London – 听today unveils the results of its annual revealing that 8 in 10 (83%) UK leaders will maintain or increase their investment in sustainability action by 2026. Yet, despite these intentions, UK businesses continue to create their own barriers to environmental progress.

The global study of over 4700 business leaders, including over 300 from the UK, is the third edition of SAP鈥檚 annual Sustainability Study exploring the key motivations and challenges facing organisations looking to reduce environmental impact at scale.

It finds that while 31% of UK businesses say environmental action is already having a strong impact on revenue and profit opportunities, just 12% have assigned accountability for this work to the Chief Financial Officer (CFO). While almost one-in-three (28%) have difficulty proving return on investment, making long-term progress harder to prove and sustain.

Sustainability as a Financial Incentive, Not Burden

In the past, measures to safeguard the planet may have been seen as just a moral or ethical obligation but the business mindset is evolving and today, UK businesses are increasingly seeing the long-term financial benefits. In fact, almost two-in-five (37%) report that revenue and profit opportunities are a leading motivator for sustainability action.

Against a backdrop of inflation, supply chain issues and a rising cost-of-living, UK leaders are steadfast in their environmental commitments as they view sustainability action as a means to offset economic uncertainty. Now, over half (57%) of UK leaders expect to see a positive financial return on their sustainability investments within the next five years.

Commenting on the research, Renaud Heyd, Chief Financial Officer, 51风流UKI said: 鈥淥ur study shows that it鈥檚 time that finance leaders realise that having a solid sustainability action plan makes business sense. It is imperative to attract funding from investors who need to make their portfolio greener, and to get a competitive advantage as customers demand sustainable products throughout the supply chain. As taking steps to improve the planet becomes more than just an ethical question, and UK leaders see long-term material gains, CFOs have the authority and expertise to champion the environmental roadmap.鈥�

Building Their Own Sustainability Barriers

Yet, despite the link between environmental action and long-term revenue generation, SAP鈥檚 research shows that UK businesses are not involving finance leaders in taking sustainability actions and this is holding back progress.

Currently, just 5% of businesses have assigned responsibility for setting the strategic direction on sustainability action to their organisations CFO. Instead, it falls to an array of other leaders, including the Board of Directors (25%), CEOs (21%), Chief Sustainability Officers (15%) and Chief Operating Officers (10%). The study suggests this approach isn鈥檛 working to translate the economic value of sustainability progress across the business. As many as 38% of UK businesses cite funding issues as one of the top five barriers to taking sustainability action, while 20% cannot get the support from senior stakeholders to take concerted action.

Falling Into the Measurement Trap

Matters are made worse for UK businesses who continue to find that measurement is a stumbling block to progress, and ultimately economic returns.

Just 37% can track scope 1 emissions (greenhouse gas emissions produced directly) to a 鈥榮trong degree鈥�, while 10% are not able to track scope 3 emissions (those produced indirectly across the supply chain) at all – causing many leaders to rely on estimates or 鈥榞ut feel鈥� when disclosing environmental impact. UK leaders are also struggling to adopt a standardised reporting framework, with over one third having no consistent methodology for calculating the environmental impact of their products.

This is being further exacerbated by the use of conflicting measurement methods for reporting. While leaders are overwhelmingly using direct measurement to track energy emissions (83%), resource availability (82%), fresh water availability (75%), solid waste (74%) and materials use (73%), they rely upon guesswork and estimates for air pollution (83%), nature loss (78%), supply chain impact (69%) and water pollution (60%). This is leading to almost nine in 10 (89%) reporting difficulty with gathering or analysing data for regulatory compliance, at a time when UK leaders are already having to navigate an assortment of changing regulations, taxes and levies associated with carbon footprint.

Stephen Jamieson, Global Head of Circular Economy Solutions, SAP said: 鈥淚n a climate where stricter regulations are now requiring businesses to disclose environmental impact, leaders who cannot accurately report this data risk allegations of greenwashing, and fines and reputational damage. Focusing on implementing a standardised reporting framework will ensure businesses are substantiating their green credentials, getting measurement right, and setting in motion steps that will directly lead to long-term impact. Organisations can use this data to redesign products, reuse materials, reduce waste and regenerate natural systems across the supply chain 鈥� in effect, powering the circular economy.

