The major topics of geopolitical risk, artificial intelligence, and economic uncertainty consistently circled back to environmental exposure and long-term resilience, pointing to a broader shift: sustainability is becoming less of a separate agenda item and more an underlying consideration in enterprise risk and strategy.

For leaders looking to shape the next phase of business, two major and consequential themes emerged.

1. AI is a sustainability enabler with responsibilities

Artificial intelligence was central to many Davos discussions this year, including those touching on sustainability. The focus was less on experimentation and more on how AI is already influencing operational and strategic decisions.

In several sessions, leaders pointed to practical applications where AI, combined with sustainability and operational data, is helping organizations to reduce waste, improve resource efficiency, and better anticipate environmental risks.

At the same time, there was no lack of recognition that AI brings new challenges. Its growing energy and water requirements, along with questions around governance, transparency, and equity, featured prominently in discussions. Leaders emphasized the fact that AI鈥檚 sustainability value depends heavily on how well it is integrated into existing business systems and decision-making processes, rather than deployed as a standalone technology. This was also underscored by broader analysis showing that emerging regulatory frameworks are struggling to keep pace with AI鈥檚 environmental footprint and governance needs. 

For many organizations, the focus shifted towards while remaining aligned with enterprise governance and financial oversight.

2. Water is key to societal and economic stability

One of the most prominent sustainability topics at Davos 2026 was water. Across both formal and informal sessions, leaders discussed water and ocean health as a foundational element to stable societies, economies, and business continuity.

Much of the conversation focused on the growing gap between economic dependence on water and the level of investment dedicated to protecting and managing water systems. With a significant share of global GDP in the coming decades, participants highlighted the operational and financial implications for supply chains, production facilities, and communities. According to the , 31% of global GDP could be located in regions of high water stress by 2050, underscoring the urgency of rethinking water investment and risk. 

To this end, new collaborative initiatives were announced during the week, including efforts aimed at integrating water considerations more directly into corporate strategies and strengthening ocean stewardship across industries. For example:

• were selected at Davos to boost water resilience across infrastructure, industry, and agriculture systems. 
• were launched to accelerate water finance and investment ahead of the 2026 UN Water Conference. 
• was directed at bridging the 鈧�6.5 trillion global water infrastructure gap, and commitments were made to mobilize private capital and improve water resilience strategies. 

These discussions signaled a move away from viewing water solely through a sustainability reporting lens and toward understanding it as a material risk and resilience issue for businesses.

What can business leaders take away?

While AI and water dominated the headlines at this annual meeting, sustainability quietly permeated most strategy meetings, with three takeaways arising as directional signals for leaders looking to build resilience into their business:

Sustainability is increasingly understood as financial risk

One of the clearest signals from Davos was the extent to which sustainability risks are now discussed in financial terms.

The World Economic Forum鈥檚 , released shortly before the meeting, reinforced this view by ranking environmental risks (including extreme weather and biodiversity loss) and critical changes to Earth systems among the most severe long-term global threats. The same report also highlighted that adverse outcomes from artificial intelligence are rising sharply in long-horizon risk rankings, reflecting growing concern about both technological and environmental disruption. 

While geopolitical and economic issues dominated short-term attention at the annual meeting, environmental risks were consistently framed as persistent factors shaping long-term planning and resilience strategies.

Furthermore, the role of the CFO is also evolving to meet sustainability requirements, including reporting non-financial KPIs, managing plastic and carbon taxes, steering the business, and aligning business decisions with carbon and environmental cost trade-offs. and management solutions can provide the capabilities needed to address CFO sustainability priorities.

As 麻豆原创 Chief Sustainability & Commercial Officer Sophia Mendelsohn noted during the week,聽“Sustainability remains firmly planted in both the Davos agenda and the minds of the CEO and CFO. The reality of climate change persists鈥攂oth its risks and opportunities, and they are already showing up on the balance sheet.“

For many executives, this framing reflects how sustainability considerations are increasingly influencing investment decisions, insurance strategies, and assessments of long-term enterprise value.

The focus is shifting from ambition to execution

Davos discussions also underscored a growing emphasis on execution. While sustainability remains firmly planted in the C-suite agenda, many leaders acknowledged a gap between ambition and implementation.

Despite years of commitments and target-setting, fewer than one in five companies have implemented climate adaptation and mitigation measures at scale. This is that helps explain why sustainability strategies are now evaluated more closely through the lens of financial feasibility, operational readiness, and data credibility.

In an environment where sustainability investments compete with other priorities, including AI and digital infrastructure, leaders emphasized the need for clear business cases and measurable outcomes. Sustainability initiatives that can demonstrate value creation and risk reduction are more likely to secure long-term support.

Integration decides whether sustainability insights lead to action

Data availability is no longer the primary challenge for most organizations. The tools to measure emissions, water use, climate exposure, and supplier impacts are widely accessible. What remains difficult is turning that information into decisions.

Across Davos, there was broad agreement that sustainability data needs to be integrated into core business systems for planning, procurement, asset management, and finance. When sustainability information sits outside these systems, it tends to inform reporting rather than operational or strategic action. When it is embedded, it can support more forward-looking decisions around resilience, investment, and supply chain design.

This shift toward integration reflects a broader understanding that sustainability efforts are most effective when they are aligned with how the business already operates.

connects business and sustainability data to help give full visibility across a company鈥檚 value chain, enabling it to align business objectives with sustainability priorities across areas like material choice, efficient transport and distribution, improved asset performance, and reduced carbon impact.

Davos 2026 clearly reflected a maturing phase of the sustainability conversation, one that is less about visibility and increasingly about how organizations can confidently prepare for the decade ahead.

For business leaders shaping sustainability strategies, there is a pressing need to make plans financially grounded, operationally integrated, and supported by reliable data.

Enterprise systems play an important role in this transition. When sustainability information is connected across business functions, leaders gain clearer insight into risk and opportunity, supporting more resilient and informed decision-making.

Monica Molesag is global head of Sustainability Communications at 麻豆原创.

It’s a mindset shift 麻豆原创 is already embracing to help our customers build genuine business resilience. It lies not just in reducing our own emissions, but in actively supporting and financing the restoration of the natural systems that underpin global economic stability.

The business case for nature-based initiatives

The interdependence between business and nature is no longer theoretical. Today, US$44 trillion of economic value generation depends directly on nature. From food systems that sustain people to water resources, natural capital forms the invisible infrastructure of the global economy. Yet this foundation is eroding rapidly, creating systemic risks that no company can ignore.

For 麻豆原创, investing in forest ecosystems is not just philanthropy, it’s risk management. By financing and supporting nature-based climate projects, we can protect ourselves and our stakeholders against the loss of natural capital while strengthening our position as a sustainability leader. These investments provide opportunities to regenerate the ecosystems that our economies and societies depend on for food, water, medicine, and sustainable growth.

A comprehensive approach to net-zero

In our mission to help the world run better and improve people’s lives, 麻豆原创 has committed to achieving net-zero emissions along our entire value chain by 2030, aligned with the science-based 1.5掳C future outlined in the Paris Agreement negotiated at COP21 in in 2015, 20 years ahead of our original target. This accelerated timeline reflects both urgency and ambition.

Until 2030, 麻豆原创 is committed to financing projects that reduce and remove more CO₂ from the atmosphere than our own operations鈥攊ncluding scope 1 and 2 emissions plus business travel鈥攑roduce each year. This commitment means we’re taking responsibility for the impact of our business operations while we scale up our decarbonization efforts.

This strategy follows a clear hierarchy: avoid and reduce emissions first, then neutralize what remains. We’re working to reduce gross greenhouse gas emissions by 90% across our value chain on a market-based accounting approach. The remaining emissions, no more than 10%, in line with Science Based Targets initiative standards, will be neutralized through high-quality, verified carbon removal projects spanning both nature-based and engineered solutions.

Matthias Medert, global head of Sustainability at 麻豆原创 SE, says: 鈥淥ur reduction efforts have earned 麻豆原创’s inclusion in the EU Paris-Aligned Benchmarks, giving investors confidence in our approach and demonstrating that rigorous action to tackle global issues strengthens rather than compromises business performance.鈥�

Nature-based carbon finance in action

Since 2012, 麻豆原创 has been building one of the most comprehensive corporate reforestation programs in the technology sector. To date, we have planted 20.51 million trees towards our commitment in 2024 to plant 25 million trees by 2030 while restoring more land than our offices and data centers occupy.

These aren’t isolated exercises. Through long-term investment in the , 麻豆原创 is supporting comprehensive 10- to 20-year projects that combine reforestation, forest protection, improved forest management, rural energy, and agroforestry initiatives implemented directly with local communities. These initiatives restore degraded natural ecosystems, improve the livelihoods of rural populations, and facilitate transitions to efficient rural energy and regenerative agriculture.

In addition to this, to help advance its mission to secure the Amazon rainforest鈥檚 future. By tracking 15 strategic KPIs鈥攊ncluding deforestation rates and production chain revenue鈥攁nd sharing data with stakeholders through the 麻豆原创 Sustainability Control Tower solution, FAS is steering its efforts with accurate and reliable ESG data, positively impacting preservation efforts in the Amazon, home to not only the greatest fresh water reserve on the Earth, but around 390 billion trees and to 2.2 million indigenous people across 400 ethnic groups whose traditional knowledge is essential to the conservation of local and global biodiversity.

Partnerships amplifying impact

As a member of the corporate alliance managed by the World Economic Forum, 麻豆原创 is contributing to the collective goal of conserving and restoring multiple ecosystems around the world, supporting projects in over 25 countries, including Brazil, Madagascar, and the Philippines.

Technology can drive indirect reforestation as well. Through a partnership with , the not-for-profit search engine, every 50 searches made by 麻豆原创 employees support the planting of new trees and investments in sustainable developments. This partnership has resulted in over 760,000 trees planted to date, while employees conduct their work and maintain their privacy through anonymized search queries.

Beyond nature-based solutions, we have partnered with , investing in engineered carbon removal through its Direct Air Capture (DAC) technology. This diversified portfolio approach helps ensure that we’re supporting the full spectrum of solutions needed.

Connecting to COP30 and the Tropical Forest Forever Facility

麻豆原创’s approach to climate finance aligns powerfully with emerging global frameworks, particularly the (TFFF) initiative, a top financing priority for Brazil’s COP30 presidency. The TFFF, formally launched last week at COP30 in Bel茅m, is designed to provide long-term, predictable financing for conserving and expanding tropical and subtropical moist broadleaf forests.

This initiative reflects a critical evolution in climate finance thinking. Nearly 100 countries, representing two-thirds of global greenhouse gas emissions, have submitted or announced new Nationally Determined Contribution targets that include strategies to safeguard forests. 麻豆原创’s multi-year investments in the demonstrate the kind of long-term, community-centered approach that the COP30 presidency seeks to scale globally. Our experience shows that when corporations commit to sustained financing with integrity and transparency, the impacts multiply: carbon is sequestered, biodiversity rebounds, communities build resilience, and businesses thrive.

Corporate action beyond the value chain

Provided it doesn’t undermine current corporate decarbonization programs, the financial muscle of corporations can bridge critical gaps in parts of the world where funds aren鈥檛 sufficiently available to restore ecosystems and build strong, durable economies and livelihoods.

Sustained corporate financial contributions provide quantifiable benefits to strengthen business resilience beyond 麻豆原创’s own value chain, delivering positive impacts for local and global populations and for biodiversity. Through collaboration, transparency, and technology, we’re proving that climate action isn’t just compatible with long-term business success, it’s essential to it.

The question for business leaders isn’t whether to invest in climate finance, but how quickly they can scale their commitments. The resilience of our businesses, our economies, and our planet depends on the actions we take today.

Learn more about and how we support our customer鈥檚

Karen Restrepo 脕vila is Sustainability and Net-Zero communications lead at 麻豆原创.

AI, with already proven applications, can unlock insights to reduce global greenhouse gas emissions by . , over half of sustainability executives say one of their top actions in the next three years is expanding their use of AI to enhance ESG capabilities.

Most businesses have not yet realized AI鈥檚 full potential for sustainability. In fact, are using AI today to reduce carbon emissions. But those ready to do so will gain a decisive advantage that goes beyond emissions reduction. 麻豆原创鈥檚 ERP-centric approach enables organizations to deliver sustainability outcomes with applications, data, and AI embedded into . With sustainability reporting, data processing, automation, and strategic insights, AI can navigate your business through today鈥檚 climate challenges and ensure tomorrow鈥檚 competitiveness.

Power on, ethically and responsibly

Scaling AI solutions comes with considerable energy and water usage. To ensure net benefit, this needs to be part of return on investment conversations. With robust governance and renewables-backing however, AI is able to reduce more emissions than it generates.

All 麻豆原创 data centers are powered by 100% renewable energy and any emissions from use of third-party AI systems are calculated and included in the company鈥檚 Scope 3 emissions.

Used ethically and responsibly, AI can be the catalyst of your sustainable business transformation. Here are eight ways that businesses use 麻豆原创鈥檚 AI-powered systems to build their sustainable advantage.

Improve efficiency with automation

1. Compliance information processing

The for product compliance, AI-assisted compliance information processing capability can automatically extract compliance information from updated documents and map the information to compliance requirements.

This can reduce costs in product compliance disclosures, reduce penalties and fines in environmental management, and automate processes to reduce the risk of manual errors.

This helps turn a 50-minute task into a five-minute job and reduce processing and evaluation costs by 90%.

2. Declaration image analysis

With the , AI-assisted declaration image analysis capability, you can automatically extract data and information from sustainability declarations regardless of format.

This helps cut review time, eliminate manual error risk, and ensure your reports are ready for required external audits.

Without AI, it takes roughly five minutes to review, extract, and post information from declarations. With AI, it鈥檚 just 20 seconds.

3. Permit management

can read hundreds of pages in seconds, extract the compliance requirements, and propose clear tasks to meet permit requirements.

This AI-assisted capability can save days of permit review and interpretation, remove the need to hire external consultants, and lead up to an 80% reduction in environmental penalties and fines.

Your personal AI carbon consultant

4. Emission factor mapping

奥颈迟丑听, 麻豆原创鈥檚 AI-enhanced solution, users can calculate product and corporate carbon footprints. Where actual supplier emissions data is given, it can retrieve that information from 麻豆原创 Sustainability Data Exchange and other systems. When estimates are required, the solution can automatically find the most accurate emissions factors from databases and map those to products.

Audit-ready emission factor mapping can turn a 10-minute manual task into a two-minute verification.

5. Report generation

In the solution, you can generate comprehensive ESG reports in just a few clicks:

• Automatically generate reports that align with internal sustainability strategies and meet external requirements such as the Corporate Sustainability Reporting Directive (CSRD).
• Take data collection from a half hour to a half minute and report creation and drafting from 30 hours down to just five hours, all the while eliminating confusion and the risk of manual errors.

6. Carbon emissions analysis 

From reporting on today to planning for tomorrow, , 麻豆原创鈥檚 copilot, can take current carbon emissions data and return actionable insights that help reduce emissions and guide corporate sustainability strategies. 

