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SAP’s latest Sustainability Report is teh awesome!

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SAP's 2009 Sustainability Report using OAuth!

SAP released its 2009 Sustainability Report during the week and if last years Sustainability Report was good, this one is outta the park!

SAP released their first Sustainability Report in November 08 reporting on the 2007 year. It was a good initial effort (prepared in accordance with the GRI guidelines and achieving a ?C? level certification) delivered in your typical PDF format. The main innovation the first year was that there was a separate site for readers to leave feedback.

Then in May 2009 SAP released their 2008 Sustainability Report. This report achieved a B+ GRI rating and was far more interactive than the previous report (or any Sustainability Report I had previously seen). It allowed readers to interact with the data and showcased the interactive Sustainability Map which categorised core business processes related to sustainability and mapped them into distinct categories. Again SAP solicited feedback from users.

Now the 2009 Sustainability Report takes this to the next level. It:

  • achieved an A+ GRI rating by reporting on more sustainability GRI indicators and by adding new metrics, including Renewable Energy, Business Health and Culture Index, and Employee Satisfaction
  • includes the new edition of the Sustainability Map
  • establishes short- and long-term goals for many of SAPs metrics beyond carbon footprint
  • contains more embedded interactive dashboards leveraging data sourced from SAP Carbon Impact and SAP Business Objects Sustainability Performance Management
  • enables readers to comment on SAPs performance and solutions in the context of the report (no longer on a separate site) and
  • SAP will now produce quarterly updates on their carbon performance

There’s also the Materiality Matrix and the Create Your Own sections where you can try out different scenarios to see how they would affect SAP’s goals.

What do I love about this report?

  • I love how the two co-CEO’s went beyond simply putting their name to a letter at the start of the report (that’s so 2009!). They took the time out to record videos to introduce the Sustainability Report and talking about SAP’s commitment to sustainability.
  • I love the ability to leave comments on every page. The comment system allows you to login using your Twitter, LinkedIn, Yahoo, FaceBook, Google, or AOL credentials and uses OAuth for account verification. The geek in me just loves that (hence the screenshot above).
  • I love how the performance summary presents the data in stunningly simple to digest format. Clicking on the data here drills down into more detail on those numbers. The detail section is often highly interactive. For example in the carbon footprint section of the report you can see the carbon footprint by quantity, or by employee, by region or overall, by emission scope and clicking on a year gives a breakdown for that year specifically. Also, clicking on the printer icon allows you to print, while clicking on the Excel icon lets you download the data! and
  • I love how this report makes SAP’s sustainability data and their targets so transparent

Scott Bolick, SAP’s VP Sustainability Solutions, informed me that readership of SAP’s Sustainability report went from 3,500 for the 2007 PDF report to approx 30,000 readers for the online 2008 report. On top of that, many of SAP’s customers after looking at it, asked if they could purchase the technology to produce a similar report themselves! That’s a ringing endorsement right there.

It will be interesting to see what the readership of this report will be – you gotta suspect it will blow way past the 30,000 that last year’s report had.

[Disclosure – SAP are GreenMonk clients]

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This is a very opportune time to be investing in sustainability management software!

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Greenhouse gas emissions

Photo credit James Jordan

I wrote about SAP’s launch of their Sustainability Performance Management software recently. This is a space which is of massively growing importance given the increasing regulations around greenhouse gas emissions, for example.

I was heartened then to hear in a recent discussion with SAS that their Sustainability Management software was launched in April 2008!

For background, SAS are a business analytics software company with with an enviable record of 34 years growth and profitability reporting global revenues of US$2.31 billion in 2009 up 2.2% over 2008. SAS invested 22% of 2008 in R&D (an unusually high figure in the industry) have over 11,000 employees, and 45,000 customer sites in 100 countries. This is a significant company with a serious track record in research and development.

No surprise then that their solution, like the SAP one, is also very comprehensive, encompassing industry templates (GRI, CDP, IPIECA, etc.), customisable pre-built KPI dashboards, reporting, forecasting, scenario modeling (using the AMEE universe of data for scenario analysis – [disclosure – AMEE are a GreenMonk client]).

And, according to Alyssa Farrell, Marketing Manager for SAS Sustainability Solutions, the software is extremely inter-operable:

SAS also recognises that organisations may have other technologies in-house, so our software can be adapted to whatever environment they may already have. SAS has read/write access to any ERP system, we work within the Microsoft Office environment, so you can even use Excel to pull down SAS Analytics. SAS recognises that there is not one solution for everybody and so all the different solutions from SAS recognise that we need to work within this very complex technology application environment.

