SAP Recognized as One of the World’s Most Sustainable Companies in 2024

SAP is one of the most sustainable companies on the planet in 2024, according to a recent study conducted by TIME magazine and data firm Statista. It ranks 15th out of 500 companies on the list, outperforming Cisco, Microsoft, and ServiceNow.

The 2024 sustainability study measures how organizations are tracking against climate programs, such as the 1.5°C Science Based Targets initiative (SBTi) target or the Carbon Disclosure Project (CDP), and looks at scope 1 and 2 emissions and energy consumption, or proportion of renewable energy utilized in a company’s operations.

Our purpose is to help the world run better and improve people’s lives with sustainability at the core

For years, SAP has been putting sustainability at the very core of its vision and operations. Via a comprehensive portfolio of ERP-centric, cloud-based, and AI-enabled sustainability services and solutions, SAP helps customers across 26 industries become more sustainable. This is achieved by building long-term sustainability strategies around climate, resources, and people; powering businesses and their value chains with sustainable practices; and driving long-term business value. SAP is also committed to achieving net-zero emissions across its entire value chain by 2030 – 20 years earlier than originally planned.

“Together with our customers, which generate 87% of total global commerce, SAP has the unique opportunity to create a more sustainable world,” Daniel Schmid, chief sustainability officer at SAP, said. “We are regularly recognized by world-renowned sustainability rating providers for the company’s environmental, social, and governance (ESG) efforts and achievements. Our ranking in TIME magazine underscores SAP’s role as a leader in sustainable business practices, setting a benchmark for others in the industry.”

Check out the list below for the full collection of ratings, rankings and reports of SAP’s sustainability performance globally.


Corporate Knights

In Corporate Knights’ 20th annual ranking of the 100 most sustainable corporations worldwide in 2024, SAP secured the 48th position. This recognition is highly significant, as the Global 100 companies represent the upper 1% of firms globally in terms of sustainability performance. The ranking was formulated by the Toronto-based media, research, and financial information products firm, which analyzed more than 6,000 companies with revenues exceeding US$1 billion, using 25 key performance indicators.

Corporate Sustainability Assessment by S&P (Dow Jones Sustainability Indices)

Since its inception in 1999, the S&P Global Corporate Sustainability Assessment (CSA) has been conducting an annual evaluation of companies’ sustainability practices, covering over 7,000 firms worldwide. The CSA emphasizes sustainability criteria that is both industry specific and financially significant. In the S&P Global Corporate Sustainability Assessment, SAP secured a position within the top 5% of the software industry, scoring 71 out of a possible 100.

CDP

In the latest CDP (Carbon Disclosure Project) assessment, SAP scored a B. This means that SAP was recognized by CDP as taking coordinated action on climate issues.

EcoVadis

In the last sustainability assessment of EcoVadis in October 2023, SAP was again awarded a gold medal with a score of 70 of 100, ranking in the 94th percentile* of all assessed companies. With more than 100,000 rated companies, EcoVadis is one of the world’s most trusted business sustainability rating providers. Its assessment covers a broad range of non-financial management systems, including environments, labor and human rights, ethics, and sustainable procurement impacts.

Gartner

Gartner, a trustworthy analyst firm, has published a new report titled “Sustainability Assessment: SAP®”. Read more about Gartner’s assessment of SAP’s sustainability performance in this complimentary report offered to all Gartner readers.   

FTSE4Good

Administered by the Financial Times Stock Exchange-Russell Group (FTSE), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices. Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products.

As in previous years, SAP continues to be listed in the FTSE4Good indices based on assessment questions in areas such as environment, climate change, human rights, community and labor standards, tax transparency, and anti-corruption. Due to its good scoring, SAP remains a constituent of the FTSE4Good Index Series following the June 2024 review.

