WALLDORF, Germany, Oct. 5, 2020 /PRNewswire/ -- SAP
SE (NYSE: SAP) today announced 5 & 5 by '25, a corporate
initiative targeting five per cent of addressable spend* with
social enterprises and with diverse businesses by 2025. In setting
this target, SAP aims to inspire organizations around the world to
buy more goods and services from purposeful suppliers, making a
positive collective impact on the societies they operate in.
According to the World Bank, global procurement spend in
2019 was at least USD 14 trillion. By
directing even just a small fraction of this spend to certified
social enterprises and diverse businesses, organizations have the
power to tackle some of the world's most pressing social and
environmental problems.
Based on early pilots in select markets, SAP estimates it could
direct up to USD 60 million of its
addressable global spend per year to social enterprises and diverse
suppliers by 2025. Among DAX companies, this figure is estimated at
approximately EUR 2.5 billion, and
across U.S. Fortune 500 companies up to USD
25 billion.
SAP Executive Board member for Customer Success and recently
appointed Global Buy Social Ambassador for Social Enterprise UK
Adaire Fox-Martin announced the 5 & 5 by '25 initiative at
SAP's Procurement Reimagined event in Singapore. "Every company in every industry
needs to procure," Fox-Martin said. "We all need soap in our
washrooms, landscaping for our offices, food and drink in our
cafeterias, marketing services and office supplies. These and many
more are all products and services provided by social enterprises
and diverse businesses. This is money we are spending anyway. Why
not spend it with suppliers who are delivering social impact as
well?"
Social enterprises are businesses culturally and operationally
focused on changing the world. They are similar to other
commercially viable businesses, but with three crucial differences:
They are founded and governed on the basis of a clear social or
environmental mission; they reinvest the majority of their profit
back into this mission; and they are majority controlled solely in
the interest of this mission. A diverse supplier is a business that
is at least 51 percent owned and operated by an individual or group
that is part of a traditionally underrepresented or underserved
demographic; such as women-owned businesses, minority-owned
businesses and indigenous-owned businesses, among others.
"Together with our customers, partners, diverse
suppliers and social enterprises, we have set out to expand
social procurement where infrastructure exists and intend
to establish the infrastructure and build capacity where it
doesn't," Fox-Martin added. "We invite our entire ecosystem to
learn more and take part, join us in this initiative, and help
build the pathways and the momentum
to realize this ambition and find a
better way to grow."
To learn more, read the blog "Social Procurement: Finding a
Better Way to Grow" by Fox-Martin.
Visit the SAP News Center. Follow SAP on Twitter at
@SAPNews.
*Addressable spend (as opposed to total spend) includes only a
company's orders for goods and services that can be fulfilled by a
social enterprise or diverse business. For specific goods and
services such as rent, energy, labor and some professional
services, often neither social enterprises nor diverse businesses
yet exist that provide them. Estimates based on assessments of
SAP's own spend suggest that between 10 percent and 30 percent of
total spend could be designated as addressable spend, depending on
country.
About 5 & 5 by '25
5 & 5 by '25 is an initiative by SAP designed to encourage
organizations across industries to direct more of their addressable
spend toward certified social-enterprise and diverse-business
suppliers. In joining the initiative, organizations agree to
formalize their exploration of social procurement, including
partnering with leading intermediaries, adopting social-procurement
policies, consuming goods and services from purposeful suppliers,
and expanding their engagement with more social enterprises and
diverse businesses. The goal is to reach 5 percent of annual
addressable procurement spend with social enterprises and with
diverse businesses by 2025 and in doing so make significant impact
on social inequalities and environmental imperatives. 5 &
5 by '25 is part of the SAP One Billion Lives program, focused on
promoting greater inclusion of social entrepreneurship in the
global economy.For more information, visit 5 & 5
by '25.
About SAP
SAP's strategy is to help every business run
as an intelligent enterprise. As a market leader in enterprise
application software, we help companies of all sizes and in all
industries run at their best: 77% of the world's transaction
revenue touches an SAP® system. Our machine learning, Internet of
Things (IoT), and advanced analytics technologies help turn
customers' businesses into intelligent enterprises. SAP helps give
people and organizations deep business insight and fosters
collaboration that helps them stay ahead of their competition. We
simplify technology for companies so they can consume our software
the way they want – without disruption. Our end-to-end suite of
applications and services enables business and public customers
across 25 industries globally to operate profitably, adapt
continuously, and make a difference. With a global network of
customers, partners, employees, and thought leaders, SAP helps the
world run better and improve people's lives. For more information,
visit www.sap.com.
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