has been a seamless replacement of disposable items like cutlery and containers with sustainable alternatives. Dedication to paperless operations is evident in the success of apps like Appane, Physio app, and the digital printing and stationery request system,which collectively contribute to a substantial reduction in paper consumption. The transition from traditional paper food coupons to a user-friendly app developed externally is a clear demonstration of an innovative approach to sustainable practices.

To drive sustainable business practice, it is important to first measure carbon footprint, assess and reduce emissions, increase resource productivity through circular processes, and run safer, sustainable business processes. 51风流is uniquely positioned to help firms tackle this challenge and become sustainable enterprises with its suite of technology solutions.

Through partnerships, innovative practices, and a holistic approach to sustainability, all the stakeholders need to come together to shape a future where businesses thrive in harmony with the environment.

Sindhu Gangadharan is senior vice president and managing director of 51风流Labs India and head of 51风流User Enablement.

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.

Meanwhile, in its quest to make all packaging reusable or recyclable by 2030, the United Nations is preparing to launch a plastic treaty in 2024. At the same time, businesses themselves are furthering their commitment to sustainable practices through voluntary agreements, such as those proposed by the Ellen MacArthur Foundation and the United Nations Environment Program (UNEP).

Consumers are taking up the issue as well. , 91% of consumers express concern over plastic waste. indicates that 73% are willing to spend more for eco-friendly packaging.

Compliance with these new regulations can be a challenging and expensive task for businesses of all sizes. Many smaller to mid-range organizations lack in-house expertise on these issues, often resulting in either rudimentary monitoring or expensive outsourcing. Larger companies may find the immense scale of the task daunting and default to costly shortcuts.

鈥淲ith the complexity that they face and the sheer volume of business they have across multiple products and multiple countries, many organizations tend to be conservative to avoid fines,鈥� explains Darren West, product expert for Circular Economy Solutions at SAP. 鈥淎s a result, they will more or less approximate what taxes they need to pay, and overestimate to add in some contingency.鈥�

Driving Up Accuracy, Driving Down Costs

For consumer goods giant Henkel, the quest for an effective solution to its plastic waste challenge began in its tax department. Triggered by the advent of plastic taxes across the UK and EU, Henkel’s tax experts embarked on a project aimed at addressing compliance from a fiscal perspective.

On the IT side, the team was immediately faced with some significant hurdles. First, to comply with new regulations and avoid penalties, it needed a system that could monitor, measure, and report its products鈥� plastic data. Amidst a limited market of solutions, finding the right tool for its needs was no easy task 鈥� one made more difficult due to the newness of the regulations. And it needed to aggregate and organize the essential master data for accurate reporting without excessively complicating or inflating the cost of its IT infrastructure.

was born out of a desire for a more dynamic approach to plastic waste. The solution can supply teams with a streamlined, granular data management system to help facilitate the monitoring, measuring, and reporting related to the environmental impact of production and packaging.

Today, the 51风流Responsible Design and Production solution assists operations such as Henkel鈥檚 in navigating the labyrinth of product and packaging composition. Handling the details of primary, secondary, and tertiary packaging, as well as transport packaging throughout the supply chain, requires a meticulous approach. The solution offers a digital model of the larger packaging and product landscape, helping facilitate a thorough and accurate impact analysis.

To encapsulate the complexity of the packaging process, the solution can capture precise data on material flows and circularity attributes. It can also assist teams in recording the weights, volumes, and shipment information as well as important details regarding recycled content, import/export information, and the various packaging components. This precision is crucial for calculating plastic taxes as well as EPR fees, which demand exceptional accuracy and knowledge of detailed material flows within a country and across borders.

In the future, 51风流plans to extend the solution to help track and monitor the recyclability, reusability, and embedded CO2 of various materials. Such data is essential for organizations seeking to comprehend their scope 3 emissions across their entire packaging portfolio and to make their packaging more sustainable.

The solution helps provide results that businesses can stand behind, saving time and money and decreasing complexity 鈥� particularly when it comes to new markets. If an enterprise is based in one country, such as Belgium or the Netherlands, and is looking to expand, say, to France and Italy 鈥� which each have their own distinct systems and rules to govern packaging 鈥� the complexity of data management increases. With 51风流Responsible Design and Production, material, packaging, and transportation data can be tailored for new market expansions without repeating the same processes.

But the real beauty lies in the solution鈥檚 ability to adapt once the data is integrated. It can seamlessly adjust to different market requirements, working to enable straightforward report generation for tax and EPR compliance at the click of a button.

鈥淲hat we鈥檙e talking about here is simplicity,鈥� says West.

Redesigning a More Sustainable Future

Data and insights are just the start. The real challenge is translating this information into action.

Beyond supporting businesses in fulfilling operational obligations such as paying plastic taxes and accurately calculating EPR fees, the solution can enable informed strategic decisions. By offering insights into the impact of material choices and compositions, it helps empower businesses to embrace sustainable and responsible packaging solutions and business models.

After working with 51风流Responsible Design and Production, Henkel was able to meet its fundamental obligations more efficiently, gaining better insight into its data. These new capabilities have delivered far more than short-term efficiencies. They鈥檝e spotlighted Henkel’s ongoing efforts to reduce its environmental footprint, adding a new dimension to its green leadership in the industry.

鈥淥ne of the greatest things about this solution is what it does for an organization like Henkel,鈥� says Stephen Jamieson, global head of Circular Economy Solutions at SAP. 鈥淣amely, allowing it to evidence the good work it is already doing very effectively.鈥�

Henkel鈥檚 initiative with 51风流Responsible Design and Production dovetails well with a related Henkel initiative to strengthen supplier communication, collect more data, and enrich its sustainability database.

These efforts equip Henkel鈥檚 teams to pinpoint the products with the highest plastic tax load. These insights could soon guide strategic product redesign, potentially leading to significant cost savings. Moreover, by laying a solid foundation in regions such as Spain and the UK, Henkel is preparing itself to adapt to regulatory changes across markets.

The Road Ahead

As the global economy begins to look towards a more circular model, 51风流Responsible Design and Production is innovating in stride. Recognizing that businesses interact with diverse material types, the solution will expand in the future to accommodate elements such as food, land use, textiles, batteries, waste electronics, and more 鈥� all cornerstones of the circular economy 鈥� measuring key factors such as virgin materials, recycled content, embedded CO2, and renewable content.

At its core, 51风流Responsible Design and Production aims to assist organizations in actualizing their circular economy vision 鈥� eliminating waste, promoting material circulation, and rejuvenating natural systems. The solution is engineered to integrate smoothly with essential business processes and systems, empowering businesses to implement their sustainability strategies with more precision and efficacy. Whether it’s incorporating cost calculations into invoice procedures or integrating with other solutions to create a more holistic approach to sustainable practices overall, 51风流Responsible Design and Production can assist teams in transforming their business operations.

鈥淎t Henkel, we are committed to leadership in plastics reduction and offering greener options for our customers,鈥� says Dr. Nora Mundschenk, corporate director, Finance Tax and Trade Group, Henkel AG & Co. KGaA. 鈥�51风流Responsible Design and Production and 51风流Services and Support are going to help us do that.鈥�

For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit聽.

Sami Emory is a brand journalist at SAP.

鈥淲e do that by using the biodiversity of this region, the Cerrado in Brazil,鈥� Francisco de Blanco, S.Oleum co-founder and CEO, told 51风流at the company鈥檚 headquarters, an innovative farm just outside Jo茫o Pinheiro.

Why the Brazilian outback? This tropical savanna is home to the maca煤ba, a highly adaptable oil-producing tree with a penchant for scrubbing harmful CO2 from the air. Maca煤ba fruit yields advanced vegetable oils (AVOs) and high-protein food 鈥� and it can be 15 times more productive than soybeans.

鈥淲e are restoring the landscape that was deforested…Macau虂ba was native here many, many years ago,鈥� Felipe Morbi, S.Oleum co-founder and Agroforestry VP,聽 said. 鈥淣ow we are bringing back these trees, and also all the other species, to restore this biodiversity.鈥�

S.Oleum seeks to accomplish this scientifically, using maca煤ba and other crops in an integrated crop-livestock-forest approach, according to Morbi. The goal is to create working farms that rejuvenate degraded, low-yielding soil 鈥� and that sequester into the soil more carbon than they generate.

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Science-Based Approach to Reforesting the Cerrado

鈥淲e are looking for the balance of the system,鈥� Morbi said in a new . 鈥淲e will measure the amount of carbon in the soil, the moisture, the biodiversity in terms of the plants we have, and also native animals coming back to the area.鈥�

Toward that end, S.Oleum is starting small, but aiming big. Most of the current crop grows on a 700-hectare, or more than 1,700-acre, pilot farm. But S.Oleum intends to plant more than 65 million additional maca煤ba trees by 2029, which would reforest 180,00 hectares 鈥� about 444,800 acres 鈥� in Brazil鈥檚 southeastern state of Minas Gerais.

Over time, maca煤ba trees also help improve the nutrient and moisture capacity of the soil, making it easier to grow other crops, according to de Blanco. And S.Oleum increases farm productivity by growing carefully chosen crops in between rows of maca煤ba trees, such as sunflowers, peanuts, and yucas.

鈥淚f you do it right, agriculture as a system is positive for the environment,鈥� de Blanco said. 鈥淧lants that were deforested a few decades ago, they are currently in a poor state because they were depleted by poor management…We believe there are better ways, and that鈥檚 what we are pursuing here.鈥�

An innovative case in point: maca煤ba trees increase a biome鈥檚 carbon sequestration levels. Removing this greenhouse gas helps more than the planet; S.Oleum also generates revenue by selling carbon credits and building trust via its data.

