In 2026, that distinction is becoming increasingly blurry.聽Extreme heat, water scarcity, flooding, wildfires, and energy volatility are affecting cost structures, disrupting supply chains, and constraining labor productivity and capital planning. These factors increasingly show up in routine operational and financial decisions and interact with broader economic dynamics. Climate impacts intersect with聽geopolitical competition, supply-side volatility, and regional fragmentation.聽At the same time, the transition to a low-carbon economy continues to progress unevenly across markets, with carbon increasingly subject to pricing, regulation, and disclosure expectations.

Together, physical climate impacts and transition pressures are influencing how companies plan, invest, and聽operate. Many organizations are approaching adaptation and mitigation as an integrated business capability, on par with聽financial management,聽supply chain聽planning,聽or cybersecurity.

Why adaptation and mitigation demand sustained leadership attention

聽projects that physical climate risks could more than triple corporate financial exposure by 2050, driven by asset damage, supply disruptions, and productivity losses. Despite this growing聽exposure,聽however, fewer than one in five companies have implemented adaptation measures at scale.

This widening gap between risk and readiness has profound implications for CEOs and聽boards, who聽recognize this threat. A聽聽found that business leaders聽identified聽extreme weather events as the greatest long-term business risk, with cascading effects across economic stability, supply chains, and social cohesion.聽Climate risk is now:

• Financial, affecting margins, asset values, insurance availability, and cost of capital
• Operational, disrupting production,聽logistics, and workforce availability
• Strategic, influencing where companies invest, source, and grow
• Reputational, shaping trust with investors, customers, regulators, and employees

For many leadership teams, climate adaptation and mitigation have become part of the broader challenge of enterprise readiness.聽In some cases, they are also influencing access to capital, insurance terms, talent聽attraction,聽and long-term market positioning.

Going beyond the contingency mindset

A common constraint on progress is how climate adaptation is still framed inside organizations.

When it is treated primarily as contingency planning, it tends to be reactive and episodic. Plans are developed, documented, and revisited only after disruption occurs, while ownership is often spread across risk, sustainability,聽operations,聽and finance teams with limited integration into core decision-making.

A capability-based approach works differently. Business capabilities are embedded and聽inform聽everyday decisions, supported by data, systems, governance, and incentives.

Climate capability聽emerges聽when organizations integrate climate risk, resilience, and carbon considerations into the core of how the enterprise runs.

The four pillars of climate capability

1. Supply chains designed for disruption

Global supply chains are increasingly exposed to climate volatility and regulatory pressure. Highly optimized, linear supply chains designed primarily for cost efficiency have shown limitations under these conditions. Many organizations are adjusting value chains to improve resilience and address emissions. Supplier diversification, regionalization, circular material flows, and better data sharing can reduce exposure to physical disruption and, in many cases, lower Scope 3 emissions. In practice, efforts to improve decarbonization and resilience often reinforce one another.

What this requires is more reliable,聽timely聽data across supply chains, so that COOs are empowered to turn insights into meaningful outcomes.

2. Assets and infrastructure built for a changing climate

Facilities, equipment, and聽logistics聽networks are increasingly exposed to chronic stresses, such as heat and water scarcity as well as acute events like flooding. At the same time, carbon-intensive assets face growing transition risk as energy systems and regulations evolve.

A capability-based approach evaluates assets through a dual lens: physical climate exposure and carbon intensity. This informs where companies聽locate聽facilities, how they聽maintain聽them, and when they invest in retrofits, electrification, or renewable energy.

Investments in energy efficiency and clean energy can reduce emissions while also moderating exposure to energy price volatility and supply disruptions.

3. Workforce resilience as a business priority

Climate impacts are also affecting people. Rising temperatures and extreme weather are already reducing labor productivity and increasing health and safety risks in many roles and regions.

聽estimates聽that heat stress alone could result in the equivalent of 80 million full-time jobs lost globally by 2030 under a 1.5掳C warming scenario. Organizations that treat workforce resilience as a core business issue are adjusting schedules, working conditions, training, and safety protocols, protecting people while maintaining productivity.

4. Financial decision-making informed by climate reality

Despite growing awareness, climate data is often still disconnected from financial planning and analysis.聽聽that while聽67% of companies聽identify聽climate-related risks with potential聽financial impact, only a fraction can quantify those risks with enough precision to guide investment decisions.

A capability-based approach incorporates carbon and climate risk into financial models. This allows leaders to assess physical risk, transition risk, and return on investment together, turning climate action into a disciplined, value-driven decision process.聽, like聽听补苍诲听, can empower organizations to drive actionable climate strategies and unlock measurable impact by helping them integrate sustainability into core business processes through the combination of trusted financial data and granular carbon insights.

A C-suite framework for climate capability in 2026

Across industries, five leadership actions will define those organizations building true climate capability:

1. Embed climate and carbon assumptions into core business planning and governance.
2. Redesign value chains for resilience and emissions reduction.
3. Protect assets and people with predictive, forward-looking insight.
4. Align mitigation and adaptation with financial strategy.
5. Measure resilience and emissions together, not in isolation.

Together, these actions help shift climate efforts from parallel initiatives into a managed enterprise capability, one that聽determines聽operational continuity, financial resilience, and long-term competitiveness.

聽about how you can build a more compliant, sustainable, and resilient business with 51风流Sustainability solutions.

Sophia Mendelsohn is chief sustainability and commercial officer at SAP.

51风流is also committed to finding solutions to climate change and working across generations to make it happen. As the world鈥檚 largest provider of enterprise application software, 51风流plays a complementary role to organizations like UNICEF. With a unique ability to help the world鈥檚 largest companies achieve more across their value chains and drive sustainability at their core, there is enormous potential to use 51风流technology for good. Coupled with its , there is also a long-standing commitment to accelerate solutions by connecting corporate financial and nonfinancial resources with the .

Air pollution is a complicating factor of climate change. On , the world looks at this issue that is not locked within borders, making it difficult to address. It warms the global climate, exacerbating natural disasters and risking the health of millions of underserved people living in vulnerable areas.

In Mongolia, air pollution is particularly problematic as the country deals with rapid urbanization and a harsh climate. The country has a strong reliance on burning coal because it is inexpensive and readily available. Coal represents 90% of the energy used and is a huge economic export, creating jobs and wealth in a high-need country. Even though coal was banned in Mongolia鈥檚 capital city in 2019, coal use has led to enormous levels of smog and mounting for thousands of citizens. In a country known as the 鈥淟and of the Eternal Blue Sky,鈥� local youth like are not willing to accept this reality.

Enkhuun was just 17 when she co-founded , an organization leveraging data and technology as a differentiator in solving pollution. With family members affected, she had deeply personal reasons to create tangible action. She quickly understood the value of leveraging technology to scale solutions to the masses and built a centralized source of air quality data for Mongolian communities. 鈥淭hese are all tech-based tools that we use to reach more audiences and more people than we could otherwise,鈥� she said. Today, with information available in English and Mongolian, Breathe Mongolia has become a go-to source for air quality data in the region.

With on the horizon, taking place during the annual , 51风流will step forward to represent the value of working with young innovators like Enkhuun with GenU. GenU was founded in 2018 as part of UNICEF aiming to equip youth with the necessary skills and resources to participate in key conversations around pressing global issues.

When given the opportunity, youth bring an impressive passion for creating impact, coupled with a , that allows decision-makers to channel new solutions. Breathe Mongolia is one of the millions of impact organizations operating globally and putting people and planet first. 51风流wants to ensure its success and that of the more than operating globally, many led by young people. Together with leading youth social impact partners like , , and (WAFF), 51风流is hoping to close the opportunity gap and ensure that youth have the resources they need to innovate and fulfill their potential. This commitment for youth inclusion extends beyond Climate Week and UNGA. Throughout the year, 51风流and its leadership team lead by example, involving expert young leaders in the company鈥檚 innovation strategy and sustainability programs, opening doors that provide them with a seat at the table.

Whether you are attending Climate Week or participating virtually from home, every sector and individual has a role to play to combat issues like climate change. To better understand the challenges that youth face and the potential to incorporate youth voices in challenging projects, leverage The Possibilists on young changemakers and WAFF鈥檚 on intergenerational collaboration.

If you are a young climate innovator based in North America or Sub-Saharan Africa, we also encourage you to check out resource support through .

Selina Henn is a strategy and operations associate for Corporate Social Responsibility at SAP.

These are not just numbers: futures are at stake, particularly for young people whose education and opportunities are being disrupted right before our eyes. This stark reality drives home the need for inclusive and equitable strategies in our climate action plans.

Youth are at the frontline of these environmental challenges. Their futures depend on how effectively we can address the impacts of climate change. It is a call to action for all of us across various sectors to unite and empower the voices of these young people, harnessing their potential to create innovative solutions.

At SAP, we’ve embraced a four-pronged approach specifically designed to support and empower youth in their journey to a sustainable and just world: rally, represent, reskill, and resource.

Sharing these insights at the during COP28, where education is a focal point, reminds me of the critical need to intertwine education funding with our climate goals, addressing the immediate and future climate challenges.

At the core of our mission for climate justice is rallying the energy and passion of the younger generation. I sincerely believe that climate action among young people is a key component of climate justice, and we need to promote that in various ways.

That is why we support Green Rising, an initiative led by UNICEF and Generation Unlimited along with partners that supports children and youth-led grassroots climate action for a faster and fairer transition to a low-carbon economy. The aim is to directly engage 10 million youth, particularly girls, to take action by 2025 through volunteering, green skills, jobs, entrepreneurship, and advocacy. Our 2023 collaboration with Goodwall and Accenture has already launched digital challenges like #ClimateAction, #DigitalCleanUp, and #GoingZero with 15,000 active youth participants.

However, I鈥檓 keenly aware that passion alone is not enough. The journey from raising awareness to finding real change requires more than just enthusiasm; it demands skill and knowledge. This realization bridges us to the next critical phase of our mission.

Green Rising also recognizes the importance of equipping youth with the tools they need to make a lasting impact.

The reskilling effort at the heart of Green Rising is about transforming energy and concern into potent, informed action. As we confront the reality of “eco-anxiety” affecting 57% of global youth, we understand that empowerment comes from giving these young minds the ability to turn their worries into wisdom and their fears into a force for good. By fostering climate literacy and developing green skills, we are not just creating activists; we’re nurturing future leaders, problem solvers, and innovators who will shape a sustainable world in areas like biodiversity, air quality, water conservation, and waste management.

I’m fortunate to see how our dedication to reskilling is making a real impact. We are charting a clear course in initiating and nurturing programs that significantly boost young people’s employability and entrepreneurial capabilities.

For instance, through accessible online resources like open.sap.com, learning.sap.com, and collaborations with our colleagues from 51风流University Alliances, we are empowering individuals with the necessary insights to contribute positively to climate action. Efforts extend globally. With UNICEF鈥檚 Generation Unlimited, we have empowered more than 7.6 million young people in India, Turkey, and Vietnam with vital digital and life skills.

Looking ahead, Youth Agency Marketplace (YOMA), co-created with young people from the continent, will reach 1 million youths in Nigeria, Kenya, South Africa, and the Philippines by 2025, offering opportunities for learning and reskilling. Additionally, the 51风流Educate to Employ initiative is shaping future careers, training 100 young talents in each pilot country annually, with 25 stepping into internships or roles within the 51风流ecosystem.

These are steps toward nurturing a generation ready to lead the charge in sustainability and innovation.

In my experience attending conferences, I have often noticed a missing crucial element: the direct input of the young people we’re talking about. It is one thing to teach and upskill them with the crucial knowledge, but it’s another to truly empower them to be part of the conversation. It is about going beyond just training and providing youth with real platforms to contribute their fresh skills and innovative ideas to the global climate conversation.

This is what drives our approach to representation, with long-time partners and organizations such as We Are Family Foundation and ChangemakerXChange in programs like Youth To The Table.

I truly believe that this is the real game-changer. Ultimately, it is something quite simple yet often overlooked: genuinely including young people in the conversations and decision-making that shape their future.

This approach is encapsulated in the phrase “Nothing about us without us.” It’s about flipping the script, moving from merely discussing climate issues about young people to actively collaborating with them. They are not just on the sidelines, they are in the room where decisions are made.

For instance, we are bringing 50 young leaders from across the globe to the COP28 conference to get their innovative opinions and learn from their solutions. We have done it in the past and will continue in the future at global forums like the World Economic Forum and the United Nations General Assembly. Watching young leaders confidently take the stage and influence global conversations is a powerful reminder of why we do what we do — it’s about empowering them to shape the world they will live in.

