Since 2021, has been SAP鈥檚 solution for calculating EPR fees across markets. At that time, the number of jurisdictions with installed mandatory EPR was around 60. By 2030, that number is expected to grow to 200.

With an evolving regulatory landscape, 51风流has implemented new updates within the solution to help ensure that customers can navigate diverse reporting requirements, deadlines, and fees while increasing accuracy, reducing fees and exposure, and improving insights. Read on for updates about recent innovations and how the solution combines enterprise data with information about local and global regulations to help calculate obligations like the EU Packaging and Packaging Waste Regulation (PPWR).

Meet EPR regulations with a flexible, AI-driven, and configurable approach

To date, 51风流Responsible Design and Production has supported customers in meeting EPR requirements with out-of-box report categories that are pre-configured based on country. However, the new global regulatory landscape necessitates a more flexible approach.

Enterprises need solutions that enable them to:

• Understand obligations and quickly adapt to new or changing regulations.
• Prepare the data, consolidating from many sources.
• Prepare reports, which requires custom reporting logic based on specific business contexts; reuse of rules and fee structures across similar reporting schemes or producer responsibility organizations (PROs); and calculating EPR fees against shipments and printing the results on invoices to show customers the breakdown between product costs and indirect taxes.

To address these challenges, 51风流Responsible Design and Production introduced user-defined reports to help enable customers to design their own sustainability reports, tailoring them to match unique regulatory logic, business context, and compliance requirements.

With new innovations in 51风流Responsible Design and Production, users can:

• Structure reports according to the specific rules, PRO requirements, and fee models relevant to their business.
• Precisely narrow down to the packaging and transactional data that is being reported.
• Satisfy complex requirements with multiple dimensions used in report output structure.
• Integrate reports with external and third-party recyclability guidelines assessments.
• Report and comply with the increasing number of PROs that have incorporated eco-modulated ERP fees with eco-modulation grading capabilities.

AI capabilities enhance efficiency and accelerate readiness

The 51风流Sustainability portfolio can deliver AI-led operational transformation by capturing sustainability data at the source and embedding intelligence directly into core business processes, thereby enabling continuous improvement at scale. In 51风流Responsible Design and Production, two AI cases involving user-defined reports are in beta testing:

51风流Responsible Design and Production, AI-assisted user-defined report explanations

This capability uses AI to analyze and describe how developed extended producer responsibility rules contribute to the assessment results of selected product packaging. During the development of user-defined report categories, EPR report specialists may struggle to understand why a given packaging was categorized in a certain way or not categorized at all. The AI use case is intended to help resolve and simplify an error-prone process by which specialists manually recheck packaging data and reevaluate rules.

51风流Responsible Design and Production, AI-assisted rule creation for user-defined reports

This capability uses AI to translate from regulatory language to system rules, empowering packaging compliance managers to create and validate EPR reporting rules faster and with higher accuracy. The AI use case is intended to help reduce manual effort, avoid costly compliance errors, and accelerate report readiness across markets.

Prepare for future compliance and competitive advantage using AI

The EU PPWR is coming, and most companies aren鈥檛 ready. PPWR introduces significant obligations for all economic operators placing packaged goods on the EU market. Brand owners, importers, packaging manufacturers, distributors, and digital marketplaces are all impacted. To mitigate risk and ensure readiness, businesses must take immediate action to assess and adapt packaging materials, data systems, and regulatory reporting.

The detailed packaging data management offered by 51风流Responsible Design and Production will help enable organizations to efficiently handle PPWR compliance. With robust data capture and flexible reporting, companies can anticipate regulatory changes and maintain transparency throughout their packaging supply chain.

51风流Responsible Design and Production is working on document of compliance capability, recyclability assessments using real product shipment data, so you can assess which changes have the biggest impact. Stay tuned for future announcements from 51风流on this topic.

An ERP-centric framework for many business outcomes

By enabling organizations to build reports that align with their changing needs, 51风流Responsible Design and Production can ensure that compliance remains agile, scalable, and future-ready. The solution can connect design, production, and regulatory demands to enable organizations to minimize waste, optimize costs, and adhere to global sustainability standards.

Unlike standalone compliance tools, 51风流Responsible Design and Production operates within an ERP-centric framework, helping to ensure seamless integration with existing 51风流solutions for product master data and transaction data.

Traditional, manually intensive processes are not enough to keep pace with regulations and ensure competitive advantage by unlocking data insights. One 51风流Responsible Design and Production customer recently confirmed that using the solution was four times faster and less expensive than manual processes with a spreadsheet or using consultants.

With 51风流Responsible Design and Production, your organization can be empowered to respond swiftly and confidently to regulatory changes, working to ensure compliance while freeing your teams to focus on business impact that matters.

Listen to the recent to discover how businesses can address upcoming PPWR requirements with 51风流solutions.

Learn more about user-defined report capabilities or request a demo of 51风流Responsible Design and Production. Read these customer stories:

Gunther Rothermel is chief product officer for 51风流Sustainability.

The major topics of geopolitical risk, artificial intelligence, and economic uncertainty consistently circled back to environmental exposure and long-term resilience, pointing to a broader shift: sustainability is becoming less of a separate agenda item and more an underlying consideration in enterprise risk and strategy.

For leaders looking to shape the next phase of business, two major and consequential themes emerged.

1. AI is a sustainability enabler with responsibilities

Artificial intelligence was central to many Davos discussions this year, including those touching on sustainability. The focus was less on experimentation and more on how AI is already influencing operational and strategic decisions.

In several sessions, leaders pointed to practical applications where AI, combined with sustainability and operational data, is helping organizations to reduce waste, improve resource efficiency, and better anticipate environmental risks.

At the same time, there was no lack of recognition that AI brings new challenges. Its growing energy and water requirements, along with questions around governance, transparency, and equity, featured prominently in discussions. Leaders emphasized the fact that AI鈥檚 sustainability value depends heavily on how well it is integrated into existing business systems and decision-making processes, rather than deployed as a standalone technology. This was also underscored by broader analysis showing that emerging regulatory frameworks are struggling to keep pace with AI鈥檚 environmental footprint and governance needs. 

For many organizations, the focus shifted towards while remaining aligned with enterprise governance and financial oversight.

2. Water is key to societal and economic stability

One of the most prominent sustainability topics at Davos 2026 was water. Across both formal and informal sessions, leaders discussed water and ocean health as a foundational element to stable societies, economies, and business continuity.

Much of the conversation focused on the growing gap between economic dependence on water and the level of investment dedicated to protecting and managing water systems. With a significant share of global GDP in the coming decades, participants highlighted the operational and financial implications for supply chains, production facilities, and communities. According to the , 31% of global GDP could be located in regions of high water stress by 2050, underscoring the urgency of rethinking water investment and risk. 

To this end, new collaborative initiatives were announced during the week, including efforts aimed at integrating water considerations more directly into corporate strategies and strengthening ocean stewardship across industries. For example:

• were selected at Davos to boost water resilience across infrastructure, industry, and agriculture systems. 
• were launched to accelerate water finance and investment ahead of the 2026 UN Water Conference. 
• was directed at bridging the 鈧�6.5 trillion global water infrastructure gap, and commitments were made to mobilize private capital and improve water resilience strategies. 

These discussions signaled a move away from viewing water solely through a sustainability reporting lens and toward understanding it as a material risk and resilience issue for businesses.

What can business leaders take away?

While AI and water dominated the headlines at this annual meeting, sustainability quietly permeated most strategy meetings, with three takeaways arising as directional signals for leaders looking to build resilience into their business:

Sustainability is increasingly understood as financial risk

One of the clearest signals from Davos was the extent to which sustainability risks are now discussed in financial terms.

The World Economic Forum鈥檚 , released shortly before the meeting, reinforced this view by ranking environmental risks (including extreme weather and biodiversity loss) and critical changes to Earth systems among the most severe long-term global threats. The same report also highlighted that adverse outcomes from artificial intelligence are rising sharply in long-horizon risk rankings, reflecting growing concern about both technological and environmental disruption. 

While geopolitical and economic issues dominated short-term attention at the annual meeting, environmental risks were consistently framed as persistent factors shaping long-term planning and resilience strategies.

Furthermore, the role of the CFO is also evolving to meet sustainability requirements, including reporting non-financial KPIs, managing plastic and carbon taxes, steering the business, and aligning business decisions with carbon and environmental cost trade-offs. and management solutions can provide the capabilities needed to address CFO sustainability priorities.

As 51风流Chief Sustainability & Commercial Officer Sophia Mendelsohn noted during the week,聽“Sustainability remains firmly planted in both the Davos agenda and the minds of the CEO and CFO. The reality of climate change persists鈥攂oth its risks and opportunities, and they are already showing up on the balance sheet.“

For many executives, this framing reflects how sustainability considerations are increasingly influencing investment decisions, insurance strategies, and assessments of long-term enterprise value.

The focus is shifting from ambition to execution

Davos discussions also underscored a growing emphasis on execution. While sustainability remains firmly planted in the C-suite agenda, many leaders acknowledged a gap between ambition and implementation.

Despite years of commitments and target-setting, fewer than one in five companies have implemented climate adaptation and mitigation measures at scale. This is that helps explain why sustainability strategies are now evaluated more closely through the lens of financial feasibility, operational readiness, and data credibility.

In an environment where sustainability investments compete with other priorities, including AI and digital infrastructure, leaders emphasized the need for clear business cases and measurable outcomes. Sustainability initiatives that can demonstrate value creation and risk reduction are more likely to secure long-term support.

Integration decides whether sustainability insights lead to action

Data availability is no longer the primary challenge for most organizations. The tools to measure emissions, water use, climate exposure, and supplier impacts are widely accessible. What remains difficult is turning that information into decisions.

Across Davos, there was broad agreement that sustainability data needs to be integrated into core business systems for planning, procurement, asset management, and finance. When sustainability information sits outside these systems, it tends to inform reporting rather than operational or strategic action. When it is embedded, it can support more forward-looking decisions around resilience, investment, and supply chain design.

This shift toward integration reflects a broader understanding that sustainability efforts are most effective when they are aligned with how the business already operates.

connects business and sustainability data to help give full visibility across a company鈥檚 value chain, enabling it to align business objectives with sustainability priorities across areas like material choice, efficient transport and distribution, improved asset performance, and reduced carbon impact.

Davos 2026 clearly reflected a maturing phase of the sustainability conversation, one that is less about visibility and increasingly about how organizations can confidently prepare for the decade ahead.

For business leaders shaping sustainability strategies, there is a pressing need to make plans financially grounded, operationally integrated, and supported by reliable data.

Enterprise systems play an important role in this transition. When sustainability information is connected across business functions, leaders gain clearer insight into risk and opportunity, supporting more resilient and informed decision-making.

Monica Molesag is global head of Sustainability Communications at SAP.

In 2026, that distinction is becoming increasingly blurry.聽Extreme heat, water scarcity, flooding, wildfires, and energy volatility are affecting cost structures, disrupting supply chains, and constraining labor productivity and capital planning. These factors increasingly show up in routine operational and financial decisions and interact with broader economic dynamics. Climate impacts intersect with聽geopolitical competition, supply-side volatility, and regional fragmentation.聽At the same time, the transition to a low-carbon economy continues to progress unevenly across markets, with carbon increasingly subject to pricing, regulation, and disclosure expectations.

Together, physical climate impacts and transition pressures are influencing how companies plan, invest, and聽operate. Many organizations are approaching adaptation and mitigation as an integrated business capability, on par with聽financial management,聽supply chain聽planning,聽or cybersecurity.

Why adaptation and mitigation demand sustained leadership attention

聽projects that physical climate risks could more than triple corporate financial exposure by 2050, driven by asset damage, supply disruptions, and productivity losses. Despite this growing聽exposure,聽however, fewer than one in five companies have implemented adaptation measures at scale.

This widening gap between risk and readiness has profound implications for CEOs and聽boards, who聽recognize this threat. A聽聽found that business leaders聽identified聽extreme weather events as the greatest long-term business risk, with cascading effects across economic stability, supply chains, and social cohesion.聽Climate risk is now:

• Financial, affecting margins, asset values, insurance availability, and cost of capital
• Operational, disrupting production,聽logistics, and workforce availability
• Strategic, influencing where companies invest, source, and grow
• Reputational, shaping trust with investors, customers, regulators, and employees

For many leadership teams, climate adaptation and mitigation have become part of the broader challenge of enterprise readiness.聽In some cases, they are also influencing access to capital, insurance terms, talent聽attraction,聽and long-term market positioning.

Going beyond the contingency mindset

A common constraint on progress is how climate adaptation is still framed inside organizations.

When it is treated primarily as contingency planning, it tends to be reactive and episodic. Plans are developed, documented, and revisited only after disruption occurs, while ownership is often spread across risk, sustainability,聽operations,聽and finance teams with limited integration into core decision-making.

A capability-based approach works differently. Business capabilities are embedded and聽inform聽everyday decisions, supported by data, systems, governance, and incentives.

Climate capability聽emerges聽when organizations integrate climate risk, resilience, and carbon considerations into the core of how the enterprise runs.

The four pillars of climate capability

1. Supply chains designed for disruption

Global supply chains are increasingly exposed to climate volatility and regulatory pressure. Highly optimized, linear supply chains designed primarily for cost efficiency have shown limitations under these conditions. Many organizations are adjusting value chains to improve resilience and address emissions. Supplier diversification, regionalization, circular material flows, and better data sharing can reduce exposure to physical disruption and, in many cases, lower Scope 3 emissions. In practice, efforts to improve decarbonization and resilience often reinforce one another.

What this requires is more reliable,聽timely聽data across supply chains, so that COOs are empowered to turn insights into meaningful outcomes.

2. Assets and infrastructure built for a changing climate

Facilities, equipment, and聽logistics聽networks are increasingly exposed to chronic stresses, such as heat and water scarcity as well as acute events like flooding. At the same time, carbon-intensive assets face growing transition risk as energy systems and regulations evolve.

A capability-based approach evaluates assets through a dual lens: physical climate exposure and carbon intensity. This informs where companies聽locate聽facilities, how they聽maintain聽them, and when they invest in retrofits, electrification, or renewable energy.

Investments in energy efficiency and clean energy can reduce emissions while also moderating exposure to energy price volatility and supply disruptions.

3. Workforce resilience as a business priority

Climate impacts are also affecting people. Rising temperatures and extreme weather are already reducing labor productivity and increasing health and safety risks in many roles and regions.

聽estimates聽that heat stress alone could result in the equivalent of 80 million full-time jobs lost globally by 2030 under a 1.5掳C warming scenario. Organizations that treat workforce resilience as a core business issue are adjusting schedules, working conditions, training, and safety protocols, protecting people while maintaining productivity.

4. Financial decision-making informed by climate reality

Despite growing awareness, climate data is often still disconnected from financial planning and analysis.聽聽that while聽67% of companies聽identify聽climate-related risks with potential聽financial impact, only a fraction can quantify those risks with enough precision to guide investment decisions.

A capability-based approach incorporates carbon and climate risk into financial models. This allows leaders to assess physical risk, transition risk, and return on investment together, turning climate action into a disciplined, value-driven decision process.聽, like聽听补苍诲听, can empower organizations to drive actionable climate strategies and unlock measurable impact by helping them integrate sustainability into core business processes through the combination of trusted financial data and granular carbon insights.

A C-suite framework for climate capability in 2026

Across industries, five leadership actions will define those organizations building true climate capability:

1. Embed climate and carbon assumptions into core business planning and governance.
2. Redesign value chains for resilience and emissions reduction.
3. Protect assets and people with predictive, forward-looking insight.
4. Align mitigation and adaptation with financial strategy.
5. Measure resilience and emissions together, not in isolation.

