2024 Statement SAP UK Modern Slavery Statement

2024 Statement SAP UK Modern Slavery Statement Lae alla document

12024Modern Slavery StatementThis statement is made on behalf of SAP UK Limited (“SAP UK”), as approved by its board,pursuant to Section 54 of the Modern Slavery Act 2015 Act covering the financial year ending31 December 2024. It sets out the steps that SAP UK has taken and is continuing to take toassess and address the risk of modern slavery practices in our supply chain.SAP UK has prepared this statement with input from SAP’s parent company, SAP SE. SAP UKhas also consulted and aligned with SAP Australia Limited in preparing this statement. SAP UKdoes not own or control any other operating entities.References in this statement to “SAP”, “we”, “us” and “our” are to SAP SE and, as applicable,the SAP group companies.SAP Business StructureSAP (UK) Limited is a subsidiary of SAP SE, a European multinational software and servicescorporation and a market leader in enterprise application software as well as in enterpriseresource management applications, supply chain management applications, procurementapplications software, travel and expense management software, and enterprise resourceplanning software, among others. In addition, SAP delivers relevant, reliable, responsible AI builtinto SAP business solutions. SAP SE is headquartered in Walldorf, Germany and has a globalpresence.SAP UK is a limited liability company with its registered address at Clockhouse Place, BedfontRoad, Feltham, Middlesex, TW14 8HD. The customer base comprises customers in majorindustries, including Sovereign Cloud customers such as public services, critical infrastructure,for example, healthcare, energy and natural resources, utilities, financial services andtelecommunications, retail and consumer packaged goods, as well as insurance. SAP UK hasbeen in operation for over 38 years.SAP’s purpose is to “help the world run better and improve people’s lives.” Our products andservices aim to help our customers both meet the challenges and take advantage of theopportunities presented by today’s rapidly changing world.As a global leader in enterprise applications and business AI, SAP stands at the intersection ofbusiness and technology. For over 50 years, organisations worldwide have trusted SAP tounlock their full potential by seamlessly integrating critical business operations across finance,procurement, human resources, supply chain, and customer experience. More information onSAP’s offerings is available at SAP Products. SAP’s integrated applications connect all parts ofa business into an intelligent suite built on a fully digital platform. Today, SAP serves more than230 million cloud users with over 100 solutions covering all business functions, offering thelargest cloud portfolio of any provider.More information on SAP’s structure and offerings is available in the SAP Integrated Report2024.Docusign Envelope ID: 7A3971C2-5628-4D7D-A6FF-CAF016711E2B
2Modern Slavery and Human RightsAt SAP, we believe we have a responsibility to respect human rights throughout all our businessoperations. We have policies and procedures to combat the risk of slavery in our business andour supply chains and to ensure a healthy working environment for all our staff.SAP respects and upholds the values of the International Bill of Human Rights and theInternational Labour Organisation’s (ILO) Core Labour Rights Conventions. In addition, SAPtakes guidance from international frameworks such as the United Nations Guiding Principleson Business and Human Rights (UNGPs) and the OECD Guidelines for MultinationalEnterprises on Responsible Business Conduct, to integrate human rights considerations intoSAP standard business practices, policies, and processes. SAP has signed the United NationsGlobal Compact, pledging to align its strategies and operations with universal principles relatedto human rights, labour, the environment, and anti-corruption.Our Global Human Rights Commitment Statement describes SAP’s human rights-related actionareas including modern slavery, human rights governance and risk management system,prioritised risks, preventive and remedial measures, and expectations placed on employeesand all business partners. It applies to all SAP operations worldwide. The current version isavailable on our SAP Global Human Rights Commitment Statement website and has beenrolled out globally to employees and suppliers. Ultimate responsibility for our Global HumanRights Commitment Statement lies with the SAP Executive Board. The current version of theHuman Rights Commitment Statement is available at SAP Global Human Rights CommitmentStatement.SAP is committed to respecting its employees' fundamental rights at work. As outlined in SAP’sGlobal Code of Ethics and Business Conduct for Employees, employees are also expected tocomply with all applicable laws, regulations, company policies, and fundamental principlesrelating to human rights.We do not accept forced, bonded, or involuntary prison labour nor any form of human trafficking.Employment at SAP is voluntary. Employees are free to leave their jobs after any requirednotice periods, where applicable and consistent with their employment