Feature by Monica Molesag
NORTHAMPTON, MA / ACCESSWIRE / July 26, 2024 / SAP is one of the most sustainable companies on the planet in 2024, according to a recent study conducted by TIME magazine and data firm Statista. It ranks 15th out of 500 companies on the list, outperforming Cisco, Microsoft, and ServiceNow.
The 2024 sustainability study measures how organizations are tracking against climate programs, such as the 1.5°C Science Based Targets initiative (SBTi) target or the Carbon Disclosure Project (CDP), and looks at scope 1 and 2 emissions and energy consumption, or proportion of renewable energy utilized in a company's operations.
For years, SAP has been putting sustainability at the very core of its vision and operations. Via a comprehensive portfolio of ERP-centric, cloud-based, and AI-enabled sustainability services and solutions, SAP helps customers across 26 industries become more sustainable. This is achieved by building long-term sustainability strategies around climate, resources, and people; powering businesses and their value chains with sustainable practices; and driving long-term business value. SAP is also committed to achieving net-zero emissions across its entire value chain by 2030 - 20 years earlier than originally planned.
"Together with our customers, which generate 87% of total global commerce, SAP has the unique opportunity to create a more sustainable world," Daniel Schmid, chief sustainability officer at SAP, said. "We are regularly recognized by world-renowned sustainability rating providers for the company's environmental, social, and governance (ESG) efforts and achievements. Our ranking in TIME magazine underscores SAP's role as a leader in sustainable business practices, setting a benchmark for others in the industry."
Check out the list below for the full collection of ratings, rankings and reports of SAP's sustainability performance globally.
Corporate Knights
In Corporate Knights' 20th annual ranking of the 100 most sustainable corporations worldwide in 2024, SAP secured the 48th position. This recognition is highly significant, as the Global 100 companies represent the upper 1% of firms globally in terms of sustainability performance. The ranking was formulated by the Toronto-based media, research, and financial information products firm, which analyzed more than 6,000 companies with revenues exceeding US$1 billion, using 25 key performance indicators.
Corporate Sustainability Assessment by S&P (Dow Jones Sustainability Indices)
Since its inception in 1999, the S&P Global Corporate Sustainability Assessment (CSA) has been conducting an annual evaluation of companies' sustainability practices, covering over 7,000 firms worldwide. The CSA emphasizes sustainability criteria that is both industry specific and financially significant. In the S&P Global Corporate Sustainability Assessment, SAP secured a position within the top 5% of the software industry, scoring 71 out of a possible 100.
CDP
In the latest CDP (Carbon Disclosure Project) assessment, SAP scored a B. This means that SAP was recognized by CDP as taking coordinated action on climate issues.
EcoVadis
In the last sustainability assessment of EcoVadis in October 2023, SAP was again awarded a gold medal with a score of 70 of 100, ranking in the 94th percentile* of all assessed companies. With more than 100,000 rated companies, EcoVadis is one of the world's most trusted business sustainability rating providers. Its assessment covers a broad range of non-financial management systems, including environments, labor and human rights, ethics, and sustainable procurement impacts.
Gartner
Gartner, a trustworthy analyst firm, has published a new report titled "Sustainability Assessment: SAP®". Read more about Gartner's assessment of SAP's sustainability performance in this complimentary report offered to all Gartner readers.
FTSE4Good
Administered by the Financial Times Stock Exchange-Russell Group (FTSE), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices. Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products.
As in previous years, SAP continues to be listed in the FTSE4Good indices based on assessment questions in areas such as environment, climate change, human rights, community and labor standards, tax transparency, and anti-corruption. Due to its good scoring, SAP remains a constituent of the FTSE4Good Index Series following the June 2024 review.
IDC
IDC Sustainablity Index for Software Providers reviews the ESG impacts of information and communication technology (ICT) players, focusing on three pillars: Technology as an Enabler, Vendor Performance, and Technology for Good. SAP was awarded 3rd place** in an assessment of 23 software vendors. This position highlights SAP's exceptional performance, especially in the Technology as an Enabler pillar, where SAP excels in monetization, sustainable features, ESG reporting, operational optimization, and advisory services. SAP's success is attributed to its commitment to sustainability, as well as to efficient internal product standards that prioritize cost and resource efficiency. Additionally, SAP has been named a leader among 18 vendors in the first-ever IDC MarketScape: Worldwide Carbon Accounting and Management Applications 2024 Vendor Assessment.
ISS ESG
The Institutional Shareholder Services (ISS) ESG Corporate Rating provides an assessment of companies' sustainability performance based on high-quality and in-depth research and up to 100 sector-specific rating criteria that are regularly reviewed and developed. With its B rating, SAP has been acknowledged with prime status and is among the top decile. The score was confirmed in January 2023. ISS ESG is expected to update its score in the summer of 2024.
MSCI
MSCI ESG Research provides in-depth research, ratings, and analysis of the ESG-related business practices of thousands of companies worldwide. Its research is designed to provide critical insights that can help institutional investors identify risks and opportunities that traditional investment research may overlook. The MSCI ESG Ratings are also used in the construction of the MSCI ESG Indexes produced by MSCI, Inc. SAP upholds the highest rating of AAA*** and is an ESG leader in human capital development, corporate governance, privacy and data security, and clean tech as of the last assessment in May 2024.
Sustainalytics
SAP received a low-risk ESG Risk Rating of 10.9 from Sustainalytics, a leading provider of ESG research, ratings, and data. This rating reflects SAP's commitment to sustainability and its efforts to minimize the financial impact of environmental, social, and governance factors. Sustainalytics, founded in 1992 and now a Morningstar company, is a trusted source for institutional investors and companies seeking to understand and manage ESG risks.
TIME
TIME's assessment of the World's Most Sustainable Companies for 2024 recognized SAP for demonstrating a strong commitment to sustainability. SAP was ranked the 15th most sustainable company worldwide. This reflects SAP's dedication to areas such as climate change, human rights, and anti-corruption and underscores SAP's role as a leader in sustainable business practice.
*SAP's score is higher than or equal to the score of 94% of all companies rated by EcoVadis.
**Doc #EUR147190121, May 2023
***Scale: AAA (leader) to CCC (laggard). The use by SAP SE of any MSCI ESG Research LLC or its affiliates (‘MSCI") data, and the use of MSCI logos, trademarks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of SAP SE by MSCI. MSCI Services and Data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
Copyright ©2022 Sustainalytics. All rights reserved. This article contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
® Gartner, Sustainability Assessment: SAP, 11 December 2023, Ed Anderson, Fabio Di Capua
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SOURCE: SAP