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Sustainability Management by SAP
25.08.2021
Anita Varshney
Global Vice President, Strategy SAP S/4HANA Sustainability

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negligence.
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Disclaimer

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Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Climate Action
Contribute to a zero carbon economy by reducing your environmental footprint
• Environmental risks to cause $120B ‘Chain 
Reaction’ for companies by 2026
• Customers want insights on product-level 
impact. Accountability a must for companies, 
across all Scope 1,2,3 operations
• Carbon management could deliver $26T 
trillion in economic benefits by 2030, 
generating more than 65 million jobs
Absolute Facts 
We Need to Act Now
What’s our Ambition
• Provide corporate and product footprints to 
reduce carbon emissions across the value 
chain and exchange data with customers 
and business partners
• Optimize for CO2: Redesign products, 
operations and services for sustainability
• Low-carbon governance aligning internal 
incentives, empowering your organization 
to take action on zero emissions 
• Cross-industry action, enabling business 
leaders to uncover new business potential, 
looking beyond the focus of climate pledges
• Empower consumers to make better 
informed low-carbon decisions
• Unleash the full power of digitalization to 
improve energy efficiency, enabling the just 
transition and nature regeneration

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• World is only 8.6% circular. 61% of the 
world’s population don’t have access to 
waste management infrastructure  
• 45% of GHG emissions come from 
consumer industries and manufacturing
• Adopting circular principles will allow us to 
regenerate natural systems and make 
better use of finite resources 
Absolute Facts 
We Need to Act Now
What’s our Ambition
• Plastic-free ocean by 2030
• Design out waste and pollution, products 
and materials are kept in use for longer, 
and natural systems can regenerate
• Provide formal work and improved working 
conditions for informal laborers, creating a 
more equal, fair and sustainable future
• Work together with customers, partners, NGOs 
and regulators end to end for sustainable 
product lifecycles across the value chains
• Industry must shift to enable system change, 
embedding environmental and social 
stewardship into material flows
• Upstream visibility for sustainable inputs, 
downstream visibility to enable reverse logistics 
and product authentication to promote reuse
Circular Economy
Take action towards a circular economy, by managing your limited resources productively

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Holistic Steering and Reporting
Building a strong, resilient path to grow from Enterprise Value to Society Value 
• ESG integration, transparency more 
critical throughout the supply chain
• 363% increase in reporting on SASB
• 94% with approved SBTi have value 
chain targets, but miss standardization
• Improved financial performance due to 
ESG becomes more noticeable over 
longer time horizons
Absolute Facts 
We Need to Act Now
What’s our Ambition
• Granular data and insights, down to product and 
transaction level. Integrated and cohesive data 
sets with visibility across business units
• Real-time data capture within a digitized end-to-
end system focused on generating insights to 
guide action and automation
• ESG information architecture meeting the needs 
of external audiences and internal managers
• Integrated reporting, bringing together 
corporate and product impact
• Serve hyper transparency needs, with 
higher level of granularity than historically 
available through reporting and disclosure
• Focused analysis on the most important 
data, protecting against business risks, 
tying it back to underlying business data

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Business Challenges
Sustainability Big Picture
ZERO WASTE with Circular Economy

Managing Extended Producer Responsibility

Plastic Taxes and Voluntary Commitments

Circular Design

Responsible Sourcing and Marketplaces

Material recovery and re-use

Move from consumption to re-use business model 

Managing Takeback 

…
STEERING TO ZERO with Holistic Steering and Reporting

Integrated Reporting and Sustainable Finance 

Supplier Risk & Reputation

Holistic Supply Chain Transparency

Sustainability Strategy, Science Based Targets

Environmental Management System (ISO 14001)

Supply Chain Transparency Law
Industry Innovation 

Impact Investment, Financing and Insurance
ZERO EMISSIONS with Climate Action

Corporate Emission Management (Scope 1, 2 and 3)

Product Emission Management

Carbon Data Network across the Value Chain

CO2 as a financial Asset (EU ETS, CO2 Tax)