Together, these actions help shift climate efforts from parallel initiatives into a managed enterprise capability, one that聽determines聽operational continuity, financial resilience, and long-term competitiveness.

聽about how you can build a more compliant, sustainable, and resilient business with 51风流Sustainability solutions.

Sophia Mendelsohn is chief sustainability and commercial officer at SAP.

SAP鈥檚 goal is equally clear: enhancing our sustainability impact to help the world run better and improve people鈥檚 lives. The question is how do we navigate this complex terrain without losing our way?

The challenge: from sustainability metrics to actionable insights

Corporate sustainability reporting has evolved significantly in recent years. However, many organizations still face the fundamental challenge of translating complex environmental and social data into insights that drive strategic change.

Sustainability metrics such as 鈥�0.15 micrograms of fine dust per cubic meter鈥� or 鈥渇ive liters of water consumed鈥� are scientifically accurate but difficult to interpret, especially for decision-makers without deep sustainability expertise. Just as hikers need a reliable navigation system, businesses need a common language to translate diverse sustainability indicators into comparable, actionable insights.

This is where impact measurement and valuation (IMV) comes into play.

The approach: how IMV translates complexity into business-relevant insights

SAP鈥檚 IMV approach encompasses three steps.

Step one: A language everyone understands鈥�translating societal impacts into monetary units

The IMV framework quantifies the costs and benefits of corporate activities to society and the environment. It builds on environmental, social, and governance (ESG) data that many companies already report and translates these into a single monetary metric, for example, Euros or U.S. dollars.

This is like moving from vague trail descriptions to precise GPS coordinates that everyone can understand. When sustainability indicators are expressed in a common unit, companies can clearly see where they stand, evaluate trade-offs between different sustainability dimensions, and compare them alongside financial impacts.

As a tangible example, the environmental impact of greenhouse gas (GHG) emissions can be monetized by multiplying a company鈥檚 reported emissions by the social cost of carbon, . This converts abstract data into a clear, actionable signal, allowing companies to compare impacts across different ESG and financial indicators. With this clarity, businesses can focus on the most impactful sustainability initiatives鈥攖hose that deliver the greatest contribution to GHG reduction goals while evaluating both financial and sustainability return on investment.

Step two: Determining relative position鈥攃omparing performance to peers

Once you know your exact position, you need a reference point to understand how well you鈥檙e performing. It’s like trail runners who want not only to reach the summit, but also to understand their performance along the way. Your GPS shows you where you are, but to improve, you need to compare your data against other runners.

Impact benchmarks complement IMV by providing reference values that show how a company鈥檚 sustainability performance compares to industry peers. These benchmarks act like performance markers, helping businesses identify where they are ahead, behind, or on par鈥攇uiding decisions to improve toward maximum positive impact.

Step three: Identifying hotspots鈥攆ocusing on maximum impact

The global sustainability agenda demands urgent, focused action. IMV and impact benchmarks together provide data-driven insights that pinpoint where a business has the greatest leverage to amplify positive and reduce negative impacts.

For example, in SAP鈥檚 human rights risk assessment and double materiality analysis, these insights helped narrow down the most material sustainability topics, critical value chain stages, and high-risk countries or industries. This approach uncovers opportunities where improved sustainability performance drives long-term competitive advantage and highlights risks such as supply chain vulnerabilities and regulatory exposure.

Navigating together: collaboration for sustainable impact

51风流has adopted this methodology as a founding member of the (VBA), a nonprofit coalition of multinational companies dedicated to establishing a globally accepted sustainability management accounting and steering system. In collaboration with the , a scientific research organization specializing in impact valuation, 51风流has analyzed its societal impacts (step one), applied industry benchmarks to contextualize performance (step two), and integrated these insights into core reporting and steering processes (step three).聽

This collaborative approach ensures that the data guiding SAP鈥檚 sustainability strategy is independent, credible, and scientifically validated, enhancing both internal decision-making and transparency for investors and external stakeholders.

“Impact measurement and valuation provides the scientific foundation for sustainability steering, allowing organizations like 51风流to understand their impacts holistically and prioritize decisions based on statistical evidence.”

Dr. Richard Scholz, Head of Impact Analysis at WifOR

The results: what SAP鈥檚 analysis reveals and how it drives strategic decision-making

The graphic below illustrates SAP鈥檚 sustainability performance compared to industry benchmarks, the result of step two. The analysis covers SAP鈥檚 entire supply chain from direct suppliers to sub-suppliers as well as SAP鈥檚 own operations. A methodology for quantifying downstream impacts, such as the effects of software in use, is currently under development.

The analysis identifies both positive and negative impacts. Areas where 51风流shows a higher negative impact than the industry average are highlighted in red, indicating priority areas for mitigation. In contrast, smaller negative or larger positive impacts indicate stronger ESG performance.

Key findings

• Social performance: Supply chain data reveal mixed results regarding living wages. While most supply chain workers earn above living wage thresholds, reflecting positive impacts, the analysis also identified risk hotspots, enabling 51风流to take targeted action. In response, the Human Rights team at 51风流partnered with procurement, suppliers, and multi-stakeholder initiatives to develop and implement risk mitigation strategies. IMV data allowed these efforts to focus on the countries, industries, and vendors with the highest risk, ensuring that improvements are driven where they matter most.
• Environmental performance: GHG emissions results reflect strong progress toward SAP鈥檚 , with positive results across both direct operations and upstream activities. While water consumption is not considered material for 51风流at the group level, we address identified local hotspots through local environmental management programs, including site-specific water management measures to ensure responsible resource use.

Leading by example

As a global technology company supporting the majority of the world鈥檚 business transactions, next to enabling our customers on their positive impact journey through our solutions, we want to lead by example.

Our corporate sustainability approach creates positive economic, social, and environmental impact while respecting planetary boundaries and human rights.

To achieve these goals, 51风流relies on tools such as IMV that help us assess and prioritize the measures with the greatest leverage鈥攎aximizing positive impacts and minimizing negative ones.

“Sustainable transformation is only possible when we base our decisions on reliable data. With IMV, we make sustainability measurable, comparable, and actionable. This enables us to create transparency, set clear priorities, and take responsibility. By focusing on areas where we can achieve the greatest positive business and sustainability impact, we ensure that our actions are both meaningful and effective.”

Matthias Medert, Global Head of Sustainability at SAP

The journey ahead

The climb toward impact-based decision-making continues. Just as hikers rely on navigation tools to traverse challenging terrain, we use IMV as our guide to ensure every step brings us closer to our sustainability goals.

Looking ahead, we aim to expand the methodology, contribute to cross-industry standardization, and foster multi-stakeholder collaboration to accelerate the adoption of impact-based decision-making across global value chains. Through 51风流cloud solutions for sustainable enterprises, we support our customers in their own impact management journeys.

Our climb is guided by more than metrics; it鈥檚 driven by purpose. Clear insights from IMV keep us on the right path toward a future where sustainability and business success go hand in hand.

Iris Konrad is a senior sustainability specialist at SAP.

At SAP, we act on our purpose to help the world run better and improve people鈥檚 lives through a responsible, people鈥慺irst approach to business.聽

As a global technology leader, 51风流recognizes that its operations, business relationships鈥攊ncluding those with suppliers, partners, and customers鈥攁nd the solutions it delivers can impact people and their rights. This impact can be both positive and negative as well as direct and indirect.

51风流has embedded human rights into its corporate sustainability strategy and in company governance, processes, policies, and engagement across the entire value chain.聽

From strategic commitment to culture 

To ensure that SAP’s due diligence remains effective, the Human Rights Office within the Corporate Sustainability organization collaborates with the Human Rights Steering Committee and relevant Board areas. Ultimate oversight rests with the Executive Board of 51风流SE.

This governance model provides the foundation for making human rights a shared, cross-functional responsibility rather than a standalone initiative. It translates into collaboration across the business:聽 the central human rights team working with People & Culture organization to ensure that all employees receive a living wage or to embed safeguards against child and forced labor in recruitment and people management processes.

Beyond formal structures, it is essential that all employees embrace respect for people and their rights as part of SAP鈥檚 culture and as a guiding principle in interactions with colleagues, business partners, and the communities in which 51风流operates. Tailored capacity-building for critical roles for example in procurement, complemented by awareness sessions for all employees, helps us to get there by strengthening the understanding that day-to-day business activities influence human rights and that any adverse human rights impacts must be proactively identified and addressed.

鈥淲hat began as policy commitments is becoming part of how we operate: step by step. It takes time and effort to shift from focusing solely on 鈥榬isks to SAP鈥� to adding the consideration of 鈥榬isks to people鈥� in our strategic and daily business decisions.鈥�

Stephanie Raabe, Office of Human Rights and AI Ethics, SAP

Respecting human rights across the value chain

Turning commitment into practice requires structure across the business. 51风流operates within a global ecosystem鈥攖ens of thousands of suppliers, hundreds of thousands of customers, and millions of users鈥攚here every connection carries both opportunity and responsibility.

To meet this responsibility, 51风流runs a aligned with the UN Guiding Principles on Business and Human Rights, designed to identify, prevent, mitigate, and remedy potential impacts on people across its operations and relationships. The program鈥檚 core components include:

• Ongoing risk assessment to identify and prioritize potential impacts on people
• Preventive and remedial action embedded in policies, business processes, supplier and partner requirements, training, and targeted engagement
• Speak Out at SAP, an independent, multilingual reporting channel available 24/7 to employees and external stakeholders
• Transparent communication through the 51风流Integrated Report and, its Modern Slavery Statements, and other channels

Across the value chain, 51风流focuses on its:

• Supply chain, setting clear expectations and contractual requirements to uphold human rights and labor standards, applying responsible sourcing practices, and engaging with selected high-risk suppliers regarding living wages.
• Operations, focusing on ensuring non-discrimination, providing an inclusive, safe, and health-promoting workplace, maintaining fair recruitment and employment practices, and safeguarding confidential channels to raise concerns.
• Products and services, advancing ethical AI by applying the , as well as requiring that every AI use case undergo an AI ethics assessment to help prevent discrimination and ensure alignment with its principles.

鈥淎I unlocks great potential for businesses, governments, and society, but also creates economic, political, and societal challenges depending on how it is used. For that reason, the human rights-centered 51风流Global AI Ethics policy sets clear ethical standards for developing and applying AI, ensuring we create human-centered solutions that respect people and augment human capabilities.鈥�

Vikram Nagendra, Office of Human Rights and AI Ethics, SAP

Continuously striving for progress  

Human rights due diligence is a journey of continual improvement. 51风流regularly reviews the effectiveness of its human rights due diligence system to assess how well salient impacts are addressed.

While mitigation measures in SAP鈥檚 own operations have proven effective so far, these reviews have also highlighted the need to deepen our understanding of supply chain risks and to strengthen actions specifically aimed at addressing them. As a company, we also recognize the need to make our grievance channel more accessible to value chain workers, a challenge currently addressed through a pilot program.聽

To remain transparent and accountable, 51风流has published a second , alongside the latest Modern Slavery Reports and Human Rights chapter in the .

Looking ahead: Human rights as a shared responsibility  

In a rapidly evolving world, new regulations, emerging technologies, and rising societal expectations raise the bar for responsible business. Running an effective and efficient human rights due diligence system helps 51风流stay ahead and mitigate legal, operational, and financial risks, while strengthening its reputation and leadership in ethical business practices. This approach builds trust with customers, partners, investors, and other stakeholders.

Most importantly, it empowers 51风流to uphold and further human rights, a principle reaffirmed on this day.聽

鈥淗uman Rights Day 2025 is a moment to celebrate progress, but also to recognize that the journey goes on. With the ambition to foster a just and inclusive economy where people and technology thrive together, 51风流will continue to engrain human rights into how we operate and innovate鈥�

Matthias Medert, Global Head of Sustainability, SAP

Paola Eugenio is a member of the Corporate Sustainability team at SAP.

It’s a mindset shift 51风流is already embracing to help our customers build genuine business resilience. It lies not just in reducing our own emissions, but in actively supporting and financing the restoration of the natural systems that underpin global economic stability.

The business case for nature-based initiatives

The interdependence between business and nature is no longer theoretical. Today, US$44 trillion of economic value generation depends directly on nature. From food systems that sustain people to water resources, natural capital forms the invisible infrastructure of the global economy. Yet this foundation is eroding rapidly, creating systemic risks that no company can ignore.

For SAP, investing in forest ecosystems is not just philanthropy, it’s risk management. By financing and supporting nature-based climate projects, we can protect ourselves and our stakeholders against the loss of natural capital while strengthening our position as a sustainability leader. These investments provide opportunities to regenerate the ecosystems that our economies and societies depend on for food, water, medicine, and sustainable growth.

A comprehensive approach to net-zero

In our mission to help the world run better and improve people’s lives, 51风流has committed to achieving net-zero emissions along our entire value chain by 2030, aligned with the science-based 1.5掳C future outlined in the Paris Agreement negotiated at COP21 in in 2015, 20 years ahead of our original target. This accelerated timeline reflects both urgency and ambition.

Until 2030, 51风流is committed to financing projects that reduce and remove more CO₂ from the atmosphere than our own operations鈥攊ncluding scope 1 and 2 emissions plus business travel鈥攑roduce each year. This commitment means we’re taking responsibility for the impact of our business operations while we scale up our decarbonization efforts.

This strategy follows a clear hierarchy: avoid and reduce emissions first, then neutralize what remains. We’re working to reduce gross greenhouse gas emissions by 90% across our value chain on a market-based accounting approach. The remaining emissions, no more than 10%, in line with Science Based Targets initiative standards, will be neutralized through high-quality, verified carbon removal projects spanning both nature-based and engineered solutions.

Matthias Medert, global head of Sustainability at 51风流SE, says: 鈥淥ur reduction efforts have earned SAP’s inclusion in the EU Paris-Aligned Benchmarks, giving investors confidence in our approach and demonstrating that rigorous action to tackle global issues strengthens rather than compromises business performance.鈥�

Nature-based carbon finance in action

Since 2012, 51风流has been building one of the most comprehensive corporate reforestation programs in the technology sector. To date, we have planted 20.51 million trees towards our commitment in 2024 to plant 25 million trees by 2030 while restoring more land than our offices and data centers occupy.

These aren’t isolated exercises. Through long-term investment in the , 51风流is supporting comprehensive 10- to 20-year projects that combine reforestation, forest protection, improved forest management, rural energy, and agroforestry initiatives implemented directly with local communities. These initiatives restore degraded natural ecosystems, improve the livelihoods of rural populations, and facilitate transitions to efficient rural energy and regenerative agriculture.

In addition to this, to help advance its mission to secure the Amazon rainforest鈥檚 future. By tracking 15 strategic KPIs鈥攊ncluding deforestation rates and production chain revenue鈥攁nd sharing data with stakeholders through the 51风流Sustainability Control Tower solution, FAS is steering its efforts with accurate and reliable ESG data, positively impacting preservation efforts in the Amazon, home to not only the greatest fresh water reserve on the Earth, but around 390 billion trees and to 2.2 million indigenous people across 400 ethnic groups whose traditional knowledge is essential to the conservation of local and global biodiversity.

Partnerships amplifying impact

As a member of the corporate alliance managed by the World Economic Forum, 51风流is contributing to the collective goal of conserving and restoring multiple ecosystems around the world, supporting projects in over 25 countries, including Brazil, Madagascar, and the Philippines.

