Sustainability is rapidly gaining importance in the business world. More and more companies are making “Environmental, Social & Governance (ESG)” an immovable pillar of their business strategy. Regulatory provisions such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) require companies to intensify their sustainability efforts and report their progress transparently.
It is difficult to measure and record the emissions caused across the entire supply chain.
The relevant data is often scattered across different IT systems and the database is incomplete.
Data is currently often compiled in Microsoft Excel, which involves a great deal of manual effort for those involved and is prone to significant errors.
In their current study “The State of ESG & Sustainability Reporting”, the analysts at BARC examine the challenges that companies encounter in running ESG reporting. The most frequently identified challenges are:
Lack of quality and reliability of data (42%)
Too many different data sources (36%)
Lack of resources (32%)
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Compliance with regulatory requirements
Transparency about your own carbon footprint
Creation of a reliable data basis
Significant cost savings through derived sustainability measures
Considerable reduction in the effort involved in data collection and reporting
Avoidance of manual errors through automated reporting
Focus on action planning instead of reporting
The regulatory pressure on medium-sized and large companies in terms of sustainability reporting will continue to increase. The Corporate Sustainability Reporting Directive (CSRD) significantly expands the group of companies subject to reporting requirements. In Germany alone, around 15,000 companies will have to disclose their sustainability activities from the 2025 financial year. ESG reporting plays a crucial role in meeting this requirement.
More and more companies are asking their business partners and suppliers for proof of their efforts to reduce their carbon footprint and achieve climate neutrality as a prerequisite for cooperation. If companies have an ESG reporting, they can provide direct information on this. Access to the capital market is also made easier as investors pay more attention to sustainable business practices.
Similarly, applicants are increasingly making their decision for or against an employer dependent on its efforts in terms of sustainability. ESG reporting is therefore an opportunity to actively counteract the shortage of skilled workers and strengthen the company’s positive public image.
Creation of a professional concept/specification sheet
Fulfillment of regulatory requirements
Selection of a suitable emission factor database (Ecoinvent, Gabi, gov.uk, open Data...)
Definition of dimensions and key figures for ESG reporting
Access to an extensive partner network of sustainability experts
Identification of the optimal variant for the technical implementation, taking into account the existing system landscape
Implementation, sizing, configuration and connection of the standard tools SAP Sustainability Footprint Management and SAP Sustainability Control Tower
Development of an individual solution based on SAP BW or SAP Datasphere as a data warehouse and SAP Analytics Cloud as a front-end tool
In the case of a third-party sustainability solution: provision of the relevant data from SAP systems (SAP S/4HANA, SAP ECC, SAP BW ...) and processing using extractors/CDS views
Operation of the ESG reporting solution by our Customer Success
SAP Sustainability Footprint Management (SFM) provides a detailed overview of a company’s emissions. These emissions can be split up, for example, according to the various scopes, the materials purchased or the main energy consumers. Companies receive a comprehensive overview of their ecological impact and can take targeted measures to reduce their emissions.
The carbon footprint of the exemplary product “Chocolate Cake” is illustrated with the help of a Sankey diagram. The diagram visualizes how the emissions are distributed along the value chain – from the raw materials to the finished product. This illustration provides companies with valuable insights to identify emissions and take targeted measures to reduce their carbon footprint.
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