Sustainable Travel

Sustainable Transport

…
ZERO INEQUALITY Social Responsibility

Employee Safety, Labor Law Compliance and 
Incidence Management 

Diversity, Inclusivity, Equality and Enablement

Employee Experience & Talent Attraction

Business Ethics

…

Logistics Emissions, Bulk Transportation and Fleet 
Management 

Renewable Energy Transformation

Last Mile Delivery Optimization 

…

Safe Operations and Process Transitions

Control and Monitor Safety Measures

…
INDUSTRY INNOVATION

Reusable Packaging

Returns Management 

Reverse Logistics 

Product as a Service

…

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Our Approach: Embed Sustainability into your Business DNA
Meet global obligations
Deep transparency into financial & non-financial data will address 
regulations proactively and ensure full compliance along with 
integrated, auditable, and real-time reporting
Make processes sustainable & gain efficiencies
End-to-end solution portfolio, embedded within your key processes, to address 
circular business models, assess and reduce carbon footprint, reduce waste, 
drive social responsibility across the entire value chain
Create sustainable products, services & business models
Gain a holistic insight into data, processes, regulations and industry specific drivers and 
differentiators across value chains to create new products, services and solutions that reach 
additional customers,  markets and segments 
Business transformation
Sustainable value creation
Place sustainability front and center. Embed sustainability insights into end-to-end processes 
extended throughout your business network. This will ensure efficiency gains, social responsibility 
and compliance, while mitigating risk.

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The Process: Sustainability is a Journey, not a Destination
Embed sustainability comprehensively into processes to create actionable insights across the entire value chain.
Assess by collecting 
new data
Evaluate through 
advanced data processing
Optimize using an 
Intelligent Enterprise
approach
Real success depends 
upon Data Transparency 
and Process Action 
working together
Today’s definitive business issue is to make sustainability profitable and profitability sustainable

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Zero Inequality with 
Social Responsibility
Zero Waste with 
Circular Economy
Zero Emissions with 
Climate Action
A blueprint to integrate sustainability data into business processes across all value chains to drive performance, 
new products & new markets
Generate cost savings by 
transitioning from “Low to No” 
carbon across your entire network.
Contribute to a zero-waste world 
by incorporating resilience and 
circularity into your supply chains.
Ensure zero incidents, accidents 
and harm to communities, 
people and the environment. 
Complete the transition to a high-performance Sustainable Intelligent Enterprise by combining operational data mapping with holistic sustainability reporting
Generate additional value by incorporating industry-specific solutions from across our Partner Ecosystem and Industry Cloud
Industry Innovation
Steering to Zero with Holistic Steering and Reporting
The Value Proposition: SAP’s 3 Zeros Strategy for Sustainability

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Design
Production
Sourcing & 
Marketplace
Finance
Logistics & 
Transport
Sustainability 
Ledger
People
Networks
Consumption 
Recovery & 
Reuse
Embedded in Business Process    
With a Global Network Ecosystem  
Impact at Scale with Partners 
Sustainability Management by SAP: Overview
SAP 
Responsible 
Design & 
Production
(Circular 
Economy)
SAP S/4HANA 
for product 
compliance
SAP 
Sustainability 
Control Tower
(Holistic Steering 
& Reporting)
SAP Product 
Footprint 
Management
(Climate 21)
SAP 
Environment, 
Health, and 
Safety 
Management
SAP S/4HANA, 
Suite LoB
Solutions and 
Industry 
Innovations

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Zero Emissions with Climate Action
• Bring transparency on corporate and product footprints to reduce carbon emissions, across the customer’s value chain. 
• Empower consumers to make better informed low-carbon decisions. 
• Optimize for CO2: Redesign products, operations and services for sustainability.
Outlook: 
• Starting with PFM and EM, embed climate action capabilities into SAP business processes, expanding beyond SAP 
S/4HANA core to LOBs, across the Intelligent Enterprise. 
• Through global alliances, enable cross-industry action, exchange data with customers and business partners, bringing 
transparency across scope 1,2,3 operations, enabling business leaders to uncover new business potential.
• Unleash the full power of digitalization to improve energy efficiency, enabling the just transition and nature regeneration.
SAP Product Footprint Management (PFM)
SAP S/4HANA for Environment, Health, & Safety 
Environment management (EM)

