Since 2021, has been 麻豆原创鈥檚 solution for calculating EPR fees across markets. At that time, the number of jurisdictions with installed mandatory EPR was around 60. By 2030, that number is expected to grow to 200.

With an evolving regulatory landscape, 麻豆原创 has implemented new updates within the solution to help ensure that customers can navigate diverse reporting requirements, deadlines, and fees while increasing accuracy, reducing fees and exposure, and improving insights. Read on for updates about recent innovations and how the solution combines enterprise data with information about local and global regulations to help calculate obligations like the EU Packaging and Packaging Waste Regulation (PPWR).

Meet EPR regulations with a flexible, AI-driven, and configurable approach

To date, 麻豆原创 Responsible Design and Production has supported customers in meeting EPR requirements with out-of-box report categories that are pre-configured based on country. However, the new global regulatory landscape necessitates a more flexible approach.

Enterprises need solutions that enable them to:

• Understand obligations and quickly adapt to new or changing regulations.
• Prepare the data, consolidating from many sources.
• Prepare reports, which requires custom reporting logic based on specific business contexts; reuse of rules and fee structures across similar reporting schemes or producer responsibility organizations (PROs); and calculating EPR fees against shipments and printing the results on invoices to show customers the breakdown between product costs and indirect taxes.

To address these challenges, 麻豆原创 Responsible Design and Production introduced user-defined reports to help enable customers to design their own sustainability reports, tailoring them to match unique regulatory logic, business context, and compliance requirements.

With new innovations in 麻豆原创 Responsible Design and Production, users can:

• Structure reports according to the specific rules, PRO requirements, and fee models relevant to their business.
• Precisely narrow down to the packaging and transactional data that is being reported.
• Satisfy complex requirements with multiple dimensions used in report output structure.
• Integrate reports with external and third-party recyclability guidelines assessments.
• Report and comply with the increasing number of PROs that have incorporated eco-modulated ERP fees with eco-modulation grading capabilities.

AI capabilities enhance efficiency and accelerate readiness

The 麻豆原创 Sustainability portfolio can deliver AI-led operational transformation by capturing sustainability data at the source and embedding intelligence directly into core business processes, thereby enabling continuous improvement at scale. In 麻豆原创 Responsible Design and Production, two AI cases involving user-defined reports are in beta testing:

麻豆原创 Responsible Design and Production, AI-assisted user-defined report explanations

This capability uses AI to analyze and describe how developed extended producer responsibility rules contribute to the assessment results of selected product packaging. During the development of user-defined report categories, EPR report specialists may struggle to understand why a given packaging was categorized in a certain way or not categorized at all. The AI use case is intended to help resolve and simplify an error-prone process by which specialists manually recheck packaging data and reevaluate rules.

麻豆原创 Responsible Design and Production, AI-assisted rule creation for user-defined reports

This capability uses AI to translate from regulatory language to system rules, empowering packaging compliance managers to create and validate EPR reporting rules faster and with higher accuracy. The AI use case is intended to help reduce manual effort, avoid costly compliance errors, and accelerate report readiness across markets.

Prepare for future compliance and competitive advantage using AI

The EU PPWR is coming, and most companies aren鈥檛 ready. PPWR introduces significant obligations for all economic operators placing packaged goods on the EU market. Brand owners, importers, packaging manufacturers, distributors, and digital marketplaces are all impacted. To mitigate risk and ensure readiness, businesses must take immediate action to assess and adapt packaging materials, data systems, and regulatory reporting.

The detailed packaging data management offered by 麻豆原创 Responsible Design and Production will help enable organizations to efficiently handle PPWR compliance. With robust data capture and flexible reporting, companies can anticipate regulatory changes and maintain transparency throughout their packaging supply chain.

麻豆原创 Responsible Design and Production is working on document of compliance capability, recyclability assessments using real product shipment data, so you can assess which changes have the biggest impact. Stay tuned for future announcements from 麻豆原创 on this topic.

An ERP-centric framework for many business outcomes

By enabling organizations to build reports that align with their changing needs, 麻豆原创 Responsible Design and Production can ensure that compliance remains agile, scalable, and future-ready. The solution can connect design, production, and regulatory demands to enable organizations to minimize waste, optimize costs, and adhere to global sustainability standards.

Unlike standalone compliance tools, 麻豆原创 Responsible Design and Production operates within an ERP-centric framework, helping to ensure seamless integration with existing 麻豆原创 solutions for product master data and transaction data.

Traditional, manually intensive processes are not enough to keep pace with regulations and ensure competitive advantage by unlocking data insights. One 麻豆原创 Responsible Design and Production customer recently confirmed that using the solution was four times faster and less expensive than manual processes with a spreadsheet or using consultants.

With 麻豆原创 Responsible Design and Production, your organization can be empowered to respond swiftly and confidently to regulatory changes, working to ensure compliance while freeing your teams to focus on business impact that matters.

Listen to the recent to discover how businesses can address upcoming PPWR requirements with 麻豆原创 solutions.

Learn more about user-defined report capabilities or request a demo of 麻豆原创 Responsible Design and Production. Read these customer stories:

Gunther Rothermel is chief product officer for 麻豆原创 Sustainability.

This data-granular, verifiable, one-click solution supports the company on its path to carbon neutrality by 2030.

Challenges and opportunities

HARTING faced the challenge of finding a reliable method to calculate CO鈧� emissions across thousands of production materials while meeting customer and supplier expectations regarding sustainability. Leveraging its existing ERP application landscape with 麻豆原创 and maintaining established green production and renewable energy processes were crucial.

鈥淐onducting our business and protecting the environment are not mutually exclusive. We are convinced that we must consider both to be successful in the long run,鈥� says Dietmar Harting, member of the Board and partner of the HARTING Technology Group.

Innovations for a sustainable future

Considered the connectivity gold standard across various industrial sectors, HARTING required a robust system to accurately assess emissions. can automate data collection, scale emission calculations, and create CO鈧� transparency throughout the supply chain. 鈥淭he key to communicating our CO鈧� emissions transparently and recognizing potential for reduction lies in the automated calculation and granularity of the data provided by 麻豆原创 Sustainability Footprint Management,鈥� explains Dr. Stephan Middelkamp, general manager, Quality and Technology at HARTING.

This solution enables HARTING to provide real-time, granular data to support the 鈥淕reenLine鈥� label, an environmentally sustainable designation highlighting renewable materials offering up to a 70% CO鈧� reduction.

Strengthening sustainable production

With 麻豆原创 Sustainability Footprint Management, HARTING can now precisely calculate and report product carbon footprints. This capability is essential to address upcoming EU sustainability regulations, such as the Corporate Sustainability Reporting Directive and Digital Product Passport. The solution helps simplify complex data into verifiable, one-click results, promoting sustainable production practices.

Also integrated into HARTING’s sustainability strategy is the use of , which helps the company design products responsibly from the start, reduce plastic taxes, and promote recycling.

鈥淭he site-level data derived from 麻豆原创 Sustainability Footprint Management will drive cleaner production in environmentally friendly facilities while mitigating greenhouse gas emissions and reducing the impact on water and land life. Green is how we think, green is how we act,鈥� emphasizes Jordy Brinks, global environmental manager at HARTING.

On the path to a greener future

麻豆原创 is advancing HARTING鈥檚 sustainability journey by enabling the company to design products more sustainably, reduce plastic taxes, promote responsible sourcing, and further recycling practices. With these efforts, HARTING aims to achieve carbon neutrality at all locations by 2030, underscoring its commitment to sustainable growth and environmental stewardship.

“As a family business, we combine consistency with a willingness to innovate and regional loyalty. For us, this means taking responsibility for people and the environment,鈥� Harting says. 鈥淲e鈥檙e not only shaping a livable planet for our future generations, we鈥檙e making the future possible. We want to shape the future with technologies for people.鈥�

The HARTING Technology Group continues to drive meaningful change, connecting business success with a greener future and aligning family ideals with sustainability goals.

HARTING at the 2025 麻豆原创 Innovation Awards

All of these efforts did not go unnoticed: HARTING has long been recognized as a pioneer in sustainability. This year, it won an , leveraging 麻豆原创 Responsible Design and Production to create 85% of its plastic packaging material from recycled materials.

This article first appeared on the German 麻豆原创 News Center.

The world has been waiting for a global plastics treaty since 2022, when representatives from 175 nations agreed on a mandate to create a legally binding instrument to end plastic pollution. While progress has been made during the five rounds of negotiations to date, a final treaty has yet to be agreed. With negotiations set to continue, 麻豆原创 has collaborated with to launch the 鈥淪hift into Gear鈥� report, inciting companies not to wait but to start preparing now to meet global plastics legislation.

It’s not just a reporting duty

Plastics regulation isn鈥檛 new. It has rapidly spread across the globe like a rising tide, driven by the urgency to reduce our dependence on fossil fuels and curb the plastic waste that is choking both marine and land-based ecosystems. Companies now face the growing tide of extended producer responsibility (EPR) regulations and pay plastic taxes in certain jurisdictions. Globally, the corporate liabilities linked to plastic usage are projected to exceed US$20 billion by 2030.

In this shifting landscape, 麻豆原创 and Earth Action argue that plastic and data management are no longer reporting duties only, but fundamental business imperatives. Companies that fail to navigate these waters may find themselves sinking under the weight of financial liabilities, whereas those that prepare, comply with regulations, and leverage digital solutions will ride the wave, standing to gain a competitive advantage.

Disparate EPR regulations make compliance onerous and expensive

Originally designed to fund waste management, EPR regulations are now focused on the eco-design and recyclability of items. Complications for corporations arise from the variety of different EPR regulations across different territories. The report describes how one consumer goods company operating in over 180 countries can face a minefield of 30 to 50 different EPR policies, which could cost in the region of 0.5%-1% of final product revenue. For multinational corporations, this can add up to millions of euros of risk鈥攐r opportunity.

Avoidance isn鈥檛 a viable option. Non-compliance comes with significant financial risks including fines, litigation, and potential clean-up costs. Reputational risk linked to consumer protection violations, false advertising, and environmental damage is also a factor that could result in revenue loss and a decline in investor confidence.

麻豆原创 joins forces to lobby for standardization

麻豆原创 is working with the World Business Council for Sustainable Development (WBCSD) and the Ellen MacArthur Foundation, calling for industry alignment on packaging data. Together, we are pioneering a project to enable standardized data to be exchanged throughout supply chains. This can allow businesses to access and analyze materials from a variety of suppliers to empower the design of more sustainable and recyclable packaging, which can minimize waste and reduce EPR fees and plastic taxes.

Negotiations to finalize the global plastics treaty are expected to resume with delegates due to convene for INC 5.2 in 2025.

Companies should not delay

The report is clear. Companies must not wait for a finalized treaty before taking action. With a myriad of national and regional regulations already in existence, including the EU鈥檚 Packaging and Packaging Waste Regulation (PPWR) and the Corporate Sustainability Reporting Directive (CSRD), there is already work to do. Delaying compliance may leave companies lagging behind and unable to meet existing and upcoming regulations, leading to the financial and reputational risks already mentioned. Under the PPWR, for example, the penalties for non-compliance are not just theoretical鈥攖hey are a looming reality. Each EU member state can impose sanctions that are effective, proportionate, and dissuasive, ranging from hefty fines to sales bans or mandatory product recalls because of non-compliant packaging. In other words, the clock is ticking and the consequences of inaction could hit harder than anticipated.

Early adopters stand to benefit from their experience and will be better prepared for the shifting regulatory field when the treaty enters into force. By proactively implementing robust data management solutions and streamlining their reporting processes, they can start to make gains in terms of circularity and sustainability. In doing so, they will obtain an unprecedented view of their plastic material flows, allowing them to unlock efficiencies and reduce risk.

Data management is critical

Contrary to an often referred to argument put forward by treaty detractors, the data organizations require for compliance does exist and can be found within existing enterprise systems. Companies should look to their enterprise resource planning (ERP) systems and financial reporting platforms. These are treasure troves, filled with procurement records, supplier data, and waste management information鈥攌ey assets for reporting purposes.

Businesses should also coordinate with their suppliers and customers with a view to data sharing for resource optimization and to scale efficiencies.

Data management systems like help companies collect and use data by aggregating it from third-party systems. It can not only allow sustainability managers to accurately calculate fees and taxes but can give them a lifecycle view of indirect taxation costs and, by considering downstream recyclability and recycled content, the environmental impact of design choices. The solution can also allow users to experiment with switching materials, products, and altering supply chains, providing them with the information they need for agile decision-making.

Prepare for an ambitious treaty

Corporations must invest in their enterprise systems to leverage data and collaborate with their supply chain to meet upcoming legislation and avoid risks and penalties of non-compliance. The sooner they start, the better their competitive advantage. By utilizing data management systems to collect robust data and collaborate with supply chains, they will be equipped to thrive in the era of plastic regulation, limiting their costs, achieving sustainability targets, and complying with evolving regulations.

Darren West is global head of Circular Economy Solutions at 麻豆原创.

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Gonz谩lez Byass is a family-owned producer and distributor of wine and spirits.听The company uses 麻豆原创 Responsible Design and Production for quicker, easier and more sustainable production, resulting in a 20 percent reduction of carbon emissions.

Elisabet Braza Valle, 麻豆原创 Supply Chain and Finance head at Gonz谩lez Byass, shares how they run a sustainable business. Learn more.

The partnership has continued to this day with a mission to make great wines and spirits that bring people together. Now, the company has over 2,000 hectares of vines under cultivation in 12 wine-growing regions of Spain, Chile, and Mexico, where the producer deploys sustainable agricultural techniques to bring indigenous vines back into production.

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Running a Responsible Business

鈥淔or us, everything revolves around sustainability,鈥� said Elisabet Braza Valle, head of 麻豆原创 Supply Chain and Finance at Gonz谩lez Byass, during an interview at 麻豆原创 Sapphire Barcelona. 鈥淥ur goal is to be a reference in the wine sector and also in the field of sustainability, and we鈥檙e using technology to do that.鈥�

Valle explained that digitalization is helping to drive efficiency by improving processes and that people are already noticing a more expeditious service. 鈥淎ll the processes are connected,鈥� she said. 鈥淐lients notice that we are preparing their packages and managing their invoices faster than before. That鈥檚 because, thanks to 麻豆原创, we have all the data in the same place.鈥�

In addition to its core 麻豆原创 ERP system, Gonz谩lez Byass recently implemented , a solution that helps enterprises calculate extended producer responsibility (EPR) obligations and define corporate commitments to optimize material choices. It鈥檚 also designed to help address all the requirements of the new plastic taxes in Europe.

To help promote a more circular economy, for example, Spanish law mandates an indirect tax levied on plastic in packaging. Calculating the taxable amount is particularly complex and burdensome. Companies must know how much non-recycled plastic is in the non-reusable plastic packaging contained in the shipments they receive. This information should be furnished by the suppliers that now find themselves in a challenging situation as they did not have to comply with this type of requirement before. Collected data must be reliable and verifiable to ensure accuracy when sharing with customers or if it should be questioned by the Spanish tax authorities.

鈥溌槎乖粹�檚 solution not only helps us comply with the law, but it also helps us manage our materials more efficiently,鈥� said Valle, who believes one of the greatest assets of the solution is the visibility it provides into the company鈥檚 supplier landscape. 鈥淲e are encouraging all of our suppliers to commit to being more sustainable, and we assess them every year. We also work together to improve our environmental behavior.鈥�

Valle cited several examples of collaborative engagement, such as reducing the weight of glass bottles and using recyclable packaging materials. The company has already substituted some materials with more sustainable alternatives and is buying cardboard boxes and wood sourced from certified forests.

鈥淲e have all the information about our materials in 麻豆原创 Responsible Design and Production, so we can see how much plastic we are using and how much of it is recycled. That determines the amount of tax we pay,鈥� Valle explained. 

