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Sustainability (ESG)

Our sustainability program is at the core of our purpose and is embedded throughout our strategy. We strive to create positive economic, environmental, and social impact within planetary boundaries. There are two ways we can achieve this with our business activities – as an enabler and as an exemplar.

As an Enabler

With more than 77% of business transactions worldwide touching an SAP system, even a small change in customers’ core processes can have a meaningful positive impact. For example, with our Climate 21 initiative, we are helping customers account for their carbon emissions, which is the first step in reducing emissions.

You can see more examples of how technology from SAP has a positive impact on our UN Sustainable Development Goals Web site.   

As an Exemplar

The integration of economic, environmental and social performance to drive better business decisions has been a guiding principle for us for many years. We are a thought leader in integrated reporting. As part of our holistic management approach, we have established clear goals for material non-financial indicators. 

Read more in our SAP Integrated Report.

Socially Responsible Investors

Over the past five years, we have seen a significant increase in Socially Responsible Investors (SRIs) investing in SAP. As of October 2020 34% of institutional investors can be classified as SRIs. This signals clear support for our activities across all three dimensions of ESG - environment, social and governance. 

Recognition of SAP as a Leader

SAP has been recognized by many organizations as a leader in sustainability:

  • Dow Jones Sustainability Indices : #1 Software Company
  • MSCI ESG Rating: AAA
  • Carbon Disclosure Project: Climate Change A-List
  • Sustainalytics ESG Risk Rating: Low Risk, 1st Percentile in Industry

 

 

Environment

  • We are committed to doing our part in reducing our negative environmental impact, and aim to achieve carbon neutrality by 2025.
  • Our facilities and data centers are already carbon neutral.
  • We have taken innovative approaches to reduce carbon footprint related to travel. This includes internal carbon pricing on business flights, expansion of virtual meeting technology, as well as innovative alternatives to company cars, such as a BahnCard 100 (rail pass in Germany). 
  • We run environmental and energy management systems (EMS) at 55 locations worldwide.

Social

  • We employ and safeguard responsible business practices based on the UN Global Compact Ten Guiding Principles.
  • We established the first-of-its-kind Artificial Intelligence Ethics Board.
  • During the initial stages of the COVID-19 pandemic, we offered customers our Qualtrics Employee Pulse Check solutions to enable customers to obtain real-time feedback about employees needs in a time of crisis. 
  • We continue to support and foster a diverse workplace by continually increasing the percentage of women in management and supporting programs in the areas of: neurodiversity (Autism at Work), social justice, LGBT+.
  • We have expanded pro bono volunteer programming to foster social justice impact and introduced the Spotlight Black Businesses Program to assist Black-owned businesses that have been impacted by COVID-19 and protests.

Governance

  • We have decreased average tenure and increased diversity of the Supervisory Board.
  • Increased transparency in the Compensation report, as well as addressed investor feedback in the compensation system approved by shareholders in 2020.
  • Included non-financial indicators in Executive Board compensation.
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