SAP best business practices have firmly established the company as a global leader in sustainability. Recognized as one of the most sustainable companies in 2024, SAP ranked 15th out of 500 companies in a study by TIME magazine and Statista, surpassing industry giants like Cisco, Microsoft, and ServiceNow.
The 2024 sustainability study evaluated organizations based on their adherence to climate initiatives, including the 1.5°C Science Based Targets initiative (SBTi) and the Carbon Disclosure Project (CDP). The study assessed scope 1 and 2 emissions, energy consumption, and the proportion of renewable energy used.
For years, SAP has integrated sustainability into its core mission. Through an extensive suite of ERP-centric, cloud-based, and AI-driven sustainability services and solutions, SAP supports customers across 26 industries in becoming more sustainable. This approach includes developing long-term strategies around climate, resources, and people, enhancing business operations with sustainable practices, and promoting long-term business value. SAP aims to achieve net-zero emissions across its entire value chain by 2030, a goal set two decades ahead of the original plan.
SAP Best Business Practices in Sustainability Action
SAP’s sustainability efforts are not just internal but extend to its vast customer base, which generates 87% of global commerce. This vast influence provides SAP with a unique opportunity to drive global sustainability. SAP has consistently been recognized for its environmental, social, and governance (ESG) efforts by leading sustainability rating agencies.
In Corporate Knights’ 2024 ranking of the 100 most sustainable corporations, SAP secured the 48th position. This ranking is based on the evaluation of over 6,000 companies with revenues exceeding $1 billion, using 25 key performance indicators. This recognition places SAP in the top 1% of firms globally in terms of sustainability performance.
Meanwhile, the S&P Global Corporate Sustainability Assessment (CSA) has been evaluating companies’ sustainability practices annually since 1999. In the latest CSA, SAP ranked within the top 5% of the software industry with a score of 71 out of 100. This assessment highlights the financial significance and industry-specific sustainability criteria.
On the other hand, in the Carbon Disclosure Project (CDP) assessment, SAP scored a B, indicating coordinated action on climate issues. The EcoVadis sustainability assessment awarded SAP a gold medal with a score of 70 out of 100, ranking it in the 94th percentile of all assessed companies. EcoVadis, with over 100,000 rated companies, is one of the world’s most trusted sustainability rating providers, covering a wide range of non-financial management systems, including environment, labor and human rights, ethics, and sustainable procurement.
Gartner’s recent report titled “Sustainability Assessment: SAP®” further highlights SAP’s sustainability performance. The FTSE4Good Index Series, managed by the Financial Times Stock Exchange-Russell Group, measures companies’ ESG practices. SAP has consistently been included in the FTSE4Good indices, demonstrating strong performance in areas such as climate change, human rights, community and labor standards, tax transparency, and anti-corruption.
Furthermore, the IDC Sustainability Index for Software Providers reviews the ESG impacts of information and communication technology players, focusing on three pillars: Technology as an Enabler, Vendor Performance, and Technology for Good. SAP was ranked 3rd out of 23 software vendors, excelling in the Technology as an Enabler pillar.
The ISS ESG Corporate Rating awarded SAP a B rating, recognizing its prime status and placing it in the top decile. MSCI ESG Research also rates SAP highly, awarding it an AAA rating for leadership in human capital development, corporate governance, privacy and data security, and clean technology.
Moreover, Sustainalytics, a leading provider of ESG research, ratings, and data, rated SAP with a low-risk ESG Risk Rating of 10.9. This rating reflects SAP’s efforts to minimize the financial impact of environmental, social, and governance factors.
TIME’s 2024 assessment of the World’s Most Sustainable Companies also placed SAP at 15th, recognizing its commitment to sustainability across various domains, including climate change, human rights, and anti-corruption.
SAP Solutions Helping Businesses Achieve Sustainability Goals
SAP’s sustainability solutions encompass a wide range of offerings designed to help businesses achieve their sustainability goals. These solutions include the SAP Environment, Health, and Safety Management (SAP EHS) and the SAP Product Footprint Management. SAP EHS helps companies ensure compliance with environmental regulations and manage health and safety risks, while SAP Product Footprint Management enables businesses to calculate and manage the carbon footprint of their products throughout the value chain.
Additionally, SAP’s Sustainability Control Tower provides real-time insights into sustainability performance, allowing businesses to make data-driven decisions to improve their sustainability practices. The SAP Ariba Network facilitates sustainable procurement by connecting buyers and suppliers committed to sustainable practices.
SAP best business practices exemplify a comprehensive approach to sustainability, integrating it into every aspect of the company’s operations and extending its influence to its vast customer base. This commitment to sustainability not only enhances SAP’s business performance but also sets a benchmark for the industry, demonstrating how businesses can achieve long-term success while contributing to a sustainable future.