All these improvements are part of the company鈥檚 People and Planet program that is designed to ensure a nature-friendly, energy-efficient foundation for future generations. The efforts are paying off.

Simplifying a Complex Landscape

According to its sustainability report for 2022, Gonz谩lez Byass already reuses or recycles 99% of the waste it generates and 79% of the energy it consumes comes from renewable sources. Water conservation efforts include using rainwater for irrigation, underground irrigation, and satellite-controlled irrigation.

Gonz谩lez Byass has already reduced carbon emissions by 20% and is committed to a 55% reduction by 2030. Besides managing its own regulatory obligations in Spain, the company must also be compliant with other regulations in the EU and the UK that impact its business. For example, recycling glass packaging waste is mandatory in all EU Member States. In Spain, this process is driven by Ecovidrio, a non-profit entity managing the Collective System of Extended Producer Responsibility (SCRAP).

鈥淥ne of our next projects is to set up Ecovidrio in the 麻豆原创 Responsible Design and Production solution, where we manage all our tax declarations and reports,鈥� Valle said. 鈥淎nother critical report is the declaration for the Ministry of Ecological Transition. Technology is helping us become a global reference in the sector because now we鈥檝e integrated all relevant information needed for compliance.鈥�

Four of its wineries have received the Wineries for Climate Protection certification, the first of such credentials specific to the wine industry targeting environmental sustainability. The certification recognizes sustainability activities in wineries in four key areas: reducing greenhouse gas emissions, managing water, reducing waste, and increasing energy efficiency.

Valle is confident that with the aid of technology Gonz谩lez Byass will not only be a leader and a reference in the sector, but, most importantly, it will secure its place as an exceptional winemaker for posterity. After all, since its most iconic wine , it鈥檚 a good thing Gonz谩lez Byass is doing everything to continue producing the best wines and spirits for future connoisseurs. 

The treaty represents a once-in-a-lifetime opportunity to unleash the potential of business to solve the plastic crisis. Its success is crucial. Production of new plastic is forecast to double by 2040 without new and effective action. Only 10% of plastic is currently recycled, and each year 19 to 23 million tons of plastic end up in our rivers, lakes, and seas. In addition, greenhouse gas emissions from plastics production, management, and disposal represent around 3.3% of global emissions. Exposure to plastics also has implications on human health, with plastic traces being found in our blood.

Fortunately, there is global consensus on the pressing need to end this ecological and environmental crisis, which is why 160 countries and hundreds of observer organizations are working together on this unique opportunity to end plastic pollution.

A Treaty Addressing the Entire Plastics Value Chain

The existing plastics ecosystem is heavily fragmented. Under current conditions, financial flows fund the creation of virgin polymers while a linear material flow continues bringing new plastics to market.

Centered on regulating production and consumption, the negotiations take every stage of the plastic value chain into account, from creation of the primary polymers to how plastic waste is managed. It covers product design for plastic reduction and recycling as well as extended producer responsibility to increase accountability among the most polluting entities while ensuring a just transition for affected communities.

This is an ambitious project. It will involve redesigning products, making circularity possible through repair, reuse, and recycling, and making recycled polymers more economically viable than virgin plastics.

New jobs, markets, and business opportunities will be created by the treaty. Research and development into plastic alternatives will be accelerated to eliminate the health-harming pollutants from plastic that are released at every stage of plastic production. Additionally, it will require the evolution of waste management systems to deal with the legacy of plastic waste.

麻豆原创 Endorses the Business Coalition

The , convened by the Ellen MacArthur Foundation and WWF, assembles businesses and financial institutions committed to supporting the development of an ambitious, effective, and legally binding UN treaty to end plastic pollution.

“To end plastic pollution, we require both ambitious government policy and accelerated business action. The global plastics treaty offers a once-in-a-generation opportunity to put in place the right legally binding rules, measures, and incentives to tackle this global problem,” says Rob听Opsomer, executive lead, Plastics and Finance, Ellen MacArthur Foundation.

With over 200 members, including 麻豆原创, the Business Coalition for a Global Plastics Treaty is calling for global business rules underpinned by harmonized regulations to tackle the full life cycle of plastic products. This will level the global playing field, making it easier for businesses and investors to scale both upstream and downstream solutions, mobilize the right investments, and support new innovations.听

鈥淔or decades, 麻豆原创 software has been instrumental in enabling our customers to manage material flows, including plastics,” says Natasha Pergl, global sustainability lead, 麻豆原创 Consumer Products. “We understand first-hand the challenges our customers face in managing the complex and fragmented web of regulations in place today that make it difficult to understand current material flows and align upstream efforts with downstream solutions.”

麻豆原创 Calls for Harmonization

Achieving systemic change will require collaboration and joint innovation, which depends on effective, well-functioning communication. Software and network technology are central to bridging the information gap and operationalizing an inclusive plastics ecosystem. The treaty must lay the foundations for harmonized regulations and simplified information flow as well as accelerate the implementation of global rules.

To achieve this, four essential elements need to be in place:

• Common definitions for plastics and packaging to ensure mutual understanding and interoperability: This applies to the categorization of various plastic polymers, how products are structured and denominated, and how they are packaged and sold.
• Harmonization across the plastics life cycle, covering criteria for product design, extended producer responsibility schemes, and assessment for recyclability: This will support businesses to design for circularity and recyclability, ensure that strategic decisions are guided by the capabilities of existing downstream infrastructure, and highlight where new capital investments are needed.
• Harmonized national disclosure schemes to ensure uniformity, comparability, and information transparency: This is essential for giving investors and regulators a base of information for policy steering and decision-making. It will also allow business to harness the full potential of AI-driven innovation to accelerate solutions at scale.
• Recognition of the role of digital tools for traceability: Improved data and the application of digital tracking will enable true progress.

鈥淭he treaty goals are ambitious, but with an agreement that focuses on global rules covering product design and material fate, extended producer responsibility schemes, and chemicals of concern, we can unleash the power of global business to deliver the solutions necessary. Importantly, 麻豆原创 is ready with the processes and systems to help businesses quickly grasp the opportunity and scale impact to end plastic pollution,” says Stephen Jamieson, global head of Circular Economy Solutions, 麻豆原创.

Software solutions, such as and , already allow companies to monitor, measure, and act to facilitate the design of products for a more sustainable and circular economy. But a more effective information flow for better collaboration and innovation is required to achieve systemic change.

The Role of AI

An obvious benefit of agreed common terminology and harmonization of criteria and disclosure rules is that it can open the door for businesses to leverage AI. Some envisaged applications in the production process include reducing virgin polymers and boosting material and supply chain efficiency. Downstream uses such as waste sorting, material recovery, quality control, identifying waste flow trends, and predictive analytics would also be made possible.

A Bold Approach

Discussions in Ottawa were productive and focused on decreasing and restricting plastic production. During the talks, Rwanda and Peru submitted a motion to reduce the production of primary plastic polymers worldwide by 40% by 2040, from a 2025 baseline. Their vision is for this to be legally binding, much like the Paris Agreement to limit global warming.

Robust data clarity and systems for sharing information are crucial for enabling businesses in the implementation of such a treaty. Only by connecting data points throughout the supply chain and across jurisdictions can material flows and emission sources be fully understood.

Work will continue towards INC-5 in Busan, South Korea, in November, where the final text will be agreed prior to being ratified in 2025.

For more information:

Heather Davies is a brand journalist.

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听is 听in U.S. President Joe Biden鈥檚 Net-Zero Game Changers Initiative. Meanwhile, the new听听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听. 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.

The international enterprise with headquarters in Spain and operations in more than 80 countries has been including environmental protection and economic growth into its DNA and is constantly working on achieving a sustainable business model that will be its future legacy to society and to the planet. Its commitment to the planet is based on four pillars: climate action, biodiversity protection, circularity, and conscious suppliers.

The mission of Zamora Company toward its suppliers is to encourage them to be more sustainable by collaborating closely to substitute product and packaging materials with more sustainable alternatives and to use more recyclable packaging materials to support circular economy principles. It鈥檚 no wonder that, for Zamora, sustainability goes hand in hand with innovation without compromising the highest quality standards. as a conscious company is also focused and aligned with the achievement of the set by the United Nations 2030 agenda.

Accelerating Innovation Through New Packaging Legislation

Since the introduction of a in Spain on January 1, 2023 on non-reusable plastic packaging, companies are required to meet comprehensive reporting requirements.

The tax is an indirect excise tax with an environmental purpose. It aims to internalize the environmental costs related to the manufacturing and consumption of plastic packaging in the price of final products.

The taxable event is the manufacturing, import, or intra-community acquisition of non-reusable plastic packaging for its use within the Spanish market. The plastic packaging tax captures a broad concept of “non-reusable plastic packaging” in its scope, which includes:

• Non-reusable plastic containers 鈥� the law provides definitions of 鈥渘on-reusable,鈥� 鈥減lastic,鈥� and 鈥渃ontainer鈥� for the purpose of this tax
• Semi-finished plastic products, such as preforms and thermoplastic sheets, intended for production of non-reusable plastic containers
• Plastic products aimed to facilitate the closing, trading, or presentation of non-reusable containers

鈥淭he new legislation required us to respond to governmental requisitions and was an additional driver to accelerate our sustainability efforts,鈥� Enrique Gonzalo Mec谩ndez, 麻豆原创 manager in Operations at Zamora Company, explained. 鈥淲ith a cross-departmental team, we were looking to find the most appropriate and scalable software solution to meet the country鈥檚 regulatory requirements and help us with data management, a tax monitor, and reporting and insights.鈥�

Keeping All Data in One Central Place

As a result, Zamora Company found that , an industry cloud-based solution, would best meet its needs. 麻豆原创 Responsible Design and Production can support manufacturers and retailers in calculating extended producer responsibility (EPR) obligations and fees, plastic taxes, and corporate commitments to optimize material choices. In addition, it helps improve design decisions based on costs and planetary impact.听

鈥淔rom a process standpoint, 麻豆原创 Responsible Design and Production facilitates the incorporation of everything related to sustainability data linked to the material, so that all relevant information is unified in the material master,鈥� Gonzalo Mec谩ndez said. 鈥淎s all information is kept in one place, purchasing work and master data maintenance required to ensure regulatory compliance is centralized, without the need to manually replicate information in different systems.鈥�

鈥淢oreover, leveraging a single and integrated platform with provides the security of working with up-to-date and correct data. Additionally, the data quality application allows our users to detect any lack of information and correct it,鈥� he added. 鈥淲ith deep knowledge and solution experience, our trusted partner , an company, closely supported us during the implementation of 麻豆原创 Responsible Design and Production, as well as the integration with our 麻豆原创 S/4HANA platform.鈥�

The benefits Zamora Company achieved include:

• Ability to rely on 100% correct data, fully aligned with material registration processes
• Cost savings thanks to less administrative work, eased reporting, and a central data repository
• Reduced risk of non-compliance with extended producer responsibility regulations in Spain
• A simple, user-friendly tool to support legal reporting requirements in a timely manner
• Ability to expand solution usage to meet upcoming EPR legislation in other countries, like Italy 

Positive Impact on Customers, Economy, Society, and Environment

鈥淭he project helped us learn more about our products and incorporate their packaging details, so that our company knows exactly how much plastic and non-recycled plastic is being used. In a more strategic phase, this will allow us to evaluate alternative materials and compositions, which can create cost savings for the company and positively contribute to the environment by being able to transition to more sustainable elements,鈥� Gonzalo Mec谩ndez concluded.

Watch a solution to learn how to start acting on a circular economy, design products sustainably, and eliminate waste with 麻豆原创 Responsible Design and Production. about what benefits other enterprises achieved.

To explore how the comprehensive, cloud-based sustainability solution portfolio from 麻豆原创 can support carbon footprint management, reducing material waste, and becoming a socially responsible business, visit .

Karin Fent is senior director of Global Customer Success, Digital Supply Chain, at 麻豆原创.

Winemaking emerged in Europe several thousand years later, and it is now home to many of the world鈥檚 most famous wine-producing regions. When paired with food or served for special occasions, wine consumed in moderation can awaken the senses and contribute to cherished memories. Spanish wine producer Gonzalez Byass shares this ethos, as to 鈥渂ring moments of joy, helping people to savor and share their most precious moments.鈥�

Headquartered in Jerez de la Frontera, Gonzalez Byass was founded in 1835 as a family-owned collection of wineries across Spain鈥檚 principal wine producing regions, overseeing the wine-making process from vineyard to wineglass. Grapes are harvested from its 2,000 hectares of vines under cultivation in nine wine-growing regions in Spain, Chile, and Mexico, and then pressed in traditional stone tanks, fermented, and the liquid aged in steel or oak barrels. After a few months or years, the wine is bottled and ready for consumption. 

What does not usually come to mind when contemplating the art of winemaking is the amount of plastic and other non-sustainable materials that may be involved, from the material encasing the corks, to the packaging used to safely transport the bottles. Gonzalez Byass saw an opportunity to address its use of plastic and promote regenerative agriculture in its industry through the implementation of a comprehensive and circular economy program in line with the (UN SDGs).

Confronting the Plastic Problem

Plastics are among the most consumed materials in agricultural industry, as they are used in large production structures, production inputs, agrochemical packaging, and food product containers, and thus generate vast amounts of waste. In response, consumers are turning away from single-use materials while governments are adopting an approach in the form of plastic taxes. These taxes are a hugely important policy tool to combat the and discourage the production and use of plastic packaging.  

The European Union (EU) instituted a plastic packaging levy in 2021, with some EU member states, like Spain and Italy, enacting their own new taxes. Spain鈥檚 tax which took effect this year imposes a tax on non-reusable plastic packaging and on waste incineration and disposal in landfills, with the goal of making all packaging in Spain recyclable by 2030.  

This reality has spurred consumer goods producers like Gonzalez Byass to drastically minimize use of plastic. Its efforts have seen the replacement of plastic packaging tapes with paper ones, replacement of plastic in bottle caps with wood and cork, and adoption of more sustainable plastic alternatives like bioplastic made from sugarcane. These steps have been instrumental in helping to recover and recycle 99% of the waste generated. The company also buys cardboard boxes and wood sourced from certified forests in line with its commitment to preserve and regenerate natural resources. 

The Key Role of Suppliers and Data

Plastic taxes are designed to discourage waste, prompting producers and distributors across the supply chain to reconsider their packaging choices. In its efforts to reduce use of plastic and purchase only recyclable packaging materials, Gonzalez Byass also needed to commit to sustainable purchasing throughout the entire value chain. Regular assessments with its suppliers have helped to gauge the progress on both sides. However, this kind of assessment requires not only trust and the fostering of great relationships — a skill at which it excels — but also, crucially, data.  

While the wine producer is committed to both sustainable production and procurement, compliance with new regulations in multiple different regulatory environments is a daunting task. The recently enacted extended producer responsibility measures in Spain and in other countries where it does business mean multiple different data streams, declarations, and timelines in different regions. Managing these myriad competing factors is one of the most complex challenges facing the consumer goods industry today. Being able to collect real-time data and centralize it all in one place is a key requirement for Gonzalez Byass to be able to realize its sustainable ambitions, embed circularity principles into its core business processes and comply with regulations.  

麻豆原创鈥檚 cloud solution for the circular economy, is designed to address all the requirements of the new plastic taxes.

Implemented by Minsait, which offers end-to-end digital transformation solutions, 麻豆原创 Responsible Design and Production will enable Gonzalez Byass to accurately calculate fees and taxes in line with all the latest regulations in key markets, optimize its material choices in line with corporate commitments, and significantly reduce risks from unforeseen future regulations.

麻豆原创 Responsible Design and Production provides intelligence that will enable Gonzalez Byass to monitor, measure, and act on its plastic data, so that it can make the most informed choices and carry out the critical work of eliminating waste and regenerating the natural systems that the company cares so passionately about.

