On Tuesday, tech giant SAP and Boston Consulting Group announced a partnership to develop sustainable business strategies that aid the biggest global companies to cut carbon emissions and fight against global warming.
While thousands of companies have pledged to cut their planet-warming emissions by the middle of the century, emissions across the economy continue to rise, leaving the world on course to suffer the catastrophic impacts caused by climate change.
Despite policymakers pushing companies to get a better grip on the environmental impact of their supply chains, including in Europe through the Corporate Sustainability Due Diligence directive, most companies are some way from being able to do so.
In a recent study, just 9% of executives from 1,290 companies surveyed by Boston Consulting Group (BCG) said they were able to fully measure their emissions.
To help fix the problem, SAP, which counts 85 of the world’s 100 biggest companies as customers, and BCG said they would combine their carbon tracking and measurement technology and services to help inform clients’ decision making.
“Being sustainable requires coordination across the value chain, and this is where SAP’s partnership with BCG plays a key role,” SAP Chief Executive Christian Klein said in a statement.
“Bringing together BCG’s expertise, tools, and services with SAP’s technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.”
The SAP and BCG Sustainability Transformation venture is currently being piloted ahead of a broader launch in the third quarter.
BCG Chief Executive Christoph Schweizer concluded that companies who participate actively and first would be rewarded with a share price premium of 10 percent and 15 years of competitive advantage.
