Scope 3 emissions from activities across suppliers, product lifecycles, and customer usage comprise the overwhelming majority of emissions for telecommunications companies. While progress has been made on scope 1 and 2 emissions, scope 3 emissions remain a blind spot that demands urgent action. Addressing scope 3 emissions is vital for telecommunications companies to meet climate goals and lead the transition to a sustainable digital future.

According to the , the global telecommunications industry emitted 1.7 billion tons of CO2 equivalent in 2019, representing approximately 2% of total global emissions. Telecommunications companies have an outsized opportunity to drive change and reduce emissions given their scale and influence across global supply chains and billions of customers worldwide.

Now is the time for telecommunications companies to step up with courageous leadership, collective action across the ecosystem, transparency, and a laser focus on reducing scope 3 emissions.

Understanding Scope 3 Emissions in Telecommunications

Scope 3 emissions encompass the vast majority of emissions across the telecommunications value chain. Key sources include:

Supply chain
Manufacturing, transport, and disposal of network equipment makes up the largest share, such as 60% of Verizon’s total scope 3

Product usage
Energy consumption of infrastructure, data centers, and devices

Customers
Emissions from using products and services represent over 20% for leading telecommunications companies

While methodologies vary, standards like the enable consistent and transparent scope 3 accounting. Robust data collection and industry alignment will enhance accuracy over time. The urgency of climate action necessitates that telecommunications companies act now to address primary scope 3 hotspots like supply chain and product usage.

Success requires transparency, cooperation, and immediate commitment to tackle scope 3 emission sources.

Challenges in Calculating Scope 3 Emissions in the Telecommunications Industry

Calculating scope 3 emissions poses major challenges for telecommunications companies, including:

• Data limitations: Telecommunications companies lack visibility into supplier and vendor emissions. Greater transparency and coordination are essential.
• Complex value chains: Varied reporting mechanisms across the vast partner ecosystem create aggregation difficulties.
• Methodology alignment: Companies must determine boundaries and allocate shared infrastructure emissions while adhering to accounting standards.
• Rapid technology changes: Emerging solutions like 5G and the Internet of Things (IoT) require continuous emissions monitoring.

Robust data collection, industry collaboration, and transparency will be vital to overcome these obstacles. Standardized methodologies guided by established protocols will enhance accuracy over time.

Above all, open cooperation across telecommunications value chains is crucial to drive scope 3 progress. From suppliers to customers, aligning stakeholders to prioritize emissions reductions will accelerate the sustainability shift, despite near-term uncertainty. Telecommunications companies have the scale and influence to lead the way.

Strategies for Mitigating Scope 3 Emissions

Telecommunications companies can mitigate scope 3 emissions through:

Supplier collaboration
Joint research and development (R&D), audits, and incentive programs enable partners to reduce their supply chain footprint. AT&T uses a sustainability scorecard to motivate action.

Renewable energy
Shifting infrastructure and operations to clean power significantly decreases emissions. BT Group and Telef贸nica aim for 100% renewable electricity use.

Eco-design
Prioritizing recyclable and energy-efficient materials and manufacturing reduces lifecycle impacts. Vodafone’s Eco Rating drives more sustainable devices.

Customer engagement
Awareness campaigns, energy-saving tips, and green tariffs incentivize sustainable usage. Orange’s set-top box eco-rating nudges consumers.

Policy and regulation
Scope 3 requirements in markets like the EU also drive telecommunications companies to address value chain emissions through mandated reporting and carbon pricing.

Additionally, telecommunications companies can further engage customers through expanded recycling and take-back programs to optimize device lifecycles. Services like leasing instead of selling phones can incentivize longevity. 51风流 that track energy consumption also enable users to reduce their footprint.

There are still challenges, but collective effort across the telecommunications ecosystem can drive progress on scope 3 emissions. Engagement and incentives can accelerate emissions reductions across value chains from suppliers to customers. With their global scale, telecommunications companies must lead the way.