contracts. In SAP’srecruiting and hiring processes we ensure that employees do not have to pay recruitment fees.We also make sure that they are not required to lodge deposits, identity papers, or any otherdocuments that might limit the worker’s legal status, their freedom to travel or the ability to leavetheir job temporarily or permanently upon commencing employment with SAP.SAP respects the rights of our employees to organise and to be represented by trade unionsand other bona fide representatives of employees in accordance with local laws and engage ina constructive dialogue with employee representatives. Where local laws restrict theestablishment of certain employee representations, we are open to other forms of employeerepresentation that are not prohibited under local law.These employee representative bodies consist of elected union members and/or non-unionmembers, and are consulted by SAP management mainly on topics that define the workenvironment and work processes. Collective bargaining agreements with unions are made incountries where legally required.SAP does not tolerate child labor. This is ensured via HR recruiting and hiring processes andgovernance. To foster quality education and job opportunities, we offer different vocationalDocusign Envelope ID: 7A3971C2-5628-4D7D-A6FF-CAF016711E2B
3training programs which may include minors under the age of 18. They receive a specialemployment contract and special care is paid to safeguard limitation of working hours andprotect their well-being.We ensure that our workers are compensated with wages and benefits that meet or exceedthe legally required minimum. Laws relating to pay, employment benefits, hours of work, timeoff, leaves of absence and other terms and conditions of employment vary from country tocountry. We are expected to comply with all applicable employment-related laws. This isensured via SAP HR processes and governance.Due Diligence ProcessesSAP’s Human Rights Commitment Statement has a global scope, it applies to SAP operationsworldwide. SAP also expects all business partners (for example, suppliers, partners, customers)to respect human rights and act in line with global human rights frameworks.The Human Rights Commitment Statement applies to SAP operations worldwide. We expectall our suppliers and partners to respect human rights and to avoid complicity in human rightsabuses. SAP’s Supplier Code of Conduct and Partner Code of Conduct require our suppliersand partners to uphold labour rights and to provide a safe and healthy work environment for allemployees. SAP also has established contractual assurances through the codes of conduct forsuppliers and partners, which are an integral part of SAP’s respective General Terms &Conditions.Supply ChainSAP operates a global value chain, providing cloud-based software, services, and support tocustomers worldwide. While SAP does not manufacture any physical products, it relies on acomplex supply chain to support its daily operations in offices and data centres. This supplychain is a crucial part of SAP’s upstream value chain and involves the procurement oftechnology, hardware, and services, as well as the management of relationships with suppliersand partners to deliver integrated solutions.SAP’s supply chain consists of thousands of suppliers from around the world who provideproducts and services essential for the development and delivery of SAP’s offerings. Keyprocurement items include hyperscaler services and IT hardware.We acknowledge that in our extended supply chains, we are exposed to risks in the area ofworking conditions, environment or health and safety, especially when purchasing products orservices from high-risk industries or when purchasing in countries with higher risks to humanrights. SAP actively manages and assesses the social and ethical impacts of its supply chain,with a focus on protecting vulnerable groups and fostering responsible business practicesthroughout its value chain.Risk Assessment and ManagementIn our commitment to addressing modern slavery risks, SAP conducts a comprehensive riskanalysis across the value chain to identify and prioritise human rights risks, ensuringcompliance with relevant legal frameworks. We continuously monitor and evolve this processand seek to embed it into our organisation and business relationships.Docusign Envelope ID: 7A3971C2-5628-4D7D-A6FF-CAF016711E2B
4SAP’s Human Rights Due Diligence program assesses and prioritises the material mattersconcerning our own employees and value chain workers, such as adequate wages, health andsafety, gender equality, equal pay for work of equal value, measures against violence andharassment, and eradication of child and forced labour. We use Environmental, Social andGovernance risk management software to ensure we have a structured process for assessingpotential impacts of our own operations and those of our direct (“Tier 1”) suppliers. Forinformation about our suppliers, see the Workers in the Value Chain section of the SAPIntegrated Report 2024.Our risk assessment process includes the following steps: Step 1: Performing an abstract risk analysis in which country-specific and industry-specific risks related to human rights and environmental