鈥淥ur portfolio means we are well-equipped to support businesses and ensure they are in the best possible position to navigate these challenges in the years ahead. This will allow leaders to unlock further investment, reap the financial rewards of taking sustainability action, comply with changing regulatory requirements, and reach net zero in the future.鈥�

Commenting on the research, Edward Manderson, Lecturer in Environmental Economics at the University of Manchester, said: 鈥淭he connection between sustainability action and financial performance will play a critical role in shaping environmental progress in the future. Over the last few years, academic literature has shown that firms benefit financially from sustainability measures, and SAP鈥檚 research demonstrates that this is indeed a reality for businesses who are looking to recover fast from the pandemic environment. As this research shows, business strategy and sustainability action are now so intertwined that there is simply no excuse for organisations if they fail to address shortcomings in their environmental performance and enact meaningful change.鈥�

For more information about SAP鈥檚 Sustainability Report 2023 .

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About SAP

SAP鈥檚 strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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LONDON, UK 鈥� 7 September 2023 – (NYSE: SAP) and today announce a visionary new partnership to show how carbon accounting could be standardised for business customers by piloting the recently launched 51风流Sustainability Data Exchange (SDX).

51风流SDX enables BT to collect, trace and share carbon data across its own supplier base, providing unparalleled visibility into the carbon footprint of its business products and services. BT can then share this information directly with business customers when they purchase products through . Furthermore, BT can complement this with data-driven insights from its and to help customers optimise their own IT for both carbon and energy.

Key to the decision to select 51风流SDX was its adherence to the carbon data interoperability standards set by the (PACT), hosted by the World Business Council for Sustainable Development (WBCSD). This means that global and UK business customers do not have to implement their own carbon accounting platforms to calculate, collate and share emissions data. Instead, they simply request it through 51风流SDX for their BT products and services.

BT is sending a strong signal of intent to standardise sustainability reporting across global business customers鈥� value chains to help them听tackle and drive environmental progress. This will also contribute to the delivery of the pledge to help customers avoid 60 million tonnes of carbon dioxide emissions by 2030.

Sarwar Khan, Global Head of Digital Sustainability, Business, BT, said: 鈥淭ypically, value chain emissions represent a greater proportion of a business鈥� carbon footprint than operational emissions. Tracking, measuring and acting on these and bringing more suppliers and partners on the journey will not just accelerate net-zero targets, but set a new precedent for sustainability reporting. Collaboration fuels progress and access to data is fundamental to getting it right.鈥�

鈥淭he lack of standardisation in sustainability reporting has been a roadblock to progress for too long鈥� commented Ryan Poggi, Managing Director of 51风流UKI. 鈥淭his creates confusion and an inability to validate real change. Our partnership with BT gives us an opportunity to refresh the guidelines and offers a blueprint for a universal standard in sustainability reporting. The aim is to create an environment for organisations to transparently tackle global challenges together.鈥�

51风流SDX merges granular and accurate carbon data with financial transactions on the . It provides businesses with unmatched insights into their environmental footprint and standardises how to communicate learnings and action across value chains. In adopting 51风流SDX, BT can request product-level carbon data from key suppliers for its business customer services, support smaller partners to calculate their carbon footprint and securely share and standardise this information across its value chain. To build scale, BT is working with key partner Cisco to deploy SDX to receive product carbon data for core network devices, simplify and secure data exchange with business customers backed by its global connectivity services, and boost traceability.

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LONDON, UK鈥�斺��鈥�(NYSE: SAP) today听announced听it is investing in scientific forestry听research听with听听to听enhance听nature-based solutions听to climate change, and听improve the听efficiency of听carbon removal听from the atmosphere.听This research reaffirms SAP鈥檚 commitment to helping organisations operate sustainably by ensuring these processes are having the greatest impact on the planet.听听听

With a听total听woodland area comparable to听, the UK is primed to push the boundaries of new climate research. SAP鈥檚 donation will contribute听to The Carbon Community鈥檚 landmark carbon study听funding听2,000 trees,听with a focus on supporting the advancement of scientific knowledge and new approaches to growing trees.听This听much-needed research and field study will听advance听knowledge on听the most efficient ways to remove听carbon dioxide from the atmosphere听using听trees and soil.听

The听donation will also help plant the first 500 trees as part of听51风流Forest UK, found in The Glandwr Forest in the Brecon Beacons, Wales.听