A mere 0.76% of grants from major climate foundations currently support youth-led climate initiatives. This means while rallying, reskilling, and giving them a voice is crucial, it is not enough. To combat climate change, we must funnel more resources toward the projects and innovations led by youth, especially in the most affected communities. This means not just talking about, but investing in their ideas through project grants, mentorship programs like Climate Hacks, and corporate pro-bono consulting programs that connect experts with social and climate enterprises to amplify their impact and turn youthful enthusiasm and innovation into tangible, world-changing solutions.

As I reflect, I’m reminded of the unique and impactful role corporations can play in driving long-term social change. Leading these efforts at 51风流has been a responsibility and a privilege, offering a front-row seat to the transformative power of education.

Seeing young people full of potential and eagerness to make a difference has been a constant reminder of why our work matters. Every digital challenge we launch, every skill we teach, and every voice we amplify is not just a tick on a corporate checklist. It’s about lighting up a path for these young leaders who will one day take the reins in creating a sustainable and just world.

The conversations I have, the stories I hear, and the evident enthusiasm and determination among youth leave a lasting impression on me. They remind me that our commitment to empowering young people goes beyond the boardrooms and conferences. It is a reminder of the potential for corporations to contribute meaningfully to a sustainable, equitable, and bright future for all. It鈥檚 about nurturing a future we all share.

Alexandra van der Ploeg is head of Global Corporate Social Responsibility at SAP.

Up until now, nearly 1,800 companies, including SAP, have committed to becoming net zero across their value chains. These commitments aim to achieve an emissions state consistent with societal climate and sustainability goals and within the biophysical boundaries of the planet. At the beginning of 2022, 51风流committed to achieve net-zero emissions by 2030. The United Nations鈥� Intergovernmental Panel on Climate Change (IPCC) defines net zero as that point when 鈥渁nthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period.鈥� The Paris Agreement sets out the need to achieve this balance by 2050.

Click the button below to load the content from YouTube.

Always allow YouTube

A company鈥檚 net-zero emissions target is a climate action target in which a company aims to reduce its emissions to zero, on a net basis. The term 鈥渘et鈥� comes from the view that most companies will not be able to operate without emitting at least some greenhouse gases, so they will need to remove their unavoidable residual emissions from the atmosphere to get to net zero.

Getting to net zero is not easy or straightforward. Questions remain on how companies develop their net-zero emissions targets and ensure their decarbonization strategies track to ambitious pathways. Challenges exist, such as inconsistently defined net-zero targets, what emission sources and activities should be included, timelines to achieve the goals, and how companies plan to achieve their target.

The Science Based Targets initiative (SBTi) is one of the leading global initiatives that helps companies set ambitious emission reduction targets and credible decarbonization strategies. The SBTi鈥檚 Corporate Net-Zero Standard is the world鈥檚 first framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5掳C above pre-industrial levels.

The scope of science-based targets for net zero is broad, encompassing all relevant greenhouse gas emissions across a company’s value chain, including direct emissions from operations (Scope 1), emissions from purchased energy (Scope 2), and indirect emissions from upstream and downstream sources such as business travel, employee commuting, purchased goods and services, or products in use (Scope 3).

This SBTi framework includes a set of criteria that companies must meet to ensure that their targets are scientifically robust and credible. These criteria include:

• Complete an emission inventory following the GHG Protocol.
• Set near- and long-term science-based targets to reduce value chain emissions.
• Implement a strategy to achieve science-based targets.
• Disclose target progress annually.

To claim to have reached net zero, companies must neutralize the impact of emissions that remain unabated in the long-term net-zero target year. Examples of such counterbalancing activities include purchasing carbon credits that support programs that prevent deforestation or support reforestation or investing in carbon-dioxide removal (CDR) technologies such as direct air capture (DAC) with permanent geological carbon storage. The SBTi allows a maximum of 10% removals for a long-term net-zero target and does not allow the traditional use of offsets anymore, except to achieve short-term targets as an interim transition step. Consequently, the Net-Zero Standards expects companies to radically reduce emissions by 90% by no later than 2050.

To set a science-based target for net-zero, a company must first conduct a detailed assessment of its greenhouse gas emissions in alignment with the Greenhouse Gas Protocol, including identifying emissions sources and determining the extent of its emissions across its value chain. Based on this assessment, the company can set an ambitious, measurable emissions reduction target consistent with the Paris Agreement’s goals and aligned with the best available science. Beyond the assessment, companies then need to set ambitious targets and actionable strategies, both near- and long-term to reduce value chain emissions.

鈥淲e are currently assessing our net-zero reduction pathway and corresponding reduction strategies across a number of areas of the 51风流business to meet the demanding requirements of the SBTi,鈥� said Lilli-Jane Popp, sustainability specialist at SAP. 鈥淲e want to continually use the highest standards and use the latest science in setting targets and developing our plans to achieve net zero by 2030.鈥�

Scope 3 emissions are challenging to reduce yet they are where most emissions occur in a company鈥檚 value chain. They are the indirect greenhouse gas emissions that occur outside of operations, like emissions produced by suppliers and customers when using the company鈥檚 products. These emissions are considered difficult to account for because they depend on a complex network of suppliers, customers, and other stakeholders. Accounting for Scope 3 emissions requires a deep understanding of a company’s value chain, a commitment to collecting and analyzing data, and collaboration with suppliers and other stakeholders.

Delivering and disclosing progress on their decarbonization targets helps companies reduce their environmental impact, improve their reputation and brand value, and attract environmentally conscious consumers and investors. Also, by setting science-based targets, companies can ensure that they are prepared for the transition to a low-carbon economy and avoid the risks associated with climate change, such as regulatory changes, reputational damage, and physical impacts.

However, achieving net-zero targets to limit global warming to 1.5掳C will require significant effort and investments from companies and strong collaboration across sectors. But it is essential for ensuring a sustainable and livable future. According to the latest IPCC report, we have already reached 1.1掳C of warming above pre-industrial levels. We are living in a decisive decade for climate action with our planet warming at an unprecedented pace. Companies must align with the most ambitious, credible, and robust frameworks, like the SBTi, to reach global net zero by 2050 at the latest.

Michael McComb is global head of Sustainability Communications at SAP.

Let’s turn the spotlight to discover how this crisis can create new opportunities for companies and individuals. Here, Gitte Winther Bruhn, global head of Social Responsibility Solutions at SAP, Alexandra van der Ploeg, global head of Corporate Social Responsibility at SAP, and Robert Richardson, HR tech strategy advisor, discuss the importance of . This transition will help us protect our planet, our environment, and the “safe space for humanity” 鈥� our society, our friends, and our families 鈥� for the next generations to come.

Q: 鈥嬧�嬧�嬧�嬧�嬧�嬧�媁hen we hear about the consequences of climate change, the social implications still don鈥檛 seem to surface in conversations as much 鈥� and certainly not as an opportunity. Can you offer some insight into what鈥檚 below the surface and why there is an important opportunity we should push above the horizon?

鈥嬧�嬧�嬧�嬧�嬧�嬧�媁inther Bruhn: When discussing climate change, we mainly address carbon emissions, not the impact on humans. We have an opportunity to address human inequality alongside climate actions through an inclusive green economy. Human talent will be crucial for the transition, as a greener economy requires new, green skills 鈥� both for emerging jobs and for existing jobs that are evolving. The green and critical transition will be impossible without a suitably trained workforce. forecast that by 2030 the global human talent shortage will be more than 85 million people, or roughly the same as the entire population of Germany. And 85% of these jobs have not even been invented yet. Demand for talent is outpacing supply and will impact society and businesses. This is a challenge, but it provides us with an unprecedented possibility of job creation.

For example, making a carbon neutrality commitment requires significant changes to business operations. Companies must measure emissions, create action plans, execute change, measure performance, report results, and iterate. We need to reimagine training and reskilling for the global workforce. To understand how green skills are applied in jobs, pinpoint where gaps arise and what actions we can take to bridge them. An inclusive green transition could in the next decade but requires significant investments in reskilling.

Green skills are the building blocks of the green transition to unlock the human capital that will power it 鈥� in a just way that leaves no one behind. For example, the transition to a green economy remains the best hope for . It would create new jobs and bring more investment to Africa in the long term for the continent’s sustainable development. This is crucial for Africa with approximately 70% of the population below the age of 30 and new entrants joining the workforce every year. UNEP estimates that expanding solar and wind capacity in Senegal will create up to 30,000 additional jobs by 2035.

鈥嬧�嬧�嬧�嬧�嬧�嬧�媁e see three key players in this transition: government, employers, and individuals. What are the biggest challenges and tasks for employers in this transition?

鈥嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌婻颈肠丑补谤诲蝉辞苍: It鈥檚 great to see the thousands of companies making carbon neutrality commitments. Most companies don鈥檛 yet have the requisite knowledge and skills to achieve their commitments though. , such as specialized data analysis focused on emissions and energy use, specialized hardware expertise focused on installing energy-monitoring modules, communicating and marketing with an understanding of how sustainability messaging is perceived in specific markets, and so on.

Three important focus areas for companies are:

• Good job design: Jobs should be designed with the right requirements in mind. Some roles will require deep sustainability specialization, but most will simply require some sustainable competencies to ensure the whole company is rowing in the same direction. Data scientists don鈥檛 necessarily need a sustainability degree. Product sourcing specialists don鈥檛 need five years of experience in a social responsibility department to purchase less carbon-intensive products and services. Good job design can reflect these requirements to encourage upskilling, attract talent, and allow for the assessment of candidate fit.
• Attracting talent: Attracting talent goes beyond publishing jobs. Candidates regularly review a company鈥檚 sustainability commitments when considering where to work. CHROs and talent acquisition leaders who ensure their recruiting brand brings sustainability messaging front and center will disproportionately win over these candidates. People want more than a check; they want to make a difference. But candidates are skeptical of greenwashing. So, prove it by engaging in good job design and touting sustainable commitments and achievements.
• Developing talent: Just as companies can conduct a job design audit of skills required to achieve sustainability goals, they can also audit their people skills. Knowing the skills you require 鈥� job design 鈥� and the skills you have 鈥� people skills 鈥� elucidates the gap an organization needs to fill to accomplish its objectives. Candidly, this can be daunting without sophisticated software and machine learning capabilities required to streamline the process. But it鈥檚 worth it. Knowing your skills gap is key to delivering effective, personalized upskilling and reskilling programs. Individualized learning, goals management, and performance management drive employee engagement, retention, and achievement of sustainability objectives.

Currently, green job growth is outpacing the labor market鈥檚 ability to keep up. Organizations focused on thoughtful job design, recruiting marketing, and personalized, data-driven talent development will have the best chance of achieving their sustainability goals.

鈥嬧�嬧�婲ow that we have talked about the employers鈥� opportunities and duties in their own company and operations, what is the role of corporate social responsibility (CSR) in this?

van der Ploeg: In most companies, corporate social responsibility teams are responsible for overseeing and implementing a company’s social and environmental initiatives and, therefore, play an important role in supporting the green transition and addressing the skills gap and shortage challenge. The CSR strategy should acknowledge the interconnections of societal, environmental, and business challenges alike. So, CSR teams can set the stage for their own company and partner with others to reach joint sustainability goals. 51风流has already successfully done this by integrating social responsibility into its sustainability framework.

A company will not only be impacted by the talent shortage in its operations but also in its partner network. It鈥檚 relevant for all stakeholders in the economy and it鈥檚 evident that the talent crunch is driven by a shortage of skills, not people. Plenty of people are willing to learn. That鈥檚 why, in their own interest, corporations should bring all of their assets to support the provision of quality education. CSR teams and their networks have the expertise to run such strategic programs. Last year, for example, , focusing on employability. This year, 51风流and Generation Unlimited will pilot a program to support 鈥榣earning to earning鈥� pathways for underserved young people in the digital and green economy. They鈥檒l learn the hard and soft skills needed to become employable.

The consequences of climate change and other global developments such as the COVID-19 pandemic, often affect the world’s poorest. Any detrimental impact on economic or ecological systems will damage the social systems and disproportionately affect generally marginalized communities. That鈥檚 why our pilot focuses on marginalized youth in Nigeria, the Philippines, Kenya, and South Africa 鈥� with the goal of reaching more than 500,000 young people in the first year. They will get foundational knowledge and 51风流skills to open a pathway to a successful career in the 51风流ecosystem, along with on-the-job experience, coaching, and mentorship to help them launch their careers. This truly will be a win for the program, as 51风流will see skilled young people in the ecosystem helping our partners and customers in their digital transformations and on their path to achieving their sustainability goals while providing the young talents better possibilities to have a career, earn a living wage, and live a decent life.

鈥嬧�嬧�嬧�嬧�嬧�嬧�媁hat responsibilities and opportunities do you see for governments in this transformation?

