Matthias Medert is global head of Sustainability at SAP. Here, he speaks about key aspects of the company’s long-term resilience plans and the challenges along the way. In the interview, he also discusses a new partnership to advance SAP’s commitment of achieving net-zero greenhouse gas (GHG) emissions by 2030 and beyond.
SAP is a globally recognized leader in the area of sustainability
Q: How does SAP view sustainability within its overall business strategy?
A: Sustainability is a core element of business strategy and deeply embedded in our vision to help the world run better and improve people’s lives. This means it is not a separate initiative, but an integral part of our leadership and long-term goals as a company. And as such, sustainability is a business catalyst and value driver.
What does SAP’s commitment to reach net-zero GHG emissions by 2030 mean in practice?
We recognize that with a customer base that generates 84 percent of the total global commerce, we have the responsibility and opportunity to lead in corporate climate action efforts. This isn’t just about reporting numbers; it’s a science-based transformation that is embedded in our operations, collaboration with suppliers, technology, and what we offer to our customers.
For us, it means our strategy aligns with the 1.5°C pathway set in the Paris Agreement. We aim to reduce gross GHG emissions by 90 percent across our relevant value chain (market-based). The remaining emissions — no more than 10 percent — will be neutralized through high-quality, verified carbon removal projects. Our reduction efforts have earned SAP’s inclusion in the EU Paris-Aligned Benchmarks, which gives climate-conscious investors confidence in our approach.
What does SAP’s decarbonization strategy consist of?
Our transformation is structured around four interconnected pillars:
With cloud transformation, we’re accelerating the shift from on-premise to cloud solutions, with SAP-managed data centers already powered by 100 percent renewable electricity. In parallel, we are collaborating with hyperscalers and our customers to push renewable electricity adoption upstream and downstream. An important part of this transition is enhancing GHG accounting and moving from estimates to primary data from our suppliers.
With upstream supply chain engagement, we are revising procurement policies and working closely with our suppliers to lower emissions across the supply chain. This includes aligning on data transparency and decarbonization targets. The rise of energy-intensive technologies like AI presents new challenges, but we’re addressing them through joint commitments and shared accountability.
In internal operations, we have several initiatives in place. For instance, since 2014 SAP has been running all offices, owned data centers, and co-locations on 100 percent renewable electricity. In addition to this, we are electrifying our vehicle fleet, and we have an internal carbon pricing scheme for business flights in place. The generated funds are invested in projects that have a positive impact on local and global populations as well as climate and biodiversity.
To neutralize SAP’s residual emissions that remain beyond 2030 after all feasible reduction efforts, we are investing in high-integrity carbon removals, ranging from nature-based to engineered solutions. Great examples of this are our long-term investments in the Livelihoods Carbon Funds and Climeworks’ Direct Air Capture solutions. The partnership with Climeworks marks a significant milestone for SAP and our commitment to durable carbon removals. Additionally, we make annual contributions to climate finance. The voluntary investments made during our transition to net-zero allow us to take responsibility for our emissions, increase our overall impact beyond our own decarbonization efforts, and help the world keep their climate targets in reach.
Where does the partnership with Climeworks fit into your strategy?
We have entered an agreement with Climeworks to secure 37,000 tons of high-quality carbon removal credits through 2034. This includes technologies like direct air capture, biochar, and enhanced rock weathering. More than just a carbon removal purchase, this is a strategic innovation partnership.
Together, we are co-creating ERP-centric carbon management tools, integrated into solutions like SAP Sustainability Control Tower, and making it available via SAP Store. These tools will help companies manage and mitigate emissions in real time, making carbon removal more actionable at scale.
Is Climeworks also adopting SAP solutions?
Yes, and that is part of what makes this partnership so compelling. Climeworks has implemented SAP S/4HANA Public Cloud through the GROW with SAP journey and is using the SAP LeanIX portfolio to support its rapid growth. These tools help with compliance, financial management, and operational efficiency — all critical elements for scaling in the climate-tech space.
How does this alliance benefit SAP’s business and customers?
It is a strategic move that strengthens our position economically and environmentally. As SAP Chief Sustainability & Commercial Officer Sophia Mendelsohn recently shared, this partnership allows us to lock in carbon removal capacity at preferred rates, hedging against future price volatility. But more importantly, it enables us to create new sustainability-focused solutions for our customers, helping them meet regulatory and stakeholder expectations.
As SAP pushes ahead with its decarbonization strategy, where do you see the biggest opportunities for positive impact, both within SAP and for the broader ecosystem?
As SAP advances its decarbonization strategy, the biggest opportunities for positive impact lie in leveraging our technology and ecosystem to drive systemic change — both internally and across industries.
Within SAP, our greatest opportunity is embedding sustainability directly into core business processes — such as procurement, supply chain, and finance — using our own solutions. This not only reduces our operational GHG footprint but serves as a model for our customers. Our sustainability solutions aim to empower organizations to measure, manage, and act on their sustainability goals. By doing so, we scale our impact.
We remain grounded in the Science-Based Targets Initiative (SBTi) Corporate Net-Zero Standard and see opportunities to lead by example, even beyond 2030, by continuously improving our net-zero program and sharing best practices.
In the end, we are not just preparing for a net-zero future; we are shaping it. Through collaboration, transparency, and technology, we are proving that climate action is essential to long-term success.
Karen Restrepo Avila is Sustainability and Net-Zero communications lead at SAP.
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