By combining financial and carbon data, Joule can create carbon intensity KPIs and can be your ultimate corporate sustainability consultant.

The AI safety officer for your EHS team

7. Safety observation reporting

Complex safety reporting procedures dissuade employees from reporting potential hazards. With the 麻豆原创 S/4HANA Cloud Public Edition, EHS workplace safety, AI-assisted safety observation reporting capability, basic users can input safety observations in natural language, and the AI model can process that into a formal incident report, prompting the user for any missing details.

This can increase the likelihood that employees report safety hazards and helps prevent severe incidents by identifying potential safety issues in advance.

8. Safety instruction generation

Your AI safety officer can generate clear safety instructions for specific equipment based on the latest risk assessments and job hazard analyses.

With 麻豆原创 S/4HANA Cloud Public Edition, EHS workplace safety, AI-assisted safety instruction generation, the time and effort of manually prescribing and updating safety instructions can be dramatically reduced.

Solve today鈥檚 sustainability challenges while preparing for tomorrow

The right AI integration can ensure you future-proof your operations while shining a light on the path that drives competitiveness.

What sets 麻豆原创 apart is our suite-first, AI-first approach that helps ensure sustainability isn鈥檛 an add-on, but a strategic enabler that can deliver measurable outcomes at scale. 麻豆原创鈥檚 one sustainability data model can drive consistent reporting, deeper insight, and confident decisions across every sustainability process, product, and partner network.

With a responsible AI partner, businesses can realize measurable financial returns on AI investments and unlock sustainability benefits; automate manual-heavy paperwork; identify emissions hot spots and steer their business toward a decarbonized economy; and make environmental impact tracking visible to all lines of business based on a reliable single source of truth. With an integrated set of capabilities, solutions help businesses address their sustainability needs holistically and across topics. The result is speed, trust, and traceability, which turn sustainability into strategy, not just compliance.

Get in touch to find out how 麻豆原创 can help your business power on with sustainability solutions.

Monica Molesag is global head of Sustainability Communications at 麻豆原创.

Q: How does 麻豆原创 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鈥檚 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 麻豆原创鈥檚 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鈥檛 just about reporting numbers; it鈥檚 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掳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 鈥� no more than 10 percent 鈥� will be neutralized through high-quality, verified carbon removal projects. Our reduction efforts have earned 麻豆原创鈥檚 inclusion in the EU Paris-Aligned Benchmarks, which gives climate-conscious investors confidence in our approach.

What does 麻豆原创鈥檚 decarbonization strategy consist of?

Our transformation is structured around four interconnected pillars:

With cloud transformation, we鈥檙e accelerating the shift from on-premise to cloud solutions, with 麻豆原创-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鈥檙e addressing them through joint commitments and shared accountability.

In internal operations, we have several initiatives in place. For instance, since 2014 麻豆原创 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 麻豆原创’s residual emissions that remain beyond聽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聽our long-term investments in the Livelihoods Carbon Funds and聽Climeworks’ Direct Air Capture solutions.聽The partnership with Climeworks聽marks a significant milestone for 麻豆原创 and our commitment to durable carbon removals. Additionally, we make聽annual contributions聽to climate finance. The voluntary investments made during our transition to net-zero allow us to take responsibility for our emissions, increase our聽overall impact聽beyond our聽own decarbonization efforts, and help the world keep their climate targets聽in reach.

Where does the 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 麻豆原创 Sustainability Control Tower, and making it available via 麻豆原创 Store. These tools will help companies manage and mitigate emissions in real time, making carbon removal more actionable at scale.

Is Climeworks also adopting 麻豆原创 solutions?

Yes, and that is part of what makes this partnership so compelling. Climeworks has implemented 麻豆原创 S/4HANA Public Cloud through the GROW with 麻豆原创 journey and is using the 麻豆原创 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 麻豆原创鈥檚 business and customers?

It is a strategic move that strengthens our position economically and environmentally. As 麻豆原创 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 麻豆原创 pushes ahead with its decarbonization strategy, where do you see the biggest opportunities for positive impact, both within 麻豆原创 and for the broader ecosystem?

As 麻豆原创 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 麻豆原创, 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 麻豆原创.

The energy transition is creating a profound shift across industries and global economies. Amplified by technological innovation and intense competition, it is reshaping sectors and shifting economies toward renewable energy. This change is not only an environmental necessity but also a catalyst for economic growth, challenging the traditional dominance of fossil fuels. With capital investments increasingly directed toward renewable energy infrastructure, investors are aligning their priorities with sustainability, signaling that profitability and environmental stewardship can coexist. Yet, the ongoing prominence of oil and gas underlines the complexity and scale of this transition. 

In parallel, the circular economy is gaining momentum as businesses address the dual challenges of material scarcity and carbon reduction. At COP29, there was significant discussion about how a circular approach focused on rethinking supply chains, redesigning products, and optimizing resources could reduce dependency on finite materials while driving sustainable economic growth. By adopting circular economy principles, businesses can minimize waste and keep valuable materials in circulation, contributing to a more resilient and sustainable future. 

The Role of Business in Transforming Climate Commitments into Tangible Outcomes 

One of the central discussions at COP29 was the need for harmonizing global standards for carbon reduction and accounting. Foreign policy players, along with the private sector, stressed the importance of mobilizing finance for sustainable capitalism. In particular, there was a call for clearer and standardized reporting frameworks to simplify the process and ensure transparency. One critical area was the importance of accurate data collection for carbon markets and product-level carbon accounting, which can help businesses engage consumers and reduce emissions. 

There are three ways technology plays a pivotal role in addressing some of these challenges: 

• is available in every organization鈥檚 ERP system, so it鈥檚 time to start automating data collection and reporting processes to ease some of the regulatory burden.
• Companies should leverage IT spending to support sustainability initiatives, specifically to optimize climate solutions and create circular products.
• Companies must shift focus on the to pinpoint areas with the most significant impact.

From Policy to Practice: How Technology and Global Standards Can Accelerate Climate Action 

Empowered by technology and guided by clear policies, businesses have a unique opportunity to bridge the gap between high-level climate commitments and actionable, on-the-ground strategies. 

Central to this is aligning sustainability and financial priorities. Effective demands collaboration between chief sustainability officers and chief financial officers, as climate change has evolved from an ethical and environmental issue to a pressing financial imperative. 

To accelerate progress, we need globally harmonized policies, rigorous carbon accounting frameworks, and advanced technology solutions. By embedding AI-driven innovation, robust reporting standards, and actionable insights into business operations, we can ensure that COP events, such as COP29 in Baku, are remembered as turning points 鈥� not just discussions. While the challenges ahead are formidable, the opportunities for transformative action are even greater 鈥� and is here to lead the way on a low-carbon, future. 

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Sophia Mendelsohn is chief sustainability and commercial officer at 麻豆原创.

While it鈥檚 relatively straightforward to control and reduce a company’s direct emissions, mitigating those that arise along the whole supply chain requires a lot of time, collaboration, and data sharing. One major challenge companies face is outdated tools, such as spreadsheets or questionnaires, and disconnected processes to collaborate with their network. Furthermore, the lack of standardized carbon footprint calculations and exchange methods has led to a variety of different approaches to collect and report on data, resulting in many organizations relying only on industry averages rather than actual numbers.

Managing carbon to accelerate a net-zero future makes measurability critically important. That is where technology and innovation can make a real difference. With 麻豆原创 Sustainability solutions and our ERP-centric, cloud-based, AI-enabled approach, we support our customers to use integrated sustainability data and embed it holistically into their core business processes.

What Is 麻豆原创 Sustainability Data Exchange?

麻豆原创 Sustainability Data Exchange helps facilitate standardized carbon data exchange between partners along the supply chain, supporting organizations to move from estimates to actuals in their upstream emission data. The application allows users to share emissions data to help implement their net-zero strategy and take climate action by identifying products or processes with high potential for CO2 reduction, avoiding double emissions counting, and optimizing footprints with actual supplier data. It helps drive scalability, standardization, and trust in carbon data exchange across the supply chain.

麻豆原创 Sustainability Data Exchange is seamlessly embedded into the 麻豆原创 landscape, connecting to for master data replication and integrating with to help enable accurate product carbon footprint calculations on a large scale.

To Harness the Power of Networks, Standardization Is Key

To be able to exchange carbon footprint values, standardization and interoperability with industry networks and frameworks are key, as they foster co-innovation and collaboration without a loss of data sovereignty. 麻豆原创 Sustainability Data Exchange is interoperable and compliant with the new standards set by the automotive network and the Partnership for Carbon Transparency (PACT) by the World Business Council for Sustainable Development ().

PACT, for example, developed the global standard for calculating and exchanging consistent, comparable, and credible emission data that occurs along a company鈥檚 value chain and is outside its direct control, known as scope 3 emissions. Catena-X works closely with PACT to establish a joint standardization foundation on carbon accounting and sharing while adding industry-specific extensions.

Catena-X has certified 麻豆原创 Sustainability Data Exchange for its sustainability use case. , a tier 1 automotive supplier, was one of the first customers to harness the application when it faced challenges in calculating its product carbon footprint in a standardized way to exchange product carbon footprint values with both customers and suppliers. With 麻豆原创 Sustainability Data Exchange, WITTE Automotive can integrate the supplier footprints it receives through the Catena-X network, precisely calculate the product carbon footprint of parts and components, and publish the calculated values of its finished products within the network.

鈥淭his open and collaborative data ecosystem perfectly reflects 麻豆原创鈥檚 vision to enable every organization to become a network of intelligent, sustainable enterprises and gives the companies leveraging the Catena-X automotive network access to a broad portfolio of 麻豆原创 solutions, from enabling the traceability of products across multiple parties in the supply chain to tracking and calculating the scope 3 emissions.鈥�

– Christian Klein, CEO, 麻豆原创 SE

In addition, 麻豆原创 Sustainability Data Exchange embraces the power of , leveraging the depth and breadth of a global network trusted by millions of businesses, through which nearly US$6 trillion of annual commerce is executed via over 750 million transactions.

A Core Pillar of the Green Ledger

Having an accurate view of carbon emissions across the entire supply chain not only enables data exchange but can have a real impact on the bottom line. Many companies want to make carbon an integral part of the corporate balance sheet, measuring and managing it with the same precision as cash 鈥� therefore treating carbon like money. The use of 麻豆原创 Sustainability Data Exchange and 麻豆原创 Green Ledger, which will be generally available at the end of 2024, can provide a strong basis for making financial decisions.

Start the 麻豆原创 Sustainability Data Exchange product tour to learn more.

麻豆原创 Sustainability solutions can support even more than carbon management and environmental, social, and governance (ESG)-related disclosures. Check out our to learn more about support for operational compliance and material transition and subscribe to the to stay up-to-date.

Gunther Rothermel is chief product officer and co-GM for 麻豆原创 Sustainability.

Two weeks ago, 麻豆原创 joined global business leaders, political changemakers, decision-makers, and representatives from civil society for a week of focused discussions on the transition to a low-carbon, circular economy. Across dozens of in-person and virtual sessions, 麻豆原创 reaffirmed its commitment to enabling a more sustainable world through an ERP-centric, cloud-based, AI-enabled approach.

At Climate Week, 麻豆原创鈥檚 focus on AI, precise carbon accounting, and expanded commitments to nature conservation highlighted its proactive approach to addressing the climate crisis.

AI鈥檚 Role in Advancing Sustainability

A major topic during New York Climate Week was the role of . Key discussions highlighted how AI can assist chief sustainability officers (CSOs) and their teams in managing the complex data necessary for effective sustainability initiatives. By processing disjointed and multimodal data, AI empowers companies to monitor, predict, and optimize their systems, leading to improved sustainability outcomes across supply chains and energy grids.

AI serves not only as a tool for automation but also as a strategic ally, embedding sustainability into core business processes. Last month, 麻豆原创 shared two innovative AI-driven use cases: 麻豆原创 Sustainability Control Tower, AI-assisted ESG report generation and emission factor mapping capabilities. These capabilities help companies enhance carbon footprint calculations and streamline sustainability reporting. With real-time data, companies can make decisions faster and align with their sustainability goals.

However, the discussions also acknowledged the challenges associated with AI deployment, including high energy consumption, potential biases, and data privacy concerns. Addressing these challenges is crucial for ensuring AI’s sustainable application.

Sector-specific applications of AI were also explored. In the energy sector, AI can optimize consumption patterns, while in construction and consumer goods it can aid in waste reduction and resource efficiency. By integrating AI with 麻豆原创 solutions, companies can enhance supply chain optimization, route planning, and demand forecasting.

Toward More Precise Carbon Accounting

Another critical topic at Climate Week was the need for companies to accurately track, report, and manage their carbon emissions while aligning their environmental impacts with financial operations. To thrive in today鈥檚 regulatory landscape, organizations must adopt robust sustainability management systems. With regulations like the Corporate Sustainability Reporting Directive (CSRD) on the horizon, businesses are transitioning from voluntary to mandatory reporting, navigating over 600 global regulations and frameworks.

To address these challenges, 麻豆原创 will make the 麻豆原创 Green Ledger solution generally available in December 2024. This innovative solution can integrate carbon and financial data, helping provide the real-time visibility essential for precise carbon accounting. This integration not only helps enhance compliance, but can also allow companies to gain a competitive edge by speeding up action towards sustainability.

Expanding Commitments to Nature Conservation

Starting in 2024, 麻豆原创 is enhancing its net-zero strategy by committing to nature conservation and financing global climate projects for carbon removal and carbon reduction. It aims to plant and protect 25 million trees by 2030 and invest in wetland conservation. These initiatives align with 麻豆原创鈥檚 goal of achieving net-zero emissions by 2030, 20 years ahead of the original timeline.

麻豆原创 believes that financing climate projects beyond its value chain is essential to restoring ecosystems and fostering resilient, low-carbon economies. This comprehensive approach supports broader climate action and shifts corporate perceptions, demonstrating that sustainability is integral to long-term business success, not merely an operational add-on.

Leading the Charge

Through an ERP-centric, cloud-based, AI-enabled approach, 麻豆原创 is well-positioned to lead the charge toward a more sustainable future while enabling customers to navigate the complexities of climate action. As always, collaboration and commitment from all sectors will be vital in driving truly meaningful change, and COP29 in Baku, Azerbaijan, will be an opportunity for the sustainability community to unite in accelerating global action, fostering new partnerships, and advancing innovative solutions.

By integrating technological innovation with strategic sustainability initiatives, 麻豆原创 is not just adapting to the evolving landscape of sustainability, but is actively shaping it and charting the course for a resilient, low-carbon economy where businesses can thrive while safeguarding the planet for future generations.

Hear from 麻豆原创 Sustainability executives and customer Ambipar at Climate Week 2024 and listen to our on how data and tech drive corporate sustainability.

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Monica Molesag is sustainability communications lead at 麻豆原创.

Net Zero as a Service brings together a combination of 麻豆原创鈥檚 robust cloud solutions and Ambipar鈥檚 deep carbon credit generation and trading expertise to help customers seamlessly manage and offset carbon emissions.

