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After a long lead time, SAP has now announced that SAP Green Ledger is generally available. As part of the SAP sustainability solutions, SAP Green Ledger maps carbon emissions to the associated economic activities and transactions captured by the in-house ERP solutions. This innovation is designed to enable companies to accurately capture, analyze and report the carbon footprint of products, services and organizational units.

Growing need for action

SAP is thus responding to the growing consensus that decarbonization is necessary to combat climate change. The solution supports companies in taking important steps towards sustainability. These include capturing and reporting carbon footprint in relation to its financial impact, reducing emissions while optimizing the business financially, and creating carbon planning integrated with financial planning and achieving net zero targets. It also enables benchmarks of departments, business units and profit centers from both a financial and environmental perspective. Other features of SAP Green Ledger include preparing sustainability assessments and improving supplier-based processes to reduce carbon emissions in the supply chain.

Better and more sustainable decisions

The system is built on existing SAP financial and ERP solutions, which are established in thousands of companies worldwide. Enhancing these solutions with emissions data integration enables companies to make better and more sustainable decisions that take into account both environmental and financial impacts, thus improving efficiency and transparency.

Avoiding greenwashing

“Huge investments are needed to reduce CO2 emissions and thus curb global warming. In addition to smart, reliable regulation, accurate data on emissions along the supply chain is crucial to triggering the necessary investments,” said Dominik Asam, CFO and member of the Executive Board, SAP SE. “Only by moving from averages to actuals, verified with reasonable assurance, can we avoid free-riders and greenwashing, thus protecting valuable investments and our planet. This is exactly what SAP Green Ledger makes possible.”

Complex sustainability regulations

SAP Green Ledger offers companies a first step towards meeting legal requirements by integrating financial and environmental data. The solution helps companies navigate the complex global landscape of sustainability regulations such as the EU CSRD, while creating a scalable foundation to adapt over time to evolving regulations such as EU ETS and EU CBAM, as well as international standards such as ISSB.

New era of carbon accounting systems

According to SAP, the introduction of the solution marks the beginning of a new era of carbon accounting systems. These are expected to have a significant impact on companies worldwide as decarbonization increasingly becomes a legal and market imperative.

Pilot customer evaluates SAP Green Ledger

SAP Green Ledger was developed with the support of companies such as Accenture, Deloitte, EY, PwC and TCS (Tata Consulting Services), as well as pilot customers such as Covestro. Covestro is currently evaluating SAP Green Ledger in an early pilot phase and is testing the linking of carbon dioxide values to SAP Green Ledger, as they arise in the supply chain during the manufacture of certain products.

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