SAP
#SAP #DelMontePH Enabling Sustainable Supply Chains Key to Reduce Carbon Emissions
Iggy Sison, chief sustainability officer of Del Monte Philippines, Gunasekar Gurusamy, sustainability solution advisor for SAP Asia Pacific and Japan, and Simone Pigason, head of digital supply chain of SAP Southeast Asia.
Sustainability has become a necessity for organizations in today’s world as more consumers seek sustainable brands, investors consider environmental, social, and governance (ESG) initiatives for investment decisions, and governments increase their regulations.
A recent report by Kyndryl revealed that 77 percent of Southeast Asian businesses are concentrating on ESG initiatives. One of the growing efforts made by organizations involves mostly the decarbonization of their supply chains. According to the UNGC-Accenture CEO study, 60 percent of carbon emissions worldwide come from organizations’ supply chains.
In a virtual event conducted by the Supply Chain Management Association of the Philippines (SCMAP) in partnership with SAP SE (NYSE: SAP), titled “Enabling Sustainable Supply Chains”, SAP leaders, joined by Del Monte Philippines, shared how to reduce emissions in the supply chain and leverage data and technology to achieve sustainability goals.
Decreasing Emissions on the Three Scopes
Companies’ carbon emissions are divided into three scopes. This includes Scope 1, which is emissions from businesses’ own operations; Scope 2, which involves emissions from purchased utilities from third parties like electricity; and Scope 3, which covers all the other emissions in the entire value chain. This ranges from employee commute to consumer behavior when using the company’s products, among others.
During the event, Iggy Sison, Chief Sustainability Officer of Del Monte Philippines, imparted the brand’s initiatives to realize a net zero carbon emissions goal in the three scopes. “The company is now shifting third-party delivery transport to double-decker trucks to reduce emissions. Aside from that, our goal is to decrease emissions at our production facility by 3 percent per year, install solar power in our plant and plantation, expand measurement to include Scope 3 emissions, and more.”
Leveraging Data and Technology for a Clear Path Forward
However, for businesses to have a clear sustainability journey, Simone Pigason, Head of the Digital, Resilient, and Sustainable Supply Chain of SAP Southeast Asia, remarked that organizations need to address three key challenges. “Organizations must first have the ability to record their ESG data across the entire value chain to measure and ensure progress. Then, they need a robust platform that can cater to reporting needs across diverse regulatory bodies and frameworks. And finally, they must use different solutions to embed the insights gathered from the datasets into the business processes.”
Pigason then added, “Data enables businesses to forecast demand accurately to avoid unnecessary waste, especially with supply chain disruptions. Aside from increasing carbon emissions, overproduction can cause additional warehouse inventory, spoilage, and more.”
Developing Sustainable Supply Chains Now and In the Future
To help businesses kickstart their sustainability journey, Sison shared that organizations must first define their stakeholders, such as consumers, employees, and investors, among others. “After identifying these elements, companies need to determine what is a key concern for these stakeholders and prioritize the things to address. That is an important process to ensure that the sustainability initiatives are relevant, responsive, and proactive,” he added.
Meanwhile, Pigason encouraged companies to continue the conversation about sustainability in supply chains. “Talking more about sustainability can expand discussions from Scope 1 and 2 to 3. Businesses will also know where their baseline and where to start in the three scopes,” she added.
Rudy Abrahams, Managing Director of SAP Philippines, agreed on how organizations can begin developing sustainable supply chains. He emphasized the significance of sustainability now and in the future to businesses. “Sustainability can improve organizations’ profitability because businesses are reducing emissions, energy costs, and more to help the planet. Aside from that, it also helps in increasing brand value for shareholders, customers, and even employees while adhering to regulatory compliance and improving ancillary revenue streams.”
To assist businesses in strengthening their sustainability initiatives, SAP has been offering solutions like the Sustainability Navigator Tool. This solution helps businesses identify their sustainability challenges in three dimensions. This includes climate action, circular economy, and even social responsibility. It also provides solutions that can help organizations address the challenges using specific toolsets.
Visit the SAP News Center. Follow SAP on Twitter at @SAPNews.
Iggy Sison, chief sustainability officer of Del Monte Philippines, Gunasekar Gurusamy, sustainability solution advisor for SAP Asia Pacific and Japan, and Simone Pigason, head of digital supply chain of SAP Southeast Asia.
Sustainability has become a necessity for organizations in today’s world as more consumers seek sustainable brands, investors consider environmental, social, and governance (ESG) initiatives for investment decisions, and governments increase their regulations.
A recent report by Kyndryl revealed that 77 percent of Southeast Asian businesses are concentrating on ESG initiatives. One of the growing efforts made by organizations involves mostly the decarbonization of their supply chains. According to the UNGC-Accenture CEO study, 60 percent of carbon emissions worldwide come from organizations’ supply chains.
In a virtual event conducted by the Supply Chain Management Association of the Philippines (SCMAP) in partnership with SAP SE (NYSE: SAP), titled “Enabling Sustainable Supply Chains”, SAP leaders, joined by Del Monte Philippines, shared how to reduce emissions in the supply chain and leverage data and technology to achieve sustainability goals.