鈥淚n partnering with 麻豆原创, we are bringing together two companies with a shared commitment to help organizations achieve net zero,鈥� said Tercio Borlenghi Junior, CEO of Ambipar. 鈥淏y combining 麻豆原创鈥檚 technology with Ambipar鈥檚 decarbonization expertise to create Net Zero as a Service, customers will have access to a simple but comprehensive solution that contributes to the low carbon economy.”

Comprehensive Carbon Management

Net Zero as a Service can equip 麻豆原创 customers globally with solutions for the entire decarbonization journey. 麻豆原创鈥檚 ERP-centric and AI-enabled solutions will provide end-to-end carbon management, allowing customers to establish a common data foundation, seamlessly measure emissions and make granular and timely decisions that are financially and environmentally sound. Customers can neutralize emissions by purchasing internationally certified carbon credits through Ambipar鈥檚 technology platform AMBIFY, available on the 麻豆原创 Store, the online marketplace for 麻豆原创 and partner offerings.

鈥溌槎乖� customers are increasingly seeking ways to measure and offset their carbon emissions,鈥� said Adriana Aroulho, president of 麻豆原创 Brazil. 鈥淭hrough Net Zero as a Service and our partnership with Ambipar, 麻豆原创 is building on our commitment to deliver comprehensive sustainability management solutions and empowering our customers to become future-ready businesses.鈥�

Scaling Net Zero as a Service

Ambipar is currently piloting Net Zero as a Service in its own operations, tapping into the power of 麻豆原创鈥檚 solutions as it aims to meet aggressive growth targets this year, before the service becomes widely available to 麻豆原创 customers.

By leveraging 麻豆原创 Sustainability solutions, Ambipar will establish a unified data foundation, breaking down silos across the business, and seamlessly measure and manage carbon emissions. 

鈥淎mbipar is undergoing a worldwide expansion and counts on 麻豆原创 as a trusted IT partner as they scale,鈥� said Aroulho. 鈥淣et Zero as a Service will support Ambipar鈥檚 growth objectives, while helping the company effectively streamline operations, drive innovation and manage its own environmental footprint. We are thrilled to bring this service to 麻豆原创 customers.鈥�

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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.  Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of 麻豆原创鈥檚 2023 Annual Report on Form 20-F.
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麻豆原创 and other 麻豆原创 products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 麻豆原创 SE in Germany and other countries. Please see for additional trademark information and notices.

麻豆原创 pledges to remove and reduce more emissions than it annually emits and to conserve 25 million trees on its way to net zero in 2030. The financial contribution will support carbon removal and carbon reduction projects:

• Carbon removal projects: These projects remove carbon emissions from the atmosphere and store them for decades 鈥� in an ideal scenario, the storage is permanent. Examples include nature-based and technical solutions such as reforestation, where trees store carbon emissions in their biomass as well as direct air capture and storage technologies.
• Carbon reduction projects: Also known as carbon avoidance projects, these projects prevent additional carbon emissions from entering the atmosphere, reducing the overall amount of carbon emitted. Examples include avoided deforestation or energy efficiency projects.

This doubling down on its net-zero strategy follows 麻豆原创鈥檚 successful delivery on its pledge to become carbon neutral in its own operations in 2023 by balancing out unavoidable emissions with carefully selected carbon credits. While the company鈥檚 use of the statement 鈥渃arbon-neutrality鈥� will be discontinued, the dedication to reduce its carbon footprint and finance climate action beyond its own value chain remains strong.

麻豆原创 Is On Track to Plant 21 Million Trees and Plans More

麻豆原创 is on track to meet its 2025 goal of planting 21 million trees and has now raised its reforestation commitment.

By 2030, 麻豆原创 will support trusted partners and communities to plant and protect a total of 25 million trees helping to conserve diverse forests. Furthermore, 麻豆原创 will fund the conservation and rewetting of coastal and inland wetlands such as bogs and mangrove swamps. With these conservation initiatives and the increased reforestation pledge, 麻豆原创鈥檚 goal is to conserve more land than its offices and owned data centers occupy worldwide.

To ensure that selected projects deliver a positive outcome, 麻豆原创 will continue to apply the rigorous and robust due diligence that has previously informed the selection of successful climate investments such as 麻豆原创鈥檚 long partnership with , where 麻豆原创 has funded the planting of trees in Senegal, Rwanda, India, Indonesia, Guatemala, and Mexico.

麻豆原创鈥檚 Climate Finance Contribution on the Path to Net Zero

Bridging the Gap

麻豆原创 firmly believes that financing climate projects beyond a company鈥檚 value chain should be an item on every corporate sustainability agenda. As long as it does not undermine current corporate decarbonization programs, the financial muscle of corporations can bridge the gap in parts of the world where fiscal finances are not robust enough to restore ecosystems and build resilient low carbon economies and livelihoods.

This financial contribution will provide quantifiable benefits to mitigate the effects of climate change beyond 麻豆原创鈥檚 own value chain with investments in projects that deliver a positive impact for the climate, for local and global populations, and for biodiversity.

The level of the financial contribution is determined by 麻豆原创’s own emissions in a given year and is disclosed in terms of carbon emissions, since costs for carbon projects can be subject to change. 

With this financial contribution and increased commitment to land conservation and reforestation, 麻豆原创 continues its journey to introduce meaningful measures to achieve net-zero in 2030, 20 years earlier than originally planned.

Financing climate projects at the same time as pursuing its corporate net-zero agenda allows 麻豆原创 to take responsibility for emissions that cannot be avoided and actively mitigate climate change on a global level. Furthermore, the financial contribution will enable positive climate action on a far greater scale than 麻豆原创 could achieve alone.

Shifting Perceptions

In the last 15 years, corporate sustainability at 麻豆原创 has shifted perceptions on how corporations manage their own carbon emissions and how corporate sustainability agendas must be as actionable as they are accountable.

Since 2012, the has shared information on 麻豆原创鈥檚 annual environmental performance and progress on corporate sustainability targets. 麻豆原创 has led the way in showing that corporate sustainability is an integral part of business 鈥� not just an add-on to strategy or operations.

麻豆原创鈥檚 carbon impact is one of the sustainability KPIs that are indicators of future performance and form the basis of compensation elements for members of the Executive Board of 麻豆原创 SE. Today, sustainability is deeply embedded in 麻豆原创鈥檚 vision to bring out the best in every business. With its , sustainability is anchored in 麻豆原创鈥檚 purpose to make the world run better and improve people鈥檚 lives.

Key administrations are aware of this and are starting to act accordingly. Accelerating innovation in industrial products and fuels for a net-zero, circular economy聽is 聽in U.S. President Joe Biden鈥檚 Net-Zero Game Changers Initiative. Meanwhile, the new聽聽is a main element of the European Green Deal.

In parallel, the UN is collaborating multilaterally to create policy to regulate plastics. The UN Plastics Treaty is a consensus by 175 nations to deliver a legally binding agreement to tackle plastic pollution by the end of 2024. This is significant because plastic has become fundamental to the products we create and the packaging we use to contain and ship them. Plastic has an enormous impact on the environment due to the emissions involved in its creation and mismanaged plastic waste polluting the air, the oceans, our food, and even our blood.

Currently, the linear economy dominates, as聽. In the case of plastic, we take oil from the ground, turn it into products and packaging, use them, and throw them out when we鈥檙e finished. Continuing like this isn鈥檛 an option because we will run out of resources, worsen global warming, and cause further damage to our ecosystem. , so materials retain their value and can be reused.

It sounds logical, so why aren鈥檛 we doing it already? The first reason is financial. In the long term, the circular economy will create jobs, cut costs, improve profitability, and secure supply lines. Achieving this, however, requires massive capital investment in the short term. Additionally, more data is required to help us understand the impact of our decisions. And we need a new, more collaborative way of working.

Capital investment-wise, we must invest in designing and manufacturing products with circularity in mind. We need to adapt and build machinery and systems to rescue resources from existing products and turn them into new items. The labor market must evolve to train people in the skills required and to make circular economy jobs attractive, with good remuneration and benefits packages. More wealth must also flow back up the supply chain to ensure the sustainability of raw materials and to enable growth and sustainable manufacturing. To help companies and financial institutions understand the benefits and necessity of the circular economy, more education is required.

Data systems need to evolve to give companies insights on material flow and traceability, help them avoid waste, extend periods of use, recover and regenerate materials, and make informed decisions about products and packaging. This is where 麻豆原创 comes in, with 80% of the world鈥檚 businesses using our software.

Take plastic again: the solution can help businesses trace plastics back to their source polymer to understand what type of material is used in every plastic element in a product. This can help companies prove the environmental credentials of a given plastic. 麻豆原创 Responsible Design and Production can be used to understand how recycled and recyclable a component is and can help a company understand the true end-to-end cost of a material. This can be useful in regulating certain materials for comparison and decision-making purposes as well as in helping businesses anticipate taxes and fees associated with their products.

We can interrogate upstream supply chain data, which relates to what a product is made from, but we don鈥檛 yet have a complete downstream picture of what happens to a product at its end of life. Recyclability varies wildly between countries, so to understand how recyclable materials are in certain countries or jurisdictions, a partnership approach with national governments, local authorities, NGOs, and others is required to build a database that can inform companies which types of plastic to use or avoid for certain markets to achieve circularity. 麻豆原创 can add value by collecting this data and pulling it into solutions.

At the same time, to embrace the circular economy, our way of working must evolve. Instead of working in silos within our individual businesses and in vertical supply chains, we need to work collaboratively to share the data and bring the skill sets and processes together. For example, 麻豆原创 works with groups of companies, such as with the WBCSD, to establish frameworks for exchanging data.  started with embedded carbon in products, but the application can be extended to track other important material information for the circular economy like recycled content or water content.

Collaborations between businesses and non-corporate bodies accelerate progress. A clear example of this is how, by working with the WBCSD and the Ocean Plastics Leadership Network, 麻豆原创 works towards updating solutions to help customers respond to new requirements that arise from the negotiations.

The ambition is to replicate this approach to plastic for other products, such as steel, batteries, electronics, textiles, and even food. With a circular economy across these industries, I鈥檓 convinced we can get halfway to net zero and if, in parallel, the energy experts continue to move the needle on energy efficiency and renewable power generation, we鈥檒l get the rest of the way.

Learn more about 麻豆原创 Sustainability solutions at .

Darren West is a product expert in Circular Economy at 麻豆原创.

Since 2009, 麻豆原创 has been on a sustainability journey with the objective to create positive economic, environmental, and social impact within planetary boundaries. Along the way, we have learned a great deal about measuring economic, social, and environmental performance and integrating sustainability into our business strategy. Central to this effort has been a continuous effort to decarbonize our business. Setting ambitious targets and leveraging digital solutions have proven crucial. 

Raising our ambition to achieve net-zero emissions is a key element of our approach to sustainability, which looks across the interconnected areas of holistic steering and reporting, climate action, the circular economy, and social responsibility. 

What Does Net Zero Mean? 

Net zero is a state where the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere. Corporate net-zero pledges have gained significant traction as , representing an annual aggregate revenue of US$27 trillion, are committed to net zero.  

There are and how companies can achieve it. 麻豆原创 follows the Science Based Targets initiative鈥檚 (SBTi) , which provides a credible and independent assessment of corporate net-zero target setting in line with climate science. The continually improving standard enables companies to align their climate actions with limiting global warming to 1.5掳C. 麻豆原创 became a member of SBTi in 2017 and was the first German company with a science-based carbon reduction target for 2050. In 2019, 麻豆原创 raised its commitment and adopted a鈥�1.5掳C science-based emissions reduction target. We announced our net zero by 2030 ambition in early 2022, bringing this commitment forward by 20 years. 

Achieving net-zero emissions across our entire value chain means that all our emissions across all emission sources need to be either eliminated or, up to certain limits, compensated for. These emission areas, known as scopes, include those from our own operations, those generated by the energy we purchase to run operations, and finally, the largest area, external emissions such as those incurred by employee travel, items procured, and customer data center use. 

Targeting Our Entire Value Chain 

麻豆原创’s net-zero plan is implemented through a comprehensive and integrated approach that involves all functions in the company, customers, suppliers, partners, and other stakeholders. We have established a cross-company program team involving experts from different lines of business to plan and implement our net-zero transformation. Reducing emissions from the use of 麻豆原创 software will be the primary area for reductions, followed by purchased goods and services. The 麻豆原创 net zero by 2030 approach includes: 

• Accelerating the transformation of on-premise customers to the cloud through our market-leading RISE with 麻豆原创 and GROW with 麻豆原创 offerings
• Enhancing direct investments in renewable energy sources and operating our internal and external data centers on 100% renewable electricity
• Reducing emissions by improving the energy efficiency of best-in-class data centers 鈥� our own, our co-locations, and hyperscalers 鈥� with sustainable programming and a cloud carbon footprint calculator for all 麻豆原创 cloud solutions
• Strengthening engagement with key suppliers to commit to net zero and deliver carbon-neutral products and services
• Electrifying the vehicle fleet, promoting green mobility, and enabling hybrid work situations
• Compensating for emissions by investing in high-quality, nature-based solutions, such as reforestation, renewable energy, and community development, that have verified environmental and social benefits
• Enabling our customers and partners by adding sustainability features and functions into our core offerings, such as 麻豆原创 S/4HANA, 麻豆原创 Ariba solutions, and 麻豆原创 SuccessFactors solutions, and by giving them tools, guidance, and best practices to measure, manage, and reduce their emissions through our including 麻豆原创 Sustainability Footprint Management, 麻豆原创 Sustainability Data Exchange, 麻豆原创 Sustainability Control Tower, and 麻豆原创 Responsible Design and Production
• Accurately measuring and reporting emissions using the Greenhouse Gas Protocol and the Science Based Targets initiative and showing progress and performance through platforms such as CDP, EcoVadis, and the Dow Jones Sustainability Index

Capturing the Opportunities of Net Zero 

We have many achievements to build on, but we also are charting new territory. 2030 is not far away. The challenges increase the farther we move upstream and downstream into our value chain. Despite the complexities, there are enormous opportunities ahead as we establish further success with our net-zero efforts. 

From a business perspective, focusing on net zero means reducing risk, improving 麻豆原创’s operational efficiency, and delivering cost savings by reducing our energy consumption and waste and optimizing our processes and resources. Net-zero action helps increase our market competitiveness by creating new products and services that meet the growing expectations of customers, partners, and regulators for low-carbon and sustainable solutions. We鈥檒l also be better at attracting and retaining top talent who are increasingly discerning about their employer’s sustainability actions. We鈥檒l offer a compelling case to investors who used focused criteria to inform their holdings. Finally, we鈥檒l continue to enhance our reputation with industry media and analysts as a leader and innovator in sustainability. And most importantly, we鈥檒l reduce our overall carbon emissions to provide much-needed relief for the over-accumulation of greenhouse gases in the atmosphere.  

With an increased sense of urgency, we recognize the responsibility, as well as the opportunity, to step up and drive a faster transformation toward a sustainable future. Not only must we accelerate our own net-zero transformation, but we must help other businesses and industries reinvent themselves as well. Only a fundamental transformation of our global economy will allow us to limit global warming to 1.5掳C. It鈥檚 vital that we build sustainability into the very nature of how we do business.