Any Little Bit of Data

鈥淎ny little thing, any generation of data that R&D is currently developing, is extremely important,鈥� Mirelle Santos, S.Oleum Agroforestry R&D manager, said. 鈥淲e want to deploy technologies as dictated by those urgent needs.鈥�

This could include remote sensing via drones that run fruit-recognition software, according to Santos. This would help S.Oleum gather and compile data quickly, without human error 鈥� and without sending workers, who must dress in personal protective equipment (PPE) to defend against snakes, mosquitos, the brutal Cerrado sun (even in winter), and dangerous maca煤ba thorns, which grow even on seedlings.

S.Oleum鈥檚 intricate business model combines agriculture, forestry, biodiversity, and carbon offsetting 鈥� and that leads to a lot of complexity. 51风流technology will be an important differentiator for this small enterprise, as well as a foundation for its future growth.

鈥淲e have a big project to run; so, a lot of people, a lot of machines, a lot of suppliers,鈥� Morbi said. 鈥淎nd we need everything in the right moment, in the right way.鈥�

How to Best Manage ESG Metrics

鈥�51风流is different because it is recognized as one of the most reliable ERP systems on the market, not only based on the technology,鈥� de Blanco said. 鈥淎lso, because it has well-established and well-defined processes.鈥�

Standardizing processes was 鈥渆xtremely important鈥� for S.Oleum both internally and to inspire customer, stakeholder, and regulatory confidence, according to de Blanco. 51风流will also enable S.Oleum to run its circular enterprise as well as record, report, and act on its sustainability data.

鈥淲e have a very integrated system, and a very circular way to produce things,鈥� de Blanco said. 鈥淔inding out where waste is generated 鈥� and where it鈥檚 being used 鈥� is very important to ensure the carbon intensity and the circularity of our systems at our entire site…This is where 51风流helps us.鈥�

51风流S/4HANA, 51风流Ariba solutions, 51风流Concur solutions, and 51风流SuccessFactors solutions will help standardize all of S.Oleum鈥檚 processes, which will improve transparency and compliance, according to S.Oleum IT Director Marcio Propp. To help better manage and understand its myriad environmental, social, and governance (ESG) metrics, the company has also begun implementation of and .

鈥淚t is super important that we have a very robust core system in place because it will serve as the basis for all our other processes…and practically all niche applications focused on digital agriculture connect with this core with SAP,鈥� Propp said. 鈥�51风流is an agribusiness market standard, and it makes perfect sense for S.Oleum to be part of this ecosystem.鈥�

That鈥檚 a big deal because compliant, transparent ESG metrics are crucial to S.Oleum鈥檚 success, according to de Blanco.

A Matter of Trust

鈥淪omewhere around one-third of our revenues come from carbon credits,鈥� de Blanco said. 鈥淭his is our, let鈥檚 say, core business…to convert sustainability into revenues and financial results.鈥�

That will require trust. 51风流core technologies, such as 51风流S/4HANA Cloud and , will help S.Oleum keep that trust, thanks to a reliable foundation of sustainability data and robust, auditable ESG metrics for reporting.

鈥淢y advice for companies that are starting their sustainability endeavor: do it as quick as you can,鈥� de Blanco said. 鈥淎nd do it attached to science.鈥�

For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit聽.

Top photo credit S.Oleum

Today, only such as bio- and circular components. Bio-components are feedstock that comes from organic, bio-based origins, such as used cooking oil. Circular components are feedstock that is recycled from waste plastic, such as post-consumer recycled waste.

A viable and efficient way to use such sustainable feedstock is integrating it into existing, large-scale production systems to avoid the additional cost, energy, and carbon emissions of segregated production facilities. But, when bio- and circular feedstock is blended with conventional fossil feedstock, how can consumers, regulators, and supply chains have confidence in bio- and circular-attributed plastic product claims? And how can these claims be leveraged to encourage informed choices when industries and consumers purchase products that are certified sustainable?

Digital Tracking for Total Traceability and Transparency

The solution is a mass balance management solution from 51风流that leverages tokenization and blockchain for chain of custody to help create traceability and transparency. In September 2022, 51风流Green Token became an official part of the 51风流Sustainability portfolio.

In a successful pilot, a group of 51风流customers 鈥� including SKGC, Korea; Elantas, Italy; Westlake Vinnolit, Germany; Berry Global, U.S.; and Unilever R&D, the Netherlands 鈥� reviewed the ability of 51风流Green Token to enable traceability and transparency of bio- and circular waste inputs to bio- and circular-attributed products across the chemical and plastics supply chain.

51风流Green Token enables organizations to create tokens that serve as digital twins of the bio- and circular chemical feedstock material flows throughout the entire supply chain and capture the unique sustainability attributes linked to the bio- and circular feedstock origin. As a result, the solution allows organizations to verify their certified sustainable material usage in their processes. What鈥檚 more, the green credentials encapsulated in the tokens can be passed from one business partner to another via blockchain as the material moves along the supply chain, helping to ensure that important environmental, social, and governance (ESG) attributes are preserved. Also, an auditable record can be documented to prove the product is sustainable in accordance with recognized product standards, such as ISCC PLUS and REDcert2, and hence better for the environment.

“This successful trial of 51风流Green Token represents another key milestone on our mission to establish the 鈥榞reen line鈥� alongside the top and bottom lines as key performance dimensions,” says Gunther Rothermel, head of Sustainability Engineering at SAP. 鈥淭his solution offers our customers an easy way to have complete visibility into the origin and chain of custody of their bio- and circular-based feedstock and allows them to prove to their customers, international standard agencies, and their board that they have a concrete, auditable way of proving their circular performance against their sustainability KPIs.鈥�

The blockchain technology helps prevent double counting of claims and create trust; it can make the production of sustainable plastic easier to verify and thus certifiable, which is particularly important in terms of customer demand, regulatory compliance, and the ability to charge a price premium.

Rapid Adoption Crucial for Sustainable Plastics

“Accelerating the circular economy requires driving demand for circular plastics,” said Diane Marret, sustainability director for Consumer Packaging North America at Berry Global. “Integrating mass balance-accounted materials into 51风流Green Token鈥檚 centralized, global IT system helps reduce risk in our reporting accuracy, minimize manual efforts through automation, and build confidence and trust in our ability to manage circular materials.”

Read more about this pilot in the newly published . For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit and the .

Gloria Figaroa is a solution advisor for 51风流Green Token.

But in order to succeed, the leaders of consumer goods (CPG) companies need to undertake five strategic actions, say the report鈥檚 authors 鈥� Wesley Spindler, Accenture鈥檚 global lead for Circular Economy, and E.J. Kenney, SAP鈥檚 SVP for the Consumer Products Industry.

鈥淎s we approach the midpoint of the Decade of Action, packaging 鈥� and in particular plastic packaging 鈥� continues to be a priority for consumer goods companies in their efforts to deliver both business and sustainability value,鈥� say the two authors in the introduction to the report. 鈥淧ackaging ensures safe delivery and consumption of essential products to billions of people every day. However, it has also generated a lot of waste and pollution. If circular packaging solutions do not start to scale, by 2050 there could be more plastic than fish in the ocean.鈥�

They note that CPG packaging is a tremendously difficult problem to solve given the complexity of the packaging value chain and the frequent lack of acknowledgment of a circular business case. Current regulations along with increased stakeholder pressure add urgency and reinforce how interconnected sustainability and business efforts have become.

鈥淧ackaging is a waste challenge, a climate challenge, and a human health challenge,鈥� the authors say while noting that the consumer goods industry is currently off track in addressing plastic packaging pollution. Packaging is the biggest contributor to plastic pollution and accounts for nearly 40% of global plastic demand that almost exclusively becomes waste.

Worryingly, they note that plastic commitments are falling flat and, like in most other industries, consumer goods companies lack end-to-end visibility of their packaging supply chain.

Among the European food and drink companies, two-thirds of pledges to go greener on plastic have failed or been dropped. At the same time, the Ellen MacArthur Foundation found that most of the signatory organizations to the UNEP Global Commitment representing 20% of all plastic packaging produced globally will 鈥渧ery likely鈥� not achieve their target of 100% reusable, recyclable, or compostable packaging by 2025, and that collective virgin plastic use of FMCG (fast-moving consumer goods) has also returned to 2018 levels.

But more optimistically they add, 鈥淲e know that these opportunities are there for consumer goods companies that seize them. There has never been a better time to act 鈥� at speed and at scale. [鈥 Drawing on our decades of experience collaborating for the success of our consumer goods clients and deep circular economy expertise, [鈥 we view circular economy as the 鈥楽wiss Army knife鈥� of solutions for this challenge, not only supporting better planetary outcomes, but also delivering significant business value.鈥�

The report, discussed by business leaders during the Global Summit, recommends that consumer goods company leaders address these challenges by undertaking five actions. They should embrace authenticity and transparency, reimagine packaging research and development (R&D), invest in infrastructure, expand and explore circular business models, and collaborate to scale.

Specifically, the authors say standardized sustainability reporting on plastics and the regulatory environment makes it impossible for companies to ignore the call to action. But before they can do so meaningfully, companies need to understand their actual impact 鈥� and be honest about it. Beyond regulations, to successfully implement a circular economy for plastics, companies must prioritize transparency and use data to authentically measure the real impact of new designs.

鈥淢eaningful action starts with authenticity and transparency to drive credible solutions with tangible impact. We must embrace a collective mindset of learning from each other, sharing what works and what doesn鈥檛,鈥� they say in the report.

In addition, they argue that our approach to design must change if we are to create new value through packaging innovation and move towards a future with less and less packaging. 鈥淭he future of packaging will extend the product鈥檚 definition, where, for example, the packaging itself becomes a part of the product, making choice and design of the related technologies and materials even more critical,鈥� they say.

Reimagining packaging R&D across the value chain through advanced design tools, smart packaging, and material innovation will step us forward. Coordinating investment with downstream stakeholders and expanding reuse and circular business models in a systemic way will foster the ecosystem change we need to see. The nature of this challenge makes a multi-stakeholder approach essential.