IDC

IDC Sustainablity Index for Software Providers reviews the ESG impacts of information and communication technology (ICT) players, focusing on three pillars: Technology as an Enabler, Vendor Performance, and Technology for Good. SAP was awarded 3rd place** in an assessment of 23 software vendors. This position highlights SAP’s exceptional performance, especially in the Technology as an Enabler pillar, where SAP excels in monetization, sustainable features, ESG reporting, operational optimization, and advisory services. SAP’s success is attributed to its commitment to sustainability, as well as to efficient internal product standards that prioritize cost and resource efficiency. Additionally, SAP has been named a leader among 18 vendors in the first-ever IDC MarketScape: Worldwide Carbon Accounting and Management Applications 2024 Vendor Assessment.

ISS ESG

The Institutional Shareholder Services (ISS) ESG Corporate Rating provides an assessment of companies’ sustainability performance based on high-quality and in-depth research and up to 100 sector-specific rating criteria that are regularly reviewed and developed. With its B rating, SAP has been acknowledged with prime status and is among the top decile. The score was confirmed in January 2023. ISS ESG is expected to update its score in the summer of 2024.

MSCI

MSCI ESG Research provides in-depth research, ratings, and analysis of the ESG-related business practices of thousands of companies worldwide. Its research is designed to provide critical insights that can help institutional investors identify risks and opportunities that traditional investment research may overlook. The MSCI ESG Ratings are also used in the construction of the MSCI ESG Indexes produced by MSCI, Inc. SAP upholds the highest rating of AAA*** and is an ESG leader in human capital development, corporate governance, privacy and data security, and clean tech as of the last assessment in May 2024.

Sustainalytics

SAP received a low-risk ESG Risk Rating of 10.9 from Sustainalytics, a leading provider of ESG research, ratings, and data. This rating reflects SAP’s commitment to sustainability and its efforts to minimize the financial impact of environmental, social, and governance factors. Sustainalytics, founded in 1992 and now a Morningstar company, is a trusted source for institutional investors and companies seeking to understand and manage ESG risks.

TIME

TIME’s assessment of the World’s Most Sustainable Companies for 2024 recognized SAP for demonstrating a strong commitment to sustainability. SAP was ranked the 15th most sustainable company worldwide. This reflects SAP’s dedication to areas such as climate change, human rights, and anti-corruption and underscores SAP’s role as a leader in sustainable business practice.


*SAP’s score is higher than or equal to the score of 94% of all companies rated by EcoVadis.
**Doc #EUR147190121, May 2023
***Scale: AAA (leader) to CCC (laggard). The use by SAP SE of any MSCI ESG Research LLC or its affiliates (‘MSCI”) data, and the use of MSCI logos, trademarks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of SAP SE by MSCI. MSCI Services and Data are the property of MSCI or its information providers and are provided “as-is” and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

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Copyright ©2022 Sustainalytics. All rights reserved. This article contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers

® Gartner, Sustainability Assessment: SAP, 11 December 2023, Ed Anderson, Fabio Di Capua
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

RISE with SAP Packages Enhance AI Integration for All Customers

RISE with SAP packages have undergone significant enhancements aimed at accelerating digital transformation and making artificial intelligence (AI) more accessible to all customers. Launched in January 2021, RISE with SAP has partnered with thousands of customers globally, helping them transition to cloud ERP. This period has seen dramatic shifts in business dynamics, including the rise […]

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RISE

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Cyclife Implements SAP S/4HANA ERP in the Public Cloud

Cyclife, a subsidiary of the EDF group, has chosen the SAP S/4HANA ERP to streamline its operations and support its growth, deploying the system in a public cloud environment. Cyclife, established in 2016, specializes in the dismantling and management of radioactive materials and waste, contributing to the sustainability of nuclear energy. With a rapid expansion […]

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Unlocking the Potential of Intelligent ERP: SAP S/4HANA Cloud Public Edition 2408 Update

The 2408 update to SAP S/4HANA Cloud Public Edition brings the latest enhancements to our intelligent ERP solution, designed to help businesses run efficiently and effectively.

