Learn about GRI certified

Software and Tools

Successful GRI reporting with SAP

Sustainability Performance Management.

Yannick Peterschmitt

Director, Solution Management

Sustainability Performance Management

SAP AG.

Amanda Plakosh-Angeles

Global Sustainability Analyst

Lexmark International, Inc.

SAP asSAP as

Dual Strategy

“Make the world run better”

SAP as

SAP‘s Sustainability Vision

Transform SAP into a

role model for

sustainability

Lead the market

of sustainability

solutions

SAP as

Enabler

SAP as

Exemplar

SAP as

Exemplar

Exemplar: Ambitous TargetsSAP as a role model

Reduce carbon footprint to

2000 levels by 2020

Environmental

Social

Grow revenues and increase

margins to 2014 goals

Economic

Drive net new business activity in

the base of pyramid

Social

Enabler: Strategic, Reliable, Efficient Introducting SAP SuPM

Management processes and analytics to

communicate and execute sustainability

strategy

Disclosures based on reliable information

and data, including GRI contentand data, including GRI content

Data gathering with automatic and

repeatable collection from systems and

people

SAP and GRI: Dual Strategy

“SAP BusinessObjects Sustainability Performance Management is the first application to be certified by the GRI Certified Software

and Tools Program, which assures the correct use of GRI copyright-protected content. SAP’s new solution will support sustainability reporting based on GRI standards, benefitting

internal management of key sustainability issues and providing stakeholders the information they demand.”

Ernst Ligteringen, CEO of the Global Reporting Initiative (GRI).CEO of the Global Reporting Initiative (GRI).

� GRI to define the standard

� SAP to support the process

� SAP to guarantee TCO

� GRI to certify the content

Co-innovation: Key to Success

Customer Input

Customer Review

Customer Testing & Validation

Setup Phase Sprint 1 Sprint n Release Phase

1 2 3 4 5Project Kick-Off Start of Sprint End of Sprint Rel. Corr. Close

DEFINE DEVELOPINVENT DEPLOY

Sustainability Reporting Solutions

Amanda Plakosh-Angeles

Global Sustainability Analyst, Lexmark International, Inc.

Sustainability Reporting

Stakeholder Requirement:

GRI Reporting

Challenges:

–Resource constraints

Data availability –Data availability

–Data reliability

Solution:

SAP SuPM

Sustainability Reporting

SAP Sustainability Performance Management (SuPM)

• Simplicity: Preloaded GRI Indicators

• Flexibility: Ability to add / modify KPIs as needed

• Organization: Single repository for data; Long term data

storage

• Access / Control: Data simultaneously accessible to multiple

company representatives, but only modifiable by select

individuals

Sustainability Reporting

“SAP Sustainability Performance Management (SuPM)

will enable us to move beyond measuring and reporting

to incorporating sustainability in a more strategic way

within our business.”

“within our business.”

John Gagel

Manager, Sustainability

Lexmark International, Inc.

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SAS: Delivering insights for

sustained leadershipAlyssa Farrell, Manager of Strategic and Sustainable Solutions

Today’s Reality

• +45 entrants to sustainability software market

over last 12 months

• Increasing linkage between financial and non-

financial reportingfinancial reporting

• Decreased headcount to manage internal data

• New guidance from GRI Sector Supplements

• Increased scrutiny on data quality

Global Footprint, Local Initiatives

Common Management Obstacles

• Availability of Environmental Data

– Disparate

– Unreliable

– Infrequent

• Reporting is becoming more frequent and complex

– Expanding scopes create multiple parameters for evaluation

– Can’t meet reporting requirements in given timeframe

because internal process is manual

• Goals are unclear

– Not all operating units are measuring performance against

specific indicators in the same way

– Little to no evidence of cause and effect linkage between

objectives/ metrics and overall strategy

Our Approach

• Streamline environmental data management processes

• Understand current and projected performance

• Improve transparency of environmental and social

performance data for internal and external stakeholders

• Align with key reporting standards, including GRI

• Determine the top causes of carbon emissions, waste or

water consumption.

• Model alternative sustainability projects and quantify

their effect on achieving corporate objectives.

SAS Sustainability Reporting

Industry Templates (GRI, CDP, IPIECA, etc)

Thematic KPI

SAS Energy and Emissions Mgmt

Carbon Footprint Analysis

Environmental Analytics Workbench

SAS® for Sustainability Management

Optional Value-Add Solutions

IT Resource Utilization

Carbon Market

Advanced forecasting

MEASURE REDUCE OPTIMIZE EXTEND

Thematic KPI Dashboards

“What-If” Simulations Carbon Market Risk Analytics

Performance Forecasts

GHG Abatement Cost Curve

Supplier Risk Assessment

Resource Optimization

Scenario Modeling

SAS Sustainability Reporting

• Single source of information about an organization’s

sustainability performance

• Determine correlations between key performance

indicators

• Leverage pre-built KPI • Leverage pre-built KPI

templates

• Embedded data

integration or

web data entry

• Articulate relationship

to overall corporate strategy

Poste Italiane Group Logistics/ Government

Business Issue

• Collect and measure energy data

• Meet efficiency goals in at least 250 Poste Italiane

Group facilities

• Target reductions in facilities with highest

consumption –data processing centers, executive

“We had no doubts in selecting a

technology partner because its

solution ensured that a balance

would be struck between

Read the Full Story

consumption –data processing centers, executive

centers and the largest branches.

