German software major SAP SE (NYSE: SAP, ETR: SAP) has globally launched SAP Green Ledger, an innovative carbon accounting and reporting system designed to integrate emissions data directly into financial processes.
The move, announced on Monday, aims to transform the way businesses align environmental and financial performance, fostering transparency, compliance, and sustainability.
As decarbonization becomes a critical priority, companies must accurately track carbon emissions to meet evolving regulatory and market demands.
SAP Green Ledger links carbon emissions with specific financial transactions, thereby enabling detailed audits, carbon budgeting, and benchmarking.
“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,” Dominik Asam, CFO and member of SAP’s Executive Board, said in a comment.
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Built to meet current standards like the European Union Corporate Sustainability Reporting Directive (EU CSRD), SAP Green Ledger also prepares for evolving frameworks such as the EU Emissions Trading System (EU ETS) and the International Sustainability Standards Board (ISSB) standards.
Planned updates in 2025 aim to improve supplier sustainability practices and reduce overall emissions.
For the development of the solution, SAP partnered with industry leaders like Accenture, Deloitte, EY, PwC and Tata Consulting Services (TCS), as well as pilot customers like Covestro.
Stephanie Jamison of Accenture stated: “As a strategic co-innovation partner, Accenture helped shape the development of SAP Green Ledger and can apply our understanding of the technology and its capabilities to help our clients get the most for their organization.”
Jennifer Steinmann of Deloitte said: “SAP Green Ledger offers new levels of precision in carbon accounting for organizations 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.”
As an early adopter, Covestro is currently testing the system to connect emissions data from manufacturing to financial reporting.
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