Decreasing Emissions on the Three Scopes
Companies’ carbon emissions are divided into three scopes. This includes Scope 1, which is emissions from businesses’ own operations; Scope 2, which involves emissions from purchased utilities from third parties like electricity; and Scope 3, which covers all the other emissions in the entire value chain. This ranges from employee commute to consumer behavior when using the company’s products, among others.
During the event, Iggy Sison, Chief Sustainability Officer of Del Monte Philippines, imparted the brand’s initiatives to realize a net zero carbon emissions goal in the three scopes. “The company is now shifting third-party delivery transport to double-decker trucks to reduce emissions. Aside from that, our goal is to decrease emissions at our production facility by 3 percent per year, install solar power in our plant and plantation, expand measurement to include Scope 3 emissions, and more.”
Leveraging Data and Technology for a Clear Path Forward
However, for businesses to have a clear sustainability journey, Simone Pigason, Head of the Digital, Resilient, and Sustainable Supply Chain of SAP Southeast Asia, remarked that organizations need to address three key challenges. “Organizations must first have the ability to record their ESG data across the entire value chain to measure and ensure progress. Then, they need a robust platform that can cater to reporting needs across diverse regulatory bodies and frameworks. And finally, they must use different solutions to embed the insights gathered from the datasets into the business processes.”
Pigason then added, “Data enables businesses to forecast demand accurately to avoid unnecessary waste, especially with supply chain disruptions. Aside from increasing carbon emissions, overproduction can cause additional warehouse inventory, spoilage, and more.”
Developing Sustainable Supply Chains Now and In the Future
To help businesses kickstart their sustainability journey, Sison shared that organizations must first define their stakeholders, such as consumers, employees, and investors, among others. “After identifying these elements, companies need to determine what is a key concern for these stakeholders and prioritize the things to address. That is an important process to ensure that the sustainability initiatives are relevant, responsive, and proactive,” he added.
Meanwhile, Pigason encouraged companies to continue the conversation about sustainability in supply chains. “Talking more about sustainability can expand discussions from Scope 1 and 2 to 3. Businesses will also know where their baseline and where to start in the three scopes,” she added.
Rudy Abrahams, Managing Director of SAP Philippines, agreed on how organizations can begin developing sustainable supply chains. He emphasized the significance of sustainability now and in the future to businesses. “Sustainability can improve organizations’ profitability because businesses are reducing emissions, energy costs, and more to help the planet. Aside from that, it also helps in increasing brand value for shareholders, customers, and even employees while adhering to regulatory compliance and improving ancillary revenue streams.”
To assist businesses in strengthening their sustainability initiatives, SAP has been offering solutions like the Sustainability Navigator Tool. This solution helps businesses identify their sustainability challenges in three dimensions. This includes climate action, circular economy, and even social responsibility. It also provides solutions that can help organizations address the challenges using specific toolsets.
Visit the SAP News Center. Follow SAP on Twitter at @SAPNews.
SAP shares industry trends that will shape 2023 and beyond
As companies now recognize the importance of Environmental, Social, and Governance (ESG) initiatives to ensure long-term success, sustainability initiatives among organizations will see significant strides this 2023.
In a recent blog by Thomas Saueressig, a Member of the Executive Board of SAP SE (NYSE: SAP), noted that in recent years, organizations had considered sustainability as an essential agenda as they focus on ESG initiatives, such as reducing their carbon footprint, investing in renewable energy sources, and promoting ethical practices.
For Rudy Abrahams, Managing Director of SAP Philippines, this trend is also the same in the Philippines. The government, for instance, has been promoting sustainability by introducing policies encouraging organizations and businesses to adopt ESG initiatives.
In 2019, the Securities and Exchange Commission (SEC) mandated publicly listed companies to submit an annual sustainability report, recognizing the relevance of ESG disclosures to support global and local sustainability goals and encourage transparency and accountability from companies.
Working to Achieve Circular Economy
As part of their ESG initiatives, large enterprises in the Philippines must contribute to achieving a circular economy. For years, the global economy has been linear and single-use, contributing to the accumulation of waste materials, which end up in landfills or the environment.
“A circular economy fosters new business prospects while preserving the environment. The advantages of implementing circular business models will significantly outweigh the existing investments that organizations must invest in,” Abrahams noted.
This year, organizations in the country are expected to become more proactive in establishing more circular operations, especially with the passage of the Extended Producer Responsibility (EPR) Act of 2022 (Republic Act no 11898). This law requires large enterprises to recover their plastic packaging waste, or they will pay a fine. This law requires large enterprises to recover their plastic packaging waste, or they will pay a fine.
“Recovery is a subset of the more significant idea of EPR. This law emphasizes the obligation of organizations to ensure that the resources and waste that is generated can be recycled or decomposed sustainably instead of ending up in landfills,” Abrahams added.