Results/Benefits

• Improved visibility into areas of over-and

under-performance• Immediate drop in energy consumption

• Reduction in GHG emissions by 7%

would be struck between

performance and ease of

customization and management.”

Luciano BlasiEnergy Manager

SAS Energy and Emissions Management

• Establish & analyze emissions/water/waste inventory

• Calculate AND model key environmental activities

• Evaluate alternative programs via scenario modeling

• Maximize profitability through • Maximize profitability through

comprehensive cost analyses

• Emissions accounting is based on

global standards

• AMEE data service

provides auditable

emissions factors

Cisco Communications

Business Issue

• Improve transparency of environmental

performance and areas of most impact

• Prioritize projects that contribute to CEO’s goal of

greenhouse gas reductions

• Increase efficiency of environmental reporting

“We want to apply the

transformative effect of

technology towards meeting

Cisco’s sustainability goals.

That is why we are proud to • Increase efficiency of environmental reporting

• Measure and manage greenhouse gas emissionsThat is why we are proud to

partner with SAS to apply

robust technology to support

the measurement and

management of Cisco’s

greenhouse emissions and our

reduction goals.”

Laura IpsenSenior Vice President, Cisco

Environmental Analytics Workbench

• Decision support for resource intensive organizations

• Determine cost and carbon impact of proposed abatement

projects

• Quantify the best case scenario that meets customer

demand while reducing emissions or other consumption unitdemand while reducing emissions or other consumption unit

• Employ sophisticated simulations

• Enhanced visualization & exploration

Korean Steel Manufacturer Industrial Manufacturing

Business Issue

• Identify operational efficiencies to implement

if/when market regulations are established that

limit carbon emissions or require future

reductions

SolutionSolution

• SAS Operations Research

• SAS for Sustainability Management

Results/Benefits

• Optimized the combination of the new

technologies, GHG abatement potential, and the

marginal cost of GHG reduction for steel

manufacturing.

Alignment with GRI

• Common set of performance indicators

• Quick starting point regardless of industry

• Support and guidance from recognized NGO

• GRI support in multiple languages• GRI support in multiple languages

Evolution of Sustainability

Program at SASJerry Williams, Director Environmental Sustainability

Executive Sustainability

Council

Environmental Management

ProgramSocial Economic

Corporate Social Responsibility Overview

Program

Energy & Emissions

Management

Waste Reduction &

Recycling

Water Conservation

Green BuildingProcurement

Practices

2008 CSR Report

Sustainability Goals

• Better access to sustainability data

• Better identify costs of action or inaction

• Reduce energy consumption & costs

• Reduce greenhouse gas (GHG) emissions• Reduce greenhouse gas (GHG) emissions

• Enable global office comparisons

• Raise employee awareness

• Impact SAS’ bottom line

Best Intentions

• Efforts sincere in beginning

• Numerous disconnected spreadsheets and data summaries

• Ownership of processes unclear• Ownership of processes unclear

• Difficulty assigning appropriate relevance to measures

• Poor communication to executives

Carbon Profile

Electricity

SAS Global CO2e T x Energy Source

Electricity

Jet Fuel

Natural Gas

Motor Gasoline

Liquid Petrolium

Diesel Fuel

Refrigerants

US

EMEA

15%

Asia Pacific

12%

Latin America

0.3%

Canada

1%

SAS Global CO2e T x Geography

Electricity

(86%)

US

73%

Asset 2007 2008 2009 2008 - 2009 Var

Cary Headquarters 33,236.0 35,089.0 35,474.8 1.1%

Regional Offices 5,209.0 5,496.0 5,497.4 0.0%

Country Owned Offices N/A 6,338.0 6,337.0 0.0%

Country Leased Offices N/A 8,992.0 9,048.4 0.6%

Totals 38,445.0 55,915.0 56,357.6 0.8%

Energy and Emissions Dashboard

Sustainability Challenges

• Language barriers

• Stakeholder trust

• Access to relevant data

• Standard Utility measures

• Uniqueness of facilities • Uniqueness of facilities

• Regional or culture influences

• Lack of transparency in industry

GRI Initiatives (Environment, Social, Economic)

Pre-Built BI Dashboards

Initiative Protocol Sets (reporting documents)

Customer-specific Dashboards

Operational Strategies

Forecast

Model

Selection

Phase 2: SAS Sustainability ReportingGRI Framework + Operational Performance Management

Pre-Built Global Reporting Initiative (GRI G3) KPI Hierarchy

Pre-Built Analytic

Forecasting and

Correlation

Analysis (SAS

Stored Processes)

Aspects (logical grouping)

GRI Guidelines (coded KPI)

Customer-specific operational performance hierarchy

Measures (organization-specific)

Operational Initiatives

Aggregation

Methodology

and Ranges

IP Included as part of the SAS Sustainability Reporting Solution

Customization as part of typical implementation

Customer-specific Data Integration

Aggregation

Methodology

and Ranges

Advanced Energy and Emissions Forecasting

Phase 3: Applying Business Analytics

What if these trends continue?What if these trends continue?

What will happen next?What will happen next?

What’s the best that can happen?What’s the best that can happen?

What happened?What happened?

How many, how often, where?How many, how often, where?

Where exactly is the problem?Where exactly is the problem?

What actions are needed?What actions are needed?

Why is this happening?Why is this happening?