German tech giant SAP and Boston Consulting Group (BCG), a global provider of management consulting services, have recently collaborated to deliver a transformation offering that will assist organisations in understanding the business value in sustainability, establishing specific climate goals, and implementing an actionable roadmap based on the SAP enterprise strategy.
Citing the company’s Environmental, Social, and Governance (ESG) Business Services Survey in 2021, IDC Global Sustainability Research Lead Bjoern Stengel stated that the study has found three out of four executives engaged in sustainability programs suggest that ESG factors play a crucial role in the overall enterprise value of their organisation. Specifically, the ESG Business Services Survey examined how business services service firms and their ecosystem partners, such as software and cloud providers, can use ESG to help customers foster meaningful business outcomes by acknowledging the requirements of various stakeholders — including employees, regulators, investors, and the C-suite — and aligning business models with purpose, social and environmental implications, as well as ESG relevance.
Recognising the statistics shown by the market analyst firm indicating that sustainability has indeed become a key priority for businesses, SAP and BCG recently forged a partnership to provide solutions founded on a combination of technology, strategy, and business model innovation. Commenting on the latest industry development, IDC’s Stengel shared:
“BCG and SAP have both been at the forefront of operationalising sustainable transformation with their clients, and this partnership will further help IT buyers use sustainability-focused technology strategically to achieve their goals.”
Meanwhile, BCG Chief Executive Officer Christoph Schweizer strongly believes that the environmental impact of an organisation will soon be as significant to its main stakeholders as its financial performance will be in the future. He further explained:
“Early movers in sustainability can experience up to 15 years of competitive advantage and a 10{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} market premium. This is an enormous opportunity for companies around the world.”
“This partnership with SAP will allow our clients to transform at an unprecedented pace,” Schweizer emphasised.
Strengthening the SAP Enterprise Commitment for Sustainability Transformation
Moreover, the new corporate partnership is intended to bring about enterprise-wide transformation by connecting complex supply chains and generating business value from environmental and social responsibility. SAP and BCG’s Sustainability Transformation solution is currently being implemented at lighthouse clients, with a broader rollout scheduled in Q3 2022.
The following are key potential benefits to the latest offering that leverages the German tech giant’s portfolio of market-leading, sustainability-specific products including SAP Product Footprint Management, SAP Sustainability Control Tower, and SAP Sustainability Control Tower:
- Evaluate the circularity opportunities in an organisation’s portfolio across its supply chain and product portfolio in order to support the realisation of zero-waste operations.
- Assist businesses in accelerating their transition to net-zero-emissions production by reducing impact by up to 40{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd}.
- Incorporate cutting-edge carbon-tracking measurement and intelligence into companies’ mission-critical business processes and strategic decision-making workflows.
- Ensure that the sustainability transformation is guided by a focus on business value and in compliance with all regulatory requirements through the use of a holistic steering and reporting solution.
According to SAP Chief Executive Officer and Member of the Executive Board Christian Klein, sustainable enterprises will have a good impact on future generations, but no single organisation can fulfill its sustainability goals alone. Sharing more about the innovative collaboration with BCG which supports the SAP enterprise strategy for sustainability, he said:
“Being sustainable requires coordination across the value chain, and this is where SAP’s partnership with BCG plays a key role. Bringing together BCG’s expertise, tools, and services with SAP’s technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.”
