Q&A with SAP’s New Global Head of Sustainability

In today’s computer-powered world, software is truly foundational to every business.

Software giant SAP provides solutions for 99 of the 100 largest companies in the world, giving the company influence across every sector.

The company’s Chief Sustainability Officer Daniel Schmid has made an enormous difference in how it operates, and is now retiring to make way for a new leader.

Matthias Medert is taking the helm as SAP’s Global Head of Sustainability, a role which sees him take responsibility for sustainability strategy across both internal and external global operations. 

Matthias began his career at SAP in product management with a mechanical engineering degree from Technische Universität Darmstadt in Germany. 

He published a book about the United Nations Sustainable Development Goals in 2020, titled “17 Goals for a Future Worth Living” (17 Ziele für eine lebenswerte Zukunft). 

Matthias spoke to Sustainability Magazine about his new role.

How has your career led you to becoming Global Head of Sustainability at SAP?

I see three key aspects that have led me to this role, even without a direct history in sustainability:

• Cross-functional experience: My diverse roles at SAP taught me the language and perspectives of various departments, from development to sales. This holistic understanding is vital for tackling sustainability challenges that require cross-sector collaboration.
• Alignment of seemingly divergent goals: I have mastered aligning goals that initially appear at odds. For example, I balanced licence compliance revenue and customer satisfaction. This skill is crucial for harmonising SAP’s sustainability objectives with its financial success.
• Passion for sustainability: I am combining my professional experience with a personal passion for sustainability. Years ago, I authored a book on the 17 SDGs, demonstrating my commitment to sustainability and equipping me to drive impactful initiatives at SAP. 

What are your priorities and goals for sustainability at SAP?

My goal is to solidify SAP's position as a leader in sustainable practices by creating positive social, environmental and economic impact. I aim to propel our sustainability agenda forward, creating value for our customers, employees and society by focusing on three top priorities: environmental stewardship, human rights and AI ethics. Let me dive into each of these areas briefly. 

When I say environmental stewardship, I mean exploring which sustainable practices will help us achieve net zero by 2030 across our entire value chain and define future processes and strategies that help us stay on track. For example, we power all data centres and facilities with 100% renewable electricity, engage with suppliers to reduce and optimise GHG emissions along our upstream value chain and invest in technical and nature-based solutions, for example the Livelihoods Carbon Funds.

With regards to human rights, we are committed to respecting and advancing human rights across our operations, extended supply chain and product lifecycle. We already have a range of policies and procedures in place to ensure we treat everyone with respect and to mitigate human rights risks occurring in our own business and along the value chain. 

This is the foundation for the third priority: SAP’s commitment to the ethical development, deployment, use and sale of AI systems. Like all great technological advancements, AI also has the potential to create economic, political and social challenges, depending upon how it is used and implemented. That’s why my team and I govern the production of responsible AI solutions.

How will you build on Daniel Schmid's progress?

Daniel Schmid’s contributions over his remarkable career have left a lasting impact on SAP’s sustainability strategy. 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. The transition period has allowed me to accompany Daniel to notable events like Climate Week and COP29, fostering relationships with trusted partners and stakeholders. I plan to build on this foundation of collaboration, knowledge transfer, and continuous improvement.

Why is sustainability important to you and SAP?

For me personally, I have long been passionate about sustainability.

As a father of three children, I see it as my responsibility to do my part to ensure that my children can look forward to a future worth living in. If they ask me one day: “What did you do when you realised that you were not living sustainably?” I would like to have an answer that I am proud of. I could not look my children in the eyes and tell them that we saw the problems and understood the risks and effects on future generations and yet did nothing.

Of course, companies have an even greater leverage to make the world more sustainable.

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. 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.

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