鈥嬧�嬧�嬧�嬧�嬧�嬧�媁inther Bruhn: The transition is a unique opportunity to mature functional labor markets with sophisticated, educational, and inclusive social protection systems and a future-proof workforce. Today, many commitments to international agreements are made without reference to the implications on labor markets and skills and training needs. to link employment to action to address climate change and provide a significant driver for green job creation. To succeed, good coordination of policies and actions across government ministries and the private sector, including employers and workers, is needed to prevent and reduce skills mismatches.

I want to briefly mention one last key player, ourselves. Our actions do matter, as they collectively can lead to political change. We all need to embrace the change and the opportunities that come with the transition to a greener economy. We need to make choices on home heating systems, how cars should run, and reflect on our diet to avoid high-emission foods. We need to be proactive, take ownership of our own skill set, and embrace career flexibility. We need to internalize a mindset of lifelong learning.

To conclude, it is essential for all stakeholders, including governments, businesses, and workers, to collaborate on a new social contract and ensure we move forward together 鈥� toward a future that works for everyone.

Simone Maienfisch is part of New Business & Industry Strategy at SAP.

The National Retail Federation鈥檚 annual expo kicks off on Monday in New York with more than 1,000 exhibitors, 150 sessions and a focus on a handful of “disruptor” issues. Climate change and sustainability will take center stage at NRF 2023.

SAP鈥檚 Take

鈥淐limate change, circular economy and sustainability have all come to the forefront over the past few years and global supply chains sit right in the middle of these challenges: as a major contributor to the problems and as a great area of focus where we can take action to address the problems,鈥� said Richard Howells, a supply chain expert at SAP.

While many companies have created mission statements and goals around sustainability 鈥� for example, becoming carbon neutral over the next decade 鈥� many still lack the ability to capture, monitor and measure their emissions and waste. Supply chains have a huge part to play in addressing that.

An estimated 76%聽 of global trade passes through supply chains with much of it destined for the retail sector. End-to-end supply chain transparency is critical to help retail businesses meet regulatory, governmental and company-mandated goals. This transparency needs to encompass not only their own facilities but also those of suppliers, contract manufacturers, logistics service providers and other partners across the business network.

鈥淪ustainability initiatives must extend from the design to the decommission of a product, from raw materials sourcing to last-mile logistics, and even to product usage, returns and recycling processes,鈥� Howells said. 鈥淎t every stage in the life cycle of specific products, there are social and environmental impacts.鈥�

From the start, product design must be made with end of life in mind, including how they will be recycled, reused, repurposed and returned to the earth.

鈥淧lanning processes must take into account not only optimizing inventory, asset utilization and cost reduction, but also emission reduction and ethical material sourcing that eliminates slave labor and ensures fair trade regulations,” Howells said. 鈥淢anufacturing and logistics processes must focus on eliminating waste and emissions and ensure the safety of the workforce.鈥�

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

One company with extensive expertise in ESG reporting is , the world鈥檚 largest brewer. The company鈥檚 strategy for growth through the digitization of its ecosystem 鈥� which includes 200 breweries, 6 million customers, and over 2 billion consumers, generating over 10 million weekly transactions 鈥� involves a lot of data.

The Right Data

鈥淏rewing requires the best ingredients, which requires a healthy environment. We are an agribusiness. We see the far-reaching implications of climate change in our operations and sourcing regions,鈥� said Ezgi Barcenas, chief sustainability officer, Anheuser-Busch InBev. 鈥淲ith operations in over 50 countries, we鈥檙e looking at many metrics. Just inside our walls, we have 400 operating practices for tracking efficiency, water, energy, maintenance, and sourcing, to name a few.鈥�

Barcenas explained that as the company looks at its supply chain, it must think through the environmental and social impact up- and downstream, from the smallholder farmers down to the half million SMEs that are its customers selling its products around the world, all the mom-and-pop shops as well as the big chains.

鈥淭hat鈥檚 a lot of data,鈥� she said. 鈥淣ow add all your research and innovation data, security data, and ideas about the future of packaging and logistics. The point is, sometimes you need better data, not more. You need to ask yourself: is this data useful for making decisions? Does it help drive the right actions through the business?”

Another data-heavy company participating in the discussion was Schneider Electric SE, a French multinational specializing in聽digital automation and energy management for buildings, data centers, infrastructure, and industries. By 2025, thanks to its energy and sustainability services and green product innovations, it will have and avoid 800 million tons of CO2.

鈥淲e need to triple our speed to avert climate disaster. Reporting scope 3 emissions is extremely important, because we can only track what we measure and we can only improve if we measure,鈥� said Michael Lofty, senior vice president, Power Products, Schneider Electric. The good news is that about 70% of Schneider Electric鈥檚 revenue already comes from green solutions. The company invests heavily in innovation. 鈥淎ny innovation coming from Schneider Electric is a sustainable offer,鈥� he explained. 鈥淓ach product is more sustainable than the one before it, and metrics are key proof points.鈥�

At Schneider Electric, the main challenge was to get suppliers on board the sustainability journey. The company launched a Zero Carbon Project to help 1,000 suppliers responsible for 70% of its upstream carbon emissions become more sustainable. 鈥淭his is a movement and it鈥檚 a must-have movement, because we are only as strong as our smallest supplier,鈥� said Lofty. The project aims to quantify supplier emissions to establish a baseline and identify key sources of emissions. This enables data-driven prioritization of intervention and road map creation.

ESG Reporting

Most people assume that ESG investing is designed to reward companies helping the planet. According to a by the Harvard Business Review, however, ESG ratings that underlie ESG fund selection are based on materiality, an accounting principle stating that all items likely to impact investors鈥� decision-making must be recorded in detail in a business鈥檚 financial statements using聽.

Some businesses are already linking materiality to their own fortunes and that of the planet. A revealed that a significant minority of respondents say sustainability is already financially material to their businesses and a larger group believes it will be imminent in the near future. Companies like Anheuser-Busch IN Bev and Schneider Electric are finding ways to make that link pay off with the help of data.

鈥淥ne change we鈥檝e seen over the last few years is that investors have a better understanding of which data is material to the business, and they ask more questions around it,鈥� said Barcenas. 鈥淲e鈥檙e increasingly trying to provide more context around our data.鈥�

Providing accurate data is the only way to really demonstrate the impact of the changing world on a company鈥檚 profits and losses. Having one global framework and mandatory reporting would certainly help address the data challenge, but that won鈥檛 happen in the near future.

鈥淲e still need to progress on some of the standards and regulations before we can make them mandatory,鈥� said Gunther Rothermel, senior vice president, head of Sustainability Engineering, SAP. 鈥淲e need to look at the common denominator underlying the regulations and cover that level first, and then grow this common denominator as the regulations mature and become accepted.鈥�

Companies like SAP, he said, with products that also need to meet standards, will, at least for now, have to serve numerous frameworks. In the meantime, 51风流solutions help organizations of all sizes and industries achieve their zero emissions, zero waste, and zero inequality goals through ESG data transparency across crucial business processes, business networking, and a large ecosystem of partners.鈥�

鈥淲e believe that embedding sustainability at the core of business strategy can help drive operational efficiency, innovation, employee engagement, supply chain resilience, risk mitigation, improved sales, and other strategic business benefits,鈥� said Rothermel.

Having the right data proof points will help companies better understand the return on their sustainability investment (ROSI) and the materiality underlying investor decision-making, resulting in shareholder returns and long-term benefits to the environment and society.

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

Over 1.3 million Nigerians have been displaced by the floods, which have killed at least 600 people, destroyed more than 200,000 homes, and hit 32 out of the country鈥檚 36 states. The floods are the worst for more than a decade and have wiped out crops, disrupted drinking water supplies, and turned capital city Lagos into an island surrounded by floodwaters.

Speaking last month during the International Monetary Fund and World Bank Annual Meetings in Washington, DC, Mai Farid of the fund’s African department warned about the impact of the floods, which have also hit Cameroon and Chad, on transport, food production, and prices.

Farid noted that Nigeria is part of the most food-insecure region, the region most vulnerable to climate change and yet the least prepared. She urged the government to invest in infrastructure and technology to help prevent and mitigate the impact of floods and other climate-related natural disasters in the future: “Rebuilding better is something that countries need to take into account since climate change is not going anywhere and is inevitable.鈥�

Nigeria is Africa鈥檚 most populous country and largest economy. Even before the latest flood, it聽 faced rising food insecurity as a combination of a mostly informal agriculture sector and growing population puts pressure on the country鈥檚 food resources. According to the , food insecurity increased from six percent of the Nigerian population in 2007 to 13.4% in 2017.

The agriculture sector is the largest contributor to the Nigerian economy and聽. However, according to the United Nation (UN) Food and Agriculture Organization, food production in Nigeria is undermined by a number of factors, among them poor planting material and insufficient use of fertilizer, which leads to a growing reliance on food imports.

To help address these issues and support smallholder, the Convention on Business Integrity鈥檚 for-profit arm Innovations Limited, or CBiIL, chose the solution to support 850,000 small maize producers and integrate them into the agricultural value chains.

While West Africa, like Africa as a whole, is still heavily dependent on agriculture, it is home to some of the world鈥檚 fastest growing mega cities like Lagos, so urbanization and the associated environmental issues are top of mind, particularly among young adults.

The region also has a reputation for leap-frogging old technology — first mobile technology and now with cloud computing. In Nigeria itself, the number of mobile phone subscribers is forecast to grow to more than 140 million by 2025 from about 40 million currently.

As Africa鈥檚 largest oil and liquified natural gas (LNG)聽 producer, Nigeria is on the front line of the debate over sustainable development in the West Africa. It is also a key market for SAP, which counts among its customers Nigeria LNG, which operates six LNG liquefaction units, and Dangote Group, the conglomerate founded and run by Nigerian billionaire Aliko Dangote.

The group鈥檚 Dangote Cement unit already publishes an annual sustainability report, part of Aliko Dangote鈥檚聽 personal commitment to build 鈥渁 socially responsible and impactful business that serves all stakeholders.鈥� Dangote is also close to completing the Dangote Refinery, the world鈥檚 largest petroleum refinery capable of processing 650,000 barrels of oil per day. When it comes online, the $20 billion refinery will enable Nigeria to process most of its oil instead of exporting crude to be refined overseas.

鈥淲e are having conversations with Dangote about some of our sustainability solutions and how they measure their impact on the environment,鈥� says Titilayo Adewumi, regional sales director for West Africa at SAP.

Nigeria LNG is also committed to sustainability and is Africa鈥檚 largest LNG exporter, but has recently been operating well below capacity because of a number of factors, including under-investment in recent years and endemic crude oil theft. 鈥淚f we don鈥檛 address this, we will not get out of this quagmire that we are in,鈥� Nigeria LNG Managing Director recently warned Philip Mshelbila. Speaking last month at a conference in Lagos, Mshelbila also acknowledged that the flooding has reduced the gas supplies from the company鈥檚 upstream suppliers, though he said Nigeria LNG鈥檚 facilities remain unaffected and its capacity to produce LPG is intact.

Companies in Nigeria also have to grapple with unreliable electricity supplies and frequent power outages, a problem that business leaders say has led some manufactures to relocate to neighboring Ghana, which has a much more reliable electricity system.

Ghana is the regional leader in addressing plastics pollution and circular economy issues. A groundbreaking between the World Economic Forum (WEF), the Global Plastic Action Partnership (GPAP), and 51风流in Ghana is increasing visibility within the plastics supply chain with the hope of benefiting people, companies, and the environment.

The project involves more than 2,000 Ghanaian waste pickers and makes use of an adapted version of 51风流Rural Sourcing Management to measure the quantities and types of plastic they collect. Data is then analyzed and matched to market-related prices paid throughout the value chain both locally and internationally.

Ghana generates an estimated 1.1 million tons of plastic waste every year, with only five percent collected for recycling. This new pilot project is currently running in several cities across Ghana, with hopes of expanding to the rest of the region and ultimately the continent through the GPAP-Africa Regional Coordination Working Group, which includes SAP.

Across the region, the bulk of 51风流customers are choosing cloud solutions rather than on-premise technology and 51风流seeks to help customers deliver on their climate goals by creating greater efficiency, transparency, and accountability of carbon and emissions across the entire supply chain and innovating new processes and business models.

But 51风流Africa Managing Director Cathy Smith and other experts caution that while sustainability and environmental, social, and governance (ESG) issues are an increasingly important part of the conversation among governments and corporate leaders, it is important to recognize that customers in Africa often have other — perhaps higher — priorities.

In particular, they say business leaders need to be persuaded that sustainability makes good business sense and will ultimately benefit the company, economy, and people.

鈥淲e lead by asking about their business priorities, and then we fold in sustainability,鈥� Smith explains. “It’s just a different approach.”

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.

Follow me @smgaler.

The Mississippi river is a vital transport route for U.S. agricultural commodities, carrying 92% of U.S. agricultural exports and 78% of the global exports of feed grains and soybeans. But water levels in some parts of the river are now so low that commercial traffic has been halted and the U.S. Army Corps of Engineers has been called in to begin emergency dredging.