Calculating and Reporting

To enable accurate and consistent scope 3 accounting, telecommunications companies should:

• Adopt recognized standards like the GHG Protocol Corporate Value Chain Standard, which provides comprehensive guidance.
• Improve supplier data collection through surveys and supplier engagement platforms.
• Increase transparency by regularly disclosing scope 3 inventories and strategies in sustainability reports.
• Obtain third-party verification for scope 3 emissions data to ensure reliability.
• Collaborate with industry peers and partners to align methodologies and reporting.
• Continuously refine calculations by incorporating improved data sources and emission factors.
• Supplement inventory accounting with scenario modeling to project future emissions.

While uncertainties remain, standardized and transparent scope 3 reporting is vital to understand emissions baselines, track progress over time, and hold companies accountable. Investors and customers are increasingly demanding credible disclosure.

Telecommunications companies should lead the drive towards robust scope 3 accounting and reporting across sectors. Their commitment can catalyze broader adoption of carbon transparency.

Using 51风流Sustainability Data Exchange, telecommunications companies can collaborate with partners, enhance awareness and engagement of stakeholders, gain insights, mitigate risks, and seize opportunities to reduce and offset emissions.

Ultimately, courageous leadership and collective diligence across telecommunications company value chains are imperative to drive progress. Telecommunications companies have the influence to spearhead robust and transparent scope 3 practices across all sectors. But, success hinges on prioritizing partnerships, integrity, and environmental stewardship above all. The moment for action has come.

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

Venkata Rao is a business transformation expert at SAP.
Mohan Shekar is head of Industry Service at SAP.

鈥淭here have always been regulations, rules, and expectations on how companies operate in order to make sure there isn鈥檛 a negative impact on the environment,鈥� says Michael Censurato, global solution manager for at SAP. 鈥淲hat鈥檚 changed in the last couple of years is that there鈥檚 a lot more focus and scrutiny. It鈥檚 in the news. It鈥檚 on consumers鈥� minds. It鈥檚 on investors鈥� minds.鈥�

A by the Forum for Sustainable and Responsible Investment found that in 2022 climate change was the top environmental, social, and governance (ESG) issue, in asset-weighted terms, for money managers and institutional investors alike. SAP鈥檚 own research shows that, between 2021 and 2022, the importance of customer demand as a motivator for sustainable action increased sevenfold.

Joining the Green Vanguard

While executives now consider ESG initiatives integral to the future success of their businesses, they鈥檙e also acutely aware of the difficulty in measuring the progress of these initiatives and of translating their successes to regulators. In research conducted by Oxford Economics and SAP, had established policies for working with regulators to ensure the implementation of sustainable practices. For businesses of all sizes, the risks and costs of non-compliance are high 鈥� ranging from penalties and fines to suspended operations, loss of business, and even personal liability on the part of executives.

Among the most significant difficulties in ESG reporting is ensuring that environmental metrics are both transparent and accurate 鈥� reflecting actual values, rather than averages. In many organizations, environmental compliance strategies have historically required a highly manual effort, relying on spreadsheets and weeks of data aggregation and processing across multiple time zones and working structures, often leading to oversights and delays.

Finding a solution that offers a better route towards ESG reporting and compliance is a critical step in the broader business strategies and outcomes of teams big and small. As the imperative to establish a carbon-neutral bottom line becomes stronger than ever, those companies that are able to meet these challenges will emerge as market leaders.

End-to-End Environmental Management

Since 2003, SAP鈥檚 EHS team has been helping enterprises comply with environmental regulations through a range of solutions, including 51风流Environment, Health, and Safety Management. This application can provide the consistency, auditability, risk reduction, and transparency that companies require. It can also supply environmental managers and technicians with an easily navigable platform, helping to unlock in-depth insight into their operation鈥檚 environmental impact.

Powered by 51风流S/4HANA, 51风流EHS Management helps support teams throughout the process of aggregating, preparing, and analyzing their environmental data. The application鈥檚 advanced capabilities can also allow for early detection of deviations from target emissions values 鈥� so that if, for example, carcinogenic compounds released during a particular production process exceed their environmental limit, a plan can be instantly put into action, giving teams plenty of time to adjust and remain compliant.