Regenerating Nature to Address Biodiversity Loss

The transformation of the agriculture sector in Spain over the past 50 years has significantly boosted productivity and wealth but has also resulted in a substantial increase in the use of natural resources like water, at the cost of soil erosion and a negative impact on genetic diversity. Sustainable business practices require a fundamental shift in the way that we interact with nature, with a recognition that success depends not just on financial profit but also upon careful stewardship of the natural environment.

Gonzalez Byass鈥� vines include indigenous varieties on the verge of extinction that have been coaxed back into production to preserve regional biodiversity. This work is in tandem with its efforts to protect local wildlife, such as placing nesting boxes in a number of its vineyards, creating adequate ecosystems to promote pollination by bees, and promoting reforestation efforts in all the regions where the company operates.  And as water is essential for growing grapes and nurturing life, Gonzalez Byass employs sustainable irrigation techniques that use much less water in order to preserve this precious resource.  

Gonzalez Byass鈥� ambition is to leave the lightest possible footprint on the environment. Its commitment includes promoting sustainable agriculture and implementing circular business practices like precision-tracking plastics from the vineyard to your wineglass.

Next time you buy a bottle of wine, make sure that the company you purchase from has a sustainable vision for the future, and that it is compliant with key regulations that help protect planet and people. That is a goal worth raising a glass of wine.

Meanwhile, in its quest to make all packaging reusable or recyclable by 2030, the United Nations is preparing to launch a plastic treaty in 2024. At the same time, businesses themselves are furthering their commitment to sustainable practices through voluntary agreements, such as those proposed by the Ellen MacArthur Foundation and the United Nations Environment Program (UNEP).

Consumers are taking up the issue as well. , 91% of consumers express concern over plastic waste. indicates that 73% are willing to spend more for eco-friendly packaging.

Compliance with these new regulations can be a challenging and expensive task for businesses of all sizes. Many smaller to mid-range organizations lack in-house expertise on these issues, often resulting in either rudimentary monitoring or expensive outsourcing. Larger companies may find the immense scale of the task daunting and default to costly shortcuts.

鈥淲ith the complexity that they face and the sheer volume of business they have across multiple products and multiple countries, many organizations tend to be conservative to avoid fines,鈥� explains Darren West, product expert for Circular Economy Solutions at 麻豆原创. 鈥淎s a result, they will more or less approximate what taxes they need to pay, and overestimate to add in some contingency.鈥�

Driving Up Accuracy, Driving Down Costs

For consumer goods giant Henkel, the quest for an effective solution to its plastic waste challenge began in its tax department. Triggered by the advent of plastic taxes across the UK and EU, Henkel’s tax experts embarked on a project aimed at addressing compliance from a fiscal perspective.

On the IT side, the team was immediately faced with some significant hurdles. First, to comply with new regulations and avoid penalties, it needed a system that could monitor, measure, and report its products鈥� plastic data. Amidst a limited market of solutions, finding the right tool for its needs was no easy task 鈥� one made more difficult due to the newness of the regulations. And it needed to aggregate and organize the essential master data for accurate reporting without excessively complicating or inflating the cost of its IT infrastructure.

was born out of a desire for a more dynamic approach to plastic waste. The solution can supply teams with a streamlined, granular data management system to help facilitate the monitoring, measuring, and reporting related to the environmental impact of production and packaging.

Today, the 麻豆原创 Responsible Design and Production solution assists operations such as Henkel鈥檚 in navigating the labyrinth of product and packaging composition. Handling the details of primary, secondary, and tertiary packaging, as well as transport packaging throughout the supply chain, requires a meticulous approach. The solution offers a digital model of the larger packaging and product landscape, helping facilitate a thorough and accurate impact analysis.

To encapsulate the complexity of the packaging process, the solution can capture precise data on material flows and circularity attributes. It can also assist teams in recording the weights, volumes, and shipment information as well as important details regarding recycled content, import/export information, and the various packaging components. This precision is crucial for calculating plastic taxes as well as EPR fees, which demand exceptional accuracy and knowledge of detailed material flows within a country and across borders.

In the future, 麻豆原创 plans to extend the solution to help track and monitor the recyclability, reusability, and embedded CO2 of various materials. Such data is essential for organizations seeking to comprehend their scope 3 emissions across their entire packaging portfolio and to make their packaging more sustainable.

The solution helps provide results that businesses can stand behind, saving time and money and decreasing complexity 鈥� particularly when it comes to new markets. If an enterprise is based in one country, such as Belgium or the Netherlands, and is looking to expand, say, to France and Italy 鈥� which each have their own distinct systems and rules to govern packaging 鈥� the complexity of data management increases. With 麻豆原创 Responsible Design and Production, material, packaging, and transportation data can be tailored for new market expansions without repeating the same processes.

But the real beauty lies in the solution鈥檚 ability to adapt once the data is integrated. It can seamlessly adjust to different market requirements, working to enable straightforward report generation for tax and EPR compliance at the click of a button.

鈥淲hat we鈥檙e talking about here is simplicity,鈥� says West.

Redesigning a More Sustainable Future

Data and insights are just the start. The real challenge is translating this information into action.

Beyond supporting businesses in fulfilling operational obligations such as paying plastic taxes and accurately calculating EPR fees, the solution can enable informed strategic decisions. By offering insights into the impact of material choices and compositions, it helps empower businesses to embrace sustainable and responsible packaging solutions and business models.

After working with 麻豆原创 Responsible Design and Production, Henkel was able to meet its fundamental obligations more efficiently, gaining better insight into its data. These new capabilities have delivered far more than short-term efficiencies. They鈥檝e spotlighted Henkel’s ongoing efforts to reduce its environmental footprint, adding a new dimension to its green leadership in the industry.

鈥淥ne of the greatest things about this solution is what it does for an organization like Henkel,鈥� says Stephen Jamieson, global head of Circular Economy Solutions at 麻豆原创. 鈥淣amely, allowing it to evidence the good work it is already doing very effectively.鈥�

Henkel鈥檚 initiative with 麻豆原创 Responsible Design and Production dovetails well with a related Henkel initiative to strengthen supplier communication, collect more data, and enrich its sustainability database.

These efforts equip Henkel鈥檚 teams to pinpoint the products with the highest plastic tax load. These insights could soon guide strategic product redesign, potentially leading to significant cost savings. Moreover, by laying a solid foundation in regions such as Spain and the UK, Henkel is preparing itself to adapt to regulatory changes across markets.

The Road Ahead

As the global economy begins to look towards a more circular model, 麻豆原创 Responsible Design and Production is innovating in stride. Recognizing that businesses interact with diverse material types, the solution will expand in the future to accommodate elements such as food, land use, textiles, batteries, waste electronics, and more 鈥� all cornerstones of the circular economy 鈥� measuring key factors such as virgin materials, recycled content, embedded CO2, and renewable content.

At its core, 麻豆原创 Responsible Design and Production aims to assist organizations in actualizing their circular economy vision 鈥� eliminating waste, promoting material circulation, and rejuvenating natural systems. The solution is engineered to integrate smoothly with essential business processes and systems, empowering businesses to implement their sustainability strategies with more precision and efficacy. Whether it’s incorporating cost calculations into invoice procedures or integrating with other solutions to create a more holistic approach to sustainable practices overall, 麻豆原创 Responsible Design and Production can assist teams in transforming their business operations.

鈥淎t Henkel, we are committed to leadership in plastics reduction and offering greener options for our customers,鈥� says Dr. Nora Mundschenk, corporate director, Finance Tax and Trade Group, Henkel AG & Co. KGaA. 鈥溌槎乖� Responsible Design and Production and 麻豆原创 Services and Support are going to help us do that.鈥�

For more information on how 麻豆原创 helps companies record, report, and act on their sustainability goals, visit听.

Sami Emory is a brand journalist at 麻豆原创.

If you are using or producing plastic packaging, it is important to know whether your company is affected by the legislation and how 麻豆原创 can help.

What Are Plastic Packaging Taxes?

Plastic packaging taxes are taxes that are imposed on companies that produce or import plastic packaging. The aim of plastic packaging taxes is to encourage companies to reduce their use of plastic packaging and increase the use of more sustainable alternatives. Two countries, the UK and Spain, have already introduced plastic packaging taxes and others, such as Italy and Germany, have announced their plans to follow.

Why Are Plastic Packaging Taxes Becoming More Popular?

In Europe, one reason for the growing popularity of plastic packaging taxes is the introduction of a European Plastic Packaging Levy in 2021. This levy requires member states to pay 鈧�0.80 for each kilogram of plastic packaging waste that is not recycled in their country. Many countries are now considering passing on these costs to the industry through national plastic packaging taxes.

Globally, there are also events that indicate that more regulation is to be expected. For example, in March 2022, the United Nations Environment Assembly has agreed to launch negotiations on a legally binding global agreement to combat plastic pollution. For countries to comply with the legally binding provisions and obligations of this UN treaty, they will most likely strengthen their national laws regarding plastics.

What Makes the Administration of Plastic Packaging Taxes Complicated?

The details of the plastic packaging tax legislation vary from country to country, such as:

• Which packaging types and levels are included in the tax?
• What is the taxable event, like imports, production, or distribution?
• What are the reporting obligations? What forms need to be filled and how often?
• What are the rules for recycled plastic content in packaging?
• Are there any exemptions for certain types of packaging, such as packaging used for human medicine or tertiary packaging?

The more countries introduce plastic packaging taxes, the more difficult it will be for global companies to keep track and be compliant. This is where comes in.

How Does 麻豆原创 Support Customers in Plastic Packaging Tax Legislation Compliance?

麻豆原创 Responsible Design and Production is a cloud solution specifically designed to help 麻豆原创 customers holistically manage packaging and regulatory risk across global markets and support the transition to a sustainable packaging portfolio.

Some capabilities of 麻豆原创 Responsible Design and Production are:

• 麻豆原创 Responsible Design and Production is a cloud solution that is subscribed to via (麻豆原创 BTP).
• 麻豆原创 Responsible Design and Production has a unified data model. Packaging data, material master data, and transactional data can be replicated via a public API provided by the solution. Alternatively, or additionally, an Excel-upload is possible for all data objects.
• Plastic packaging tax reports and the underlying calculation logic is provided as content-as-a-service in 麻豆原创 Responsible Design and Production. This means that reporting can be largely automated, in line with the latest regulations.
• Reports can be configured by organizational data filters; other configurations are not necessary as the calculation logic is strictly coded according to the regulatory requirements.
• Additional analysis capabilities are provided in 麻豆原创 Responsible Design and Production for analyzing the packaging portfolio and the resulting fees and taxes.
• Calculated fees can be replicated back into 麻豆原创 ERP Central Component or 麻豆原创 S/4HANA as condition records, such as for use in invoicing.

The 麻豆原创 solution can provide a number of powerful benefits for companies. By creating a single source of truth for packaging data, 麻豆原创 Responsible Design and Production helps eliminate repetitive, manual pre-reporting processes, such as data collection and cleansing. Furthermore, it can accurately calculate fees and taxes in line with the latest regulations, helping companies to reduce regulatory exposure. In addition to reporting to regulatory bodies, it can also enable reporting on various levels of granularity to non-governmental organizations, customers, and other brand-related communications. Finally, the solution can enable companies to analyze and keep track of their entire packaging portfolio, allowing them to track improvements and meet their sustainability commitments.

For more information and to learn how could work in your system environment, please contact circulareconomy@sap.com.

Katharina Schweitzer is a business process consultant at 麻豆原创.

Negotiations should conclude by the end of 2024. Now, over a year into the negotiation period, how are businesses preparing for the new legislation?

What Is the Plastic Problem?

The 鈥溾�� report on marine litter produced in 2021 by the United Nations Environment Program (UNEP) was unequivocal on the issue. Since the 1950s, we have generated around 6.9 billion tons of plastic and are adding to this at a rate of over 400 million tons per year.

Of all the plastic produced to date, only an estimated 14% has been incinerated and only 10% has been recycled. The remaining 76% has gone to landfills or ended up in the environment. Waste management systems can鈥檛 cope, which has led to the widespread contamination of our waterways, seas, and oceans by an estimated 8 million tons of plastic every year.

Plastic is a cocktail of fossil fuels and chemicals that breaks down slowly into microplastics, damaging marine environments from the shore to the deepest parts of the ocean. Apart from damaging marine life, they are a threat to people as they make their way into our food chain and drinking water.

Two countries, Spain and the UK, have already taken their first steps with the introduction of plastic taxes on non-recyclable packaging and packaging using less than 30% recycled content respectively. That said, at the time the report was written, there was no consistent policy framework to ensure global action to combat plastic pollution.

麻豆原创鈥檚 Role

The 麻豆原创 Circular Economy Solutions team, led by Stephen Jamieson, began work on this issue five years ago. The team is an active member of the , convened by the Ellen MacArthur Foundation and WWF, alongside some of the world鈥檚 biggest businesses and financial institutions.

麻豆原创鈥檚 response to the resolution was to create a digital solution that would enable customers to apply the framework to their business as well as provide feedback to policymakers on what is and isn鈥檛 working.

The Biggest Business Challenge to Eliminating Plastic Pollution

鈥淭he biggest challenge is how to decouple virgin plastic production from growth. We need to break that connection, but, to date, nobody has the solution,鈥� Jamieson says. 鈥溌槎乖粹�檚 strategy is data-driven. By helping our clients understand the implications of using virgin plastic and having information about alternative options at their fingertips, businesses can find a pathway to more sustainable growth.鈥�

A Data-Driven Solution

With customers at all levels of the value chain, 麻豆原创 set out to help its clients solve this problem using technology. Initial discussions with 30 or so organizations helped 麻豆原创 understand the complexities involved and led us to identify the need for a plastics data resource. 麻豆原创 built the 麻豆原创 Responsible Design and Production solution to help deliver the information companies require to identify strategies and solutions for eliminating plastics or moving to other solutions such as reuse schemes.

Data transparency is key to begin the process of decoupling growth from virgin plastics and to facilitate a transition to a more circular economy. The first step involves measurement, in effect creating a digital twin of the plastic item a company produces to allow them to fully understand the types and amounts of components involved in the product itself. Then we do the same for the primary, secondary, and tertiary packaging.

Once the measurement phase is complete, the software can be used to apply EPR (extended producer responsibility) policies and local plastic taxes to the different components. With this data applied, businesses can compare materials like-for-like by connecting with digital material libraries to find the best-fit alternatives.

Once a new solution has been identified, the by 麻豆原创 solution comes into play. With its blockchain-based approach, the recycled content of products can be verifiable, which helps prevent fraud and provide assurance to customers.

Is There an Appetite to Change Business Practices around Plastic?

The desire to find solutions has evolved dramatically in the last five years. The level of seniority of the people driving the discussions and their determination is palpable. Rather than seeing this issue as an unnecessary cost, business leaders are genuinely engaged in finding solutions for several reasons.

Firstly, they recognize that the plastic problem is inextricably linked to the climate crisis and biodiversity loss and understand that change is necessary if we鈥檙e to stay within planetary boundaries.

Secondly, there is a feeling that solving the plastic problem will open the door to the next phase of growth, profitability, and social equity. This is creating a high level of competition between key players in the market.

Thirdly, companies are concerned with their reputation. They want to be on the right side of history and retain the loyalty and trust of their customers. In addition, there is now an acceptance 鈥� which didn鈥檛 exist previously 鈥� that there is no real downside to pursuing a solution.

These drivers coupled with data-driven technology means businesses will be ready, some even in an advanced position, when the UN Treaty on Plastic Pollution comes into force.

For more information on how 麻豆原创 helps companies record, report, and act on their sustainability goals, visit听.

Heather Davies is a sustainability brand journalist.

This includes artificial intelligence (AI) embedded into the 麻豆原创 Digital Manufacturing solution, 3D product and operations viewer capabilities in manufacturing, service and maintenance processes, and adherence to sustainable packaging guidelines in the 麻豆原创 Responsible Design and Production solution.