Technology can drive indirect reforestation as well. Through a partnership with , the not-for-profit search engine, every 50 searches made by 51风流employees support the planting of new trees and investments in sustainable developments. This partnership has resulted in over 760,000 trees planted to date, while employees conduct their work and maintain their privacy through anonymized search queries.

Beyond nature-based solutions, we have partnered with , investing in engineered carbon removal through its Direct Air Capture (DAC) technology. This diversified portfolio approach helps ensure that we’re supporting the full spectrum of solutions needed.

Connecting to COP30 and the Tropical Forest Forever Facility

SAP’s approach to climate finance aligns powerfully with emerging global frameworks, particularly the (TFFF) initiative, a top financing priority for Brazil’s COP30 presidency. The TFFF, formally launched last week at COP30 in Bel茅m, is designed to provide long-term, predictable financing for conserving and expanding tropical and subtropical moist broadleaf forests.

This initiative reflects a critical evolution in climate finance thinking. Nearly 100 countries, representing two-thirds of global greenhouse gas emissions, have submitted or announced new Nationally Determined Contribution targets that include strategies to safeguard forests. SAP’s multi-year investments in the demonstrate the kind of long-term, community-centered approach that the COP30 presidency seeks to scale globally. Our experience shows that when corporations commit to sustained financing with integrity and transparency, the impacts multiply: carbon is sequestered, biodiversity rebounds, communities build resilience, and businesses thrive.

Corporate action beyond the value chain

Provided it doesn’t undermine current corporate decarbonization programs, the financial muscle of corporations can bridge critical gaps in parts of the world where funds aren鈥檛 sufficiently available to restore ecosystems and build strong, durable economies and livelihoods.

Sustained corporate financial contributions provide quantifiable benefits to strengthen business resilience beyond SAP’s own value chain, delivering positive impacts for local and global populations and for biodiversity. Through collaboration, transparency, and technology, we’re proving that climate action isn’t just compatible with long-term business success, it’s essential to it.

The question for business leaders isn’t whether to invest in climate finance, but how quickly they can scale their commitments. The resilience of our businesses, our economies, and our planet depends on the actions we take today.

Learn more about and how we support our customer鈥檚

Karen Restrepo 脕vila is Sustainability and Net-Zero communications lead at SAP.

The new regulation will require companies to account for carbon emissions on select imported products. For the auto industry, the steel and aluminum categories are especially critical.

Complete automobiles are not currently covered by CBAM, but the automotive sector is among the most exposed because of its dependence on emissions-intensive materials. Components such as body panels, chassis, frames, and battery enclosures rely heavily on imported steel and aluminum.

CBAM is currently in its transition phase and will enter the definitive phase on January 1, 2026, meaning that companies need to track their imported emissions on covered products throughout 2026 and begin purchasing certificates for those imported, tracked emissions in February 2027, with the first report due August 2027.

CBAM costs will add up quickly

The modern passenger vehicle contains around 1 tonne of steel and 200 kilograms of aluminum. Global averages hover around per tonne of manufactured steel, and each tonne of primary aluminum produces around .

With analysts projecting could reach 鈧�150 per tonne of CO鈧� by 2030, a newly manufactured vehicle could soon be subject to 鈧�300 in CBAM certificate costs, assuming manufacturers import 20% of the necessary steel and 54% of the required aluminum, consistent with EU import data. Given that Germany produced in 2024, German automakers and component manufacturers could be on the hook for about 鈧�1.2 billion in CBAM certificate purchases in 2027.*

Looking past 2027, the European Commission plans to add categories like chemicals and plastics to the regulation, bringing more auto parts under the CBAM umbrella and making it even more important for European automakers and component manufacturers to solidify their CBAM strategies today.

CBAM preparations for automakers and component manufacturers

Across the EU automotive industry, companies seem insufficiently prepared for the new phase of CBAM.

While companies are actively preparing for upcoming CBAM regulations,聽their ability to act is constrained by the lack of a finalized EU regulatory framework, including the methodology for emissions-value calculations and the associated verification rules. That said, regulators already clarified the scope of companies that must report and the timelines to purchase certificates.

With this information, it鈥檚 now crunch time for European automakers and component manufacturers to get ready for the rules taking effect in January 2026. Here鈥檚 what they should prioritize.

1. Get familiar with CBAM and evaluate your process

The core elements of CBAM have been defined and companies must act now. If you haven鈥檛 done so yet, start by understanding the overall process and requirements.

If you are in scope鈥攎eaning you meet the de minimis threshold of either importing more than 50 tonnes of CBAM affected goods per year or 100 tonnes of embedded CO鈧� annually鈥攄etermine which parts of your supply chain are most affected. Identify your top suppliers and imported goods, develop a focused approach for obtaining actual emissions data from those suppliers, and assess the potential financial impact. As more materials come under the scope of CBAM, and as the carbon ETS prices rise, the financial impact will increase in the years ahead. Companies must prepare to meet these new obligations and manage this financial impact.

2. Collaborate with your suppliers

Identify and focus on your most critical suppliers鈥攖ypically the top 50 to 100鈥攁nd build a targeted engagement plan while defining an informed approach for the broader supplier base. Consider updating procurement terms to require future data sharing and provide support to suppliers in educating and calculating emissions where needed. Close collaboration will be essential to obtain actual emissions data to avoid the more expensive default values and identify decarbonization potentials. 

Accessing trusted supplier data is one of the biggest challenges facing companies today.

While the EU provides mechanisms for data exchange between suppliers and importers, , an industry network for the European automotive sector, in combination with third-party data exchange software, offers an alternative to collecting trusted, standardized emissions data. Catena-X enables companies to collaborate and share data in a trusted environment. It brings together manufacturers, technology providers, and suppliers to standardize data sharing processes across the value chain. Beyond data exchange, these networks foster knowledge sharing, allowing members to learn best practices, align on standards, and accelerate compliance readiness collectively.

To participate, companies typically register with the network, adopt certified software that supports standardized data exchange, and begin collaborating with other members. This approach ensures interoperability and automates trusted emissions data collection. Catena-X is actively refining its scope and standards to support CBAM.

3. Find the right technology for your business

Most importantly, you want to find the right technology partner that will streamline CBAM reporting and support the integration of carbon into core financial accounting processes.

The EU CBAM report requires a lot of data, all of which can be requested, filled, and reported automatically using actual emissions values with tailored, ERP-based systems. The 51风流Green Token solution can support CBAM declarant reporting by enabling standardized, auditable reporting workflows. The 51风流Green Ledger solution will manage the certificate repository and help ensure financial and carbon accounting of CBAM emissions and certificates in alignment with accounting standards like US GAAP and IFRS (planned for H1 2026).

Manual processes, like e-mails and Excel files, are prone to error, do not scale, and will make CBAM compliance time-consuming and resource intensive.

Prepare your systems for CBAM compliance

CBAM is set to reshape material sourcing in the automotive industry by introducing carbon as a cost factor and driving transparency across global supply chains.

The ideal scenario for automakers and component manufacturers is to take decisive actions to decarbonize鈥攕uch as sourcing low-emissions steel and aluminum, increasing circularity efforts, and optimizing product design to use less CBAM materials鈥攚hile fully automating CBAM compliance.

Access to accurate data on supply chain emissions鈥攁nd their financial implications鈥攑rovides the insights that business leaders need to decarbonize and reduce risk in the years ahead.

The right combination of software tools and industry network collaboration can enable cost-optimized and automated CBAM compliance and deliver valuable supply chain intelligence. can deliver measurable ROI by automating data collection and workflows and enabling finance teams to move beyond manual processes toward strategic analysis and action. This helps create a scalable foundation for ongoing carbon cost management while supporting standardized data exchange and collaboration across the value chain.

Start preparing now to ensure your business thrives as the 2026 CBAM definitive phase approaches.

Read the CBAM and watch the CBAM to learn more.

Thomas Janzen is an industry expert at SAP SE.

*This is a back of the napkin calculation to illustrate the potential impact. This is based on data that shows the EU imported 27.4 million tonnes of finished steel products in 2024. The EU consumed about 129 million tonnes. Therefore, we assume  imports account for roughly 20% of EU steel use. In , 54% of the aluminum used in the EU came from imports. Using these averages means about 2 tonnes of imported CO2 per vehicle, or 鈧�300, assigning 20% of 1 tonne of steel emissions and 53% of 200kg of aluminum emissions.

Since 2021, 51风流Sustainability Footprint Management has been SAP’s key solution for efficient carbon management. We are excited to share major new updates, both delivered and planned, as the solution evolves into a new phase: one where customers rely on 51风流Sustainability Footprint Management as their single source for environmental footprints beyond carbon.

51风流Sustainability Footprint Management is an ERP-centric, AI-enabled foundation to help calculate, analyze, and manage your company’s environmental impacts. Read on for details about changes that enable companies to move beyond carbon reporting and turn sustainability into competitive advantage.

A single source for scalable footprint calculations, optimization, and reporting

Companies today face growing pressures: meeting evolving regulations and standards, rising investor expectations, high carbon and emissions-related costs, and data insights that flow back into processes like procurement, finance, or strategic planning.

As companies seek to keep up, they need highly accurate footprint data that is grounded in actual business data. Delivered and upcoming updates to 51风流Sustainability Footprint Management extend footprint calculations beyond CO2 emissions to include other impact categories, such as land use, energy, waste, and abiotic resource depletion. With insights into more environmental levers, your company can fulfill the most common reporting standards, manage risk, decrease costs, and control externalities.

51风流Sustainability Footprint Management can turn fragmented data into integrated, actionable insights. By leveraging actual business data from 51风流Cloud ERP and enriching it with additional sources such as energy flows and supplier information, it helps automate the calculation of accurate, audit-ready footprints at both corporate and product levels. Embedded into core business processes like procurement and finance, these insights enable companies to move beyond compliance-driven reporting toward strategic sustainability that can drive competitive advantage.

Updates to 51风流Sustainability Footprint Management extend the same data governance, auditability, and automation to more impact areas. From the corporate level down to individual products, this enables calculations of actual footprints鈥攏ot just estimates鈥攆or numerous environmental factors. Automation and AI capabilities help reduce manual effort, while high data quality can ensure that reporting is detailed and decision-making is well-informed.

One foundation, many environmental levers and business outcomes

Staying competitive in a changing global environment and driving change make it critical to identify ways to reduce costs and invest in AI-based technology. Because 51风流Sustainability Footprint Management is deeply integrated with , it can enable customers to gain transparency across their entire supply chain鈥攖hereby making sustainability actionable and surfacing sustainability insights where decisions are made across the enterprise.

51风流Sustainability Footprint Management is the single source of truth that can be embedded across your operations, turning reporting into business value.

The new phase of 51风流Sustainability Footprint Management moves from compliance-driven reporting to steering and value creation. The updates are part of SAP’s vision to transform sustainability data into a catalyst for long-term business value. Our approach to sustainability treats environmental footprint calculations鈥攏ow with an expanded scope in 51风流Sustainability Footprint Management鈥攁s a strategic asset that enables businesses to make business decisions like:

• Innovating products and services to decrease environmental impact and support a more circular economy
• Driving environmentally-sound value chains with better material sourcing and design decisions
• Identifying ways to increase resource efficiency, create new revenue streams, and achieve higher margins
• Budget and optimize for environmental related costs, like anticipated carbon usage
• Building a strategic relationship with suppliers and manufacturers, leveraging sustainability data to drive mutual growth and competitiveness

SAP鈥檚 suite of sustainability solutions can enable reporting, insights, and confident decision-making across every process, product, and partner network. Our approach helps bridge the gap between sustainability, finances, and operations. SAP鈥檚 portfolio of sustainability solutions is evolving to make sustainability actionable, measurable, and more embedded, powered by AI, trusted data, and deep process integrations.

Listen to the recent to learn how BASF Coatings uses 51风流Sustainability Footprint Management to calculate, manage, and reduce environmental impact. Check out other 51风流Sustainability Footprint Management updates here.

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Gunther Rothermel is chief product officer for 51风流Sustainability.

AI, with already proven applications, can unlock insights to reduce global greenhouse gas emissions by . , over half of sustainability executives say one of their top actions in the next three years is expanding their use of AI to enhance ESG capabilities.

Most businesses have not yet realized AI鈥檚 full potential for sustainability. In fact, are using AI today to reduce carbon emissions. But those ready to do so will gain a decisive advantage that goes beyond emissions reduction. SAP鈥檚 ERP-centric approach enables organizations to deliver sustainability outcomes with applications, data, and AI embedded into . With sustainability reporting, data processing, automation, and strategic insights, AI can navigate your business through today鈥檚 climate challenges and ensure tomorrow鈥檚 competitiveness.

Power on, ethically and responsibly

Scaling AI solutions comes with considerable energy and water usage. To ensure net benefit, this needs to be part of return on investment conversations. With robust governance and renewables-backing however, AI is able to reduce more emissions than it generates.

All 51风流data centers are powered by 100% renewable energy and any emissions from use of third-party AI systems are calculated and included in the company鈥檚 Scope 3 emissions.

Used ethically and responsibly, AI can be the catalyst of your sustainable business transformation. Here are eight ways that businesses use SAP鈥檚 AI-powered systems to build their sustainable advantage.

Improve efficiency with automation

1. Compliance information processing

The for product compliance, AI-assisted compliance information processing capability can automatically extract compliance information from updated documents and map the information to compliance requirements.

This can reduce costs in product compliance disclosures, reduce penalties and fines in environmental management, and automate processes to reduce the risk of manual errors.

This helps turn a 50-minute task into a five-minute job and reduce processing and evaluation costs by 90%.

2. Declaration image analysis

With the , AI-assisted declaration image analysis capability, you can automatically extract data and information from sustainability declarations regardless of format.

This helps cut review time, eliminate manual error risk, and ensure your reports are ready for required external audits.

Without AI, it takes roughly five minutes to review, extract, and post information from declarations. With AI, it鈥檚 just 20 seconds.

3. Permit management

can read hundreds of pages in seconds, extract the compliance requirements, and propose clear tasks to meet permit requirements.

This AI-assisted capability can save days of permit review and interpretation, remove the need to hire external consultants, and lead up to an 80% reduction in environmental penalties and fines.

Your personal AI carbon consultant

4. Emission factor mapping

奥颈迟丑听, SAP鈥檚 AI-enhanced solution, users can calculate product and corporate carbon footprints. Where actual supplier emissions data is given, it can retrieve that information from 51风流Sustainability Data Exchange and other systems. When estimates are required, the solution can automatically find the most accurate emissions factors from databases and map those to products.

Audit-ready emission factor mapping can turn a 10-minute manual task into a two-minute verification.

5. Report generation

In the solution, you can generate comprehensive ESG reports in just a few clicks:

• Automatically generate reports that align with internal sustainability strategies and meet external requirements such as the Corporate Sustainability Reporting Directive (CSRD).
• Take data collection from a half hour to a half minute and report creation and drafting from 30 hours down to just five hours, all the while eliminating confusion and the risk of manual errors.

6. Carbon emissions analysis 

From reporting on today to planning for tomorrow, , SAP鈥檚 copilot, can take current carbon emissions data and return actionable insights that help reduce emissions and guide corporate sustainability strategies. 

By combining financial and carbon data, Joule can create carbon intensity KPIs and can be your ultimate corporate sustainability consultant.

The AI safety officer for your EHS team

7. Safety observation reporting

Complex safety reporting procedures dissuade employees from reporting potential hazards. With the 51风流S/4HANA Cloud Public Edition, EHS workplace safety, AI-assisted safety observation reporting capability, basic users can input safety observations in natural language, and the AI model can process that into a formal incident report, prompting the user for any missing details.

