EU Directive Obliges Companies to Report their CO2 Emissions

SAP Green Ledger:
Carbon Accounting for Your Greenhouse Gas Emissions

The time has come: From 2024, the EU's new Corporate Sustainability Reporting Directive (CSRD) will tighten sustainability reporting obligations. Companies must therefore be able to determine and monitor their CO2 emissions more accurately. To satisfy these requirements, SAP Green Ledger provides innovative climate protection solutions to record emissions along the supply chain.

It is already very late in the day for companies to start implementing the CSRD. In future, it will no longer be enough for companies to conduct their carbon accounting via spreadsheets or semi-automated tools that use estimates and average values to determine their carbon footprint. In order to drive forward decarbonization of the economy and meet current climate targets, the new EU directive obliges companies to report their actual CO2 emissions from their business processes and supply chains – just like they report their financial transactions.

As a result, companies require a carbon accounting system that gives them access to accurate, detailed, comparable data. Green Ledger, a new offering from SAP, supports this process.

How Does SAP Green Ledger Benefit Companies in Terms of Sustainability and Resource Conservation?

SAP Green Ledger combines multiple capabilities and technologies to account for the greenhouse gas emissions associated with every business transaction. SAP Sustainability Footprint Management can be used to record and analyze the carbon footprint and other environmental data relating to products and suppliers. Recording this data allows companies to accurately calculate greenhouse gas emissions along the entire supply and value chain, and to do so at company, process and product level.
 

EU Directive Obliges Companies to Report their CO2 Emissions
Green Ledger: The "Footprint Overview" records the CO2 emissions of each business transaction


SAP Sustainability Footprint Management is seamlessly integrated into SAP S/4HANA, creating a solid data basis for calculating the carbon footprint directly from individual transactions.

Which Analysis Options Does SAP Green Ledger Offer for Evaluating Sustainability Performance and Risks?

SAP Green Ledger makes all emissions comparable through standardized reporting that covers all environmental, social and governance (ESG) requirements. This enables companies to meet the CSRD requirements and provide them with a basis for reducing pollutants and acting responsibly.
 

EU Directive Obliges Companies to Report their CO2 Emissions
”Manage Footprint Results” in SAP Green Ledger provides an overview of greenhouse gas emissions at product level


Which Environmental and Sustainability Data Can SAP Green Ledger Collect and Process?

Companies need to redefine the concept of "resource" and extend it beyond financial accounting. SAP's sustainability solutions provide a consistent approach and allow for the transactional accounting of greenhouse gas emissions. SAP Sustainability Data Exchange enables companies to securely exchange standardized sustainability data with business partners in the value chain. The application collects actual CO2 data directly from suppliers, thereby providing transparency and in-depth insights. As part of SAP Business Network, which is a comprehensive platform for B2B collaboration, SAP Sustainability Data Exchange uses SAP standards for the exchange of emissions data.
 

EU Directive Obliges Companies to Report their CO2 Emissions
"Purchased Products” in SAP Green Ledger provides information about the carbon footprint of purchased goods


Why Is XEPTUM Your Ideal Partner for Implementing SAP Green Leger?

Sustainability has become a key issue in business, politics and society. As a result of mandatory CO2 reporting obligations from 2024, your company must also be able to accurately determine its greenhouse gas emissions and evaluate them just like their financial transactions.

Step into the new era of SAP Green Ledger! Thanks to our many years of project experience and expertise in SAP process and data management, we can provide you with targeted support. Get in touch with our team of XEPTUM consultants! We can develop a customized SAP Green Ledger implementation roadmap, which will enable your company to seamlessly integrate all legally required sustainability KPIs into your SAP system landscape.

Share Article


Back to overview