From Metrics, to Tactics, to Strategy: Embedding Sustainability across the Value Chain
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Thomas Odenwald, Senior Vice President, SAP When it comes to building an informed sustainability roadmap, how should a company move from metrics, to tactics, to strategy? What companies are embedding sustainability across their entire value chain, and how are they leveraging the existing system infrastructure as a central part of the solution?
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From Metrics, to Tactics, to Strategy: Embedding Sustainability across the Value Chain
- 1. From Metrics, to Tactics, to Strategy: Embedding Sustainability across the Value Chain The New Metrics of Sustainable Business 2013 Thomas Odenwald, SAP
- 2. Embedding Sustainability across the Value Chain © 2012 SAP AG. All rights reserved.
- 3. With >248,000 Customers in 188 countries, Our Impact Is Significant SAP Touches 60+% of the World’s Business of the world’s athletic footwear provided >86% >70% of the world’s chocolate production automobiles manufactured per day >77,000 households use energy more responsibly with Smart Grid solutions >30 million people work more safely using People Safety solutions >2 million >72% of the world’s beer production >50% of the world’s packages couriered © 2012 SAP AG. All rights reserved.
- 4. 4 “ 96% of CEOs believe sustainability should be integrated into the strategy and operations of a company (up from 72% in 2007).” Source: A New Era of Sustainability, UN Global Compact-Accenture CEO Study 2010 © 2012 SAP AG. All rights reserved.
- 5. Design Source & Procure Produce & Comply Store & Ship Sell & Use EOL Information Technology is key to holistically manage economic, social, and environmental risks and opportunities in a circular economy Products, Recipes, Regulations, Specs, BoM’s Assets, Parts, Equipment, RegulationsCustomers, Distributors, Channels Raw Material/ Component Suppliers Take-back, Reuse, recycle, dispose
- 6. © 2012 SAP AG. All rights reserved. Sustainable Design Processes © 2012 SAP AG. All rights reserved.
- 7. Design Source &Procure Produce & Comply Store & Ship Sell & Use EOL Information Technology is key to holistically manage economic, social, and environmental risks and opportunities Products, Recipes, Regulations, Specs, BoM’s Assets, Parts, Equipment, RegulationsCustomers, Distributors, Channels Raw Material/ Component Suppliers Take-back, Reuse, recycle, dispose
- 8. Supplier Manufacturer Buyer Product Stewardship Network Declaration Exchange Sustainability Assessment - Product declarations - Regulation updates - Substance lists - Product category KPIs - Scorecards - Benchmarks - Abatement/optimization © 2012 SAP AG. All rights reserved. Sustainable Supply Chain Networks © 2012 SAP AG. All rights reserved.
- 9. Materiality Transparency Efficiency Transformation THE JOURNEY Engage around * Risk * Profitability * Aspiration Analysis Benchmarking KPIs & Targets Reporting Continuous Innovation of Processes and Products Disruptive Innovation of Processes and Products © 2012 SAP AG. All rights reserved. Sustainable Supply Chain Networks © 2012 SAP AG. All rights reserved.
- 10. Design Source & Procure Produce & Comply Store & Ship Sell & Use EOL Information Technology is key to holistically manage economic, social, and environmental risks and opportunities Products, Recipes, Regulations, Specs, BoM’s Assets, Parts, Equipment, Regulations Customers, Distributors, Channels Raw Material/ Component Suppliers Take-back, Reuse, recycle, dispose
- 11. Enterprise Resource Planning © 2012 SAP AG. All rights reserved.
- 12. Design Source & Procure Produce & Comply Store & Ship Sell & Use EOL Information Technology is key to holistically manage economic, social, and environmental risks and opportunities Products, Recipes, Regulations, Specs, BoM’s Assets, Parts, Equipment, RegulationsCustomers, Distributors, Channels Raw Material/ Component Suppliers Take-back, Reuse, recycle, dispose
- 13. Precision Retail Slide Precision Marketing © 2012 SAP AG. All rights reserved.
- 14. Design Source & Procure Produce & Comply Store & Ship Sell & Use EOL Integrated Strategy through Integrated Reporting All resources. All people. Across the value chain. + Sustainability Reporting, GRI Reporting, CDP Reporting, etc.) © 2012 SAP AG. All rights reserved.
- 15. © 2012 SAP AG. All rights reserved. Integrated Reporting © 2012 SAP AG. All rights reserved.
- 16. Employer Ranking Capability Building Social Investment Women in Managment Employee Retention BHCI Employee Engagemt Total Energy GHG Footprint Data Center Energy Renewable Energy Revenue Operating Margin Customer Success www.SAPIntegratedReport.com SAP is an IIRC pilot Connecting non-financial with financial performance 1% turnover less = €62 million in value for SAP 20% GHG reduction since 2008 = €235 million in value for SAP Online and downloads 50,000+ visitors Impact on investors © 2012 SAP AG. All rights reserved. Integrated Reporting © 2012 SAP AG. All rights reserved.
- 17. Transformation Define around * Risk * Profitability * Aspiration Measure and Act based on * Analysis * Benchmarking * KPIs & Targets * Reporting Innovate * processes * products Materiality Metrics Transparency & Efficiency + + = CONCLUSIONS Integrated sustainable strategy * to grow profitable and sustainable * to drive economic opportunity for all © 2012 SAP AG. All rights reserved.
- 18. Ask: Lead the change! 18 thomas.odenwald@sap.com Thank You !
- 19. Retailer Processor Exporter Rural Sourcing Management Farmer Cooperative - Training/best practices - Price information - Micro credits - Traceability/certification - Buying/selling - Inventory Mgt - Financial services Cooperative Farmer © 2012 SAP AG. All rights reserved. Sustainable Supply Chain Networks © 2012 SAP AG. All rights reserved.