• Advancements to Supply Chain Software from 麻豆原创 Enable Risk-Resilient and Sustainable Supply Chain Operations

In today’s world, constant disruption has become the new normal. Resilience is essential for businesses to withstand the forces of change. To achieve it, companies are looking to redesign their supply chain and manufacturing processes to consider cost, speed, profit, customer service and risk. According to a global , manufacturing executives are more likely than those in other functions to deploy intelligent technologies at scale to improve predictive analytics capabilities. However, only 36% of the 1,000 survey respondents said they have deployed predictive analytics in any part of their enterprise. To become more resilient, 麻豆原创 customers can employ AI embedded into 麻豆原创 Digital Manufacturing for AI-driven insights and AI-powered visual inspection processes. Customers can ensure that defective parts are discovered early and are addressed quickly, producing higher yield, ready-to-deliver quality materials. The lower product defect rates result in fewer service claims and improved asset health and maintenance.

鈥淚n recent years, it has become apparent that our global supply chains are vulnerable to disruption,鈥� said Thomas Saueressig, member of the Executive Board of 麻豆原创 SE responsible for 麻豆原创 Product Engineering. 鈥淭his has far-reaching consequences for the manufacturing industry as well. 麻豆原创 is a driving force in many industry-relevant initiatives, such as Catena-X and Manufacturing-X. Open data ecosystems, especially, have their place in the manufacturing industry. What is more, in many of the conversations I鈥檝e had with business leaders, and according to our latest Oxford Economics study, it becomes clear: They see the need of investing in Industry 4.0 principles and AI to increase supply chain resiliency, but many are still in the piloting stage. 麻豆原创 is in a unique position to accelerate the journey to resilient manufacturing because we can embed intelligent capabilities in enterprise software across all end-to-end-processes.鈥�

Smart 麻豆原创 Shop, a joint venture of and , reached a new milestone in automotive production by using AI embedded in 麻豆原创 Digital Manufacturing. Adapting a cloud-first development strategy, Smart 麻豆原创 Shop enables fully paperless production and a completely automated process for configuring production-line machinery for pressing automotive body parts. With the help of 麻豆原创 software and embedded AI, Smart 麻豆原创 Shop can assess the quality of materials in real time and adjust machine performance to improve downstream processes in logistics and operations.

鈥淲ith the help of 麻豆原创 solutions, we were very quickly able to build a system landscape at the Smart 麻豆原创 Shop based on the principles of Industry 4.0 and covering our requirements, such as self-optimizing production, end-to-end traceability and resource-saving production,鈥� said Hendrik Rothe, CEO, Smart 麻豆原创 Shop GmbH & Co. KG. 鈥淲ithin a few months, our core solutions 麻豆原创 S/4HANA Cloud, public edition as well as 麻豆原创 Digital Manufacturing were ready for use. Above all, the solutions enable us to process data in real time, to handle our entire production without paper, and ultimately to make all our processes transparent. Thus, we are very flexible and positioned for the future.鈥�

3D Capabilities to Strengthen Resiliency

To further help manufacturing become more resilient, the 3D product viewer capabilities of the 麻豆原创 Enterprise Product Development solution are now integrated into manufacturing, service and maintenance processes. In 麻豆原创 Digital Manufacturing, production operators now can view 3D product models in their dashboard and work environment to streamline complex assembly. In the 麻豆原创 Service and Asset Manager mobile app, field engineers can use 3D augmented reality views to accelerate asset maintenance, increase first time fix rates and reduce downtime.

Sustainability Initiatives Are Still at the Top of Business Agendas

According to the Oxford Economics study, 28% of supply chain executives include improving sustainability metrics as one of their top three strategic goals. To enable not only risk-resilient but also sustainable supply chain operations, 麻豆原创 Responsible Design and Production now supports company-specific sustainable package guidelines. Customers can monitor, measure and act to eliminate waste during packaging design.

麻豆原创 had extended its integration with business sustainability ratings provider EcoVadis SAS within the Trading Partner Profile (TPP). The integration enables suppliers to promote their sustainability performance and showcase their EcoVadis sustainability rating status across 麻豆原创 Business Network. This helps buyers identify opportunities to comply with emerging ESG due diligence and reporting legislation, as well as enabling them to select new suppliers who can help them reach ambitious corporate and value chain sustainability commitments.

These innovations are helping customers achieve better visibility across their supply chain operations and to ultimately increase resiliency.

Visit the to learn more about how 麻豆原创 software helps:

You will also find out how .

Visit the 麻豆原创 News Center. Follow 麻豆原创 on Twitter at .

HANNOVER MESSE is the world’s leading trade fair for industry. About 4,000 companies from the mechanical engineering, electrical and digital industries as well as the energy sector will showcase technologies and solutions for a connected and climate-neutral industry. Visit the 麻豆原创 booth in Hall 15, E17 from April 17鈥�21, 2023.

About the Oxford Economics Study: On behalf of 麻豆原创, Oxford Economics conducted a global supply chain survey of 1,000 supply chain executives and professionals in 15 industries across the United States, Canada, Brazil, Germany, France, Spain, UK, Italy, China and Japan. One third of the sample was made up of companies with US$500M to $999M in annual revenue, with one third having between $1B and $10B and one third generating over $10B in revenue. Survey respondents participated in the research using a computer-assisted telephonic interviewing methodology (CATI). Interviews were carried out in January and February of 2023.

About 麻豆原创

麻豆原创鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 麻豆原创 customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 麻豆原创 helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 麻豆原创 helps the world run better and improve people鈥檚 lives. For more information, visit .

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Despite its usefulness and in alignment with the aims of organizations such as the and the , governments, businesses, and civil society听are cooperating on ways to curb the waste and pollution it causes.

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A First Step听听听听

As part of international efforts to fight climate change, for example, the European Union (EU) launched the , an action plan for transforming the economy from a linear one to a circular one that designs out waste and pollution. One key measure in tackling plastic pollution is the plastics tax applied to single-use plastic, plastic packaging, and microplastics.

Rather than a regional tax, however, the EU has mandated a national contribution from each of the 27 member states based on the amount of non-recycled plastic packaging waste it generates. The tax design varies greatly state by state, with some focusing on packaging in general and others on single use only. Some have different taxes for domestic or foreign-sourced plastic products. In short, member states are allowed to implement the tax in their own way, with their own rules and regulations.

The result is a an extremely fragmented landscape. Dealing with it requires the right strategy, tools, and expertise, especially in the areas of compliance and international supply chains. On January 1, for example, the Special Tax on non-reusable plastic containers took effect in Spain, imposing 鈧�0.45 per kilo of non-reusable plastic.

鈥淭his new tax presents a number of challenges for companies, not only because they will have to pay the designated tax, but because they will have to address this new process within the organization,鈥� says Maria Monasor, 麻豆原创 sustainability principal EMEA South and a spokesperson for 麻豆原创 Spain. 鈥淥ne of the greatest issues is the amount of information that needs to be collected and analyzed, all coming from different sources and, in many cases, from different countries, hampering collaboration.鈥�

Last April, the government in the UK introduced the first (UK PPT) to be implemented globally. The UK tax is 拢200 per metric ton of plastic packaging either produced听in or听imported into the UK that does not听contain听at least 30% recycled plastic.听Like their European counterparts, UK companies face two key challenges: getting the data to prepare their tax return and processing it to make tax decisions.

A Practical Solution

As has been the case with many challenges in recent times, technology has become a fundamental element in helping companies resolve their issues. is a cloud solution created specifically to facilitate the design of products for a circular economy and to help address the entire process involved in the new taxes.

Besides working to simplify manual reporting processes through automation, 麻豆原创 Responsible Design and Production allows companies to access data on logistics and materials, including details on the composition of packaging. 鈥淲ith this tool, companies will be able to calculate and submit reports in relation to the Spanish tax on plastics and reduce the risks of non-compliance,鈥� says Monasor.

The Ultimate Goal

In the long run, 麻豆原创 Responsible Design and Production can enable organizations to increase their sustainability KPI measurement and management capabilities as well as gain better visibility into material flows across all business processes. Improved traceability helps increase the accuracy of plastic tax payments and mitigates compliance risks. The solution can also implement changes to regulations and taxes and optimize the choice of materials for packaging to help reduce those taxes and boost circularity, which is the ultimate goal of the tax.

Despite all efforts to date, about 90% of the plastic currently produced worldwide is not recycled. 鈥淭he EU plastic tax and the UK PPT are harbingers of the worldwide movement reinforcing the polluter pays principle alongside extended producer responsibility,鈥� says Stephen Jamieson, global head of Circular Economy Solutions at 麻豆原创.

By disincentivizing the use of unsustainable materials, governments are incentivizing the market value of recyclable plastic, fostering a sustainable circular economy that will have global repercussions. Estimates indicated that plastic tax contributions would provide the EU with approximately 鈧�7 billion of additional revenue each year.

These efforts are only the first steps on a long, arduous journey. While most nations agree on the necessity to curb plastic, many are hesitant about the supply chain disruption it can bring to their economies. The ones that are embarking on the journey are pioneers whose efforts will provide valuable lessons for the ones that follow. The is to facilitate the process of transforming from a linear to a circular economy and to enable cooperation between nations, organizations, and their partners, no matter how fragmented the landscape. 麻豆原创 Responsible Design and Production fills that role by enabling companies to meet their sustainability commitments, comply with legislation, and develop more circular processes.

This collective action must take many forms. While the UN Security Council is discussing lifting export restrictions, financing, bolstering agricultural production, and investing in resilient food systems, business also has a role to play. The private sector鈥檚 role may be less immediate than that of governments and global councils, but it still has the potential for important long-term sustainability impacts. That role lies in reducing food waste and enabling circularity.

Currently, . If we transform our global economy to one where waste and pollution are mostly eliminated and products and materials are reused, we can . Reducing the consumption of animal products and cutting food waste are key drivers here. And a number of 麻豆原创 customers are leading the way.

is an international cooperative headquartered in Denmark that is owned by almost 13,000 farmers in seven countries. The company set its sights on reducing waste with a solution to optimize its supply chain planning by better sensing and reacting to changes in demand. Arla implemented the 麻豆原创 Integrated Business Planning for Supply Chain solution and its demand sensing component. That helped improve short-term planning based on daily forecasts that are aligned with real demand patterns.

, a large Norwegian company distributing bakery, ice cream ingredients, and plant-based products, needed a cross-company planning platform to scale operations and meet future needs. That鈥檚 why the company chose 麻豆原创 Integrated Business Planning for Supply Chain and 麻豆原创 Supply Chain Control Tower. By combining supply chain solutions in the cross-company planning platform, Orkla was able to increase automation across business functions. The company achieved 14% greater forecasting accuracy and 27% less waste related to expired products on shelves. That adds up to a lot less food waste!

, one of the world鈥檚 leading crop protection companies, helps farmers feed a growing global population. The company needed a solution to better predict how things like weather, conflict, and other variables will impact millions of growers worldwide. 麻豆原创 Integrated Business Planning helps Syngenta ensure that the right amount of product — for example, seeds and fertilizer — gets to where farmers need it. With 麻豆原创 solutions, the company was able to improve demand planning, forecast future demand, and manufacture the right amount of product.

LIVEKINDLY was founded in 2020 as a collective with the mission to make plant-based living the new norm. The collective includes various brands that each needed to implement collective-wide business processes, get real-time data, and enable continued growth. That鈥檚 why it recently decided to migrate all of LIVEKINDLY鈥檚 brands to 麻豆原创 S/4HANA Cloud. It was a key step in the vision to transform the entire food supply chain — from seeding to feeding — and lead the way in a new global food economy.

Finally, one of the world鈥檚 largest food and beverage companies is working with us to make 100% of its packaging recyclable or reusable by 2025. Using our latest circularity solution, 麻豆原创 Responsible Design and Production, this business is able to intelligently manage its packaging obligations. 麻豆原创 Responsible Design and Production helps the business accurately calculate its extended producer responsibility (EPR) fees and plastic taxes worldwide in real time to enable smart environmental and economic decisions. This is significant, given the fact that . So, while this doesn鈥檛 have a direct impact on food insecurity, it does have the potential to significantly reduce the greenhouse gas emissions associated with food packaging.

麻豆原创 and its vast network of customers in the food and beverage industry may not have the most immediate role to play in today鈥檚 dramatic food insecurity challenges. But let鈥檚 not underestimate the impacts businesses can have.

I am proud to be part of an engineering team that is building products to help the world鈥檚 innovators accelerate solutions to less food waste and greater circularity.

Thomas Saueressig is a member of the Executive Board of 麻豆原创 SE, 麻豆原创 Product Engineering.

These metrics must be embedded within a company鈥檚 core operations and services; traditional annual reports are no longer sufficient. Stakeholders want to understand how a company addresses areas such as climate action, with transparency on transition and adaptation plans based on the carbon footprint of its operations. They also want to understand progress on circular economy objectives by monitoring the reuse and recycling of materials. They want to track and advance people sustainability initiatives by gathering key performance indicators (KPIs) in areas such as diversity and inclusion.

麻豆原创鈥檚 product innovations work across the enterprise to deliver on these goals.

Holistic Sustainability Management with 麻豆原创 Cloud for Sustainable Enterprises

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, brings together a comprehensive portfolio of solutions to holistically manage sustainability performance. Embedding sustainable business data into processes and networks is one of the five actions business can take toward a sustainable future.

麻豆原创 Cloud for Sustainable Enterprises includes the and solutions. It also covers existing products like the application and the . The solution provides an overview of sustainability impacts and performance against green objectives.

We continue to extend the capabilities of 麻豆原创 Cloud for Sustainable Enterprises. As many companies are accelerating their action for decarbonization, our new capabilities in this area are important.

Driving Carbon Data Transparency Is More Important Than Ever

Accounting for carbon emissions across the organization and its supply chain is a foundational step toward climate action. Businesses are actively looking to reduce their carbon footprints, which requires addressing emissions outside company walls. These emissions 鈥� Scope 3 emissions 鈥� include everything from goods purchased to business travel to packaging and transportation of raw materials. Scope 3 emissions make up a significant portion of overall emissions for our customers. To derive actionable insights to reduce organizational carbon footprint, it is crucial to measure Scope 3 emissions both at a corporate level and at a product level.

are on average 11.4 times higher than operational emissions. To reduce these emissions, it is important to engage across the sectoral value chain, with both suppliers and end customers, especially for customer-facing sectors like retail and consumer product goods (CPG), which have long upstream value chains. Companies can address significantly larger emission volumes by driving deeper engagement throughout their supply chains.

Earlier this year, called on registrants to report on not just their Scope 1 and Scope 2 emissions but also their Scope 3 emissions. This is not the first time companies have faced this request. Previously, asked companies to disclose the targets they used to assess and manage relevant climate-related risks and opportunities. IFRS takes this approach further with , which focus on transition planning, climate resilience, reporting on Scope 1-2-3 emissions, and disclosure of sustainability-related financial information as a part of its general purpose financial reporting.

Enabling 麻豆原创 Customers to Exchange Carbon Data across Value Chains

To develop and execute an effective decarbonization plan, companies need to receive and process high-quality product-level data on carbon emissions from suppliers and provide high-quality product footprint information to their customers.

However, with most supply chains spanning several industry sectors and consisting of multiple, heterogeneous networks and software components, taking a standardized approach to data sharing is critical. To collect meaningful emissions information, it is important that all parties use the same methodology and common standards for calculating and auditing the carbon footprint of a product.

Therefore, 麻豆原创 Product Footprint Management implements an API specification developed as part of . 麻豆原创 customers can now take informed sourcing and product-development decisions, invest in targeted decarbonization activities, make more accurate disclosures, measure and track decarbonization progress, and adhere to legislative requirements around environmental transparency.

