SAP is committed to achieve net-zero along our value chain in line with a 1.5°C future in 2030, 20 years earlier than originally targeted. Building on its carbon reduction journey since 2009, SAP became a member of the Science Based Targets initiative and was the first German company with a science-based carbon reduction target for 2050 back in 2017. In 2019, SAP raised its commitment and adopted a 1.5° C science-based emissions reduction target.
On our pathway towards net-zero, the next intermediate milestone is 2023, when SAP aims to be carbon neutral in its own operations – two years earlier than originally targeted.
Reduced carbon emissions
Our reporting shows that in 2020, SAP was able to overachieve by 43% on its target for net carbon emissions in 2020, generating 135 kilotons instead of the anticipated 238 kilotons. This trend continued in the first half of 2021, during which SAP’s carbon emissions totaled 45 kilotons compared to 90 kilotons in the first half of 2020 (-37%).
The low emissions level is a consequence of the ongoing COVID-19 pandemic, as well as the introduction of Pledge to Flex, which enables a more flexible mix of remote and onsite work. SAP believes this trend will continue and has just announced in its 2021 half-year report that it has lowered its 2021 carbon emissions outlook from 145 kilotons to a range of 90-110 kilotons.
Our potential for decarbonization can be amplified considerably if we enhance our efforts along the entire value chain. In 2020, carbon emissions amounted to 12.300 kt along SAP’s entire value chain (including upstream and downstream emissions) compared to 135 kt net emissions for SAP’s own operations. We have started setting up a cross-company program involving experts from different lines of business to prepare for our net-zero transformation.
On our pathway towards net-zero, the next intermediate milestone is 2023, when SAP aims to be carbon neutral in its own operations. This includes all direct (Scope 1), indirect (Scope 2), and selected categories of value chain (Scope 3) carbon emissions, such as business flights, employee commuting, and external data centres (co-locations and hyperscalers).
To become carbon neutral in its own operations by 2023, SAP is following a three-pillar approach:
- Avoid: Whenever possible, SAP aims to avoid the creation of greenhouse gases.
- Reduce: If greenhouse gas emissions cannot be avoided, SAP aims to drive efficiency and reduce all types of emissions; for example, building efficiency, data centre operations, carpooling and car sharing, and e-mobility.
- Compensate: SAP has extended its compensation models for travel. If greenhouse gas emissions cannot be eliminated altogether, SAP aims to reduce them through innovations in the areas of building efficiency, data centre operations, carpooling, and car sharing, as well as e-mobility.
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