SAP plans to power all its data centres and facilities globally with 100 percent renewable electricity, starting from this year.
SAP says "the shift will help minimise the company's carbon footprint as it moves to a cloud business model".
The business software supplier added that the move "will help eliminate carbon emissions caused by its customers' systems, by moving them into a 'green cloud'".
The company admits its total carbon emissions increased by 12 percent last year. It says that as customers increasingly use SAP software in the cloud, systems that previously ran at customers' sites are running more in SAP data centres - adding to SAP's total emissions.
SAP is now reiterating a commitment to reduce greenhouse gas emissions from its operations to levels seen in 2000 by 2020.
A new company initiative will also see SAP subsidise and encourage electric vehicle adoption for German employees, a project that began earlier this year with 60 electric vehicles.
"Committing to 100 percent renewable electricity in our data centres and facilities is a natural consequence of our business model shift into the cloud," said Peter Graf, chief sustainability officer at SAP.
"By delivering our cloud solutions in an environmentally friendly fashion, we expand our competitiveness in the cloud software market while further enhancing our sustainability leadership."
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