SAP is undergoing a major shift in its diversity and inclusion strategy. The global software giant has decided to drop its previous aspirational goal of having 40 per cent women in its total workforce.
This move comes in response to evolving legal and regulatory frameworks, especially in the US and Germany.
The company is also replacing a key performance indicator related to women in executive roles. Previously, this metric was part of the board’s long-term incentive plan and tracked female representation up to three levels below the Executive Board. SAP will now align this with German legal standards, reducing the scope to two levels below the Executive Board, while excluding US executive representation from this measure.
In place of the older diversity metrics, SAP is introducing the Business Health Culture Index (BHCI) as a new benchmark. The BHCI focuses on overall employee experience, including engagement, equal opportunity, workplace health, and long-term career sustainability. This shift reflects SAP’s aim to build a more inclusive and supportive environment that goes beyond demographic targets.
SAP has tracked BHCI since 2009 through its employee- engagement surveys. The company now plans to use this index as part of its non-financial guidance, targeting a score between 80 and 82 per cent in 2025.
To further embed these values into its organisational culture, SAP will consolidate its Diversity & Inclusion office with its Corporate Social Responsibility (CSR) function. This unified unit, named ‘Social Responsibility, Inclusion and Communities,’ will operate under the People & Culture board.
The changes signal a strategic pivot in how SAP approaches diversity—placing more emphasis on cultural health, legal alignment, and sustainable inclusion rather than numerical goals alone.
