Sustainability, both environmental and social, is a growing priority for many enterprises. A 2021 Harvard Business School article cites that an estimated 90 percent of S&P 500 companies published a Corporate Social Responsibility report in 2019, compared to just 20 percent in 2011. This increasing focus on sustainability is largely driven by the recognition that respecting and protecting the planet and its people is the right thing to do, but there are also some important external drivers
- Consumer behaviors are reflecting growing environmental and sustainable awareness. Market researcher Nielsen reports in 2023, consumers will be holding brands responsible for progressing the world’s state of sustainability.”
- Millennial and Gen Z workers expect high environmental and social standards from employers, as highlighted in a November 2022 fortune.com report
- News and social media pick up and amplify perceived corporate sustainability transgressions, impacting brand value and causing reputational damage.
- Sustainability regulation and reporting requirements continue to grow. In December 2022, the EU published its Corporate Sustainability Reporting Directive for large companies and listed SMEs as part of its wider Green Deal.
Sustainability is set to become as much a part of the fabric of business as financial and operational performance. SAP Cloud for Sustainable Enterprises delivers company-wide functionality and industry-specific features to help incorporate sustainability in business at scale. It embeds operations, experience, and financial insights into core business processes, helping enterprises in their drive to achieve the targets of zero emissions, zero waste, and zero inequality. This article considers the use case of managing supplier risk to assure ethical practices throughout the supply chain. It looks at how SAP Ariba helps enterprises fulfill their ethical obligations and meet regulatory requirements in this area and the value that Arvato Systems adds for enterprises in their sustainability journey.