But implementing innovative solutions also requires infrastructure and community support. Consumer goods companies have historically left recycling responsibilities to the consumer, but society increasingly expects business to take an active role beyond the design and use of their packaging and to contribute to its collection, reuse, and recycling.

Fortunately, the authors note the business model for circularity is growing stronger as companies step up their innovation and commitment. 鈥淪hifting 20% of plastic packaging to a reuse model is in fact a more than US$10 billion business opportunity and represents untapped potential for improving the consumer experience and increasing brand loyalty.鈥�

The report also argues that collaboration is one of the critical and necessary components for circular packaging to gain traction. 鈥淐onsumer goods companies can join forces with partners across the value chain 鈥� such as packaging suppliers, retailers, end consumers, waste managers, and recyclers 鈥� to meaningfully advance goals and to unlock shared risk and shared reward.鈥�

Even though consumer goods leaders face a growing mountain of regulatory challenges and complexity, they conclude that it鈥檚 clear that progress is possible, saying, 鈥淭here is a path forward to a sustainable packaging future.鈥�

.

One of the key allies to keep the oceans healthy are whales. Whales are highly intelligent and social sea mammals. Some live in big families where there are brothers and sisters, grandparents that educate the juveniles, and parents that protect their young ones with the utmost care. All of them play an important role in maintaining the oceans鈥� resiliency.

important nutrients for phytoplankton, which are microscopic organisms doing the crucial job of absorbing CO2 and producing oxygen. In other words, where there are more whales, there is more phytoplankton and, therefore, more CO2 sequestration. During their lifetime of about 40 to 60 years and also at the end of their lives, whales help to absorb a large amount of CO2. Their bodies take up to to the seafloor when they die, where it gets locked up for a long time.

Just as marine life depends on healthy oceans, so do businesses, like tourism, fishery, maritime equipment production and repair, ports, supply chains, and the jobs generated by these industries that provide many individuals with an essential income. Even the whale-watching business grew to over per year. But that wasn鈥檛 always the case. Whales were heavily hunted, driving many whale species close to extinction.

With the Help of Technology, the Future of Our Big Allies Changed

In the 1960s, the songs of humpback whales . With recordings from the U.S. Navy hydrophone network and the later visualization of what鈥檚 recorded, the structured melodies of humpback whales were revealed. When some of these recordings became public, people started to understand that whales are very intelligent. Movements to protect the animals started, laying the foundation for some whale populations to be able to slowly recover over the years.

Today, whales face new human-made challenges. Among them are ship strikes, noise, and plastic pollution, as well as entanglements. Our marine friends in the oceans need more help.

Technology Can Help Change the Tide

Having accurate data available at the right time is crucial for businesses when it comes to eliminating waste, like plastics, from their products and processes. Abandoned or lost fishing gear, for example, is often made of plastics, staying in the oceans for hundreds of years and continuing to catch marine life. Entanglements are a big threat to marine animals, including large whales.

Consumers鈥� and businesses鈥� awareness of the overall plastic problem 鈥� 8 million tons that reach the ocean every year 鈥� has increased. A data-driven strategy helps businesses to understand the usage and implications of virgin plastic. Having information about other options at the right time in the process allows businesses to catch the problem at the source and or move to reuse schemes. Data insights with the help of technology, such as , allow businesses to make the right decisions and move to a circular economy, protecting biodiversity and reducing the of carbon emissions coming from producing products we consume and then waste.

Boosted by the increased emissions of human-made CO2 in the atmosphere, the warming climate heats the oceans, making them more acidic and putting the habitat and food sources of many marine lives, including whales, at risk.

With climate change at the top of the list of the most pressing challenges of our time, businesses are moving towards net-zero targets. They need the facts from high-quality data in every business transaction throughout their entire value chain to accurately set targets and make decisions. They need data they can trust. So, it鈥檚 time to move from averages to actuals. And it is time to redefine the 鈥淩鈥� in ERP (enterprise resource planning) to include sustainability data, starting with carbon. With the move towards transactional carbon accounting, businesses can reach net zero, so our generation can reach the target of limiting global warming to 1.5 degrees Celsius.

Insights from innovative and intelligent technologies help make the right decisions and take the right actions. Technology will continue to reinvent how we can keep nature as our ally and build a sustainable and livable planet. When we again think of whales, sensors could help to locate lost fishnets, so they can be collected and taken out of the waters. With innovation in technologies, ship traffic can, for example, become as to not disrupt the communication and orientation of whales. Artificial intelligence (AI) can help ships’ crews detect whales early, so the vessel鈥檚 speed can be reduced or rerouted to protect the animals and allow the whales to continue to help keep the oceans healthy and provide their climate action services to us.

needs collaboration. To set the required regulations with governments, innovative, smaller companies and NGOs can help find new ways to address climate action, protect biodiversity, and clean up what we left behind. Companies from every industry must work together to reinvent business models and processes with the help of technology to achieve net-zero and sustainable businesses.

Pioneers in Circular Solutions

The German giant recently relaunched its brand to reflect its strategic vision to become the leader in circular economy solutions, hence the circular logo with a triad of people, steel, and technology in the center. Three elements 鈥� circular mindset, pioneering partnerships, and sustainability solutions 鈥� are needed to bring the strategy to life.

鈥淥ur mission is to transform the industry, so we can produce steel without emitting CO2,鈥� says Gunnar Groebler, CEO and chairman of the Executive Board of Salzgitter AG. 鈥淐urrently, about two tons of CO2 are emitted per ton of steel produced in the traditional way. We aim to replace coal with hydrogen, reducing emissions to virtually zero. We鈥檒l be delivering green steel as of 2025.鈥�

Steel is the world’s most important engineering and construction material. It is used in every aspect of our lives, from cars and cargo ships to surgical scalpels and spoons. It鈥檚 also one of the most sustainable materials because it can be recycled endlessly.

Salzgitter AG is in the process of redefining its business model, moving from the linear approach to a circular one that reduces, reuses, and recycles energy and materials 鈥� and, most importantly, continuously rethinks the process.

True circularity requires joint product lifecycle planning and holistic processes in full collaboration with partners and suppliers across the entire value chain. 鈥淲e鈥檝e been in a classic relationship with our customers, which ends when the product is handed over. We鈥檙e working with them to take back the products after use, so we can reuse them or reintroduce the material into the production cycle,鈥� Groebler explains.

Partnerships across the Value Chain

The company and its subsidiaries have been producing steel for over 150 years. Peiner Tr盲ger, for example, is already melting around 1 million tons of crude steel from steel scrap in one of its electric steelworks in an environmentally friendly and energy-efficient manner. Its high-quality products are a clear testimony that steel can be recycled without any loss of quality.

鈥淚 worked in the utilities industry for over 20 years, so I’ve witnessed the move from lignite, or soft coal, to offshore wind 鈥� a massive transformation. Seeing what was possible within a decade or so is highly motivating for me,鈥� says Groebler. 鈥淚 realize that by driving this transformation at Salzgitter AG, we are ultimately moving the entire industry to a more sustainable way of production.鈥�

He is amazed at how many companies are redefining their role from being customers to partners.

鈥淲e鈥檙e all transforming together,鈥� he explains. 鈥淥ur customers need to fulfill their own targets. Take the automotive industry: not only do they have to decarbonize the vehicle itself, but they also decarbonize its use throughout its lifetime. Considering that steel is a prominent part of the vehicle, our automotive partners expect us to decarbonize steel.鈥�

Groebler thinks a lot about the expectations of society. Today, Salzgitter AG emits roughly 1% of the German CO2 footprint, about 8 million tons per year. The good thing is that most of it is generated in one spot, making it easier to manage reduction efforts, versus the effort that goes into reducing emissions generated by combustion engines in cars, which are all over the place. With the strategy and funding already in place, Groebler is confident Salzgitter AG can reach net zero in the next 10 years.

Sustainability Tools and Solutions

Groebler is also very mindful of how environmental, social, and governance (ESG) factors are impacting brand reputation. Sustainable business practices play a major role in reducing greenhouse gas emissions and conserving resources, and companies that actively pursue them benefit from increased trust and loyalty among customers and consumers, creating opportunities for improved market share.

鈥淚f you consider the way ESG is developing, we need to look at environmental data in the same way we look at financial data. We鈥檙e experts in steel production, but not in handling data,鈥� says Groebler. 鈥淭his is where 51风流comes into play. 51风流helps us really consolidate the in an easy way.鈥�

Salzgitter Group is achieving greater ESG transparency with the data analytics and business logic functionality in . Along with and , the company uses to gain deeper insight into its environmental data and maintain safe and sustainable operations.

There have been some highly visible changes since Salzgitter Group embarked on its journey to circularity. Six massive wind power turbines, each 150 meters high, have reshaped the skyline over the steelworks. A lot of development is happening behind the scenes. Hydrogen production will not take place exclusively on-site, so the biggest challenge is sourcing it from other locations and creating the necessary infrastructure. During the transitional phase, the company will use a mixture of natural gas and hydrogen before switching exclusively to hydrogen.

Groebler is highly optimistic: 鈥淲e鈥檙e seeing a sweeping cultural change within the Salzgitter Group. Employees are engaging proactively, from an employee cooperative to finance a photovoltaic system to our local tree-planting campaign 鈥� our sustainable business approach has a positive, far-reaching impact everywhere in our organization.鈥�

Together with customers and suppliers, technology partners like SAP, and its people, Salzgitter AG is clearly leading the way to a circular future.

For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit聽.

If you are using or producing plastic packaging, it is important to know whether your company is affected by the legislation and how 51风流can help.

What Are Plastic Packaging Taxes?

Plastic packaging taxes are taxes that are imposed on companies that produce or import plastic packaging. The aim of plastic packaging taxes is to encourage companies to reduce their use of plastic packaging and increase the use of more sustainable alternatives. Two countries, the UK and Spain, have already introduced plastic packaging taxes and others, such as Italy and Germany, have announced their plans to follow.

Why Are Plastic Packaging Taxes Becoming More Popular?

In Europe, one reason for the growing popularity of plastic packaging taxes is the introduction of a European Plastic Packaging Levy in 2021. This levy requires member states to pay 鈧�0.80 for each kilogram of plastic packaging waste that is not recycled in their country. Many countries are now considering passing on these costs to the industry through national plastic packaging taxes.

Globally, there are also events that indicate that more regulation is to be expected. For example, in March 2022, the United Nations Environment Assembly has agreed to launch negotiations on a legally binding global agreement to combat plastic pollution. For countries to comply with the legally binding provisions and obligations of this UN treaty, they will most likely strengthen their national laws regarding plastics.

What Makes the Administration of Plastic Packaging Taxes Complicated?

The details of the plastic packaging tax legislation vary from country to country, such as:

• Which packaging types and levels are included in the tax?
• What is the taxable event, like imports, production, or distribution?
• What are the reporting obligations? What forms need to be filled and how often?
• What are the rules for recycled plastic content in packaging?
• Are there any exemptions for certain types of packaging, such as packaging used for human medicine or tertiary packaging?

The more countries introduce plastic packaging taxes, the more difficult it will be for global companies to keep track and be compliant. This is where comes in.

How Does 51风流Support Customers in Plastic Packaging Tax Legislation Compliance?

51风流Responsible Design and Production is a cloud solution specifically designed to help 51风流customers holistically manage packaging and regulatory risk across global markets and support the transition to a sustainable packaging portfolio.

Some capabilities of 51风流Responsible Design and Production are:

• 51风流Responsible Design and Production is a cloud solution that is subscribed to via (51风流BTP).
• 51风流Responsible Design and Production has a unified data model. Packaging data, material master data, and transactional data can be replicated via a public API provided by the solution. Alternatively, or additionally, an Excel-upload is possible for all data objects.
• Plastic packaging tax reports and the underlying calculation logic is provided as content-as-a-service in 51风流Responsible Design and Production. This means that reporting can be largely automated, in line with the latest regulations.
• Reports can be configured by organizational data filters; other configurations are not necessary as the calculation logic is strictly coded according to the regulatory requirements.
• Additional analysis capabilities are provided in 51风流Responsible Design and Production for analyzing the packaging portfolio and the resulting fees and taxes.
• Calculated fees can be replicated back into 51风流ERP Central Component or 51风流S/4HANA as condition records, such as for use in invoicing.

The 51风流solution can provide a number of powerful benefits for companies. By creating a single source of truth for packaging data, 51风流Responsible Design and Production helps eliminate repetitive, manual pre-reporting processes, such as data collection and cleansing. Furthermore, it can accurately calculate fees and taxes in line with the latest regulations, helping companies to reduce regulatory exposure. In addition to reporting to regulatory bodies, it can also enable reporting on various levels of granularity to non-governmental organizations, customers, and other brand-related communications. Finally, the solution can enable companies to analyze and keep track of their entire packaging portfolio, allowing them to track improvements and meet their sustainability commitments.

For more information and to learn how could work in your system environment, please contact circulareconomy@sap.com.

Katharina Schweitzer is a business process consultant at SAP.

Negotiations should conclude by the end of 2024. Now, over a year into the negotiation period, how are businesses preparing for the new legislation?

What Is the Plastic Problem?

The 鈥溾�� report on marine litter produced in 2021 by the United Nations Environment Program (UNEP) was unequivocal on the issue. Since the 1950s, we have generated around 6.9 billion tons of plastic and are adding to this at a rate of over 400 million tons per year.

Of all the plastic produced to date, only an estimated 14% has been incinerated and only 10% has been recycled. The remaining 76% has gone to landfills or ended up in the environment. Waste management systems can鈥檛 cope, which has led to the widespread contamination of our waterways, seas, and oceans by an estimated 8 million tons of plastic every year.

Plastic is a cocktail of fossil fuels and chemicals that breaks down slowly into microplastics, damaging marine environments from the shore to the deepest parts of the ocean. Apart from damaging marine life, they are a threat to people as they make their way into our food chain and drinking water.

Two countries, Spain and the UK, have already taken their first steps with the introduction of plastic taxes on non-recyclable packaging and packaging using less than 30% recycled content respectively. That said, at the time the report was written, there was no consistent policy framework to ensure global action to combat plastic pollution.

SAP鈥檚 Role

The 51风流Circular Economy Solutions team, led by Stephen Jamieson, began work on this issue five years ago. The team is an active member of the , convened by the Ellen MacArthur Foundation and WWF, alongside some of the world鈥檚 biggest businesses and financial institutions.

SAP鈥檚 response to the resolution was to create a digital solution that would enable customers to apply the framework to their business as well as provide feedback to policymakers on what is and isn鈥檛 working.

The Biggest Business Challenge to Eliminating Plastic Pollution

鈥淭he biggest challenge is how to decouple virgin plastic production from growth. We need to break that connection, but, to date, nobody has the solution,鈥� Jamieson says. 鈥淪AP鈥檚 strategy is data-driven. By helping our clients understand the implications of using virgin plastic and having information about alternative options at their fingertips, businesses can find a pathway to more sustainable growth.鈥�

A Data-Driven Solution

With customers at all levels of the value chain, 51风流set out to help its clients solve this problem using technology. Initial discussions with 30 or so organizations helped 51风流understand the complexities involved and led us to identify the need for a plastics data resource. 51风流built the 51风流Responsible Design and Production solution to help deliver the information companies require to identify strategies and solutions for eliminating plastics or moving to other solutions such as reuse schemes.

Data transparency is key to begin the process of decoupling growth from virgin plastics and to facilitate a transition to a more circular economy. The first step involves measurement, in effect creating a digital twin of the plastic item a company produces to allow them to fully understand the types and amounts of components involved in the product itself. Then we do the same for the primary, secondary, and tertiary packaging.

Once the measurement phase is complete, the software can be used to apply EPR (extended producer responsibility) policies and local plastic taxes to the different components. With this data applied, businesses can compare materials like-for-like by connecting with digital material libraries to find the best-fit alternatives.

Once a new solution has been identified, the by 51风流solution comes into play. With its blockchain-based approach, the recycled content of products can be verifiable, which helps prevent fraud and provide assurance to customers.

Is There an Appetite to Change Business Practices around Plastic?

The desire to find solutions has evolved dramatically in the last five years. The level of seniority of the people driving the discussions and their determination is palpable. Rather than seeing this issue as an unnecessary cost, business leaders are genuinely engaged in finding solutions for several reasons.

Firstly, they recognize that the plastic problem is inextricably linked to the climate crisis and biodiversity loss and understand that change is necessary if we鈥檙e to stay within planetary boundaries.

Secondly, there is a feeling that solving the plastic problem will open the door to the next phase of growth, profitability, and social equity. This is creating a high level of competition between key players in the market.

Thirdly, companies are concerned with their reputation. They want to be on the right side of history and retain the loyalty and trust of their customers. In addition, there is now an acceptance 鈥� which didn鈥檛 exist previously 鈥� that there is no real downside to pursuing a solution.

These drivers coupled with data-driven technology means businesses will be ready, some even in an advanced position, when the UN Treaty on Plastic Pollution comes into force.

For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit聽.

Heather Davies is a sustainability brand journalist.

Speaking on the opening day of the trade show, Saueressig said, 鈥淓xceptions are now the rule. Today’s globally networked supply chains are especially prone to disruptions 鈥� with far-reaching consequences for the manufacturing industry. Flexibility and agility are needed to react quickly to changes.鈥� Adding her impressions of SAP鈥檚 presence at the event, White said, 鈥淚t鈥檚 an amazing collection of both 51风流technologies and our broad partner ecosystem, and it is us working with our ecosystem that鈥檚 solving our customers鈥� challenges.鈥�

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51风流Solutions in Action

There was certainly plenty for visitors to take in at SAP鈥檚 booth, from showcases and guided tours to live sessions and partner stands.

51风流is striving to help shape digital transformation in manufacturing. And one of the most pressing questions for that industry today is how to make production and supply chain processes resilient and sustainable.

To answer that question, 51风流gave visitors ample opportunities to try out 51风流solutions and experience them live in action in a 鈥渄emonstration factory鈥� it had at the trade show. The show booth 鈥渇actory鈥� was a partial sample of SAP鈥檚 recently opened Industry 4.0 Pop-Up Factory innovation center at the company鈥檚 headquarters in Walldorf, Germany. Attendees were able to view the rest of the factory remotely from SAP鈥檚 booth or through virtual reality glasses in its 鈥淚ndustrial Metaverse鈥� showcase.

On Display: How 51风流Solutions Manage Supply Chains and Manufacturing

51风流also demonstrated systems that support production operators in a part of multi-stage production in which a component is assembled for the end product. In a scenario focusing on in-process quality control, 51风流showed how operators receive precise visual instructions during the assembly of an electronic control head, guiding them through the process and reducing errors. It also explored the value of embedded artificial intelligence (AI) in quality assurance, showing how image recognition technology can be used to check how likely it is that parts have been assembled correctly and whether they have any defects. A highlight here is a kind of digital birth record, which can be thought of as a finely structured documentation of the production process. All relevant data from machines, as well as input from users, is recorded there and assigned to an individual product.

Also in the spotlight were applications for digital twin solutions, not just for virtual models and real-time simulations but also for human-machine interaction. Visitors were able to learn more about this from the example of autonomous mobile robots that independently pick up parts from a warehouse and 鈥� rather than placing them on a conventional conveyor belt 鈥� take them straight to a modular station.

51风流also showcased an augmented reality solution for production operators. Here, personnel wearing smart glasses receive instructions and feedback on whether they have carried out a work step correctly directly in their field of vision.

Digitally Mapping and Managing the Entire Production Process

Hannover Messe attendees could also try their hand at remotely controlling and monitoring the Industry 4.0 Pop-Up Factory in Walldorf, viewing a live, end-to-end production line for mixing and filling liquids as used by the process industry in the manufacturing of chemicals, pharmaceuticals, and consumer goods.

The demonstration showed that one central control room is all that is required to control and monitor production across locations. 51风流calls this control room a 鈥減roduction control center.鈥� Commenting on this live factory session, Matthias Deindl, head of SAP鈥檚 Industry 4.0 Center EMEA & India, said, 鈥淭his scenario shows companies how 51风流can help them have a full overview of everything that is happening on the factory floor 鈥� not just planning, but managing the entire production process for batch manufacturing.鈥� In the future, it might even be possible to create a purely digital version of the control room in the metaverse. Companies could then design and operate it exactly as they wanted. And they would no longer need to house it in a brick-and-mortar space.

In the scenario shown in Hannover, the production line is connected to 51风流Digital Manufacturing. All the information needed to fulfill the production order 鈥� including the customer鈥檚 specifications 鈥� is sent seamlessly to the machine. The process is paperless and can incorporate customer requirements without manual intervention. Another function of the production control center is to monitor the production line and key performance indicators, such as process efficiency, scrap rates, and good parts produced, as well as the current condition of the machines and equipment.

Cloud Solutions Enable Vertical and Horizontal Integration

One of the highlights at SAP鈥檚 booth was the electric CNC injection molding machine that let visitors track the production of their own customized cup 鈥� from top floor to shop floor in the production hall. This pop-up production station, staged in cooperation with 51风流partners Fanuc and Syntax, demonstrated how 51风流Digital Manufacturing can integrate a highly automated machine and control manufacturing.

Starting with order planning, visitors chose from various configuration options on a monitor. They could select a color or color combination for their cup and specify which logo it should have. The 51风流software then dispatched the order to the machine electronically and production of the cup began using recycled and recyclable plastic. Visitors could take the cups they made home with them.

While visitors were creating their cups, sensors were capturing a range of key information about the machine鈥檚 condition and how many good and defective parts had come off the line. This shows how in a real-life setting, the seamless flow of information also works in reverse, meaning from the machine level back to the office level. Data like this can be analyzed in 51风流Analytics Cloud, giving customers valuable insights to help them optimize the production process.

Resilient, Efficient, Sustainable 鈥� and Profitable

Visitors to SAP鈥檚 booth could experience the full product life cycle 鈥� from design and planning, manufacturing, logistics, and installation to operations and maintenance. They learned how the processes at each of these stages can be optimized by, for example, embedding AI to integrate them horizontally.

Vertical integration can also connect all levels inside the company. Linking manufacturing and business processes in this way eliminates data and knowledge silos. 鈥淗ere at Hannover Messe, we鈥檝e brought everything together under one roof to demonstrate realistic end-to-end scenarios,鈥� said Ralf Lehmann, Solutions Management Digital Manufacturing & Industry 4.0 at SAP.

Businesses want to ensure that their manufacturing and logistics operations are efficient, cost-effective, and reliable. Yet they must also meet profit and sustainability targets. 鈥淢anufacturers are facing two major challenges right now. One is the ongoing disruption to supply chains. The other is sustainability, which has become a top priority for CEOs. If you consider that only 7% of global economic output today is circular, then the opportunities are huge,鈥� says Saueressig.

At its booth, 51风流showed how it is one of the world鈥檚 leaders not only in enterprise resource planning (ERP) but also in digital supply chain. Industry 4.0 can transform business processes from manufacturing through to supply chain. As an ecosystem that enables companies to connect, 51风流Business Network also helps improve transparency. These capabilities can be used in a circular economy to foster sustainability and capture carbon emissions data. As White points out, 鈥淥ne of the most important things we see here is the focus on sustainability. Creating a true network around that is how we鈥檙e going to change the game.鈥�

Building on the network theme, 51风流partners had booths nearby showing Catena-X and , the latest initiative to emerge from an alliance between industry and the German government. Here, too, 51风流will play a leading role in driving digital transformation in manufacturing supply chains. Like Catena-X, Manufacturing-X will be an open and collaborative data ecosystem. Shared standards will enable data to be exchanged worldwide in compliance with European practices and data protection laws.

The global waste problem is growing, with of the 100 billion tons of materials we consume annually making it back into circulation. Plastic waste is one catastrophic example, with the equivalent of one garbage truck of plastic getting in our oceans every minute, on top of the that have already accumulated. Once produced, plastic can endure for hundreds of years, breaking down into what are known as microplastics and slowly poisoning natural habitats and animals, which directly impact the well-being and economic livelihoods of millions of people. Despite this stark reality, global demand for plastic continues to rise, with production expected to by 2050.

This is a global crisis requiring immediate and sustained action. To tackle the plastic waste problem, we must commit to a 聽model, where we eliminate waste and pollution, recirculate resources, and regenerate natural systems. The circular economy changes the way we source materials and make and use products.

What鈥檚 more, new regulations are putting pressure on global business to adopt a circular economy model. In March of last year, world leaders at the United Nations Environment Assembly to negotiate an international, legally binding instrument on plastic pollution by 2024. In the European Union (EU), the circular economy is a of the European Green Deal, a set of policy initiatives signed in 2020 with the aim of making the EU carbon neutral by 2050 and setting new requirements to make products more reusable and energy and resource efficient.

With an estimated of a product determined at the design stage, a key element of the circular economy is in the design of products and their packaging. Circular design at its most strategic level is a huge lever for the overall reduction of the environmental and climate footprint of products, as it considers all aspects of product development, including materials used and the manufacturing process. Most significantly, circular design considers what becomes of the product or its component parts once it has reached the end of its usefulness.

As Sarah Gillespie, customer success manager for Circular Economy at SAP, says, 鈥淒esign is an absolutely critical stage of product development where we can have an enormous impact for good. By following circular principles at the design stage, we can design out waste from the beginning instead of simply mitigating it.鈥� Circular design can also help to address the growing climate issue, since an estimated are linked to how we manage material flows for products.

Circular design helps organizations to review their processes and take steps towards using less raw materials and with more efficiency. But one of the biggest challenges for business to implement circular design is getting accurate data, which is crucial for assessing material flows and resource productivity. For example, companies need data to understand whether an organic material they are using in their product was regeneratively grown. Technology will play a fundamental role in enabling businesses to access the data that they need to make optimal material choices, create better supply chain transparency, and comply with government requirements. 51风流has both the technology and the responsibility to help global enterprises use the power of data, networks, and partnerships to achieve their targets and develop .

The new open51风流course,聽Designing a Circular Economy, offers customers, partners, and anyone interested in the topic a deeper understanding of how to apply circular design principles to their own business. SAP鈥檚 last course on this topic the circular economy and how to implement circular business practices. This new course will focus on how to create the products we need in a circular way, using a systems approach that considers how the constituent parts work together and evolve over time. In this course, you will learn about circular design, what role design plays in products and packaging, what is meant by regenerative design, what nature can teach us about product design, and how technology can help.

The course features many external speakers, including experts in circular design, packaging, and biomimicry to name just a few, such as , circular design programme lead at Ellen MacArthur Foundation, , cofounder of BioimicryNL, and , cofounder of PlasticFree.com.

Anyone can register for this free, on-demand, four-week course, which begins May 23, 2023, and involves just a few hours of coursework per week. During the course you can earn points, a record of achievement, and a digital badge that you can share on social media.

We encourage you to sign up and share it with your networks. The global waste problem is a humanitarian crisis that we must confront together. Arming ourselves with the knowledge to develop urgently needed solutions is a wonderful place to start.

The European Union Parliament on the sales of new gasoline- and diesel-powered vehicles in the 27-country bloc by 2035, effectively accelerating the shift to electric cars and other zero-emissions vehicles. As an intermediate step, all cars sold as of 2030 will need to achieve a 50% reduction in carbon emissions compared to 2021 levels.

SAP鈥檚 Take

鈥淭his is the decision from the European side,鈥� said Hagen Heubach, global vice president of the Automotive Industry Business Unit at SAP. Heubach provided a global context for the EU law that will accelerate the shift to electric vehicles (EVs) within the bloc. He said that it is foreseeable that some regions, such as India and Africa, will continue to rely on classical combustion, hybrid and hydrogen-powered vehicles for a much longer time.

Europe is home to many of the world鈥檚 biggest automakers, generating seven percent of the EU鈥檚 GDP; however, some members of the global automotive community have for the EU鈥檚 decision, which will reshape the industry.

Heubach noted, 鈥淭he strategy of the EU is not per default shared across the globe.鈥�

Key Priorities to Keep Europe Moving

For the EU to achieve its ambitious goals by 2035, Heubach said there are three areas of concern that must be prioritized for a successful transition: charging infrastructure, automotive circularity and improved options for personal mobility.

鈥淐harging infrastructure is key,鈥� said Heubach, who called for better communication between charging networks for cross-border travel. 鈥淚t must be simple. It must be easy to go across the border with a seamless charging experience that is as efficient as it was during the combustion engine era.鈥�

It took decades to build the infrastructure to support the network of gasoline stations that enables travelers to move freely throughout the EU. In comparison, the infrastructure for charging is relatively underdeveloped. Throughout Europe, including Turkey, there are . An by McKinsey concluded that 3.4 million charging stations will be needed in the EU by 2030. That would require installing 6,000 charging stations each week until 2030, starting 2021.