As a leader in the SaaS and cloud-enabled midsize business ERP applications market, as named by IDC, we are committed to delivering continuous value to our customers. Let’s dive in and explore the exciting new enhancements of SAP S/4HANA Cloud Public Edition 2408 update.

Improved Productivity with AI

The latest AI innovations for SAP S/4HANA Cloud Public Edition are redefining the way businesses operate. With embedded AI capabilities, companies can now streamline operations, make data-driven decisions, and ultimately drive growth and success in today’s competitive market.

Embrace the future of business with these state-of-the-art AI innovations:

Our AI copilot Joule enables users to express their business need in natural language and supports with answers based on SAP Help Portal documentation, with fast navigation to applications and with role-based insights on business objects.

Insights on business objects through Joule

The AI-assisted easy filter and AI-assisted smart summarization features in SAP Fiori enhance the user experience for business users. These features allow for efficient natural language filtering of business data and seamless summarization capabilities, enabling users to quickly extract relevant information and jump-start subsequent collaboration. This leads to faster decision-making, improved productivity, and more effective communication across teams.*

AI-assisted easy filter
AI-assisted smart summarization

Intelligent resource matching reduces the time to find skilled resources by providing advanced skill matching.*

Leveraging generative AI, the review booklet for cost centers enables faster analysis and understanding of cost center data, facilitating quicker insights and more informed decision-making.*

*These features are currently available in beta; sign up here

Modern and Collaborative User Experience

This update is set to transform the way users work with user experience enhancements, enabling direct access to important applications and intelligent decision-making features.

Notifications of To Dos in Microsoft Teams allow direct actions on workflow items, saving time and reducing the need to switch between applications.

Notifications of to dos in Microsoft Teams

With the share as authenticated adaptive card-based loop component, users can collaborate with colleagues directly from an app and share live information using Microsoft Loop components. Cards can be copied between Microsoft applications; for example, from Microsoft Teams to Microsoft Outlook.

The Microsoft Copilot Integration for SAP S/4HANA Cloud Public Edition, in combination with share as authenticated card-based loop component, enables users to collaborate, share live data, and access business data directly from their daily applications and activities.*

*This feature is currently available in beta

Microsoft Copilot in Microsoft Teams
My Home enhancements (click to enlarge)

Updates to My Home include enhanced workflow-relevant information and in-place actions for daily tasks​, an intelligent homepage experience to boost productivity​, intelligent app recommendations, and pre-delivered cards for new cloud customers​. The updates allow business users to execute their tasks in My Home with speed and precision.

SAP Mobile Start allows direct access to the most important applications on the start screen with app favorites, displaying SAP Analytics Cloud KPIs as monitoring tiles and widgets, and managing to-do attachments to support the decision-making process.

Intelligent and Sustainable Finance

Propel your business toward a more intelligent and sustainable future with the latest finance enhancements, providing tools to achieve transparency, analyze financial data, and streamline processes to improve your business performance.

The cost center review booklet provides overhead cost accountants with transparent cost-center reporting, enabling daily analysis of actuals, plan data, commitments, and statistical key figures in one report, with the ability to switch between guided views and adaptable slicing, dicing, and pivoting based on business needs.

Review booklet for cost centers

The service profitability review booklet provides an interactive and comprehensive view of the financial KPIs related to the service profitability.

Service profitability review booklet

The Manage Operating G/L Accounts app streamlines processes and increases performance with a modern SAP Fiori app, providing a user-friendly interface and efficient workflows that enhance overall productivity and accuracy in managing general ledger accounts.

Manage Operating G/L Accounts app

Powering Service-Centric Companies

The latest updates for service-centric companies support your business growth and improve your operational effectiveness.

Professional services companies can implement and automate a new business model in which they can negotiate a shared risk approach with their clients. This leads to more accurate real-time profitability and reduces the need for manual effort when a lower cost rate is negotiated for additional work.

Shared-risk-based revenue recognition for professional service project

Automating recommendations and simplifying the sales order process as part of the modern order management journey improves efficiency for internal sales representatives. This reduces administrative efforts and provides seamless support for business users in their daily work.