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Zero Waste with Circular Economy
SAP S/4HANA for product compliance 
(PC)
SAP Responsible Design and Production 
(RDP)
SAP S/4HANA for Environment, Health, & 
Safety – Waste management (WM)
• Plastic-free ocean by 2030. Design out waste and pollution, products and materials are kept in use for longer, and 
natural systems can regenerate.
• Bring upstream visibility for sustainable inputs, downstream visibility to enable reverse logistics and product 
authentication to promote reuse, embedding environmental and social stewardship into material flows.
• Provide formal work and improved working conditions for informal laborers, creating a more equal, fair and 
sustainable future.
Outlook: 
• Lead with Extended Producer Responsibility(EPR) focus, collaborate with customers, partners, NGOs and 
regulators, to design end to end sustainable product lifecycles across the value chains for 5 countries.
• Sustainable Product Management: Actively embedded product compliance for all compliance-relevant products 
with integrated product marketability, dangerous goods, and safety data sheet checks.
• Waste Management: Identify waste and compliant disposal channels with waste partners, including transportation documentation.

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Steering to Zero with Holistic Steering & Reporting
• Integrated reporting, bringing together corporate and product impact, serving hyper transparency needs, with higher level 
of granularity than historically available through reporting and disclosure.
• Periodic data capture within a digitized end-to-end system focused on generating insights to guide steering and automation.
• Focused analysis on the most important data, protecting against business risks, tying it back to underlying business data.
• ESG information architecture meeting the needs of external audiences and internal managers.
Outlook: 
• Lead with 21 World Economic Forum Stakeholder Capitalism Metrics, providing a strong foundation for our customers to 
bring ESG transparency, from their SAP applications data including integrated content from EHS, HCM, SF and Finance
• Support upcoming reporting requirements, communicating progress to both internal and external audiences. 
• Create actionable insights to drive Sustainability Performance across the organization.
• Leverage sustainability data across company boundaries to drive sustainability improvements across the value chain. 
SAP Sustainability Control Tower (SCT)

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Zero Inequality with Social Responsibility
• Embedding ESG metrics across our business operations, extending to our business networks. 
• Ensure continuous improvement in safe equitable and compliant businesses, within the company and across the value network.
• Responsible and Fair Wages 
Outlook: 
• Evaluating our suppliers based on their ESG performance, including diversity and inclusion metrics, to ensure responsible businesses 
across our networks, while managing our footprints data.
• Improve EHS performance by incorporating risk management into daily operations with integrated business processes and shared data 
and workflows.
• Protect asset integrity and optimize production by reducing unplanned downtime and outages through proactively identifying and 
mitigating safety risks.

