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Achieving Sustainable Operations

How SAP Can Help Your
Business Run Better

The Best-Run Businesses Run SAP

Achieving Sustainable Operations

Foreword

We are living in an age of unprecedented challenges. The world's population is predicted to reach 9 billion by 2050, creating new generations of consumers and putting even greater stress on finite global resources, raw materials, and energy. At the same time, increasing environmental awareness, geo-political uncertainty, and instantaneous communications are adding pressure on supply chains and business processes to improve sustainability and do more with less.

At SAP, we strive to help the world run better and improve people's lives. This document demonstrates how our technologies help businesses become more transparent or energy-efficient, protect workers from accidents, and address risks in their supply chain. By turning sustainability into concrete actions, workers, communities, the environment, and people throughout the world all benefit.

Peter Graf,
Chief Sustainability Officer,
SAP

Introduction

Helping your business run better –
and more sustainably

A more sustainable approach to business isn't just good for the environment – it also makes sound financial sense. As a result, many of the top companies around the world are driving more sustainable business practices to achieve significant cost savings, improve operating margins, boost their brand reputations, and attract investors.

Boards across the globe are setting sustainability-related goals for their organizations as they recognize the opportunities to reduce waste, increase efficiency, and protect their people, customers, and assets.
And many are accomplishing these challenges with the help of SAP software.

people

Reduce waste;
increase efficiency;
and protect people,
customers, and assets

Introduction

...many of the top companies
around the world are driving more
sustainable business practices to
achieve significant cost savings...

Wherever you are on your journey to a more sustainable business, SAP has a choice of software and services that can help – from getting you started to providing the tools and techniques you need to drive improvement, measure progress, report results, and deliver stakeholder value.

SAP solutions for sustainability can empower your organization to:

Browse the following pages for more information about how we can help your business run better and more sustainably, or visit the
SAP Sustainability Information Center.

Sustainability Runs Better
with SAP

See an overview of SAP software for a more sustainable business.
Watch the video >

Executing the Sustainability Business Case
Find out where you should focus your efforts to achieve optimal payback on your initiatives.
Read the article >

SAP Walks the Talk
Watch an overview about how SAP is executing on its own business case.
Watch the video >

Our Approach to Sustainability

Incorporating sustainability
and innovation into our corporate
strategy to achieve profitable
growth

At SAP, we have incorporated sustainability and innovation into every aspect of our business, including our solutions, operations, and social investments. This enables us to achieve what many have historically believed to be in opposition – sustainable growth and profitability.

SAP was founded on the idea of using software to optimize the use of resources. This puts us in a special position in today's world of population growth and resource scarcity.

Tackling these complex challenges requires us to approach problems in new ways, and we view innovation as the critical link to becoming more sustainable. As a result, we are driving sustainability by innovating in each of our five key market categories: applications, analytics, mobile, cloud, and database and technology.

Our Approach to Sustainability

Our software and services are helping our customers integrate sustainability into their own strategies and operations to become more profitable while creating positive change. Ultimately, this translates into improving people's lives. For example, on top of managing and analyzing information, our software enables companies to save energy and resources, help keep toxic chemicals out of a child's toy, and reduce the risk of factory accidents.

We have also integrated sustainability into all aspects of our business. Several years ago, we established metrics to measure our progress – from our reduction of carbon emissions to our increased engagement of employees.

We are working toward a goal of reducing our carbon emissions to their 2000 level by 2020, even as our business continues to grow. We have also set a target to increase the percentage of women in management at SAP to 25% (from the current 18.7%) by 2017. And we have committed ourselves to positively impact 1 million lives in countries around the world through our talent, technology, and capital.

This entire strategy is shaped by our desire to think about short-term profitability as well as long-term impacts.

Highlights of the 2011
SAP Sustainability Report

View the report >

SAP solutions for smart energy are estimated to help

30 million

households use energy more responsibly, saving

$390 million

for every percent of efficiency gained.

The Business Case
for Sustainability

Defining your road map,
budget, and ROI

There are plenty of stories in the press about how companies are reducing energy, water, and waste – and even in some cases, completely eliminated all waste. But it didn't happen overnight, and it didn't happen without a plan. What are your goals? What does your cost structure look like? Perhaps most important, what are the greatest risks to your customers, your people, and your brand? And just how can technology help anyway?

