SAP SE ( SAP Quick Quote SAP - Free Report) recently rolled out its latest offering — SAP Product Footprint Management — to help business enterprises reduce their carbon footprint and drive sustainability. The cloud-powered solution is built on the company’s SAP Business Technology Platform.
With sustainability targets becoming as important as financial objectives amid rapid global warming, SAP’s solution will help companies to increase transparency and measurement functionality across the supply chain operations to improve sustainability.
The SAP Product Footprint Management solution is designed to combine data from various solutions that control production processes and assimilate “master data” from applications such as SAP S/4HANA. Afterward, it calculates the impact of numerous production scenarios on to the environment, noted SAP.
The data-powered method enables organizations to gain access to actionable inputs across the entire value chain and helps to adopt the process that is more ecologically sustainable.
With the help of SAP’s new Product Footprint solution, businesses can also exchange data with their clients, partners and suppliers to boost transparency across the organization’s scope 1, scope 2 and scope 3 emissions, added SAP.
Initiatives to Drive Sustainability Bode Well
SAP Product Footprint Management solution is expected to witness healthy uptake as companies are focused on reducing carbon gas emissions.
Per a report from Emergen Research, the worldwide carbon footprint management market is expected to witness a CAGR of 5.5% between 2021 and 2028 and reach $14.74 billion.
The market is being driven by increasing requirements for business entities to conform to carbon-emission compliances.
Climate change has become a global flashpoint in the last few decades. Governments and global organizations like the United Nations are striving to promote more sustainable practices to avoid the terrible effects of climate change. Over the next decade,
United Nations along with the participants of the Paris Agreement is working on lowering greenhouse gas (GHG) emissions to restrict average global temperature rise to 1.5 °C to ensure a habitable planet.
Most of the big companies like Apple,
Microsoft ( MSFT Quick Quote MSFT - Free Report) , Cisco ( CSCO Quick Quote CSCO - Free Report) and Oracle ( ORCL Quick Quote ORCL - Free Report) have pledged to cut their carbon footprint. Recently, Cisco underscored its commitment toward achieving net zero for GHG emissions across all scopes (product use, operations, and supply chain) by 2040 and net zero for global Scope 1 and 2 emissions by 2025.
Microsoft has pledged to be carbon negative by 2030 and is working on removing all emissions since its inception by 2050.
In Jun 2021, Oracle highlighted that it was working toward fueling its worldwide operations (both cloud and facilities) with 100% renewable energy by 2025. At present, the company’s cloud regions in Europe along with 51 of its offices across the globe are running entirely on renewable energy.
Zacks Rank & Share Price Movement
SAP currently carries a Zacks Rank #3 (Hold). The stock has returned 9.9% compared with
industry’s growth of 29.6% in the past year.
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