We intend to use 麻豆原创 Product Footprint Management as part of 麻豆原创 networks 鈥� for example, in the Catena-X Automotive Network (Catena-X) 鈥� to enable a standard-based, secure, and cross-company-wide data exchange throughout the value chain.

In addition, there is the option to use the GreenToken by 麻豆原创 solution for multi-tier visibility across the networks. The combination of 麻豆原创 Product Footprint Management, 麻豆原创 Responsible Design and Production, and GreenToken forms a potent decarbonization value proposition for industries such as consumer goods, as 麻豆原创 can demonstrably address material traceability, packaging waste, and supplier-specific carbon data transparency throughout the value chain for both recycled content and land-use change.

New functionality created through our co-development partnership with BearingPoint is already embedded into 麻豆原创 Product Footprint Management and helps customers identify carbon reduction potential. Customers can thus determine the carbon footprint of a single product based on both direct and indirect emissions sources and upstream activities, building on existing functionality of carbon footprint measurement of purchased goods with tracking emissions resulting from transportation of those goods. Both these greenhouse gas (GHG) emission categories combined significantly contribute to a customer鈥檚 upstream and downstream environmental impact.

Integrating and Embedding Sustainable Data across the Intelligent Enterprise, Scaling Carbon Impact

Through open APIs, 麻豆原创 customers can easily exchange data with their enterprise applications, feeding it into 麻豆原创 Cloud for Sustainable Enterprises, and then provide the calculated sustainability data back into both 麻豆原创 and third-party applications.

With the newly introduced sustainability integration components for 麻豆原创 S/4HANA, customers can benefit from preconfigured functionality enabling reuse of sustainability data across processes supported by 麻豆原创 S/4HANA, such as record-to-report, lead-to-cash, source-to-pay, and plan-to-fulfill workflows. The component allows a bidirectional flow of information between 麻豆原创 Cloud for Sustainable Enterprises and 麻豆原创 S/4HANA in real time.

Examples include:

• In 麻豆原创 S/4HANA Sourcing and Procurement, customers can make sustainable purchase decisions based on a material鈥檚 carbon footprint displayed in purchase requisition, which is then is fed back into 麻豆原创 Product Footprint Management, keeping sustainability reporting updated.
• In听麻豆原创 Integrated Business Planning, the supply chain planner can access a comprehensive overview of GHG emissions based on the supply plan for the next 12 months. Planners can dive deeper into the details and try to resolve critical situations and alerts. .
• In 麻豆原创 Logistics Business Network, the material traceability option helps customers gain further insights into sustainability figures of products and share carbon footprint data on the batch level with suppliers, customers, and end consumers of the products. This feature is available with the 2021 release of 麻豆原创 S/4HANA. .
• In plant maintenance, customers can receive automatic updates from 麻豆原创 Environment, Health, and Safety Management, triggering corrective action if GHG emissions are exceeded. .
• In 麻豆原创 Enterprise Product Development with 麻豆原创 Responsible Design and Production, customers will be able to reduce packaging and other material waste by design while simulating for a lower carbon footprint. Packaging is typically a significant source of Scope 3 carbon emissions in consumer goods value chains.

We continue to innovate and aim to help customers track emissions data from 鈥渃radle to gate鈥� 鈥� from the delivery of raw materials to the moment finished products leave the production line, offering intelligent technologies to calculate, exchange, and track carbon footprint information in a trusted way.

Achieving this carbon transparency will pave the way to becoming an intelligent, sustainable enterprise.

Learn More

Sharing sustainability data across your enterprise can help you run more sustainably; . Join the to stay up-to-date with news and announcements about our growing portfolio of sustainability solutions. In addition, check out past and current .

Gunther Rothermel is head of 麻豆原创 S/4HANA Sustainability Management at 麻豆原创.
Anita Varshney is global vice president of Strategy for 麻豆原创 S/4HANA Sustainability at 麻豆原创.

鈥淎s the first plastic tax to be implemented globally, the UK PPT is a harbinger of the worldwide movement reinforcing the polluter pays principle alongside extended producer responsibility,鈥� said Stephen Jamieson, global head of circular economy solutions at 麻豆原创. 鈥淏y disincentivizing the use of unsustainable materials, the government is at the same time incentivizing the market value of recyclable plastic, fostering a sustainable circular economy that will have global repercussions.鈥�

Maybe that鈥檚 why researchers predicted less performative virtue signaling among B2C marketers and more bold actions that advance environmental, social, and corporate governance (ESG) goals. researchers found that the number of CEOs who list environmental sustainability as a top business priority rose 303% since 2021. By next year, analysts said that 60% of the G2000 companies would have environmental sustainability parameters firmly embedded in their business KPIs.

Gleaning Insights from Circular Supply Chains

Levying taxes as a purely financial instrument is a time-honored tradition. The difference with the UK PPT and similar legislation expected in Europe, including Spain and Italy, is that the plastic tax isn鈥檛 concerned with a particular material at a single moment in time. Companies are responsible for where that material came from and ends up long after it leaves the factory floor.

鈥淲here did product materials originate? Where and how were they manufactured and distributed? What happens to that product as it鈥檚 sold across the supply chain and after the end customer has used it?鈥� said Jamieson. 鈥淭hese are the kinds of critical questions people need to answer when considering tax exposure. It requires insight across the supply chain.鈥�

Circular Economy Transforms Business Behavior

As these regulations take effect, you can safely bet that sitting right beside tax specialists in finance are leaders throughout the company including product design, procurement, operations, supply chain management, and sustainability. Working together is the only way they can understand the company鈥檚 liability and how to reduce exposure.

鈥淲e鈥檙e already seeing behavioral shifts towards far more enterprise-wide collaboration,鈥� said Jamieson. 鈥淚nitially, organizations will demonstrate transparency in their calculations to comply with PPT. How organizations set themselves up to be able to digest and consume this type of tax implication is going to be a key success criteria going forward.鈥�

Products with Designed-In Sustainability

While the plastic tax on existing products is top of mind for business leaders, they are retooling design, production, and delivery plans for the immediate and long-term future. For example, to calculate the tax liability on a single product, teams company-wide have to factor in every plastic component of its packaging and the impact of its recyclability across the entire internal and external supply chain. They also have to anticipate expanding regulations.

鈥淲e developed to help companies connect information across their ERP systems with regulatory and voluntary sustainability mandates,鈥� said Jamieson. 鈥淭hey can monitor their performance and plan ahead to design-in packaging and production strategies from factory to consumer and the community at-large, meeting evolving country-specific mandates.鈥�

Notably, many conversations Jamieson has are with decision-makers in companies not necessarily based in the UK but selling into that country. In addition to the food and beverage sector, impacted organizations span a cross section of the producer economy from automotive and high tech to fashion and other consumer goods.

Growth of Circular Economy

The United Nations has issued a decree for a , calling on public and private sector leaders to rethink how we design, produce, and use plastic products. Not surprisingly, sustainable behavioral change is a major component of this mandate. Jamieson saw opportunities for leading-edge organizations to meet evolving consumer demands around sustainability, shoring up the circular economy.

鈥淢aybe at some point companies will be required to state a product鈥檚 plastic tax liability on the customer鈥檚 invoice,鈥� he said. 鈥淭his level of transparency about what they’re paying for would increase consumer consciousness of sustainable products, boosting business practices over time.鈥�

According to analysts, 40% of organizations will mandate responsible, sustainable sourcing policies and implement audit and accountability solutions requiring proof of compliance to build trust among consumers and stakeholders by next year. Given the worldwide movement to build the circular economy, it could happen much faster than that.

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Businesses and organizations need to act together, leveraging collective networks, influence, and expertise, in order to bring real transformation and generate positive outcomes.

麻豆原创 has become a partner in the Ellen MacArthur Foundation鈥檚 network to deliver circular economy solutions led by regenerative business with customers, non-governmental organizations (NGOs), and partners.

The partnership formalizes the organizations鈥� joint commitment to accelerating the transition to a circular economy based on three key principles: eliminate waste and pollution, circulate products and materials, and regenerate nature through innovative business models and systems-level change.

Andrew Morlet, CEO at the Ellen MacArthur Foundation, said: 鈥淲e are pleased to welcome 麻豆原创 as a partner. Collaboration across all sectors and industries is critical in order to shift the system and accelerate the global transition to a circular economy 鈥� an economy designed to eliminate waste and pollution, circulate products and materials, and regenerate nature. Technology has a crucial enabling role to play, and we welcome 麻豆原创鈥檚 leadership in this space.鈥�

The partnership will focus on three key pillars:

• Powering circular design
• Actioning extended producer responsibility
• Enabling regenerative business via digital solutions

One of the key elements of a circular economy is design, including product design, policy design, and systems-level design. According to the Foundation, there are over 160 million designers in the world; connecting with them is crucial to solving the world鈥檚 waste problem. Technology will play a key role in enabling that, equipping them with insights and data to make better material choices, as well as creating better transparency around ecosystems.

With only nine percent of the 400 million tons of plastic produced every year , plastics is an issue where the urgent need to act is being recognized at the highest levels of global policy-making. United Nations (UN) member states to adopt a legally binding multilateral treaty on plastic pollution, the text of which explicitly underlines the importance of promoting the . executive director of the UN Environment Programme, the agreement is the “most important international multilateral environmental deal since [the] Paris [climate accord].”

Without collective and meaningful action, ocean plastic from 11 million tons in 2016 to 29 million tons in 2040, wreaking havoc on fragile marine ecosystems. This dire situation is a clarion call to act on extended producer responsibility (EPR), a policy framework that shifts financial responsibility from governments onto product producers for the management, treatment, and disposal of consumer products. This creates incentives for manufacturers to develop products that are more recyclable and less resource-intensive, in effect preventing waste at the source.

麻豆原创 has supported calls for EPR regulations, as have that recognize such approaches can create competitive markets for recycled plastics and create a level playing field for companies that rely on plastic products.

Technology is undoubtedly needed to make EPR actionable in business. The partnership will see 麻豆原创 bring its insights and innovation around digital solutions to enable the circular economy for a regenerative future, based on a non-extractive and replenishing principle, where businesses seek to give back more to society and the planet than what they take.

麻豆原创 launched its first major circular economy solution at COP26: , which provides the foundation for the company鈥檚 regenerative business mission and establishes a consistent measurement of material use globally. It helps companies gain better visibility of material flows through their business processes, manage EPR regulations worldwide, prepare for upcoming plastic taxes, and optimize material choices.

To further deliver transparency across the supply chain, climate solution enables businesses to calculate product footprints across the entire product life cycle, providing actionable insights into the environmental impact of their products at scale and allowing companies to move toward lower carbon emissions.

Holistic sustainability performance management solution enables companies to prioritize sustainable business results by providing insights for executive-level decision-making to manage and report financial and non-financial impacts of business processes.

Finally, 麻豆原创 has recently launched a new cloud offering to help companies holistically measure, manage, and optimize their sustainability performance: .

With more than 50 years of managing resources across enterprise functions, integrating data into business processes, and networking businesses and industries around the world, 麻豆原创 is uniquely positioned to build solutions to help companies run sustainably.

As Stephen Jamieson, global head of Circular Economy Solutions at 麻豆原创, puts it, 鈥淭his partnership is based on our mutual ambition to deliver a circular economy led by regenerative business. We aim to achieve this by working collaboratively to solve critical design challenges with innovative solutions, and focusing on extended producer responsibility, the single most important policy intervention that will deliver the level playing field that鈥檚 required for a circular economy. Together we鈥檙e committed to innovating and delivering the solutions that make that policy intervention simple, consumable, and actionable.鈥�

• BCG and 麻豆原创 will provide transparency on sustainability 鈥渁t the push of a button鈥� and deliver impact based on a combination of strategy, technology, and business model change, with BCG and 麻豆原创 solutions that can be ready to use within weeks.
• BCG and 麻豆原创 want to help accelerate companies in their journey to zero waste and zero emissions. BCG and 麻豆原创 can enable companies to achieve emissions reductions of up to 40%.*
• Early-adopter companies can realize up to 15 years of competitive advantage, generating more than a 10% market premium on shares in many industries.**

The joint transformation offering will allow companies to identify the business value in sustainability, setting the right climate ambitions and powering an actionable sustainability road map.

The 麻豆原创 and BCG partnership will help companies tackle the generational challenge of climate change and respond to increasing investor pressure and ever stricter regulations. Research from analyst firm IDC shows that sustainability has become a top business priority.鈥�

鈥淎ccording to one of IDC鈥檚 recent end-user surveys, three-quarters of executives involved in their company鈥檚 sustainability initiatives believe that environmental, social and governance (ESG) factors are 鈥榲ery important鈥� for the enterprise value of their organization,鈥� said Bjoern Stengel, the global sustainability research lead at IDC. 鈥淏CG and 麻豆原创 have both been at the forefront of operationalizing sustainable transformation with their clients, and this partnership will further help IT buyers use sustainability-focused technology strategically to achieve their goals.鈥�

麻豆原创 and BCG offer market-leading solutions in three areas that are of particular relevance in a sustainability transformation — strategy, business model change, and technology innovation — to complement their respective efforts in the sustainability space.

To help companies accelerate on their net-zero-emissions journey with an up to 40% emissions reduction potential,* BCG and 麻豆原创 will enable companies to integrate leading-edge carbon-tracking measurement and intelligence into their core business operations and strategic decision-making. Combining two market-leading solutions in BCG鈥檚 CO2 AI and the 麻豆原创 Product Footprint Management solution, the partnership targets Scopes 1, 2, and 3 via BCG鈥檚 CO2 AI as well as an integration into core 麻豆原创 software through 麻豆原创 Product Footprint Management.

To help achieve zero waste in supply chains, 麻豆原创 and BCG will assess the circularity opportunity in a company鈥檚 portfolio across its entire supply chain and product portfolio. Based on BCG鈥檚 CIRCelligence and the 麻豆原创 Responsible Design and Production solution, this offering will enable customers to accelerate the zero-waste journey.

The sustainability transformation efforts of customers will be guided by a Holistic Steering and Reporting solution backed by the 麻豆原创 Sustainability Control Tower solution and BCG鈥檚 Compliance Target Operating Model to help ensure that the transformation is driven with a focus on business value and that companies comply with all regulatory requirements.

鈥淪ustainable businesses will create positive impacts for future generations, but no organization can achieve its sustainability goals alone,鈥� said Christian Klein, CEO and Member of the Executive Board of 麻豆原创 SE. 鈥淏eing sustainable requires coordination across the value chain, and this is where 麻豆原创鈥檚 partnership with BCG plays a key role. Bringing together BCG鈥檚 expertise, tools, and services with 麻豆原创鈥檚 technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.鈥�

This new partnership is designed to effect enterprise-wide change, spanning complex supply chains and creating business value from sustainability.

鈥淚 firmly believe that an organization’s environmental impact will soon be as important to its key stakeholders as its financial performance. Early movers in sustainability can experience up to 15 years of competitive advantage and a 10% market premium.** This is an enormous opportunity for companies around the world. This partnership with 麻豆原创 will allow our clients to transform at an unprecedented pace,鈥� added Christoph Schweizer, CEO, BCG.

The Sustainability Transformation offering from BCG and 麻豆原创 is deployed at lighthouse customers right now, with an expected broader launch in the third quarter of 2022.

Visit the 麻豆原创 News Center. Follow 麻豆原创 on Twitter at .

About Boston Consulting Group

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders鈥攅mpowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

About 麻豆原创

麻豆原创鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 麻豆原创 customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 麻豆原创 helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 麻豆原创 helps the world run better and improve people鈥檚 lives. For more information, visit .

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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.听 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 2021 Annual Report on Form 20-F.
漏 2022 麻豆原创 SE. All rights reserved.
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.

*Karalee Close, Norbert Faure, and Rich Hutchinson, 鈥� ,鈥� Boston Consulting Group, October 14, 2021.
**Ar茅, Berthaud, Fuisz-Kehrbach, Haloui, Hutchinson, Loureiro, Perzanowski, Rhodes, and Semmel, 鈥淪ustainability as Advantage,鈥� 2022.
鈥�ESG Business Services Survey, IDC, 2021.

