How SAP's Green Ledger Software Will Uplift Sustainability

In recent years, business across the world has taken on sustainable and environmental responsibility.

As climate change concerns intensify, governments and regulatory bodies worldwide are implementing stricter environmental regulations, compelling businesses to adopt more robust carbon accounting practices.

As a result, carbon accounting has been elevated to be a critical business function, since carbon reporting is not only essential for regulatory compliance but also for maintaining stakeholder trust and corporate reputation in an increasingly environmentally conscious market.

In response to this growing need, SAP has introduced the SAP Green Ledger, developed in collaboration with several major consulting firms, including Accenture, Deloitte, EY and Tata Consulting Services (TCS).

This solution is designed to integrate carbon accounting directly with financial data, aiming for a more comprehensive and accurate sustainability reporting for businesses across various sectors.

Integrating financial and environmental data

The SAP Green Ledger builds upon SAP's existing Enterprise Resource Planning (ERP) and financial solutions, which are already widely used by thousands of organisations worldwide.

By leveraging these established systems, SAP aims to provide a seamless integration of carbon footprint tracking with financial reporting.

Gunther Rothermel, Co-General Manager and Chief Product Officer for SAP Sustainability, explains the functionality of the Green Ledger: "This allows our customers to track and account for carbon footprints in relation to their financial impact".

This integration enables businesses to gain a more holistic view of their operations, considering both financial and environmental factors in their decision-making processes.

The solution's approach to carbon accounting is designed to help businesses comply with increasingly stringent sustainability regulations while also providing valuable insights for strategic planning.

By linking carbon emissions data directly to financial metrics, companies can better understand the economic implications of their sustainability efforts and make more informed decisions about resource allocation and investment in green technologies.

Collaborative development and industry support

The collaborative approach to SAP's Green Ledger has ensured that the solution addresses a wide range of industry needs and incorporates best practices from various sectors.

Stephanie Jamison, Global Resources Industry Practice Chair and Global Sustainability Services Lead at Accenture, highlights the potential impact of the Green Ledger: “As organisations seek to gain visibility into both the financial and environmental performance of their businesses, SAP Green Ledger can provide the sustainability metrics and insights needed to enhance decision-making that reduces emissions, drives efficiencies and optimises performance.”

The development process also involved pilot customers, such as Covestro, which is currently evaluating the Green Ledger in an early pilot phase.

Covestro is testing the solution's ability to link CO₂ values generated during the manufacturing of specific products in the supply chain, demonstrating the practical applications of the technology in real-world scenarios.

Addressing global sustainability challenges

Overall, the SAP Green Ledger is designed to help companies navigate complex regulatory landscapes, including emerging standards such as the EU Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB) guidelines.

Jennifer Steinmann, Deloitte Global Sustainability Business Leader, emphasises the precision offered by the Green Ledger: "SAP Green Ledger offers new levels of precision in carbon accounting for organisations as they track, manage and report their greenhouse gas emissions and provides leaders with a holistic view of the costs and benefits of sustainability initiatives, enabling them to make data-driven decisions that can build business resilience.” 

Vikram Karakoti, TCS Enterprise Solutions Global Head, sees the Green Ledger as a catalyst for business transformation: "This will enable organisations to move beyond regulatory compliance and make sustainability a growth engine.

“By embedding carbon data into the enterprise planning process, organisations can unlock previously unexplored areas for growth, transformation and environmental renewal.”

Dominik Asam, CFO and member of the Executive Board of SAP, underscores the importance of accurate emissions data: "Only by moving from averages to actuals – audited at reasonable assurance – can freeriding and greenwashing be avoided, thereby protecting such valuable investment and our planet. SAP Green Ledger delivers precisely that".

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