Previous听carbon accounting schemes have primarily听researched听the opportunities to capture carbon in trees,听however,听this investigation听rooted in science, will also focus on how to maximise carbon stored in the听soil,听considering听the role of biodiversity, as it is believed 75% of carbon is below the ground.听听

Dr.听Colin Averill, ETH Zurich Crowther Lab, said:听鈥淭his is an important world-first field trial which will measure the carbon sequestered in trees and soil on a scope and scale not seen before.听听

鈥淐ombining鈥痶wo nature-based treatments, soil microbiome inoculation and enhanced rock weathering, to understand their ability to accelerate and enhance forest carbon sequestration is truly听unique, and听is one example of how The Carbon Community is pushing the frontiers of nature-based climate solutions.鈥�听

In addition,听51风流is听aiming to听further听educate听those who are interested in听sustainability听with the听launch听its听new听Circular听Economy听course, Helping Business Thrive in a Circular Economy,听which is available to all听and launches in October 2021.听The听five-week online course, with听four听hours of content per week including weekly assignments and a final exam, is completely free and will showcase how circular business practices create value and听can help us tackle the current problems听that听the planet, people, and modern businesses are facing. 51风流is committed to advancing the understanding of a circular economy and highlighting听how technology听can be used听for climate action.听听

Each individual that completes the course will receive a formal certification of achievement from SAP, and in addition, for every individual that pre-registers, 51风流will dedicate the growing of one tree, of the intended 2,500, to help support this exciting field-trial which is being led by a world class team of scientists.听Sign up here听to pre-register.听听

Michiel Verhoeven, Managing Director, 51风流UK & Ireland, said: 鈥淎t SAP, sustainability is an integral part of our vision and purpose, and we are continually looking at how we, and our ecosystem of customers and partners, can progress. This investment, led by the fantastic team of scientists at The Carbon Community, and the launch of our new Circular Economy course, have the potential to advance all of our consciousness about how organisations can play their part and take action to address our climate challenges.鈥�听

Charles Nicholls, Co-Founder and Trustee, The Carbon Community, said:听鈥淲e are delighted to have the support of 51风流UK & Ireland听for The Carbon Community鈥檚 landmark field trial.听SAP鈥檚听willingness to support both planting trees and breakthrough scientific research is progressive and听refreshing. Tackling the climate crisis requires us all to reduce carbon emissions, to remove carbon dioxide from the atmosphere and to work together. Thank听you SAP听for your support.鈥濃��听

Visit the听51风流News听Center.听Follow 51风流on Twitter at听.听

The post 51风流Partners With The Carbon Community On New Scientific Forestry Research To Drive Climate Change Efficiency appeared first on 51风流UK News Center.

The financial fortunes of investors have, in the past, been littered with various trends and failures. Perhaps one of the most noted historically being the 听of 1720 when many investors lost their fortunes and their lives. Today we now have enhanced regulatory scrutiny in place and greater transparency into financial assets and investments, and the trading of slaves 鈥� thankfully 鈥� is no longer legal.

While as a society and a global economy we have concentrated on the wealth and economic security of the world, this has often been at the expense of our environment and climate. The poorest countries have suffered most from climate change widening the gap between wealth and poverty. Now climate change and societal opinions are also threatening wealthier countries and there is increased interest from governments, financial institutions, and corporates in better tackling this topic.

Most significantly, there is increased interest among investors, both institutional and individual, who recognise that investing in more sustainable products and services drives better outcomes for their returns and for the world they live in. In fact, Bloomberg estimates that ESG assets grew to .

A McKinsey & Company report – 鈥� also states: 鈥楳ore institutional investors recognise environmental, social, and governance factors as drivers of value. The key to investing effectively is to integrate these factors across the investment process.鈥�

Reliable research by and confirms that good sustainability and ESG practices correlate with lower operating costs, better profitability and superior share price performance.