In response, governments, investors, and citizens are putting pressure on companies to recognize and act on these issues. These systemic threats harbor enormous opportunity if we work together.

Today, 麻豆原创 and global strategic consultancy BCG announced a partnership to help companies transform their business models, become sustainable enterprises, and gain the data transparency they need to embed sustainability into their core business.

The 麻豆原创 and BCG partnership combines 麻豆原创鈥檚 strength as the leading enterprise software company with BCG鈥檚 proven expertise in advising clients on their sustainability transformation strategies.

Close to 90% of BCG鈥檚 businesses run 麻豆原创 and they can benefit from the partnership that enables companies to plan, execute, measure, and report on sustainability initiatives across their value chains. Adding to the strength of this partnership, 麻豆原创 continues to bring new capabilities and embed sustainability into existing solutions to address climate action, circular economy, governance, and environmental, social, and governance (ESG) reporting.

Three unique features define this partnership. First, it is an integrated offering that goes from outlining a sustainable strategy to adopting technology solutions with holistic impact. Companies can address key sustainability drivers with scalable technology, and business leaders can help ensure a successful digital transformation. Second, the 麻豆原创 and BCG partnership brings two powerful global ecosystems together to accelerate transformation with the urgency required to meet ambitious targets. Third, 麻豆原创 and BCG are combining their intellectual properties and bringing capabilities and services together around targets related to zero emissions, zero waste, and ESG reporting. These new offerings will be incorporated into 麻豆原创 Cloud for Sustainable Enterprises

Zero Emissions

The recently adopted a proposal for a new Carbon Border Adjustment Mechanism (CBAM), which will apply the concept of carbon pricing to all imports by 2026. The 麻豆原创 and BCG collaboration allows companies to analyze their carbon footprint based on 麻豆原创 data and determine which initiatives can best reduce emissions. BCG鈥檚 digital solution CO2 AI supports the overall sustainability transformation offering by combining BCG鈥檚 insights and 麻豆原创 data from the solution.

麻豆原创 Product Footprint Management offers businesses a blueprint to integrate data into businesses processes. Likewise, the solution enables mutual customers to manage life-cycle assessment data to calculate footprints across the entire product inventory. Both capabilities ease the complexity of carbon tracking and accounting across scope 1, 2, and 3.听 The benefits range from complying with ESG requirements from investors and regulators, and potentially .

Zero Waste

Today, tons of material resources are used each year — of which, less than 9% is recycled or reused.听 Zero waste is becoming a strategic imperative among business leaders, driven by stakeholder pressures and emerging regulations

Legislation is being implemented across the globe to address this challenge: have pledged to significantly reduce their waste by 2030. 听Key policies developed by the EU encourage immediate action on packaging and plastics such as the EU Plastics Strategy.听 In addition, there is increasing focus on packaging regulations, including (EPR) schemes and upcoming plastic taxes based on a “polluter pays” principle. As one of the most widely supported policy mechanisms, these regulations act as a key driver for reducing consumption and increasing the circular use of materials. China, Canada, the U.S., and India are among the countries that have committed to develop solutions that can .

Current business models fail to consider the legislative and geographic complexity of the circular economic model — companies pay fees per volume of plastic, plastic and waste management must report data, and governments use this data to define policies and fees. and BCG鈥檚 CIRCelligence can address some of the gaps, including the lack of dynamic tracking and insights for EPR fees, as well as assess tax implications per market and oversee the manual data collection or estimation of materials volume by market or product.

Together, 麻豆原创 and BCG can provide customers with the data transparency their companies require.

ESG Reporting

With the increasing number of ESG reporting requirements, more companies pursue goals of zero emissions and zero waste. The 麻豆原创 and BCG partnership aims to combine two existing solutions — BCG鈥檚 ESG Risk and Compliance Framework and — in order to allow customers to take actions on embedding risks and compliance procedures into their organization processes based on real-time financial and non-financial ESG data.

麻豆原创 CEO Christian Klein and BCG CEO Christoph Schweizer see sustainability as a unique opportunity to join forces not only for the good of their companies, but also to make a significant contribution to solving the global sustainability challenge.

鈥淏eing sustainable requires coordination across the value chain, and this is where 麻豆原创鈥檚 partnership with BCG plays a key role,” Klein said. 鈥淏ringing together BCG鈥檚 expertise, tools, and services with 麻豆原创鈥檚 technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.鈥�

The 麻豆原创 and BCG sustainability transformation offering is in pilot phase, with an expected broader launch in the third quarter of 2022.

To learn more, visit

In this exclusive conversation, Zauke talks about the powerful localized process revolution happening behind every digital-first business.

Q: How does the localization of enterprise software applications factor into some of the biggest business challenges companies face in 2022?

A: What鈥檚 exciting is how digitalization 鈥� driven by local government regulations and transformation agendas, rising expectations for sustainability, and technology innovation 鈥� is transforming business models.

Post-pandemic, companies are continuing to source materials from suppliers in different locations to minimize supply chain disruptions. They鈥檙e exploring local production of important products like semi-conductor chips, computer processors, and the ingredients of livesaving medicines. They鈥檙e expanding to the cloud with subscription-based services and growing partner ecosystems.

At the same time, organizations need to prove compliance with increasing and global electronic document exchange regulations such as e-invoicing and tax reporting, as well as local regulations for documenting travel expenses, time management, payroll, and procurement spend. In certain countries, tax reporting timeframes are speeding up from quarterly or yearly to monthly, weekly, or even real time. In addition, some of our customers have to report on worker learning activities. Global workforce management regulations are also changing regarding data protection and privacy. Meantime, local sustainability reporting mandates are on the rise. Companies need to show how they are minimizing their greenhouse gas footprint across product life cycles and operations.

Can you share some examples of how 麻豆原创 has helped companies meet these challenges?

With local versions of 麻豆原创 solutions, we help global companies gain business value from their investments and meet country-specific mandates. For example, the world’s largest of printing ink and pigments sped up accounts payable by 30% and reduced invoice processing cycle time by 10% using . A facilities management service provider in the Middle East with over 8,800 employees reduced payroll processing times by 98% to meet local mandates and gain business efficiencies. What previously took three days to complete is now accomplished in just 45 minutes.

With the rise of cloud services like subscription- and consumption-based business models, many organizations have turned to . One global media company is using the solution as part of its digital transformation. After replacing legacy systems in North America, APAC, LATAM, and EMEA, it improved revenue recognition and cash reconciliation processes along with the customer experience.

To go global with local versions in 67 countries, our localization services helped support a global cleaning solution provider鈥檚 HR transformation with 麻豆原创 SuccessFactors solutions, which will serve 14,500 employees worldwide.

Sustainability is a top priority for enterprises worldwide, which is why 麻豆原创 has developed a comprehensive portfolio of solutions designed to help companies achieve zero emissions, zero waste, and zero inequality. One example is that helps our customers monitor and embed circular economy practices into business processes to meet local sustainability regulations. This solution uses 麻豆原创 Document Reporting and Compliance to meet local extended producer responsibility (EPR) obligations, tax declarations, and other corporate commitments.

How can companies stay on top of highly changeable and increasingly stringent local mandates and regulations?

Business leaders need to comply with a raft of increasing local regulatory mandates by country. That鈥檚 why, as part of all 麻豆原创 solutions, global and local versions, including 麻豆原创 S/4HANA, 麻豆原创 SuccessFactors solutions, 麻豆原创 Ariba solutions, and 麻豆原创 Concur solutions, we provide updates as regulations change.

For resilience in this fast-changing environment, organizations are reinventing how they approach business practice standards. This is especially the case for high-growth organizations that need to scale quickly as they expand worldwide. Leaders have realized they need an integrated view of business processes company-wide 鈥� including finance, sustainability, human experience, supply chain, expenses, and procurement 鈥� so they can apply them appropriately across multiple locations for safe and secure operations.

How do localization services from 麻豆原创 Enterprise Adoption align with 麻豆原创鈥檚 vision for intelligent, networked, sustainable enterprises?

Customers rely on 麻豆原创 to digitalize their business processes, supporting their expansion to new countries and market opportunities while enabling the success of their business locally and globally, their employees, and sustainability commitments that benefit society at-large. Localized, integrated business processes are central to our vision to help every company become an intelligent, networked, sustainable enterprise. The ability to comply with local regulations and standards is fundamental to resilient, high-performing, and sustainable business in the new normal.

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How can businesses take climate action? How can they turn linear processes into circular resources and product flows? How can they ensure socially responsible value chains? And ultimately, how can they integrate economic, environmental, and social performance into strategic decision-making?

These questions are top of mind for executives. In 2021, sustainability .

At 麻豆原创, we deliver answers to these questions through our products. Our customers can benefit from solutions that help them achieve zero emissions, zero waste, zero inequality, as well as holistic steering and reporting of their sustainability efforts.

Last year, we launched three new solutions: , , and . All are embedded 麻豆原创 S/4HANA cloud-native applications that are delivered in a modular way and built on top of 麻豆原创 Business Technology Platform.

What is more, we are embedding sustainability across 麻豆原创’s entire solution portfolio. A recent example is the inclusion of product footprints in 麻豆原创 Integrated Business Planning, so customers can monitor the greenhouse gas emissions from their production plants. Another example is the integration of 麻豆原创 Sustainability Control Tower with 麻豆原创 SuccessFactors solutions, enabling customers to obtain insights into how their organization is faring on crucial aspects such as diversity and inclusion.

Sustainable Business Strategies, Sustainable Enterprises

For the last 50 years, our innovative solutions have helped our customers transform their business processes and stay ahead in rapidly changing business environments. And we will continue to take and enable organizations of any size and in any industry to take a transformative approach to sustainability as well.

Quick fixes that do not get to the root cause of problems won鈥檛 make businesses more sustainable in the long run. Fragmented sustainability strategies won鈥檛 help. Sustainable business strategies will. That is why we support companies in integrating sustainability into the heart of their business processes.

Our approach pays off. Today, the most sustainable companies run our software. According to our analysis of S&P Trucost Limited data and , 麻豆原创 customers with high digital maturity — those adopting 麻豆原创鈥檚 latest technologies — on average have 75% better environmental, social, and governance (ESG) scores compared to their industry peers. They also produce 24% less CO2 emissions than the market average.

To further facilitate the sustainability transformation for our customers, we recently launched a new offering. 麻豆原创 Cloud for Sustainable Enterprises is a flexible bundle of sustainability-specific applications. It allows businesses to adopt our solutions based on the current stage of their sustainability transformation. Depending on where they stand, they can implement holistic management or start with specific areas of sustainability performance.

Chasing Zero, Together

The past year has been all about delivering the tools that help businesses transition into sustainable enterprises. So, what鈥檚 next? 2022 will be the year to implement these tools globally in close collaboration with our customers and partners.

Ultimately, the transition to a more sustainable global economy is not something one company can achieve on its own. In today鈥檚 interconnected world, we must rely on our ecosystem to ensure sustainability across the entire value chain. Let鈥檚 make 2022 the year we transition toward a more sustainable world, together.

Thomas Saueressig is a member of the Executive Board of 麻豆原创 SE leading 麻豆原创 Product Engineering.

Stakeholders are coming to the same conclusions that we have long been convinced of. Even before announcing our Climate 21 initiative two years ago, we have been seen as front-runners in providing environmental transparency. We have long understood the importance of measuring sustainability progress holistically and connecting financial and pre-financial data. We鈥檝e been doing that since 2012. That鈥檚 when we merged our sustainability and annual reports into an integrated report.

We know that the days of fragmented reporting must end. And now, many more businesses are seeing how fundamental the issues of transparency on environmental, social, and governance (ESG) impacts are. But many businesses still struggle with a multitude of reporting frameworks and lack of appropriate data. This is what stands in the way of consistent investor-focused disclosures. Our planet cannot afford this. Increasingly, consumers want to know the provenance of their products. They want to be assured that they are making choices based on data they can trust.

The sustainability issues we face today are different from all other previous threats and opportunities — in scope, scale, and ultimately in the consequences. Measuring, reporting, and achieving the sustainable business goals we set is imperative to a .

Businesses Want to Make Sustainable Decisions; They Need the Right Intelligence to Do It

The vast majority of business leaders I connect with want to lead their businesses sustainably. They care about planetary and societal impacts; in fact, their customers, investors, and employees demand it. At 麻豆原创, our aspiration goes far beyond enabling businesses to achieve efficiency. We work with customers to reinvent their business processes to achieve sustainable growth. That means enabling businesses to use data in agile ways, across all sustainability dimensions. We provide early alerts that allow companies to be responsive and we give customers the full picture they need to move proactively on their ESG issues.

Sustainability data is “pre-financial,” not “non-financial.” That means the search for sustainability levers must go beyond the financials to bring together all sustainability data dimensions, including emissions, material flows, and social impacts. We know this and it is why we have made this possible today. For example, with , companies get visibility into their carbon footprint data throughout a product鈥檚 value chain, including for material sourcing and production. And that鈥檚 the insight businesses need to make proactive, sustainable supply chain decisions.

Scale Data Across Business Networks to Mitigate Planetary Impacts

Individual businesses can only do so much. Emissions do not recognize company boundaries and therefore we must help companies reach beyond their own four walls. We know we must connect our customers into a network of intelligent, sustainable enterprises.

Intelligent cross-enterprise scenarios that enable data sharing across value chains will create impact at scale. Business networks enable companies to continuously re-evaluate and re-engage with each other, creating additional value for their customers and our planet.

From Voluntary to Mandatory, ESG Standards Are Evolving

ESG reporting is maturing; there is no doubt about that. Climate-related disclosures are evolving from voluntary to mandatory. Around 100 countries have explicitly expressed support for starting negotiations for a global agreement on plastics in 2022. The European Union is already developing a social taxonomy based on global social and human rights norms. 麻豆原创 also recently released an asking the European Union to act on ESG disclosure standards. We want to encourage a global baseline set of standards. We fully support corporate transparency that meets the needs of all stakeholders and improves connectivity between sustainability and financial reporting.

And, once again, we at 麻豆原创 have stepped up to provide the solutions that companies need to execute on these evolving standards and connect their environmental, social, and financial values, holistically. Today, I鈥檓 proud to say that we just released , a solution that enables customers to go further on their ESG integration and data transparency journey. Our solution enables non-financial — or, as I prefer to call them, “pre-financial” — disclosures focused on four aspects: people, planet, prosperity, and principles of governance. This includes measurements around greenhouse gas emissions, pay equality, and board diversity. It enables comparisons between companies, regardless of industry or region.

Our two previously released sustainability products, and , feed precisely those new data dimensions, which businesses have so far been lacking, into 麻豆原创 Sustainability Control Tower.

Our new solution has the World Economic Forum鈥檚 Stakeholder Capitalism Metrics as its foundation. These metrics are based on existing standards to make ESG disclosures more comparable and consistent. They were developed within the International Business Council, a community of over 120 global CEOs who seek to improve the ways companies measure and demonstrate their contributions toward creating a more sustainable relationship with our planet.

And of course, our partners are integral here. Deloitte, EY, and PwC are a few examples of the partners that bring immense knowledge, not only about the framework, but also about the ESG transformations of our customers. Strategic partners like BCG enable our customers to take a holistic perspective toward establishing ESG and climate compliance.

Time Is of the Essence

Businesses that set out a 10-year agenda for dealing with their sustainability challenges are moving much too slowly. We all need to move quickly to enable the shift to new business models. Time is of the essence.

At 麻豆原创, we know how important it is that corporate sustainability efforts be measured, reported, steered, and communicated effectively. And I am personally very proud of the leadership we continue to demonstrate here.

Thomas Saueressig is a member of the Executive Board of 麻豆原创 SE leading 麻豆原创 Product Engineering.