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Collaborating with our Ecosystem to enable Sustainable Intelligent Enterprises
Selected Strategic Partnerships
Climate Action
• SAP is innovation partner in WBCSD’s Value Chain Carbon Transparency Pathfinder, dedicated to enhancing transparency in corporate carbon 
emissions with the objective to ultimately decarbonize supply chains.
• SAP is founding member of European Green Digital Coalition to emphasize the role of technology for the green transition and EU taxonomy, set 
up with the European Commission, our customers and partners. SAP will invest in digital technology and work on the methodology and its 
deployment across industries including buildings, agriculture, transportation to assess a positive impact of tech on environment.
Circular Economy
• As a member of the Global Plastic Action Partnership, SAP Aims for a Plastic-Free Ocean, and is working with the Ellen MacArthur Foundation, 
the World Wildlife Fund, and other strategic partners to create a cleaner ocean by 2030.
• SAP has joined the call to action with Ellen MacArthur Foundation, on EPR for packaging. 100+ businesses in the packaging value chain, publicly 
recognize that without Extended Producer Responsibility (EPR) packaging collection and recycling is unlikely to be meaningfully scaled and tens of 
millions of tones of packaging will continue to end up in the environment every year.
Holistic Steering 
& Reporting
• SAP is a member of International Business Council (IBC) community with World Economic Forum. Close to 70 IBC's members have agreed to 
advance the creation of common metrics and consistent disclosure of sustainable value creation with Measuring Stakeholder Capitalism initiative. 
SAP joined the Alliance as a Net-Zero champion, with the Forum’s Alliance of CEO Climate Leaders 
• SAP supports Value Balancing Alliance, which aims to advance the measurability of the sustainability dimension. VBA offers a standardized 
methodology that helps companies, investors, and other stakeholders compare nonfinancial performance. These insights enable companies to 
create business value beyond revenue or profit growth while taking into consideration the long-term impacts of their business operations on the 
environment and society as a whole.
Social 
Responsibility
• With United Nations Global Compact, SAP and Accenture have created 3 guides for implementing SDG Ambition approach, enabling customers 
transformative journeys on sustainability. Apart from 10 Business Benchmarks, this also includes guidance on Achieving the Living Wage Ambition
• With United Nations Global Compact, SAP Ariba has contributed to The Decent Work Toolkit for Sustainable Procurement which enables 
companies, procurement professionals and suppliers to develop a common understanding on how to advance decent work through purchasing 
decisions and scaling up efforts to improve lives around the globe.

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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Methodology
SDG Ambition Approach: Getting the Transition Started

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SDG Ambition Approach: From Raising Ambition to Business Integration
• Ambition Operationalization: Integrate your sustainability 
commitments in your core business strategy and operations
• Systemic Shift: Sustainability innovations bring together business 
and technology partners across the ecosystem, while also respecting 
geographical, industry and system diversity
• Accountability through Reporting: KPIs and metrics drawn from 
leading standards to inform decision making
• KPIs Ownership and Goals: Understand the interplay of maturity 
between people, process and technologies
• Goal Setting that is more absolute, impact-oriented, and 
interconnected forms a strong foundation for looking into the 
“enabling technologies” and understanding the systemic impact

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Deliver, run, and scale the sustainable enterprise
Bridge the gap between strategy and execution
Kick off the journey
Sustainability – Service Package and Portfolio 2021
Sustainability assessment
Bridge the gap between strategy (your sustainability goals and 
ambitions) and execution (linking the technical execution). 
Identify the data in your existing systems and link it to achieve your 
sustainability ambitions. 
Sustainability advisory
Achieve a quick start by defining 
your key sustainability ambitions and 
use cases, prioritizing them, and 
creating a plan.
Work with SAP as a trusted advisor on sustainability topics from project start to implementation. Align your project road map with the sustainability product road map, provide feedback to product 
management, and build a bridge with product development. Apply the latest sustainability innovations. 
Sustainability trusted advisor
Sustainability implementation
Maximize usage and adoption with specific implementation on standard 
products and/or minimum viable product builds.
Available Scope Options reflecting the expanding solution 
portfolio:

Climate 21

Circular Economy

Sustainability Reporting

Sustainable Finance

Supply Chain Transparency (in work)

Product Compliance

Environment, Health and Safety
Pre-scoped options 
Implementation of Health and Safety for SAP EHS Management
Pre-scoped options
Implementation of Product Safety Document Retrieval for Product Compliance
…