SAS have had some big customer wins with their Sustainability software:

With Microsoft and CA also entering this space, I think it is fair to say, Sustainability software is here to stay. In fact, Groom Energy Research reported that climate venture capital investment in Enterprise Carbon Accounting (ECA) firms topped $46m last year, the number of companies offering carbon software solutions grew from 40 to 60 over the course of the year and they predicted that the emerging US market for carbon reporting software is set to grow seven fold over the next two years.

Obviously aware of these trends when we asked Alyssa about pricing, she responded:

The way that our solution is priced is scaled to the size of the organisation [or a division of an organisation] and recognising that it is an early market and we need to get out there and seed our customers, this is the time to buy SAS for Sustainability!

Now, it would seem, would be a very opportune time to be investing in sustainability management software!

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SAP’s Sustainability Performance Management software launched

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SAP BusinessObjects Sustainability Performance Management

I wrote a piece on SAP’s new Sustainability Performance Management (SPM) tool a few weeks back. At time of writing it was very much in the realms of speculation as the product was, as yet, unreleased.

Last Thursday, Dec 10th, SAP announced the release of the software and having been given a preview of the software the previous day by SAPs Charles Zedlewski, I thought it time to circle back with an update on my previous speculations.

It turns out that I jumped the gun a bit when I posited that:

SAP have taken the next logical step with their Sustainability report. They have productised it!

The current version of the SPM will not output a sustainability report similar to SAP’s hugely innovative one of earlier this year although executives I talked to would not rule out that coming in future versions.

What the SPM will do for organisations is reduce the amount of time spent tracking down, collating data and creating reports. It can automatically collect KPI data across all sustainability dimensions (economic, social and environmental) from a variety of sources, so customers can move beyond manual data collection and spreadsheet-based recording.

The library of nearly 400 KPI’s includes a variety of sustainability metrics, including those based on the Global Reporting Initiative (GRI) standard as well as the Walmart sustainability index. If you require customisation (and what organisation doesn’t?) building your own custom KPIs or editing the installed ones is quite straightforward.

The data can be pulled from existing SAP apps within the organisation, it can integrate with 3rd party systems or information can be entered manually and then quickly reported either internally or externally. Audit trail functionality helps ensure integrity and transparency of the data.

Two further things I would like to see from this application are:
1. The ability to output at the touch of a button a Sustainability Report similar to SAP’s recent one and
2. An on-demand option (on-demand is SAP for SaaS!) – an on-demand version would ensure that organisations are always using a version which is abreast of the latest green regulations

Having said that, this is a very solid looking v1 with an intuitive UI and a very comprehensive back-end.

I have a call with SAS this afternoon to learn more about their SAS for Sustainability Management product – it will be interesting to see how it stacks up beside SAP’s SPM.

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SAP’s new Sustainability Performance Management tool could be a real game-changer!

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SAP BusinessObjects Sustainability Performance Management

Sustainability reporting is a bit all over the place. Standards, such as they are, are many, not widely agreed on, and are loosely observed.

One of the better sustainability reports to emerge this year was SAP’s. Unlike the staid PDF documents most companies put out, SAP’s is a website which allows reasonably deep linking ( here’s the section on SAP’s 2008 Carbon Footprint, for example – notice how you can change it to see footprint by region, KTon or Kg/employee, and get extra info by rolling the mouse over the charts). SAP also rolled out a discussion area where people can comment on SAP’s materiality and the Sustainability report.

Hugely impressive stuff from SAP and extremely innovative.

SAP regularly in discussions around sustainability make the point that while their carbon footprint of almost 500,000 tonnes per annum is significant, the combined footprint of their clientbase is 10,000 times their own! SAP are taking the line that while it is important for SAP to reduce their own emissions, helping reduce their clients carbon footprint could produce a far better long-term planetary outcome. As long as companies remember that, as I have said before, the correct order is Planet first, then People, and then Profit.

SAP have taken the next logical step with their Sustainability report. They have productised it!

Now the technology to produce a sustainability report similar to SAP’s will be available to all SAP customers. The app will connect into most ERP apps to pull out the data for Sustainability Performance Management reporting so being an SAP customer is not a pre-requisite for getting this to work, as far as I understand it.

The app comes with a library of 100+ sustainability framework reporting KPI’s, it comes with a ton of scorecards and dashboards for reporting, which allows companies to focus on improving sustainability performance as opposed to gathering data and compiling reports.

The product is not finalised yet and won’t be made available for another month or two but if it delivers on half of what it promises, it is a potential game changer in the world of sustainability reporting.

I hope to interview someone from SAP shortly to get more details on SAP’s Sustainability Performance Management tool, and as soon as I do, I will post the interview here.

[Disclosure – SAP talked to me about their Sustainability Performance Management at SAP TechEd 2009. They paid for my travel and accommodation to attend this event]