SAP Co-CEO Accepts CEO Carbon Neutral Challenge

SAP Co-CEO Accepts CEO Carbon Neutral Challenge

SAP Co-CEO Jennifer Morgan, the first American woman appointed to the SAP Executive Board as the President of SAP in the Americas and Asia Pacific Japan, has shared how the German company takes it to the next level of sustainability.

SAP has joined the CEO Carbon Neutral Challenge, a call for companies to take urgent action and implement a 360° climate strategy to create immediate positive outcomes, issued by Gucci President and CEO Marco Bizzarri. Gucci is part of Kering, which has declared total carbon neutrality.

Jennifer Morgan, Co-CEO and Member of the Executive Board, said:

“SAP is not only a world-leading innovation and technology company, we are a world-leading sustainability company.”

“Marco Bizzarri’s CEO Carbon Neutral Challenge is complementary to our own commitment to helping businesses use innovative technology to achieve their most ambitious climate goals so they can take responsible actions and make a positive difference,” the SAP Co-CEO added.

Addressed to CEOs across all sectors, Marco Bizzarri issued an open letter after the Climate Week NYC 2019. The letter encouraged company leaders to bring their company to be part of the CEO Carbon Neutral Challenge. This entails companies to take full responsibility and accountability for the total GHG emissions generated by their business activities.

Gucci President and CEO Marco Bizzarri explained:

“As businesses, we must all own up to the total GHG emissions our activities generate and, at the same time, invest in nature-based solutions to protect our world’s critical forests and biodiversity, simultaneously helping to mitigate climate change.”

Bizzarri also commended SAP for joining the cause. He said:

“I applaud SAP’s commitment to join the CEO Carbon Neutral Challenge. The leadership they are showing by doing so will help create a future in which society can thrive and business can succeed, while nature is restored and protected.”

The CEO Carbon Neutral Challenge recognises the immediate need to address the GHG emissions generated in a company’s supply chain. The initiative proposes to companies to adopt an annual approach to first avoid, reduce and restore. Then, as a final measure, organisations must offset the total remaining emissions within their operations and across the entire supply chain (Scopes 1, 2 and 3 of the Greenhouse Gas Protocol) through nature-based solutions, which will support the protection of critical ecosystems and help mitigate climate change. 

Along with Gucci and SAP, The RealReal and Lavazza Group also joined the CEO Carbon Neutral Challenge.

SAP’s Approach

The ERP software company had already established an approach to the CEO Carbon Neutral Challenge. SAP’s initiative aims to help its customers transition to a low-carbon economy and deliver on their climate goals including:

  • Creating greater efficiency, transparency, and accountability of carbon and emissions across the entire supply chain
  • Innovating new processes and business models
  • Helping companies engage with industry, government and their consumers

SAP leverages intelligent technologies such as IoT, machine learning, AI, blockchain and advanced data analytics as it transitions to new sustainable business models that would enable its customers to embrace disruption and transform their businesses through innovation. The ERP company can help companies track carbon emissions from their upstream supply chains to downstream logistics, including procurement, operations, and manufacturing.

SAP also aims to be a role model for climate action. Back in 2009, the German company set to reduce greenhouse gas emissions back to the levels of 2000 by the year 2020. SAP exceeded its expectations by accomplishing the goal two years ahead of its plan. It happened at the same time the organization increased its employee base fourfold. 

In 2017, SAP has committed to make operations carbon neutral by 2025, which will include direct emissions and a selected subset of indirect emissions from supply chains and services. Also in the same year, SAP became part of the Science Based Targets Initiative and was the pioneer in Germany with a science-based carbon reduction target for 2050.

The SAP Integrated Report, a full-year financial, social, and environmental performance in one integrated report, is considered one of the most progressive in the tech space. It contains a detailed analysis of its emissions and impacts and serves as the company’s UN Global Compact Progress report. In 2018, SAP has also started reporting on its contribution to the UN Sustainable Development Goals (SDGs).

In the same light continuing its advocacy on addressing environmental challenges, just this January 2020, SAP has joined the World Economic Forum’s Global Plastic Action Partnership community, which is determined to create a cleaner ocean by 2030. 

“SAP is committed to a significantly cleaner ocean by 2030,” said Christian Klein, SAP Co-CEO and Member of the Executive Board.

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