We have been listening to customers answer these questions for more than 40 years. For sustainability-related solutions, we have grouped them into five different business cases. Some can run without other SAP software, and others need integration with an SAP transactional system. They all have differing use of technologies such as analytics, applications, or mobile. So keep reading, look for the most urgent opportunity, and make the business case for your own transformation.

SAP workplace safety solutions are estimated to help

5.5 million

people work more safely.

Operational Risk Management

Keeping people, assets,
and the environment safe
with operational continuity

Improve safety by going beyond compliance. Proactively identify and reduce risks to prevent costly incidents and accidents. Reduce the cost of compliance by embedding environment, health, and safety (EHS) risk management into daily operations.

Organizations are under increasing pressure to improve workplace and process safety. Yet, many asset-intensive companies continue to suffer from unplanned downtime, failure to meet production targets, and too many safety and environmental incidents – all of which can harm short-term profitability and cause long-term damage to their brand and shareholder value.

…$6.9 billion

in incident-related costs are managed more efficiently

SAP workplace safety solutions are estimated to help

5.5 million

people work more safely.

Operational Risk Management

A proactive approach to risk management is essential. According to industry standards such as ISO 14001, OSHA 18001, and Responsible Care, the best practice approach to effective and efficient risk management is an integrated management system.

With SAP software and services, you can leverage your core business systems to implement a cost-effective, closed-loop operational risk management process to:

There are also service packages available to help you get up and running quickly. Discover how SAP solutions for sustainability can help you better manage operational risks to run safer and more efficiently.
Visit our Web site >

Operational Risk Management
Explore a clear path for proactively managing risk and helping to ensure operational continuity.
Read the white paper >

Baker Hughes
See how Baker Hughes uses the SAP EHS Management application to improve efficiency and incident management.
Watch the video >

People, Assets, and the Environment
Discover how operational risk management can help keep people, assets, and the environment safe.
Read the brief >

ArcelorMittal
See how this steel maker streamlined its EHS processes and improved workplace safety.
Watch the video >

Product Safety and Stewardship

Managing risk, protecting
marketability and driving growth
with sustainable, safe,
and compliant products

Product manufacturers have responsibilities – and increasing opportunities – in helping to ensure safety and reducing the environmental impact of their products throughout the supply chain. Here's how we can help.

As regulations rapidly grow around the world and consumer awareness of product safety and environmental issues increases, stakeholders – from consumer and industry groups to financial institutions and government bodies – are all taking this accountability very seriously.

We are working with companies across the globe to strategically redefine the way they design their products, comply with regulations, evaluate their supply chains, and handle the end of life of their products. As a result, these companies are able to:

Product Safety and Stewardship

HOW SAP CAN HELP

Product Compliance for Discrete Industries
Achieve ongoing compliance with product regulations and requirements such as REACH, RoHS, ELV, and IMDS.
Learn more >

Product Compliance for Process Industries
Comply with continuously changing product regulations such as REACH, OSHA, and CLP.
Learn more >

Material and Product Safety
Help ensure safe transportation, storage, use, and disposal as directed by regulations such as GHS, REACH, and TSCA.
Learn more >

EHS Regulatory Content
Navigate complex EHS requirements to help ensure regulatory compliance, product safety, and on-time delivery of your products to market.
Learn more >

Recycling Compliance for Products and Packaging
Manage your product and packaging recycling, while meeting all packaging regulations and retailer requirements with our integrated solution.
Learn more >

SAP Services
Our sustainability services portfolio can help your company rapidly achieve benefits.
Learn more >

Product Safety and Stewardship

CUSTOMER SHOWCASE

Unilever Europe
Hear how Unilever achieves full REACH compliance for 10,000 personal care products in Europe – with 80% less people.
Watch the video >

Dow Corning Corporation
Read how Dow Corning achieved a two-year ROI, moved from 35 label solutions to one, and cut time to comply with new regulations by 75%.
Read the story >

Varian Medical Systems
See how Varian achieved REACH and RoHS compliance, faster engineering changes, and lower cost of compliance.
Watch the video >

SAP product safety solutions are estimated to help

940 million

consumers live safer and healthier, protecting

$5.8+ trillion

in customer revenue

Energy and Environmental
Resource Management

Reducing costs and meeting
energy reduction goals through
strategic management of
energy use

By using the SAP Manufacturing Integration and Intelligence (SAP MII) application for energy analysis, you can rapidly gain real-time visibility and control with a single system of record for energy use and costs across the enterprise.