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Sustainability Solution Capabilities Planned for Q3 – Q4 2021 
2021 Q3
2021 Q4
Climate Action
•
PFM: Calculate product footprints of purchased goods with S/4HANA 2108
•
EHS Environment Management: Support for indirect greenhouse gas 
emissions management with SAP S/4HANA 2108
•
LBN: Gain insights into the carbon footprint of your shipments
•
LBN: Track the transport-related carbon emissions of your shipments
•
PFM: Calculate product footprints at scale including production activities + 
embedding E2E scenarios with SAP S/4HANA 2111
•
EHS Environment Management: Management of environmental summary 
reports with SAP S/4HANA 2111
•
IBP: SAP Best Practices: Enhanced inventory scenario planning with SAP 
S/4HANA 2111
Circular Economy
•
RDP: Beta release
•
EHS Environment Management: Analytical CDS views for transactional 
data; Integration of dangerous goods in management of material data; 
Management of waste-transport documents and Waste characterization –
waste stream and channel management with SAP S/4HANA 2108
•
PC: Dangerous Goods Management with SAP S/4HANA 2108
•
PC / MM: Purchasing integration with product compliance with SAP 
S/4HANA Cloud 2108
•
PC: Support for manual shipments of Safety Data Sheets with SAP 
S/4HANA 2108
•
TM / PC: Logistics integration with product compliance – dangerous goods 
checks with SAP S/4HANA 2108
•
LBN: Blockchain based Material Traceability
•
CE: General Availability of RDP to support Extended Producer Responsibility 
obligations and reporting
•
EHS Environment Management: Integration of product compliance data with 
SAP S/4HANA 211
•
TM / PC: Enhancement of dangerous goods checks with SAP S/4HANA 2111
•
TM / PC: Dangerous goods documents for ADR/RID/IMDG/CFR/TDG with SAP 
S/4HANA 2111
Holistic Steering 
and Reporting
•
SCT: Private Beta Testing (selected customers and partners)
•
SCT: General Availability. Key Figures and analytics along WEF Core Metrics, 
integrating data from diverse sources via “open data provider interfaces” resp. 
integration with SAP S/4HANA, SAP EHS EM and IM, and Success Factors.
Social 
Responsibility
•
EHS: Enhanced Analytics in Management of Change with SAP S/4HANA 2108
•
Ariba: Diversity-based supplier classification
* PFM: SAP Product Footprint Management | CE: Circular Economy | SCT: SAP Sustainability Control Tower | EHS: SAP S/4HANA for Environment, Health, & Safety | RDP: SAP Responsible Design and 
Production | PC: SAP S/4HANA for product compliance | IBP: SAP Integrated Business Planning | SF: SuccessFactors | LBN: SAP Logistics Business Networks | TM: SAP Transportation Management

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Upcoming Enablement Sessions
SAP S/4HANA Delta Training for Partners
Sustainability Management by SAP
September 24th 2021
9:00 AM – 12:00 PM CET
Together with SAP S/4HANA Product Success, 
Co-Innovation and Content team, we will 
enable our partner’s ecosystem to take 
advantage of our fully-fledged SAP S/4HANA 
Cloud and on prem solutions on sustainability. 
We will offer various enablement assets 
demonstrating the features and functions as 
well as the benefits our innovations bring our 
users. (Link) 
October 27th 2021 
SAP S/4HANA Cloud Summit
Leading digital transformation and 
capitalizing on cloud (To be announced) 
October 28th 2021 
SAP Sustainability Forum
SAP Sustainability Summit | Home 
More companies than ever are looking for a 
holistic solution to take the right steps towards 
climate action. You can start acting on climate 
change and reduce product footprints with 
SAP Product Footprint Management, a new 
cloud-native application built on SAP Business 
Technology Platform. (Link)

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© 2021 SAP SE or an SAP affiliate company. All rights reserved.  ǀ
Agenda 
•
Understanding our Customer Challenges
•
SAP’s Value Proposition 
•
Sustainability Management by SAP: Product Portfolio Overview 
•
SAP Product Footprint Management (PFM)
•
SAP S/4HANA for Environment, Health, & Safety (EHS)
•
SAP Responsible Design and Production (RDP)
•
SAP S/4HANA for product compliance (PC)
•
SAP Sustainability Control Tower (SCT)
•
Enabling your Sustainability Management Transformation Journey 
•
Looking Ahead: Product Roadmap, Enablement Sessions and Events
•
Useful Links

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Useful Links 
SAP Purpose and Sustainability
SAP Solutions for Sustainability
Product Perspective Sessions 
SAP Sustainability Summit | Home
Business Success with Climate Action
Helping Business Thrive in a Circular Economy
SAP Environment, Health, and Safety for 
Operational Sustainability
SAP Community | SAP for Sustainability
SAP Road Map Explorer
SAP Help Portal
SDG Ambition

Thank You