The UN Global Compact, which was established at the organisation’s headquarters in 2000, is the world’s largest and highest-level multinational program for corporate social responsibility (CSR) and sustainable development. It is dedicated to encouraging ethical corporate practices for shared value and helping accomplish the 2030 Sustainable Development Goals (SDGs).

In China, the local network strives to encourage more Chinese enterprises to sign up for the UN Global Compact, and to push more companies to adopt and apply the organisation’s 10 principles on the environment, labor rights, human rights, and anti-corruption. Aside from these objectives, it aspires to improve the interaction between Chinese companies and the international community, enhance the global reputation and image of local businesses, and promote the long-term development of Chinese firms in the context of economic globalisation.

Recently, China’s UN Global Compact Network held a selection activity for the “Enterprise Best Practices for Achieving SDGs” to better understand and summarise the sustainable development of local enterprises and propel the UN agenda. SAP has been named to this list for the third year in a row, demonstrating the company’s commitment to advancing the implementation of SDGs over the course of several years. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

The cloud solution SAP Product Carbon Footprint Analytics, which was developed by the SAP China Research Institute, was named the best practice in the “Carbon Peak and Carbon Neutral” category. As a key component of the Climate 21 initiative, the cloud product allows for more clarity and transparency on the carbon footprint of products along their full value chain, including manufacturing and raw material consumption as well as transportation and logistics.

Enabling Green Development Through SAP Digital Technology

In order to make carbon emission data more visible and quantifiable, SAP digital technology and solutions are being developed with the goal of assisting enterprises in integrating carbon reduction strategies into their business processes and making their green development objectives a reality. Dr. Li Ruicheng, SAP Global Senior Vice President and Director of SAP China Research Institute, shared in a press release statement:

“The application of digital technology can help companies measure and calculate carbon emissions in a dynamic regulatory environment, and take effective measures to implement low-carbon strategies and achieve green development.”

“SAP China Research Institute has more than 4,000 R&D (research and development) engineers. With strong local innovation strength, we have been deeply involved in 90{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of SAP’s global product research and development, and continue to contribute to the digital transformation and sustainable development of customers in China and around the world,” Dr. Li Ruicheng further explained.

The “dual carbon” goal has emerged as a significant priority for Chinese companies today and local businesses are also actively exploring the implementation of low-carbon strategies in their operations. Last year, an in-depth meeting was held between the Panjin City Government and SAP to exchange their perspectives on the “Green Development Platform Project” in Shuangtaizi District in China where SAP digital software and solutions will play a critical role in the achievement of China’s environmental objectives.

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With the present environmental pressures to comply with current climate change regulations, more and more organisations are now implementing solutions that create long-term value for sustainability and optimal economic performance.

In a recent interview with GovInsider, U Chee Lioy, Industry Cluster Lead for Public Sector at SAP Southeast Asia, talked about the role of data in tackling climate change. For example, SAP Product Carbon Footprint Analytics helps measure the carbon footprint of agencies’ operations or assess the carbon footprint of products accurately.

Built on SAP S/4HANA, SAP Analytics Cloud, and SAP Cloud Platform, SAP Product Carbon Footprint Analytics provides carbon emission data for a company’s products by plant, profit center, and cost center. This technology provides carbon transparency for a product throughout its whole value chain. Leveraging SAP data management capabilities, producers can also analyse and understand emissions breakdowns by combining data from product databases and third-party solutions.

Chee Lioy has emphasised that SAP is committed to partnering agencies in their sustainability efforts. The software giant has launched the Climate 21 Initiative to foster discussions around sustainability and help organisations reduce their carbon footprint. Furthermore, SAP has pledged to achieve carbon neutrality by the end of 2023.

Shaping a Sustainable Future with Singapore

Similarly, Singapore has unveiled a national push to promote the country’s climate agenda and attain net-zero emissions as soon as possible. By 2025, the Green Plan aims to plant one million additional trees and construct eight electric vehicle-ready towns with charging stations in all public housing car parks.

The program also expands on Singapore’s 2030 goal of reducing waste transported to landfills by 30{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}, with a goal of 20{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} reduction by 2026, as stated by a CNA report.

In relation, Chee Lioy explained that SAP supports governments’ climate efforts by embedding sustainability into its analytics applications. The tech giant connects customers to more environmentally friendly products while also providing visibility into waste flows to aid organisations in their efforts to achieve zero waste.