Daniel Schmid is chief sustainability officer at 麻豆原创.

Reflecting on the 2023 United Nations Climate Change Conference (COP28), the scale of 麻豆原创鈥檚 transformative potential 鈥� helping companies record, report, and act on net-zero targets and beyond 鈥� has never been clearer.

I observed two key trends that will advance climate action in meaningful ways 鈥� a shift towards simplifying data sharing and a transition to sustainable energy 鈥� where 麻豆原创 is poised to help.

A Shift Towards Simplifying Data Sharing

In recent years, more and more companies have made net-zero commitments 鈥� often before knowing how to execute these lofty goals. At COP28, I saw business leaders wrestling with how to deliver on these commitments and publicly report on progress amid growing public pressure. They face two significant data challenges: the need for cooperation across the value chain and collaboration around a common language for data exchange.

While many companies successfully measure their own emissions, reaching net zero requires an understanding of Scope 3 emissions, indirect emissions that occur in the value chain, where approximately of carbon emissions fall. This means that to get to net zero, businesses need to share emissions data across the value chain. This requires a high level of collaboration and information sharing among businesses and their suppliers. 麻豆原创 Sustainability Data Exchange can simplify this process by tracking actual Scope 3 carbon emissions data, not averages and estimates, and facilitating cross-company data sharing.

With solutions like 麻豆原创 Sustainability Data Exchange, more companies can measure their carbon emissions data and share it across the value chain. However, this proves futile if companies cannot exchange data in a common format. They need to exchange information and understand what it means. Today, many emissions and accounting technology solutions fail to speak the same language with one another. To overcome this obstacle, 麻豆原创 works closely with the (PACT), hosted by the World Business Council for Sustainable Development (WBCSD), to create a harmonized data exchange system. Together, we are establishing the methodology and technical infrastructure for product-level greenhouse gas emissions data exchange and measurement so businesses can share real carbon footprints across the supply chain with increased interoperability. 

No entity can conquer the decarbonization challenge alone. But, with cooperation across the value chain around Scope 3 emissions and collaboration around standardized carbon emissions data, we can move close to net zero together.

A Transition to Sustainable Energy

Given the focus on how to deliver on net-zero commitments and decarbonize operations, businesses look to energy as one crucial path to accelerate progress. Beyond aiming for net zero, geopolitical tensions underscore the urgency of bolstering energy security and diminishing reliance on overseas providers. As governments pursue energy independence and implement emissions regulations, corporations are compelled to adhere and transparently track their progress.

As companies face growing pressure from all sides, the pace of the sustainable energy transition intensifies, realizing unanticipated benefits along the way. For example, firms experience enhanced reputations and boosts to market value. And, in the search for cost-effective and efficient energy mixes, many companies find improved operations. A surge in production efficiency often accompanies reduced emissions. These changes inspire more diverse business models, identify new revenue streams, attract new clients, and yield a broader customer base.

As businesses move toward alternative energy sources, fostering transparency and trust through accurate data tracking and measurement proves challenging. Take green hydrogen as an example. Generated by the electrolysis of water using renewable sources like solar or wind energy, it offers a carbon-emission-free energy solution. However, fostering demand for green hydrogen requires a high level of transparency to ensure authenticity, build trust among consumers, businesses, and governments, and measure its environmental impact. 

麻豆原创 works closely with governments, the CEO Alliance for Europe, H2Global, and Hydrogen Europe to address the critical need for transparency across the entire lifecycle of green hydrogen 鈥� from production to distribution. Establishing a digital layer for green hydrogen guarantees its authenticity and differentiation from other grades of hydrogen aiding certification and proof of origin. This creates a clear market for green hydrogen, helping consumers understand its intrinsic value and positive environmental impact. utilizes an energy-efficient blockchain method that helps provide this visibility into the hydrogen journey and can enable auditable volume movements among various partners.

While digital technologies actively drive the transition to renewable energy, we recognize the indispensable role of collaborative, action-oriented partnerships in propelling these efforts forward. Ahead of COP28, 麻豆原创 joined global efforts led by the to triple global renewable energy capacity by 2030, accelerate the clean energy transition, and scale up investments in renewables. 麻豆原创 also supports the , a business initiative urging governments to phase out fossil fuels. The future requires collaboration with all stakeholders 鈥� value chain partners, NGOs, industry groups, and more.

As the conference concludes, the real work begins. Reflecting on last week and the resounding call for global climate action, 麻豆原创 remains committed to helping our customers simplify data sharing and transition to sustainable energy. The technology and the data exist. Now, we need to deploy these tools effectively and harness them to drive meaningful impact across a vast ecosystem of organizations. A sustainable future starts today, and the responsibility lies with each one of us doing our part.

Learn more about 麻豆原创 Sustainability at .

Sophia Mendelsohn is chief sustainability and commercial officer and co-GM for 麻豆原创 Sustainability.

Many organizations, however, face the challenge of gaining the data transparency needed for accurate reporting and actionable decision-making. Nearly . This is especially troubling considering there has been a . An organization鈥檚 ability to measure and report sustainability data across value chains accurately, reliably, and at scale has become an essential element of modern go-to-market and compliance strategies.

The solution? A new generation of powerful technologies working in concert to unlock the power of sustainability data. 麻豆原创鈥檚 robust sustainability solutions, built on a foundation of (麻豆原创 BTP), can enable customers to stitch together complex sets of data sources, applications, and business processes into one unified view. In turn, customers can accelerate their innovation, measure and report on their ESG goals, and ultimately build a more competitive, more sustainable future. 

Center Ice with NHL

Sustainability pioneers are in every industry. In the sporting world, the (NHL) was an early mover, starting its sustainability journey in 2010. It announced the initiative, which promotes and implements sustainable best practices across its 32 ice hockey clubs. Initially, it tracked carbon footprint metrics. Now, venue operators track an estimated 20 sustainability-related data points, such as electricity, natural gas, water waste, and recycling, for every arena. In a recent conversation with Member of the Executive Board of 麻豆原创 SE and Chief Marketing and Solutions Officer Julia White, Omar Mitchell, vice president of Sustainable Infrastructure and Growth Initiatives at the NHL, said, 鈥淲e play our game in what are essentially giant refrigerators. We鈥檙e using a lot of energy, a lot of resources. Measurement is key; you cannot impact what you do not measure.鈥�

By 2018, the NHL published two sustainability reports and began the process of modernizing its data collection systems. Mitchell said the NHL turned to 麻豆原创 BTP as an 鈥渋nnovative platform that could help streamline this process, make it easier for stakeholders to input data, and to visualize key insights in one end-to-end solution.鈥� Together, 麻豆原创 and the NHL built the NHL Venue Metrics Platform 鈥� a tool that allows its clubs and venue partners to input their environmental data and develop meaningful insights.

The NHL isn鈥檛 stopping there. It also hopes to get fans involved too by providing real-time venue insights and environmental impacts. 鈥淥ur fans are so passionate about hockey and the League鈥檚 environmental impact,鈥� Mitchell said. 鈥淏y getting them involved, we can have true collective impact, which is the most powerful tool to elicit change.鈥�

By prioritizing its sustainability green line, the is making a positive environmental impact, improving its customer experience, and setting the League up for success in the long run.

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Sustainability Is Good for Business

Embedding sustainability into corporate strategy is critical for customers to unlock their full business potential. The NHL achieved this with the help of a best-in-class technology platform and data solutions, two vital pieces of the puzzle to gain accurate visibility across the value chain, measure sustainability-related data points, and set net-zero targets.

JG Chirapurath is chief marketing and solutions officer of 麻豆原创 Business Technology Platform and AI.

The Sustainability Funding Round, hosted by our Chief Sustainability Officer, Daniel Schmid, brings together 麻豆原创 sustainability leaders from over 60 麻豆原创 sites worldwide to promote and finance sustainability initiatives brought forward by the 麻豆原创 sustainability champions and environmental management system leads. This year’s funding round was dedicated to supporting 麻豆原创鈥檚 transition to a low-carbon, circular business and saw record-breaking participation.

More than 60 proposals were submitted from sustainability champions across the globe, including ideas on improving our physical office environment, enabling employee volunteering, and raising sustainability awareness for zero emissions and zero waste. A jury consisting of experts from Global Real Estate & Facilities (GRF), Sustainability, Global Sourcing & Procurement, 麻豆原创 Corporate Social Responsibility (麻豆原创 CSR), Global Communications, and winners of last year鈥檚 funding round thoroughly evaluated all submissions. The 25 highest-rated ideas have received funding from sustainability leaders across the globe and are being implemented until the end of the year.

Here is a look at some of the funding winners.

鈥�2tonnes鈥� Immersive Workshop, France

What is measured can be managed. Understanding the size of our actions and collective decisions and calling for a lead to action is a good practice. The 鈥溾�� immersive workshop helps us understand our carbon footprint and how to reach two tons per person by 2050. 2tonnes is a best-of-breed carbon awareness workshop used by the French government. Around 350 麻豆原创 employees have already been trained across multiple workshops.

One of the main challenges was to find like-minded people to take part in the workshops. This was mitigated with the help of leaders motivating their respective teams and adding the workshop as a part of their team activity. The aim is to continue the project in 2024 and train another 500 employees, accounting for 50% of the total number of employees in Levallois, France.

Waterloo and Montreal 4 Trees, Canada

To foster climate action, contribute to 麻豆原创鈥檚 goal to plant 21 million trees, improve air quality, protect biodiversity, and support the UN Decade on Ecosystem Restoration initiative, this initiative focused on planting trees in Montreal and Waterloo, Canada.

Around 130 native trees were planted in Waterloo in collaboration with Let鈥檚 Tree Wilmot, a non-profit organization part of Wilmot Horticulture Society. The project will contribute to community establishment and support reforestation efforts to reestablish a missing forest stratum or prevent erosion due to illicit trial creation. Around 75 trees and shrubs were planted in September in Montreal to enhance Mount Royal, an urban forest at the center of Montreal that is visited by more than 6 million people every year. The project will contribute to the conservation of the mountains and keep the ecosystem strong and resilient.

Green Art, Argentina

This project aims to use the circular economy to transform waste into a work of art to show we can add value to things considered unusable. The idea is to work with sustainable artists to create a piece of art using recycled materials that will be displayed permanently at the 麻豆原创 offices in Buenos Aires, Argentina.

The materials will be obtained in a cleanup with employees from Buenos Aires and e-waste from our offices. The project envisions reusing waste, transforming it into art, and spreading awareness about reducing and recycling waste among employees when they take part in waste collection and when they view the art. Employees have already cleaned up a river and have gathered the necessary waste materials for the project. Creating the artwork will start as soon as the artist is onboarded as a supplier.

The 2023 funding round was a tremendous success and showed that employees from all fields and locations can help lead the way towards zero emissions and zero waste.

Reforestation projects have long played a crucial part in storing and removing CO₂ from the atmosphere and are one of the keys to a low-carbon future. For more than a decade, climate action has been at the top of 麻豆原创鈥檚 corporate agenda along with the three other key sustainability focus areas 鈥� holistic steering and reporting, circular economy, and social responsibility.

One of the company鈥檚 climate goals is to foster biodiversity and nature-based solutions to combat climate change. The provides transparency on 麻豆原创鈥檚 financial, social, and environmental performance and targets; information on measures to reduce CO₂; and progress on 麻豆原创鈥檚 journey to achieve net zero along its value chain by 2030. For example, 麻豆原创 runs all its offices and data centers with 100% renewable electricity, delivers sustainability management solutions to customers, and has financed the planting of more than 15 million trees to date to restore ecosystems and foster sustainable development. Since 2021, 麻豆原创 has been part of , a corporate alliance committed to conserving, restoring, and growing 1 trillion trees by 2030.

Planting trees might sound simple, but reforestation projects must be in harmony with the needs of the local community and ecosystem to avoid doing more harm than good in the long run. This is where scientific tree planting projects have a vital role to play.

Project Highlight: The Carbon Community

Charitable donations from 麻豆原创 support scientific plots in 麻豆原创 Forest UK at , based in Wales, UK.

The Carbon Community鈥檚 mission is to optimize nature-based solutions to combat climate change. 麻豆原创鈥檚 donations have contributed to a landmark carbon study that started two years ago.

This study 鈥� the world鈥檚 first 鈥� investigates how sequestration of CO₂ in trees and soil can be accelerated by combining two nature-based climate solutions. This aligns with 麻豆原创鈥檚 strategy of using nature-based solutions whenever possible to fight climate change.

To be as sure as possible that planted trees deliver the anticipated benefits, 麻豆原创 works with reputable and experienced partners like The Carbon Community that have been subjected to a rigorous selection and monitoring process.

Other Trusted Partners

麻豆原创鈥檚 longest partnership is with , where 麻豆原创 investments have funded the planting of over 13 million trees in Senegal, Rwanda, India, Indonesia, Guatemala, and Mexico. These investments with LCF help the environment and the local community while also generating carbon credits.

麻豆原创 also donates to charitable organizations, extending support to projects in countries such as Australia, Brazil, Haiti, Indonesia, Nepal, Madagascar, and scientific research in Wales.

Providing Transparency

Trusted partners must provide transparency on their projects; for example, key metrics, annual reports, and updates such as the from The Carbon Community.

For customers, offer transparency on environmental and social performance. 麻豆原创 solutions can record emissions in supply chains, report emissions in a way comparable to standardized reporting, and identify and analyze ways to reduce emissions. , for example, is a single solution to help calculate and manage a full range of corporate, value chain, and product-level greenhouse emissions. And, 麻豆原创 is pioneering a concept that can allow customers to track the carbon entering and leaving their systems and to balance their 鈥渃arbon books鈥� in the same way as they balance their financial books.

A Step in the Right Direction

Although cost-effective and essential for all life on earth, it is a gross oversimplification to claim that nature-based solutions alone, such as those proposed by The Carbon Community, or planting 1 trillion trees in the next seven years will fix the global loss of biodiversity and stop climate change. 

For this reason, reforestation projects and scientific tree planting projects are just one piece of 麻豆原创鈥檚 climate action plan, along with reducing its own carbon emissions and enabling customers to accelerate their own net-zero journeys with customer solutions for sustainability.

In terms of numbers, the scientific plots of 麻豆原创 Forest UK account for less than 1% of the total number of trees planted with support from 麻豆原创 鈥� but measuring the potential is another matter altogether. If the current field studies facilitated by The Carbon Community are successful and scaled up, that 1% could make an immeasurable difference to how beneficial future reforestation initiatives could be in terms of promoting biodiversity and rates of carbon sequestration.

Science-based research to optimize nature-based solutions , together with 麻豆原创 Sustainability solutions to combat climate, change is, without doubt, a significant step in the right direction.

Top image courtesy of The Carbon Community

As leaders, it is our responsibility to drive change and create a positive impact. We can help create a more harmonious relationship between humanity and our planet by embracing sustainability, fostering innovation and collaboration, and advocating for policy change.