This can increase the likelihood that employees report safety hazards and helps prevent severe incidents by identifying potential safety issues in advance.

8. Safety instruction generation

Your AI safety officer can generate clear safety instructions for specific equipment based on the latest risk assessments and job hazard analyses.

With 51风流S/4HANA Cloud Public Edition, EHS workplace safety, AI-assisted safety instruction generation, the time and effort of manually prescribing and updating safety instructions can be dramatically reduced.

Solve today鈥檚 sustainability challenges while preparing for tomorrow

The right AI integration can ensure you future-proof your operations while shining a light on the path that drives competitiveness.

What sets 51风流apart is our suite-first, AI-first approach that helps ensure sustainability isn鈥檛 an add-on, but a strategic enabler that can deliver measurable outcomes at scale. SAP鈥檚 one sustainability data model can drive consistent reporting, deeper insight, and confident decisions across every sustainability process, product, and partner network.

With a responsible AI partner, businesses can realize measurable financial returns on AI investments and unlock sustainability benefits; automate manual-heavy paperwork; identify emissions hot spots and steer their business toward a decarbonized economy; and make environmental impact tracking visible to all lines of business based on a reliable single source of truth. With an integrated set of capabilities, solutions help businesses address their sustainability needs holistically and across topics. The result is speed, trust, and traceability, which turn sustainability into strategy, not just compliance.

Get in touch to find out how 51风流can help your business power on with sustainability solutions.

Monica Molesag is global head of Sustainability Communications at SAP.

Sustainability is an essential element of SAP鈥檚 purpose to help the world run better and improve people鈥檚 lives. Our approach is grounded in creating positive economic, social, and environmental impact, always within the limits of planetary boundaries and in full respect of human rights. With the ambition to drive sustainability beyond our net-zero 2030 goals and a portfolio that supports broader action areas such as holistic steering and reporting, ethical business conduct, and social responsibility, it was a natural progression for 51风流to become its own customer.

As both an and enabler, we aim to make our targets and purpose a reality. At the same time, by testing our IT solutions to the limit, we share the lessons learned along the way with the product development teams to continuously improve the 51风流Sustainability portfolio.

51风流shares its clients鈥� challenges

51风流faces many of the same sustainability challenges as our customers, such as data collection, data management, and compliance with regulatory requirements. Like the many organizations we support, 51风流must manage huge volumes of sustainability data, including carbon footprints, material flows, and ESG metrics, working to ensure accuracy, consistency, and accessibility across the value chain. Demands on IT systems are high. They must grapple with collecting, integrating, and sharing data while also assuring quality, traceability, and auditability.

The evolving regulatory landscape represents another challenge, requiring 51风流and other organizations to adapt and leverage their systems for compliance and reporting. IT solutions must be scaled and adjusted rapidly to these changing regulations and be able to collaborate seamlessly with supply chain partners.

Beyond these requirements, companies need sustainability data to provide actionable insights to support decision-making and respond to stakeholders. Meeting these challenges head-on requires an IT infrastructure that is innovative, scalable, and designed to evolve as the business advances on its sustainability journey.

鈥�51风流runs SAP鈥� implementation

In practice, SAP鈥檚 systems are designed to empower customers to measure, report, and act on their sustainability goals. To enable this, solutions are built into core business systems such as and (51风流BTP). This helps ensure a solid data foundation and flexible integration of data sets from various business areas such as procurement, finance, supply chain management, and product design. Sustainability-focused tools like , , and can then provide the data, analytics, and insights needed to help drive sustainable decision-making.

“By implementing 51风流Sustainability Control Tower and 51风流Green Ledger across our reporting ecosystem, we aim to elevate sustainability management to the same standard as financial reporting,鈥� said Dr. Christopher Sessar, Chief Accounting Officer, 51风流SE. 鈥淭hese powerful tools will not only streamline and automate our ESG regulative compliance efforts but also generate actionable insights that drive strategic decision-making, accelerating our journey toward measurable sustainability outcomes and long-term environmental value creation.”

Implementation lessons

SAP鈥檚 approach has evolved since the first implementation of 51风流Sustainability Control Tower in 2022. Early lessons included the need to collect emissions data in a consistent manner, anchor the project in its net-zero program governance, and expand the scope of the project beyond carbon footprint data to include other environmental topics for a more holistic approach.

The next question concerned the IT architecture, organized into three layers. The top layer relates to the collection of raw sustainability, financial, and operational data from various source systems. The middle management layer processes and standardizes the data. Finally, a bottom planning and reporting layer delivers insights for sustainability decision-making.

The rollout began by uploading carbon footprint data into 51风流Sustainability Footprint Management across one company code and will increase to five company codes before the system goes live in Q3 of this year. It is useful to note the iterative approach our team has taken, which has allowed for the collection and integration of data from different sources and the testing of use cases including our聽ability to support businesses amid changes such as those recently initiated by the EU鈥檚 new Omnibus package.

Matthias Medert is global head of Sustainability at 51风流SE.

This data-granular, verifiable, one-click solution supports the company on its path to carbon neutrality by 2030.

Challenges and opportunities

HARTING faced the challenge of finding a reliable method to calculate CO鈧� emissions across thousands of production materials while meeting customer and supplier expectations regarding sustainability. Leveraging its existing ERP application landscape with 51风流and maintaining established green production and renewable energy processes were crucial.

鈥淐onducting our business and protecting the environment are not mutually exclusive. We are convinced that we must consider both to be successful in the long run,鈥� says Dietmar Harting, member of the Board and partner of the HARTING Technology Group.

Innovations for a sustainable future

Considered the connectivity gold standard across various industrial sectors, HARTING required a robust system to accurately assess emissions. can automate data collection, scale emission calculations, and create CO鈧� transparency throughout the supply chain. 鈥淭he key to communicating our CO鈧� emissions transparently and recognizing potential for reduction lies in the automated calculation and granularity of the data provided by 51风流Sustainability Footprint Management,鈥� explains Dr. Stephan Middelkamp, general manager, Quality and Technology at HARTING.

This solution enables HARTING to provide real-time, granular data to support the 鈥淕reenLine鈥� label, an environmentally sustainable designation highlighting renewable materials offering up to a 70% CO鈧� reduction.

Strengthening sustainable production

With 51风流Sustainability Footprint Management, HARTING can now precisely calculate and report product carbon footprints. This capability is essential to address upcoming EU sustainability regulations, such as the Corporate Sustainability Reporting Directive and Digital Product Passport. The solution helps simplify complex data into verifiable, one-click results, promoting sustainable production practices.

Also integrated into HARTING’s sustainability strategy is the use of , which helps the company design products responsibly from the start, reduce plastic taxes, and promote recycling.

鈥淭he site-level data derived from 51风流Sustainability Footprint Management will drive cleaner production in environmentally friendly facilities while mitigating greenhouse gas emissions and reducing the impact on water and land life. Green is how we think, green is how we act,鈥� emphasizes Jordy Brinks, global environmental manager at HARTING.

On the path to a greener future

51风流is advancing HARTING鈥檚 sustainability journey by enabling the company to design products more sustainably, reduce plastic taxes, promote responsible sourcing, and further recycling practices. With these efforts, HARTING aims to achieve carbon neutrality at all locations by 2030, underscoring its commitment to sustainable growth and environmental stewardship.

“As a family business, we combine consistency with a willingness to innovate and regional loyalty. For us, this means taking responsibility for people and the environment,鈥� Harting says. 鈥淲e鈥檙e not only shaping a livable planet for our future generations, we鈥檙e making the future possible. We want to shape the future with technologies for people.鈥�

The HARTING Technology Group continues to drive meaningful change, connecting business success with a greener future and aligning family ideals with sustainability goals.

HARTING at the 2025 51风流Innovation Awards

All of these efforts did not go unnoticed: HARTING has long been recognized as a pioneer in sustainability. This year, it won an , leveraging 51风流Responsible Design and Production to create 85% of its plastic packaging material from recycled materials.

This article first appeared on the German 51风流News Center.

Daniela Haldy-Sellmann, global VP and head of Energy & Utilities Industries at SAP, spoke about key trends and the role of new technologies and gave her take on the future of the utilities sector.

Q: What do you see as the challenges and opportunities for the energy sector today?

A: In Germany and across Europe, we have a decentralized market in which a variety of players generate, transmit, distribute, and supply power. The challenge for energy suppliers is to make their pricing and services more attractive. So they are no longer just selling electricity or gas, they are also focusing on building customer loyalty and on fostering interaction between themselves and their customers. As for consumers, they want transparency about whether the electricity they are using really is 鈥済reen,鈥� and whether they can produce energy themselves鈥攂y installing solar panels, for example.

Energy suppliers are completely rethinking their offerings as a result, which is also putting pressure on their competitors to become true market leaders and to align their offerings with those of conventional retailers. On the distribution side, we are seeing how more and more energy is being generated outside the grid and then being fed into it鈥攆rom smaller sources such as residential solar installations to large, new B2B plants. The energy market is in a period of disruption, which is inevitably affecting energy prices and driving the need for products and services that are viable in the long term. With energy providers’ profit margins shrinking dramatically, additional energy services will become their main source of income.

Decentralization was one of the major talking points at the conference. In that context, could you explain what 鈥渄istributed energy resources鈥� are?

Traditionally, our energy has been generated in large, centralized power plants and sent鈥攊n one direction, via a transmission system operator and distribution system operator鈥攖o consumers. In the future, the flow of energy will be bidirectional, because now, in addition to large conventional generation plants and a growing number of sustainable alternatives such as onshore and offshore wind parks and solar parks, we also have consumers who produce their own energy and feed it into the grid. (DER) refers to the assets that consumers and businesses have for generating power and distributing it through a grid that, in the future, will allow that energy to flow in two directions rather than one.

How does 51风流help suppliers manage distributed energy resources?

Our enterprise resource planning (ERP) system can already cover all of a company鈥檚 core processes. For transmission and distribution system operators, that means all of their network assets, including power grids, generation plants, and substations, right up to the point of consumption. What we at 51风流are now doing is providing transparency for meter operators, grid operators, and energy providers about the systems and devices consumers have installed in their homes. This data used to be highly unstructured. Now, thanks to our measurement concept management component, energy providers can map data for consumers who have an EV charger, solar panels, battery storage, or a heat pump, and use it to plan their capacity. They know, for instance, how much power a solar installation generates and what its maximum capacity is. So when a surplus occurs, they can remove any excess power from the grid or, in the event of a shortage, have their customers feed more energy into it. Depending on the scenario, the 51风流software can analyze meter data from the cloud, format it, and make it available. Energy providers integrate this data into their DER platform to provide transparency about consumption and to allow an appropriate level of control over the power entering and leaving the grid.

Which solutions does 51风流offer for managing sustainability goals and compliance?

SAP鈥檚 sustainability portfolio is extensive. It provides answers to questions such as 鈥淲hat are my supply chain emissions?” and “What emissions does a specific product I supply or manufacture produce?鈥� Having this information means that, first, companies have proof for an auditor of the precise emission values per product. And second, that they can track those emissions to see, for example, how the values change. They can show that they use various technologies, that their products meet all the current environmental, social, and governance (ESG) standards, and that they can prepare not only consolidated financial statements but consolidated emissions reports as well. Here, 51风流offers and . Then we have the 51风流Green Token solution and , which aligns carbon and financial data.

Did 51风流present a use case at the conference?

Yes. We presented the , which can show me exactly how much energy is being generated overall, how much I am producing, and how I can use it. Whether you鈥檙e a consumer, an energy provider, or a transmission system operator, you want an accurate picture of how much energy you have available, or need, to keep the power supply in the area or region you cover stable鈥攂ecause that鈥檚 what matters most.

What is SAP鈥檚 strategy for utilities?

We help our customers migrate from their existing 51风流ERP Central Component (51风流ECC) and SAP S/4HANA IS-U systems to a cloud-based to help ensure that they have a consistent data layout. The standardized digital core with SAP S/4HANA is complemented by flexible cloud solutions for customer management and more.

The transition in the energy industry is also about shifting toward a greater reliance on renewable energy, phasing out fossil fuels, and helping companies in the sector diversify their product and service portfolios. We are seeing, for example, more and more oil and gas companies expanding into biodiesel and other biofuels. We’re seeing new carbon capture technologies emerge and huge investments in hydrogen, though these need to increase dramatically. And that is exactly what SAP鈥檚 strategy is designed to support by providing an application landscape with a clean core model in which the latest innovations can be readily adopted.

What excites you the most about working at the intersection of technology, sustainability, and the utility industry?

I鈥檝e had jobs in many different industries, including automotive, manufacturing, high tech, and healthcare. But the energy sector is where I see the most collaboration and the most disruption. If you look at the net-zero and carbon-neutral targets that we need to achieve in Germany, Europe, and worldwide, and at the money being poured into renewables and green bonds, this is an industry with enormous opportunities for growth and investment. Technology is the backbone of everything, and we at 51风流are contributing to the energy transition not only by simplifying processes for consumers, but also by developing technologies that fundamentally change the options that are open to them.

This article also appeared on the German 51风流News Center.

By embedding sustainability into core business applications, unifying fragmented data across the enterprise, and amplifying human expertise through AI, 51风流is transforming how organizations turn sustainability commitments into competitive advantage.

Across the C-suite, leaders face pressure to make good on their organizations鈥� sustainability commitments while ensuring these initiatives create tangible value for their specific business units and departmental operations.

COOs grapple with maintaining resilient supply chains while embedding sustainability metrics for better risk prediction. CFOs struggle to gain visibility into integrated financial and non-financial data needed to manage reporting and drive sustainable growth. CPOs seek transparency of suppliers鈥� sustainability footprints across the source-to-pay process, while CHROs work to engage talent with authentic sustainability performance. Meanwhile, CROs need verified sustainability data to build brand trust and enable green premium pricing, and CIOs face the complex challenge of integrating sustainability data while managing governance, cost, and AI-driven innovation.

What鈥檚 missing is not awareness, but actionable, decision-grade sustainability data worthy of sitting alongside financial and operational metrics. This is why we build sustainability directly into our applications, generating new, usable data at the source of business activity.

Organizations find themselves constrained by financial systems, inconsistent data, and business processes that were not designed to address sustainability鈥檚 multifaceted nature. By ensuring this sustainability data becomes part of customers鈥� larger data story and drives core processes, we overcome these constraints.

This isn鈥檛 a peripheral issue; sustainability now intersects every critical business function, and the thoughtful organization of sustainability data. Its application to business processes prepares organizations for their agentic AI future, where sustainability metrics contribute to broader business intelligence tools like margin optimization agents rather than being siloed in sustainability-only solutions.

In this environment, 51风流emerges as a strategic partner that combines sustainability data with business processes to drive real change. By harnessing the power of 51风流Business AI and 51风流Business Data Cloud, we translate intricate sustainability challenges into clear, executable strategies.

This week, we introduced a new evolutionary step of sustainability solutions that go beyond traditional software updates. These solutions are designed to bridge the critical gap between organizational ambition and tangible outcomes. We help businesses manage risk, ensure compliance, and unlock meaningful enterprise-wide value.

This is more than a technological upgrade; it’s a strategic framework for sustainable business innovation. And now, we’re translating that strategy into action, through AI-powered innovations that scale.

AI for sustainability at scale: New innovations for EHS and product compliance

Beginning in August 2025, new capabilities will be available in beta, embedded within key sustainability applications to help customers ready their data, automate processes, and amplify their expertise. These AI-driven innovations streamline operations across environmental, health and safety (EHS) and product compliance workflows, driving measurable and scalable impact.