The rating comes only weeks after 麻豆原创 was named the software industry leader in the for the 15th consecutive year and 麻豆原创 as an environmental, social and governance front-runner.

鈥淲e remain firmly committed to leading by example in our efforts to run our business sustainably and report our progress,鈥� said Luka Mucic, CFO and member of the Executive Board of 麻豆原创 SE, responsible for 麻豆原创’s sustainability efforts. 鈥淓qually important is that we share our knowledge with our customers and enable them to achieve their own climate goals with our growing portfolio of sustainability solutions.鈥�

麻豆原创 offers a range of enterprise software applications and technologies to help companies operate more sustainably.

The has been available since September. It enables organizations to combat climate change by capturing the environmental footprint of products across the value chain.

Last month, 麻豆原创 added , a solution that helps companies gain better visibility into material flows through their business processes including tracking and complying with rapidly changing regulations, especially those concerning product packaging and plastics.

Soon, the will be available. The solution will integrate top-line and bottom-line management with an added dimension: a 鈥済reen line鈥� for integrated environmental and social sustainability insights, decision-making and reporting.

To learn more, check out听.

Visit the . Follow 麻豆原创 on Twitter at .

Media Contact:
Harro ten Wolde, +49 151 5517 6501, harro.ten.wolde@sap.com, CET
麻豆原创 麻豆原创 Room; press@sap.com

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渇orecast,鈥� 鈥渋ntend,鈥� 鈥渕ay,鈥� 鈥減lan,鈥� 鈥減roject,鈥� 鈥減redict,鈥� 鈥渟hould鈥� and 鈥渨ill鈥� and similar expressions as they relate to 麻豆原创 are intended to identify such forward-looking statements. 麻豆原创 undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect 麻豆原创’s future financial results are discussed more fully in 麻豆原创’s filings with the U.S. Securities and Exchange Commission (“SEC”), including 麻豆原创’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
漏 2021 麻豆原创 SE. All rights reserved.
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.

CDP was founded at 20 years ago in response to a warning by that if climate change remained unchecked, the world would warm by six degrees Celsius within the century. As the number of climate-related catastrophes mounted over the years, CDP kept urging companies and governments to report on their emissions and take measurable action.

Above and Beyond

Today, the world鈥檚 economy looks to of environmental reporting with the richest and most comprehensive data set on corporate and city action. By scoring companies and other organizations from D to A on climate change, forests, and water security, CDP helps them evolve from disclosing sustainability metrics to taking measurable actions that lead to environmental leadership.

In light of the recent climate conference COP26, it is apparent more than ever that the private sector has a critical role in driving change and leading by example. 麻豆原创 enforced its climate action commitment by moving its carbon neutral target up by two years to 2023. This week, 麻豆原创 received a spot on the prestigious , which announces over 300 companies leading the way to a more sustainable future.

. More than 13,000 companies reported on their environmental impact through CDP, despite the continuing challenges of the pandemic. This was 37% more than 2020 and 135% higher than when governments signed the Paris Agreement on climate change in 2015. Between them, disclosing companies in 2021 accounted for over 64% of global market capitalization, including 96% of the FTSE 100, over 80% of the S&P 500, and more than 1,500 companies in China.

麻豆原创鈥檚 CDP A rating comes only weeks after 麻豆原创 was named the software industry leader in the Dow Jones Sustainability Indices (DJSI) for the 15th consecutive year, 麻豆原创 as an environmental, social, and governance (ESG) front-runner.

Setting the Pace

Achieving top scores in the CDP and DJSI rankings sets 麻豆原创 apart as exemplar when it comes to disclosure. More importantly, 麻豆原创 solutions for sustainability help companies measure and monitor their emissions, making it an enabler for companies that want to do due diligence on their own performance.

鈥淭he DJSI and CDP awards recognize Fortune 500 companies that are taking concrete steps to tackle climate change challenges. It is good to receive ongoing independent recognition that 麻豆原创 is on the right track,鈥� said Daniel Schmid, chief sustainability officer at 麻豆原创, responsible for 麻豆原创鈥檚 sustainability efforts. 鈥淚t鈥檚 equally important to embed sustainability in the business strategy, so that it impacts all aspects of the business. That鈥檚 how we can reduce the negative impact on our environment and create regenerative business.鈥�

麻豆原创 customers benefit from a range of products to help them to take climate action or to accelerate their participation in the circular, wasteless economy.

The enables organizations to combat climate change by capturing the environmental footprint of products across the value chain so they can build sustainability into the fabric of how they do business. Last month, 麻豆原创 added to its portfolio. The solution helps companies gain better visibility of material flows through their processes including tracking and complying with rapidly changing regulations, especially those concerning product packaging and plastics.

And finally, helps customers meet their ESG performance targets. This solution enables integration of top-line and bottom-line management with an added dimension 鈥� a green line for integrated environmental and social sustainability insights and decision-making.

The importance of disclosure cannot be underestimated. Business is still business, but in today鈥檚 challenging world, the purpose is not to just turn a profit; it鈥檚 to remain competitive, relevant, and sustainable while turning a profit. While the , sustainability is already material to all companies because the fortunes of business are inevitably linked to those of the planet.

found that the more companies believe sustainability is material to their businesses, meaning it is likely to affect their financial condition and should be publicly disclosed, the more competitive and profitable they are likely to be.

The good news is that after 20 years of running the world鈥檚 environmental disclosure system for companies, cities, and regions, CDP finally . With companies disclosing and reporting more than ever before, it鈥檚 becoming easier to accelerate change, especially with the right tools and technology at hand.

By adopting a fundamentally different approach in the way we create and design products, services, and solutions we can, for instance, take finite resources to design infinite, regenerative systems that can work sustainably in the long run. In doing so, we can apply circular design as a shorthand for the practice of applying principles at the design stage of everything and enable the way design changes and redefines our relationship with the world.

Today, we face a devastating pandemic, new levels of global warming, extreme ecological degradation, and continuous setbacks in our work toward global goals for more equitable, inclusive, and sustainable development. Simply put, the state of the planet is broken, where every tenth of a degree of warming matters and those who have done the least to cause the problem are suffering the most.

Making peace with nature is the defining task of the 21st century. With recently concluded , nations, along with businesses, negotiators, and citizens came together to address the burning issue of climate change.

While the focus at COP26 was mostly on climate action, to ensure progress on our sustainability ambitions, we need a systemic approach that looks at the complete big picture. finds that our transition to renewable energy 鈥渃an only address 55% of emissions. The remaining 45% comes from producing the cars, clothes, food, and other products we use every day.鈥�

In acknowledging that ambitious goals require ambitious action, : to take decisive action and provide a mandate to business to drive solutions to achieve our shared global goals.

As a part of our sustainability journey, we believe we can design and provide highly innovative and viable solutions that will not just repair the damage to the earth humans have caused so far, but actually prevent more harm. Eighty percent of a product鈥檚 environmental impact is baked in at the time of its design, proving that the only way we can create a successful circular economy is with a focus on how our products are designed, sourced, made, and delivered.

I previously discussed the sustainability portfolio in 麻豆原创 S/4HANA Cloud and how 麻豆原创 is addressing four dimensions, including climate action, circular economy, holistic steering and reporting, and social responsibility. 麻豆原创 has announced the availability of — an embedded, cloud-native 麻豆原创 S/4HANA solution — to help customers with the sustainable design and responsible management of materials and products so that they can accelerate their transition to a more circular economy.

With 麻豆原创 Responsible Design and Production, businesses can embed circularity principles into core business processes, helping to eliminate waste, circulate products and materials, and regenerate natural systems to unlock new value. The new solution gives companies better visibility into how materials flow through their processes, including tracking and complying with rapidly changing regulations for things like packaging and plastics.

They can also keep pace with increasingly strict regulations like extended producer responsibility standards, which can put significant financial and physical responsibility on the company about how they manage the disposal of their products. These standards differ across regions and countries. For example, a shampoo brand manager has visibility into the full product life cycle, including extended producer responsibility obligations and the plastic taxes of different markets. These costs can be very expensive. This visibility helps the brand manager make design changes to eliminate waste and decisions on how to reduce the costs of re-use and recycling systems.

Technology solutions like are a fundamental step in enabling businesses to become intelligent, sustainable enterprises and drive global impact at scale. But business should not commit only to doing less harm, but to doing more good. Business has the power to not only reduce and reuse, but also to regenerate. We need to go from seeking to reduce our ecological footprint and “chasing zero,” to becoming net- or nature-positive, building not just a circular economy, but a regenerative economy.

The regenerative economy implies a circular approach beyond the narrow view of products to one that includes the social, natural, and built environment. It is an approach similar to natural ecosystems that find synergies and balance. The regenerative business is intelligent, using innovative technology to gather insight and apply it to scale change. It measures impact, holistically and in real time.

Cementing Partnerships to Drive Corporate Sustainability and Circularity

Accenture shares 麻豆原创鈥檚 vision of zero emissions, zero waste, and zero inequality. To achieve a sustainable world, organizations must transform into intelligent enterprises, and intelligent enterprises must form a network of intelligent enterprises.

In addition to the accepted top line and bottom line, a new 鈥済reen line鈥� covering the environmental, social, and governance aspects needs to be established as another dimension of success across business processes and along value chains. This way, organizations achieve transparency and influence that span beyond company borders.

The recently published shows that many global industry leaders are already demonstrating behaviors that are critical to achieving a competitive advantage from sustainability. Accenture and 麻豆原创 are ready to help organizations accelerate in their journeys to become sustainable intelligent enterprises.

According to Peter Lacy, chief responsibility officer and global sustainability services lead at Accenture, 鈥淲ith the circular economy we have an unprecedented opportunity to transform some of the challenges we face into opportunities, creating economic value and sustainability impact for business and society. In fact, our research shows the value at stake is massive: $4.5 trillion of upside, even at conservative estimates. We are proud to partner with 麻豆原创 to seize the circular advantage, as we believe business can spur innovation, create new markets, and set our current global direction toward one that is more sustainable and resilient.鈥�

Just as the whole is greater than the sum of its parts, 麻豆原创 and Accenture recently welcomed two new cohorts for the external startup accelerator 麻豆原创.iO Foundries North America. Thirteen startups were selected for the cohort among hundreds of applicants by a jury of 麻豆原创 and Accenture experts, partners, and customers. They are building innovative solutions to drive sustainability for consumer and retail companies across the value chain in areas including reusable packaging, responsible and ethical supply chain, and emphasizing a circular economy.

With the launch of 麻豆原创 Responsible Design and Production, 麻豆原创 aims to address two critical challenges: managing complex extended producer responsibility regulations and plastic taxes, which vary from country to country, and enabling every organization to reduce their use of plastic, thereby contributing to sustainable and profitable growth through less plastic and less exposure to regulatory costs.

Because 麻豆原创 Responsible Design and Production directly leverages data from core enterprise resource planning (ERP) processes, it enables determining material compositions and calculating extended producer responsibility fees across numerous product lines as well as adhering to a growing number of different extended producer responsibility declaration schemes.

To date, we have four clients testing the beta version of the new solution, released at the end of August, and they will be closely involved in assessing new releases. We are co-innovating with many of the world鈥檚 largest consumer products organizations in the solution development to support long-term industry success and delivery of the zero waste ambition.

To this end, our joint teams are ready to deliver. We are helping our clients to define their road maps, identify priorities, and accelerate their journeys through the selection and implementation of relevant 麻豆原创 S/4HANA Cloud capabilities and new 麻豆原创 solutions. Our sustainability management portfolio is enabled by a modular 麻豆原创 S/4HANA Cloud, helping us to drive a positive planetary impact in a holistic manner while incrementally expanding it along further aspects, including water, energy, land use, and social dimensions.

When sustainability is embedded in its DNA, building software that helps companies measure, account, and take the right action in dynamic and heterogeneous environments is the final step in managing environmental impact.

As Sir David Attenborough rightly said, “If working apart we are a force powerful to destabilize our planet, surely working together we are powerful enough to save it,” before concluding, “In my lifetime I’ve witnessed a terrible decline. In yours, you could and should witness a wonderful recovery.”

Jan Gilg is president of 麻豆原创 S/4HANA.

Building on the 2015 Paris Agreement and following the IPCC鈥檚听听report that human activity is the unequivocal cause of rapid changes to the climate, COP26 recognized this sense of urgency.听Two weeks of negotiations among more than 120 world leaders resulted in the听, which gives a strong signal to countries and businesses to be more ambitious and focus on the action needed to protect the planet from further irreversible damage.

The Glasgow Climate Pact mandates countries to do more and strengthen their 2030 targets next year. The countries agreed on the rules governing international carbon markets, mobilizing financial flows to developing countries, phasing down coal and phasing out inefficient fossil fuel subsidies, and reducing methane emissions. It also recognizes the importance of international partnerships and includes language on development and deployment of technologies and technology transfer. There were pledges by groups of countries to end deforestation and move finance to clean energy.

麻豆原创鈥檚 Chief Sustainability Officer Daniel Schmid, along with a small team representing 麻豆原创鈥檚 leadership in the topics of climate action, circular economy, consumer industries, and government affairs, explored how the event worked, understanding the science and engaging with businesses, policy makers, and startups to emphasize 麻豆原创鈥檚 role and impact. Given the context of COVID-19, planning was chaotic and most other businesses reported a rush to finalize plans in the final few days.

At COP26, we engaged in as many forums as possible across business, media, and government and were inspired by the many CEOs, CSOs, policy makers, activists, NGOs, partners, and startups. In the middle of all this, our circular economy team also launched a game-changing software solution 鈥� 麻豆原创 Responsible Design and Production.

We听constantly heard the phrase听鈥榊ou can鈥檛 manage what you can鈥檛 measure.鈥� In almost every forum, from every stakeholder group, this simple idea was repeated and re-emphasized. It was explicitly linked to the strengthening role of data and digital solutions for climate action.

The Glasgow summit also saw significant business presence, something lacking in previous climate meetings. It emphasized our view that 麻豆原创 is a critical stakeholder in the operating system of business and that coming to grips with climate in industry is first and foremost a question of getting transparency and alignment with the business processes that drive the problem. In terms of how the business world configures itself to a regenerative and net-positive future 鈥� another part of the COP26 business leaders鈥� lexicon 鈥� 麻豆原创 holds the key to the door. The question is how do we empower each and every stakeholder group to unlock the collaboration and transformation needed across business, finance, policy makers, and NGOs.

Following nearly two weeks and countless interactions, it鈥檚 clear that 麻豆原创鈥檚 role is to help these key stakeholder groups with:

• Fostering the transparency needed on material impact across the full system
• Connecting businesses across complex business networks and ecosystems
• Engaging the Global South equitably in solutions and supporting the social dimension of climate change
• Offering the insights needed to support the right allocation of capital to support initiatives that deliver regenerative business outcomes
• Navigating the complex policy environment and climate legislations that need to be delivered post-COP26

On reflection, our role as 麻豆原创 should above all support the goals of COP26 by positively advocating and inspiring action based on what business technology can do.

Ultimately, climate conferences like COP26 have听a simple purpose 鈥� to keep the world within the 1.5 degrees Celsius average temperature increase from pre-industrialized levels听and to mitigate the impacts of climate change. COP26 has moved the world closer and kept the possibility within reach.

The pact and the pledges mean nothing unless they鈥檙e delivered at the national level. Governments must build policies to give a clear direction to businesses across sectors to reach a net-zero economy, backed by substantial investments and engagement with businesses to drive multi-stakeholder initiatives. COP26 triggers consistent engagement over the next decade and beyond; it鈥檚 not a one-time effort.

Our role is to help make this possibility a reality and help drive the action needed across all听markets and听industries.

Currently only a fraction of our plastic waste 鈥� by the World Economic Forum and the Ellen MacArthur Foundation 鈥� is collected and recycled after use. The rest ends up in landfills or in the oceans and waterways, contributing to global warming.

