Sustainability Blogs
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Customers all across the world are adopting environmentally conscious decisions, and large corporations are being scrutinized for their carbon footprints. Companies are well-positioned to take control and ownership of the impact of their business actions on the environment, thanks to robust carbon accounting software. If you need carbon accounting for your organization, SAP has a one-stop solution for all of your carbon accounting needs.

SAP is a software corporation with a global client, partner, employee, and thought leader network. SAP's carbon accounting software estimates your carbon footprint and helps you decarbonize your value chain. SAP offers its customers a cradle-to-gate carbon footprint estimate. Before diving deeper into carbon accounting using SAP,   let us first discuss the benefits of carbon accounting and a little bit about SAP. 


Why is Carbon accounting important? 

Carbon accounting systems are critical for every business to determine where the greatest opportunity for emission reduction exists. "You can't manage what you can't measure," as the saying goes, perfectly sums up the necessity for carbon accounting.  Companies that seek to reduce their overall environmental effect must first understand it thoroughly. Carbon accounting is separated into two categories: physical carbon accounting and financial carbon accounting. Physical carbon accounting is a way of assessing direct and indirect carbon emissions from the industrial activity of a firm or country into the Earth's atmosphere. Financial carbon accounting, on the other hand, tries to give the carbon produced and absorbed a financial market value through activities and its supply chain. A corporation may make essential modifications, reduce GHG hotspots, and eventually optimize its resource efficiency by detecting inefficiencies within its processes. 

What is SAP?

SAP is an abbreviation for German Systemanalyse Programmentwicklung, which translates to System Analysis Programme Development.  This company is one of the world's major manufacturers of software for business process management. SAP is the industry leader in business application software, reinventing ERP and developing networks of intelligent firms that deliver transparency, robustness, and sustainability throughout supply chains to enable companies of all sizes and sectors to perform better. The company's comprehensive range of apps and services enables its customers to operate profitably, continually adapt, and make a global difference. SAP help businesses calculate their climate impact and has expanded its capabilities of the Sustainability Footprint Management tool in S/4HANA Cloud and added new tools to enable enterprises to exchange detailed greenhouse gas emissions data with their partners in a standard format.



  • The company has 105,000 , employees from more than 157 countries

  • The company has more than 24,000 partners globally.

  •  The company has more than 280 million subscribers in their cloud user base.

  • It has approx 100 development locations worldwide.

  • SAP has earned 1st rank software company on the Dow Jones Sustainability Index for 16 years.

SAP Carbon Accounting


SAP has launched future-proof transactional carbon accounting solutions to enable more precise and detailed tracking of emissions across company activities and supplier chains:

  • SAP Sustainability Footprint Management is a solution for calculating and managing carbon flows across GHG Scope 1, 2, and 3 emissions, and it integrates with SAP S/4HANA for precise and quick emissions estimates.

  • SAP Sustainability Data Exchange: An application for securely transmitting standardized sustainability data along the value chain utilizing PACT standards.

  • Green Ledger: Green Ledger integrates financial and environmental data for better decision-making and insights, and is included in RISE and GROW with SAP for SAP S/4HANA Cloud.

These systems deliver accurate, transparent, and auditable carbon data for better decision-making, allowing businesses to establish precise net-zero objectives and maximize the decarbonization effect. Executives may attain a comprehensive, enterprise-wide performance capacity by incorporating sustainability data into fundamental business activities via ERP.


SAP Sustainability Footprint Management

SAP sustainable footprint management consists of the following steps: 

  • Calculate your carbon footprint by importing data through fast integrations and automated processes.

  • Based on auditable product and business carbon footprint evidence, you may report with confidence. 

  • Act swiftly to decarbonize your company and demonstrate your success with granular transparency.

SAP Sustainability Data Exchange

It is a new application meant to securely share standardized sustainability data along the value chain, including product footprints. By receiving actual carbon data directly from suppliers, the program enables pinpoint accuracy. SAP Sustainability Data Exchange, a component of SAP Business Network, adheres to the carbon data interoperability criteria set out by the Partnership for Carbon Transparency (PACT), which is maintained by the World Business Council for Sustainable Development (WBCSD). The beta version is now accessible, and the full version will be released in Q3 2023.

Benefits of Carbon Accounting Using SAP 

  • Calculating the footprint from cradle to grave - Assess your environmental footprint using auditable product and business carbon footprint assessments that take into account resources, transportation, and manufacturing.

  • carbon accounting software that supports Scope 1, 2, and 3 transparency and delivers analytical insights from footprint data is used to decarbonize company activities. 

  • Integrating for precise computations - To improve your footprint distribution, import data from SAP S/4HANA, suppliers, third-party sources, and facility energy flows.

Features of carbon accounting by SAP 

  • Reuse current company data, organizational frameworks, and logic from SAP S/4HANA Cloud and SAP S/4HANA in an integration scenario. By integrating footprint calculations it broadens the SAP S/4HANA business operations. 

  •  Management of emission factors The lifecycle assessment content providers' industry averages for software use and the import footprints that the vendors themselves provided. Additionally, it maps business data to emission factors with guided design.

  • Scalable footprint calculation - The program simulates the energy flow in your facility or manufacturing line and generates and monitors footprints in a graphical manner. It also controls inventory ranges and footprints for transport. 

  • Footprint analysis for insights: With SAP software, customers may access a variety of dashboards that provide complete transparency and insightful data about their business and value chain. Additionally, all of the transport routes and related emissions are visualized and analyzed using charts and maps.