SAP’s “Source from Ukraine” initiative, launched in March 2023, has a clear goal: to increase spend with Ukrainian companies while also generating business benefits for SAP. This shows SAP’s deep understanding of social responsibility as an integral part of its commitment to a sustainable future.
The initiative aims to activate procurement spend as a means to support Ukrainian suppliers in rebuilding their businesses. Beyond sourcing for quality goods and services, SAP has a focus on integrating ESG (environmental, social, and governance) principles into decision-making as is standard with its procurement policy.
It highlights SAP’s commitment not only to sourcing products from Ukraine, but also to promoting social change.
Built-In Sustainability
In implementing the initiative to attract more suppliers from Ukraine, SAP initially focused on the IT sector and conducted a rigorous selection process. So far, suppliers, including industry leaders like Softserve, Unicsoft, and Luxoft, have been selected. SAP’s commitment extends beyond services to include product areas, where notable Ukrainian companies producing innovative environmentally sustainable products have been discovered.
At SAP Spend Connect Live in Vienna, Austria, held in October 2023, Ukrainian manufacturers Rekava, Mol’far Tea, and Releaf Paper showcased their sustainable and innovative products. Rekava, for example, specializes in producing biodegradable candles made from recycled coffee grounds, while Mol’far focuses on minimalism and ethical environmental practices in tea production. Releaf Paper is the world’s first manufacturer of paper made from fallen leaves, promoting sustainable products such as paper bags. By supporting these unique Ukrainian companies, SAP is not only contributing to the economic reconstruction of the country, but also sustainability efforts.
One of SAP’s tier one suppliers, ABC Premium, has taken an important step by offering Rekava candles within its purchasing catalog, available to SAP employees on the SAP Ariba Buying solution.
Strong Alliances for Reconstruction
At the outset of the project, the NGO Impact Ukraine helped SAP connect with Ukrainian suppliers. It focuses on microfinance, procurement, and recruitment from Ukraine. The collaboration is facilitated by the voluntary engagement of professionals from the technology, healthcare, and finance sectors. With Impact Ukraine’s support, SAP and other organizations can further advance their goals regarding procurement from Ukraine.
SAP’s commitment to promoting innovation, sustainability, and economic growth through partnerships with Ukrainian companies not only fulfills its aspirations for procurement with purpose, but also contributes to making the world a better place.
Helping the World Run Better
The “Source from Ukraine” initiative builds on global efforts to integrate social enterprises and diverse suppliers into SAP purchasing opportunities. Beyond SAP’s own internal purchasing efforts, the SAP Corporate Social Responsibility (SAP CSR) team is also investing in social and sustainable procurement ecosystems alongside public, private, and social sector partners like the European Commission, Deloitte, World Economic Forum’s Global Alliance for Social Entrepreneurship, and Social Enterprise World Forum’s People and Planet First verification.
Consider that US$5.3 trillion in annual commerce is transacted on SAP Business Network. If we can help create a small shift in procurement spend to organizations prioritizing people and planet like Releaf Paper, we could collectively increase investment in sustainable development in a way that is not possible through corporate philanthropy alone. To join our efforts, please e-mail: csr-global@sap.com.
Elena Parker is chief revenue officer for Intelligent Spend and Business Network, MEE, at SAP.