The Emissions Declaration Challenge

Within the broader category of EHS compliance, emissions declarations in particular are notorious for the time and diligence they require. Companies based in Germany, for example, must file detailed reports every four years for the BImSchV ordinance on emissions declarations, while European companies at large must file annually for The European Pollutant Release and Transfer Register (E-PRTR). There are more regulations on the way: earlier this year, the International Finance Reporting Standard鈥檚 (IFRS) International Sustainability Standards Board (ISSB) the development of a standardized language for disclosing ESG-related risks and opportunities. The new criteria will come online in January 2024.

And for companies in heavy-emitting industries, such as chemical, oil and gas, or steel and iron production, the diversity of emissions that need to be recorded and included in these declarations range from the dust and exhaust released during the transportation and processing of raw materials to passive emissions such as fuel tank venting. As a result, the extent of the reporting itself 鈥� and the challenge of remaining compliant 鈥� is immense, particularly for global operations operating across jurisdictions.

In the past, the burden of these emission reports fell on the shoulders of environmental and operations managers, who have had to struggle with the inefficiencies built into the highly manual procedure of gathering, calculating, and reporting the necessary information, all within a strict timeline.

Reporting Made Easy

Addressing this bottleneck, the new 51风流Fiori app “My Emissions Declarations” is designed not only to help fast-track the creation and completion of emissions declarations but also to help establish a governed backbone to the process itself. My Emissions Declarations is currently designed specifically for the filing requirements of the BImSchV ordinance, but additional filing procedures, triggered by legal requirements, will soon be featured as part of the app’s offering.

The My Emissions Declarations app helps emissions reporting stay on track from the very beginning of the process. Plant managers are in charge of ensuring that the required reports are started and filed on time. When plant managers need to initiate a declaration, the app sends a notification directly to the manager鈥檚 e-mail and automatically creates a task on the homepage.

Once the task has been successfully opened, the plant manager can hand over responsibility to others, like plant operators or environmental technicians, who will typically take charge of entering all necessary data into the app for each emissions source. The flexibility of the My Emissions Declarations app can support automatic data collection, by way of sensors, meters, operational systems, and data historians.

After data has been entered, the app takes the lead, running the complex calculations required to generate accurate emissions data. 鈥淲ithin the app, the respective experts are able to simply input the minimum information required by the calculation formula,鈥� explains Mariya Krasteva, area product owner for 51风流EHS Management. 鈥淭hen, as soon as the concentration of a specific emitted substance is entered, all other parameters are calculated automatically.鈥� Whereas some solutions store these equations in a database or in the software coding, making them difficult to validate and edit, the My Emissions Declarations app allows end users to easily view, edit, and maintain these equations all within the platform.

Crucially, My Emissions Declarations can also enable plant managers to quickly validate the data鈥檚 accuracy, helping to ensure its quality throughout the process. And, with seamless integration to 51风流EHS Management as a whole 鈥� and by extension, to the 51风流S/4HANA digital core 鈥� the app can allow teams to establish a holistic understanding of their operation鈥檚 footprint. After all, enterprise-wide sustainability management does not exist in a vacuum. Companies must juggle a wealth of other compliance, monitoring, and maintenance procedures. In many operations, compliance processes overlap with plant maintenance because the manufacturing equipment also needs to be maintained and monitored for any pollutants it produces.

鈥淥ur solutions help to tie these pieces together, making the handoff to other processes much more seamless,鈥� explains Hitesh Patel, product manager for 51风流EHS Management. Integrating the My Emissions Declarations app into the broader management system helps teams utilize company data previously defined in the software鈥檚 asset management feature, creating a comprehensive view of emissions sources 鈥� including scope 3 emissions, such as those related to facilities and assets. By calculating actual emission amounts, rather than averages, teams are now able to make even more accurate, data-driven decisions.