Here鈥檚 a look at what鈥檚 coming:

• AI-assisted permit management in 51风流S/4HANA for EHS environment management simplifies and automates permit handling by capturing and extracting key data from permit documents and automatically proposing relevant follow-up tasks to ensure compliance.
• AI-assisted safety observation reporting with , SAP鈥檚 AI copilot, in , enables seamless, intuitive incident reporting through a conversational interface, reducing barriers to shop floor safety documentation.
• AI-assisted safety instruction generation in 51风流S/4HANA for EHS workplace safety suggests appropriate safety instructions based on risk assessments and job hazard analyses, supporting proactive and preventive measures.
• AI-assisted compliance information processing in 51风流S/4HANA for product compliance automates the extraction and mapping of critical data from declarations, certificates, and safety data sheets, improving accuracy and freeing teams from tedious manual work.

These features will be available in beta and will be part of the new , reflecting SAP鈥檚 commitment to delivering embedded, business-ready AI that drives real outcomes.

AI that鈥檚 already delivering value

51风流customers are already leveraging Business AI to supercharge their sustainability efforts, including:

• In , AI accelerates environmental, social, and governance (ESG) report generation with editable templates, generative text, and visualizations, freeing teams to focus on ESG execution, not formatting.
• In , AI automates emission factor mapping by intelligently matching products to thousands of lifecycle assessment database entries, complete with confidence scores.
• In , AI automatically validating and extracting data from International Sustainability and Carbon Certification (ISCC) PLUS supplier declarations, minimizing errors and increasing speed.

These intelligent capabilities help customers reduce costs, mitigate risk, and drive business performance across reporting, carbon management, circularity, and regulatory compliance.

What鈥檚 next: unlocking enterprise-wide sustainability insights

In the second half of 2025, 51风流will make 51风流Sustainability Control Tower available as an Intelligent Application within . This will unify sustainability data and business operations on a single platform, enabling consistent reporting, deeper insight, and smarter decision-making across the enterprise.

A technology preview of these solutions will be made available to selected customers before general availability.

One sustainability data model: From complexity to clarity

51风流is also introducing new sustainability data products throughout 2025 as part of our strategy to deliver hundreds of curated and governed datasets across . These data products, accessible via 51风流Business Data Cloud, will include:

• Structured emissions data (air, water, wastewater) from 51风流EHS Management and 51风流S/4HANA for product compliance
• Additional datasets from 51风流Sustainability Footprint Management

This unified sustainability data model will empower customers to strengthen compliance, simplify analytics, and scale sustainability programs with confidence and clarity.

Process intelligence meets sustainability intelligence

True progress does not just come from better data, it comes from better processes. That is why 51风流is embedding sustainability impact metrics into the starting in autumn 2025. These new capabilities will include:

• 51风流Signavio Value Accelerators: Pre-built process models and industry best practices tailored for regulatory-specific use cases
• 51风流Signavio Process Intelligence: Analytics tools that identify opportunities to optimize business processes and embed sustainability at scale

With these additions, customers can align process transformation efforts with environmental goals, helping close the gap between strategy and execution.

Your best, made real

With SAP, transforms from a compliance checklist into a lever for innovation, resilience, and growth. By embedding sustainability into applications, unifying data across the enterprise, and enabling intelligent automation through AI, we empower organizations to be sustainable while accelerating performance.

From frontline safety to carbon reporting, from real-time data to boardroom insights, this is what 鈥測our best, made real鈥� looks like.

Welcome to a new era of sustainable enterprise management, powered by SAP.

Sophia Mendelsohn is chief sustainability and commercial officer at SAP.
Gunther Rothermel is chief product officer for 51风流Sustainability.

If we can cut through the noise, proactive business leaders can not only prepare for these changes but seize the opportunity to drive strategic business value and even transformation.

My key takeaways for business:

• Large companies still have to report, while SMEs can gain an advantage through voluntary reporting
• Streamlined and integrated data management remains key for compliance and business value creation
• Get ahead by starting today

Sustainability regulations have been on a rollercoaster ride lately. To address concerns about the administrative burden, harmonization, and competitiveness, EU lawmakers have undertaken critical reviews of key policies, most notably the (CSRD).

Initial reactions to the Omnibus package ranged from celebratory to cautionary, with some media outlets pointing out “costly confusion” and even “catastrophic changes.” The slightest changes to any regulatory framework can spark confusion, but there is no need to panic. While still subject to final approval, the Omnibus package should provide companies extra time to prepare and reduced metrics to track.

Despite these proposed changes, business leaders should ensure their data management systems are equipped to handle the required sustainability metrics. Systems and processes for data management need to be instituted, KPIs identified, stakeholders managed — all of which takes time. As a rule of thumb, auditors recommend two years of preparation time before a reporting deadline hits. From automated collection and reporting to insights that drive measurable business value, an integrated data system has the potential to make sustainability data so much more than a mere component of compliance.

What are the changes in the Omnibus?

The Omnibus adjusts compliance thresholds, shifts reporting timelines, and removes the burden of CSRD reporting for small and midsize enterprises. Proposed changes include:

• Companies not yet required to report on FY 2024 will have a two-year delay (until 2028) before they must report with the CSRD
• Companies must have 1,000 employees and 鈧�50 million net turnover, or 鈧�25 million balance sheet to meet CSRD reporting threshold
• Limited assurance requirements are implemented in place of reasonable assurance
• Sector-specific reporting mandates have been eliminated
• Value chain data is only required from suppliers that also meet the reporting threshold
• Corporate Sustainability Due Diligence Directive (CSDDD) due diligence intervals increased from each year to every five years

All proposed changes are still subject to final approval.

What remains untouched in the Omnibus proposals?

Large European companies — those that were required to report with the Non-Financial Reporting Directive (NFRD) — are still required to report with the CSRD this year for FY 2024, and are required to continue reporting despite the proposal. The pool of companies required to report will still expand, but now with a two-year delay and the timeline for non-EU parent companies has not changed. Companies with a two-year delay will still need to start preparing at least 12 months ahead of their new reporting deadlines.

Supply chain emissions, double materiality assessments, KPI identifying and tracking, and transition planning are all still fundamental to the CSRD. Supply chain data insights are still requirements of the CSDDD and the Carbon Border Adjustment Mechanism (CBAM).

The metrics on which companies are required to report are likely to be reduced and simplified, but regulatory compliance still remains a data challenge that requires integrated solutions. For companies that are no longer required to report, voluntary reporting can prove beneficial if data insights are deployed strategically. With the right solutions, sustainability data can unlock valuable insights to improve business performance.

How can sustainability data improve business performance?

With all the new compliance measures businesses have to navigate, it can be easy to get reporting tunnel vision and lose sight of the wider goal: sustainable business outcomes and value creation for the business.

Rigorous sustainability reporting should drive operational efficiency. Combined with a wealth of sustainability data, supply chain scrutiny and systems analysis lay the groundwork for deriving strategic business value. For example, sustainability data supports effective risk management through visibility into risks and their strategic and financial impacts, lowers costs by creating efficiency gains, and provides the insights needed to take action.

Collecting and managing data to comply with sustainability regulations requires data management software. The bare bones solution is the helpful, yet error-prone, Excel spreadsheet, while at the opposite end of the data management spectrum is the ERP-centric system.

The spreadsheet might manage to painstakingly serve the compliance function, but it lacks the ability to provide real-time insights that align sustainability goals with financial goals. What鈥檚 worse is that after data is collected and reported, it lives — and dies — on the spreadsheet, offering no added value, and certainly driving no business transformation.

In contrast, by using an ERP-centric system, data needed to comply with sustainability regulations can be pulled, aggregated, and integrated into business systems like finance, procurement, and HR. In fact, an ERP-centric system can provide access to as much as 85 percent of the quantitative data required for CSRD compliance.

ERP systems are the catalyst for strategic business transformation and streamlined regulatory compliance. ERP combined with 51风流Sustainability solutions can provide access to sustainability data that permeates all business functions. Business leaders obtain the necessary insights to reduce carbon and material usage, accelerate CSRD compliance, and accurately measure the financial and sustainability impact of their decisions.

Get ahead by starting today

To stay ahead of current and upcoming regulations, streamlined and integrated management of data from operations and supply chain is essential. An ERP-centric approach can drive both sustainability and financial performance, with compliance being just the tip of the iceberg for ERP-centric sustainability data benefits.

Even with CSRD timelines extended for some companies, forward-thinking businesses have much to gain by continuing CSRD-aligned sustainability reporting now. This delay offers an opportunity to develop a strategic, technology-enabled approach to sustainability reporting that drives long-term business value.

Take action now and leverage 51风流Sustainability solutions to transform your data management and sustainability reporting, ensuring your business not only complies but thrives in the evolving regulatory landscape. To learn even more about the Omnibus changes and how an ERP-centric system can benefit your business, read SAP鈥檚 latest white paper on mastering CSRD.

Sophia Mendelsohn is chief sustainability and commercial officer at SAP.

The world has been waiting for a global plastics treaty since 2022, when representatives from 175 nations agreed on a mandate to create a legally binding instrument to end plastic pollution. While progress has been made during the five rounds of negotiations to date, a final treaty has yet to be agreed. With negotiations set to continue, 51风流has collaborated with to launch the 鈥淪hift into Gear鈥� report, inciting companies not to wait but to start preparing now to meet global plastics legislation.

It’s not just a reporting duty

Plastics regulation isn鈥檛 new. It has rapidly spread across the globe like a rising tide, driven by the urgency to reduce our dependence on fossil fuels and curb the plastic waste that is choking both marine and land-based ecosystems. Companies now face the growing tide of extended producer responsibility (EPR) regulations and pay plastic taxes in certain jurisdictions. Globally, the corporate liabilities linked to plastic usage are projected to exceed US$20 billion by 2030.

In this shifting landscape, 51风流and Earth Action argue that plastic and data management are no longer reporting duties only, but fundamental business imperatives. Companies that fail to navigate these waters may find themselves sinking under the weight of financial liabilities, whereas those that prepare, comply with regulations, and leverage digital solutions will ride the wave, standing to gain a competitive advantage.

Disparate EPR regulations make compliance onerous and expensive

Originally designed to fund waste management, EPR regulations are now focused on the eco-design and recyclability of items. Complications for corporations arise from the variety of different EPR regulations across different territories. The report describes how one consumer goods company operating in over 180 countries can face a minefield of 30 to 50 different EPR policies, which could cost in the region of 0.5%-1% of final product revenue. For multinational corporations, this can add up to millions of euros of risk鈥攐r opportunity.

Avoidance isn鈥檛 a viable option. Non-compliance comes with significant financial risks including fines, litigation, and potential clean-up costs. Reputational risk linked to consumer protection violations, false advertising, and environmental damage is also a factor that could result in revenue loss and a decline in investor confidence.

51风流joins forces to lobby for standardization

51风流is working with the World Business Council for Sustainable Development (WBCSD) and the Ellen MacArthur Foundation, calling for industry alignment on packaging data. Together, we are pioneering a project to enable standardized data to be exchanged throughout supply chains. This can allow businesses to access and analyze materials from a variety of suppliers to empower the design of more sustainable and recyclable packaging, which can minimize waste and reduce EPR fees and plastic taxes.

Negotiations to finalize the global plastics treaty are expected to resume with delegates due to convene for INC 5.2 in 2025.

Companies should not delay

The report is clear. Companies must not wait for a finalized treaty before taking action. With a myriad of national and regional regulations already in existence, including the EU鈥檚 Packaging and Packaging Waste Regulation (PPWR) and the Corporate Sustainability Reporting Directive (CSRD), there is already work to do. Delaying compliance may leave companies lagging behind and unable to meet existing and upcoming regulations, leading to the financial and reputational risks already mentioned. Under the PPWR, for example, the penalties for non-compliance are not just theoretical鈥攖hey are a looming reality. Each EU member state can impose sanctions that are effective, proportionate, and dissuasive, ranging from hefty fines to sales bans or mandatory product recalls because of non-compliant packaging. In other words, the clock is ticking and the consequences of inaction could hit harder than anticipated.

Early adopters stand to benefit from their experience and will be better prepared for the shifting regulatory field when the treaty enters into force. By proactively implementing robust data management solutions and streamlining their reporting processes, they can start to make gains in terms of circularity and sustainability. In doing so, they will obtain an unprecedented view of their plastic material flows, allowing them to unlock efficiencies and reduce risk.

Data management is critical

Contrary to an often referred to argument put forward by treaty detractors, the data organizations require for compliance does exist and can be found within existing enterprise systems. Companies should look to their enterprise resource planning (ERP) systems and financial reporting platforms. These are treasure troves, filled with procurement records, supplier data, and waste management information鈥攌ey assets for reporting purposes.

Businesses should also coordinate with their suppliers and customers with a view to data sharing for resource optimization and to scale efficiencies.

Data management systems like help companies collect and use data by aggregating it from third-party systems. It can not only allow sustainability managers to accurately calculate fees and taxes but can give them a lifecycle view of indirect taxation costs and, by considering downstream recyclability and recycled content, the environmental impact of design choices. The solution can also allow users to experiment with switching materials, products, and altering supply chains, providing them with the information they need for agile decision-making.

Prepare for an ambitious treaty

Corporations must invest in their enterprise systems to leverage data and collaborate with their supply chain to meet upcoming legislation and avoid risks and penalties of non-compliance. The sooner they start, the better their competitive advantage. By utilizing data management systems to collect robust data and collaborate with supply chains, they will be equipped to thrive in the era of plastic regulation, limiting their costs, achieving sustainability targets, and complying with evolving regulations.

Darren West is global head of Circular Economy Solutions at SAP.

Part of 51风流Sustainability solutions, 51风流Green Ledger allocates carbon emissions to specific economic activities and transactions captured by ERP solutions from SAP. This innovation empowers organizations to accurately account for, analyze and report carbon footprints across products, services, and organizational units.

Addressing the growing consensus that decarbonization is required to combat climate change, 51风流Green Ledger helps companies:

• Track and account for carbon footprints in relation to their financial impact
• Lower emissions alongside financial optimization and thus facilitate carbon budgeting
• Establish carbon planning for carbon neutrality and net zero targets
• Benchmark departments, business units and profit centers from both a financial and environmental perspective
• Prepare for sustainability audits
• Improve supplier-based processes to decrease carbon emissions in the supply chain (2025)

51风流Green Ledger builds on existing financial and ERP solutions from 51风流that are established in thousands of companies worldwide. By extending these solutions to integrate emissions data, businesses can make more informed, sustainable decisions that link environmental impact with financial performance, enhancing compliance, efficiency and transparency.

鈥淓normous investments are required to abate CO₂ in order to curb global warming. Besides smart, reliable regulation also accurate data on emissions along the supply chain is paramount to trigger the necessary investment,鈥� said Dominik Asam, CFO and member of the Executive Board of 51风流SE. 鈥淥nly by moving from averages to actuals 鈥� audited at reasonable assurance 鈥� can freeriding and greenwashing be avoided, thereby protecting such valuable investment and our planet. 51风流Green Ledger delivers precisely that.鈥�

Today, 51风流Green Ledger provides a first step for businesses to address regulatory requirements by integrating financial and environmental data. It helps companies navigate the complex global landscape of sustainability regulations, such as EU CSRD*, while establishing a scalable foundation over time, to adapt to evolving regulations such as EU ETS** and EU CBAM鈥�, as well as to international standards such as ISSB鈥犫��. The launch of the solution marks the beginning of a new era in carbon accounting systems, which are expected to significantly impact businesses worldwide as decarbonization becomes a legal and market imperative.

