SAP is committed to achieving net-zero emissions along its value chain in line with a 1.5°C scenario by 2030,  20 years prior to 2050 (net zero by 2050 is needed to keep global warming within the 1.5°C scenario). SAP's targets are aligned with the Science Based Targets initiative (SBTi).

An essential driver behind this ambition is SAP’s focus on reducing Scope 3 emissions through collaboration with customers, partners, and suppliers, with the aim of successfully contributing to net-zero emission strategies. 

SAP aims to establish a multi-phased supply chain engagement program by 2024 for their key suppliers, and requires suppliers to report GHG emissions for Scope 1 and 2, with product-level GHG emissions on selected areas.

Additionally, SAP is working towards a sustainable supply chain by eliminating single-use plastics and enforcing human rights in a close collaboration with a diverse supplier network across their seven procurement categories.

In their multi-phased supply chain engagement program, SAP plans to work with key suppliers to agree on common plans to consistently reduce greenhouse gas emissions along the upstream value chain.   

The program will incorporate environmental considerations throughout the procurement process by integrating a new sustainability classification system.

For SAP, sustainable procurement practices are becoming one of their key enablers in achieving both their own and their suppliers net-zero targets, and it leverages its sustainable procurement software portfolio to meet its Scope 3 emission goals, tracking and monitoring progress regularly.

“Reducing Scope 3 emissions is a key factor on the journey to net zero. This is a team effort, and we are happy to collaborate with our business partners on reducing emissions throughout our supply chain,” says Dominik Asam, Chief Financial Officer and member of the Executive Board of SAP SE.

Technology and value chain collaboration play a central role in addressing scope 3 by supporting with tools that allow accurate carbon footprint calculations and CO2e information exchange across the entire value chain, providing the transparency needed to make better business decisions across products and services, procurement, and downstream logistics.

Here, for example, SAP is working with customers, suppliers, and partner networks to set standards and clearly defined methodologies to calculate and share accurate product carbon emissions data across the value chain utilizing tools such as SAP Sustainability Footprint Management and SAP Sustainability Data Exchange.

SAP Sustainability Footprint Management enables accurate carbon footprint calculations by automating the integration of company and supplier emissions data ensuring data standardization and footprint distribution. The tool provides transparency for auditable reports, and actionable insights to set and achieve decarbonization targets (more information can be found here).

SAP Sustainability Data Exchange enables organizations to exchange actual carbon data with suppliers, aligning with the WBCSD’s PACT framework, to set standards and methodologies for data sharing and increased interoperability. This has e.g., been leveraged in Catena-X, an Industry Network for Automotive sector co-founded by SAP, supporting companies in exchanging PCF (Product Carbon Footprint) across the industry to create an open and collaborative data ecosystem.

The program helps increase transparency through the supply chain, so organizations and their suppliers mutually can act to significantly reduce Scope 3 emissions and support net-zero commitments (more information can be found here and here).