SAP launches innovative carbon accounting solution for businesses

SAP has launched its innovative carbon accounting solution, SAP Green Ledger, as it becomes globally available for businesses seeking to enhance their carbon footprint transparency whilst improving financial reporting practices. This new system integrates emissions data directly with financial transactions, providing a comprehensive platform for tracking and reporting emissions in real time.

Announced amid the increasing demand for sustainable business practices, this launch is significant as organisations face mounting pressure to comply with evolving regulatory standards, such as the European Union’s Corporate Sustainability Reporting Directive (EU CSRD). The precise integration offered by SAP Green Ledger is designed to empower businesses in meeting these compliance requirements while strategically preparing for future regulations.

“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,” stated Dominik Asam, the CFO of SAP SE, highlighting the importance of accuracy in carbon reporting as a means to safeguard both environmental and financial interests.

The key features of SAP Green Ledger include its ability to link carbon emissions data to specific financial transactions, thereby facilitating sustainability audits, carbon budgeting, and benchmarking. The solution has been built with an eye towards regulatory adaptability, capable of meeting current compliance needs and flexible enough to scale in line with future requirements such as the EU Emissions Trading System (EU ETS) and the International Sustainability Standards Board (ISSB) regulations. Additionally, improvements targeting supply chain processes are expected in 2025, further driving sustainable operations among suppliers.

Industry leaders have voiced support for SAP Green Ledger’s capabilities. Stephanie Jamison, Global Sustainability Services Lead at Accenture, remarked that “SAP Green Ledger provides the sustainability metrics needed to enhance decision-making that reduces emissions, drives efficiencies, and optimises performance.” Similarly, Jennifer Steinmann, Deloitte Global Sustainability Business Leader, noted that the solution “offers new levels of precision in carbon accounting, enabling leaders to make data-driven decisions that can build business resilience.” Vikram Karakoti, TCS Enterprise Solutions Global Head, added that “Embedding carbon data into enterprise planning unlocks growth opportunities and supports transformation for a sustainable future.”

SAP Green Ledger is currently undergoing a pilot phase with early adopters such as Covestro, which are actively testing the system to better link emissions data from production processes with their financial reporting methodologies. Strategic collaborations with consulting firms, including Deloitte, Accenture, and TCS, have been instrumental in shaping the features and implementation of the system.

As businesses navigate the complex landscape of sustainability and regulatory compliance, SAP Green Ledger promises to enhance efforts towards achieving net-zero goals while simultaneously improving financial visibility. This initiative marks a significant move towards integrating carbon accounting with core business processes on a global scale, setting a new standard for transparency and accountability in the corporate sector.

Source: Noah Wire Services