With no sign of an end to the drought in the Midwest, water levels in the Mississippi are now near 30-year lows because of a lack of rain in the Ohio River Valley and the Upper Mississippi. As a result, U.S crop exports at Louisiana Gulf Coast terminals were at their lowest level in nine years for the first week of October, according to U.S. Department of Agriculture (USDA), and shipping prices have soared.

SAP’s Take

Historically, shipping along the Mississippi river and its tributaries has been less expensive than other forms of transportation, but this hasn鈥檛 been true in recent weeks. As Richard Howells, vice president of solution management for digital supply chain at 51风流notes: 鈥淲e plan in the perfect world and we execute in the real world.鈥�

With parts of the river unpassable for big barges, he says grain shippers in particular have been forced to look at alternative modes of transport to move the grain to the port. 鈥淵ou may be able to use trains to take the load part way and trucks for the last mile,鈥� he says.

That, he suggests, is easier if the shipper has clear and up-to-date information. Providing that kind of data visibility, control and risk resiliency is the purpose of聽. 鈥淲ith connected data — including freight, fleet and logistics — you can re-plan with an updated schedule based on available routes and vehicles.”

鈥淲hen there鈥檚 a disruption, companies have to move quickly to identify which trucking companies and railways offer the right services and are available on short notice,鈥� Howells says. In particular shippers need to establish whether they have contracts with these logistics service providers already, or contacts that could broker introductions to new vendors.

鈥淚deally, you want to foster relationships with a trusted network of business partners so you have more choices and a faster response when the unexpected happens,鈥� he says. 鈥淚f your grain is sitting in a stranded barge waiting for the dredger to deepen the water, which customers are expecting that order?鈥�

Once contingency plans are in place, the next step is to figure out whether the grain will arrive on time for each handover between trains, trucks and the outbound ships sitting in the ports. 鈥淯pdated information and visibility at every leg of the journey helps you keep customers informed, resetting their expectations so they can adapt their operations as well,鈥� says Howells.

Contact:
Joellen Perry, Head of聽Global Public Relations, SAP
+1 (626) 265-0370,聽joellen.perry@sap.com, PT

Drought conditions in much of North America and Europe are resulting in water restrictions and extremely low water levels in many rivers threaten transportation of supplies. Europe has been particularly hard hit during a summer of record temperatures and months of below-average rainfall.

Two major river arteries 鈥� the Danube and the Rhine 鈥� have already become almost impassible in some places. This is threatening transportation of grain and other commodities on the 1,800-mile Danube, which flows into the Black Sea. Also impacted are supplies of coal and diesel fuel carried by barge on the Rhine that are essential to the economies of Germany, the Netherlands and Switzerland.

SAP鈥檚 Take

Low water levels in Europe鈥檚 main navigable rivers threaten to exacerbate the supply chain problems already caused by the COVID-19 pandemic and the war in Ukraine.

As Richard Howells, a expert at SAP, noted, the ships and barges traveling down the Rhine are essential modes of transport for shipping products and materials through western Europe, and Germany in particular. It is estimated that 80% of Germany鈥檚 water freight is transported on the Rhine, meaning that millions of tons of goods are shipped via the river every year.

鈥淭ransporting goods is a聽24/7, 365 day-a-year operation, requiring coordination and collaboration between multiple entities,鈥� Howells said. 鈥淲hen a key mode of transport 鈥� such as shipping 鈥� is disrupted by low river levels, it becomes a logistical nightmare.鈥�

Either more vessels carrying lighter loads must be used so that they will sit higher in the water, or alternate modes of transport must be procured, usually at a higher cost. 鈥淭his will have additional knock-on effects, such as higher congestion on the roadways, with increased emissions that will impact already challenging sustainability goals,鈥� he warns.

Low river levels also have dire consequences for other forms of commerce. In the U.S., the federal government has stepped in after western states failed to reach agreements to reduce water use from the drought-plagued Colorado River, issuing cuts that will affect Nevada, Arizona and Mexico.

In France, the water in the Rhone and Garonne rivers is too warm to cool some of the country鈥檚 nuclear reactors, adding to a power crisis. And in Italy, agriculture is impacted by low water levels in the Po River, which feeds the country鈥檚 rice fields.

Pointedly, some economists fear the drought in Europe could tip a region already under stress from the war in Ukraine into recession.

Contact:
Paul Taylor, Editorial Director of 51风流News Network
+1 (212) 653-9607, paul.taylor04@sap.com

Three separate downpours over an eight-day period in Missouri, Kentucky, and Illinois destroyed crops and homes and left dozens dead, including at least 37 people in eastern Kentucky. The torrential rainfall, which reached four inches an hour at times, caused the worst flash flooding in 95 years in parts of Kentucky, which now faces enormous rebuilding costs.

SAP鈥檚 Take

The flooding prompted new warnings from climate experts that the intensity and frequency of heavy rain is likely to increase as a consequence of global warming, along with other natural disasters including wildfires.

While it may not be possible to avoid these weather-related disasters altogether, some data experts, including Michael Lemashov, 51风流head of 51风流BTP and GTM solution architects, say that the technology exists to anticipate the severity of such events.

This could provide some warning of an impending disaster enabling people to reach safety, saving lives and reducing the loss of costly equipment and infrastructure. 鈥淭he science is there,鈥� says Lemashov, who is based in SAP鈥檚 North American headquarters in Newtown Square, Pennsylvania.

Lemashov and his team began examining the problem in the wake of catastrophic flooding caused by Hurricane Harvey in Houston. The team got as far as designing a proof-of-concept (PoC) solution for Harris County officials in collaboration with the team鈥檚 51风流Business Technology Platform () innovation architects, data scientists, and user experience designers from SAP鈥檚 customer innovation and maintenance team.

The proposed solution drew on existing sensor data about water levels around the area and factored in historical data on previous hurricanes to create a prediction model. Lemashov explains: 鈥淏ased on similarities to other hurricanes, we can start predicting how quickly areas will flood 鈥� alerting to the need to evacuate an area within the next two hours, ten hours, and so on. That’s where the science comes in.鈥�

The PoC solution also included a mobile app that enabled citizens to notify authorities of an event, including the type of emergency and where it was happening. The app could then route these requests for help to first responders who could verify the report 鈥� if necessary, using personnel from outside the impacted area. This could help to deploy resources while avoiding blocked roads, flooded underpasses, and other hazards.

Unfortunately, the PoC solution wasn鈥檛 picked up at that time because of a lack of funding. But Lemashov still believes it has the potential to save lives and mitigate the impact of flooding. 鈥淭he technological capabilities are there, and we are being pennywise and dollar foolish by not implementing these solutions,鈥� he says.

He adds that 鈥渋f you think about how much destruction is there and how much we spent on rebuilding, if we instead spent just a fraction of that on predicting and figuring out how to avoid some of the losses 鈥� I think a small percentage would pay for it.鈥�

Lemashov also believes that, by working with partners in academia, the app or one like it could be refined. For example, data could be added about how water flows through a particular topography and the technology could be adapted for use in other circumstances.

By monitoring humidity, wind speed, and other variables, it might be possible to anticipate wildfires and pre-emptively douse extremely dry vegetation with water from the air. If a fire starts, the same data coupled with spot personnel reports, could help evacuate those in the path of a fire more quickly.

Contact:
Paul Taylor, Editorial Director of 51风流News Network, SAP
+1 (212) 653-9607, paul.taylor04@sap.com

Global engineering and IT conglomerate Hitachi is committed to making the 鈥渄ecarbonization of society鈥� a reality. Through its sustainable business practices and its public-private partnerships, it acts as a catalyst for climate action from the inside out.

Hitachi and 51风流believe in bringing profit and planet together. As Alistair Dormer, chief environmental officer and executive vice president of Hitachi Ltd., says, 鈥淒ecarbonization is good for the environment and good for business.鈥�

Utilizing technology solutions to address climate change, Hitachi shows how digitalization and the decarbonization of society can coexist by taking the following steps.

Empowering Employees as Sustainability Ambassadors

Hitachi empowers its employees to step up as sustainability ambassadors and embody its philosophy of 鈥減owering good.鈥� Employees across all levels of the organization are encouraged to deliver sustainability value through business activities and as global citizens. Hitachi uses digital e-learning tools to promote greater environmental awareness and has a specialized group training on environmental risks and compliance once a year. It is also integrating sustainability into executive key performance indicators, providing financial and sustainability performance links to motivate employees to take actionable steps to mitigate climate change.

Decarbonizing Core Operations

In 2021, Hitachi pledged to be carbon neutral in its operations by 2030, as part of its . To reach this ambition, Hitachi uses solar, wind, and other forms of renewable energy at many of its business sites. Nine of its sites across the United States, Europe, and Japan have completely transitioned to using 100% renewable energy. Its rail business in Italy installed solar panels on its factory roof, which is expected to save the site in energy costs, illustrating firsthand that companies can see financial returns on environmental investments. Through these types of transformative changes, Hitachi is closing the gap to reaching its carbon neutral ambitions.

Creating Accountability across the Value Chain

In addition to going green in its own operations, Hitachi pledged to achieve carbon neutrality across its entire value chain by 2050. Business leaders at Hitachi recognize that to advance its bold vision to decarbonize society, it must extend its influence beyond the boundaries of its own business processes. As a lead manufacturer in the transportation industry, Hitachi aims to make sustainable transportation options more extensive and accessible. By reimagining transportation, Hitachi hopes to digitalize the future of transport and simultaneously improve the whole passenger journey while making the environment a top priority.

Scaling with Ecosystem Partners

Hitachi has developed an expansive ecosystem of multi-stakeholder partners to advance its sustainability objectives and has been a key customer of 51风流for over 25 years. Today, Hitachi runs a large majority of its enterprise resource planning (ERP) systems on 51风流software and is transitioning to . To further Hitachi鈥檚 sustainability strategy, it recently held several sustainability workshops for various global business units with SAP.

鈥淒igital transformation plays a fundamental role in the realization of Hitachi鈥檚 ambitious climate goals,鈥� shares Dormer. 鈥淗itachi鈥檚 long-standing partnership with 51风流continues to advance our sustainability efforts and sets us up today to be a profitable and sustainable business tomorrow.鈥�

Hitachi also firmly believes that the public and private sector must collaborate to achieve long-lasting change and cooperates closely with governments and key intergovernmental institutions to tackle climate change together. Hitachi joined the UN Race to Zero campaign and was the first Japanese company to serve as a principal partner of COP26, the recent climate change conference in Glasgow.

Recently, Hitachi worked on an Office of Gas and Electricity Markets (Ofgem) funded innovation project to develop the UK鈥檚 electric vehicle (EV) infrastructure through digital innovation. Working with a consortium of partners, it created a system to collect and analyze data from vehicles and the network of charging stations to optimize EV charging in the most efficient way. By sharing best practices and engaging in capacity building activities, Hitachi not only sets a strong example but also enables other actors to realize their sustainability ambitions.

Finally, Hitachi is investing over over a three-year period on research and development of high-efficiency products, energy management systems, and hydrogen-related technologies to help unlock digital innovation to achieve a decarbonized society. This research will be beneficial not only to Hitachi, but also to other cities, governments, and companies looking to reduce emissions and make a positive impact on the environment.

As a front-runner in the sustainability space, Hitachi offers a powerful example of how organizations can accelerate climate action from the inside out. Hitachi empowers and educates its employees and leverages the power and reach of digital technologies to accelerate its progress towards its Sustainability 2030 plan. 51风流is proud to work with Hitachi and to showcase the innovative ways in which our customers are taking concrete actions towards tackling climate change and working with other global players. We are all in this together.

To learn more about SAP鈥檚 sustainability initiatives, visit .

Vivek Bapat is senior vice president of Purpose and Sustainability Marketing at SAP.

By 2050, according to聽, green hydrogen could supply up to 25% of the world鈥檚 energy needs and become a 鈧�13 trillion (US$15 trillion) market. But until we get there, current challenges of storing and transporting hydrogen need to be overcome first.

Not All Hydrogen Is Created Equal

In the long run, only CO2-free hydrogen produced with the help of renewable energies is sustainable. However, it will be quite a while before there is enough green hydrogen to meet the growing demand. The reason: there is not enough green electricity. Of the many alternative production methods, the most popular today is blue or grey hydrogen produced from natural gas.

In the future, many industrial processes will use green or blue hydrogen or downstream products made from it, such as ammonia and methanol. Hydrogen can particularly help clean up emission-intensive industries like transportation, chemical iron, and steel production, which account for about 7% of global CO2 emissions each year. But the high number of potential users contrasts with the limited availability and high production costs of hydrogen.

