Highlighting the Value Added with RISE with SAP or GROW with SAP

SAP's Cloud-based and ERP-centric approach to sustainability management supports companies no matter at which point of their sustainability journey they are. Some are just starting, while others are leading by setting ambitious internal and external ESG goals beyond basic compliance.

For enterprises beginning their sustainability transformation, SAP's approach is for them to startwith simple, reliable tools for regulatory compliance, and then expand and evolve in their ability to make data-driven decisions to where they can act and lead. As they mature in their sustainability journey and leverage the deeper insights SAP's solutions provide, customers can turn disruption into a competitive advantage by increasing market share, attracting top talent, boosting brand equity, and strengthening investor relations.

Start now Establish the foundation	Expand and Evolve Build a future-proof platform	Act and Lead Empower transaction-level decisions
Leverage cloud ERP-centric data: With foundational solutions to address essential corporate carbon footprint, and ESG data management and disclosure needs	Enhance data sourcing, trust, quality, and granularity: Utilize modular cloud architecture to drive operational action in sales, finance, procurement, and the supply chain	Bring the sustainability dimension into everyday decision: With continuous, AI-enabled innovation, increasing profit, decreasing cost, and gaining a competitive advantage
Start by using aggregated average data, for example by calculating a simple but regulations compliant Corporate Carbon Footprint as required by the EU Corporate Sustainability Reporting Directive (CSRD) with spend-based and average industry values in SCT	Move from average to actual data by gradually replacing aggregated average data with data based business transactions with SFM and actual supplier data with SDX.	Leverage transactional actuals for additional insights, for example by integrating carbon with financial data

Let's now explore how a sustainability journey can look like with the example of building capability for a green ledger.

To bring the green ledger to life, several enabling capabilities will come together: ESG data management, carbon footprint calculation, carbon data exchange, and the ledger-based allocation of carbon and financials.

ESG Data Management

This is where organizations can set targets to holistically steer their business to achieve their sustainability goals; monitor progress and gain actionable insights from dependable sustainability data, and gain trust by establishing robust and auditable ESG reporting to global standards

Footprint Calculation

In the center is the footprint calculation itself. Here the emissions of products and corporates are calculated using different calculation methodologies that lets you start your climate action journey today. The differentiating capability of SAP is the link between SAP's footprint calculation software and existing ERP data on transactional level. An important differentiator when you want to transition towards real transactional carbon accounting.

Carbon Data Sharing

SAP's aim is to provide actionable data, that offer the required accuracy to trust your decisions based on this data. To achieve this, supplier data, replacing industry averages with actuals, are required. This journey will move gradually as suppliers have to be enabled to calculate and report the products footprints as well, but we will work to keep the entry barrier low: easy selection of your high impact suppliers, request, receive and manage of footprint information in one solutions.

Transactional Data Foundation

Carbon data on a transactional level can seamlessly allocate to financial data as starting and endpoint of information for carbon calculation. This difficult task is possible because the foundation and endpoint are located in the same ERP system by SAP. The vision is a system with transactional carbon data and finance data in one single ledger, the green ledger. From there, it can be shared to many business applications for enhanced decision making based on both sustainability and financial insights.

With a true SaaS model, SAP can maintain agility, adjusting SAP's software to meet the evolving needs of a highly dynamic field in which we expect a significant amount of policy and regulatory changes to emerge.

To summarize, let's take a look at the following initiatives which are enabled by the power of RISE and GROW and Sustainability: