Our Progress

Global Reporting Initiative

Fully reported Partially reported Not reported

1

Strategy and Analysis

2

Organizational Profile

2

.1
Name of the reporting organization

SAP AG is listed on the Frankfurt Stock Exchange and the New York Stock Exchange (NYSE) under the symbol "SAP."

For more information, see our

2

.10
Awards received

In 2011, we received the following awards and recognitions:

  • Carbon Disclosure Leadership Index (Top 10)
  • Carbon Performance Leadership Index (Top 10)
  • Dow Jones

3

Report Parameters

3

.1
Reporting period

The data in this report covers the reporting period from January 1 to December 31, 2011 unless otherwise stated.

Independently Verified

3

.2
Date of most recent previous report

The previous report, the SAP 2010 Sustainability Report, was published in March 2011.

Independently Verified by KPMG

3

.3
Reporting cycle

We publish our sustainability report annually, in the first quarter of the year. In addition, we report select key non-financial metrics on a quarterly basis.

3

.6
Boundary of the report

The report encompasses global SAP operations and all subsidiaries that were part of the SAP group on December 31, 2011. The data of Sybase, an independent subsidiary of SAP, is included in the

3

.7
Specific limitations on the scope and boundary of the report

The report does not include any qualitative information of Sybase, an independent subsidiary of the SAP group. In addition, Sybase is neither covered in social key performance metrics nor in the

3

.8
Basis for reporting on situations that can significantly affect comparability

In 2011, for the first time, we include Sybase in our environmental key performance indicators. Also see our explanatory notes.

3

.9
Data measurement techniques and the bases of calculations

All data in this report was collected and reported with the help of our own SAP BusinessObjects Sustainability Performance Management analytic application in combination with other nonautomated

3

.10
Re-statements of information provided in earlier reports

In our efforts to continuously improve the data quality of our corporate greenhouse gas data, we further improved our methodology to fully adapt the GHG Protocol guidelines. We have adjusted our

3

.11
Significant changes from previous reporting periods

In 2011 we:

  • Updated the methodology for measuring and explaining customer impact;
  • Updated the methodology for measuring and explaining social impact;
  • Created

4

Governance

4

.2
Chair of the highest governance body

The SAP Supervisory Board is chaired by Hasso Plattner, a nonexecutive officer.

Independently Verified by KPMG

1

4

.3
Unitary board structure

Our corporate governance structure is based on German legal protocol; therefore, SAP has a two-tier board structure.

Independently

4

.5
Executive compensation

See our 2011 SAP Compensation Report, which outlines compensation for the SAP Executive Board and

4

.6
Processes in place to ensure conflicts of interest are avoided

Our corporate governance structure is based on German legal protocol, and we adhere to the rules and principles of the German Corporate

4

.7
Process for determining the qualifications and expertise of the advisory board

Our corporate governance structure is based on German legal protocol, and we adhere to the rules and principles of the German Corporate

4

.8
Internal statements of mission or values, codes of conduct, and principles

For our mission and strategy, see our Annual Report.

SAP employees are at the heart

4

.9
Advisory board oversight of the organization’s sustainability performance

The SAP Supervisory Board advises and supervises the SAP Executive Board. More information on how the boards cooperated in 2011 can be found in our

4

.11
Precautionary approach or principle

We support a precautionary approach towards environmental management. While we see little apparent risk for our own operations we do see an opportunity to help our customers anticipate and manage

4

.12
Externally developed economic, environmental, and social charters or principles

We endorse the following initiatives to meet our sustainability goals:

  • Transparency International Business Principles (since 2005)
  • United Nations Global Compact (since 2000

4

.13
Memberships in associations

To better understand and enable sustainable performance on a global level, both for our company and customers, SAP subscribes to and routinely engages a range of third-party organizations,

 

Management Approach

 

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Management Approach to Economic, Environmental, and Social Performance

Sustainability Governance

Sustainability is an integral part of our corporate strategy. Our dedicated sustainability organization is led by our chief sustainability officer Peter Graf.

EC

Economic Indicators

EC

.1
Direct economic value generated and distributed

SAP generated more than €14 billion in total revenues in 2011. However, the real size of the SAP-induced economy is significantly greater. We help more than 183,000 companies of all sizes in 130

EC

.2
Financial implications and other risks and opportunities for the organization’s activities due to climate change

SAP considers climate change to be one of the most critical issues facing society and our ability to build a sustainable future. It is also a topic that was defined as a key sustainability issue

2

EC

.4
Significant financial assistance received from government

With our 2010 Annual Report we have stopped reporting these numbers as assistance received was not material.

Independently Verified by

EC

.6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

Structure of our supply chain

As a software company, most of our supply chain expenditure is for purchasing services in the consulting and development areas; the goods we purchase are

EC

.7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation

We recognize that teams comprised of employees from different cultures and backgrounds contribute valuable understanding of our complex international markets. Therefore, we strive to attract and

EN

Environmental Indicators

3

EN

.1
Materials used by weight or volume

As a software company, SAP does not have a physical production process. However, we found ways to reduce the use of packaging in the shipping of our software products. In addition, we set goals

4

EN

.2
Percentage of materials used that are recycled input materials

As a software company, we do not have a physical production process. We started setting goals and tracking the use of recycled materials that we use to keep our operations running, such as

EN

.3
Direct energy consumption by primary energy source

In 2011, SAP consumed about 1,950 terajoules (1,940 in 2010) / 540 GWh (540 in 2010) in direct energy. For more information, see Total Energy and

EN

.4
Indirect energy consumption by primary source

In 2011, SAP consumed about 1150 terajoules (1,100 in 2010) / 320 GWh (305 in 2010) in indirect energy. For more information, see Total Energy.

EN

.5
Energy saved due to conservation and efficiency improvements

We identified three key areas to save energy: SAP facilities, information technology infrastructure, and data centers. For more information, see Total Energy.

5

EN

.6
Initiatives to provide energy-efficient or renewable energy-based products and services

We provide both energy efficiency solutions, tools to optimize our customers' data centers and have strived to reduce our own solutions' energy consumption.

Our

EN

.7
Initiatives to reduce indirect energy consumption and reductions achieved

Our efforts to reduce indirect energy consumption focus on business-related travel and employee commuting. For more information, see EN29 and

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EN

.8
Total water withdrawal by source

We estimate that we used approximately 875,500 m3 (869,000 in 2010) of water worldwide in 2011. While our operations are not water-intensive, we continue to use water as efficiently as possible.

7

EN

.11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

SAP does not have any buildings in protected areas or areas of high biodiversity value outside protected areas. Nevertheless, we have set in place activities to protect biodiversity at our

8

EN

.12
Description of significant impacts of activities, products, and services on biodiversity

Until now, we have not identified significant impacts of our activities as a software company, products, and services on biodiversity.

EN

.16
Total direct and indirect GHG emissions by weight

In 2011, our total direct and indirect GHG emissions (scope 1 and 2) by weight were about 285 kilotons CO2. For more information see GHG Footprint

EN

.17
Other relevant indirect GHG emissions by weight

In 2011, our total other indirect GHG emissions (scope 3) by weight were about 255 kilotons CO2. For more information, see greenhouse gas footprint.

9

EN

.19
Emissions of ozone-depleting substances by weight

Due to the nature of our business as a software company, emissions of ozone-depleting substances are not material to SAP.

Independently

10

EN

.20
NOx, SOx, and other significant air emissions by type and weight

Due to the nature of our business as a software company, NOx, SOx, and other significant air emissions are not material to SAP.

11

EN

.21
Total water discharge by quality and destination

As a software company, our operations are not water-intensive. Water discharges stem primarily from operating our office buildings. Due to the limited impact, we do not measure global water

12

EN

.22
Total weight of waste by type and disposal method

We estimate that we generated approximately 10 kilotons (2010: 11 kilotons) of waste in our offices, operating facilities, and product packaging worldwide in 2011. To reduce waste, we are

13

EN

.23
Total number and volume of significant spills

Due to the nature of our business, spills are not relevant for SAP and are therefore not registered.

Independently Verified by KPMG

15

EN

.27
Percentage of products sold and their packaging materials that are reclaimed by category

SAP provides customers with software and services. Paper packaging is primarily used for storing and shipping software disks, which require minimal packaging. This packaging is not reclaimed.

EN

.29
Significant environmental impacts of transporting products, other goods, materials and members of the workforce

The key sources of our environmental impact through transportation are air travel, our corporate car fleet, employee commuting, rental cars, and business trips with private cars. Logistics, such

LA

Social Indicators

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LA

.1
Total workforce by employment type, employment contract, and region, broken down by gender

By the end of December 2011, SAP employed more than 55,000 employees.

Calendar Year Organizational Unit* Total Number of Employees (In Full

LA

.3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations

We are committed to attracting, retaining, and developing top talent. In support of that goal, we endeavor to offer a flexible and rewarding work environment. We provide local, regional, or global

18

LA

.4
Percentage of employees covered by collective bargaining agreements

As published in our Human Rights Commitment Statement, we respect the rights of our employees to

19

LA

.5
Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements

There is no global minimum notice period in place for operational changes. We provide timely information and consult with employee representatives whenever and wherever required.

LA

.6
Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs

At SAP AG, there are no formal joint management-worker health and safety committees. Instead, our works councils have health and safety committees that work with the official SAP organizations. In

20

LA

.7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender

We do not track injuries, diseases, lost days, or absenteeism with a globally harmonized methodology at this time.

To give an example, in Germany, we measure the incident rate with the "

LA

.8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

We have developed a holistic and comprehensive program to meet the health and wellness needs of our employees. Its focus is on requirements of employees with sedentary, highly demanding

21

LA

.10
Average hours of training per year per employee by gender, by employee category

We are dedicated to providing ongoing training to all employees. Our approach to learning and development centers on the right balance between different learning methods – meaning that development

LA

.11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

One critical component to employee engagement is learning and development. These areas are key to our sustainability goals, which demand the ability to create new paradigms, stay on top of trends

22

LA

.12
Percentage of employees receiving regular performance and career development reviews.

SAP plans and reviews individual employee performance on an annual basis. At the start of the year, employees and their managers agree upon individual objectives. At year-end, they review these

LA

.14
Ratio of basic salary of men to women by employee category

At SAP we evaluate jobs based on their value in both the external labor market and internally to SAP. Qualified recruits are paid in accordance with the knowledge, skills and experience they bring

24

LA

.15
Return to work and retention rates after parental leave, by gender

SAP supports employees in coordinating their family and career. For example, at our headquarters in Germany we support employees (both men and women) who decide to take parental leave with a range

HR

Social Performance: Human Rights

26

HR

.3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Our training programs for employees cover the spectrum of aspects of human rights in separate classes. This includes training for security, privacy, anti-discrimination, works councils, and first

27

HR

.4
Total number of incidents of discrimination and actions taken

SAP has a long-standing policy of non-discrimination in all aspects of our dealings with employees. We are committed to providing a work environment free from unlawful harassment. Any employee who

HR

.10
Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

In 2009, SAP conducted its first global human rights impact assessment with Business for Social Responsibility (BSR). Based on this, we launched a

31

HR

.11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

We offer our employees different channels for raising concerns or seeking solutions for difficult situations at the workplace. They can consult, for example:

  • HR business

SO

Social Performance: Society

SO

.1
Percentage of operations with implemented local community engagement, impact assessments, and development programs

Local community engagement programs are established at 100% of our major locations. For more information about our programs and how we measure our impact, see

SO

.2
Percentage and total number of business units analyzed for risks related to corruption

We review all of our business units for potential bribery or corruption issues on an ongoing basis. We performed a thorough risk analysis of all subsidiaries in 2006. In 2008, based on this risk

SO

.3
Percentage of employees trained in organization’s anticorruption policies and procedures

In 2011, almost 25,000 training sessions were performed in live classrooms or through online conferencing sessions on antibribery and antitrust issues as well as on SAP's Code of Business Conduct

SO

.4
Actions taken in response to incidents of corruption

SAP received and responded to all reports of potential bribery and corruption. No allegations regarding corruption were substantiated in 2011.

Employees have different avenues to raise

SO

.5
Public policy positions and participation in public policy development and lobbying

SAP executives advise governments and administrations around the world on IT topics, trends and developments. To help realize the potential of IT for businesses and our society overall, we are

SO

.6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

In principle, we do not to support any political parties. This policy applies to all of our locations.

Some employees in the United States continue to exercise their right to create a

SO

.9
Operations with significant potential or actual negative impacts on local communities

We have not identified any operations with significant potential or actual negative impacts on local communities. However, our community programs have a positive

SO

.10
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

We have not identified any operations with significant potential or actual negative impacts on local communities. However, our community programs have a positive

PR

Social Performance: Product Responsibility

32

PR

.1
Life-cycle stages in which the health and safety impacts of products and services are assessed for improvement and the percentage of significant products and services categories subject to such procedures

SAP provides software and services to customers. For these products, we have global process and product standards that every product needs to adhere to. These standards are not linked to health

33

PR

.3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information

We strive to provide the highest quality standards for our software solutions and services. Every employee has a responsibility for quality assurance in developing software and providing services

PR

.6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship

SAP has strict internal guidelines on protecting the privacy of employee, corporate, and customer data and applies the same standards to its external marketing activities.

In 2009, we

PR

.8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

No incidents were brought to the attention of SAP's data protection and privacy office in 2011.

Independently Verified by KPMG

1 Due to German law, SAP has a two-tier board structure.

2 Assistance received was not material.

3 As a software company, SAP does not have a physical production process. Therefore, this indicator is not material.

4 As a software company, SAP does not have a physical production process. Therefore, this indicator is not material.

5 At this stage, it is difficult for us to quantify the reductions in the energy requirements of our software and services. But we are developing a methodology of how to measure our solutions' environmental footprint at our customers' sites.

6 As a software company, SAP's operations are not water-intensive. Therefore, this indicator is not material.

7 SAP does not have any buildings in protected areas or areas of high biodiversity value outside protected areas. Therefore, this indicator is not material.

8 Up to now, we have not identified significant impacts of our activities as a software company, products, and services on biodiversity. Therefore, this indicator is not material.

9 Due to the nature of our business as a software company, emissions of ozone-depleting substances are not material to SAP.

10 Due to the nature of our business as a software company, NOx, SOx, and other significant air emissions are not material to SAP.

11 As a software company, our operations are not water-intensive. Therefore, this indicator is not material.

12 Due to the nature of our business as a software and service company, our operations are not waste intensive. Therefore, this indicator is not material.

13 Due to the nature of our business, spills are not relevant for SAP and are therefore not registered.

14 A measurable impact of SAP's software and services relates to energy and emissions only.

15 Packaging is not reclaimed.

16 Workforce by employment contract is proprietary information at SAP.

17 A breakdown of new employee hires and employee turnover is proprietary information at SAP.

18 Collective bargaining agreements are made only in countries where legally required; in the majority of countries, SAP does not have collective bargaining agreements with unions.

19 There is no global minimum notice period in place for operational changes.

20 We do not track injuries, diseases, lost days, or absenteeism with a globally harmonized methodology at this time. We are working on a project to come to a common methodology (results available in about 2-3 years).

21 Training data is not tracked by employee category and gender.

22 The annual performance review process closes only after the editorial deadline of this report.

23 We do not track minorities for legal reasons.

24 There are legally different determining factors of parental leave, which is why it is currently impossible to report the data in a globally harmonized way.

25 SAP does not track investment agreements or contracts that include human rights criteria.

26 SAP considers it more material to track the number of employees that received training, not the duration of training.

27 SAP considers the number of incidents proprietary.

28 In the software industry, other human rights issues, like accessibility, security, privacy are material.

29 In the software industry, other human rights issues, like accessibility, security, privacy are material.

30 In the software industry, other human rights issues, like accessibility, security, privacy are material.

31 SAP considers the number of grievances proprietary information; we do not collect the number of grievances that are filed on a global level.

32 SAP provides software and services to customers. For these products, we have global process and product standards that every product needs to adhere to. These standards are not linked to health and safety. We follow standards that are specific to software.

33 SAP provides software and services to customers. For these products, we have global process and product standards that every product needs to adhere to.



Independently Verified by KPMG