Cross-Company Alliances to Accelerate the Value Chain

In line with the聽聽to reduce emissions at least 55% by 2030 and make Europe climate-neutral by 2050, governments have adopted similar sustainability goals and consider hydrogen a critical component to reach them. Companies are also taking action to support green and digital transformations in the EU. For instance, the聽聽was founded by 12 executives from leading European companies to develop concrete recommendations for action and help companies undergo the green transition. This alliance is driven by the conviction that no company will solve the greatest challenges of our time alone. To succeed, companies need to collaborate across value chains, build partnerships, and work together with governments and academia.

One project that has emerged from these cross-company efforts is looking at how to accelerate the complete value chain of green hydrogen 鈥� from production, transport, storage, and sale, to the energy customer. Instead of operating in silos, these market segments need to be linked together.

A Data-Sharing Platform as the Single Source of Truth

The first prototype of a green hydrogen platform based on聽聽looks promising. The platform combines data from all participants of the hydrogen value chain and, therefore, enables better data-driven business decisions. Instead of managing complicated spreadsheets, an energy provider can use the platform as their single source of truth to run simulations and calculate how much energy they can produce, how much they want to sell to the electrolyzer, and how much power they need for vehicles, households, and industries.

For such platforms to be successful, visibility across the value chain of green hydrogen is a prerequisite. Supply chain solution聽聽helps companies to track hydrogen across the entire supply chain, from production to energy customer, via electrolyzers and carriers using blockchain technology. The solution is designed to provide auditable proof of what percentage of the hydrogen is green, blue, or grey. GreenToken can also be used to track聽聽that are caused when hydrogen is imported from far away. Companies can leverage the data to prove that their purchased hydrogen is truly green. They can also see how much CO2 has been created during the journey from production origin to customer site and, therefore, how much they would need to offset to make the hydrogen 100% green again.

Klaus Schimmer is chief innovation architect of Sustainability at SAP.
The article was initially published on the .

51风流is an active participant in the conference, which brings together government and business leaders, international organizations, and other stakeholders in a common cause to accelerate action toward combatting climate change.

LEAF is a voluntary global coalition made up of private-sector businesses and governments to provide finance for tropical and subtropical forest conservation. With US$1 billion mobilized already, LEAF is on track to become one of the largest ever public-private efforts to protect tropical forests. 51风流will contribute $2.2 million to the LEAF Coalition as it works to reverse deforestation in vulnerable areas and help achieve the goals of the to combat climate change. As natural carbon sinks and biodiversity treasures, forests are essential for all life on earth and play an important role in mitigating global temperature rise.

鈥淲e are committed to being part of the solution to climate change,鈥� says Luka Mucic, CFO and member of the Executive Board of 51风流SE. 鈥淎s we accelerate our transformation to be a net-zero company, we continually look for ways to avoid, reduce, and, if needed, compensate emissions. No company or country alone, however, will turn the tide on climate change. So, it is also our priority to collaborate. That鈥檚 why we鈥檙e excited to join forces and accelerate action as part of the LEAF Coalition. We鈥檙e confident that our investment will support nature-based solutions benefitting the environment, biodiversity, and local communities.鈥�

51风流strives to be a leading example of sustainable business practices 鈥� its financial support of LEAF is just one part of the company鈥檚 holistic efforts to fight climate change and restore ecosystems. Since 2009 51风流has aggressively pursued cuts to its own business carbon footprint with a goal of being carbon neutral by the end of 2023 while in parallel continuing its efforts to meet a science-based target to limit global temperature rise to 1.5 degrees Celsius. In addition to LEAF, 51风流also supports the initiative to conserve, restore, and grow one trillion trees by 2030. The to plant 21 million trees by the end of 2025 while continuing to drive carbon-reducing innovations and pursue a science-based climate target. SAP鈥檚 efforts also include active participation in a variety of other funds and initiatives.

And, as a leading provider in enterprise application software, 51风流is also uniquely qualified to help customers optimize their sustainability performance not only in their own company but across their entire value chain. helps organizations measure and understand their efforts relating to climate protection, diversity and inclusion, ethical responsibility, and more.

鈥淪ustainability directly links to SAP鈥檚 purpose of helping the world run better and improving people鈥檚 lives,鈥� says 51风流Chief Sustainability Officer Daniel Schmid. 鈥淭his means creating positive economic, environmental, and social impact. To live up to this ambition, 51风流provides customers with products and services that help meet their sustainability opportunities and challenges. We also lead by example and strive to be a role model for sustainable operations and investments.鈥�

In recognition of its efforts to drive innovation and action toward the creation of genuinely sustainable markets, 51风流was recently awarded the Terra Carta Seal. The seal is awarded to companies whose ambitions are aligned with those of the聽Terra Carta, a recovery plan for Nature, People, and Planet, by His Royal Highness The Prince of Wales.

Learn more about .

Enabling climate action through technology is top of mind for customers in industries around the globe, but the topic was particularly remarkable to the gathering of North American utility organizations at the annual conference in San Diego on October 17-19. These are organizations that not only face the emergency environmental situations intensified by climate change, like hurricanes and fires, but are also daily witnesses to energy consumption and, increasingly, adoption of more sustainable energy sources.

It鈥檚 no surprise then that sustainability was a key track at the conference, addressing head-on the challenges that North American utilities face as they grow and innovate against the looming presence of climate change. With keynotes from world-renowned experts and boots-on-the-ground insight 鈥� 90% of the track sessions were led by customers 鈥� here are the top takeaways on how sustainability is shaping the utilities industry.

Technology Is the Most Critical Tool to Combat Climate Challenges

While utilities have been responding to the impact of climate challenges for decades, the last few years have made the challenge acute: more intense natural disasters, the swift adoption of electric vehicles, and even the overnight shift to remote work. All of these have a significant impact on the energy grid 鈥� and when coupled with an escalation of regulation around sustainability, utilities are working under incredible market complexity.

The response, from industry experts and utility managers alike, was clear: to manage these challenges, companies need to gather, track, and understand their data. And the only way to do that is through and smart software.

鈥淭he most important thing is the ability to measure: to know where you started and where you鈥檙e going to, where the journey ends,鈥� said Brian Roach, managing director of Regulated Industries at SAP. 鈥淲hat we鈥檙e seeing now is a lot of investment in the understanding of, say, your carbon footprint and having a predictable and consistent means of measuring that.鈥�

The Singular Impact of the Electric Vehicle

For the past century, the energy industry has looked more or less the same. But factors are colluding to upend that stasis, and none more so than the electric vehicle. Elon Musk recently went on record in order to power the transition to electric vehicles. That is a tall order for utilities. It鈥檚 also an amazing opportunity to define new approaches in the ecosystem and create new business, particularly when it comes to taking advantage of off-cycle electrical demand.

鈥淭his is where smart technology must be applied: determining when you charge, what the right time of day is, what the rates are, the priorities of what gets charged first,鈥� said Tony Posawatz, president and CEO of Invictus iCAR LLC, in the opening keynote. 鈥淭his is where some of the horsepower that exists in the industry will come to bear.鈥�

The Opportunity Is Now to Transform the Industry

Despite the clear external pressures 鈥� regulations, customer expectations and demand, the fast-evolving climate crisis 鈥� the tone was one of optimism and excitement. This is a turning point for the industry, and organizations are eager to rise to the challenge.

鈥淚鈥檝e been in this industry for decades, and for the first 10 years or so it was pretty stable; there wasn鈥檛 a lot of significant change. But right now, we are in a transformative state. I see it as a huge opportunity for us to be the ones who formulate what the future of utilities looks like,鈥� said Michael O鈥橠onnell, regional vice president of Utilities for SAP, in the opening keynote. 鈥淔or me, it couldn鈥檛 be a more exciting time. You call it disruption; I call it opportunity for us to shape this and change the future.鈥�

Mallory Kuno works within Communications at SAP.

But the race to 鈥渘et zero鈥� for the automobile industry is still in the first lap, and the route promises to be long and arduous. Greenhouse gas emissions from the industry account for more than 9% of global emissions 鈥� equaling those of the entire European Union. To achieve their individual sustainability targets, companies are dependent on each other for reliable and verifiable data.

Decarbonization Is All About the Data

Becoming carbon neutral requires managing the carbon footprint of individual products in the supply chain, and to achieve this companies need transparency into the carbon footprints of their upstream suppliers 鈥� referred to as . The problem is that only 21% of business executives are satisfied with the quality of their environmental data, according to a global research study from SAP.

But more accurate carbon footprint data is on the way. 鈥淯ntil now, companies have been using averages to calculate carbon footprint at a product level because there鈥檚 been a lack of accurate, granular emissions data and no consistent methodology,鈥� said John Revess, director Net Zero Transformation at the World Business Council for Sustainable Development (WBCSD). 鈥淭o remain a part of global supply chains, it will be necessary for companies to accurately calculate the carbon footprint of their products based on measured values,鈥� predicted Revess. As a member of WBCSD, 51风流and other companies are defining a for the exchange of carbon emissions data.

鈥淭o meet our decarbonization goals, we depend on credible data from our suppliers on the carbon footprints of the components we build our vehicles with,鈥� said Ralf Pfitzner, global head of Sustainability at Volkswagen, at the .

The two-day online meeting focused on how companies are applying new technologies to reduce their environmental footprint and manage limited resources. 鈥淲e decided to join 51风流in the co-innovation of a digital carbon tracking tool and database, and this is really exciting because there is obviously a demand,鈥� said Pfitzner.

Volkswagen and 51风流are working together toward decarbonization in other ways. In 2020, their CEOs Herbert Diess and Christian Klein joined the . The Alliance鈥檚 10 European business leaders have committed 100 billion to decarbonizing their companies and products and are calling for far-reaching climate protection measures.

Massive Investments Necessary in Electrification and Digitalization

VW is to help put its decarbonization challenges in the rear-view mirror. The underlying reasons for companies鈥� investments in environmental issues varies, spanning industry regulations (29%) to society鈥檚 approval of their organization (27%) and strengthening company reputation (26%). Uncertainty as to how to embed sustainability into business processes and IT systems is seen as the greatest barrier to implementing plans for action, one study concludes.

Despite the challenges, VW鈥檚 Pfitzner is optimistic about achieving the company鈥檚 decarbonization targets. VW鈥檚 head of sustainability expects digitalization to play a major role in this transformation. 鈥淏eyond green electricity, there are plenty of opportunities where digitalization will help us reduce our carbon footprint, for example by hooking the manufacturing data into the cloud and having more efficient programming of robots,鈥� he said.

Pfitzner reiterated along the entire lifecycle of its cars, emphasizing the need for intermediate milestones. 鈥淭he coming decades will be essential for the transformation of transport and the car industry. By 2030, we intend to reduce the lifecycle carbon footprint of our passenger car portfolio by 30% compared to 2018,鈥� said Pfitzner.

No Carbon Neutrality in Isolation

Although nearly two-thirds of the global economy is covered by net zero targets, achieving them will require systems thinking and collaborative action among businesses of a type and scale that has never been done before, , partner, Deloitte UK. 鈥淭he proof will be in the implementation,鈥� she predicted.

鈥淣o business or country can become net zero in isolation,鈥� said Routh. 鈥淲hether you are looking at energy supply, transportation, infrastructure, government, or communities, they all need to act in a coordinated way.鈥�

One of the biggest challenges for companies, says Routh, is embedding climate transformation into their business strategies and decision-making processes. This requires data transparency, she emphasizes, noting that there is no shortage of data, but the quality and usability of the data must be ensured.

Nicolas Peter, BMW鈥檚 chief financial officer, agrees. 鈥淒igitalization helps in a significant way to increase data quality, and, from an auditor鈥檚 perspective, data quality is key in order to perform his responsibility in the audit process,鈥� he said at SAP鈥檚 Sustainability Summit. Peter left no doubts that BMW is counting on new technologies to help it : 鈥淭he trend to sustainability has to be accompanied by digitalization. There is no alternative,鈥� said Peter.

Digitalization Supports Decarbonization

鈥淐EOs need transparency into their supply chains,鈥� said Thomas Saueressig, head of Product Engineering and member of the Executive Board of 51风流SE. 鈥淭hrough its strategic initiative , 51风流is launching new solutions that help customers reduce their emissions and manage their carbon footprint.鈥�

A new integrated set of solutions announced at the 51风流Sustainability Summit includes 51风流Product Footprint Management, which treats greenhouse gases like a 鈥榗urrency鈥� in the value chain. 鈥淥ur sustainability management solutions enable companies not only to optimize their production facilities according to top line and bottom line, but also according to greenhouse gas emissions,鈥� said Saueressig. As part of several joint sustainability initiatives with Accenture, 51风流and Accenture are working聽to develop new 51风流solutions that address sustainability and enhance existing core technologies.