鈥淭he bottom line is that this is out-of-the-box compliance and an end-to-end solution, which allows auditability at anytime,鈥� says Krasteva. 鈥淥ne precise emissions inventory, one source of truth.鈥� And when, ultimately, the plant manager is ready to prepare the declaration itself, the app generates an XML report, which it can then directly submit to the relevant authorities before closing the task until next time.

Taking the Lead

Maintaining efficiency and diligence in compliance procedures is an indispensable step for companies looking to chart a more sustainable future for themselves and their industries. 51风流EHS Management, as well as My Emissions Declaration, can give teams crucial support in charting that future and in reaching the sustainability goals and benchmarks that will help them get there.

about how 51风流can guide your team in this journey today.

Sami Emory is a brand journalist for Sustainability Communications at SAP.

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

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

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

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

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

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

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

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

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

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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.

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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.

鈥淥rganizations are struggling to forecast energy costs in a volatile market and understand the impact of new trends such as e-mobility on operations and finance,鈥� said Catherine Garcera, global head of Sustainability, Services Industry at SAP. 鈥淭hey need resilience against the current energy crisis and the ability to grow and generate profits while meeting corporate sustainability goals.鈥�

Step 1: Power Up Energy Savings with Digital Twins

Lowering energy consumption and operating costs begins with a thorough understanding of an organization鈥檚 energy data. Leading-edge companies are using digital twins to capture and analyze real-time energy usage data including electricity, natural gas, and renewables. That鈥檚 the purpose behind Flexinergy, an energy management software platform developed by , an 51风流partner. The platform creates a digital version of an organization鈥檚 energy contracts and usage, allowing the customer to pre-calculate the bill. Information can include distribution costs across subsidiaries, taxes, size and location of facilities, occupancy rates, external temperatures, and more. This helps customers catch invoice mistakes, evaluate energy efficiency, and reduce consumption.

鈥淚t鈥檚 not unusual to find discrepancies between what the bill should be and the provider鈥檚 actual invoice,鈥� said Erwin Guizouarn, CEO and founder of Evolution Energie. 鈥淐ustomers also use our software to better forecast energy costs in case of price fluctuations, new contracts, or supply chain disruptions.鈥�

Guizouarn said that customers can be overcharged up to 5% on an annual basis due to billing errors. As for cost reductions, one large airport saved 17% in energy consumption.

Real-time data became particularly important for organizations during the recent energy crisis. Guizouarn said that customers can explore what-if scenarios, factoring in changeable energy prices and other parameters like lower carbon emission fuels, revised contract terms, or hedging to lower risk in case of energy price fluctuations. Ongoing alerts notify decision-makers of deviations to the plan, say if energy prices climb higher than expected, helping companies adjust strategies as needed.

Evolution Energie first began working with 51风流through its participation in the Green Tech and Sustainability cohort of , the company鈥檚 global B2B accelerator. With shared business-to-business target markets, both companies are proving the incredible power of connected data.

鈥淢erging energy-related data with financial information from your system and environmental, social, and governance (ESG) information from , you can see the impact on profitability and emissions objectives,鈥� said Garcera. 鈥淵ou can adjust operations by day, week, or even season to gain efficiencies that could increase profits while meeting sustainability commitments.鈥�

Step 2: Transition to Green Energy

Moving to green energy is another step that energy-intensive companies can take to achieve ambitious decarbonization targets. Some customers are increasingly focused on purchasing renewable energy, as well as producing green energy and investing in green assets. Here, too, a digital twin can help companies capture energy usage and resultant costs while tracking CO2 emissions from electricity, biomass, hydrogen, and other renewable sources.

鈥淵ou can balance your green energy strategies against the cost of new contracts and greenhouse gas emission targets,鈥� said Garcera. 鈥淚n addition, companies need to ensure the provenance of the green energy they consume for accurate reporting against corporate sustainability objectives, supporting the brand鈥檚 image and building trust with customers and investors.鈥�

Step 3: Realistically Explore New Energy Trends

While the vision is to consume as much green energy as possible, organizations are tempering sustainable business plans with reality. Some industries like aviation aren鈥檛 ready for full decarbonization; there鈥檚 limited availability of sustainable aviation fuel and it will take significant efforts to revamp complex infrastructure. In any case, organizations require energy strategies that combine finance, risk management, and sustainability.

