SAP

One of Europe’s largest quoted technology companies, SAP is a global leader in enterprise application software and it has invested heavily in AI and cloud technologies, all of which help drive trading performance. 
We like the fact that SAP has a dominant position in its markets.

The suite of products offered by SAP has helped the company become an indispensable part of its clients’ workflows. SAP’s products generate recurring revenue and high customer retention due to long-term contracts and the high cost of switching.

Also, SAP’s continued investment in innovation - including AI and machine learning - ensures its products remain at the forefront of technology trends. Its large global footprint and strategic partnerships further strengthen market resilience.

As companies worldwide increasingly embrace digital transformation to improve efficiency, SAP is well-positioned to capture growing demand, driving sustainable revenue and long-term shareholder value.

Like many firms in the tech sector, SAP faces scrutiny not only for its operations but also for how its products are deployed. Whilst considered non-strategic and contributing only a small portion of revenue, some of its products are used in sectors such as aerospace, oil and gas, mining, and defence. 

In addition, the sensitive nature of its client base means Cybersecurity is a material risk, with potential impacts including reputational harm, customer trust erosion, and increased operational costs.

The operation of SAP’s data centres is highly energy intensive. Data centres require large amounts of water to stay cool and consume significant electricity to run continuously. SAP operates 100 data centres worldwide, including in regions experiencing water scarcity.