This week, SAP introduced a new corporate social initiative focused on driving ‘procurement with a purpose’ by inspiring organisations to purchase more goods and services from purposeful suppliers. According to the German software company, 5×5 by ’25 targets 5{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} of annual addressable procurement spend to social enterprises and 5{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} to diverse businesses by 2025 to tackle social inequalities and environmental imperatives. SAP Australia will be among the first to lead in the company’s social procurement initiative.
5 & 5 by ’25 is part of SAP One Billion Lives, a program whose ambition is to positively impact one billion lives by integrating social enterprises into the global economy through procurement practices.
The corporate social initiative was announced at SAP Ariba’s virtual event, Procurement Reimagined APAC. It will impact all SAP’s global markets, but will initially be focused on Australia, the United Kingdom, and Canada.
Recently appointed Global Buy Social Ambassador for Social Enterprise UK, Adaire Fox-Martin said during the announcement:
“Every company in every industry needs to procure. We all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services, office supplies, and even pest control. These and many more are all products and services provided by social enterprises and diverse businesses. This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?”
As part of the 5 & 5 by ‘25 initiative, SAP Ariba is opening SAP Ariba Network up and connecting corporate-ready purposeful suppliers with more organisations who want to make a difference with their addressable procurement spend.
Fox-Martin adds,
“Together with our customers, partners, diverse suppliers, and social enterprises, we have set out to expand social procurement where infrastructure exists and intend to establish the infrastructure and build capacity where it doesn’t. We invite our entire ecosystem to learn more and take part, join us in this pledge, and help build the pathways and the momentum to realise this ambition and find a better way to grow.”
Purposeful Procurement at SAP Australia
Even before the announcement of SAP 5×5 by ’25, SAP Australia has already been working with a range of diverse local social enterprises and indigenous businesses, including:
- The Good Good – a tea supplier based in Sydney (with operations in Australia and the United States) that aims to bring recurrent sources of revenue to charities providing access to education for disadvantaged kids
- Kua – a coffee supplier founded in 2017 that strives to leave a ‘handprint’: a net-positive impact on society and the environment
- Goodwill Wine – a wine company established in 2009 that has given back over AUD$360,000 to charities
- Muru Office Supplies – an Indigenous-owned office supplies retail company that contributes a percentage of its profits to education, employment, health, and wellbeing initiatives that support Indigenous communities
SAP 5×5 by ’25 will see SAP Australia continue to expand its social procurement strategies. Meeting the corporate social initiative targets would mean SAP Australia directs up to AUD$1.01 million per year to Australian social enterprises and diverse suppliers by 2025. Across its global markets, SAP is targeting roughly AUD$82.5 million (EUR€50 million) per year procurement spend by 2025. This figure is based on early pilots conducted by SAP in select markets.
