5 months ago
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In March 2023, SAP, a global leader in enterprise software, launched its “Source from Ukraine” initiative as part of its Corporate Social Responsibility (SAP CSR) program. This initiative aims to support the economic reconstruction of Ukraine by increasing procurement spend with Ukrainian companies while simultaneously promoting sustainability and innovation. SAP CSR demonstrates the company’s unwavering commitment to creating a positive impact on society and the environment through its business practices.
SAP’s “Source from Ukraine” initiative goes beyond simply sourcing quality goods and services from Ukrainian suppliers. The company has a strong focus on integrating Environmental, Social, and Governance (ESG) principles into its decision-making processes, which aligns with its standard procurement policy. By doing so, SAP not only contributes to the economic recovery of Ukraine but also promotes social change and sustainability.
The initiative began by focusing on the IT sector, conducting a rigorous selection process to identify suitable Ukrainian suppliers. Industry leaders such as Softserve, Unicsoft, and Luxoft were among the first to be selected. However, SAP’s commitment extends beyond services to include product areas, where the company has discovered notable Ukrainian companies producing innovative and environmentally sustainable products.
At the SAP Spend Connect Live event held in Vienna, Austria, in October 2023, three Ukrainian manufacturers showcased their unique and sustainable offerings. Rekava, a company that specializes in producing biodegradable candles made from recycled coffee grounds, exemplifies the innovative spirit of Ukrainian businesses. Mol’far Tea, another featured company, focuses on minimalism and ethical environmental practices in tea production. Releaf Paper, the world’s first manufacturer of paper made from fallen leaves, promotes sustainability through its range of products, including paper bags.
SAP’s support for these innovative Ukrainian companies not only contributes to the country’s economic reconstruction but also aligns with the company’s sustainability efforts. By integrating these suppliers into its procurement ecosystem, SAP demonstrates its commitment to promoting innovation and environmental responsibility.
Collaborating with Partners to Amplify the Impact of SAP CSR Efforts
SAP’s “Source from Ukraine” initiative is strengthened by its collaboration with various partners, including NGOs, public and private sector organizations, and social enterprises. These partnerships allow SAP to amplify its impact and contribute to the development of sustainable procurement ecosystems.
One notable collaboration is with the NGO Impact Ukraine, which has been instrumental in connecting SAP with Ukrainian suppliers. Impact Ukraine focuses on microfinance, procurement, and recruitment from Ukraine, and its support is facilitated by the voluntary engagement of professionals from the technology, healthcare, and finance sectors. This collaboration has enabled SAP and other organizations to further advance their goals regarding procurement from Ukraine.
SAP’s CSR team is also investing in social and sustainable procurement ecosystems alongside public, private, and social sector partners. These include the European Commission, Deloitte, the World Economic Forum’s Global Alliance for Social Entrepreneurship, and the Social Enterprise World Forum’s People and Planet First verification. By working with these partners, SAP aims to create a significant shift in procurement spend towards organizations that prioritize people and the planet, such as Releaf Paper.
The potential impact of these collaborations is immense, considering that US$5.3 trillion in annual commerce is transacted on SAP Business Network. Even a small shift in procurement spend towards sustainable and socially responsible organizations could lead to a substantial increase in investment in sustainable development, far beyond what corporate philanthropy alone could achieve.
SAP’s “Source from Ukraine” initiative, as part of its broader Corporate Social Responsibility program, demonstrates the company’s commitment to driving economic growth, sustainability, and social change through its business practices. By integrating ESG principles into its procurement decisions and collaborating with diverse partners, SAP is not only supporting the economic reconstruction of Ukraine but also contributing to the development of sustainable procurement ecosystems worldwide.