Intelligent scenario management

By leveraging advanced solution bundling in solution orders, businesses can facilitate the transition from selling products to higher-margin services and solutions, using pre-defined configurable bundle products which consist of various components in one order.

Changeable sales orders for solution orders provide flexibility in defining business roles through segregation of duties for solution order capturing and sales order fulfilment, improving business user productivity. Additionally, rate plan selection in solution orders minimizes the subscription master data required to accommodate the variations of a subscription business model.

Pre-defined bundles in solution orders

The creation of proof of services for unplanned lean services by referencing existing contracts guides users to the right contract item during the creation of service entry sheets. This supports compliance with contract-based buying for unplanned services and offers flexibility to suppliers for selecting products and services from contracts when submitting proof of service.

Boosting Manufacturing and Product-Centric Companies

Elevate operational efficiency, streamline processes, and unlock new revenue opportunities with updates for product-centric companies.

Partial goods receipt posting enables the warehouse staff to receive the handling unit and start the put-away process immediately after unloading it, instead of checking the complete inbound delivery first. By allowing immediate action on received goods, warehouses can streamline their workflows, improve accuracy in inventory recording, and optimize resource utilization — ultimately leading to better overall productivity and reduced operational costs.

Partial goods receipt posting

Automate the generation of packaging items based on assigned handling units to effectively track stock count and manage packaging materials. Integration with SAP Returnable Packaging Management enhances supply chain transparency and operational efficiency by facilitating accurate exchanges and account reconciliation with business partners.

Enabling return to supplier (scope item BMK) with cloud transportation management now supports advanced scenarios for efficient transportation planning for supplier returns. This enhancement optimizes logistics, ensuring timely and cost-effective return shipments, ultimately improving supply chain efficiency.

Enhancement of the dynamic third-party order processing with advanced available-to-promise functionality increases order fulfillment rates and flexibility in sourcing, based on availability information, and minimizes logistical steps and costs by directly shipping from the supplier to the customer.

Dynamic third-party order processing with advanced available-to-promise functionality

Establishing a Solid SaaS Foundation

The latest SaaS foundation enhancements are designed to improve your experience and workflow efficiency:


Arpan Shah is senior vice president of Public Cloud ERP Product Management at SAP.

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SAP Announces Q2 2024 Results

WALLDORF SAP SE (NYSE: SAP) announced today its financial results for the second quarter ended June 30, 2024.

  • Current cloud backlog of €14.8 billion, up 28%, both at nominal and constant currencies
  • Cloud revenue up 25%, underpinned by 33% Cloud ERP Suite revenue growth, all at nominal and constant currencies
  • Total revenue up 10%, both at nominal and constant currencies
  • IFRS cloud gross profit up 29%, non-IFRS cloud gross profit up 28% and up 29% at constant currencies
  • IFRS operating profit down 11% due to restructuring expenses of €0.6 billion. Non-IFRS operating profit up 33% and up 35% at constant currencies
  • 2024 financial outlook reiterated. 2025 operating profit ambition increased to reflect anticipated incremental efficiency gains from expanded transformation program

“Our cloud growth momentum remained strong in Q2, with Business AI enabling many deals. We continue to execute on our transformation with great discipline, leading to an increase in our operating profit ambition for 2025. At the same time, we continue to invest into our transformation to be the leader in Business AI. Given our progress and strong pipeline, we are confident to achieve accelerating topline growth through 2027.”

Christian Klein, CEO

 

We are staying squarely focused on delivering our outlook for this year. Our current cloud backlog growth during the second half of 2024, and especially in Q4 will be decisive to lay a solid foundation for our cloud revenue ambition for 2025. At the same time, we’ll continue to execute against our transformation plan to achieve our 2025 free cash flow ambition despite a mid-triple-digit million cash out for restructuring spilling into next year.