The role of Financial Services in driving sustainable outcomes

In driving better outcomes for society and the environment, the role of financial services is far greater than governing and reporting on their own ESG performance. It is to steer sustainable development by environmental and socially conscious financing, underwriting, claims management and investment decisions. Regulatory bodies globally now consider financial services firms to be part of the solution to the problem. Reputational damage is also key as seen from the impact of the Rainforest Action Network report which was published in 2019 and states: 鈥樷�� the climate crisis demands not just that banks seize the many opportunities for profit in the clean energy evolution, but also that they be prepared to fundamentally redraw their business models away from financing dirty energy. These banks鈥� clean financing is in any case swamped by the volumes they funnel into fossil fuels.鈥�

There have been some earlier adopters of the climate change and diversity responses from large financial services organisations, and two great examples are:

• Munich Re: In the 1970s, Munich Reinsurance Company published its first assessments of the dangers of climate change, warning that rising greenhouse gas emissions would alter global systems and could lead to more floods, storms and droughts.
• State Street Global Advisors (SSGA): In March 2017, SSGA erected 鈥淔earless Girl鈥� in anticipation of听听the following day. It depicts a girl four feet high, promoting female empowerment, originally placed staring down the 鈥淩aging Bull鈥� of the New York Stock Exchange. Fearless Girl听was commissioned to advertise for an index fund that comprises gender-diverse companies.

Stakeholder pressures drive greater focus

Sustainability is at last being taken more seriously in financial services and greater transparency is being mandated by regulators 鈥� e.g. the coming into effect on 2021.

More and more financial services firms are signing up to the and , while there are over 3,000 investment and assets managers singed up to the (UN backed) .

The Bank of England, under its 鈥淥ne Bank Research Agenda鈥� follow up study, assessed how climate change could affect a central bank鈥檚 ability to meet its . This included an assessment of the linkages between insured and uninsured losses on insurance firms and other financial institutions, such as banks and concluded that climate change, and society鈥檚 responses to it, present financial risks which impact upon the bank鈥檚 objectives and can cascade through the whole financial system. We should also not forget the potential impact of increased financial crime on the environment and the yet to be understood impact of Covid-19.

Collaboration is needed to avoid 鈥済reen-washing鈥�

Making and sustaining change will require a true collaboration between governments, financial services firms and corporate organisations. Data and reporting standards must be aligned for full transparency and better decisions. Shared platforms need to be developed to ensure this collaboration is successful and we can expect to see more and more taxonomies as the world gets fully behind sustainable outcomes.

We all need to make and drive better decisions and contribute to improving the world we live in, a world we bequeath to our children and their children. However, pending stronger regulatory governance and reporting and greater consumer awareness, ESG ratings and sustainability claims are exaggerated at best and deliberately misrepresented.

Unilever is a great exemplar for sustainability, having done more than make green investments by making sustainability part of its听corporate identity. BrewDog has also made significant investments and launched a series of unprecedented initiatives to help fight climate change, and recently announced it was the first international beer business to become carbon negative.

At the other end of the scale are companies such as Happy Egg Company, which claimed its eggs came from 鈥渉appy hens鈥� when they are produced by over 4.3m hens in cages.

Please no more 鈥済reen-washing鈥�. As consumers we are getting too smart to believe in PR spin about how free-range or ethical the products we buy are, how trustworthy the financial firms are that we deal with and how ESG the finds we invest in are 鈥� and our world is far too precious for that.

Look out for further articles which will examine more specifically the roles of banks, insurers, and investment managers in driving sustainable outcomes.

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The global COVID-19 pandemic has accelerated this trend. According to , in the first half of 2020 net inflows into ESG funds in the US reached $21 billion, nearly equalling the total amount for the entirety of 2019, which was in itself a record.

In a world where consumer and investor decisions are increasingly influenced by sustainability credentials, ESG is now seen as a base for opportunity, growth and value by asset managers. The major global investor now 鈥榝ocuses on integrating ESG risk and opportunity factors into investment decisions鈥�. According to the latest data from 2018, a third of investors are using ESG assessments to decide what companies to exclude from their portfolios, while an additional third are integrating ESG into investment decisions.

s aim to make financial services an agent of change by requiring the sector to report the ESG performance of its investee companies. And, the EU regulation听on Sustainability-Related听Disclosures, taking effect March 10, 2021, hopes to enhance transparency as it requires asset managers to integrate ESG considerations into their practices.

Key stakeholders in the corporate reporting world, such as the IFRS, the UK鈥檚 FRC and ESMA, have made it clear that more standardised, relevant and comparable information is required to support this new regulatory environment. For businesses, this increased focus on their ESG reporting provides an opportunity to showcase sustainability in their business models, link it to performance, and capture a lower cost of capital.