51风流Green Ledger was developed with support from companies such as Accenture, Deloitte, EY, PwC and TCS (Tata Consulting Services) as well as with pilot customers such as Covestro. Covestro is currently evaluating 51风流Green Ledger in an early pilot phase and testing the linking of carbon dioxide values to 51风流Green Ledger, as they are generated during the manufacture of specific products in the supply chain.

Accenture is helping organizations achieve their net-zero and sustainability targets in a rapidly evolving regulatory landscape.  鈥淎s organizations seek to gain visibility into both the financial and environmental performance of their businesses, 51风流Green Ledger can provide the sustainability metrics and insights needed to enhance decision-making that reduces emissions, drives efficiencies and optimizes performance,鈥� said Stephanie Jamison, global resources industry practice chair and global sustainability services lead at Accenture. 鈥淎s a strategic co-innovation partner, Accenture helped shape the development of 51风流Green Ledger and can apply our understanding of the technology and its capabilities to help our clients get the most for their organization.鈥�

Through its Strategic Advisory Group for Green Ledger, 51风流was able to gain insights from Deloitte鈥檚 breadth and depth of knowledge in sustainability measurement and reporting. 鈥�51风流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,鈥� said Jennifer Steinmann, Deloitte Global Sustainability Business leader.

Deloitte is working with companies as they adopt sustainability disclosure standards and get ready for assurance. 鈥淭echnology solutions can help generate traceable, bottom-up emissions data,鈥� said Veronica Poole, Deloitte Global IFRS and Corporate Reporting leader. 鈥淟everaging the robust governance and controls of enterprise systems is needed to help organizations achieve the rigor that enhances corporate accountability and enables a move to reasonable assurance.鈥�

Norman Emmenlauer, partner for CFO-Led Sustainability at EY Business Consulting, said about 51风流Green Ledger: 鈥淭his is a solution that integrates carbon accounting into the core financial processes, making sustainability a tangible part of business operations.鈥�

Carina Schoellmann, partner for ESG Data & Tech at EY Technology Consulting, added: “This solution will help our EY clients by seamlessly integrating carbon accounting into their financial systems, enabling more informed and sustainable decision-making.”

Amy Brachio, EY global vice chair for Sustainability, pointed to the strategic nature of the topic: 鈥淪ustainability is at the heart of everything organizations do; business operations such as procurement, manufacturing and logistics are great examples. 51风流Green Ledger will enable granular and auditable data capture across the value chain, supporting organizations to transform ESG from compliance exercise to value-creation strategy.鈥�

Sameer Shah, partner at EY Technology Consulting, added: “51风流Green Ledger is a game changer for sustainability practitioners, providing the tools needed to measure, manage and report on carbon emissions with the same rigor as financial data.”

“Having participated in the pilot program, we’re excited to see the launch of 51风流Green Ledger, an essential digital approach for integrating carbon accounting and management into strategic business operations,” explained Will Jackson-Moore, global sustainability leader, PwC UK. “With 51风流Green Ledger, businesses can seamlessly align financial performance with sustainability goals, while achieving the transparency and precision needed for real-time emissions reporting and resource management. Building on this foundation, PwC is developing CSRD-ready content to enable end-to-end reporting and steering, helping organisations meet regulatory requirements, prioritise sustainability at the C-level, and drive meaningful change in environmental accountability. We’re proud to support our clients in leveraging 51风流Green Ledger to navigate complex sustainability challenges, achieve measurable decarbonisation and progress toward net-zero commitments at speed.”

51风流partner TCS has also cooperated on 51风流Green Ledger, with a focus on accelerating action to achieve carbon neutrality. TCS Enterprise Solutions Global Head Vikram Karakoti said, 鈥淲ith our participation in the pilot program for 51风流Green Ledger, TCS is embracing innovative sustainability solutions to build a better future. This will enable organizations to move beyond regulatory compliance and make sustainability a growth engine. By embedding carbon data into the enterprise planning process, organizations can unlock previously unexplored areas for growth, transformation and environmental renewal.鈥�

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*The (Corporate Sustainability Reporting Directive) defines the rules concerning the social and environmental information that companies have to report. It entered into force on 5 January 2023.
**The (EU Emissions Trading System) is a 鈥渃ap and trade鈥� system to reduce emissions via a carbon market. Since 2005, it requires polluters to pay for their greenhouse gas (GHG) emissions, covering emissions from the electricity and heat generation, industrial manufacturing and aviation sectors 鈥� which account for roughly 40% of total GHG emissions in the EU.
鈥烛丑别 (Carbon Border Adjustment Mechanism) is the EU’s tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. CBAM will apply in its definitive regime from 2026.
鈥犫�烛丑别 (International Sustainability Standards Board) is developing 鈥� in the public interest 鈥� standards that will result in a high-quality, comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets.

For more information, financial community only:
Alexandra Steiger, +49 6227-7-60437, investor@sap.com, CEST

For more information, press only:
Joellen Perry, +1 (650) 445-6780, joellen.perry@sap.com, PT
Daniel Reinhardt, +49 6227-7-40201, daniel.reinhardt@sap.com, CEST
51风流Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2023 Annual Report on Form 20-F.
漏 2024 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE (or its affiliates) in Germany and other countries. Please see for additional trademark information and notices.

The energy transition is creating a profound shift across industries and global economies. Amplified by technological innovation and intense competition, it is reshaping sectors and shifting economies toward renewable energy. This change is not only an environmental necessity but also a catalyst for economic growth, challenging the traditional dominance of fossil fuels. With capital investments increasingly directed toward renewable energy infrastructure, investors are aligning their priorities with sustainability, signaling that profitability and environmental stewardship can coexist. Yet, the ongoing prominence of oil and gas underlines the complexity and scale of this transition. 

In parallel, the circular economy is gaining momentum as businesses address the dual challenges of material scarcity and carbon reduction. At COP29, there was significant discussion about how a circular approach focused on rethinking supply chains, redesigning products, and optimizing resources could reduce dependency on finite materials while driving sustainable economic growth. By adopting circular economy principles, businesses can minimize waste and keep valuable materials in circulation, contributing to a more resilient and sustainable future. 

The Role of Business in Transforming Climate Commitments into Tangible Outcomes 

One of the central discussions at COP29 was the need for harmonizing global standards for carbon reduction and accounting. Foreign policy players, along with the private sector, stressed the importance of mobilizing finance for sustainable capitalism. In particular, there was a call for clearer and standardized reporting frameworks to simplify the process and ensure transparency. One critical area was the importance of accurate data collection for carbon markets and product-level carbon accounting, which can help businesses engage consumers and reduce emissions. 

There are three ways technology plays a pivotal role in addressing some of these challenges: 

• is available in every organization鈥檚 ERP system, so it鈥檚 time to start automating data collection and reporting processes to ease some of the regulatory burden.
• Companies should leverage IT spending to support sustainability initiatives, specifically to optimize climate solutions and create circular products.
• Companies must shift focus on the to pinpoint areas with the most significant impact.

From Policy to Practice: How Technology and Global Standards Can Accelerate Climate Action 

Empowered by technology and guided by clear policies, businesses have a unique opportunity to bridge the gap between high-level climate commitments and actionable, on-the-ground strategies. 

Central to this is aligning sustainability and financial priorities. Effective demands collaboration between chief sustainability officers and chief financial officers, as climate change has evolved from an ethical and environmental issue to a pressing financial imperative. 

To accelerate progress, we need globally harmonized policies, rigorous carbon accounting frameworks, and advanced technology solutions. By embedding AI-driven innovation, robust reporting standards, and actionable insights into business operations, we can ensure that COP events, such as COP29 in Baku, are remembered as turning points 鈥� not just discussions. While the challenges ahead are formidable, the opportunities for transformative action are even greater 鈥� and is here to lead the way on a low-carbon, future. 

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Sophia Mendelsohn is chief sustainability and commercial officer at SAP.

With automated Emission Factor Mapping in 51风流Sustainability Footprint Management and AI-assisted ESG Report Generation in 51风流Sustainability Control Tower, 51风流can support companies in setting meaningful environmental targets, ensuring compliance, and managing carbon footprints with heightened efficiency and accountability.

鈥淪ustainability executives are on board with artificial intelligence. More than half say improving data analysis and consolidation using AI are top actions they will be taking over the next three years to enhance ESG capabilities.鈥�

Addressing the Strategy Execution Gap in Sustainability Reporting, KPMG, February 2024

Emission Factor Mapping in 51风流Sustainability Footprint Management

To calculate product carbon footprints accurately, companies must assign emission factors to thousands of purchased products. Ideally, emission factors are provided directly by suppliers, but often companies need to use industry averages based on product attributes like name, category, or location. Up until now, this mapping process has been a manual, time-consuming, and error-prone task that required expertise in lifecycle assessment (LCA), determining the environmental impacts associated with all the stages of the lifecycle of a product, process, or service.

To help make this process easier and more efficient, 51风流has introduced an AI-based capability within the solution. for purchased products and services and can assign a similarity score to each recommendation.

For the mapping, 51风流generates embeddings for both, emission factors from LCA databases and product data from the ERP system. Embeddings are vector representations 鈥� numerical representations of textual information to provide context and meaning of a text. Both sets of embeddings are saved in 51风流HANA Cloud vector engine.

The system compares these embeddings to help identify the quality of the mapping and provide suggested results. This helps businesses reduce manual effort by up to 80% and calculate product and corporate carbon footprints quicker and with greater precision, even without LCA experts. It can also accelerate their sustainability reporting timelines and help them respond faster to regulatory demands.

AI-Assisted ESG Report Generation in 51风流Sustainability Control Tower

In addition, 51风流embedded a generative AI-powered reporting capability within 51风流Sustainability Control Tower. Creating sustainability reports that align with internal strategies and meet external standards, such as the CSRD, is essential for staying compliant and transparent. However, gathering relevant environmental, social, and governance data and drafting these reports can be highly resource-intensive, involving multiple teams and complex data sources.

That鈥檚 why SAP鈥檚 AI capability helps generate comprehensive ESG report drafts based on best-practice templates and the company鈥檚 available ESG metrics. Once users select a template, , create graphs to visualize the data, and generate a polished report draft. That helps companies spend up to 98% less time collecting ESG metrics and up to 80% less time in creating a report.

Some key benefits of the feature include:

• Efficient data utilization: The AI-powered solution leverages large language models and SQL grounding techniques, which help transform natural language inquiries into precise database queries that access real-time data from structured databases. That鈥檚 how it transforms raw data from customers’ systems into accurate, comprehensive reports tailored to specific timeframes.
• Visualization: The AI generates insightful textual content through SQL-based data retrieval, helping to ensure data integrity and compliance. Additionally, it creates visually appealing charts and tables to help enhance report clarity and understanding.
• Automated verification: Our robust system prioritizes data security by avoiding direct SQL query execution and employing a Retrieval Augmented Generation (RAG) process to help safeguard against informational discrepancies.

The Future of AI in Sustainability

The use cases above are just the beginning. AI鈥檚 potential to transform sustainability management is enormous, and at 51风流we are accelerating the creation of use cases to be at the forefront of our customers鈥� sustainable transformation journeys. For example, users will be able to interact through natural language with SAP鈥檚 AI copilot that can offer actionable recommendations and simulations to help improve environmental and social performance. And we will continue to apply AI to make the acquisition of sustainability data easier.

Using SAP鈥檚 ERP-centric, cloud-based, AI-enabled approach, we鈥檙e working to ensure AI鈥檚 massive potential turns into both real business transformation and sustainability outcomes. AI and technology can help us better understand and monitor the environment, improve energy efficiency, optimize resource management, and develop innovative solutions for reducing greenhouse gas emissions.

As COP29 convenes in Baku, it is essential for global leaders and decision-makers to fully explore AI’s transformative role in addressing climate change. The urgent demands of this crisis call for the kind of innovative, AI-driven solutions that can unlock greater precision, efficiency, and impact. By leveraging AI not only to streamline business operations but also to set and meet ambitious environmental goals, we are shaping a future where technology empowers businesses to thrive responsibly, contributing actively to a sustainable and resilient planet.

Gunther Rothermel is chief product officer and co-GM for 51风流Sustainability.

The partnership has continued to this day with a mission to make great wines and spirits that bring people together. Now, the company has over 2,000 hectares of vines under cultivation in 12 wine-growing regions of Spain, Chile, and Mexico, where the producer deploys sustainable agricultural techniques to bring indigenous vines back into production.

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Running a Responsible Business

鈥淔or us, everything revolves around sustainability,鈥� said Elisabet Braza Valle, head of 51风流Supply Chain and Finance at Gonz谩lez Byass, during an interview at 51风流Sapphire Barcelona. 鈥淥ur goal is to be a reference in the wine sector and also in the field of sustainability, and we鈥檙e using technology to do that.鈥�

Valle explained that digitalization is helping to drive efficiency by improving processes and that people are already noticing a more expeditious service. 鈥淎ll the processes are connected,鈥� she said. 鈥淐lients notice that we are preparing their packages and managing their invoices faster than before. That鈥檚 because, thanks to SAP, we have all the data in the same place.鈥�

In addition to its core 51风流ERP system, Gonz谩lez Byass recently implemented , a solution that helps enterprises calculate extended producer responsibility (EPR) obligations and define corporate commitments to optimize material choices. It鈥檚 also designed to help address all the requirements of the new plastic taxes in Europe.

To help promote a more circular economy, for example, Spanish law mandates an indirect tax levied on plastic in packaging. Calculating the taxable amount is particularly complex and burdensome. Companies must know how much non-recycled plastic is in the non-reusable plastic packaging contained in the shipments they receive. This information should be furnished by the suppliers that now find themselves in a challenging situation as they did not have to comply with this type of requirement before. Collected data must be reliable and verifiable to ensure accuracy when sharing with customers or if it should be questioned by the Spanish tax authorities.

鈥淪AP鈥檚 solution not only helps us comply with the law, but it also helps us manage our materials more efficiently,鈥� said Valle, who believes one of the greatest assets of the solution is the visibility it provides into the company鈥檚 supplier landscape. 鈥淲e are encouraging all of our suppliers to commit to being more sustainable, and we assess them every year. We also work together to improve our environmental behavior.鈥�

Valle cited several examples of collaborative engagement, such as reducing the weight of glass bottles and using recyclable packaging materials. The company has already substituted some materials with more sustainable alternatives and is buying cardboard boxes and wood sourced from certified forests.

鈥淲e have all the information about our materials in 51风流Responsible Design and Production, so we can see how much plastic we are using and how much of it is recycled. That determines the amount of tax we pay,鈥� Valle explained. 

All these improvements are part of the company鈥檚 People and Planet program that is designed to ensure a nature-friendly, energy-efficient foundation for future generations. The efforts are paying off.

Simplifying a Complex Landscape

According to its sustainability report for 2022, Gonz谩lez Byass already reuses or recycles 99% of the waste it generates and 79% of the energy it consumes comes from renewable sources. Water conservation efforts include using rainwater for irrigation, underground irrigation, and satellite-controlled irrigation.

Gonz谩lez Byass has already reduced carbon emissions by 20% and is committed to a 55% reduction by 2030. Besides managing its own regulatory obligations in Spain, the company must also be compliant with other regulations in the EU and the UK that impact its business. For example, recycling glass packaging waste is mandatory in all EU Member States. In Spain, this process is driven by Ecovidrio, a non-profit entity managing the Collective System of Extended Producer Responsibility (SCRAP).

