Daniel Schmid: The Architect of SAP’s Sustainable Technology
“There’s either sustainable business or no business.”
That is the belief that has underpinned Daniel Schmid’s career and led him to become the titan of sustainability who developed a sustainability strategy for one of the world’s largest technology companies – SAP.
From consulting to sustainability
Daniel gained his degree from the University of Kaiserslautern-Landau in Germany before beginning his career at CRM start-up Kiefer & Veittinger.
After the company was bought by German software giant SAP, he held a number of management positions across SAP in Europe, the Middle East and Africa.
In 2008, he became part of a board project to develop the company’s first strategic approach to sustainability.
In 2009 he became Head of Sustainability Operations at SAP, transitioning to Chief Sustainability Officer in 2014 before retiring at the end of 2024.
“Daniel Schmid’s contributions over his remarkable career have left a lasting impact on SAP’s sustainability strategy,” says Matthias Medert, who has now taken the helm as SAP’s Global Head of Sustainability.
“He has been key to embedding sustainability into SAP's business strategy, setting ambitious goals and continuously enhancing our sustainability performance.
“I am privileged to follow in his footsteps, aiming to drive sustainable financial growth while maintaining sustainability as a business driver.”
Daniel’s impact on sustainability at SAP
Daniel's tenure at SAP saw the company significantly expand its sustainability offerings, including the launch of its Carbon Footprint Analytics solution in 2022, which has been adopted by hundreds of enterprise clients.
“SAP has a unique role to play in supporting our customers’ sustainability efforts,” Daniel explains. “SAP customers produce 87% of the world’s global commerce. That means our products and services can help the vast majority of companies driving the global economy organize their supply chains, transportation, and financial data in a way that can enable an equitable, circular economy and net-zero emissions.”
Under his leadership, SAP reduced its data centre emissions by 35% through innovative cooling technologies and renewable energy procurement. The company also achieved its 2025 carbon reduction targets two years ahead of schedule, cutting Scope 1 and 2 emissions by 55% compared to 2015 levels.
The sustainability landscape has shifted dramatically during Daniel's tenure. The SEC's climate disclosure rules, the EU's Corporate Sustainability Reporting Directive, and the International Sustainability Standards Board's new frameworks have created complex compliance requirements for companies. Daniel played a crucial role in developing SAP's sustainability reporting platform, which helps clients navigate these regulations.
“For SAP, fulfilling our vision to ‘make the world run better and improve people's lives’ is not just an idealistic, altruistic or moral goal,” says Matthias.
“We are convinced that through a sustainable strategy, we will be more successful as a company in the long term. Sustainable practices lead to increased efficiency and cost savings, as well as attraction and retention of top talent.
“Moreover, by addressing environmental and social impacts proactively, we reduce risks and create more resilient supply chains.
“This ultimately drives innovation, opens new market opportunities and ensures the long-term viability and competitiveness of SAP.”
Daniel's approach to sustainability extended beyond environmental metrics. Under his leadership, SAP introduced social impact measurements into its procurement processes and established a supplier diversity programme that increased spending with minority-owned businesses by 45%.
“I am a firm believer that sustainability cannot be an add-on topic,” Daniel says. “For long-term success, companies need to truly embed sustainability in their business strategy, processes and operations end-to-end.”
Challenges for sustainability in the tech sector
The technology sector's sustainability challenges remain significant – data centres now account for approximately 2% of global energy consumption, with projections suggesting this could rise to 8% by 2030. Despite progress in renewable energy adoption, the industry's absolute emissions continue to rise due to growing demand for cloud services and data processing.
SAP addressed this paradox through its SAP cloud ERP portfolio, which helps clients optimise their cloud usage while minimising environmental impact.
What is Daniel’s legacy?
It is undeniable that the impact that Daniel has had on SAP’s sustainability strategy will be felt for years.
The programmes and initiatives that he has started will continue to have an impact.
Despite retiring from his role at SAP, he will remain in the sustainability field as Chairman of the Board at econsense, where he expects to continue collaborating with SAP.
To read the full article in the magazine, click HERE.
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