Explaining key features of SAP Green Ledger

The comprehensive benefits of the SAP Green Ledger include the ability to integrate with other systems, including SAP S/4HANA Cloud Public Edition, SAP S/4HANA Cloud Private Edition, or the SAP S/4HANA system including group reporting.

Collect carbon data, capture review, and calculate product and footprints using SAP Sustainability Footprint Management and SAP Sustainability Data Exchange. SAP Sustainability Footprint Management is optional, but it facilitates importing carbon data into SAP Green Ledger.

You can import corporate master data from connected business systems like SAP S/4HANA Cloud Public Edition, thus aligning carbon accounting with the global corporate financial framework.

SAP Green Ledger is the central hub for accounting the carbon data generated by an organization’s activities, or purchased goods and services. You can seamlessly import this data from SAP Sustainability Footprint Management, import it from external sources by uploading spreadsheets, or enter it manually and later post it to the journal on entity level. Journal entries in the green ledger contain detailed line items that contain all types of greenhouse gas emissions:

• Scope 1 - Direct Emissions:

  These emissions are generated as a direct result of your organization's activities.

• Scope 2 - Purchased Energy (Local Based):

  These emissions are indirectly generated by your organization through energy purchased, such as heating and other utilities.

• Scope 3 - Indirect Value Chain Emission:

  These emissions are indirectly generated by your organization through purchased goods or materials.

These details, together with other carbon-relevant attributes, ensure a complete breakdown of the total emission quantities, whether imported from SAP Sustainability Footprint Management, or entered manually. This ensures clear insight into the different emission scopes posted in SAP Green Ledger. You can allocate posted CO2 quantities to specific cost centers, profit centers, or accounts that are responsible for these emissions. This allows you to quantify the global CO2 and financial costs for specific departments, functional areas, locations, profit centers, segments, or units in your company.

Thanks to SAP Datasphere and SAP Analytics Cloud, you can visualize the data in multiple ways and create audit-quality reports to support data-driven decision making. This integration allows you to analyze your carbon data in comparison to your financial data. It allows for analytics on financial dimension in relation to financial figures, such as revenues, margins, or income. Additionally, you can create internal reports and use them to further analyze your carbon data within SAP Green Ledger. The solution includes comprehensive data visualization, trend analysis, CO2e flow statements, and integrated financial statements with CO2e Quantities.

GHG Emissions Overview–GHG Emissions and Finance KPIs: Visualizes GHG emissions and financial KPIs using charts for various scopes and categories.

GHG Emissions Overview–Trend Analysis: Shows the trends in carbon emissions over time, linked with financial metrics like income, margin, and revenue.

CO2e Flow Statement: Presents a CO2e flow statement similar to a cash flow, detailing opening, closing, and changes in CO2e by scope and category over time.

Financial Statement with CO2e Quantities: Combines financial data with CO2e Quantities, allowing comparison of financial performance and carbon emissions across two periods.

For more information, see Green Ledger Reporting for SAP S/4HANA and SAP S/4HANA Cloud.

You can export carbon data from SAP Green Ledger to SAP Group Reporting Data Collection. From there, your data is mapped and imported to group reporting in SAP S/4HANA Cloud Public Edition. The data is consolidated with financial data for group reporting and analysis.

You can use your carbon data to provide actuals for Greenhouse gas (GHG) emission planning. Based on these actuals, emissions and their financial impact can be planned and simulated for future fiscal periods.

Steering businesses towards a decarbonized economy is a major goal today. GHG emission planning extends integrated financial planning by the carbon dimension. It evaluates the financial plan with carbon emission factors, and calculates the future carbon footprints of the organization. The financial plan data, including expenses, activities, and sales quantities, serves as the foundation for calculating carbon dioxide equivalents (CO2e). The same plan structures, such as the quantity structures and allocation rules used for cost allocation, can also be reused to allocate CO2e to respective cost objects, such as cost centers and products. The integrated financial planning model enables the impact of greenhouse gas emissions to be simulated based on various driver parameters, such as emission factors for raw materials, or energy sources.

Watch the video for an example.