Why SAP is Investing in Forests for Net Zero Technology

Companies pursuing decarbonisation strategies typically choose between two pathways: enhancing energy efficiency to reduce fuel consumption and electricity use, or channelling resources into sustainable technologies and initiatives.

Among these sustainable investment approaches, nature-based solutions have emerged as an increasingly prominent option. These initiatives focus on protecting, managing or restoring ecosystems to support biodiversity and carbon sequestration objectives.

SAP, which ranks among the world's largest software providers, has integrated this methodology into its climate strategy, incorporating natural habitat restoration such as forests alongside conventional emissions reduction measures.

SAP has set a net zero target across its entire value chain by 2030, advancing its original deadline by twenty years. In the interim period, SAP plans to finance projects designed to remove more CO₂ from the atmosphere than its operations generate annually.

Corporate reforestation programmes

Since 2012, SAP has developed what it characterises as one of the technology sector's most comprehensive corporate reforestation programmes.

SAP has planted 20.51 million trees towards its 2024 commitment of 25 million by 2030, whilst restoring more land than its offices and data centres currently occupy.

Through the Livelihoods Carbon Funds, SAP supports projects spanning 10 to 20 years that combine reforestation, forest protection, improved forest management, rural energy and agroforestry initiatives implemented alongside local communities.

These projects extend across more than 25 countries, including Brazil, Madagascar and the Philippines, through SAP's membership in the 1t.org corporate alliance managed by the World Economic Forum.

Tracking Amazon conservation efforts

In the Amazon, SAP collaborates with Fundação Amazônia Sustentável (FAS) to monitor 15 strategic KPIs through its Sustainability Control Tower solution, including deforestation rates and production chain revenue.

The region contains roughly 390 billion trees and provides habitat for 2.2 million indigenous people across 400 ethnic groups.

SAP's multi-year financing model aligns with the Tropical Forest Forever Facility (TFFF), a key initiative of Brazil's COP30 launched in Belém. The TFFF aims to provide predictable, long-term financing for conserving and expanding tropical and subtropical moist broadleaf forests.

Nearly 100 countries, representing two-thirds of global greenhouse gas emissions, have submitted or announced Nationally Determined Contribution targets that include forest protection strategies.

"Our reduction efforts have earned SAP's inclusion in the EU Paris-Aligned Benchmarks, giving investors confidence in our approach and demonstrating that rigorous action to tackle global issues strengthens rather than compromises business performance," says Matthias Medert, Global Head of Sustainability at SAP.

Technology-driven carbon removal

SAP targets a 90% reduction in gross greenhouse gas emissions across its value chain on a market-based accounting approach.

The remaining emissions, no more than 10% in line with Science Based Targets initiative standards, will be neutralised through verified carbon removal projects.

Beyond nature-based solutions, SAP has invested in engineered carbon removal through Climeworks' direct air capture (DAC) technology.

SAP also partners with ECOSIA, the not-for-profit search engine, with every 50 searches by SAP employees supporting tree planting. This partnership has resulted in more than 760,000 trees planted to date.

Matthias notes that sustained corporate financing can bridge critical gaps in regions lacking sufficient funds for ecosystem restoration, provided such investments don't undermine decarbonisation programmes.