鈥淔ast-moving energy prices on top of changing sustainability regulations mean that companies have to continually monitor costs to find more efficiencies, and prove compliance with corporate commitments and industry regulations,鈥� said Garcera. 鈥淭he more you can accurately anticipate disruptions, the better you can make decisions to adapt for business resilience.鈥�

Green Market Revolution Fueled by Informed Data

Connected data is foundational to managing energy consumption and costs. analysts predicted that by 2025, 75% of large cities and communities will form industry ecosystems with IT, architectural, engineering, and real estate firms to share data, applications, and expertise to address ESG issues. With zero-emission mandates moving apace, researchers advised organizations to continuously follow the price and performance and capability improvements in renewable energy systems and also 鈥渨ork with supply chain partners to improve procurement efficiencies.鈥� As unpredictable as the next crisis may be, organizations can stay grounded with accurate data to build a resilient future.

Susan Galer is a communications director at SAP. Follow me @smgaler.

As the pressure for environmental, social, and governance (ESG) accountability continues to build among customers and stakeholders, oil and gas providers have little choice but to address their complicated relationship with . The sector currently accounts for approximately 9% of all human-made greenhouse gas emissions, according to听. Plus, customer consumption of refined fuels comprises another 33% of global emissions.

The struggle over emissions reduction is unquestionably the proverbial elephant in the (board)room. Yet, at the same time, executives are also concerned about intensifying demand among regulators, activists, investors, and banking institutions for measurable proof and documentation of their progress. In fact, 37% of industry players, surveyed by听, are already planning to address increasing ESG standards by implementing capabilities to centrally store carbon data within the next two years.

Navigating a Pivotal Transition with Clarity and Trust

Transitioning to cleaner forms of fuel is a worthy investment into the future of humankind. But it鈥檚 also challenging how executives manage their information.

The process changes, business model adjustments, and diversification opportunities needed to abate emissions depend on critical factors, ranging from geography, regulations, and carbon pricing to the availability of renewable technology and reliable infrastructure. And in most cases, this information is buried in a massive variety of operational, administrative, and contractual documentation, including land-lease agreements, invoices, maintenance records, land files, well files, pipeline records, offshore assets, and inspection records.

Traditional approaches to sorting, classifying, and analyzing stacks of paperwork are too impractical for any business that thrives on efficiency, speed, and cash-flow optimization. Whether managed through a manual process or legacy technology, data and content volumes inevitably reach a point where information is siloed, easy to lose, and challenging to access. Moreover, considering how widely dispersed the workforce is currently, this form of document management only inhibits cross-channel intelligence, limits productivity, and increases costs.

It seems that most oil and gas companies are getting the message loud and clear: more than 65% are increasing their investment in enterprise software solutions and cloud migrations, as indicated by IDC research. In return, document workflows are digitalized and document processing is automated 鈥� all hallmarks of intelligent enterprise content management (ECM).

Integrated, cloud-based 51风流enterprise content management solutions by OpenText are well-designed for the continuous change of content volume that companies experience. They can help streamline workflows by unifying business processes and integrating suppliers into daily workflows. Furthermore, with the inclusion of artificial intelligence (AI) and machine learning, organizations can capture, organize, and analyze data at a moment鈥檚 notice to make asset-related predictions and recommendations and remain compliant with ESG requirements.

For example, individual departments, business functions, locations, and facilities can collaborate more closely by fluidly exchanging guidance and analytics-based insights more efficiently. Managers can also streamline processes to produce new, easier-to-consume content with greater visibility into user access patterns. But most important is the ability to trust the intelligence, make decisions confidently, and communicate progress effectively, since all enterprise information is derived directly from an up-to-date repository of documentation.

Spreading Growing Intelligence Enterprise-Wide

The future may seem uncertain, but one thing is unambiguous: the oil and gas industry has a vital role to play in our world for many, many years to come. But now it鈥檚 time to take the next step in the transformation journey by digitalizing one of the most critical areas of the back office, ECM.