The Need for Speed

Setting data quality issues aside, the most important factor for transforming businesses to net-zero is speed, said Deloitte’s Routh. 鈥淚 think the world can master this, but my concern is whether it can do it quickly enough. The businesses that are going to succeed are the ones that understand and embrace the urgency.鈥�

Unsurprisingly, many companies are daunted by the seemingly insurmountable challenges, so 51风流and Accenture are taking action to help them.

The Right Time

By now, we all know we must radically change the way businesses run, our impact on the environment, and the inequalities in society. That鈥檚 the only way to ensure a lifestyle that allows us to meet our current needs without compromising the ability of future generations to meet theirs.

The signs are everywhere. Consumers are increasingly aware about the negative environmental impact of products and services, such as fast fashion, single-use plastics, food waste, and excessive packaging. They are demanding accountability and responsible business models from their favorite brands. Governments are increasing regulations around carbon emissions and waste management and are demanding manufacturers to take responsibility for their impact on the environment.

Enterprises are under pressure from investors to include their environmental, societal, and governance (ESG) factors in their financial performance reports. And finally, employees are increasingly vocal about the environmental policies and actions of their employers. Businesses know they need to act, but few are rising to the challenge.

A study by Accenture found while the United Nations (UN) Global Compact鈥檚 Sustainable Development Goal (SDG) program has challenged companies to enhance their commitment to the UN SDGs, only 25% have set goals aligned to societal or environmental needs. Although CEOs acknowledge the universal call-to-action to achieve a better and more sustainable future for all, less than 50% have implemented sustainability into their operations.

The Challenge

As a survey of business drivers and actions to improve the environment at planetary scale conducted by 51风流Insights revealed there are numerous barriers. Almost 7,500 CEOs and other business leaders from 16 industries around the globe participated in the survey. The top three reasons they cited for not moving ahead were lack of clarity on how to embed sustainability in business processes and IT systems, lack of clarity on how potential actions would align with strategy, and difficulty proving return on investment. Other factors include lack of funding, lack of expertise, or lack of support from senior management.

The challenges are daunting, which is why solving sustainability issues is not something individual corporations or governments can do alone.聽 The way ahead involves . In this decade of delivery, partnerships are crucial.

A Will and a Way

Accenture and SAP, for example, have just announced they are expanding their long-term engagement to help companies embed sustainability across the full spectrum of their business operations. This will help unlock new value and realize long-term growth.

By combining 51风流technology with Accenture鈥檚 , the partners plan to jointly create new solutions that can empower companies to accelerate their progress on decarbonizing their supply chains and capture their share of the projected $4.5 trillion economic growth that the .

Together, Accenture and 51风流will develop the new 51风流Responsible Production and Design solution, which will help companies consume fewer resources and build sustainability within the design process. It will also enable companies to apply analytics to the operational, asset, and process data collected across the value chain. Such an integrated view will help them determine clear sustainability goals and metrics across business processes.

As a result, companies will be able to reduce the costs of compliance and extended producer responsibility (EPR) regulation by designing and producing products with .

Accenture also supports SAP鈥檚 initiative, which allows companies in any industry to use analytics to measure and minimize carbon dioxide (CO₂) emissions and lower the carbon footprint across the product life cycle. Adding sustainability metrics across the supply chain provides an integrated view of environmental savings and helps optimize operations.

This type of co-innovation could help solve some of the barriers cited in the 51风流Insights survey. Embedding sustainability in business processes and IT systems and measuring return on investment (ROI) gives enterprises a better understanding of how to fund their sustainability efforts. With time and success companies can gain expertise, set aside funds, and engage senior leadership to support their sustainability journey.

Call to Action

The Accenture study identifies three things leaders anywhere in any industry can do to start implementing and scaling plans of action to address climate change, social inequalities, and resource availability.

• Raise ambition and impact: Leaders must drive change in their own organizations, and through the disruption of market systems.
• Change collaboration: Key players must connect in new ways because meaningful transformation is not a solo sport.
• Redefine responsible leadership: Leaders must embrace their role as change agents to champion the sustainability agenda.

To learn more about the 51风流and Accenture partnership for a sustainable future, join the virtual聽, taking place April 28-29. The event will focus on how companies are reducing their environmental footprints and managing limited resources productively while steering and reporting their businesses holistically.

Follow me on Twitter:

At the same time, the positive environmental side effects of the pandemic have shown us what is possible and how quickly we can drive change. Grounded flights, emptied highways, and shuttered factories caused global carbon-dioxide emissions to fall to levels not seen since 2006 as stay-at-home orders peaked in April 2020. Seven global cities — among them Delhi, Sao Paulo, and New York — experienced a 聽during the lockdown,聽. COVID-19 has led to a drop of 200 million tons of CO2 in China since the start of the outbreak. That equates to more than 10% of total worldwide emissions.

This by no means mitigates, nor makes any less devastating, the human cost of the outbreak; death, quarantine measures, many businesses and households at financial breaking point are but a few of the consequences. But what this has served to highlight is that when it comes to solving the climate crisis, we can create massive change in a very short period of time.

We are at a turning point. Forecasts by the World Meteorological Organization suggest there is a 20% chance that global temperatures will be 1.5掳 Celsius (2.7掳 Fahrenheit) higher than in the pre-industrial average in at least one year between 2020 and 2024. The 1.5掳C mark is the level at which countries agreed to cap global warming at the 2015 Paris Agreement. While a new annual high might be followed by several years with lower average temperatures, breaking that threshold would be further evidence that international effects to curb climate change are not working.

Just as we cannot ignore the pandemic and its impact, we cannot continue to ignore climate change and the contribution of our enterprises. Eighty-five percent of the largest carbon emission-intensive companies use 51风流to manage their processes, representing a huge opportunity. Digital technologies can help save huge amounts of carbon emissions in major industries like utilities, agriculture, and transport alone. These savings could potentially equal 500 billion trees. Just imagine the impact if all industries joined the effort.

Sustainability combines the vision of the Intelligent Enterprise and SAP鈥檚 purpose to help the world run better and improve people鈥檚 lives in the most natural way. It also presents a unique opportunity for us to create a lasting, positive impact for future generations. In 2009, 51风流set to reduce greenhouse gas emissions back to the levels of 2000 by the year 2020. We achieved that goal more than two years early, despite increasing our employee base fourfold. We are committed to becoming carbon neutral by 2025, and we have reduced our net carbon footprint for the past five years, despite strong growth. Just recently, we were again named software industry leader in the Dow Jones Sustainability Indices for the 14th consecutive year.

But we are not only pursuing our own climate goals. We want to help our customers reinvent how to achieve their sustainability targets. In the transition to new sustainable business models, 51风流has a team of innovation services and solutions professionals focused on enabling customers to embrace disruption and transform their business through innovation using intelligent technologies such as Internet of Things (IoT), machine learning, artificial intelligence (AI), blockchain, and advanced data analytics. 聽We are helping companies track carbon emissions from their upstream supply chains to downstream logistics, including procurement, operations, and manufacturing.

Now, we are聽taking this even further by expanding our solutions to allow customers to measure and reduce carbon emissions along their value chain. We will embed sustainability as a new dimension of success into analytical and transactional applications. Or, as my colleague Thomas Saueressig rightly put it: we add a 聽for measuring a company鈥檚 performance.

Beginning earlier this year, we are running trials with customers from industries like automotive, chemicals, food, and engineering. 51风流Product Carbon Footprint Analytics is the first solution available to the market, and our customer Doehler is the first to adopt it. There is more to come, so watch this space for more information!

We want to help our customers to reinvent how they tackle sustainability. We are creating value for them by helping them reach their carbon objectives, and we are helping them make responsible business decisions while taking sustainability into account. They will be able to simulate options for sustainable investment, operational decisions, and managing natural and social resources, just like any other enterprise resource.

With this, 51风流takes another important step in turning our customers into sustainable intelligent enterprises 鈥� ultimately proving that the Intelligent Enterprise can make sustainability profitable and profitability sustainable.

Christian Klein is CEO of SAP.
.

Although Mother Earth could take a deep breath, we still need to wean ourselves off fossil fuels. Greenhouse gas (GHG) emissions would have to be reduced by around 7% every year for the next 30 years in order to not exceed the 1.5 degree Celsius temperature limit set by the . Climate scientists have not therefore stopped sounding the alarm: The largest greenhouse-gas-producing economies must hit the ground running to veer off a destructive path.

Drivers for Sustainable Business

The COVID-19 pandemic has delivered an example of how quickly countries can mobilize against a common threat. Some leaders see a to the pandemic as an opportunity to forge a better world by reducing dependency on fossil fuels and stemming global warming. A new administration in the U.S. under president-elect Joe Biden has , which is almost certain to spur renewed global impetus in the battle against climate change. Biden鈥檚 transition team has already launched their , which carries the same name as SAP鈥檚 Climate21 initiative to help companies become sustainable businesses.

Click the button below to load the content from YouTube.

Always allow YouTube

There are number of drivers 鈥� ecological, economic, and societal 鈥� currently motivating businesses to make their operations more sustainable. Customers are demanding visibility into the carbon footprint of the products they purchase, as are shareholders and employees, who are looking for purpose and sustainability in their investments and livelihoods. Producers are taking notice, not least because national and international regulations may soon require such environmental impact information be provided on product labels and descriptions.

But does transparency have to come at the expense of profitability? No, says Toby Croucher, solution manager for Climate 21 and Sustainability at SAP.

鈥淪ustainable businesses have the ability to measure the carbon footprint of their manufacturing processes and are able to direct investments to the right parts of their business in a timely fashion, enabling them to achieve both strong financial returns and decarbonized business models,鈥� Croucher says. With the introduction of carbon pricing, he predicts strong demand for such solutions.

For those companies aiming to improve their carbon footprint across the supply chain, establishing GHG transparency is not something achievable overnight.

鈥淚t is about establishing long-term value in a carbon-constrained world,鈥� Croucher explains.

Footwear Industry Takes a Step in the Right Direction

Every industry has exemplars of sustainable business practice, but few have gained as much attention as the shoe industry. The world consumes about 25 billion pairs per year, an average of three pairs per person. The result is _e, contributing about 1.4% to total global greenhouse gas emissions.

A pair of . This includes greenhouse gas emissions generated from conception and design, until it is eventually used and discarded or recycled. Some manufacturers are making strides to reduce the footprint of their shoes significantly. , have already gotten off on the right foot by targeting the zero-carbon shoe made of recycled, recyclable, or natural materials.

In 2019, Nike was able to reduce the average carbon footprint of its footwear and apparel products to 7.33 kg CO_2e per pair. As part of its , it plans to power its facilities with 100% renewable energy by 2025, reduce carbon emissions across its global supply chain by 30% by 2030, and divert virtually all of its footwear manufacturing waste from landfills.

It remains to be seen whether sustainability initiatives like Nike鈥檚 will gain traction with Generations Y and Z, but such strategies take time to develop and companies that get off to an early start are likely to reap the benefits sooner. Others may be forced to catch up by regulatory measures.

Carbon Emissions Accounted for Along the Entire Value Chain

In early 2020, 51风流introduced a product that delivers transparency on the carbon emissions of a product across the entire value chain of a business, including production, raw materials, energy use, and transport. 51风流Product Carbon Footprint Analytics makes it possible to compare each activity of a value chain to determine the amount of GHG released to make the product in each location.

鈥淚n the future there will be no difference made between cost, revenue, and GHG performance,鈥� says Bettina Zedlitz, solution manager for Climate 21 and Sustainability at SAP. 鈥淲e think that end-to-end ERP processes need to support multiple sustainability-related attributes of products and services, to gain insights for understanding and optimize the GHG footprint. We can give you the tools to analyze your business models and identify tangible actions to minimize emissions.鈥�

51风流Product Carbon Footprint Analytics is part of SAP鈥檚 Climate 21 program. .

Business transformation expert Herman Gyr said during the session, 鈥淭his is the time to act, the only time to act. This is the moment that we all have to take action. The good news is that a lot of companies are signing onto to more sustainable practices.鈥�

Facts about climate change put the need for urgency into perspective. Today, the world is currently measuring temperatures 1.1 degrees Celsius above pre-industrial levels. The聽聽calls for keeping global temperature rise below 1.5 degrees Celsius in order to prevent the worst effects of climate change. To do this, worldwide carbon emissions would need to be reduced by about seven percent each year for the next 30 years.

According to experts, this goal is virtually impossible, but not because of technological or financial limitations. The money and technology exists to accomplish this goal. The major challenge is not in overcoming these hurdles, but rather in modifying the way we live and the way we do business in order to bring carbon emissions down, along with other climatic factors.