Singapore continues to lead the way in the second edition of the Top 50 Smart City Government rankings published by the Eden Strategy Institute this year. It has also earned the same accolade in the IMD Smart Cities Index published by Swiss business school IMD and the Singapore University of Technology and Design in 2019. In a LinkedIn blog post written by Chee Lioy, he said:

“SAP takes pride in being a strategic partner to the Singapore Government. We are gladdened by Singapore’s accolades as it’s also a testament that we are heading in the right direction with this nation-state.”

Helping Achieve UN SDGs by Leveraging SAP Data Management Capabilities

During this year’s SAP Sustainability Summit virtual conference, SAP has announced that it has joined the World Business Council for Sustainable Development (WBCSD) as an innovation partner in its Value Chain Carbon Transparency Pathfinder. The initiative aims to develop an effective model to decarbonise industry through data transparency as well as help realise the Sustainable Development Goals (SDGs) set by the United Nations General Assembly in 2015. 

SAP’s membership accelerates its momentum in sustainability leadership and innovation. Peter Bakker, President and CEO at WBCSD, said: 

“We’re glad to be counting on SAP’s support, drive, and expertise across our programs and projects – especially in the Carbon Transparency Pathfinder, which is a perfect initiative for SAP because their software and data management solutions are used by many of the world’s largest companies to run complex supply chain and manufacturing operations.”

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The recent SAPPHIRE NOW Converge, one of the three core initiatives of the digital event SAPPHIRE NOW Reimagined, has put the spotlight back on the global existential challenge climate change. Thomas Sausserig, a member of the Executive Board of SAP SE for SAP Product Engineering, gave a solid reminder on SAP’s commitment to delivering innovations that champion customers’ business stability amid the changing environmental and market factors.

“In today’s hyperconnected world, it’s even more important for businesses to quickly react to environmental and market changes. We’re helping to address these challenges with new ways for customers to address sustainability, lead in their industry, and grow their business networks. SAP has the strategy, expertise, solutions, and partner ecosystem to enable customers to run their business as an intelligent enterprise,” he said.

While most governments, consumers, investors, NGOs, and even employees initiate the shift towards sustainable business practices, leveraging technology catapults the intention. To help enterprises and company leaders manage their “green line”, SAP has released its first solution in its Climate 21 program, an initiative to support customers in pursuing their climate-related objectives- the SAP® Product Carbon Footprint Analytics.

Climate 21

The Climate 21 initiative in 2020 acts as a springboard for companies preparing for a change driven by incentive and choice.

“Climate 21 is the embodiment of the intelligent enterprise because it spans the end-to-end business processes across both companies and industries,” shared Saueressig as he addressed participants at SAPPHIRE NOW.

SAP takes the challenge of managing the complex accounting of consumer products, chemicals, and oil and gas carbon footprints, which involves the analysis of multiple production sites and production steps. As a trusted partner of enterprises around the world for nearly 50 years, the German company has been managing resources of partners and customers to drive revenue, reduce cost, optimise asset utilisation, streamline supply chains, and improve customer service. SAP harnesses the large base data needed to determine carbon footprints that are already in SAP systems, like the bill of materials, energy usage, procurement data, and master data. 

In Sauserrig’s article Our Decade of Delivery for Climate, he said:

“It is in our DNA to build software that helps companies measure, account, and take the right action in dynamic and heterogeneous regulatory environments.”

He also explained that the upside of climate change is its convenient measurable performance unit in the form of CO₂ to drive and track performance at a global, national, and industrial levels. 

SAP Product Carbon Footprint Analytics

SAP solutions accounting for CO₂ and other greenhouse gases are integral to the enterprise’s digital core.

SAP Product Carbon Footprint Analytics based on SAP S/4HANA, SAP Analytics Cloud, and SAP Cloud Platform delivers carbon emission insights for a company’s products by plant, profit center, or cost center. The solution offers carbon transparency of a product across the entire value chain, including production, raw materials, energy use, and transport. Producers can also integrate data from product databases and third-party solutions to analyse and understand the emissions breakdowns.

Toby Croucher, head of Solution Management for Climate 21 and Sustainability at SAP said:

“Our goal is to create transparency about carbon emissions all the way through the value chain, across industries, geographies, products, and services.” 

“Creating transparency of the carbon footprint straight through to the consumer will help inform climate-responsible buying and consumption,” he added.

Advocating transparency about the carbon footprint for any good or service applies today more than ever as consumers become more and more conscious of their contribution to the reduction of carbon footprints.

Doehler, a global producer, marketer, and provider of technology-driven natural ingredients, ingredient systems, and integrated solutions for the food and beverage industry, is the first to go live with SAP Product Carbon Footprint Analytics.

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