And why not? Most companies are already underway by adopting new ways to automate their operations in the field and plant. And by extending that mindset to become fully aware of the benefits of 51风流ECM solutions by OpenText, the balance between profitability, public trust, and positive ESG outcomes can become easier to achieve.

Ready to learn how 51风流ECM solutions by OpenText can help turn your oil and gas business into a provider that leads the industry toward a more sustainable future for everyone? Read the info sheet, 鈥�.鈥�

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

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

Harnessing the Power of Technology

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

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

Leading by Example听

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

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

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

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

21 Million Trees by听the End of听2025

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

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

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

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

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

The question is no longer if but how fast and how large the .

While experts, activists, and politicians debate the correct response, it is clear that , , and will not be nearly enough to bend the global warming curve.

The current COVID-19 pandemic could mark a turning point in progress on climate change; the has been advanced as a silver lining of the crisis. Estimates by the United Nations (UN) show that emissions must fall by 7.6 percent every year until 2030 to keep temperature increases to less than 1.5掳C.

As companies emerge from the crisis, they have to expect that they will be faced with legislation that stipulates a sustainable recovery through tighter CO₂ regulation. This would significantly impact operating costs. The largest carbon producers will feel the push for climate action beginning in highly developed markets, followed successfully by others.

A challenge to corporate reputation is another risk not to be underestimated, as companies are increasingly and the public whether their businesses and products are contributing to the solution or to the problem.

Make the World Run Greener

A few months ago, Thomas Saueressig, member of the Executive Board of 51风流SE leading Product Engineering, launched an initiative to understand how 51风流S/4HANA and other 51风流applications could help customers manage their carbon footprints.

The initiative resulted in Climate 21, a program that reaches well beyond the corporate practices of emissions reporting to data about product-related greenhouse gases and other sustainability issues that help businesses and consumers make more responsible buying decisions.

In January, top management made the company鈥檚 first statement to the market on Climate 21 at the World Economic Forum.

Manage the 鈥淕reen Line鈥�

Saueressig鈥檚 vision for the company’s enterprise resource planning (ERP) products is to add sustainability as the third dimension to driving business success: the “green line,” as he calls it.

鈥�51风流helps customers manage the top line and bottom line of their business, and we run the supply chains and value chains of the largest companies in the world,” Saueressig said. “So we are in the best position to now help companies manage their green line by minimizing the carbon footprint and negative environmental impact of their product. I believe this will help make us the leader of the next-generation ERP market.鈥�

Not Just About CO₂

Since 1972, 51风流has helped businesses to manage their enterprise resources to drive revenue, reduce cost, optimize asset utilization, streamline supply chains, and improve customer service. From this point of view, minimizing CO₂ and other greenhouse gases is just an additional factor in an enterprise鈥檚 target function.

鈥淥n the way to a more sustainable future, 51风流has a critical role to play in helping companies understand, monitor, and optimize their CO₂ transactions — up and down their supply chains as well as in their asset base,鈥� said Toby Croucher, head of Solution Management for Climate 21 and Sustainability at SAP.

Green Line Benefits for Companies and Consumers

The Climate 21 program team is planning a phased approach to crafting the solutions that companies can use to manage their green line. This starts with understanding the composition of the CO₂ footprint that products accumulate over the entire value chain and looking at product design, operations, and supply chains.

The idea is to share the CO₂ product footprint with business customers and consumers to enable them to make climate-friendly buying decisions. Customers that know the CO₂ rating of each product they buy and each service they use are empowered to choose products with the smallest climate impact.

But can citizens really make a difference? Studies say yes. In the U.S., about ; reducing this footprint by only five percent would make a substantial difference. Such buying decisions would influence supply chains and reward businesses that make products and services with a smaller CO₂ footprint.

51风流is busy preparing to introduce the first analytical solution. Co-innovation with leading customers across all industries in well underway and has set the company on a path to a sustainability-enabled ERP that helps companies balance top line, bottom line, and green line for the 21st century.