SAP is providing a proposition for ethical and sustainable sourcing contributing to a circular economy, which includes tracking the impact on people and our planet (for example, CO2 emissions, impact on water and soil, deforestation, fair wages, elimination of child labor, and percentage of recycled content).
SAP is responding to the growing need for end-to-end traceability solutions for all raw material flows. This includes tracking the impact on people and the planet, for all industries, starting with consumer goods, such as fashion and electronics, and expanding to automotive and other consumer durables.
Companies need a comprehensive traceability solution that can track complex supply chains back to the original farmer, miner, or plastic picker and can accurately show the sustainability impact of their sourcing decisions on people and the planet – for their consumers and national regulators. It’s what they need to meet regulatory requirements, differentiate their products to win more business, demonstrate positive sustainability impact from sourcing decisions, and steer climate action based on actual data instead of average or generic data.
Supply chain laws with fines and reputational risk for non-compliance are increasing. For example, recent legislation in France, Germany, United Kingdom, and the United States focuses on human rights and fair wages, exploitation, modern slavery or child labor, use of conflict minerals and checks on illegal deforestation.
The proposition leverages existing capability with agriculture products that expands and deepens our sustainability and circular economy offerings, and integrates with our sustainable materials marketplace, which is also featured during SAPPHIRE NOW.