Main enterprise useful resource planning (ERP) software program firm SAP introduced in the present day the overall availability of SAP Inexperienced Ledger, a brand new carbon accounting resolution aimed toward enabling corporations to trace and report the carbon footprint of their merchandise, providers and enterprise models.
Initially unveiled in 2023, and forming a part of SAP Sustainability options, the brand new resolution gives a carbon accounting system that straight integrates with an organization’s monetary information, in keeping with SAP, by allocating emissions to financial actions and transactions captured by SAP’s ERP options.
In line with SAP, the brand new carbon accounting resolution comes “as decarbonization turns into a authorized and market crucial,” with the answer aimed toward serving to corporations to deal with regulatory necessities, together with laws and sustainability reporting frameworks such because the EU CSRD and the ISSB requirements, in addition to the EU Taxonomy and CBAM.
Key options of the SAP Inexperienced Ledger embody the flexibility to forecast, funds, and contextualize carbon and monetary information at a transactional stage, analyze Scope 1, 2 and three aligned with monetary information, hint and audit carbon footprints alongside the worth chain, apply standardized accounting practices to carbon accounting, and deal with CSRD, ISSB, and different regulatory necessities.
Dominik Asam, CFO and member of the Govt Board of SAP SE, mentioned:
“Huge investments are required to abate CO2 with a view to curb international warming. In addition to good, dependable regulation additionally correct information on emissions alongside the availability chain is paramount to set off the mandatory funding. Solely by transferring from averages to actuals – audited at cheap assurance – can freeriding and greenwashing be prevented, thereby defending such beneficial funding and our planet.”
SAP added that the brand new carbon accounting resolution was developed with assist from corporations together with Accenture, Deloitte, EY and Tata Consulting Companies (TCS), in addition to with Covestro, which is at the moment evaluating the answer in an early pilot part.