Dominik Asam, CFO

Read the Quarterly Statement

SAP and McKinsey Pioneer Value Creation with Value Finder

SAP and McKinsey have joined forces to launch a new initiative called Value Finder, aimed at transforming the way businesses harness value from their processes. The collaboration between SAP and McKinsey is not new; it builds on a robust, long-standing alliance. Earlier this year, they introduced Generative Enterprise, a solution designed to synergize SAP Business […]

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Serving Customers Better with Lean Selective Data Transition

At SAP Sapphire in 2024, Stefanie Kuebler, global head of Business and Data Transformation Solutions at SAP, and her team announced the eagerly awaited lean selective data transition for SAP S/4HANA in SAP Business Transformation Center.

Here, she shares about how the pair work together to help supercharge customers’ digital transformations.

Q: Can you give a little background on SAP Business Transformation Center?

A: SAP Business Transformation Center was envisioned as a one-stop shop for customers that want to transition from SAP ERP Central Component (SAP ERP) 6.0 to SAP S/4HANA. The challenges to such a transformation are, of course, numerous and daunting. Customers need to cull current data, pull together fragmented tool sets, line up the right human resources, and keep an eye on time to value.

With SAP Business Transformation Center, we’ve done our best to bring together the latest functionality and expert guidance to smooth the way – in a single, powerful software-as-a-service (SaaS) offering. And SAP Business Transformation Center is easily accessible, deployed on SAP Cloud ALM atop SAP Business Technology Platform (SAP BTP). It comes with any implementation of RISE with SAP or any cloud solution from SAP and can be ready to use in less than half an hour.

Q: Where can customers go for further details?

A: The support materials at SAP Business Transformation Center include a quick summary of features and benefits, along with the introductory video.

Q: What does SAP see as the core mission of SAP Business Transformation Center?

A: Kilian Carolan from the Premium Hub – CoE Ireland Data Management has described the mission this way: “To play an active part in the SAP S/4HANA adoption journey by supporting key data management and data migration topics and to serve as the trusted advisor for our customers.” He continues to explain that we do this through end-to-end support, including hands-on execution, optimization, transformation, upgrade, and migration of Big Data and data platforms. In short, we apply our vast portfolio of enterprise information management and landscape transformation tools, methodologies, and processes to the customer’s unique transformation scenario.

Q: Where are we in the ongoing evolution of SAP Business Transformation Center?

A: Our first step was to help customers fully understand the structure of their SAP legacy systems through the digital blueprint. This supplied the background they needed to begin scoping the transformation project. And now we’ve completed the second step for moving data across to the target system – with lean selective data transition for SAP S/4HANA.

Optimize your data transformation process and seamlessly transition to a more agile and innovative enterprise

Q: What exactly does the lean selective data transition for SAP S/4HANA do?

A: Data transformation is traditionally a highly complex undertaking, and we’ve made a huge dent in that complexity. Right at the start, lean selective data transition for SAP S/4HANA helps radically reduce the decision-making efforts involved in choosing data to migrate. The underlying principle is to provide smarter suggestions and fewer difficult choices through market-leading services and tools – and end-to-end advice on making the most of them. That approach helps customers ensure that they only move data that will continue to be useful, reducing the volume of data for the testing and go-live phases and accelerating the transition exponentially.

With lean selective data transition for SAP S/4HANA, customers can pare down SAP legacy data and bring the target system live with a clean data foundation. In combination with the digital blueprint, lean selective data transition for SAP S/4HANA can give SAP Business Transformation Center the power to do all the heavy lifting of accessing source systems; extracting, transforming, and loading relevant data; and validating data for completeness, consistency, and correctness.

Q: What types of data can customers choose to exclude from the transfer?

A: For example, they could decide to completely ignore obsolete company codes, such as data for companies they have since divested or which are no longer in use.

Q: What does the wider market see as the single most revolutionary aspect of lean selective data transition for SAP S/4HANA?

