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Welcome
Welcome
Objective
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Welcome
Why Does SAP Do This?
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Welcome
Definitions of Sustainable Development (1/4)
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Welcome
Definitions of Sustainable Development (2/4)
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Welcome
Definitions of Sustainable Development (3/4)
Competing Goals?
People
Planet
Profit
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Welcome
Definitions of Sustainable Development (4/4)
SAP (2009)
Balance short and long-term
profitability by holistically managing
economic, social, and environmental
risks and opportunities.
People
Planet
Triple
Win
Profit
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Welcome
Why sustainability and innovation are connected
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Welcome
The Sustainability Challenge Inspires Innovation
Design Thinking
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Welcome
Course Structure
Weeks 1 through 6
Several videos and self-tests
Week 1
Business
Case for
Sustainability
Online forum
(collaborate, ask questions)
Video 1
Self test 1
Video 2
Self test 2
Video n
Self test n
Weekly assignment
Week 2
Sustainable Strategies
Week 3
Sustainable Processes
Week 4
Sustainable Processes
Record of Achievement
Week 5
Stakeholder Engagement
Week 2
6
Sustainability
Sustainable Strategies
Reporting
online test)
Week 7
Final Exam
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10
Thank you
Contact information:
open@sap.com
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12
Week 1 Unit 2:
Root Causes
Root Causes
Introduction
?
2014 SAP AG or an SAP affiliate company. All rights reserved
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Root Causes
Population Growth
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Root Causes
Economic Growth
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Root Causes
Linear Value Chains
Impact
Supply at risk
Increased land use by landfills
Cost of $375 billion to manage waste
by 2025 (almost double from 2010)
5% of global greenhouse gas
emissions caused by waste
decomposition
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Root Causes
Increased Risk Through Complexity
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Root Causes
Ubiquitous Information Exchange
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Thank you
Contact information:
open@sap.com
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Week 1 Unit 3:
Sustainable Value Creation
69%
49%
Consumer/customer demand
47%
Personal motivation
41%
38%
Governmental/regulatory environment
Impact on business (e.g., water, food,
poverty, infrastructure)
Investor/shareholder pressure
27%
15%
12%
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Early 1990s
Global negative TV footage on sweatshops
and child labor
Significant revenue loss
Company valuation cut in half
Result
Back to No.1 athletic footwear maker
Highly ranked in sustainability indices
Frontrunner for sustainability initiatives
2014 SAP AG or an SAP affiliate company. All rights reserved
Public
Early 2000s
Result
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2004
Strong customer demand to consider
energy and ecology in six GE core
businesses
Reduced innovation speed
GE research confirmed external trends
Result
$20+ billion annual revenues from highly
profitable ecomagination products
Program catalyzes sustainable product
design across all product lines
Staying ahead and influencing regulations
2014 SAP AG or an SAP affiliate company. All rights reserved
Public
Early start
Beyond Petroleum rebranding in 2000
Increase in brand value and employability
NGO criticism (greenwashing) in 2005
Implications
Renewed focus on business risk and the
cost of compliance
Ongoing quest to increase resource
productivity and value chain efficiency
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In our own
company
For our
customers
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Thank you
Contact information:
open@sap.com
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Week 1 Unit 4:
Engaging Top Management
Perception (intangibles)
Issues with PR, disasters or accidents,
talent acquisition, employee engagement
Purpose, policies, NGO dialogue, reporting
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A bigger purpose
Size the opportunity
Outline the risks
Project impact on
business model
product portfolio
triple bottom line
shareholder value
brand,
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Timing is everything
New CEO
Company crisis
Compelling industry event
Public
Thank you
Contact information:
open@sap.com
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Week 1 Unit 5:
Organizational Setup for
Sustainability
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Champions network
Dedicated internal multipliers
Embrace grassroots efforts
Advisory council
Investors, customers, academia,
NGOs, partners, regulators,
employees
New talent
Attract newly required expertise
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Unclear competencies
Which decisions and policies do you own?
Missing budgets
Youll need to increase investment
to capture the full returns over time
2014 SAP AG or an SAP affiliate company. All rights reserved
Public
Thank you
Contact information:
open@sap.com
Public
Week 1 Unit 6:
The Role of IT
The Role of IT
Two Perspectives
IT = problem
Energy (2.3% of global consumption)
Rare earth elements
Recycling, e-waste
Digital divide
IT = solution
Global platform for awareness, action
More transparent, efficient, and
transformed business practices
More inclusive business models
(shared value)
Reduced environmental impact ($1.86
trillion global savings [today-2020])
Source: Global e-Sustainability Initiative (GeSI), Smarter 2020
2014 SAP AG or an SAP affiliate company. All rights reserved
Global
emissions
55
Global IT
abatement
potential
IT caused
emissions
9.1
1.3
The Role of IT
The Problems
Energy consumption
+3.8% per annum (2011-2020)
30 Petawatt hours in 2020 (2.3% total)
E-waste, toxicity
20-50 million tons e-waste (global 2011)
80% of electronics go to landfill/incineration
2% of US trash, but 70% of toxic waste
Digital divide
Increasing economic inequality
Exclusive information access
Source: Gartner, IDC, GeSI, EPA, Electronics TakeBack Coalition
2014 SAP AG or an SAP affiliate company. All rights reserved
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The Role of IT
Economics: Enterprise Resource Planning (ERP)
LoB 1
Org Unit
...
Process automation
Real-time transparency
Efficient cash management
Optimized inventories and
logistics
More seamless operations
Inherent compliance
Team 007
Team 73
Team 23
Team 47
Team 38
Team 31
Team 44
Team 34
Team 19
Team 15
Source: Wikipedia
2014 SAP AG or an SAP affiliate company. All rights reserved
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The Role of IT
Environmental: Emission Abatement Potential of IT
Total (2020)
9,1
Transformation
Transformation
2.8
Efficiency
4.1
Transparency
2.3
Efficiency
Optimize an existing process to achieve
better results with fewer resources.
E.g. route optimization, simulation,
analysis,
Transparency
Data collection and communication
E.g. usage reports
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The Role of IT
Social: IT Empowers Local Communities
Shea nuts
Resource of food and cosmetics industries
Source of family income
No demand and price transparency
Involved parties
10,000+ Nut-collecting women
Wholesale, consumer products
StarShea Inc. (Social business)
Connectivity
Transactions
Impact
Income increase of rural women
Fair price through demand transparency
Reliable , fair trade nut supply
Source: www.starshea.com
2014 SAP AG or an SAP affiliate company. All rights reserved
Public
The Role of IT
Solutions for Sustainable Business
Sustainable Design
Sustainable Sourcing and
Procurement
Recycle
Sustainable Manufacturing
Sustainable Logistics
Sustainable Consumption
Design
All resources
Sell &
Use
All people
Source
Across the
value chain
powered by
Store
& Ship
Produce
Source: McKinsey, 2011: Big data: The next frontier for innovation, competition, and productivity
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Thank you
Contact information:
open@sap.com
Public