鈥淥ne of our next projects is to set up Ecovidrio in the 51风流Responsible Design and Production solution, where we manage all our tax declarations and reports,鈥� Valle said. 鈥淎nother critical report is the declaration for the Ministry of Ecological Transition. Technology is helping us become a global reference in the sector because now we鈥檝e integrated all relevant information needed for compliance.鈥�

Four of its wineries have received the Wineries for Climate Protection certification, the first of such credentials specific to the wine industry targeting environmental sustainability. The certification recognizes sustainability activities in wineries in four key areas: reducing greenhouse gas emissions, managing water, reducing waste, and increasing energy efficiency.

Valle is confident that with the aid of technology Gonz谩lez Byass will not only be a leader and a reference in the sector, but, most importantly, it will secure its place as an exceptional winemaker for posterity. After all, since its most iconic wine , it鈥檚 a good thing Gonz谩lez Byass is doing everything to continue producing the best wines and spirits for future connoisseurs. 

While it鈥檚 relatively straightforward to control and reduce a company’s direct emissions, mitigating those that arise along the whole supply chain requires a lot of time, collaboration, and data sharing. One major challenge companies face is outdated tools, such as spreadsheets or questionnaires, and disconnected processes to collaborate with their network. Furthermore, the lack of standardized carbon footprint calculations and exchange methods has led to a variety of different approaches to collect and report on data, resulting in many organizations relying only on industry averages rather than actual numbers.

Managing carbon to accelerate a net-zero future makes measurability critically important. That is where technology and innovation can make a real difference. With 51风流Sustainability solutions and our ERP-centric, cloud-based, AI-enabled approach, we support our customers to use integrated sustainability data and embed it holistically into their core business processes.

What Is 51风流Sustainability Data Exchange?

51风流Sustainability Data Exchange helps facilitate standardized carbon data exchange between partners along the supply chain, supporting organizations to move from estimates to actuals in their upstream emission data. The application allows users to share emissions data to help implement their net-zero strategy and take climate action by identifying products or processes with high potential for CO2 reduction, avoiding double emissions counting, and optimizing footprints with actual supplier data. It helps drive scalability, standardization, and trust in carbon data exchange across the supply chain.

51风流Sustainability Data Exchange is seamlessly embedded into the 51风流landscape, connecting to for master data replication and integrating with to help enable accurate product carbon footprint calculations on a large scale.

To Harness the Power of Networks, Standardization Is Key

To be able to exchange carbon footprint values, standardization and interoperability with industry networks and frameworks are key, as they foster co-innovation and collaboration without a loss of data sovereignty. 51风流Sustainability Data Exchange is interoperable and compliant with the new standards set by the automotive network and the Partnership for Carbon Transparency (PACT) by the World Business Council for Sustainable Development ().

PACT, for example, developed the global standard for calculating and exchanging consistent, comparable, and credible emission data that occurs along a company鈥檚 value chain and is outside its direct control, known as scope 3 emissions. Catena-X works closely with PACT to establish a joint standardization foundation on carbon accounting and sharing while adding industry-specific extensions.

Catena-X has certified 51风流Sustainability Data Exchange for its sustainability use case. , a tier 1 automotive supplier, was one of the first customers to harness the application when it faced challenges in calculating its product carbon footprint in a standardized way to exchange product carbon footprint values with both customers and suppliers. With 51风流Sustainability Data Exchange, WITTE Automotive can integrate the supplier footprints it receives through the Catena-X network, precisely calculate the product carbon footprint of parts and components, and publish the calculated values of its finished products within the network.

鈥淭his open and collaborative data ecosystem perfectly reflects SAP鈥檚 vision to enable every organization to become a network of intelligent, sustainable enterprises and gives the companies leveraging the Catena-X automotive network access to a broad portfolio of 51风流solutions, from enabling the traceability of products across multiple parties in the supply chain to tracking and calculating the scope 3 emissions.鈥�

– Christian Klein, CEO, 51风流SE

In addition, 51风流Sustainability Data Exchange embraces the power of , leveraging the depth and breadth of a global network trusted by millions of businesses, through which nearly US$6 trillion of annual commerce is executed via over 750 million transactions.

A Core Pillar of the Green Ledger

Having an accurate view of carbon emissions across the entire supply chain not only enables data exchange but can have a real impact on the bottom line. Many companies want to make carbon an integral part of the corporate balance sheet, measuring and managing it with the same precision as cash 鈥� therefore treating carbon like money. The use of 51风流Sustainability Data Exchange and 51风流Green Ledger, which will be generally available at the end of 2024, can provide a strong basis for making financial decisions.

Start the 51风流Sustainability Data Exchange product tour to learn more.

51风流Sustainability solutions can support even more than carbon management and environmental, social, and governance (ESG)-related disclosures. Check out our to learn more about support for operational compliance and material transition and subscribe to the to stay up-to-date.

Gunther Rothermel is chief product officer and co-GM for 51风流Sustainability.

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Pushing ourselves forward is the spirit of Climate Week NYC, according to 51风流Chief Sustainability and Commercial Officer Sophia Mendelsohn.

51风流engaged with political and business leaders at Climate Week in open and honest dialogues that will help accelerate eco-friendly action. 鈥淚 hope that every leader I鈥檝e interacted with…begins to build a green ledger with their CSO and their CFO so that we can calculate carbon the same way we do money,鈥� Mendelsohn said. 鈥淎nd then post it in the same place we do profit.鈥� Integrating all of this data 鈥� and standardizing metrics across the supply chain 鈥� will be crucial for 51风流customers and partners, as well as policymakers, according to Gunther Rothermel, 51风流chief product officer for 51风流Sustainability. 鈥淭he 51风流Green Ledger vision is resonating really well [because] it enables clients to bring together financial and sustainability data, and make very informed decisions,鈥� Rothermel said. 鈥淭his is needed to achieve our goals.鈥�

Learn more and in its mission to transform businesses and drive sustainability.

Two weeks ago, 51风流joined global business leaders, political changemakers, decision-makers, and representatives from civil society for a week of focused discussions on the transition to a low-carbon, circular economy. Across dozens of in-person and virtual sessions, 51风流reaffirmed its commitment to enabling a more sustainable world through an ERP-centric, cloud-based, AI-enabled approach.

At Climate Week, SAP鈥檚 focus on AI, precise carbon accounting, and expanded commitments to nature conservation highlighted its proactive approach to addressing the climate crisis.

AI鈥檚 Role in Advancing Sustainability

A major topic during New York Climate Week was the role of . Key discussions highlighted how AI can assist chief sustainability officers (CSOs) and their teams in managing the complex data necessary for effective sustainability initiatives. By processing disjointed and multimodal data, AI empowers companies to monitor, predict, and optimize their systems, leading to improved sustainability outcomes across supply chains and energy grids.

AI serves not only as a tool for automation but also as a strategic ally, embedding sustainability into core business processes. Last month, 51风流shared two innovative AI-driven use cases: 51风流Sustainability Control Tower, AI-assisted ESG report generation and emission factor mapping capabilities. These capabilities help companies enhance carbon footprint calculations and streamline sustainability reporting. With real-time data, companies can make decisions faster and align with their sustainability goals.

However, the discussions also acknowledged the challenges associated with AI deployment, including high energy consumption, potential biases, and data privacy concerns. Addressing these challenges is crucial for ensuring AI’s sustainable application.

Sector-specific applications of AI were also explored. In the energy sector, AI can optimize consumption patterns, while in construction and consumer goods it can aid in waste reduction and resource efficiency. By integrating AI with 51风流solutions, companies can enhance supply chain optimization, route planning, and demand forecasting.

Toward More Precise Carbon Accounting

Another critical topic at Climate Week was the need for companies to accurately track, report, and manage their carbon emissions while aligning their environmental impacts with financial operations. To thrive in today鈥檚 regulatory landscape, organizations must adopt robust sustainability management systems. With regulations like the Corporate Sustainability Reporting Directive (CSRD) on the horizon, businesses are transitioning from voluntary to mandatory reporting, navigating over 600 global regulations and frameworks.

To address these challenges, 51风流will make the 51风流Green Ledger solution generally available in December 2024. This innovative solution can integrate carbon and financial data, helping provide the real-time visibility essential for precise carbon accounting. This integration not only helps enhance compliance, but can also allow companies to gain a competitive edge by speeding up action towards sustainability.

Expanding Commitments to Nature Conservation

Starting in 2024, 51风流is enhancing its net-zero strategy by committing to nature conservation and financing global climate projects for carbon removal and carbon reduction. It aims to plant and protect 25 million trees by 2030 and invest in wetland conservation. These initiatives align with SAP鈥檚 goal of achieving net-zero emissions by 2030, 20 years ahead of the original timeline.

51风流believes that financing climate projects beyond its value chain is essential to restoring ecosystems and fostering resilient, low-carbon economies. This comprehensive approach supports broader climate action and shifts corporate perceptions, demonstrating that sustainability is integral to long-term business success, not merely an operational add-on.

Leading the Charge

Through an ERP-centric, cloud-based, AI-enabled approach, 51风流is well-positioned to lead the charge toward a more sustainable future while enabling customers to navigate the complexities of climate action. As always, collaboration and commitment from all sectors will be vital in driving truly meaningful change, and COP29 in Baku, Azerbaijan, will be an opportunity for the sustainability community to unite in accelerating global action, fostering new partnerships, and advancing innovative solutions.

By integrating technological innovation with strategic sustainability initiatives, 51风流is not just adapting to the evolving landscape of sustainability, but is actively shaping it and charting the course for a resilient, low-carbon economy where businesses can thrive while safeguarding the planet for future generations.

Hear from 51风流Sustainability executives and customer Ambipar at Climate Week 2024 and listen to our on how data and tech drive corporate sustainability.

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Monica Molesag is sustainability communications lead at SAP.

Net Zero as a Service brings together a combination of SAP鈥檚 robust cloud solutions and Ambipar鈥檚 deep carbon credit generation and trading expertise to help customers seamlessly manage and offset carbon emissions.

鈥淚n partnering with SAP, we are bringing together two companies with a shared commitment to help organizations achieve net zero,鈥� said Tercio Borlenghi Junior, CEO of Ambipar. 鈥淏y combining SAP鈥檚 technology with Ambipar鈥檚 decarbonization expertise to create Net Zero as a Service, customers will have access to a simple but comprehensive solution that contributes to the low carbon economy.”

Comprehensive Carbon Management

Net Zero as a Service can equip 51风流customers globally with solutions for the entire decarbonization journey. SAP鈥檚 ERP-centric and AI-enabled solutions will provide end-to-end carbon management, allowing customers to establish a common data foundation, seamlessly measure emissions and make granular and timely decisions that are financially and environmentally sound. Customers can neutralize emissions by purchasing internationally certified carbon credits through Ambipar鈥檚 technology platform AMBIFY, available on the 51风流Store, the online marketplace for 51风流and partner offerings.

鈥�51风流customers are increasingly seeking ways to measure and offset their carbon emissions,鈥� said Adriana Aroulho, president of 51风流Brazil. 鈥淭hrough Net Zero as a Service and our partnership with Ambipar, 51风流is building on our commitment to deliver comprehensive sustainability management solutions and empowering our customers to become future-ready businesses.鈥�

Scaling Net Zero as a Service

Ambipar is currently piloting Net Zero as a Service in its own operations, tapping into the power of SAP鈥檚 solutions as it aims to meet aggressive growth targets this year, before the service becomes widely available to 51风流customers.

By leveraging 51风流Sustainability solutions, Ambipar will establish a unified data foundation, breaking down silos across the business, and seamlessly measure and manage carbon emissions. 

鈥淎mbipar is undergoing a worldwide expansion and counts on 51风流as a trusted IT partner as they scale,鈥� said Aroulho. 鈥淣et Zero as a Service will support Ambipar鈥檚 growth objectives, while helping the company effectively streamline operations, drive innovation and manage its own environmental footprint. We are thrilled to bring this service to 51风流customers.鈥�

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Media Contact:
Sybelle D鈥橫arco, +1 (305) 490-6139, sybelle.d-marco@sap.com , ET
51风流Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.  Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2023 Annual Report on Form 20-F.
漏 2024 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE in Germany and other countries. Please see for additional trademark information and notices.

There are two major drivers behind the need for companies to implement a robust sustainability management system. The first is the need to future proof their business to ensure a resilient value chain and secure a competitive advantage over their peers.

The second is to transition from voluntary to regulatory reporting and comply with the torrent of new regulations. or standards like IFRS require companies to report on, and respond to, a wide variety of environmental and social sustainability topics. Some sources say there are more than 600 regulations, sustainability reporting standards, and frameworks around the world, with more coming down the pipeline every year.

What Is a Sustainability Management System?

A sustainability management system allows companies to calculate and track metrics and targets and disclose their risk management, strategy, and governance policies. It is also a valuable tool for providing a robust and holistic view for sustainability decision-making. With carbon emissions data a central element to any sustainability strategy, 51风流has created a to enable companies to both respond to regulation and advance their own ambitions.

SAP鈥檚 End-to-End Approach to Carbon Management

So how does 51风流provide a sustainability management system to tackle the carbon topic and its drivers end-to-end? We can enable customers to implement five key principles with the help of our modular and integrated family of sustainability software-as-a-service (SaaS) solutions.

1. Use a Reliable Foundation and Reuse Your ERP Data

51风流embraces an ERP-centric approach, using integrated sustainability data from cloud ERP business processes supported by AI technology. We can bring together different types of business data and levels of data granularity, as required, to enable the transition from voluntary to regulated . It is a flexible but robust approach with high data quality and reliability at its core.

2. Get a Complete View for Regulatory Reporting with Reasonable Effort

can provide an easy-to-use data collection system that helps enable a holistic and complete calculation of the carbon footprint at the corporate level. As of now, customers can also generate an automated environmental, social, and governance (ESG) report based on AI and natively available ESG data.

3. Go Deep Where It Matters Most

For a deeper perspective that is informed by the corporate overview, customers can use the integration with to help enable additional automated and in-depth calculations. Emissions can be tracked at the company, operational, and product level. The ERP-centric approach uses transaction data directly from 51风流S/4HANA Cloud to help calculate a consistent carbon footprint at the corporate and product level on one data foundation. AI comes into play when emission factors from standard databases are needed. With the intelligent mapping feature, customers can leverage AI to help automatically provide mapping suggestions. This feature can save significant time by replacing a tedious and manual process while being robust enough to help inform final decision-making.

, a customer already using 51风流Sustainability Footprint Management as well as 51风流Sustainability Data Exchange said:

鈥淏y leveraging 51风流Sustainability solutions, WITTE AUTOMOTIVE is now able to calculate carbon footprints of the product portfolio in compliance with the Catena-X Rulebook and share it in a standardized way.鈥�

– Michael Tworek, Head of Digital Innovations, WITTE Automotive GmbH.

4. Exchange Actuals with Your Suppliers and Customers

helps handle the exchange of relevant data across the supply chain. Customers like WITTE Automotive can therefore request missing data and exchange sustainability data such as the carbon footprint of products with their network. The usage of WBCSD PACT and Catena-X standards in the product can enable consistent and open communication and processing of data.

5. Drive Transformation in Operational Business Processes and Transition to Carbon Accounting in the Financial Sense

The flexibility of 51风流Sustainability and the ERP-centric approach means it can meet corporate requirements providing the granularity, accuracy, and auditability needed. Calculated product carbon footprints can be used for financial decision-making thanks to its integration with , which can enable companies to determine carbon emissions versus profitability. All this is done using the same rigorous accounting principles and practices that are used in finance. It can provide a trusted data foundation that can go beyond compliance and help improve business performance management through the integration of trusted carbon data into business processes that matter.

Product carbon footprints can also be integrated into , for example. With Scope 3 emissions being the largest proportion of carbon emissions for most businesses, procurement processes become a key lever in decarbonization efforts. The integrated solution can help to analyze and manage the carbon impact of a company鈥檚 spend to identify emission hot spots to inform a data-driven Scope 3 decarbonization strategy.