A: For the very first time, SAP provides standard functionality not only for complete rebuilds, greenfield implementations, system conversions, or brownfield implementations, but also for projects somewhere in the middle. This is a third path, if you will, and it’s a holistic approach to the big transformation from SAP ECC 6.0 to SAP S/4 HANA Cloud Private Edition.

Q: Can you take us a little deeper into how lean selective data transition for SAP S/4HANA works and how customers can benefit?

A: With the SAP Readiness Check tool for SAP ERP usage and data profiling, we can collaborate with the customer to read the data from the source system and identify legal entities that are no longer in use or will soon be obsolete. SAP Business Transformation Center then can propose that these entities and the associated data are “removed from the scope” before starting the data transition and can provide clear instructions on how to do this. It can also help to identify customer-specific data in the SAP legacy system. Here, too, the customer has the option of leaving this data behind on the way to SAP S/4HANA to support its clean core strategy and move closer to the standard again.

Both these jobs would previously have meant time-consuming manual work for the solution architect – and higher costs and longer time to value for the customer. With the addition of lean selective data transition for SAP S/4HANA to the already popular functionality for digital blueprinting, SAP Business Transformation Center can now provide optimal support and transparency in each phase of the transformation project. It helps customers analyze the source system, define migration scope, create migration cycles, and finally transform the leaner body of data they’ve elected to move across. From strategy to execution, we serve as a trusted partner, helping to ensure that every step of the way leads to meaningful insights and sustainable results. And that lowers both total cost of implementation (TCI) and total cost of operation (TCO).

Q: What have customers been saying about lean selective data transition for SAP S/4HANA?

A: Long-term partner BMW Group, for example, has told us, “This feature significantly speeds up our evolution into an intelligent enterprise by applying sustainable and efficient solutions and methodologies.”


Karin Baeumler is part of Go-to-Market, Business & Data Transformation Solutions, at SAP.

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Revolutionizing Proactive Risk Management to Accelerate Business Process Transformation

Datricks, the leader in AI-powered risk mining, expands its relationship with SAP with the launch of Datricks for Risk Mining as an SAP endorsed app. The solution helps empower organizations to proactively detect, prevent, and mitigate risks through advanced technology and streamlined integration.

The strategic alliance between Datricks and SAP Signavio leverages the strengths of both to deliver unparalleled value to customers, revolutionizing proactive risk management to help accelerate business process transformation. Together, Datricks and SAP Signavio aim to provide a seamless and integrated solution for financial business risk mining and process management that supports both internal controls and business transformation. This collaboration underscores a shared commitment to innovation and excellence, driving forward the capabilities of risk management in the financial sector.

Datricks’ cutting-edge, AI-driven technology, combined with SAP Signavio’s leading expertise in business process transformation, helps deliver a comprehensive solution that can streamline operations and empower organizations to proactively identify and mitigate risks before they escalate into major disruptions. The solution can tackle the gap between business processes and compliance and can reduce long and expensive auditing cycles, allowing our customers to maximize efficiency and reduce costs. Risks and controls are identified by Datricks and then integrated into SAP Signavio solutions to access control and process effectiveness, fostering proactive risk management.

Our end-to-end solution enables customers to:

  • Uncover hidden risks: Datricks’ AI-powered risk mining solution continuously analyzes 100% of customers’ financial data, exposing unseen anomalies and potential threats to financial integrity.
  • Prevent financial and reputational damage: Mitigate risks proactively before they escalate, safeguarding your company’s financial health and reputation.
  • Streamline audits and controls: Eliminate error-prone manual work and enhance existing controls with automated and reliable processes.
  • Gain real-time insights: Receive immediate answers to audit-related questions, identify the root cause of risks, and make informed decisions with confidence.

Datricks for Risk Mining helps automate risk detection and mitigation, ushering in the era of autonomous finance. It seamlessly integrates with SAP Signavio solutions, offering a holistic view of risk and process management. Together, we provide an end-to-end solution for financial business risk mining and process management, supporting both internal controls and process transformations.


Mani Pirouz is chief business officer for SAP Business Transformation Management.

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