Ensuring Resilient Supply Chains
Meanwhile, there is also an existing demand for businesses to ensure resilient supply chains. Nowadays, most greenhouse gas (GHG) emissions originate from businesses’ supply chain activities. A recent study by the non-profit organization CDP (formerly the Carbon Disclosure Program) revealed that these activities make up at least 92 percent of the whole GHG emitted by a business.
“In recent years, businesses have seen the importance of having resilient supply chains. As disruptions still happen across various industries, digitalizing supply chains help organizations ensure that they provide consumers consistently with the goods and services they need and reduce their carbon emissions,” Abrahams added.
Embracing Business Transformation
Meanwhile, as companies further strengthen their sustainability and ESG initiatives this year, Abrahams noted that embracing technology remains critical to implement these changes. Companies like AC Energy (ACEN) and Globe Group have been strengthening their business transformation initiatives to achieve their goals.
For instance, ACEN, the listed energy platform of the Ayala Group, has been leading the charge in the renewables revolution and towards adopting technology. But the company knew that its green journey should start from within and by ensuring that necessary solutions are available to improve their processes.
Recently, ACEN implemented SAP S/4HANA on Azure to create a unified digital business platform covering finance, procurement, inventory, and asset maintenance across multiple entities. SAP S/4HANA has been helping the company have visibility across its entities. This is crucial to enable collaboration among ACEN’s teams as they formulate and execute strategies to increase solar and wind plant capacities while reducing inefficiencies and waste.
ACEN also aimed to achieve efficient day-to-day operations with streamlined processes on a digital platform by improving corporate governance, reducing cybersecurity risks, and minimizing paper wastage. In addition, learning a new skill, such as SAP S/4HANA, helped contribute to human empowerment in the workplace.
For Globe, on the other hand, the effective use of organizational data to make more informed decisions is critical in improving sustainability outcomes. As the country’s top telco and digital solutions platform, Globe has various entities with different processes and reporting formats.
To address this challenge, Globe migrated to SAP S/4HANA to improve fragmented processes, manual workloads, inefficiencies, lack of insights, and delayed decision-making. It also integrated SAP Fiori to improve the user experience and access to insights. Automation and fewer reconciliations also enable quicker processing of financial transactions, quicker book closing, and error-free reporting.
“These are the industry trends that we believe will share the world of business this 2023 and beyond. On our part, SAP remains committed to helping organizations transform into fully digital, resilient, and sustainable enterprises, enabled with data visibility into their business functions and processes to make the most critical strategic and operating decisions,” Abrahams concluded.
Visit the SAP News Center. Follow SAP on Twitter at @SAPNews.
SAP helps bridge skills gaps for the next generation of leaders through its University Alliances Program
February 15, 2023 — In today’s digital world, organizations have been continuously embracing and adopting modern technologies in their business practices to stay competitive. With this reality, businesses require digital skills not only from their current workforce but from the next generation of IT professionals.
According to a recent study by Asian Development Bank (ADB) and LinkedIn, basic computer knowledge and skills are required from eight out of 10 hired applicants, and four out of 10 with extensive digital literacy in Asia and the Pacific. This situation is also the same in the Philippines. Simple digital skills were needed from six out of 10 hired Filipino jobseekers and two out of 10 with advanced skills.
Meanwhile, with the plans laid by the current administration, promoting digital literacy through upskilling young Filipinos, particularly their digital skills, is also deemed critical since the country continues to strengthen its digital transformation initiatives.
“As the demand for digital skills increases, we believe that education is the key to achieving the country’s digital transformation goals. Educational institutions must be able to equip their students with the right knowledge and digital skills before they enter the workforce. Not only will it help them have more opportunities in the professional world, but it will also give them the ability to help public or private organizations innovate for business success,” said Rudy Abrahams, Managing Director of SAP Philippines.
To assist in bridging the gap and build the next generation’s digital skills for more opportunities in the professional world, SAP SE (NYSE: SAP) continues its mission to help the world run better and improve people’s lives by helping strengthen the future IT workforce through its University Alliances Program (UAP) in the country.
With more than 160 university members across the Asia Pacific and Japan (APJ), this initiative aims to enable faculty and teachers to hone the youths’ digital skills by introducing the latest technologies and methodologies with SAP solutions. Membership in this program grants access to SAP software. It also aims to help partners to learn best practices for integrating program resources into teaching and be inspired to partner with the SAP ecosystem of customers and partners.
In the Philippines, there are now at least 23 universities that are part of the program. Among these institutions is the Mapua University, one of the top IT schools in the country.
“Mapua University has been a member of the SAP UA Program since 2010. Our membership to this program allows us to equip our students with necessary digital skills that they can use to jumpstart their career and thrive as IT professionals,” said Ariel Kelly Balan, Dean of the School of Information Technology Mapua University.
Empower faculty members’ skills and knowledge with Train-the-Trainer workshops
For universities to educate students with modern digital skills, faculty members are provided with Train-the-Trainer workshops conducted by members of SAP Next-Gen Chapters. These are lighthouse educational institutions selected to be multipliers of the University Competence Centers (UCCs) and
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