How SAP is focusing on procurement to cut carbon emissions

SAP on how it is using procurement partnerships with key suppliers to cut its Scope 3 carbon emissions

Writing in a recent blog, SAP’s Chief Procurement Officer Nikolaus Kirner is detailing the practical steps the company is taking to make their own supply chain more sustainable.

The business is taking action by eliminating single use plastics, decreasing carbon emissions, enforcing human rights and closely collaborating with their supplier network.  

Multi-phased supply chain engagement programme

The German software giant is aiming to establish a multi-phased supply chain engagement programme by 2024 to work alongside their key supplier base to make their upstream supply chain more sustainable.

This programme will embrace environmental considerations during procurement arrangements, by instigating a classification system that will embed environmental impact criterias into the procurement process.  

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

Working with key suppliers to cut carbon emissions

Kirner goes on to write how SAP plans to identify and work with their top 100 suppliers to report and record all relevant product level emissions.  This project should be in place by 2027 and allow SAP to report emissions based on accurate data, rather than averages.  

“As a purpose-driven company, we are always looking for ways to improve through our global procurement organisation,” writes Kirner. “Sustainable procurement practices have become one of the key enablers in achieving net-zero targets.”

Read more on how Chief Procurement Officers can help play a key role in sustainability strategy.  

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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

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