2023 trends: PH companies will put more of an emphasis on sustainability - SAP discusses market trends that will influence in 2023 and beyond
Thomas Saueressig, a member of the executive board of SAP SE (NYSE: SAP), noted in a recent blog that organisations have started to prioritise sustainability as they concentrate on ESG initiatives like lowering their carbon footprint, investing in renewable energy sources, and promoting ethical behaviour.
This tendency is also seen in the Philippines, according to Rudy Abrahams, managing director of SAP Philippines. For instance, the government encourages firms and organisations to implement ESG efforts through the introduction of policies.
In order to support local and global sustainability goals and promote transparency and responsibility from businesses, the Securities and Exchange Commission (SEC) ordered publicly traded corporations to file an annual sustainability report in 2019.
Making Progress Toward a Circular Economy
Large businesses in the Philippines must help create a circular economy as part of their ESG strategies. The linear, single-use nature of the global economy for many years has contributed to the build-up of waste products that are eventually disposed of in landfills or the environment.
The country's organisations are anticipated to take greater initiative in implementing more circular business models this year, especially with the enactment of the Extended Producer Responsibility (EPR) Act of 2022. (Republic Act no 11898). Large businesses are required by this law to reclaim their waste plastic packaging or face a fine. Large businesses are required by this law to reclaim their waste plastic packaging or face a fine.
Ensure Responsive Supply Chains
Businesses are currently being asked to make sure their supply networks are resilient. The majority of greenhouse gas (GHG) emissions now come from supply chain operations in enterprises. According to a recent analysis by the non-profit CDP (previously the Carbon Disclosure Program), these activities account for at least 92 percent of all GHG emissions by businesses.
Taking Business Transformation Seriously
As businesses continue to bolster their ESG and sustainability initiatives this year, Abrahams said that utilising technology is still essential to putting these improvements into practise. To accomplish their objectives, businesses like Globe Group and AC Energy (ACEN) have been stepping up their corporate transformation projects.
For instance, the Ayala Group's listed energy platform ACEN has been driving adoption of technology and the renewables revolution. But the business understood that going green should begin from the inside out, and that the right tools should be accessible to enhance its operations.
In order to develop a unified digital business platform for finance, procurement, inventory, and asset maintenance across several companies, ACEN recently adopted SAP S/4HANA on Azure. The organisation now has insight across all of its entities thanks to SAP S/4HANA. Collaboration across ACEN teams is essential for developing and putting into action plans to improve the capacity of solar and wind power plants while lowering inefficiencies and waste.
The efficient use of organisational data, on the other hand, is crucial for Globe in order to improve sustainability outcomes. Globe, the leading telecom and provider of digital solutions in the nation, has a number of companies, each with its own procedures and reporting structures.
Globe switched to SAP S/4HANA in order to enhance fragmented processes, manual workloads, inefficiencies, lack of insights, and delayed decision-making in order to address this challenge. In order to enhance the user experience and access to insights, SAP Fiori was also incorporated. Faster financial transaction processing, speedier book closing, and error-free reporting are also made possible through automation and fewer reconciliations.