Heubach also emphasized the importance of the second key priority: , a manufacturing practice that maximizes materials efficiency through sustainable sourcing and reuse. 鈥淗ow do we set up the next generation of the EU market for a more sustainable mobility ecosystem? We cannot afford the same situation as we have with the combustion engine, where you only use seven to nine percent of the car at the end of its lifetime and everything else is scrapped. This is not possible for EVs,鈥� he said, specifying the need to reuse battery components, lithium, raw materials, plastics, and chips from EVs.

The transition to circularity in the automotive industry 鈥� a collaborative undertaking involving the public sector, industry, and consumers 鈥� faces a number of , including lack of expertise, metrics, logistics, consumer tastes, and innovation. In Heubach鈥檚 view, however, time is of the essence. 鈥淭his needs to be set up now because, if we don鈥檛 set it up now, we will be in big trouble 鈥� maybe in ten years when the first waves of electric cars are at the end of their lifetime.鈥�

The third key priority will require a new definition of personal mobility that includes arrangements for car sharing, mobility budgets, and micro-mobility in cities. 鈥淭he shift to electromobility is also connected to a shift in how we experience personal mobility. Electromobility does not always mean everyone has to have their own car,鈥� said Heubach. 鈥淭his definitely will also be something that needs to be solved in the EU over the next years.鈥�

Contact:
Ilaina Jonas, Senior Director of Global Public Relations, SAP
+1 (646) 923-2834, ilaina.jonas@sap.com

Despite the pressures, this moment can become the most significant growth opportunity of our time. Replacing traditional take-make-waste business models with a circular approach can bring industries in line with our planet鈥檚 boundaries. But more importantly, it tackles environmental and social injustices that often impact underserved communities and creates more jobs that are better paying.

For the world鈥檚 leader in battery recycling and lead production, the circular economy is an inseparable part of its business. By recovering and repurposing more than 99% of the metal of 120 million batteries consumed by companies and consumers annually, the company can minimize its contribution to landfills and satisfy consumer demand for sustainable energy.

Defining Leadership in the Circular Economy

Given the gravity of its sustainability initiative, Ecobat needed to modernize its mission-critical systems without risk. Functional and geographical silos led to little cross-team collaboration and fragmented electronic and paper-based processes, documentation, and legacy record-keeping systems 鈥� resulting in unnecessary risk exposure, fractured data, and a bloated overhead structure.

Ecobat鈥檚 leadership team knew that digitalization and intelligent technologies are critical to lead in the responsible collection, recycling, production, and distribution of resources essential to modern life. So, the company decided to implement , a cloud enterprise resource planning (ERP) solution for every business need. By taking this path, the company gained the reliability, agility, and predictability necessary to navigate the risks and opportunities of moving into a new business model centered around the circular economy.

51风流S/4HANA Cloud presented an opportunity to consolidate the unique legacy ERP systems and data of its 25 partner locations worldwide. Using the solution, Ecobat carefully mapped and moved all individual systems into the cloud ERP while navigating differences between the old and new ERP systems and adopting new standardized processes. The company also discontinued its on-premise data center, decreasing its energy consumption footprint across a global reach.

Moving an on-premise landscape of multiple ERP systems to a single instance of 51风流S/4HANA Cloud opened the door to a new digital era for Ecobat. Every area of the business and its partners can access extensive and timely information and collaborate and communicate effectively. In return, the entire company can achieve goals key to their long-term survival and expansion, including:

• Drive top-line growth by enabling innovative business models on a global scale
• Achieve bottom-line growth with industry-proven processes
• Deliver green-line growth by building sustainability directly into the business
• Grow with the confidence needed to help the business move to wherever it needs to go

For example, Ecobat is innovating new products, services, and processes with a laser focus on the circular economy 鈥� from costs and facilities to the responsible collection, recycling, production, and distribution of resources. Its R&D and engineering teams have the sustainability data and visibility to look holistically across the organization, drill into the finer details of a challenge or opportunity, and streamline and accelerate the processing of used batteries into raw materials. In addition, empowering each partner location to collect and recycle batteries within its region helps decrease reliance on mining new ore, reduce transportation, and streamline the supply chain.

Thinking, Looking, and Acting More Sustainably 鈥� Globally

With battery recycling at the heart of its business model, Ecobat takes pride in its leadership in the circular economy. And that sense of accountability and responsibility is clearly reflected in how the company invests in its people and business operations.

This observation certainly applies to Ecobat鈥檚 decision to implement 51风流S/4HANA Cloud as part of RISE with SAP. While keeping millions of lead-acid batteries from going to local landfills, the company is confidently scaling and growing its operations worldwide to continue contributing to a more sustainable planet for years to come.

Learn more about the competitive edge Ecobat gained from its implementation of 51风流S/4HANA Cloud as part of RISE with SAP. Read the IDC case study, “.”

Benno Eberle is solution marketing lead for 51风流S/4HANA Cloud, private edition, at SAP.

When combined with partner expertise and innovation, that reach across business domains and processes becomes a powerful tool for advancing key corporate agendas, including environmental, social, and governance (ESG) goals. It enables our customers to secure their business, uncover new opportunities, mitigate risks, and get ahead of operational turbulence while dismantling barriers that stand in the way of a healthier planet and more equitable society.

Whether fueled by environmental laws or consumer demand, increasing organizational focus on ESG-related goals is opening opportunities for partners 鈥� key junctures where their innovations can contribute. Implementation, content, and technology experts can take advantage of sustainability trends to help customers balance increased competitiveness with positive impacts under the new ESG principles.

A Vital Platform for Meaningful Change

Over the last few years,聽聽(51风流BTP) has empowered 51风流partners to innovate, integrate, and extend solutions across lines of business and industries in the cloud. Now, they can turn their attention, knowledge, and ingenuity toward questions about sustainability, helping customers understand where to start, where to end up, and how to get there quickly.

51风流partners can rapidly innovate on 51风流BTP, thanks to the collaboration-driven nature of the partner ecosystem and access to enablement and support powered by 51风流around ESG practices. In return, they can be well-equipped to deliver on expectations for revenue generation, efficiency improvement, and risk mitigation through emissions and waste reduction, circular business models, and sustainable and responsible leadership.

Take, for example, the digitalization of supply chains. Sustainability is now being infused into the business function’s DNA as companies pay more attention to lowering their carbon footprint, minimizing waste, and sourcing materials responsibly. But the greatest success comes from ESG initiatives combined with 鈥� not competing against 鈥� objectives for increasing system resilience, expanding logistics capacity, or protecting operations from disruptions that threaten customer fulfillment.

With climate change ranking as high as economic instability among top concerns for companies and their customers, more and more 51风流partners 鈥� such as聽听补苍诲听聽鈥� have come to understand that sustainability cannot continue to be placed on the back burner. Instead, they help customers see how ESG principles can help deliver goods and services sustainably, improve operational efficiency, reduce business costs, and overcome risks to help ensure supply chain resilience around the globe.

ESG Innovation Materializes through Strong Collaboration

Software such as the聽聽solution, which is built on 51风流BTP, demonstrates the strength of the collaboration between 51风流partners and customers when bringing ESG innovation to market. Our partners can create a real-time, data-driven environment that empowers organizations to comply with reporting and auditability requirements imposed by national and regional governments, including the International Sustainability Standards Board and the U.S. Securities and Exchange Commission.

As a component of a unified platform connecting data and business processes, 51风流Sustainability Control Tower enables partners to help customers combine accurate, auditable, and reliable financial and nonfinancial data. This approach provides the insights and transparency needed to make specific changes in how businesses operate. Additionally, since 51风流software touches most of the world’s day-to-day commerce, the solution helps unlock the inherent power of existing data to record, report, and act on business and ESG goals.

But our partners’ use of 51风流Sustainability Control Tower during customer engagements doesn鈥檛 stop there. They can build on the solution鈥檚 predefined integration capabilities with live 51风流systems, such as , to instantly upgrade audit-ready data and connect HR, finance, and supply chain organizational structures to crucial sustainability metrics. This work brings the sustainability data layer to life, transporting new sustainability practices into their critical business processes and functions with actual data.

Furthermore, the presence of prebuilt content libraries in the solution allows partners to accelerate the realization of their customers’ sustainability visions. They can pinpoint which processes need to change to reduce emissions and where operations can benefit from being more circular and automated.

The Next Phase of Data Intelligence Transformation

We are reaching a fork in the road where businesses will have two key choices in their digital transformation journey. They can either invest in ESG efforts to gain the associated benefits of circularity, efficiency, and resilience or stray from the sustainability and process integrity that environmentally discerning customers demand.

This emerging reality is quickly pushing the boundaries of what it means to be competitive. And for most organizations, becoming experts in capturing and reporting on the correct data and connecting the necessary processes can be daunting without consistent guidance and support.

51风流customers working with our partners can leverage the latest innovations in the field of sustainability as part of their data intelligence transformation powered by 51风流BTP. And more importantly, they can realize new business opportunities and act as a positive force for sustainable business practices.

Learn more about , ,听补苍诲听. If you’re interested in software partnership opportunities with SAP, check out the聽. And if you’re already a partner, explore these resources available on the 51风流Partner Portal site:

• 鈥� webinar
• 鈥� open51风流course

Gabriele Goertz is vice president and global head of the Sustainability Ecosystem at SAP.

The time has come to deliver on the ambitious commitments and public goals that many companies have set to tackle climate change, safeguard the environment, protect human rights, and fight inequality. The 鈥渨hat鈥� we need to do has never been clearer. The focus is now on 鈥渉ow鈥� companies operationalize sustainability and turn ambition into results at the scale that aligns with the scope of their influence and global issues. In of sustainability leaders, experts around the world agree that action and impact are two of the defining features in this new area of leadership and rising expectations.

GlobeScan and 51风流have developed 鈥� a new platform featuring real-world examples of how leading companies are operationalizing sustainability at scale. This initiative goes beyond the high-level narratives and digs into how leading companies are tackling and implementing solutions to specific sustainability challenges and opportunities. Drawing on the experience of some of the world鈥檚 most sustainable and innovative companies, these case examples share valuable insights and learnings to help advance the work of sustainability and business leaders at any point in their sustainability journey.