Decisive Action by Leaders

How can we begin to bring carbon emissions down globally? It starts with leaders who are willing to lead by example and pave the way for practices that use fact-based data to reduce waste and emissions. Data insights enable businesses and individuals to reliably track emissions and analyze their impact on the environment, and ultimately the economy and society.

leaders like the European Space Agency (ESA) are keeping the pulse of the planet and using the data from their earth observation satellites to provide reliable resources for businesses and on the environment, which then allows the masses to strategically act. Amid a global pandemic, this seems daunting but during the session, ESA Director of Earth Observation Josef Aschbacher described how they are helping to tackle two crises at once.

ESA is using satellite data from space agencies across the world to maintain a dashboard that analyzes the impact of COVID-19 on the environment. For example, during national stay-at-home orders, air quality improved in some regions, but the dashboard showed how quickly pollution increased when the lockdowns ended. This fragile dependency on human actions stresses the need for long-term solutions.

During the session, the panelists explained how businesses across all industries can take five practical steps to have a lasting, sustainable impact on the environment.

1. Measure your current carbon footprint, then continuously measure it
2. Estimate your legacy footprint, or how much CO2 the business has put into the atmosphere over its lifetime
3. Communicate these measurements to encourage transparency and accountability
4. Commit to action and enroll others into the action plan
5. Contribute to carbon capture solutions and consortiums to work together

Collaboration is Key

With such a massive undertaking, collaboration is an important factor to slow climate change. The , jointly started by ESA and SAP, was developed with this in mind. By integrating satellite data from ESA Earth observation missions and satellite data provided by alliance partners onto 51风流Cloud Platform, the partnership allows easy access, networking, and commercial distribution of data and products worldwide.

In January 2020, 51风流joined the聽CEO Carbon Neutral Challenge, which was issued in November 2019 by Gucci President and CEO Marco Bizzarri. Participating companies must adopt an annual strategy to avoid greenhouse gas emissions and reduce them throughout the supply chain using nature-based solutions. The challenge is designed to not only reduce emissions, but to support biodiversity and forestry worldwide.

Scalability Requires Technology

Along with collaboration, climate change is an issue that requires scalable solutions. For lasting, strategic impact companies need the ability to track emissions across the entire value chain, using data to highlight areas in which improvements can be made.

This is what聽51风流Product Carbon Footprint Analytics聽is all about. It is designed to empower companies to track carbon emissions by cost center, profit center, or plant. With this solution,聽manufacturers聽can look at the data and find the places where emissions can be cut. Technology like this enables companies around the world to not only track their bottom line, but also their environmental impact.

The key to slowing climate change will be data integrated with advanced technologies, collaboration, and the urgency to act. During the session, Gyr said it best: 鈥淚t鈥檚 a new world. So we have to step into it with new tools, new technology, new orientation, and a new mindset.鈥� Together, we can save our planet.

For more on how 51风流is actively working to slow climate change and enabling our customers to join us, read our .

Celebrated climate researcher, author, and expert on climate change Professor Hans-Joachim (John) Schellnhuber stands out as a that calls the shots the way he sees them. As founding director of the and former chair of the , Schellnhuber is an independent global authority on climate change and, at 70, has no career ladder to climb or political ax to grind.

Click the button below to load the content from YouTube.

Always allow YouTube

51风流recently invited Schellnhuber to a virtual event and discussion on the topic of climate change and sustainability. Sustainable business practices are for its own operations, and those of its customers. A聽2019 company-wide survey showed that 94 percent of the more than 100,000 51风流employees agree that sustainability is an important business objective.

Software Code Rules, But Nations and Industry Must Act

51风流employees are proud that the business software they deliver can help reduce carbon emissions 鈥� touches an 51风流system. While software code rules the world, it will take the will of nations and industry action to reverse the destructive path along which climate change is already progressing.

This is both a tall order and not a topic for weak stomachs. Schellnhuber began with a ray of hope, announcing results from a soon-to-be-published scientific paper in Nature Communications: During the first half of 2020, there was an 8.8 percent reduction in CO₂ emissions globally.

Now for the sobering news: The world would have to reduce its carbon emission by around seven percent every year for the next 30 years in order to keep global warming below the 1.5-degree Celsius limit set by the . Considering the world is currently at 1.1 degree Celsius above pre-industrial levels, keeping to that goal is virtually impossible, Schellnhuber says.

Even in a pitch-black room, Schellnhuber will always find a light switch. 鈥淩educing emissions by seven percent every year is almost unthinkable, but we have the money and the technology to do it,鈥� the self-professed agnostic says. For example, consumers can reduce their CO₂ footprints by sourcing energy from renewable sources, eating less beef, and taking the train instead of the plane, he suggested.

The Promise of a 鈥淐yborganic Age鈥�

The most important factor driving global warming is not the energy industry, agriculture, or transportation. According to Schellnhuber, it is the building industry. Some 40 percent of CO₂ emissions results from the construction and operation of homes, offices, skyscrapers, airports, train stations, and other structures. If conventional materials like steel and concrete continue to be used in construction until 2050, this will use up most of the CO₂ budget incorporated into the 1.5-degree Celsius target.

As a 鈥渟ilver bullet鈥� for throttling CO₂ emissions, Schellnhuber suggests switching to building with wood instead of cement, steel, and concrete, which are extremely energy-intensive in their life cycles by comparison. Wood is more sustainable, because it sequesters CO₂ for centuries and acts like a pump, with replanted trees extracting carbon continuously from the atmosphere, he explains. Combining wood construction with new technologies such as artificial intelligence (AI) could enable autonomous operation of buildings to optimize energy efficiency.

Schellnhuber is calling for a revolution in architecture, the combination of construction with organic materials and intelligence through digitalization to launch the 鈥淐yborganic Age.鈥� Climate scientists like him are pointing to real opportunities to alter the current course of climate change.

It is up to consumers and policy makers to take them seriously and adopt needed changes.

is already impacting our daily lives, but we keep burning fossil fuels, cutting forests, depleting nature鈥檚 stocks, and polluting our land and water. The , yet according to a recent the to stop the destruction of nature.

But there are signs of progress and elements of hope in the world of fashion retail world, which happens to be the on the planet. Gary Thatcher, CEO and co-founder of , recently hosted more than 100 research calls with the retail community and reports that there was hardly a conversation where sustainability was not a top priority.

During a sponsored by 51风流as part of the summit, top executives shared insights and exciting new developments. Sammar Farooqi, industries leader for Retail and Consumer at SAP, chaired the webinar.

Click the button below to load the content from YouTube.

Always allow YouTube

Environmental Profit and Loss at Kering

is head of Sustainable Innovation at Kering, a company that , including Gucci and Saint Laurent. She put a pause to the conversation while everyone pondered her question about the amount we would owe Mother Nature for the environmental impact caused by business.

Goulay considers Kering lucky that its chairman and CEO, Fran莽ois-Henri Pinault, believes that it is not only the moral responsibility of a company to behave responsibly when doing business, but it is also important for long-term sustainability.

鈥淚n the world of luxury, we source high-quality raw materials like cashmere, wool, and leather from natural ecosystems, so we have strong ties to those ecosystems,鈥� she said. 鈥淲e need to preserve that biodiversity for聽the long term.鈥�

Goulay went on to explain that Kering developed a capital accounting methodology called (EP&L), which measures carbon emissions, water consumption, air and water pollution, land use, and waste production along the entire supply chain. This makes the various environmental impacts of the group鈥檚 activities visible, comparable, and quantifiable, and enables a conversion into monetary values reflecting the use of natural resources.

“It’s a great tool because it allows us to speak about our environmental impact in financial terms,鈥� she shared. 鈥淏y converting into monetary figures, we better understand the link between impact and nature. That鈥檚 still the language businesspeople are using. Only when we convert our impact into monetary figures can we understand the true impact on nature.鈥�

Kering uses the EP&L methodology to guide its sustainability strategy, improve its processes and supply sources, and choose the best technologies. Of great importance to Goulay is the connection between employee performance and key performance indicators (KPIs).

At Kering, a portion of the bonus of top management is based on their sustainability achievements. It is important for people to understand that profitability is connected to sustainability.

For EcoAlf, There Is No Planet B

was created 10 years ago when avant-garde Spanish entrepreneur Javier Goyeneche decided to create a truly sustainable fashion brand. He chose to stop using natural resources in order to preserve them for the next generation and instead produce recycled products with the same quality and design as a high-end fashion brand.

Today EcoAlf specializes in lifestyle outerwear, footwear, and accessories made from recycled materials. EcoAlf collaborates with partners around the world to reuse plastic waste from the oceans and close the circular loop by reinserting it into the production cycle.

鈥淲e do what we do because there is no planet B,鈥� said Carolina 脕lvarez-Ossorio,聽marketing director聽at EcoAlf.聽 鈥淔ashion is more than just looking good; it’s about doing what is right. We also educate consumers to help them understand what sustainability means across the entire supply chain.鈥�

EcoAlf is keenly aware that an enterprise is not completely circular until you close the loop, so the company is constantly trying to measure and improve its use of materials and the energy in the production cycle. It is also piloting a program to collect clothing聽in stores for recycling so it does not end up in landfill.

鈥淲e know that 90 percent of the impact occurs at the design stage of a product, so we strive to use low-impact materials and the least amount of processes,鈥� 脕lvarez-Ossorio shared. 鈥淲e invest in high-quality and innovation to ensure a long life cycle for our garments, and we help our suppliers to become more energy efficient.鈥�

One example of EcoAlf鈥檚 ingenious projects is the use of photocatalytic treatment. Alvarez-Ossorio explains this technology as basically a coating that kills 99.9 percent of viruses and bacteria while helping to eliminate 40 percent of air pollution around the person wearing the item.

鈥淭he use of photocatalysis is prevalent in other industries such as hospitality or architecture but hasn鈥檛 been applied to textiles yet鈥� she said. 鈥淲e鈥檙e committed to this project, which is part of , the European Union initiative to combat air pollution in European cities.鈥�

Tendam’s Long-Term Commitments

Fashion is an industry where commercial and critical success can be short-lived. Longevity is the result of much hard work, such as attracting new customers while keeping old ones and managing highly complex supply chains.

Ignacio Sierra Armas is聽corporate general manager at , a global fashion retailer established in Spain in 1888.

鈥淎s a company that has been around for 140 years, we realize that our continuity depends on our relevance,鈥� said Sierra Armas, who is also the president of the European Branded Clothing Alliance (EBCA). 鈥淭his means doing what鈥檚 right for the customer day in and day out, year after year.鈥�

Sierra Armas also believes in doing what鈥檚 right for the planet: 鈥淲e鈥檙e in a big industry that has a global impact. We鈥檙e creating jobs; we鈥檙e creating wealth. But as a European company, we also act as a change agent for less developed countries. We understand that long-term commitments and partnerships are essential.鈥�

He went on to cite the example of the current COVID-19 pandemic. Tendam鈥檚 priority was to work closely with suppliers and demonstrate commitment to future projects.

鈥淲e strive to prepare our suppliers for future demand, so they can prepare themselves to meet it,鈥� Sierra Armas said. 鈥淚n spite of the crisis, we need to think long-term. It鈥檚 not about replacing products with low cost and low quality, but about demonstrating the worth of fashion that lasts. We have to find a balance between long-lasting quality and the excitement of new fashion.鈥�

For Tendam, this is a time to refocus on supply chain excellence. Sustainable practices are top of mind. The company was able to reduce 30 percent of its CO2 emissions in just one year, while deriving 80 percent of its energy from renewable sources. And water usage decreased dramatically by 90 percent when the company started treating denim with laser technology rather than washing the fabric in the traditional way.

According to Sierra Armas, 鈥淲e can only be profitable if we are sustainable.鈥�

A healthy, circular way of living requires a shift in mindset. As Kering, EcoAlf, and Tendam demonstrate, it requires continuous effort, a cultural effort, and a massive effort to reduce waste and change our perception of consumption. But every step we take now will be worth one less dollar we owe Mother Nature tomorrow.

.

Follow me on Twitter:

Last year, 51风流updated its聽聽with a new goal to phase out single-use plastics by the end of 2020. Additionally, the company aims to achieve carbon neutrality by 2025, reduce water consumption, develop solutions that help customers to achieve sustainability goals, and enable employees to improve the environmental performance of 51风流and its customers.

鈥淲ith many of our customers striving to become more sustainable, our objective is to provide products and services that meet their sustainability challenges and opportunities,鈥� says Christian Klein, CEO of 51风流SE, who is convinced that in today鈥檚 world consumers are not only looking at the price and quality of a product, but at a brand鈥檚 degree of sustainability.

鈥淎t the same time, it is our responsibility to lead by example,鈥� he says 鈥� and 51风流employees agree. In a recent employee survey, 94 percent said the company should pursue sustainability, and 87 percent said they actively contribute to SAP鈥檚 sustainability goals.