I鈥檝e heard CEO Steven Tebbe鈥檚 warning loud and clear: he states that persistent overshoot leads to more prominent symptoms, including unusual heat waves, forest fires, droughts, and floods. This, in turn, increases the risk of compromising food production. His conclusion: it is in the interest of cities, countries, and business entities to foster their own resource security if they want to prosper 鈥� to the benefit of the Earth as well.

It鈥檚 encouraging to see how organizations across the globe collaborate for a sustainable future that will help us #MoveTheDate. According to the , 5,500 companies are taking actions to reduce emissions. More than 2,100 companies out of those have made net-zero commitments. Businesses have realized that it is important to incorporate sustainability in their business strategies to mitigate the evolving investor pressure, consumer demand, and regulatory constraints. As the rightly pointed out, more rapid and far-reaching transitions across all sectors and systems are necessary to achieve deep and sustained emissions reductions and secure a livable and sustainable future for all.

But how can we make this happen? Actually, there are several levers that might significantly move Earth Overshoot Day closer to year鈥檚 end 鈥� and companies like 麻豆原创 can contribute to them.

Reducing the carbon component of humanity鈥檚 ecological footprint by 50% would move Earth Overshoot Day by 93 days, or more than three months.*

The change with the biggest impact as identified by the Global Footprint Network is carbon reduction. 麻豆原创 has continuously expanded its since 2009. It became the first German company to work with science-based emissions reduction targets in 2017. Two years later, 麻豆原创 was one of the first seven global companies to have 1.5掳C-aligned reduction targets for 2050. We accelerated this timeline last year by committing to becoming a net-zero emissions enterprise by 2030, 20 years earlier than the original target.

While walking the talk is key, providing digital solutions and services to help every business run as an intelligent and sustainable enterprise is how we can scale these efforts. We can support thousands of customers in managing their carbon footprint, reducing material waste, and becoming socially responsible businesses.鈥� For example, helps businesses gain material sourcing transparency and environmental, social, and governance (ESG) data across their supply chains. This includes the material input scope 3 carbon footprint as it moves from supplier to supplier. 麻豆原创鈥檚 new green ledger initiative helps companies track their carbon accounting with more precision and control by using actual data across their business operations and supply chains instead of estimates.

Increasing global, low-carbon electricity sources from 39% to 75% would move the date by 26 days.*

At 麻豆原创, we have been using 100% renewable energy to power all our data centers and offices since 2014. It enables us to offer customers carbon-neutral cloud software solutions that help them reduce their overall carbon emissions.

In alignment with our commitment to the RE100 initiative, we use two strategic levers. Firstly, we invest in high-quality, EKOenergy-certified EACs to foster renewable energy generation. Secondly, we produce renewable electricity at selected 麻豆原创 locations. One example is the 麻豆原创 Labs India location in Bengaluru. It runs on the power generated from the on-site solar power grid along with Power over Ethernet (PoE) lighting systems. To innovate and scale businesses in support of the clean energy transition, we work with energy customers such as , , and .

Reducing the footprint from driving by 50% around the world and replacing one-third of car miles by public transportation and the rest by biking and walking would move the date by 13 days.*

According to , 20% of the world鈥檚 carbon emissions are from transportation. To help reduce this, we track our impact in the global 麻豆原创 commuting survey. According to the survey, average CO2e emissions per employee per day dropped by 70% from 4.38kg in 2018 to 1.30kg in 2022 due to working from home and emission-free commuting.

麻豆原创 also stated that from 2025, all new company cars will be emission-free in operation. In support of this transition, we are enhancing the charging infrastructure at our facilities and intend to leverage 麻豆原创 E-Mobility, a standardized, cloud-based solution. It can provide a complete package that enables charge point operators to run their business efficiently and profitably.

These are just three examples that would move Earth Overshoot Day closer to New Year鈥檚 Eve 鈥� the day when human consumption and Earth鈥檚 regenerative capacity would be in balance. But we are not there yet. Today, Earth Overshoot Day serves as a poignant reminder that despite the strides made, our efforts are not yet enough to mitigate the growing ecological crisis. We have witnessed positive shifts in attitudes and actions towards sustainability, but the urgency of the moment demands that we intensify our commitments and actions.

It is time to rethink, recalibrate, and redesign our way of living and doing business in alignment with the planetary boundaries. The responsibility to protect and nurture our planet does not rest solely on the shoulders of policymakers or industry leaders; it rests on each of us. Let us collaborate towards a more balanced relationship with our planet and a sustainable future that safeguards Earth鈥檚 resources.

Daniel Schmid is chief sustainability officer at 麻豆原创.
*Source:

The global supply chain continues to contribute to a significant part of our social and environmental impacts. At 麻豆原创, we are working towards a sustainable supply chain by eliminating single-use plastics, decreasing carbon emissions, enforcing human rights, and closely collaborating with a diverse supplier network 鈥� including social enterprises 鈥� across our seven procurement categories. As a purpose-driven company, we are always looking for ways to improve through our global procurement organization. Sustainable procurement practices have become one of the key enablers in achieving net-zero targets.

At 麻豆原创, we aim to establish a multi-phased聽supply chain engagement program by 2024 for our key suppliers聽to significantly reduce greenhouse gas emissions along our upstream value chain. The program will incorporate environmental considerations throughout the procurement process by integrating a new sustainability classification system and embedding environmental impact criteria in procurement documentation.

鈥淩educing scope 3 emissions is a key factor on the journey to net zero. This is a team effort, and we are happy to collaborate with our business partners on reducing emissions throughout our supply chain,鈥� said Dominik Asam, chief financial officer and member of the Executive Board of 麻豆原创 SE. 鈥淲ith our supply chain engagement program, we will integrate a new sustainability classification system into our procurement process and embed environmental impact criteria in our procurement documentation.鈥�

We plan to work with our top 100 suppliers to report and record product-level emissions. We aim to have all of our top 100 suppliers report their company-wide emissions and product-level emissions for relevant key products by 2027, allowing 麻豆原创 to report emissions based on actuals instead of averages. Standardizing and sharing sustainability data securely provides clarity on exactly who is accountable to reduce emissions. We plan to leverage for CO2 information exchange. This will help increase transparency through the supply chain, so we can mutually act to significantly reduce scope 3 emissions and support 麻豆原创鈥檚 2030 net-zero commitment.

Nikolaus Kirner is chief procurement officer at 麻豆原创.

麻豆原创 is now the second-fastest growing cloud company, having successfully moved thousands of customers to the cloud over the past several years as part of the company鈥檚 strategic transformation.

鈥淥ur customers want flexibility, reliability, and security from 麻豆原创, but they also want sustainability,鈥� said Scott Russell, member of the Executive Board of 麻豆原创 SE, Customer Success. 鈥淥ur RISE with 麻豆原创 and GROW with 麻豆原创 solutions help customers move to cloud data centers, which play a significant role in helping them achieve their net-zero targets and deliver more sustainable practices throughout their business processes.鈥�

麻豆原创 and other cloud providers are increasingly investing in building and operating green data centers. Green data centers prioritize sustainability, aiming to minimize environmental impact and carbon footprints. To minimize the negative environmental impact, 麻豆原创-owned data centers run with 100% renewable electricity. The company achieves a 鈥済reen cloud鈥� by investing in high-quality, EKO energy-certified energy attribute certificates (EACs) to support renewable energy generation. These facilities incorporate energy-efficient design principles, use renewable energy sources, and employ eco-friendly cooling methods.

Moving 麻豆原创鈥檚 data centers to more energy efficient cloud computing is a key part of our own carbon emissions management. 麻豆原创鈥檚 net-zero commitment goes far beyond 麻豆原创鈥檚 internal data center usage. 麻豆原创 aims to reduce or ensure renewable electricity for all cloud computing usage by customers, including partner hyperscaler data centers running 麻豆原创 solutions. Even when RISE with 麻豆原创 and GROW with 麻豆原创 customers opt to use hyperscalers, the partner data center鈥檚 emissions relating to 麻豆原创 customer usage is accounted for in 麻豆原创鈥檚 own scope 3 emissions reporting.

Cloud computing, whether in an 麻豆原创 data center or a partner hyperscaler data center, offers several sustainability advantages over traditional on-premise computing. There are many ways cloud computing contributes to net-zero strategies:

Energy Efficiency
Cloud service providers operate large-scale data centers that are optimized for energy efficiency. These data centers are designed with advanced cooling systems, efficient hardware, and virtualization techniques, which reduce energy consumption compared to individual, on-premise servers. Cloud providers can achieve economies of scale and consolidate computing resources, leading to more efficient energy usage.

Resource Utilization and Scalability
On-premise computing often results in underutilized servers, as organizations typically focus their infrastructure to handle peak workloads. This leads to a significant amount of idle computing capacity during periods of low demand. Cloud computing allows organizations to dynamically scale their computing resources based on demand. Instead of overprovisioning on-premise infrastructure to accommodate future growth, businesses can easily scale up or down in the cloud. This scalability feature eliminates the need for excessive hardware purchases and allows efficient resource allocation, minimizing the environmental impact.

Shared Infrastructure
Cloud computing allows multiple users to share the same infrastructure, reducing the overall number of physical servers required. This shared model optimizes resource utilization, decreases hardware manufacturing demands, and lowers energy consumption and electronic waste generation.

Data Center Location
Some cloud providers strategically select data center locations based on factors such as access to renewable energy, cooling efficiency, and local climate conditions. They aim to place data centers in regions with lower electricity costs and higher availability of renewable energy, optimizing their operations for energy efficiency.

Direct Renewable Energy Purchases
Hyperscalers are increasingly signing long-term power purchase agreements (PPAs) with renewable energy providers. These agreements ensure a stable and predictable supply of renewable energy at competitive prices. By directly purchasing renewable energy, companies can reduce their reliance on fossil fuels and support the growth of renewable energy projects. They often invest in wind, solar, and hydroelectric power plants.

On-Site Renewable Energy Generation
Some cloud providers are building renewable energy infrastructure on-site. They construct solar arrays, wind farms, or other renewable energy facilities near their data centers to generate electricity. These on-site renewable energy projects enable the companies to have greater control over their energy supply and reduce transmission losses associated with transporting energy from remote locations.

Energy Attribute Certificates and Carbon Offsets
Cloud providers may purchase energy attribute certificates or carbon offsets. EACs represent the environmental attributes of renewable energy generation and can be bought to match the company’s electricity consumption. Carbon offsets, on the other hand, allow companies to invest in projects that reduce or remove greenhouse gas emissions to compensate for their own carbon footprint.

Grid Integration and Renewable Energy Contracts
Some cloud providers collaborate with local power grids and governments to support the development of renewable energy infrastructure. They enter into contracts that incentivize the grid operators to increase the share of renewable energy in their overall energy mix. This collaboration promotes the growth of renewable energy in the local region and enables the hyperscalers to access cleaner energy sources.

Innovation and Research
Cloud providers invest in research and development initiatives to explore new technologies and methods for renewable energy integration. They actively participate in collaborations and partnerships with academia, government agencies, and other industry players to drive innovation in renewable energy storage, management, and utilization. These efforts aim to accelerate the adoption of renewable energy and overcome the challenges associated with its scalability.

Collaboration and Remote Work
Cloud computing facilitates remote collaboration and remote work, reducing the need for employees to commute as frequently to physical offices. This leads to a decrease in carbon emissions associated with transportation.

Large cloud computing companies are reducing their carbon footprints and contributing to net-zero programs around the world. RISE with 麻豆原创 and GROW with 麻豆原创 have strong momentum in helping move 麻豆原创 customers to the cloud and helping both 麻豆原创 and customers achieve ambitious climate action goals.

Michael McComb is global head of Sustainability Communications at 麻豆原创.

麻豆原创 helps oil, gas, and energy companies make this transition, providing them with innovative solutions that can optimize legacy energy sources, integrate low- and no-carbon alternatives, enhance energy network resilience, and unlock growth opportunities through reinvented business models.

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In a recent webinar, “Sustainable Energy Transition for a Low Carbon Future,鈥� hosted by the Oil & Gas Journal, Benjamin Beberness, vice president and global head of Oil, Gas, and Energy at 麻豆原创, shared his insights alongside other industry professionals. Together, they shed light on how businesses in the energy sector are taking action to redefine the future of energy and drive the sustainable energy transition ahead.

Transitioning to Net-Zero Carbon Energy Sources

To facilitate the energy sector’s successful transition to sustainable sources, close cooperation between technology companies and energy companies is paramount. Together, they can identify economically viable and efficient methods to deliver an optimal energy mix during this transitional period. By working in tandem, they can harness appropriate digital technologies to drive profitable operations that prioritize both the well-being of individuals and the preservation of our planet. This collaboration involves gaining comprehensive knowledge of regional regulations, staying abreast of evolving business requirements, and effectively monitoring and reporting day-to-day operations.

For example, with its unique digital twin on a blockchain, the 聽helps businesses gain material sourcing transparency and environmental, social, and governance (ESG) data across their supply chains.

Implementing Intelligent Asset Management

Intelligent asset management plays a critical role in supporting the sustainability objectives of oil, gas, and energy companies. Industry leaders are adopting digital technologies and proven solutions to enhance their manufacturing processes, embracing cleaner fuel alternatives, and exploring optimization opportunities across their global operations.

Research from found that a 10% increase in production efficiency can lead to a 4% reduction in emission intensity, reinforcing the focus on running assets efficiently to minimize environmental impact. To determine the need for asset replacement, businesses assess factors such as vibration, heat issues, and asset life span, considering cost, safety, and ESG criteria. Integrating ESG information into asset management strategies has become an increasingly significant priority for companies.

With , channel the power advanced machine learning and analytics to help optimize asset health, performance, and risk.

Changing Business Models for Diversification

Business leaders in the energy sector understand the growing urgency to diversify their offerings, from providing services at electric vehicle charging stations to implementing low-carbon technologies in new maintenance and operations projects. Recognizing the importance of adaptability, these companies seek flexible technology platforms to revitalize their operations, expand their retail presence, and venture into renewable energy markets. Technological advancements help companies diversify offerings, accelerating the transition towards renewable energy sources.

Technology solutions, such as , can support the transition to renewable energy sources by providing companies with the capabilities needed to build, run, and manage electric vehicle charging networks all on one platform.

Driving Continuous Innovation

ESG regulations present businesses with an opportunity to reduce their ecological impact while fostering innovation to help them achieve their sustainability goals. By keeping core operations clean and scalable, companies can focus on sustainability, foster a culture of innovation, and differentiate themselves from competitors. This approach involves establishing a dedicated optimization office and leveraging technologies like automation, optimization, and artificial intelligence (AI). Facilitating intrapreneurship and engaging employees and the wider community allows for the translation of high-level sustainability objectives into practical solutions for day-to-day operations. Access to sustainability-related data is also essential, with digital solutions and technology playing a key role in collecting and analyzing data to drive sustainability goals. Implementing tools such as a green ledger system helps businesses track emissions and adapt to new regulations while inspiring collaboration and innovation.

Industry cloud solutions from 麻豆原创 sit on top of , a platform built with flexibility and choice in mind, so that its users can accelerate innovation and unlock business potential.