In an increasingly competitive market, rising energy prices are challenging every manufacturer's ability to maximize productivity while reducing costs. Simultaneously, companies are faced with expanding regulatory requirements and stakeholder expectations to report and manage energy consumption and its impacts. Often, their current systems for tracking this information are not up to the task.

Energy and Environmental
Resource Management

By strategically managing energy use and its impacts, companies can:

Improve the Management of Energy Use with SAP MII

With SAP MII, customers can rapidly provide lightweight energy analysis with a single system of record for energy use and costs across the enterprise. And there are service packages available to help you get up and running quickly to achieve your goals.

Key benefits include:

 

Energy and Environmental
Resource Management

LEARN MORE

Energy as a Direct Cost
Read this Automation World article to learn how treating energy as a direct cost, rather than overhead, enables better energy management.
Read the article >

Energy as Part of Your Larger Strategy
Explore the rise of the energy resource imperative as the pressures of population growth and economic development cause increasing price volatility.
Read the article >

Valero Energy
Watch how Valero Energy deploys SAP MII to drive several-hundred million dollars in ROI.
Watch the video >

The industrial sector represents more than one third of both global primary energy use and energy-related carbon dioxide emissions.

RTS Automation
See how Canada's RTS Automation runs its energy management application on SAP MII.
Watch the video >

Energy Management with SAP
Discover how you can gain the transparency you need to manage your energy consumption better.
Watch the video >

Beyond the Utility Bill
Read how you can track and act on real-time energy information.
Read the article >

Sustainability Reporting
and Analytics

Measuring impact and driving
performance, while reducing
the cost of gathering data and
compiling disclosures

By tying key business information from operational systems with sustainability reporting and carbon management, SAP software and services can help you focus on profitable business opportunities while providing the transparency
and accountability your stakeholders demand.

More than 3,400 companies – including 95% of the Global 250 – now publicly disclose their sustainability performance to increase stakeholder transparency and strengthen their brands. However, many organizations still rely on inefficient, labor-intensive, and error-prone manual processes to collect and disclose their sustainability data.

95%

of Global 250 companies publicly disclose sustainability performance

Sustainability Reporting and Analytics

Quick deployment, rapid benefits
SAP solutions for sustainability reporting and analytics are quick to deploy and can help reduce the time and cost needed to gather data and compile reports. They can even help companies meet stakeholder expectations for transparency, continuous business improvement, and profitable reduction of energy use and emissions.

These benefits are accomplished through:

And there are service packages available to help you get up and running quickly to achieve your goals.

SAP solutions can help you focus on profitable business opportunities

FIND OUT MORE

Lexmark
See how Lexmark is helping its business and customers by practicing responsible growth using the SAP Sustainability Performance Management analytics application.
Watch the video >

Atos
Hear why Atos chose SAP Sustainability Performance Management to accelerate its sustainability strategy.
Watch the video >

BIBB
Learn how this German national institute for vocational education and training is helping to ensure the international competitiveness of German business and industry.
Read the story >

Learn More
Visit our sustainability reporting and analytics site, where you can download other insightful information such as Webcasts, white papers, solution briefs, and profitability calculators.
Visit our Web site >

Green IT

Managing IT more responsibly to
minimize energy and resource
consumption – and reduce IT costs
and risk

We offer a set of integrated green IT software and services that can help your company realize immediate ROI in terms of lower energy costs, reduced CO2 emissions, and increased capital efficiency.

IT is at the heart of most organizations and has an important dual role in helping companies to achieve their sustainability goals. As an enabler, it can help automate and enhance business processes to increase efficiency and improve the use of resources. And as a major consumer of energy and other resources in its own right, it can directly impact a company's sustainability performance and bottom line.

We have a range of software, services, and strategies that can help your company improve capital efficiency and realize more sustainable IT operations, including:

And there are service packages available to help you get up and running quickly to achieve your goals.

 

Green IT

FIND OUT MORE

Reducing Cost, Risk,
and Energy Use

Discover how your IT organization can find new ways to manage increasing complexity and higher energy costs.
Read the brief >

...lower energy costs, reduced
CO2
emissions and increased
capital efficiency.