At the same time, new regulations and policies are being established, such as extended producer responsibility (EPR) regulations. These regulations help ensure that producers are responsible for the recycling, reuse, or disposal of their products. Additionally, impending plastic taxes being proposed in Europe that apply to plastic packaging produced or imported that do not contain a specified amount of recyclable content.

This is great news for the planet, but the new scenario creates a market-by-market challenge, especially for large producers, as it is very difficult to manage product regulations across different geographies. In fact, managing thousands of products and materials across hundreds of regulatory systems in multiple regions is one of the greatest complexity challenges facing global brands in the years ahead.

According to new regulations, companies are required not just to design products and packaging to eliminate waste and pollution. They also must keep materials in use at its highest value for the longest possible period of time. The bottom line is that companies will need to base future decisions on sustainability and recyclability.听This change is driven by consumer demand, the availability of technology, and the new regulatory environment.

Manufacturers embarking on transformational journeys are often challenged by complex supply chains, heavy assets, and legacy technology. They must also transition to new business models that require a circular approach to product design from the outset and new approaches like reintroducing the product or its materials back into the manufacturing process at the end of the life cycle.

The solution responds to the drivers behind the change and helps businesses tackle these challenges.

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Stephen Jamieson, global lead for Circular Economy Solutions at 麻豆原创, says the new solution will help enterprises tackle this complexity as they move away from a take-make-waste linear economy to a circular one designed to eliminate waste, circulate materials, and regenerate natural systems.

鈥淭he solution is designed to help enterprises comply with regulations,鈥� he explains. 鈥淚t鈥檚 currently focused on packaging and plastics, but it will be further developed as different material categories such as batteries or textiles come into scope for regulatory intervention.鈥�

The complexity begins with the roughly 400 different regulatory schemes that are currently in place or planned around the world.

麻豆原创 Responsible Design and Production is, first and foremost, about tackling the complexity of packaging regulations and new taxation regimes. This helps brands to accurately assess and calculate those implications, use these insights to inform how products and materials are designed, and optimize these choices. This collaboration is crucial, together with non-governmental organizations (NGOs) and partners, in accelerating the transition to a circular economy.

Investing for the Long Term

Extended producer responsibility won鈥檛 come cheap. Jamieson cites the example of the UK, where one study per year for post-consumer packaging waste. The UK scheme incentivizes producers to design packaging that is easy to recycle and helps ensure that they pay the full net cost to manage this packaging once it becomes waste, in line with the polluter-pays principle behind the EPR concept.

That is the cost in the UK alone, which represents three percent of the world. 鈥淒o the math, and you鈥檒l see the global impact,鈥� says Jamieson. 鈥淪ome of the larger manufacturers produce thousands of tons of materials each year. In these markets, you’re talking about very meaningful numbers. And don鈥檛 forget the plastic taxes, which tally up to 拢250 per ton in the UK and 鈧�400 a ton in the European Union.”

That may sound like a high price to pay, but the benefits outweigh the cost. Visionary enterprises like Unilever find that short-term sustainability costs can lead to long-term savings. According to the company, it has .

In the long run, the EPR approach encourages innovation in product and packaging design. Reuse and recycling consume less energy than manufacturing from new materials. As the costs of collection, processing, and recycling are shifted from taxpayers to the producers of the materials, enterprises will find ways to cover the EPR costs through savings in other areas.

How It Works

麻豆原创 Responsible Design and Production helps businesses manage EPR regulations and prepare for upcoming plastic taxes, a benefit for companies that want to get a head start on meeting their responsibilities

As an example, the solution is designed to enable EPR experts at large global consumer products companies to accurately calculate the packaging fees and meet packaging regulations for a particular market. These experts must understand what declarations are necessary then ensure that they are reporting accurately to those bodies. They must assess the data, understand any exceptions and challenges to the data quality, and ensure everything is codified properly according to regulations. The solution then enables EPR experts to draft an assessment of the policies and fees at play, and finally, to run a formal declaration that will be used as the basis of the company鈥檚 payment to the relevant authorities.

An overarching analytics layer allows category managers to see the projection and the implications of different regimes on their product portfolios. This offers a more strategic view for people like chief sustainability officers to see progress toward commitments, such as the elimination of problematic or unnecessary single-use packaging.

Jamieson concludes that 麻豆原创 Responsible Design and Production is essentially an extension of enterprise resource planning (ERP) — something 麻豆原创 has been leading for 50 years — with an additional element. 鈥淣ow, we鈥檙e not only planning the optimization of resources; we鈥檙e optimizing them to be regenerative.鈥�

Natasha Pergl is lead for Global Circular Economy at 麻豆原创.

This is the latest offering in a growing portfolio of sustainability-specific software applications that help businesses increase their measurement and data management capabilities.

As sustainable business regulations, such as plastic taxes, are put in place, the enables brands to accelerate their transition to circular-economy business practices. The new solution helps companies gain better visibility of material flows through their processes including tracking and complying with rapidly changing regulations, especially those concerning product packaging and plastics. As businesses increasingly develop sustainable products, managing materials and regulatory data is becoming one of the most complex challenges across the consumer industry today.

鈥淭he circular economy is based on three principles, driven by design 鈥� eliminate waste and pollution, circulate products and materials, and regenerate nature,鈥� said Andrew Morlet, CEO, . 鈥淒igital solutions play an important role in the transition to a circular economy. They enable businesses to embed circular practices across their operations, from designing products to reduce waste from the outset, to tracking the lifecycle of the materials they use.鈥�

With 麻豆原创鈥檚 new solution, businesses can embed circularity principles into core business processes, helping eliminate waste and unlock new value by designing products to be sustainable from inception. For example, a shampoo brand manager has visibility into the full product lifecycle, including their extended producer responsibility (EPR) obligations and the plastic taxes of different markets. This visibility helps the brand manager make design changes to reduce waste and decisions on how to lower the costs of the downstream reuse and recycling systems.

鈥淓very year, we use almost twice the amount of resources than the planet can regenerate,鈥� said Scott Russell, member of the Executive Board of 麻豆原创 SE and head of Customer Success, 鈥淏usiness can play a crucial role in keeping value in our systems for longer through smart, responsible product design that reuses resources rather than disposing of them. There is inherent complexity in designing products that eliminate waste and use responsible materials, but 麻豆原创 Responsible Design and Production tackles that complexity and offers a 鈥榞old-standard鈥� solution to our customers, helping to deliver circular products and achieve a regenerative economy.鈥�

麻豆原创 Responsible Design and Production, a cloud-native solution co-developed with on , provides tailored intelligence that enables businesses to keep pace with EPR regulations and plastic taxes, embed circularity principles into core business processes and optimize design for sustainable business. Learn more by reading the blog 鈥�.鈥�

麻豆原创 has led by example as a sustainable business for more than a decade. In addition to being named the software industry leader in the听Dow Jones Sustainability Indices听(DJSI) for 14 consecutive years, the and 麻豆原创鈥檚 membership in the Value Balancing Alliance illustrate our commitment to integrating economic, environmental and social performance to drive business decisions.

To learn more, check out 麻豆原创 at COP26听and .

Visit the 麻豆原创 News Center and follow 麻豆原创 on Twitter at听.

About 麻豆原创

麻豆原创鈥檚 strategy is to help every business run as a sustainable intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 麻豆原创 customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into sustainable intelligent enterprises. 麻豆原创 helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 麻豆原创 helps the world run better and improve people鈥檚 lives. For more information, visit .

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Climate change is widespread, rapid, and intensifying, with some trends now irreversible, according to the recent .

The science is clear: unless immediate, fast, and large-scale action is taken to reduce emissions, the average global temperature is likely to reach, or cross, the 1.5掳 C warming threshold within 20 years. The alarming results are already with us, ranging from droughts and heat waves to wildfires and devastating flooding worldwide.

While much hope is focused on a green recovery, the window of opportunity is closing fast. The latest report from the International Energy Agency (IEA) predicts that energy-related , an increase of nearly 5% year-over-year and the second-largest in history, taking us back to pre-COVID-19 peak levels.

The urgency to dramatically change course and accelerate decarbonization has never been higher. But only when businesses are moving beyond their siloed approaches, commitments, and climate pledges to fully embrace sustainability and embed these ambitions in an integrated way will we be able to drive the systemic change needed.

It is a journey toward embedding sustainability across everything we do.

Moving Away From Add-On to Core

Companies need to avoid thinking of sustainability as only an add-on to their strategies and operations. They need to integrate it across the business. Rather than defining a separate sustainability strategy, it is crucial to .

A first step toward 麻豆原创 realizing this was linking sustainability to our purpose of helping the world run better and improving people鈥檚 lives. The objective: create positive economic, environmental, and social impact within with special focus on climate action, circular economy, social responsibility, and holistic steering and reporting.

This is reflected not only in the updated 麻豆原创 vision to 鈥渞einvent how the world runs as a network of intelligent, sustainable enterprises,鈥� but also in the executive compensation that rewards Executive Board members for customer loyalty, employee commitment, and 麻豆原创鈥檚 carbon impact, along with financial performance.

Enabling Climate Action Through Technology

The IPCC report has once again highlighted that harnessing the innovation power of enterprises has to be at the center of fighting climate change. For 麻豆原创, this means using digitalization to contribute to the United Nations Sustainable Development Goals (UN SDGs), .

In collaboration with customers and partners, 麻豆原创 is working to optimize material, financial, and energy flows throughout end-to-end business processes in order to address planetary and social challenges. For example, the company鈥檚 multi-year Climate 21 program helps build analytical and transactional capabilities into enterprise applications that can help 麻豆原创 customers understand and minimize the greenhouse gas footprint of their products and operations along their value chains.

During the in April, sustainability management by 麻豆原创 was introduced, providing an expanded portfolio of sustainability-specific solutions, including 麻豆原创 Product Footprint Management, which has been available since September 2021. There is more to come with the releases of the and 麻豆原创 Sustainability Control Tower solutions in the next months, as will be shown during

Foundries locations Berlin and Munich are fostering startup innovation by setting up the Sustainable Future program together with Accenture. The equity-free program is designed to propel digital transformation in four target areas: carbon tracking and trading, resource efficiency, climate risk tracking and mitigation, and circular economy.

Setting Ambitious Targets

In addition to harnessing innovation, the climate emergency calls for bold targets for decarbonization. By mid-2021, countries representing around 65% of global carbon dioxide emissions and more than 70% of the world economy have made ambitious commitments to carbon neutrality. The U.S, the European Union, Japan, the Republic of Korea, and others — in total 126 countries — have pledged carbon neutrality by 2050; China says it will do so before 2060.

The private sector also needs to step up. More than 1,900 companies, including 麻豆原创 in 2017, have set emissions reduction targets grounded in climate science through the .

In 2019, 麻豆原创 raised its commitment and adopted a 1.5掳 C science-based emissions reduction targets aligned with a net-zero future. However, the journey started much earlier; back in 2009, 麻豆原创 set the first goal of reducing its global carbon emissions to the year-2000 level by 2020.鈥�This target was met at the end of 2017, even though 麻豆原创 grew more than fourfold over the period.

The next milestone is 2023, when 麻豆原创 aims to be carbon neutral in its own operations鈥�– two years earlier than previously envisaged. 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, paper consumption, and external data centers (co-locations and hyperscalers).

Monitoring and Reporting

It is essential to measure and monitor progress on the path toward achieving these targets. For example, 麻豆原创 has increasingly embraced holistic steering and reporting because connecting financial and pre-financial performance leads to better management decisions and business success.

麻豆原创鈥檚 sustainability and annual reports were merged into the in 2012. Since then, both material and immaterial value creation have been at the center of the company鈥檚 reporting and have been placed on an equal footing. Besides key financial information, environmental progress, workforce information, and social investments have been made transparent. In addition, an internal sustainability dashboard allows employees to explore the key sustainability key performance indicators (KPIs), such as women in management and carbon emissions by their country, location, and line of business, with updates every quarter.

Our reporting shows that in 2020, 麻豆原创 was able to overachieve by 43% on its target for net carbon emissions in 2020, generating 135 kilotons instead of the anticipated 238 kilotons. This trend continued in the first half of 2021, during which 麻豆原创鈥檚 carbon emissions totaled 45 kilotons compared to 90 kilotons in the first half of 2020 (-37%).

The low emissions level is a consequence of the ongoing COVID-19 pandemic, as well as the introduction of Pledge to Flex, which enables a more flexible mix of remote and onsite work. 麻豆原创 believes this trend will continue and has just announced in its that it has lowered its 2021 carbon emissions outlook from 145 kilotons to a range of 90-110 kilotons.

Taking Action: Measures of Implementation

To become carbon neutral in its own operations by 2023, 麻豆原创 is following a three-pillar approach: avoid, reduce, compensate.

• Avoid: Whenever possible, 麻豆原创 aims to avoid the creation of greenhouse gases. This is a top priority, supported by, for example, using virtual telecommunication instead of business flights.
• Reduce: If greenhouse gas emissions cannot be avoided, 麻豆原创 aims to drive efficiency and reduce all types of emissions; for example, building efficiency, data center operations, carpooling and car sharing, and e-mobility.
• Compensate: 麻豆原创 has extended its compensation models for travel. For business flights, it has introduced an internal carbon price to offset related carbon emissions. If greenhouse gas emissions cannot be eliminated altogether, 麻豆原创 aims to reduce them through innovations in the areas of building efficiency, data center operations, carpooling, and car sharing, as well as e-mobility. For example, 麻豆原创 has powered its own data centers and facilities with 100% renewable electricity since 2014, implemented an environmental management system with ISO 14001 certification in more than 30 countries and ISO 50001 at headquarters, adopting green IT initiatives in order to foster sustainable IT equipment usage and promoting tools such as as a default search engine.

In 2020, 麻豆原创 implemented additional energy and climate measures within its operations, ranging from opening a new office with energy-efficient design in Australia and implementing more efficient data center technology in Germany to introducing a bike fleet at 麻豆原创 Hungary as well as a flexible mobility budget in Germany and installation of photovoltaic systems in Austria.

For emissions that cannot yet be reduced or avoided, 麻豆原创 thirdly invests in high-quality carbon credits. For example, 麻豆原创 has been a long-term investor of the Livelihoods Carbon Funds (LCF) since 2012. 麻豆原创 has also donated funds to restore ecosystems and improve people鈥檚 lives. In support of the UN Decade on Ecosystem Restoration 2021-2030, 麻豆原创 recently joined the 1t.org corporate alliance, which aims to conserve, restore, and grow trees worldwide, with a pledge to plant 21 million trees by the end of 2025.

I am proud that 麻豆原创鈥檚 efforts to combat climate change and to strengthen its transparent reporting are externally recognized. The non-profit organization CDP included 麻豆原创 on its , thereby granting us the top rating for leading in environmental transparency and action.

Partnering

麻豆原创 recognizes that strong partnerships are an invaluable asset in tackling climate change. This is why we became a founding member of the European Green Digital Coalition and joined the World Economic Forum Stakeholder Capitalism Coalition and CEO Climate Leaders as well as the World Business Council for Sustainable Development (WBCSD), complementing our previous engagements with the UN Global Compact, the We Mean Business Coalition, the Value Balancing Alliance, the Ellen MacArthur Foundation, and many more.

In addition, we signed the calling for greater climate ambition and we launched Chasing Zero, a new initiative that will feature executive thought leadership, best practices, and insights into a sustainability-related transformation of 麻豆原创 and its global ecosystem to achieve zero emissions, zero waste, and zero inequality. The transition to a circular economy remains central to our vision for a world of zero waste and plastic free oceans by 2030. Consequently, we support stronger circular economy policies, such as the Worldwide Fund for Nature鈥檚 OneSource Coalition and the Ellen MacArthur Foundation鈥檚 Extended Producer Responsibility endorsement.

Daniel Schmid is chief sustainability officer of 麻豆原创.