Yet it also represents a clear challenge. Many companies have made strides towards giving ESG a greater focus. However, it remains the case that a great number are still far too reliant on legacy ESG reporting tools, manual processes and a lack of dedicated resource. Most businesses are fully cognizant of the direction of travel for ESG reporting and they鈥檙e making headway with more sophisticated reporting, providing investors with the assurance they need alongside internally highlighting inefficiencies that need reforming.

However, there is significant work needed to provide investors with the clear, authoritative and error-free reporting that they demand to take advantage of the opportunities many believe ESG will provide.

From a company鈥檚 perspective, failure to rise to the challenge of improved reporting means that investment may find its way elsewhere to competitors. As investment flows become more and more influenced by the quality of integrated reporting and sustainability performance, the cost of capital for better performers will continue to fall relative to that of poorer performers.

With sustainable investment portfolios around the world, the business case for ESG reporting improvement and transformation is clear. It鈥檚 now down to businesses to harness the new tools available to them, and to make changes that will benefit their business, their investors and the planet.

To find out more about this, and how our Corporate Sustainability Reporting and Performance Management solution can help, read our new or check out our .

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As concerns around climate change and water scarcity continue to grow,听sustainability听across a wide range of dimensions is听being brought to the forefront of the way听utilities听operate.听Many of these dimensions are captured in the听measures of environmental, social and governance (ESG),听which collectively establish a听鈥渟ustainability鈥�听framework for assessing a company鈥檚听performance听in everything听from greenhouse gas emissions to employee health and safety.听

ESG reporting is transforming from being a听鈥榥ice-to-have鈥� to a听fundamental business听need. Utilities are听doubling-down听on efforts to establish a comprehensive reporting methodology that听takes into account听the expectations of听a听number of听stakeholders, including financial investors, regulators,听customers and听employees.听

Meeting the ESG reporting听and performance management听challenge听

The听increased focus on听sustainability performance 鈥� as represented by ESG听鈥撎�and the听associated听demand for high quality data, has grown faster than companies鈥� ability听to provide听it in a robust, automated, auditable way.听Now, as customers, investors and regulators seek more transparency,听current ESG reporting capabilities need to be assessed听against their capability to deliver听evolved听requirements.听For the most part, they fall short.听

Reporting of operational performance, including ESG, tends to be reliant on听manual processes听and, as a result, reported听data听is often听incomplete and not听standardised.听ESG performance, or the impact on ESG performance, can鈥檛 be integrated into investment decisions as it is not linked to financial data.听听This makes it challenging for the Board to steer the business as ESG data is not generally as available or trusted as financial data for investment decisions.听

The lack of solutions that enable real time听insight into ESG听performance听has in the past prevented utilities from experiencing the full benefits of better听sustainability听reporting听and performance management.听But now,听with ESG becoming a boardroom issue, practical steps are being taken to update how sustainability reporting is carried out,听based on an enterprise-grade platform which provides trusted data to stakeholders inside and outside听businesses.听

Benefits of improved ESG reporting听

If utilities can听transform how they report on ESG issues, the benefits they receive听will听extend to diverse areas of their operations. For example, credit鈥痳ating agency听听has found that ESG considerations are now a factor that lenders take into consideration when offering loan pricing.听听听

Linking loans and other forms of finance to听corporate sustainability performance听(and carbon emissions in particular)听is听one recent innovation听鈥�听but听it will not be the last method investors use that requires advanced ESG data.听This means that utilities听need to ensure the platforms they use for ESG reporting听are able to听support听a robust due diligence process that finance providers will undertake when testing achievement听against听contracted听ESG targets.听

Beyond this,听ESG performance听will听also provide competitive advantages and unlock value creation. For example, through zero carbon听energy听or water听provision,听increased customer loyalty and differentiated pricing.听听

These kinds of听developments听are part of the future for听the entire utilities industry. And听they听make new听ESG听technology decisions paramount for businesses that are serious about investment and prosperity, as well as sustainability.听

Corporate Sustainability Reporting and Performance Management by SAP, allows you to understand and manage your environmental impact and report against a range of different ESG standards. To find out more about this, and how SAP鈥�s capability can help, read our new or check out our .听

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