standards are evaluated byreferencing quantitative indicators from the World Bank and the United Nations andqualitative data from sources such as the Corporate Social Responsibility Risk Check ofthe German Helpdesk on Business and Human Rights. Step 2: Performing a concrete risk analysis in which we identify risks from our ownoperations and from our direct suppliers. For our own operations, we examine high-riskclusters more closely by interviewing experts, drawing on internal data from, for example,our complaints mechanisms and environmental management system, and queries fromthe country-specific financial risk identification process.SAP also conducts detailed assessments of high-risk direct suppliers, particularly thosewith significant spend (that is, of more than €50,000) by using questionnaires to gatherinformation about their response to the risks that were identified. Step 3: Prioritising the assessment of potential negative impacts related to our ownoperations and value chain based on criteria such as the nature of our business activities,our ability to influence suppliers, probability and severity (scale, scope, remediation) ofpotential violations, and the nature of our causal contribution.The findings are integrated into regular risk analysis that is carried out at least annually and asrequired on an ad hoc basis. SAP has also used and will continue to use an external serviceprovider to conduct risk analysis.SAP also assesses potential impacts related to our indirect (“tier 2-n”) upstream supply chainand downstream value chain. For example, we use impact measurement and valuation to gainan understanding of positive and negative impacts in our value chain. For more information aboutour impact measurement and valuation, see the “Impact Valuation Approach” section of the SAPIntegrated Report 2024.Risks of Modern Slavery in our Supply ChainsSAP UK continues to monitor the risks of modern slavery in its supply chain, and has identifiedthe following focus areas to strengthen controls and processes: Employees and contractors who support SAP’s internal business operations, whichincludes labour in developing countries who provide software IT/ HR/ Finance sharedservice support services to SAP; Employees and contractors who support maintenance of SAP’s software and developmentDocusign Envelope ID: 7A3971C2-5628-4D7D-A6FF-CAF016711E2B
5of solutions for SAP’s customers which includes software development and maintenancepersonnel in developing countries; Suppliers of corporate and facilities management services to SAP such as cleaning andfacilities contractors; Suppliers who provide data centre facilities and services to SAP; Suppliers who provide external staffing to SAP; Suppliers of stationery, kitchen supplies, marketing supplies; and Other suppliers located in developing countries.SAP UK assesses the effectiveness of its actions by monitoring whether any incidences ofmodern slavery have been identified through its risk assessment and audit processes. Wecontinue to review our processes in conjunction with the broader SAP group to help assess andaddress modern slavery risks in our operations and supply chains.Key Performance IndicatorsWe continually assess the effectiveness of the measures we have in place to identify andmanage modern slavery risks. Examples of other performance indicators SAP UK has in placeinclude:- Keeping record and measuring percentage of completion rate of employees conductingtheir annual compliance training;- Number of whistleblowing alerts; and- Number of employee discrimination complaints.We encourage all employees, including temporary external staff, to report conduct that violatesour policies. Our whistleblower reporting tool is also available to external groups.Whistleblower Reporting Tool and PolicySAP recognises the importance and encourages the reporting of potential misconduct or apotential improper state of affairs relating to the Company. To foster the goal that every SAPemployee worldwide can be heard and speak out without fear and retaliation, we haveestablished a Global Ombuds Office which operates as an informal, independent, andconfidential channel on top of the formal complaint mechanisms in place, including our SpeakOut whistleblower reporting tool.Speak Out at SAP is SAP’s independently hosted whistleblower reporting tool, through whichany matter or concern can be reported easily, and, if desired, anonymously. The tool is available24 hours a day, seven days a week, both internally to SAP employees and externally toconcerned parties, including customers, suppliers, and partners. The tool is managed by SAP.Reports may be submitted either directly by the reporter through the Internet based portal, or byphone with local language support across the globe to maximise accessibility for reporters. In allcases, SAP continues to maintain a strict non-retaliation policy.Through this tool, we encourage all employees, including temporary external staff, to reportconduct that violates our policies. Beyond Speak Out at SAP, we provide further reportingchannels, including the internal ticketed system, a postal address for written submissions, asDocusign Envelope ID: 7A3971C2-5628-4D7D-A6FF-CAF016711E2B