Identifying Key Performance Indicators for Sustainable Energy

Businesses need to identify key performance indicators (KPIs) for sustainable energy. While revenue remains a significant KPI across industries, energy companies strive to achieve a balance between financial stability and emission reduction, ensuring the satisfaction of employees and shareholders alike. Crucial KPIs include the percentage of energy produced from renewable sources and embodied carbon, which refers to emissions throughout the entire lifecycle of raw material extraction, production, transportation, and construction, as well as measures around decarbonizing operations, improving building efficiency, and prioritizing safety and environmental policies in infrastructure development.

With , businesses can improve their sustainability performance by monitoring progress and gaining actionable insights from dependable sustainability data.

Realizing the Significance of Sustainable Procurement

Sustainable procurement plays a central role in any sustainability strategy. Companies proactively seek out suppliers that adhere to sustainable practices, so they can reduce scope 3 emissions, implement robust measurement systems, promote supplier diversity, and improve communication, driving a transformative shift in procurement practices. Companies, from corporate-level initiatives to individual buyers, prioritize compliance with regulatory requirements, including due diligence laws and SEC reporting. Sustainable procurement practices are seamlessly integrated into supplier risk management and qualification platforms, ensuring a comprehensive approach to sustainable sourcing.

Monitor the production, supply, and use of your energy sources across the entire supply chain with technology solutions like , available on 麻豆原创 Store.

By leveraging intelligent asset management solutions, facilitating business model diversification, driving continuous innovation, identifying KPIs, and promoting sustainable procurement, oil, gas, and energy businesses can channel the power of industry-specific solutions to ensure a secure, affordable, and sustainable future for energy.

about how innovative solutions from 麻豆原创 and our partners help oil, gas, and energy businesses fuel profitable operations while also protecting people and the planet.

Kelly Cannon is part of Content Creation & Strategy for Content Lab at 麻豆原创.

Carbon accounting is still undertaken manually or using semi-automated tools that rely on estimates or averages. Additionally, many more organizations still need to set targets. To move forward, they must first ascertain current emissions levels. But with supply chain emissions representing a much higher proportion than direct emissions, this is proving challenging for four key reasons: a lack of data, poor or unreliable data, a skills gap preventing effective data analysis, and issues exchanging data.

Organizations must account for carbon, not only for climate and compliance reasons but to aid decision-making, reveal opportunities for efficiencies and growth, and differentiate their business. As a result, organizations across industries are racing to slash the carbon footprint of their products and services. As businesses at every level of the value chain ramp up their own decarbonization efforts, business leaders know the lowest carbon offerings are likely to become the most desirable and hence the best opportunity for growth and profit.

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A Lack of Emissions Data

Emissions data is used in three areas of a company鈥檚 net-zero strategy: to measure and identify hotspots for emissions reduction; to make improvements such as selecting suppliers and redesigning products and processes; and to continuously anticipate business outcomes and identify new opportunities for greenhouse gas reduction.

For successful decarbonization, emissions data must be embedded in an organization鈥檚 decision-making process. Incomplete and unreliable data hinders the creation of an effective net-zero strategy. This issue is particularly prevalent across the value chain in scope 3 emissions, which regularly account for 75% of a company鈥檚 emissions across all sectors. Due to a lack of influence and control and an absence of disclosure rules, supply chain emissions go vastly underreported, weakening net-zero strategies.

It is essential for companies to close the gap and gather data on all scope 3 emissions. Not doing so leaves them open to allegations of greenwashing and non-compliance penalties as policymakers worldwide move increasingly towards making scope 3 emissions reporting mandatory.

Poor Quality Data

Data that is accurate, granular, and comparable is indispensable for a comprehensive understanding of an organization鈥檚 carbon footprint. However, much of the data being relied upon is spend-based, estimated, or reliant on regional or sector-based averages as opposed to primary data directly from a business鈥檚 operations and suppliers.

By its nature, secondary data cannot provide an accurate indication of a company鈥檚 greenhouse gas emission hotspots, nor can it be used for comparison purposes. It also lacks granularity, impairing decision-making. Relying on inconsistent data carries potentially significant risks, which can lead to a decline in trust and credibility.

Sustainability Skills Gap

The number of green jobs grew by 8% between 2015 and 2021 and is expected to continue to increase. But there is a significant skills shortage, and candidates don鈥檛 yet have the competencies to be able to fulfill the roles. Short courses and micro-credentials run by universities, professional bodies, and NGOs are helping to fill the gap, but on-the-job training and upskilling are also necessary to equip employees and business leaders with the necessary skills to be able to interpret the data and turn pledges into progress.

Data Exchange Issues

Carbon accounting challenges within a single organization are an issue, but the problem is multiplied when it comes to achieving carbon transparency between companies in a given value chain. Incompatibility of data, inconsistencies in carbon accounting rules, software platforms that don鈥檛 easily interact, and a lack of collaboration across supply chains leave business leaders fumbling in the dark for information.

The automobile industry is an obvious example. With 98% of emissions falling into scope 3, exchanging carbon footprint data can seem like an impossible task due to its complex supply chain, a lack of trust between suppliers and customers, a scarcity of quality data, inconsistent carbon accounting methodologies, and incompatible data management platforms.

The Impact of Carbon Accounting Challenges

The aforementioned challenges result in wasted time and resources, compromised decision-making, an inability to affect meaningful emissions reduction, missed opportunities, a lack of transparency, and higher exposure to business risks, not to mention the global risks of deadly heat waves, devastating floods, rising sea levels, and a decline in biodiversity.

Moving Towards a Green Ledger

What if sustainability performance could be managed with the same rigor as financial performance? Where it becomes as effortless as financial transactions in your enterprise resource planning (ERP) systems, where a carbon network makes data exchange easy, and where end-to-end carbon accounting tracks product emissions across the entire value chain?

Ledger-based transactional carbon accounting provides all of this and more 鈥� and it鈥檚 not new. It is an amalgamation of a suite of solutions, an ecosystem of platforms. Working together, they have the power and interactivity to collect and assimilate emissions data using a hybrid approach to help businesses transition from estimated or average emissions values to actual and verified data. A double entry approach allows companies to balance emission in- and outflows.

A sustainability ledger provides auditable carbon reports and attaches emissions to financial costs and revenue. This provides companies with the capability to analyze carbon emission hotspots through a financial lens across cost centers, profit centers, and market segments.

Finding the Key to Collaboration in the Automotive Industry

Perhaps most importantly, the sustainability ledger approach provides a platform for collaboration and integration of data throughout an entire value chain. The is the first open and collaborative data ecosystem capable of allowing companies to work together to establish transparent processes and common data standards from material acquisition to manufacturing and distribution to meet sustainability and regulatory requirements.

By partnering with the World Business Council for Sustainable Development (WBCSD), Catena-X was able to achieve a standardized carbon footprint value that could be used throughout the supply chain.

Thanks to the , companies can manage this standardized product carbon footprint data and share it easily, on a material level, between business partners in an efficient and secure way.

Other Industries Incorporating the Green Ledger

The automotive industry isn鈥檛 alone in identifying a need for a more scientific and collaborative approach. Other industries, including manufacturing and healthcare, are moving towards a more holistic green ledger solution.

Multinational chemical and consumer goods company Henkel has recently implemented while simultaneously transitioning to the cloud. will benefit along its entire value chain from increased data-driven, real-time decision-making and leaner and more sustainable processes.

The Next Steps

Plugging the gaps and improving the quality of emissions data is a clear priority to turn an organization鈥檚 carbon reduction targets into actionable plans, but collaboration must not be underestimated if a real reduction is to be achieved across industries. Companies now need to identify the best software solution for their business that will not only collate emissions data on a transactional basis but also report it holistically and provide the possibility to share it throughout the supply chain.

Find out more about .

Heather Davies is a sustainability communications brand journalist at 麻豆原创.

On the Journey to Net Zero by 2030, Daniel Schmid, 麻豆原创’s chief sustainability officer, said, 鈥淭hrough our journey to net zero 2030, we at 麻豆原创聽strive to be clear about what being net zero means to us聽and to be transparent about what actions we are taking to get there.聽Until now, we have been focusing on our operations and achieved major milestones, which is terrific.聽However, the challenge becomes much greater when we consider becoming net zero聽across our entire value chain, including suppliers and customers.聽We will address this challenge by accelerating our customers’ journey聽to the cloud, using best-in-class data centers, getting suppliers to deliver carbon-neutral products and services, changing our fleet to become emission-free,聽and investing in renewable electricity聽and nature-based solutions.聽We are 100% committed to achieving our goal.聽It’s a journey all of us at 麻豆原创 will help deliver.鈥�

Likewise, 麻豆原创 is paving the way to a sustainable world. aim to help our customers record, report, and act on their environmental, social, and governance (ESG) ambitions while incorporating sustainability in their businesses.

At 麻豆原创, there is a sustainable business strategy. Sustainable business means focusing on and improving social and economic performance. Therefore, these three global goals are reflected in 麻豆原创鈥檚 strategic focus areas: holistic steering and reporting, climate action, circular economy, and social responsibility. 麻豆原创 is committed to ensuring digital technologies help companies manage and improve their business processes along their entire value chain and embed sustainability into their business models.

Today, the link between sustainability and profitability is clear. Companies are embedding sustainability and regulatory-complaint KPIs into their core financials. One clear example is the need for a carbon accounting system that mirrors their financial accounting system. Disclosing sustainability progress allows business leaders to act on waste management, deforestation, and social responsibility.

Selected Rankings and Ratings

CDP |

In addition to an聽A- in CDP鈥檚 last climate change assessment, 麻豆原创 has been recognized by CDP (formerly Carbon Disclosure Project) as a 2022 CDP Supplier Engagement Leader. CDP鈥檚 annual Supplier Engagement Rating assesses companies on their performance颅颅 on governance, targets, ambition, and Scope 3 emissions. 麻豆原创 was also recognized as a CDP Supplier Engagement Leader in 2020 and 2021. This recognition for the third consecutive year acknowledges 麻豆原创鈥檚 commitment to raising the level of climate action across its value chain and to measure and reduce climate risk within its supply chain.

Corporate Sustainability Assessment by S&P (Dow Jones Sustainability Indices) |

S&P Global Corporate Sustainability Assessment (CSA) is an annual evaluation of companies鈥� sustainability practices. It covers over 7,000 companies from around the world. The CSA focuses on sustainability criteria that’s both industry-specific and financially material. As of January 1, 2023, 麻豆原创 maintained industry leadership as one of two companies in the software industry in the S&P Global Corporate Sustainability Assessment for the 16^th consecutive year, scoring 80 out of 100. This placed 麻豆原创 in the top 1% of S&P鈥檚 ESG scores and qualified us as a Dow Jones Sustainability Indices (DJSI) constituent.

MSCI |

MSCI ESG Ratings aim to measure a company鈥檚 management of financially relevant ESG risks and opportunities using the rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to their peers. 麻豆原创 upholds the highest rating of AAA and is an ESG leader in human capital development, corporate governance, privacy and data security, and clean tech as of the last assessment in April 2023. The MSCI ESG Ratings are also used to construct the MSCI ESG Indexes produced by MSCI, Inc.

FTSE4Good |

Administered by the Financial Times Stock Exchange-Russell Group (FTSE), the FTSE4Good Index Series measures the performance of companies demonstrating strong ESG practices. Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products. With an ESG score of 4.1 out of 5, 麻豆原创 is in the top 9% of analyzed companies 鈥� based on assessment questions in areas such as environment, climate change, human rights, community and labor standards, tax transparency, and anti-corruption. Due to its good scoring, 麻豆原创 remains a constituent of the FTSE4Good Index Series following the June 2022 review.

Sustainalytics |

As of October 2022, of 10.9 from Sustainalytics and was assessed to be at low risk of experiencing material financial impacts from ESG factors. Founded in 1992, Sustainalytics, a Morningstar company, provides analytical ESG research, ratings, and data to institutional investors and companies.

EcoVadis |

In the last sustainability assessment of EcoVadis in December 2022, 麻豆原创 was awarded a gold medal again with a score of 74 of 100, ranked in the 98th percentile of all companies scored, meaning 麻豆原创’s score is higher than or equal to the score of 98% of all companies rated by EcoVadis. With more than 100,000 rated companies, EcoVadis is one of the world鈥檚 most trusted business sustainability rating providers. Its assessment covers a broad range of non-financial management systems, including environments, labor and human rights, ethics, and sustainable procurement impacts.

ISS ESG |

The Institutional Shareholder Services (ISS) ESG Corporate Rating assesses companies鈥� sustainability performance based on high-quality and in-depth research and up to 100 sector-specific rating criteria that’s regularly reviewed and developed. With its B rating, 麻豆原创 has been acknowledged with prime status and is among the top deciles. The score was confirmed in January 2023.

Corporate Knights |

麻豆原创 ranked 41st in the 19th annual ranking of Corporate Knights鈥� 2023 100 most sustainable corporations in the world. This award has a special significance as Global 100 companies represent the top 1% in the world for sustainability performance. To determine the ranking, the Toronto-based media, research, and financial information products company analyzed over 6,000 companies with more than US$1 billion in revenues against 25 key performance indicators. 鈥淕lobal 100 companies are providing the products and services needed for the sustainability transition, and that will form the basis of the emerging 21st-century economy,鈥� says Ralph Torrie, director of Research at Corporate Knights.

Moody鈥檚 ESG Solution |

In the last assessment in January 2022, 麻豆原创 maintained the highest of four performance levels (鈥渁dvanced鈥�) and ranked second of 83 in its sector, acknowledging its strength in managing material ESG factors, mitigating risks, and creating sustainable value. Due to its good performance, 麻豆原创 remained a constituent in the Euronext Vigeo Eiris indices Europe120 and Eurozone120. These indices are composed of the highest-ranking listed companies according to their evaluation of companies鈥� ESG performance based on 38 criteria, including industry weightings and monitoring of company-related ESG controversies.

One of the key allies to keep the oceans healthy are whales. Whales are highly intelligent and social sea mammals. Some live in big families where there are brothers and sisters, grandparents that educate the juveniles, and parents that protect their young ones with the utmost care. All of them play an important role in maintaining the oceans鈥� resiliency.

important nutrients for phytoplankton, which are microscopic organisms doing the crucial job of absorbing CO2 and producing oxygen. In other words, where there are more whales, there is more phytoplankton and, therefore, more CO2 sequestration. During their lifetime of about 40 to 60 years and also at the end of their lives, whales help to absorb a large amount of CO2. Their bodies take up to to the seafloor when they die, where it gets locked up for a long time.

Just as marine life depends on healthy oceans, so do businesses, like tourism, fishery, maritime equipment production and repair, ports, supply chains, and the jobs generated by these industries that provide many individuals with an essential income. Even the whale-watching business grew to over per year. But that wasn鈥檛 always the case. Whales were heavily hunted, driving many whale species close to extinction.

