Back to top

Image: Bigstock

SAP, Ambipar Partner for Sustainability With Net Zero as a Service

Read MoreHide Full Article

SAP SE (SAP - Free Report) has joined forces with Ambipar to launch Net Zero as a Service, aimed at addressing climate change. This initiative integrates SAP's powerful cloud solutions with Ambipar's extensive expertise in carbon credit generation and trading, helping customers effectively track and mitigate their carbon emissions.

With Net Zero as a Service and its alliance with Ambipar, SAP is enhancing its dedication to offering holistic sustainability management solutions, enabling customers to prepare for the future, the company added.

Net Zero as a Service enables SAP customers worldwide to effectively navigate their entire decarbonization journey. By leveraging SAP's ERP-focused and AI-driven solutions, businesses can achieve comprehensive carbon management. This allows them to create a unified data foundation, accurately measure emissions, and make informed decisions that are both financially viable and environmentally responsible. Customers can offset their emissions by purchasing internationally certified carbon credits through Ambipar's technology platform, AMBIFY, which is accessible via the SAP Store.

Ambipar is in the process of testing Net Zero as a Service within its operations, using SAP's solutions to achieve its ambitious growth targets this year. This pilot will enable a wider rollout for SAP customers while helping Ambipar improve efficiency, drive innovation and manage its environmental impact.

SAP SE Price and Consensus

SAP SE Price and Consensus

SAP SE price-consensus-chart | SAP SE Quote


SAP is dedicated to achieving net zero across its value chain by 2030, aligned with the 1.5°C target from the Paris Agreement, which requires greenhouse gas emissions to peak before 2025 and reduce by 43% by 2030 to limit global warming. To reach this goal, the company plans to transition most customers to cloud solutions, which will reduce emissions and enhance management capabilities. 

Key initiatives like RISE with SAP and GROW with SAP facilitate this migration to cloud-based enterprise resource planning systems, ensuring that all cloud usage, including from partner hyperscaler data centers, relies on renewable electricity.  In this regard, SAP and other cloud providers are increasingly investing in green data centers, focusing on sustainability and minimizing environmental impact.

 

Sustainability Initiatives of SAP’s Peers 

Sustainability is vital for all participants at this stage. As climate change emerges as a global focal point, companies are increasingly working toward achieving carbon neutrality. Several of SAP’s peers also recently announced their progress in this area.

International Business Machines Corporation (IBM - Free Report) has established ambitious targets for reducing greenhouse gas (GHG) emissions. The company plans to source 75% of its electricity from renewable sources by 2025, increasing to 90% by 2030. It also aims for a 65% reduction in operational GHG emissions by 2025, using 2010 as a baseline (adjusted for acquisitions and divestitures). By 2030, IBM seeks to achieve net-zero operational GHG emissions, targeting residual emissions of 350,000 metric tons of CO2-equivalent (mtCO2e) or less.

Oracle Corporation (ORCL - Free Report) is committed to achieving net zero emissions by 2050, with a goal to halve its greenhouse gas emissions — both operational and from the supply chain —by 2030, using 2020 as the baseline. This target has been approved by the Exponential Roadmap Initiative, an accredited partner of the United Nations’ Race to Zero. Also, the company aims to match 100% of its energy usage for Oracle Cloud Infrastructure with renewable sources by 2025.

Adobe Inc. (ADBE - Free Report) has established science-based targets aligned with the 1.5°C scenario. The company aims for a 42% reduction in absolute Scope 1 and 2 GHG emissions by 2030, using 2022 as the baseline. Furthermore, Adobe targets a 52% reduction in Scope 3 GHG emissions per USD value added by 2030 from 2022 as the baseline year. The company also plans to achieve 100% renewable electricity by 2025 and aims for net zero emissions by 2050.

SAP’s Zacks Rank & Stock Price Performance

SAP currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 79% in the past year compared with the sub-industry's growth of 33.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Investment Research
Image Source: Zacks Investment Research

Published in