Tags: Software Solutions, Technology Industry
By Anna Valmero
MAKATI CITY, MANILA – For software firm SAP, “sustainable” business practices is not only a corporate social responsibility (CSR) initiative meant to enhance the company’s image. It equates to huge savings for the company, according to an executive.
“Sustainability is a megatrend in business, like globalization,” says Atul Patel, vice president for business user and platform for SAP Asia Pacific and Japan.
“Taking steps into sustainability is inevitable because it is not just about tree hugging, it is about business. Today, we cannot imagine living without water or coal because they are essential to life and business. By managing your social and environmental risks, you are increasing profits.”
SAP adopted its sustainability initiative with a clear goal to reduce the company’s global carbon footprint. According to Patel, this generated about 90 million euros in savings for the company last year and reduced energy use by seven percent.
Sustainability is a core strategy for the company because it is a sound business case that pay brings significant returns, more than simply projecting a “green” image, Patel adds.
Citing SAP’s latest Sustainability Report, Patel says air travel is the biggest contributor to a company’s carbon footprint (at 35 percent).
The reduction of flights among executives and the use of video conferencing for real-time meetings, among other technologies, proved beneficial for the company’s commitment to reduce its impact on the environment.
With significant carbon reductions, Patel hopes to influence client companies, including those in the Philippines. SAP, one of the biggest business software companies in the industry, has a sizable base in the manufacturing and consumer sectors.
One of its clients is Pepsi Co., which manufactures Tropicana juice drink. Patel says most people would think the bottling process or refrigeration costs for storage contribute to the high carbon footprint of the product.
But he says it was actually the use of chemical fertilizers for orange trees that accounts for more than 50 percent of the business segment’s environmental impact. By identifying the impact of fertilizers, Pepsi cut its farming costs by 30 percent using sustainable practices such as using organic fertilizers.
The need to make sustainability a pillar in every corporation also paves the way for new expertise, such as a “corporate sustainability officer” that handles and maps the green efforts of the company in terms of holistic impact of business operations.
Simple solutions such as unplugging unused electronic devices can lead to direct energy conservation. Even when turned off, a laptop that is plugged into a power outlet consumes at least ten percent of its energy ratings per hour so; a 65watt laptop, when plugged but turned off, consumes 6.5W in an hour or about 260W when plugged for 40 hours or a week.
SAP has drafted a Sustainability Map that offers a holistic view of its sustainability implementation across business processes.
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