With the Help of Technology, the Future of Our Big Allies Changed

In the 1960s, the songs of humpback whales . With recordings from the U.S. Navy hydrophone network and the later visualization of what鈥檚 recorded, the structured melodies of humpback whales were revealed. When some of these recordings became public, people started to understand that whales are very intelligent. Movements to protect the animals started, laying the foundation for some whale populations to be able to slowly recover over the years.

Today, whales face new human-made challenges. Among them are ship strikes, noise, and plastic pollution, as well as entanglements. Our marine friends in the oceans need more help.

Technology Can Help Change the Tide

Having accurate data available at the right time is crucial for businesses when it comes to eliminating waste, like plastics, from their products and processes. Abandoned or lost fishing gear, for example, is often made of plastics, staying in the oceans for hundreds of years and continuing to catch marine life. Entanglements are a big threat to marine animals, including large whales.

Consumers鈥� and businesses鈥� awareness of the overall plastic problem 鈥� 8 million tons that reach the ocean every year 鈥� has increased. A data-driven strategy helps businesses to understand the usage and implications of virgin plastic. Having information about other options at the right time in the process allows businesses to catch the problem at the source and or move to reuse schemes. Data insights with the help of technology, such as , allow businesses to make the right decisions and move to a circular economy, protecting biodiversity and reducing the of carbon emissions coming from producing products we consume and then waste.

Boosted by the increased emissions of human-made CO2 in the atmosphere, the warming climate heats the oceans, making them more acidic and putting the habitat and food sources of many marine lives, including whales, at risk.

With climate change at the top of the list of the most pressing challenges of our time, businesses are moving towards net-zero targets. They need the facts from high-quality data in every business transaction throughout their entire value chain to accurately set targets and make decisions. They need data they can trust. So, it鈥檚 time to move from averages to actuals. And it is time to redefine the 鈥淩鈥� in ERP (enterprise resource planning) to include sustainability data, starting with carbon. With the move towards transactional carbon accounting, businesses can reach net zero, so our generation can reach the target of limiting global warming to 1.5 degrees Celsius.

Insights from innovative and intelligent technologies help make the right decisions and take the right actions. Technology will continue to reinvent how we can keep nature as our ally and build a sustainable and livable planet. When we again think of whales, sensors could help to locate lost fishnets, so they can be collected and taken out of the waters. With innovation in technologies, ship traffic can, for example, become as to not disrupt the communication and orientation of whales. Artificial intelligence (AI) can help ships’ crews detect whales early, so the vessel鈥檚 speed can be reduced or rerouted to protect the animals and allow the whales to continue to help keep the oceans healthy and provide their climate action services to us.

needs collaboration. To set the required regulations with governments, innovative, smaller companies and NGOs can help find new ways to address climate action, protect biodiversity, and clean up what we left behind. Companies from every industry must work together to reinvent business models and processes with the help of technology to achieve net-zero and sustainable businesses.

However, carbon accounting is still done mainly using spreadsheets and semi-automated tools that use estimates and averages for carbon footprints. Only 9% of companies have a comprehensive view of their greenhouse gas emissions and their impact across the entire value chain.

This is no longer enough. We need to account for carbon with much more precision and control by using actual data values across our business operations and supply chains in sync with financial flows. We need to redefine 鈥渞esource鈥� in enterprise resource planning (ERP) and extend our understanding of resources beyond financials. 麻豆原创 now brings a precision-approach to do just that by enabling transactional accounting for carbon.

Introducing Future-Proof Solutions for Transactional Carbon Accounting

麻豆原创鈥檚 approach to transactional carbon accounting comprises three future-proof capabilities.

First is , a single solution to calculate and manage carbon flows with high granularity on company, process, and product levels across Scope 1, 2, and 3 emissions. The solution integrates capabilities from previously released 麻豆原创 solutions and adds new functionalities, such as the ability to manage a greater scope of emissions sources and support for a broader range of industry-specific requirements. Using 麻豆原创 Sustainability Footprint Management helps provide a seamless integration with 麻豆原创 S/4HANA, allowing for a strong data foundation to calculate footprints directly from individual transactions at each step of production. Companies can reduce their climate risk and make progress towards their climate commitments by better adhering to and reporting on rapidly changing standards. They can also achieve operational excellence by dramatically improving the speed, accuracy, and efficiency of emissions calculations and management. 麻豆原创 Sustainability Footprint Management will be available from June 2023.

Second, 麻豆原创 offers , a new application designed to securely exchange standardized sustainability data, including product footprints, along the value chain. The application allows precision accuracy by gathering actual carbon data directly from suppliers. 麻豆原创 Sustainability Data Exchange, part of , uses the carbon data interoperability standards established by the , hosted by the World Business Council for Sustainable Development (WBCSD). The beta version is available and will be generally available in Q3 2023.

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Third, 麻豆原创 also introduces the green ledger concept, which combines financial and environmental data to enable deep insights and effective decision-making at different points across the business process. Green ledger will be embedded into and for and will deliver new capabilities with each release. The next major update, for example, offers a new way to embed carbon data, starting with most impactful scope categories, into product-level costing.

Using these three powerful capabilities that , executives can have a future-proof tool kit to help manage and reduce their carbon footprints. The 麻豆原创 solutions record data based on actuals instead of averages to increase data transparency, accuracy, and reliability. The high-quality carbon data, like the financial data, is auditable, transparent, and reliable. To take climate action, companies sync the emissions data with financial data to make granular, accurate, and right-time decisions that are both financially and environmentally sound.

Acting on Carbon Emissions Data

麻豆原创鈥檚 carbon accounting solutions allow business decision-makers to not only see emissions on an operations level, but also at the product level by including carbon footprints alongside financial data to make trade-offs between cost efficiency and carbon intensity. To make these assessments, carbon footprints need to be available at a granular level and at the point where the business decision is made.

In the automotive industry, for example, the sources of steel, rubber, batteries, and electrical components are key elements of the carbon footprint of an electric car manufacturer鈥檚 product. 麻豆原创 solutions provide the foundational data for these purchased materials and components, as well as consumed energy and other inputs, and combine it with additional data sources such as life cycle assessment databases.

Using the input data, the footprint is calculated by matching source data with emission factors. Like in financial accounting, the inflows and outflows of materials, components, and products are traced and accounted for with a high level of transparency and auditability.

This isn鈥檛 accounting for accounting鈥檚 sake. This level of data transparency helps teams across the business, from the C-suite to supply chain management to marketing, take sustainability action. They can make decisions together on both cost and carbon emissions that are rarely made in parallel today. Based on both cost and carbon values, the car manufacturer can scenario plan and make fully informed decisions about how to drive optimal financial and sustainability performance.

Bringing a Holistic View to Sustainable Business

To truly run sustainably and decarbonize business at the speed and scale needed, companies must . By embedding sustainability data into their core business processes through their ERP, executives can achieve a holistic, enterprise-wide performance capability.

Based on the ERP backbone, sustainable business data is the foundation for setting regulatory-compliant KPIs and disclosing sustainability progress to a broad range of reporting frameworks using . This holistic view is vital to understanding where emissions are occurring, setting accurate net-zero targets, and identifying specific areas to take action for maximum decarbonization impact.聽The are cloud-based, modular, and integrate with 麻豆原创 S/4HANA Cloud.

Peter Bakker, CEO of WBCSD, said accountants will save the world. He very well may be right. With over 50 years of experience in financial accounting, future-proof technology, and wide access to customer and partner ecosystems, 麻豆原创 is well-positioned deliver high-quality emissions accounting to rapidly scale business decarbonization.

Sebastian Steinhaeuser is chief strategy officer at 麻豆原创.

During the 1950s and 1960s, industries were emitting vast amounts of pollutants with hardly any consequences from the law, consumers, or the media. People were mostly oblivious to environmental concerns and the threat to human health. This perception changed when a massive oil spill in California inspired an unprecedented movement that united students, politicians, and everyday citizens to demonstrate against the devastating impact of 150 years of industrial development.

The first Earth Day in 1970 signaled the birth of the modern environmental movement.

A Turning Point

As the chief sustainability officer at 麻豆原创, I am keenly aware of the fundamental impact business and industry have on society, the economy, and the environment. Despite growing environmental awareness, the Earth has continued to take a massive amount of abuse since the first Earth Day.

The facts are alarming: according to the World Wildlife Organization, wildlife populations have . Human activities have doubled the amount of carbon dioxide in the atmosphere, causing climate change that severely impacts weather and natural habitats. Plastic pollution is growing relentlessly, with being recycled. The devastation to life on land and in the oceans is heartbreaking.

But there is good news as well. The modern-day grassroots movement triggered by young people has been highly successful, inspiring older generations with their determination to make the world a better place. At the same time, there has been a strong surge in governmental action and other movements such as the United Nations (UN) Convention on Climate Change and the Ellen MacArthur Foundation for Circular Economy.

Importantly, business can be the game changer as companies realize that environmental preservation and social justice must be a prominent element in their holistic strategy to ensure long-term survival.

Enabling Sustainable Impact

At 麻豆原创, we are very aware of the challenges our customers face as they strive to meet their environmental, social, and governance (ESG) commitments. Being able to reliably track and manage their progress is one major challenge. Our products and services aim to address this and help our customers record, report, and act on their ESG ambitions while incorporating sustainability in their business end to end.鈥嬧��

麻豆原创 customers around the world generate 87% of total global commerce, which comes with a social and environmental footprint. We have an opportunity here to influence for the better — and we are taking it, with solutions supporting companies to measure and improve sustainability across entire networks, allowing them to effectively work toward an aspiration of zero emissions, zero waste, and zero inequality.

This journey is impossible without partnerships. with customers as well as a variety of other stakeholders. For example, we were among the first 50 signatories of the UN Global Compact and we co-founded the Value Balancing Alliance. In , we work to enable companies to gain full transparency of their product life cycle and supply chain emissions. And we joined the Ellen MacArthur Foundation network to accelerate the adoption of circular economy practices and processes.

Leading by Example

At 麻豆原创, we do not have a sustainability strategy, we have a business strategy that is sustainable. We believe economic, social, and environmental factors and performance are interrelated and integrate these in the holistic steering of our business. Consequently, 麻豆原创 executive short-term incentive compensation includes sustainability targets (key performance indicators for sustainability) such as our carbon impact on top of financial targets.

We have set ourselves ambitious environmental targets in our to foster the continuous enhancement of our environmental impact. This includes our science-based target to achieve net zero along our entire value chain in line with a 1.5掳 c future in 2030 — 20 years earlier than originally planned.

Executing on these targets is a company-wide effort and I am proud of our collaborative achievements. Our data centers and buildings worldwide have been running on 100% renewable energy since 2014. We use internal carbon pricing to offset business-related carbon emissions.鈥疻e are phasing out single-use plastics.鈥疊y 2025, one-third of our fleet will be ecofriendly cars, and all cars procured thereafter will be electric. 麻豆原创鈥檚 environmental management system is implemented in over 50 sites in 29 countries worldwide and is certified by the renowned ISO 14001:2015 standard.

麻豆原创 is also one of the most diverse and inclusive software companies in the world, dedicated to building a business without bias. We have built an inclusive workplace, giving people the skills to thrive in a digital world and a culture that supports their health and well-being.

Besides following ethical business practices that respect and promote human rights and secure human rights due diligence as required, for example, in the , we are very active when it comes to promoting social and inclusive entrepreneurship, offering programs and partnerships that range from inspiring early-stage innovation to scaling mature social enterprises.

Earth Day 2023 is a day to remember what we can accomplish together and how much more we still need to do. The movement pushed by the first Earth Day in 1970 has become a global force that has changed the way people think and act upon the environment. Regulators, investors, companies, consumers, and everyday citizens increasingly recognize the need to invest in our planet. But time is of the essence: 鈥淭here is a rapidly closing window of opportunity to secure a livable and sustainable future for all,鈥� .

I feel humbled by the contributions we have achieved as a company. These results were only possible thanks to visionary leaders and 麻豆原创鈥檚 highly motivated, dedicated employees working in every line of business and every region of the world. As our latest employee engagement surveys showed, 82% of 麻豆原创 employees actively contribute to the company鈥檚 sustainability goals. Many of them are driving specific programs today to inspire even more colleagues to join in.

In celebration of Earth Day 2023, I want to acknowledge our employees鈥� outstanding efforts, alongside those of like-minded supporters across the globe, and invite all of us to collectively step up in safeguarding our planet.

Daniel Schmid is chief sustainability officer of 麻豆原创 SE.

Up until now, nearly 1,800 companies, including 麻豆原创, have committed to becoming net zero across their value chains. These commitments aim to achieve an emissions state consistent with societal climate and sustainability goals and within the biophysical boundaries of the planet. At the beginning of 2022, 麻豆原创 committed to achieve net-zero emissions by 2030. The United Nations鈥� Intergovernmental Panel on Climate Change (IPCC) defines net zero as that point when 鈥渁nthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period.鈥� The Paris Agreement sets out the need to achieve this balance by 2050.

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A company鈥檚 net-zero emissions target is a climate action target in which a company aims to reduce its emissions to zero, on a net basis. The term 鈥渘et鈥� comes from the view that most companies will not be able to operate without emitting at least some greenhouse gases, so they will need to remove their unavoidable residual emissions from the atmosphere to get to net zero.

Getting to net zero is not easy or straightforward. Questions remain on how companies develop their net-zero emissions targets and ensure their decarbonization strategies track to ambitious pathways. Challenges exist, such as inconsistently defined net-zero targets, what emission sources and activities should be included, timelines to achieve the goals, and how companies plan to achieve their target.

The Science Based Targets initiative (SBTi) is one of the leading global initiatives that helps companies set ambitious emission reduction targets and credible decarbonization strategies. The SBTi鈥檚 Corporate Net-Zero Standard is the world鈥檚 first framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5掳C above pre-industrial levels.

The scope of science-based targets for net zero is broad, encompassing all relevant greenhouse gas emissions across a company’s value chain, including direct emissions from operations (Scope 1), emissions from purchased energy (Scope 2), and indirect emissions from upstream and downstream sources such as business travel, employee commuting, purchased goods and services, or products in use (Scope 3).

This SBTi framework includes a set of criteria that companies must meet to ensure that their targets are scientifically robust and credible. These criteria include:

• Complete an emission inventory following the GHG Protocol.
• Set near- and long-term science-based targets to reduce value chain emissions.
• Implement a strategy to achieve science-based targets.
• Disclose target progress annually.

To claim to have reached net zero, companies must neutralize the impact of emissions that remain unabated in the long-term net-zero target year. Examples of such counterbalancing activities include purchasing carbon credits that support programs that prevent deforestation or support reforestation or investing in carbon-dioxide removal (CDR) technologies such as direct air capture (DAC) with permanent geological carbon storage. The SBTi allows a maximum of 10% removals for a long-term net-zero target and does not allow the traditional use of offsets anymore, except to achieve short-term targets as an interim transition step. Consequently, the Net-Zero Standards expects companies to radically reduce emissions by 90% by no later than 2050.

To set a science-based target for net-zero, a company must first conduct a detailed assessment of its greenhouse gas emissions in alignment with the Greenhouse Gas Protocol, including identifying emissions sources and determining the extent of its emissions across its value chain. Based on this assessment, the company can set an ambitious, measurable emissions reduction target consistent with the Paris Agreement’s goals and aligned with the best available science. Beyond the assessment, companies then need to set ambitious targets and actionable strategies, both near- and long-term to reduce value chain emissions.