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Practical, Powerful Insights for Key Questions

The initiatives featured on Sustainable Business Now focus on timely challenges and opportunities that are top-of-mind for chief sustainability officers and business leaders across sectors and geographies. For many companies, these represent some of the most material issues and priorities for influential stakeholders, from investors and customers to governments and civil society. Our conversations with sustainable business leaders get at the heart of what it takes to embed sustainability into business strategy and operations, thereby integrating sustainability across a company鈥檚 value chain.

Key topics Sustainable Business Now explores include:

• How to decarbonize complex supply chains and tackle hard-to-transition sectors
• How to tackle the waste crisis and move towards a circular economy
• How to integrate sustainability into finance and decision-making
• How to advance inclusion and tackle inequality across the value chain
• How to promote inclusive local development by improving the impact and scale of social programs

Learnings from Leading Companies

Sustainable Business Now launches with a diverse set of case examples from some of the most innovative and sustainable companies around the world:

• Anglo American shares insights on how to improve the impact and scale of social programs: Jon Samuel, group head of Responsible Business Partnerships, and Mzila Mthenjane, Exxaro鈥檚 executive head, Stakeholder Affairs, discuss how the company and its partners have designed and adapted their Collaborative Regional Development (CRD) program to address the most compelling social needs and opportunities in each region. 鈥淲e are pleased to be one of the first case studies featured on Sustainable Business Now,” says Samuel. “The challenges societies face in meeting the SDGs are so large and complex that only by working across sectors and organizations can we achieve the results we need. While CRD isn鈥檛 a silver bullet, our evidence shows that the approach has real potential to improve the impact of the private sector.鈥�
• Natura shares advice on how to integrate sustainability into finance and decision-making: Natura developed its Integrated Profit & Loss (IP&L) model to translate the company鈥檚 environmental and social impacts into financial terms. Natura &Co Latin America鈥檚 Sustainability Director Denise Hills and Chief Financial Officer Silvia Vilas Boas explain how Natura鈥檚 IP&L model creates value across its businesses. 鈥淲e believe that IP&L is a new breakthrough that will inform strategic thinking and decision-making across organizations. The more companies that take ownership of this methodology, the closer we get to a society that generates greater shared value for all. By sharing the framework and our learnings on Sustainable Business Now, we hope more companies will adopt this important approach,” says Hills.
• 脴谤蝉迟别诲 offers insight into how to decarbonize your supply chain: In 2021, 脴谤蝉迟别诲 became the first energy company to set a science-based goal to achieve net-zero emissions across its entire value chain by 2040. Senior Director and Head of Global Sustainability Ida Krabek and Chief Procurement Officer Virginie Van de Cotte share insights on the journey so far, the challenges, and their advice to others on how to decarbonize their supply chains. 鈥淎cknowledge that this is challenging and it’s challenging for everyone. That’s why we’ve chosen to take this very collaborative approach and to create these ripple effects,” says Krabek. “What is helpful in the whole sustainability space is that we collaborate, that we share, that we inspire, that we set expectations, and we follow up.鈥�
• Unilever shares guidance on how to advance inclusion and tackle inequality across your value chain: Central to Unilever鈥檚 Compass business and sustainability strategy is an ambitious commitment to ensure that everyone who directly provides goods and services to Unilever will earn at least a living wage or income by 2030. Unilever鈥檚 Chief Sustainability Officer Rebecca Marmot explains why the business decided to make such a bold move and the steps it has taken to navigate this complex undertaking: 鈥淟iving wages are an effective and measurable way to tackle inequality. A unified approach can unlock progress across the sustainable development goals and add US$4.56 trillion to global GDP every year.”

We are having many more conversations with others and plan to add more cases on an ongoing basis.

We hope you are as excited as we are about Sustainable Business Now and we look forward to working with the community and hearing your feedback. If you, your company, or someone you know may be interested in sharing insights from your work and contributing to the dialogue, please reach out to the team to learn more: contact@sustainablebusinessnow.org.

For more information on how 51风流helps companies record, report, and act on their sustainability goals, visit .

Chris Coulter is CEO of GlobeScan.
Michael McComb is global head of Sustainability Communications at SAP.

Despite its usefulness and in alignment with the aims of organizations such as the and the , governments, businesses, and civil society聽are cooperating on ways to curb the waste and pollution it causes.

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A First Step聽聽聽聽

As part of international efforts to fight climate change, for example, the European Union (EU) launched the , an action plan for transforming the economy from a linear one to a circular one that designs out waste and pollution. One key measure in tackling plastic pollution is the plastics tax applied to single-use plastic, plastic packaging, and microplastics.

Rather than a regional tax, however, the EU has mandated a national contribution from each of the 27 member states based on the amount of non-recycled plastic packaging waste it generates. The tax design varies greatly state by state, with some focusing on packaging in general and others on single use only. Some have different taxes for domestic or foreign-sourced plastic products. In short, member states are allowed to implement the tax in their own way, with their own rules and regulations.

The result is a an extremely fragmented landscape. Dealing with it requires the right strategy, tools, and expertise, especially in the areas of compliance and international supply chains. On January 1, for example, the Special Tax on non-reusable plastic containers took effect in Spain, imposing 鈧�0.45 per kilo of non-reusable plastic.

鈥淭his new tax presents a number of challenges for companies, not only because they will have to pay the designated tax, but because they will have to address this new process within the organization,鈥� says Maria Monasor, 51风流sustainability principal EMEA South and a spokesperson for 51风流Spain. 鈥淥ne of the greatest issues is the amount of information that needs to be collected and analyzed, all coming from different sources and, in many cases, from different countries, hampering collaboration.鈥�

Last April, the government in the UK introduced the first (UK PPT) to be implemented globally. The UK tax is 拢200 per metric ton of plastic packaging either produced聽in or聽imported into the UK that does not聽contain聽at least 30% recycled plastic.聽Like their European counterparts, UK companies face two key challenges: getting the data to prepare their tax return and processing it to make tax decisions.

A Practical Solution

As has been the case with many challenges in recent times, technology has become a fundamental element in helping companies resolve their issues. is a cloud solution created specifically to facilitate the design of products for a circular economy and to help address the entire process involved in the new taxes.

Besides working to simplify manual reporting processes through automation, 51风流Responsible Design and Production allows companies to access data on logistics and materials, including details on the composition of packaging. 鈥淲ith this tool, companies will be able to calculate and submit reports in relation to the Spanish tax on plastics and reduce the risks of non-compliance,鈥� says Monasor.

The Ultimate Goal

In the long run, 51风流Responsible Design and Production can enable organizations to increase their sustainability KPI measurement and management capabilities as well as gain better visibility into material flows across all business processes. Improved traceability helps increase the accuracy of plastic tax payments and mitigates compliance risks. The solution can also implement changes to regulations and taxes and optimize the choice of materials for packaging to help reduce those taxes and boost circularity, which is the ultimate goal of the tax.

Despite all efforts to date, about 90% of the plastic currently produced worldwide is not recycled. 鈥淭he EU plastic tax and the UK PPT are harbingers of the worldwide movement reinforcing the polluter pays principle alongside extended producer responsibility,鈥� says Stephen Jamieson, global head of Circular Economy Solutions at SAP.

By disincentivizing the use of unsustainable materials, governments are incentivizing the market value of recyclable plastic, fostering a sustainable circular economy that will have global repercussions. Estimates indicated that plastic tax contributions would provide the EU with approximately 鈧�7 billion of additional revenue each year.

These efforts are only the first steps on a long, arduous journey. While most nations agree on the necessity to curb plastic, many are hesitant about the supply chain disruption it can bring to their economies. The ones that are embarking on the journey are pioneers whose efforts will provide valuable lessons for the ones that follow. The is to facilitate the process of transforming from a linear to a circular economy and to enable cooperation between nations, organizations, and their partners, no matter how fragmented the landscape. 51风流Responsible Design and Production fills that role by enabling companies to meet their sustainability commitments, comply with legislation, and develop more circular processes.

鈥淎lthough remanufacturing has been an industry norm, the difference now is its direct connection to meeting sustainability objectives at scale,鈥� said Georg Kube, global vice president and head of Industrial Manufacturing at SAP. 鈥淥rganizations can gain faster near-term value from bringing back existing products and reusing them for innovations that help achieve net-zero and net-neutral goals across the .鈥�

In a recent , respondents from industrial manufacturing and high tech industries said that results from their circular economy initiatives included better brand reputation (80%), increased innovation (79%), and enhanced regulatory compliance (78%).

Circular Economy Meets Sustainable Business Imperatives

Circular manufacturing has taken on new urgency. Material shortages are pushing costs higher. Easily disrupted supply chains add to challenges, where a single roadblock in one corner of the world cascades with massive negative impact on production elsewhere. At the same time, given increasing regulations, manufacturers have to calculate whether the energy consumption for one-time-use goods is profitable. Remanufacturing can help companies reduce the Greenhouse Gas Protocol Scope 1, 2, and especially 3 emissions that make up a significant percentage of carbon debt in their products. Localized remanufacturing is even more environmentally friendly.

鈥淚f manufacturers could harvest recyclable materials from locally sold and used consumer goods instead of dumping them in landfills, their customers become their suppliers for a fundamental change in supply chain dynamics,鈥� said Kube. 鈥淐ircular economy is a powerful way for manufacturers to demonstrate how they are committed to the environment and aligned with customers likelier to buy sustainably built products.鈥�

Kube added that some organizations are generating a strong revenue stream from remanufacturing their own products and selling those same services to other companies. Manufacturers are also moving factories closer to remanufacturing locations, reducing emissions from shipping and logistics.