鈥淓mployees play a critical role in eliminating single-use plastics,鈥� 51风流Chief Sustainability Officer Daniel Schmid says. 鈥淭hrough projects like 鈥楤eyond Single-Use Plastics,鈥� which was launched in July 2019, employees are helping us identify opportunities and find alternatives at all our locations.鈥�

Shared Purpose

Eliminating single-use plastics has united 51风流employees around the world with a common goal. The project began last year as a company-wide initiative, with the Global Real Estate and Facilities, Marketing, and Procurement organizations identified as focus areas. A joint commitment was made to implement measures and processes based on circular economy principles to reduce waste,聽reuse items, and聽recycle materials.

Implementation is part of SAP鈥檚 Global Environmental Management System that includes 55 sites, each with local plastic reduction targets. Passionate employees across the globe are bringing the program to life.

51风流Labs China, for example, identified areas where single-use plastics are utilized and then shared employee feedback with the Global Real Estate and Facilities team to implement changes and launch events to help reduce waste.

In 51风流Ireland, a group of sustainability champions started the 鈥淧ower of One鈥� campaign to spread toolkits and tips for reducing single-use waste and raise awareness among colleagues and catering partners. Single-use plastics such as yogurt cups, bin bags, and sandwich wrappers were replaced with more sustainable alternatives.

At 51风流Labs Hungary, colleagues started discussions with facility management and their corporate caterer on how to become more sustainable. As a result, single-use plastic cups, straws, and stirrers disappeared and the use of water bottles and glasses increased.

In the U.S., 51风流offices in Naperville, Chicago, have been plastic-free for more than 15 years, and now have been joined by company offices in Boulder, Colorado. Meanwhile the office in Bellevue, Washington, is and part of the for any plastic that enters the building.

These are just a few examples of initiatives at 51风流locations worldwide.

Waste Not, Want Not

The other focus area of the 鈥楤eyond Single-Use Plastics鈥� project is increasing internal and external awareness about the global plastic problem. Earlier this year at the World Economic Forum in Davos, Klein announced SAP鈥檚 commitment to a cleaner ocean by 2030. 51风流intends to help achieve this objective together with customers, non-governmental organizations (NGOs), governments, and partners by providing them with the tools and solutions to help eliminate waste and maximize resource productivity.

As Klein and other sustainability champions know, plastic itself is not the problem. Plastic has revolutionized the world in many ways 鈥� from sterile medical packaging to safe food storage. It has provided great benefits for societies everywhere.

鈥淲e need plastic, but without a doubt single-use plastic is one of the greatest contributors to waste on the planet,鈥� Klein says. 鈥淭he problem is what we do with it and how we dispose of it, so it does not end up in the ocean or littering the land.鈥�

An Ongoing Journey

Other 51风流actions to help reduce plastic pollution include Plastics Cloud, which helps customers manage the material more effectively through collaboration among business, government, and consumers across the plastics value chain. 51风流has also joined the Ellen MacArthur Foundation Network, a leading circular economy initiative, and sponsors ocean activist Emily Penn.

These steps are all part of SAP鈥檚 decade-long journey toward becoming a more sustainable enterprise. The company also is committed to transparency and remains the only global software company that discloses its sustainability performance in a holistic integrated report.

According to Luka Mucic, member of the Executive Board of 51风流SE and chief financial officer, 鈥淥ur approach to quantifying聽the on our operating result聽is a significant differentiator, generating interest from investors and customers.鈥�

More Work Ahead

When it comes to single-use plastics, the pandemic has helped to accelerate positive shifts in some areas. The Global Real Estate and Facilities team has taken advantage of office closures to take inventory of canteens and other spaces in the quest to eliminate single-use plastics by the end of the year. The team works closely with Change Management colleagues to identify challenges and gather advice on how to expedite the overall process.

The company鈥檚 move to digital events has also helped eliminate the need for single-use items. However, challenges remain. Progress made introducing reusable cups, dishes, and cutlery in many office canteens must now be carefully weighed against the hygiene concerns at some locations.

Nevertheless, the urgency of eliminating single-use plastics is mounting. As natural historian David Attenborough says: 鈥淭he one thing we all have to do is simply not to waste. Don鈥檛 waste plastic; don鈥檛 waste food; don鈥檛 waste power. Live within our means. That鈥檚 what we should be aiming for.鈥�

Follow Judith on Twitter:

Consider this: We are using resources 1.75 times faster than the planet can regenerate. And with another billion people projected by 2030, we will need two Earths to sustain our needs. There is a unique window of opportunity for us to manage the turnaround, but it is closing, and we need to act fast.

Since 1970,聽the , an international research organization, has hosted and calculated Earth Overshoot Day. For the first time in years, this critical milestone occurs later in the year. This disrupts since 1970 where we continue to reach our planet鈥檚 natural limits earlier and earlier 鈥� for example, we reached that point November 4, 1980, and August 7, 2010.

Sadly, we owe this reversal to the COVID-19 pandemic, at tremendous human and economic loss. At the same time, we will need to work hard to keep these environmental gains. Time is of the essence.聽Without a healthy planet, there can be no basis for a return to healthy societies, resilient and restorative economies, and shared prosperity.聽Although聽COVID-19鈥痠蝉 , we clearly remain on an鈥�痑苍诲 .鈥疻e must act now聽to shape a sustainable recovery.

Sustainability: A Business Imperative

Putting aside moral obligations or ethical responsibility, it makes good business sense. It does not take an accounting expert to understand that it is not good to overspend. What business leader would dare report that they spent the company鈥檚 entire annual budget on August 22 and will run on a deficit for the rest of the year?

So why aren鈥檛 we applying this logic to stay within our common budget, the Earth鈥檚 limits? One reason: We need better data quality and a worldwide reporting and steering committee that spans across countries, governments, and other relevant organizations.

This isn鈥檛 the only reason. Breaking it down to the level of a single company, this is also rooted in partially outdated assumptions of how a company creates value. As discussed with key stakeholders on the , much of today鈥檚 accounting system is still derived from Luca Pacioli鈥檚 thinking back in the 15th century, when he popularized the system of double accounting and the world was not yet facing today鈥檚 challenges, including climate change and resource depletion.

Luckily, the mindset is shifting. We are moving beyond Milton Friedman鈥檚 idea that the purpose of business is merely to generate profits. In my conversations with peers, customers, and investors, I observe that, increasingly, business executives share our belief at 51风流that steering a company holistically 鈥� considering the financial but also social and green bottom lines 鈥� leads to better management decisions and better performing and more resilient companies.

For several years we have been investigating the聽聽as they relate to the performance of our business. Each year, we share those findings, which are publicly accessible in the . Identifying the connections within our own operations is only the first step. As part of聽our engagement in the Value Balancing Alliance, we are working with like-minded businesses to transform how to measure and value a business鈥� overall societal impacts and dependencies. While this effort is still at the beginning, all dimensions are interwoven in today鈥檚 world.

Company leaders will need to do much more than manage their top and bottom lines to keep investors and other stakeholders happy.聽They will also need to manage their 鈥済reen line.鈥� This requires openly disclosing, through aggregated reports,聽how their company is improving the environmental as well as social footprint across its value chains.

We Need a Low-Carbon, Circular Economy

Businesses can make a massive impact because they drive global production and consumption and can contribute to . While businesses are often cast as culprits in the environmental crisis, they also play a key role in the solutions 鈥� for example, by driving the transition to a low-carbon, circular economy.

Earth Overshoot Day painfully visualizes that our current economy is largely based on a 鈥渢ake-make-waste鈥� model, where materials are extracted, manufactured into goods, used, and then disposed of; it is a linear economy. We must jointly work toward a circular economy that supports the continual use of resources and creates a closed-loop system that minimizes the use of resource inputs while reducing waste, pollution, and carbon emissions.

expects that in the next 10 years, circular economies will replace linear economies. With the becoming clearer, showing that 45 percent of CO2 emissions can be tackled by transforming the way goods are made and used, we need to accelerate our support for this transformation. Digital technologies can help scale circular economies. That is why 51风流focuses on providing solutions and services that that can pave the way for a better tomorrow.

Tech Innovation Enables Circular Economy and Climate Action

Key focus areas for 51风流include 听补苍诲听. We want to help companies understand, minimize, and disclose the full carbon footprints of their products and service, and to better manage material flows through their supply chains.

As part of the , 51风流launched 51风流Product Carbon Footprint Analytics to help analyze the accumulated amount of greenhouse gases and other environmental impacts created by the procurement, production, and logistics of services and finished goods. We also build capabilities into our analytical and transactional systems that help customers : responsible design, responsible sourcing and marketplace, responsible production, responsible consumption, and resource recovery and reuse. One example is the Plastics Cloud enabled by Ariba Network, which makes it easier for companies to procure recycled plastics.

We all have a role to play in this. Here at SAP, , and our objective is to create positive economic, social, and environmental impact within the planetary boundaries.

Both the pandemic and Earth Overshoot Day show how critical it is to manage the planet鈥檚 limited resources carefully while ensuring fair distribution. Solving the global challenges that we are facing takes systems thinking and multi-stakeholder collaboration. No single person or entity can master this alone. I invite everyone to be part as we build back together to be more inclusive and restorative, allowing all of us and future generations to thrive.

Daniel Schmid is the chief sustainability officer at SAP.

51风流is one of seven global companies that already have 1.5掳C-aligned reduction targets, and the first in Germany.

The company has responded to a call to action issued by a broad coalition of business, civil society, and United Nations (UN) leaders to make the critical and necessary contribution to keeping global temperature increase within 1.5掳C above pre-industrial levels.

鈥淲hile much of SAP鈥檚 ability to create a sustainable future lies in how we enable customers to create positive economic, social, and environmental impact through our product portfolio, SAP鈥檚 ambition has always been to lead by example and be a credible role model,鈥� said 51风流Chief Sustainability Officer Daniel Schmid. 鈥淭o contribute to the UN Sustainable Development , we aim to become carbon neutral in SAP鈥檚 own operations by 2025. But our responsibility goes beyond that. In line with our vision and purpose to help the world run better and improve people鈥檚 lives, we are committed to join the global movement of leading companies and align our businesses with the most ambitious aim of the Paris Agreement to prevent global warming exceeding 1.5掳C. Our strong cloud strategy will be a key driver based on efficiency gains in our data centers and a significant increase of our cloud customers.鈥�

Setting Ambitious Emissions Reduction Targets

In June, global leaders 鈥� including Her Excellency Mar铆a Fernanda Espinosa Garc茅s, president of the UN General Assembly; Lise Kingo, CEO and executive director of the UN Global Compact; Patricia Espinosa, executive secretary of the UN Framework Convention on Climate Change; John Denton, Secretary-General of the International Chamber of Commerce; and SDG Advocate Paul Polman, former CEO of Unilever 鈥� collectively issued an .

The letter challenges chief executive officers to set ambitious targets for their companies in line with last October鈥檚 , which made the case for limiting global temperature rise to 1.5掳C above pre-industrial levels.

Companies are asked to set verifiable science-based targets through the , which independently assesses corporate emissions reduction targets against scientific best practice.

Building a prosperous, net-zero carbon economy by 2050 requires a transformation of unprecedented pace and scale, with decisive business leadership and investment in climate solutions supported by ambitious government policies. By setting ambitious policies and targets in line with a 1.5掳C trajectory, governments give business the clarity and confidence to invest decisively in the zero-carbon economies of the future.

鈥淲e need concrete, realistic plans by 2020 to reduce greenhouse gas emissions by 45 percent over the next decade, and to net zero by 2050,鈥� said Ambassador Luis Alfonso de Alba, UN Special Envoy for the 2019 Climate Action Summit, and one of the key advocates for the campaign. 鈥淐limate change requires an unprecedented effort from all sectors of society, and business leadership demonstrated by setting science-based targets at 1.5掳C will send strong market signals as we look to identify the scalable and replicable solutions needed to secure a world where no one is left behind.鈥�

鈥淲e have less than 11 years to fundamentally change our economies or we will face catastrophic consequences,鈥� said Lise Kingo, CEO and executive director of the UN Global Compact, an SBTi partner. 鈥淔or the first time, we are seeing business and climate leaders coalesce around a common call to action, sending a powerful signal that science-based target setting presents a significant opportunity for businesses to step up when it comes to tackling climate change and limiting global warming to 1.5掳C.鈥�

Paul Simpson, CEO of CDP, an SBTi partner, said, 鈥淭he science is clear: In order to limit the catastrophic impacts of climate change, we must ensure warming does not exceed 1.5掳C. The ambition is high, but it鈥檚 achievable, and science-based targets give companies a roadmap for getting there. Corporations worldwide have an unprecedented opportunity to be at the very forefront of the transition to a net-zero economy 鈥� and there is no time to lose.鈥�

To join the movement and take action,
visit: .