SAP Walks the Talk
See how SAP's global IT organization is successfully reducing CO2 emissions and costs.
Watch the video >
Download the white paper >

T-Systems
Read how one of our global hosting partners is driving green technology for environmental sustainability.
Download now >

Solution Details
Decommissioning:
SAP NetWeaver Information Lifecycle Management >

Virtualization:
SAP NetWeaver Landscape Virtualization Management >

Consolidation:
SAP Landscape Transformation >

Dematerialization:
SAP Document Presentment by OpenText >

Any questions?
Please contact us via e-mail

Get Up and Running Quickly

Realizing benefits and achieving
a faster go-live, while reducing
business risks

The SAP Services organization can help you define, execute, and rapidly realize benefits from your sustainability strategy by providing a focused services portfolio with a high degree of predefinition and repeatability – delivering high ROI and sustainable success.

Located in every region of the world, SAP consultants bring together customer needs, innovation, technology, and best practices to provide solutions that exceed global market requirements. Our consultants have deep solution insight and extensive expertise in multinational SAP implementation projects and can act as catalysts to enable business transformation and leadership.

Givaudan
Hear how Givaudan and SAP Consulting delivered a successful implementation of SAP EHS Management with no business disruption.
Watch the video >

Danone
Explore how this food and drink manufacturer
is measuring the carbon footprint for over
35,000 products.
Watch the video >

Get Up and Running Quickly

Sustainability Strategy
SAP Services can help you become a more sustainable enterprise by defining your specific sustainability strategy, setting up your sustainability road map, and putting it into practice. Based on an analysis of your company's initial position, we will propose suitable sustainability initiatives and assess their potential impact on your business. These might include appropriate approaches for corporate social responsibility, safe operations, energy and resource efficiency, and sustainable product design and production. SAP Services can also assist you in enhancing transparency by recommending a suitable data and information solution landscape.

Operational Risk Management
SAP services for managing operational risk, hazardous substances, incidents, and people health and safety can help accelerate the management of hazardous substances, while reducing incidents and employee absences. We can also support incident management processes – from efficient implementation support and long-term maintenance to quality assurance.

SAP Consulting can help maximize the benefits of operational risk management by optimizing the transfer of your individual business requirements and processes.
Learn more >

Product Safety and Stewardship
SAP services for product safety and stewardship help you efficiently comply with regulations, assure safe usage, manage their supply chain, and to optimize the environmental footprint of the end of life of their products. This is achieved through compliant product design, suitable material classification, global label management, generation and automatic shipment of material safety data sheets, and execution of storage safety checks, packaging and transportation of hazardous materials. Best practices and predefined, packaged service offerings enable rapid implementation, both on premise and on demand.
Learn more >

Get Up and Running Quickly

Energy and Environmental Resource Management
SAP solutions and services for energy and environmental resource management can help manage energy usage and consumption – as well as regulatory requirements – more effectively. Through comprehensive reporting and dashboards, you can analyze near real-time meter data to calculate emissions and monitor energy consumption. Preconfigured services streamline this process by providing calculations, reports, dashboards, and content to facilitate and leverage the integration of SAP EHS Management, SAP MII, and the SAP NetWeaver Business Warehouse application. SAP consultants can render the software within the SAP NetWeaver Business Client software or the SAP NetWeaver Portal component for a common user experience.
Learn more >

Sustainability Reporting and Analytics
SAP solutions and services for sustainability reporting and analytics help track and communicate sustainability performance by setting objectives, targeting business improvement opportunities, and monitoring initiatives. To enable timely and accurate completion of regulatory reporting requirements, SAP services for sustainable reporting and analytics facilitate the extraction of information from operational systems across all dimensions of sustainability. Your sustainability data and business setup can be quickly and efficiently streamlined through predefined services.
Learn more >

SAP services help you define and
execute your specific sustainability
strategy and road map.

Green IT
Green IT services help you achieve more efficient use of IT resources – reducing energy consumption in data centers and of distributed IT assets. Also, the total cost of ownership can be lower by improving operational efficiency and optimizing e-waste management.
Learn more >

Sustainability Implementation Quality
Sustainability quality assurance services provide a proactive review of the design and implementation of SAP solutions for sustainability. This service leads to early detection of potential software risks and offers actionable risk mitigation recommendations.

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