Starting in 2024, SAP is intensifying its commitment to achieving net-zero emissions by enhancing its efforts in nature conservation and increasing financial investments in climate initiatives.
The funding will focus on two main types of projects:
Carbon removal projects: These initiatives aim to extract carbon dioxide from the atmosphere and store it for extended periods, ideally permanently. Examples include nature-based solutions like reforestation, where trees capture carbon in their biomass, as well as technological methods such as direct air capture and storage. Carbon reduction projects: Also referred to as carbon avoidance projects, these initiatives help prevent further carbon emissions from being released into the atmosphere, thus decreasing total emissions. Examples include projects aimed at preventing deforestation or enhancing energy efficiency. The funding will focus on two main types of projects:
This renewed focus on net-zero aligns with SAP’s successful commitment to carbon neutrality in its own operations by 2023, achieved by offsetting unavoidable emissions with carefully chosen carbon credits. While SAP will no longer use the term “carbon-neutrality,” it remains steadfast in its commitment to reducing its carbon footprint and funding climate action beyond its immediate operations.
Net zero refers to a situation where the amount of greenhouse gases emitted is balanced by an equivalent amount being removed from the atmosphere. Various definitions and pathways exist for achieving net zero, and SAP adheres to the Science Based Targets initiative’s (SBTi) Net-Zero Standard. To attain net-zero emissions throughout its entire value chain, SAP must eliminate or offset emissions across all sources, including its operations, the energy it purchases, and external emissions from activities like employee travel and the use of customer data centers.
SAP’s Tree Planting Initiative
SAP is on track to achieve its goal of planting 21 million trees by 2025 and has increased its reforestation commitment. By 2030, the company aims to collaborate with trusted partners and communities to plant and protect a total of 25 million trees, contributing to the preservation of diverse forest ecosystems. Additionally, SAP will fund the conservation and restoration of coastal and inland wetlands, such as bogs and mangrove swamps. These efforts aim to conserve more land than the total occupied by SAP’s offices and data centers globally.
To ensure the effectiveness of selected projects, SAP will apply rigorous due diligence, which has previously guided successful climate investments, including its long-standing partnership with Livelihood Carbon Funds (LCF), funding tree planting in countries such as Senegal, Rwanda, India, Indonesia, Guatemala, and Mexico.
Bridging the Financial Gap
SAP believes that funding climate initiatives beyond its immediate operations should be a priority for all corporate sustainability strategies. By leveraging its financial resources, the company can help restore ecosystems and foster low-carbon economies in regions where public finances are insufficient.
This financial investment will provide measurable benefits to combat climate change beyond SAP’s direct impact, positively affecting local communities and biodiversity. The amount of the financial contribution will vary based on SAP’s annual emissions and will be reported in terms of carbon emissions, as the costs for carbon projects can fluctuate.
Through this financial commitment and heightened focus on land conservation and reforestation, SAP is on track to achieve its net-zero goal by 2030, a full 20 years ahead of the original timeline. By financing climate projects while pursuing its corporate net-zero agenda, SAP aims to take responsibility for unavoidable emissions and actively address climate change on a global scale. This financial support will enable a broader scope of positive climate action than SAP could achieve independently.
Changing Perspectives on Corporate Sustainability
Over the past 15 years, SAP has transformed perceptions regarding how companies address their carbon emissions and emphasizes the need for actionable corporate sustainability agendas. Since 2012, SAP’s Integrated Report has documented the company's environmental performance and advancements in sustainability targets, illustrating that corporate sustainability is essential to business rather than an auxiliary consideration.
SAP’s carbon impact is now one of the key performance indicators of sustainability that inform the compensation of its Executive Board members. Today, sustainability is integral to SAP’s mission to optimize every business. With its comprehensive range of sustainability solutions, SAP is committed to making a positive impact in the world and enhancing people’s lives.