鈥淲e are currently assessing our net-zero reduction pathway and corresponding reduction strategies across a number of areas of the 麻豆原创 business to meet the demanding requirements of the SBTi,鈥� said Lilli-Jane Popp, sustainability specialist at 麻豆原创. 鈥淲e want to continually use the highest standards and use the latest science in setting targets and developing our plans to achieve net zero by 2030.鈥�

Scope 3 emissions are challenging to reduce yet they are where most emissions occur in a company鈥檚 value chain. They are the indirect greenhouse gas emissions that occur outside of operations, like emissions produced by suppliers and customers when using the company鈥檚 products. These emissions are considered difficult to account for because they depend on a complex network of suppliers, customers, and other stakeholders. Accounting for Scope 3 emissions requires a deep understanding of a company’s value chain, a commitment to collecting and analyzing data, and collaboration with suppliers and other stakeholders.

Delivering and disclosing progress on their decarbonization targets helps companies reduce their environmental impact, improve their reputation and brand value, and attract environmentally conscious consumers and investors. Also, by setting science-based targets, companies can ensure that they are prepared for the transition to a low-carbon economy and avoid the risks associated with climate change, such as regulatory changes, reputational damage, and physical impacts.

However, achieving net-zero targets to limit global warming to 1.5掳C will require significant effort and investments from companies and strong collaboration across sectors. But it is essential for ensuring a sustainable and livable future. According to the latest IPCC report, we have already reached 1.1掳C of warming above pre-industrial levels. We are living in a decisive decade for climate action with our planet warming at an unprecedented pace. Companies must align with the most ambitious, credible, and robust frameworks, like the SBTi, to reach global net zero by 2050 at the latest.

Michael McComb is global head of Sustainability Communications at 麻豆原创.

鈥淭he high-tech sector is under regulatory pressure to consistently capture data measuring the carbon footprint of their devices throughout the entire product life cycle, from sourcing materials to end of life and reuse,鈥� said Joerg Kaufmann, director of high-tech solution management at 麻豆原创. 鈥淭hey need a certifiable, auditable trail of data to prove regulatory compliance and avoid penalties. This will help manage operational costs while building a more sustainable business model.鈥�

A recent found that high-tech executives demonstrated the most mature outlook on sustainability: over 75% agreed that good sustainability practices reduced overall risk, versus 61% of total respondents. They were also the most likely of any sector to have a specific plan for reducing carbon emissions (71%).

Tracking Product Lifetime CO2 Emissions

Make no mistake, for high tech and every industry, net zero is a bottom-line issue. researchers predicted that by 2024, to improve long-term supply chain profitability, 70% of manufacturers in global supply chains will invest in software tools supporting sustainability and a circular economy business model. analysts said that by 2025, 40% of all manufacturing IT will own the responsibility of data modeling for sustainability and net-zero carbon targets.

Consider the carbon footprint of a laptop. It begins with the sourcing of raw materials that are transported to the plant, stored in a warehouse, and productized into the manufacturing of the laptop, which is shipped to customers who use it before, hopefully, recycling it for another use. During each phase of life, the product emits CO2, increasing a company鈥檚 total carbon footprint over time. Tracking this level of tonnage with accuracy and consistency is the next frontier in sustainable business.

鈥淐O2 is the new currency for resilient, sustainable supply chains,鈥� said Kaufmann. 鈥淔or example, is designed to collect internal and external data and calculate carbon emissions across the product life cycle. Companies can explore what-if scenarios, such as finding closer suppliers to reduce shipping miles and energy consumption. They could look at alternate designs and operations, sourcing recycled materials or increasing manufacturing efficiencies to produce an identical product for the same price with a lower carbon footprint.鈥�

Circular Economy Beats High-Tech Obsolescence

Built-in obsolescence has become both a growth driver and reporting burden for high-tech manufacturers. Yes, we want the latest innovations, but sustainable business isn鈥檛 tenable at the expense of climate change regulations. Many high-tech companies are transforming business models, in part, to innovate and better manage costs plus address climate change requirements. analysts predicted that by 2024, digital-first enterprises will enable empathetic customer experiences and resilient operating models by shifting 70% of all tech and services spending to as-a-service and outcomes-centric models.

鈥淥ver the past decade, many of our high-tech clients have shifted from selling boxes to services,鈥� said Kaufmann. 鈥淲e鈥檙e researching analytics that would help a manufacturer that sold, for instance, printing-as-a-service to track usage and provide insights prolonging the sustainable life cycle of the printer, including service and maintenance, replacement and exchange timelines, and reuse for business value and lowered lifetime carbon emissions.鈥�

High-Tech Players Recalculate Cost of Innovation

Having connected data may already be paying off for some companies. In the Oxford survey, high-tech respondents appeared to have made more progress in ensuring suppliers have sourced sustainable materials (72%) versus other industries. Business model transformation isn鈥檛 necessarily wholesale change all at once. With the right data, high-tech manufacturers can make adjustments that deliver stronger business results. No doubt regulations will spark innovations as well.

鈥淲hen you can measure your product鈥檚 entire CO2 footprint, you can reduce it,鈥� said Kaufmann. 鈥淲ith more comprehensive data, high-tech companies can factor CO2 emissions into the entire cost of the product, alongside everything else like the battery or the shell. They can make more informed decisions about the total cost to the company, including the environment.鈥�

Innovation at any cost is no longer sufficient for sustainable business. With the right data, high-tech leaders can recalculate the price all of us pay for a more sustainable world.

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Is this too bold? I don鈥檛 think so. The recent COP26 climate conference and the Glasgow Climate Pact gave a strong signal to countries and businesses to set more ambitious targets in order to prevent further irreversible damage from climate change. Given the climate and social crisis the world faces, we need to 鈥済o big鈥� with our ambitions and have the courage to act, thereby living up to 麻豆原创鈥檚 purpose to help the world run better and improve people鈥檚 lives.

More than a decade ago, 麻豆原创 set out on its sustainability journey with the objective to create positive economic, environmental, and social impact within planetary boundaries. Along the way, we have experienced the benefits as well as the challenges of integrating economic, social, and environmental performance into how we measure and steer our business success holistically. Setting and monitoring ambitious and measurable targets while leveraging digital solutions have proven crucial to decarbonization.

Raising our ambition to get to net-zero is therefore one of the key cornerstones on our path forward to implementing our holistic approach to sustainability, which looks across climate action, the circular economy, social responsibility, holistic steering and reporting, and the many areas of interconnection.

The from the Intergovernmental Panel on Climate Change (IPCC) as well as 麻豆原创鈥檚 intense engagement on the ground at COP26 have left us with a deepened understanding of the science, the role of business, and the impact of 麻豆原创. With an increased sense of urgency, we recognize the responsibility, as well as the opportunity, to step up and drive a faster transformation toward a sustainable future.

Leveraging 麻豆原创鈥檚 global reach, today we announced the release of 麻豆原创 Cloud for Sustainable Enterprises to help companies quickly adopt holistic sustainability management capabilities. In addition, we commit to accelerate 麻豆原创鈥檚 from 2050 to 2030 and to reach our climate goals, in line with the Paris Agreement, 20 years earlier.

What Does Net-Zero Mean?

Net-zero is a state in which the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere. It has gained significant traction, with net-zero pledges covering 16% of the global economy in 2019 and recently growing to nearly 80% committed to net-zero by 2050. Because the various definitions of net-zero and how to get there have been growing too, so have criticism and skepticism.

Leading up to COP26, the Science Based Targets initiative (SBTi) to provide a credible and independent assessment of corporate net-zero target setting in line with climate science, which enables companies to align their near- and long-term climate action with limiting global warming to 1.5掳C.

颅颅颅Building on its carbon reduction journey since 2009, 麻豆原创 became a member of SBTi and, in 2017, was the first German company with a science-based carbon reduction target for 2050. In 2019, 麻豆原创 raised its commitment and adopted a聽1.5掳C science-based emissions reduction target.

On our pathway toward net-zero, the next intermediate milestone is 2023, when 麻豆原创 aims to be carbon neutral in its own operations聽鈥� two years earlier than originally targeted. 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 centers (co-locations and hyperscalers).

The 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 麻豆原创鈥檚 entire value chain (including upstream and downstream emissions) compared to 135 kt net emissions for 麻豆原创鈥檚 own operations.

Targeting Our Entire Value Chain

Reducing emissions from the use of 麻豆原创鈥檚 sold products will be the primary lever, followed by purchased goods and services. Our focus will be on the following key areas:

• Accelerating the transformation of on-premise customers to cloud
• Strengthening engagement with key suppliers to commit to net-zero and deliver products and services on a carbon-neutral basis
• Using best-in-class data centers (our own, our co-locations, and hyperscalers) with sustainable programming and a cloud carbon footprint calculator for all 麻豆原创 cloud solutions
• Enhancing direct investments in renewable electricity as well as nature-based and technical-based funds to neutralize residual carbon emissions

The next step is to receive external validation by SBTi. We have started setting up a cross-company program involving experts from different lines of business to prepare for our net-zero transformation and will continue to make progress transparent, for example in our annual .

We are not starting from scratch. We have many achievements to build on, but we are also charting new territory. 2030 is just nine years away. The challenge will increase the more we move upstream and downstream into our value chain. We will face both synergies as well as additional complexity as we interface with our further focus areas for sustainability, including holistic steering and reporting, circular economy, and social responsibility based on respect for human rights.
But as our external sustainability advisory panel confirmed for us, this is the right thing to do. Our net-zero commitment is one of many actions we are taking at 麻豆原创. It will take all of us to work together to deliver the outcomes we need for people and planet, and for a profitable, sustainable business.

As Luka Mucic, CFO, member of the Executive Board of 麻豆原创 SE, and Board sponsor for sustainability at 麻豆原创, at COP26: 鈥淲e must reinvent the global economy. That is what it will take to limit global warming to 1.5鈩�. All of us must build sustainability into the fabric of how we do business. Only when a business strategy is sustainable itself, and is embedded in all aspects of the business, can we reduce negative impacts and create regenerative systems.鈥�

Daniel Schmid is chief sustainability officer of 麻豆原创 SE.

That is why we鈥檙e working with technology companies, leading non-governmental organizations (NGOs), management consulting firms, global systems integrators, sustainability ratings platforms, and standards-setting organizations to understand sustainability business needs and build solutions to support them.

Through these efforts, 麻豆原创 is proud to enable many , including: Unilever, which is innovating the global food system; Hitachi, which is scaling the power of renewable energy; Colgate, which is investing to reduce waste; and Anglian Water, which is rapidly implementing a holistic sustainable business strategy.

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Beyond supporting our customers, we are strengthening our own sustainability commitments. We鈥檝e announced that we will accelerate our goal to achieve net-zero emissions across our value chain by 2030, rather than 2050 — achieving our net-zero target 20 years earlier than we originally planned. Our chief sustainability officer explains how we鈥檝e been able to make this commitment. We are also proud to be recognized on the prestigious CDP A list, which names a select group of companies leading the way to a more sustainable future, and to have earned the top ranking in the S&P Dow Jones Sustainability Indices (DJSI) in the software sector for the 15th consecutive year.

There is no question that accelerated business action toward sustainability will have a dramatic positive impact on people and the planet. At 麻豆原创, we believe it is also the greatest economic opportunity of our time. Viewing sustainability as an added cost to business is incorrect; it is a competitive advantage.

We also understand that business must be both profitable and sustainable. This means putting people, the planet, and profit on equal footing — making the 鈥済reen line鈥� as important as the top line and the bottom line. Companies that focus on sustainable business performance will gain competitive efficiencies, more easily comply with increasing regulation, and ultimately be able to adapt and thrive through new business opportunities.

Five Actions for Sustainable Business听听

We have learned a great deal through years of focus, investment, and experience working with customers and managing our own sustainability efforts. Urgent action is needed in 2022 and the calls of a 鈥溾�� are not overstated. It鈥檚 time for every business to act.

Since there is no such thing as sustainability in a silo, we鈥檙e sharing what we have learned. This week we’re releasing a guide outlining Five Actions for Sustainable Business.

The five actions apply to companies of all sizes, industries, geographies, and stages of becoming a sustainable business. This guide is intended to bind strategy to execution, offering a clear road map to a more sustainable future. If every company took these five actions, we would take major steps forward to enable businesses, industries, and economies to deliver the positive outcomes we urgently need.

1. Establish a Sustainable Business Strategy
Ensure sustainability is central to your overall business strategy with all corporate functions contributing. Measure your progress and report your annual sustainability outcomes at the same level of importance as your financials.

2. Embed Sustainable Business Data into Processes and Networks
Use sustainability data within your business processes to make sustainable and profitable decisions and measure performance. Then share the sustainability performance data — which could include calculated carbon emissions, water use, recyclability, or labor information — with your suppliers, industry associations, regulators, and NGOs.

3. Manage Carbon and Climate Exposure Throughout the Business
Reduce your financial and reputational risks by accounting for and managing climate-related emissions across all parts of your value chain, down to the individual product and service level.

4. Embrace Circularity and Become Regenerative
Use operating principles to avoid, reduce, reuse, recycle, and reclaim materials to minimize waste and accelerate your adoption of circular economy processes. Go beyond doing 鈥渓ess bad鈥� to adopt approaches to do 鈥渕ore good.鈥�

5. Prioritize People Across Your Value Chain
Enhance your social sustainability by respecting your workforce diversity, safety, and human rights, developing learning and growth opportunities, and leveraging the power of your corporate purchasing.

It is important to note the key element that powers all five of these steps: data. The saying 鈥測ou can鈥檛 manage what you can鈥檛 measure鈥� applies to revenue, profits, and sustainability. Yet our shows that 79% of companies report being dissatisfied with the quality of the data they collect about environmental sustainability. The World Economic Forum that supports data collection, analysis, and reporting on environmental, social, and governance (ESG) actions.

To facilitate better use of data, today 麻豆原创 is announcing a new cloud offering to power any organization’s sustainability goals.

Introducing 麻豆原创 Cloud for Sustainable Enterprises

For 50 years, companies have turned to 麻豆原创 to measure, manage, and optimize their top- and bottom-line business outcomes. Today, we are adding the ability to measure sustainability outcomes and bring clarity to their green line.

To manage the green line, companies need business process technology to identify, quantify, analyze, and act on data through their end-to-end operations. To enable this, our new offering, , brings together a comprehensive portfolio of solutions that enables businesses to holistically manage sustainability performance.

While the solution is comprehensive, the approach is simple: one customizable cloud offering, one license, with expert and our highly skilled partner ecosystem.

Whether you want to deliver on your net-zero sustainability goal, achieve compliance with sustainability regulations, reclaim waste materials, or empower a more diverse workforce, 麻豆原创 Cloud for Sustainable Enterprises provides the technology solution to power your outcomes.

Julia White is chief marketing and solutions officer and a member of the Executive Board of 麻豆原创 SE.