Remanufactured Supply Chains Coalesce Around Sustainability

For heavy equipment manufacturers that typically have large portfolios, the circular economy involves prioritizing which machines and components make sense to reuse based on actual product value and carbon emissions saved. Calculations include the cost of materials, components, and production, along with depreciation and lifetime energy usage. Manufacturers that buy back certain products from their distributors can disassemble the returned machines, clean up designated high-value parts, and upgrade the component鈥檚 capabilities for reuse in advanced releases.

鈥淭he goal isn鈥檛 to try and remanufacture every single product in your portfolio,鈥� said Kube. 鈥淵ou want to remanufacture only those items with significant carbon savings and economic value, opening up possibilities for cost-effective innovation while complying with sustainability mandates and addressing customer expectations. Suppose you get back a second-generation pump. Its core has the highest value and most carbon emissions. You can take it apart and replace one chip in the motherboard to add a feature like remote control, transforming the product into the next generation.鈥�

Business Sustainability Is Built on Data Sharing

Despite legal edicts and consumer-led clout, sustainable business practices deep in the industrial manufacturing supply chain aren鈥檛 a given. Once a manufacturer has decided which parts make the most sense for reuse, customers still need incentives to return the product; maybe the payment for returns exceeds the dumping costs. Managing the logistics to identify, inspect, and take back products will require trailblazing industry collaboration.

鈥淎s products are sorted between scrap and remanufacturing, the manufacturer needs accurate data that captures the flow of materials and financial information,鈥� said Kube. 鈥淲e are innovating with solutions like , as well as , to securely connect data within an organization and across trusted ecosystems. The circular economy will depend on a network of enterprises moving in sync towards a sustainable planet.鈥�

Long before and after they touch our lives, products have a direct and indirect impact on the environment. Just reporting carbon emissions won鈥檛 make industries like farming, construction, energy, and automotive sustainable. Remanufacturing will tighten and shorten the loop between first-time product usage and reuse that reduces waste and increases profits, powering the circular economy.

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Almost 700 people who attended workforce development or entrepreneurship programs provided feedback to the survey. Participants were predominantly disadvantaged or disabled youth who averaged 28 years old and were evenly split between genders. What they all shared was the desire for a better life, whether they struck out on their own or worked for an organization in pretty much any industry.

鈥淚t鈥檚 impossible to measure the impact of volunteerism unless you actually talk with the beneficiaries. Unlike traditional post-project research that can take years to get results, our remote data collection and analysis approach surfaces project impact in weeks, making it actionable faster for corporate sponsors like 51风流and their social enterprise partners and the communities they serve,鈥� said Sasha Dichter, cofounder and CEO at 60 Decibels. 鈥淲ith near real-time information from beneficiaries, organizations can hold themselves accountable, quickly comparing results from different geographies and using the data to improve offerings based on participant feedback.鈥�

Having participated in the 51风流Social Sabbatical program, I can attest to the deeply satisfying and motivational experience of providing hands-on support to my in-country partners at . To date, the global, pro-bono consulting program run in partnership with has helped over 450 nonprofits and social enterprises address business challenges using the skills and knowledge of 51风流employees like me. But what really matters is how these social enterprise programs make a difference in the lives of the people in the communities they serve, reducing inequalities and supporting underserved populations. Accurate metrics on program results prove the efficacy of these programs and become the foundation of future deep impact plans.

Metrics Reveal Long-Lasting Improvements

Seventy-seven percent of respondents to the 60 Decibels survey said that their quality of life had improved. People in the entrepreneurship programs cited gains in skills and knowledge, along with positive changes in their perspectives, business expansion, and, tellingly, higher customer satisfaction. Professional, financial, and personal growth were the top three positive outcomes for beneficiaries who participated in workforce development programs. When asked to rate skills gained through their participation in one social enterprise program, beneficiaries ranked computer skills highest (70%), followed by communication (45%), better time management (40%), ability to navigate teamwork (32%), and enhanced professional skills (32%).

Notably, almost 60% of beneficiaries in both programs reported an upswing in their business revenue or income. Results ran the gamut from the ability to save money to strengthened leadership, networking, and other business strategies.

Measurable results went beyond business fundamentals. Almost 70% of beneficiaries reported a significant uptick in their self-confidence, having increased their skills so they could become more independent and 鈥渁ct on a vision鈥� for the future. Forty-five percent said they garnered greater respect from household members after attending the program. Breaking free of parental support was a benefit for many people, allowing them to make a more valuable contribution to their home. Numerous people credited their newfound professional maturity to their experience in workforce development programs.

鈥淚t鈥檚 important to measure the 360-degree view of program impact,鈥� said Dichter. 鈥淕etting a job and increasing your income is immediate, but there鈥檚 also the lasting experiential results that someone carries into their family life and throughout their career.鈥�

Triple Impact of Social Enterprise Programs

This year marks the 10^th anniversary of the 51风流Social Sabbatical program, and I talked with Hemang Desai, global program director of 51风流Social Sabbatical, who saw the results of the study as validation of its success.

鈥淲e鈥檙e committed to delivering triple impact for long-term, sustainable benefits to social sector organizations and the people and communities they serve, as well as the personal and professional growth of 51风流employees,鈥� he said. 鈥淥ur program is continuously evolving to address global challenges aligned with SAP鈥檚 corporate social responsibility strategy, Most recently, that includes increased collaboration with nonprofits and social enterprises to meet sustainability objectives such as climate action and circular economy. We鈥檙e focused on scaling our efforts, using what we鈥檝e learned to expand pro-bono services to social enterprises supporting economic equity and social justice.鈥�

As global calls for sustainability grow louder, social enterprises that educate and train disadvantaged people for fulfilling careers that address these challenges are a potent force for positive change. In fact, I鈥檓 actively involved in SAP鈥檚 newly-launched virtual social entrepreneurship support program, Acceleration Collective. I鈥檓 providing communications coaching and consulting to , a Nigerian-based social enterprise that educates women in rural communities to become self-sufficient, turning local waste into a sustainable livelihood. Climate change negatively impacts the most disadvantaged populations, offering social enterprise programs another opportunity for meaningful community impact.

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鈥淚t鈥檚 not just about what sustainable airplane design and production looks like, but also how to create more sustainable operations for existing fleets,鈥� said Torsten Welte, global vice president, head of A&D Industries at SAP. 鈥淢anufacturers are exploring how they can exchange more data up and down the value chain to design and manufacture the next generation of airplanes while making improvements to what they have for carbon-neutral business. Sustainable aviation connects data across engineering, procurement, supply chain, manufacturing, sales, and finance.鈥�

Emission-Free Aviation Requires Holistic Strategy

Like most industries, airplane manufacturers factor rework into the cost of doing business. That approach won鈥檛 be um鈥ustainable in this next era as increasingly stringent policies such as the kick in and cost pressures rise. analysts said that by 2024, 80% of global manufacturers will incorporate environmental sustainability into their product life cycle management processes and ecosystem, improving sales by 3%. The challenge for airplane manufacturers is keeping track of CO2 emissions across multilayered business operations.

鈥淐ompanies need to understand the entire CO2 footprint of every part that鈥檚 used in the airplane, along with every step of work associated with it, including sourcing and production, quality checks, production stoppages and rework, shipping, and recycling,鈥� said Welte. 鈥淚ndustry leaders are moving towards a holistic strategy for sustainable design through the airplane鈥檚 life cycle. For example, inside cabin materials are often switched out after a few years, with most ending up in landfills. How do you create a more circular economy during the airplane鈥檚 lifespan?鈥�

Fostering a Sustainable Mindset

Sustainability requires manufacturers to bring a different mindset and tools into everyday activities such as design and procurement. According to Welte, some manufacturers see procurement as ripe for change, shifting purchase considerations away from the lowest price to suppliers that offer products meeting indirect, longer-term sustainability parameters.

鈥淎 CO2-friendlier part might have an initially higher cost, but offer recyclability options that reduce carbon emissions,鈥� said Welte. 鈥淎dditionally, as airplane manufacturers explore sustainable fuel alternatives and materials, designers will need to collaborate much more closely with suppliers, sharing data to source the highest quality products that will decrease rework and resultant CO2 emissions. For example, technology like and helps designers efficiently work together with suppliers to set and meet shared sustainable business benchmarks.鈥�

Digital Innovations for Carbon Neutrality

Calculating the CO2 footprint of parts in an airplane is incredibly complex. It won鈥檛 be enough to evenly divide energy costs, such as electricity and heat, across different products. Accurate reporting calculates energy used far more precisely by individual parts based on all machine hours.

鈥淓very activity, direct or indirect, has to be accounted towards CO2,鈥� said Welte. 鈥淲ith greater visibility across the manufacturing value chain, companies can immediately spot problems with suppliers downstream to prevent rework by producing better products. When you can communicate faster with your , dynamically collecting and analyzing data from a centralized , you can track your organization鈥檚 progress against company and industry benchmarks.鈥�

It鈥檚 not lost on manufacturers that every slowdown carries a significant cost in wasted time, resulting in wasted energy. By 2023, analysts predicted that 30% of manufacturers will share applications with industry ecosystem partners to improve visibility and operational efficiency and ensure safety, security, and quality. Driven by increased demand for environmental accountability in manufacturing ecosystems, researchers expected 40% of G2000 manufacturers will use traceability technologies to mitigate risk and boost transparency by 2025. In the same timeframe, researchers predicted that by 40% of all manufacturing IT will own the responsibility of data modelling for sustainability and net-zero carbon targets. Already some manufacturers are using innovations like digital twins, which dynamically capture information that can speed up the production, product approvals, and certifications of new engines and aircrafts.

Deservedly or not, flying has a bad rap compared to other industries that can be equally or more energy intensive. But emission-free aviation is no mirage. Manufacturers have set their sights on a new horizon in sustainable business, bringing an ecosystem together to create a carbon-neutral future.

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