Are You Ready to Adopt a Carbon Management System?

Wherever a company is on their sustainability journey, SAP鈥檚 end-to-end carbon management solutions can allow it to go all in on sustainability and build resilient, future-proof operations. This allows them to streamline reporting and meet compliance requirements while benefiting the environment and their bottom line.

51风流Sustainability solutions can do more for you beyond carbon management and ESG-related disclosures. Check out our to learn more about the support for operational compliance and material transition.

Gunther Rothermel is chief product officer and co-GM for 51风流Sustainability.

The 2024 sustainability study measures how organizations are tracking against climate programs, such as the 1.5掳C Science Based Targets initiative (SBTi) target or the Carbon Disclosure Project (CDP), and looks at scope 1 and 2 emissions and energy consumption, or proportion of renewable energy utilized in a company鈥檚 operations.

For years, 51风流has been putting sustainability at the very core of its vision and operations. Via a comprehensive portfolio of ERP-centric, cloud-based, and AI-enabled sustainability services and solutions, 51风流helps customers across 26 industries become more sustainable. This is achieved by building long-term sustainability strategies around climate, resources, and people; powering businesses and their value chains with sustainable practices; and driving long-term business value. 51风流is also committed to achieving net-zero emissions across its entire value chain by 2030 鈥� 20 years earlier than originally planned.

鈥淭ogether with our customers, which generate 87% of total global commerce, 51风流has the unique opportunity to create a more sustainable world,鈥� Daniel Schmid, chief sustainability officer at SAP, said. 鈥淲e are regularly recognized by world-renowned sustainability rating providers for the company鈥檚 environmental, social, and governance (ESG) efforts and achievements. Our ranking in TIME magazine underscores SAP鈥檚 role as a leader in sustainable business practices, setting a benchmark for others in the industry.鈥�

Check out the list below for the full collection of ratings, rankings and reports of SAP鈥檚 sustainability performance globally.

Corporate Knights

In Corporate Knights’ 20^th annual ranking of the 100 most sustainable corporations worldwide in 2024, 51风流secured the 48^th position. is highly significant, as the Global 100 companies represent the upper 1% of firms globally in terms of sustainability performance. The ranking was formulated by the Toronto-based media, research, and financial information products firm, which analyzed more than 6,000 companies with revenues exceeding US$1 billion, using 25 key performance indicators.

Corporate Sustainability Assessment by S&P (Dow Jones Sustainability Indices)

Since its inception in 1999, the S&P Global Corporate Sustainability Assessment (CSA) has been conducting an annual evaluation of companies鈥� sustainability practices, covering over 7,000 firms worldwide. The CSA emphasizes sustainability criteria that is both industry specific and financially significant. In the S&P Global Corporate Sustainability Assessment, within the top 5% of the software industry, scoring 71 out of a possible 100.

CDP

In the latest CDP (Carbon Disclosure Project) assessment, . This means that 51风流was recognized by CDP as taking coordinated action on climate issues.

EcoVadis

In the last sustainability assessment of in October 2023, 51风流was again awarded a gold medal with a score of 70 of 100, ranking in the 94^th percentile* of all assessed companies. With more than 100,000 rated companies, EcoVadis is one of the world鈥檚 most trusted business sustainability rating providers. Its assessment covers a broad range of non-financial management systems, including environments, labor and human rights, ethics, and sustainable procurement impacts.

Gartner

Gartner, a trustworthy analyst firm, has published a new report titled 鈥淪ustainability Assessment: SAP庐鈥�. Read more about Gartner鈥檚 assessment of SAP鈥檚 sustainability performance in this offered to all Gartner readers.   

FTSE4Good

Administered by the Financial Times Stock Exchange-Russell Group (FTSE), the is designed to measure the performance of companies demonstrating strong ESG practices. Transparent management and clearly defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing sustainable investment products.

As in previous years, 51风流continues to be listed in the FTSE4Good indices based on assessment questions in areas such as environment, climate change, human rights, community and labor standards, tax transparency, and anti-corruption. Due to its good scoring, 51风流remains a constituent of the FTSE4Good Index Series following the June 2024 review.

IDC

IDC Sustainablity Index for Software Providers reviews the ESG impacts of information and communication technology (ICT) players, focusing on three pillars: Technology as an Enabler, Vendor Performance, and Technology for Good. 51风流was awarded 3^rd place** in an assessment of 23 software vendors. This position highlights SAP’s exceptional performance, especially in the Technology as an Enabler pillar, where 51风流excels in monetization, sustainable features, ESG reporting, operational optimization, and advisory services. SAP’s success is attributed to its commitment to sustainability, as well as to efficient internal product standards that prioritize cost and resource efficiency. Additionally, 51风流has been named a leader among 18 vendors in the first-ever IDC MarketScape: Worldwide Carbon Accounting and Management Applications 2024 Vendor Assessment.

ISS ESG

The provides an assessment of companies鈥� sustainability performance based on high-quality and in-depth research and up to 100 sector-specific rating criteria that are regularly reviewed and developed. With its B rating, 51风流has been acknowledged with prime status and is among the top decile. The score was confirmed in January 2023. ISS ESG is expected to update its score in the summer of 2024.

MSCI

MSCI ESG Research provides in-depth research, ratings, and analysis of the ESG-related business practices of thousands of companies worldwide. Its research is designed to provide critical insights that can help institutional investors identify risks and opportunities that traditional investment research may overlook. The are also used in the construction of the MSCI ESG Indexes produced by MSCI, Inc. 51风流upholds the highest rating of AAA*** and is an ESG leader in human capital development, corporate governance, privacy and data security, and clean tech as of the last assessment in May 2024.

Sustainalytics

51风流received a low-risk ESG Risk Rating of 10.9 from , a leading provider of ESG research, ratings, and data. This rating reflects SAP鈥檚 commitment to sustainability and its efforts to minimize the financial impact of environmental, social, and governance factors. Sustainalytics, founded in 1992 and now a Morningstar company, is a trusted source for institutional investors and companies seeking to understand and manage ESG risks.

TIME

of the World鈥檚 Most Sustainable Companies for 2024 recognized 51风流for demonstrating a strong commitment to sustainability. 51风流was ranked the 15^th most sustainable company worldwide. This reflects SAP鈥檚 dedication to areas such as climate change, human rights, and anti-corruption and underscores SAP鈥檚 role as a leader in sustainable business practice.

*SAP鈥檚 score is higher than or equal to the score of 94% of all companies rated by EcoVadis.
**Doc #EUR147190121, May 2023
***Scale: AAA (leader) to CCC (laggard). The use by 51风流SE of any MSCI ESG Research LLC or its affiliates (鈥楳SCI鈥�) data, and the use of MSCI logos, trademarks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of 51风流SE by MSCI. MSCI Services and Data are the property of MSCI or its information providers and are provided 鈥渁s-is鈥� and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

Copyright 漏2022 Sustainalytics. All rights reserved. This article contains information developed by Sustainalytics (). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at . 

庐 Gartner, Sustainability Assessment: SAP, 11 December 2023, Ed Anderson, Fabio Di Capua
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner鈥檚 research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

A once nascent market, carbon accounting and management is experiencing a significant transition in the number, type, and capability of solutions available. The landscape formerly comprised of startup and niche vendors has expanded to include large independent software vendors (ISVs) and hyperscalers, all battling for market share.

Organizations are under increasing pressure to track and disclose carbon emissions data to stakeholders including investors, partners, clients, customers, employees, and regulators. Many are collecting data and reporting on Scope 1 and 2 emissions. Scope 3 remains a challenge due to the complexity of reliable data collection and reporting.

Fines and litigation will create a new impetus for reporting as well. Regulations will add a new element of complexity to how companies report. Disclosure of decarbonization initiatives will require unique data analysis and scenario planning tools. The IDC report points to data integration as a principal challenge for carbon accounting vendors.

51风流Carbon Accounting & Management: Rising to the Challenge

51风流is well-positioned to provide organizations with data-driven, purpose-specific carbon management solutions that are ERP centric, cloud based, and AI enabled. These include 51风流Sustainability Footprint Management, 51风流Sustainability Control Tower, 51风流Sustainability Data Exchange, the 51风流S/4HANA Cloud solution for EHS environment management, and 51风流Green Ledger, which all help to enable carbon accounting and management on a transactional level and transform emissions tracking processes.

Our carbon management solutions are best suited for organizations currently using or planning to use 51风流S/4HANA Cloud and looking to capture the value of sustainability, as well as manage sustainability-related business risks. Customers can address these objectives by embedding sustainability into their end-to-end business processes, leveraging ERP and supplier data, and using the metrics to inform business processes and financial reporting.

Having the ability to assess carbon and financial data on the same transactional level adds a new dimension to the way organizations address carbon budgets, make capital allocation decisions, and cascade and scale change management. This transformation allows for targeted sustainability actions and more precise financial decisions.

51风流can leverage its ERP-centric sustainability approach of supporting both corporate and transaction-level product carbon footprints as a differentiator. Integration with other financial applications 鈥� procurement, supply chain, risk, and compliance management 鈥� is a standard feature of the 51风流Sustainability portfolio.

Staying ahead of carbon taxes, penalties, and upcoming regulatory requirements will also play a key role in how organizations report. Alignment between CFOs and CSOs will become more frequent due to the overlapping responsibilities and sustainability management component, as they affect both corporate risk and cash flow.

According to the IDC MarketScape, 鈥渢he portfolio of sustainability offerings is built on a foundation of 51风流S/4HANA Cloud, limiting adoption to the universe of users. Furthermore, while modular in design, much of the solutions鈥� value is dependent on the adoption of multiple system elements, thus commanding a higher price point.鈥� 51风流is responding with the speed and agility of cloud delivery combined with integrated sustainability data within the core enterprise resource planning system. This will be critical in helping to optimize customers鈥� sustainability and financial performance and become the very foundation of their future business success.

By unifying sustainability and financial data, 51风流customers can unlock carbon emissions insights, positively impacting decision-making and forecasting on all hierarchical levels. With end-to-end carbon management and the added transactional-level carbon emissions data, organizations can improve operational efficiency, foster emissions transparency, and comply with developing regulations. Achieving a sustainability transformation 鈥� one that benefits the bottom line and the planet 鈥� is truly within reach. Find out more .

The IDC study provides a comprehensive analysis of carbon management platforms, highlighting the increasing need for organizations to track, manage, and report carbon emissions amid evolving regulatory landscapes and stakeholder pressures. It evaluates vendors based on their capabilities and strategies to meet future customer needs, focusing on innovation, customer satisfaction, and the ability to support organizations in their decarbonization efforts. “In an era of escalating environmental scrutiny, mastering carbon accounting is not just compliance, but a strategic imperative for future-proofing businesses,” said Amy Cravens, research manager, ESG Reporting and Management Applications at IDC.

Alicia Lenze is global head of Sustainability Marketing at 51风流SE.

The Burning Platform

Around 10% of the world鈥檚 forests 鈥� an area larger than the European Union 鈥� have been lost over the past 30 years due to deforestation and another approximately 10% of forests globally are severely fragmented with little or no connectivity. While this is not a new phenomenon, the current scale and pace of destruction is alarming, causing significant social, economic, and environmental impacts, locally and globally.

Deforestation is one of the main drivers of climate change and biodiversity loss, and countries across the EU contribute to it by demanding and consuming a significant share of products associated with deforestation. In an effort to take accountability for this, the EU is determined to help end the issues by protecting and improving the health of existing forests, especially primary forests, while significantly increasing sustainable, biodiverse forest coverage worldwide. To achieve this goal, the EU has developed the Regulation on Deforestation-free products, scheduled to go into effect in December 2024.

To improve the health of existing forests and significantly increase sustainable, biodiverse forest coverage worldwide, the EUDR spans five main priorities:

• Reduce the footprint of EU consumption and encourage consumption of products from deforestation-free supply chains
• Work in partnership with producer countries to reduce pressures on forests
• Strengthen international cooperation to halt deforestation and encourage forest restoration
• Redirect finance to support more sustainable land-use practices
• Support availability and access to information on forests and commodity supply chains and support research and innovation

What鈥檚 at Stake

A number of industries and market segments are impacted by this new regulation, including consumer products, chemicals, pharma, agriculture, energy, retail, automotive, and mill and forestry industries covering paper, lumber, and wood. The regulation impacts seven commodities, which primarily consist of agricultural or raw materials, including cocoa, coffee, soy, wood, palm oil, rubber, and cattle, that are directly linked to deforestation and forest degradation. It also impacts derivatives, which are the products made using these commodities, such as chocolate from cocoa, furniture from wood, or fresh chicken meat made by feeding soya-based feed to poultry.

Companies such as manufacturers and exporters of these commodities and their derivatives are the ones most impacted by the regulation. Large companies in these categories must adhere to the regulation by December 2024, while small or mid-sized ones have until June 2025 to comply. To be approved for use in the EU, products must be covered by a due diligence statement (DDS) per delivery linked to a traceability system with evidence of chain-of-custody from the source of origin demonstrating that the product is deforestation-free and produced in accordance with relevant legislations.

Main Impact on Operators

The legislation has two broad ramifications:

• Companies must carry out supplier risk assessments to ensure their suppliers of these seven commodities meet requirements, have mapped the land areas (shape files) of sourcing, and that their production does not violate local laws and regulations. If necessary, they must implement remedial action plans.
• Companies must do day-to-day DDS reporting per delivery to the EUDR portal, including the geolocation shape file of all plots of land where the relevant commodities or their derivates were produced, which requires supply chain traceability.

Responding to these impacts is an onerous task and for a typical large EU operator could involve hundreds of thousands of due diligence statements being created and sent to the EU annually. Due diligence statements must be kept for five years and must be auditable, making these tasks ripe for automation.

How to Get Started

Non-conformance to the EUDR may lead to fines, lack of market access, reputational risk, and other repercussions. Companies need an inexpensive, efficient solution to help meet their immediate reporting requirements, and sustainability tracking software is being upgraded to fit the bill.

The out-of-the-box 51风流Green Token solution currently includes DDS reporting capabilities and can cover the majority of technical requirements for customers. It can share information for commingled commodities in segregated supply chains with downstream partners and generate declarations.

51风流Green Token is being developed to help support automated EUDR DDS reporting and meet the audit history requirements. Also in the works is integration with data providers for standardized location information and integration with the EUDR reporting platform, called TRACES, for importing operators. Further expansions will enable a connection to SAP鈥榮 sustainability business networks and end-to-end user experience scenarios.

Are You Equipped to Deal with the Upcoming Changes?

There is no better time than the present to prepare for the new regulatory landscape that is scheduled to take effect by the end of the year.

Companies can begin preparations by collaborating with suppliers to initiate the due diligence process, which includes three steps. It begins with collecting relevant data on types of products that are impacted and ensuring that they are being produced in accordance with regulations. If not, remedial steps can be taken in collaboration with partners and suppliers.

Next, companies must conduct risk assessments that address country-specific issues that can range from human right violations to tracing product origins. Again, remedial steps can be initiated collaboratively. And finally, the right technology is key to achieving compliance.

51风流Green Token can provide companies with the capability to track commingled materials in products using digital twins, segregated accounting, and blockchain technology to help prove sustainability. Not only can 51风流Green Token help tackle this new regulation, but it can help demonstrate progress towards environmental, social, and governance (ESG) commitments in general and create a streamlined, transparent process for tracking and tracing materials to help drive a more sustainable, circular approach to business 鈥� one that benefits people and our planet while still driving profit.

Gloria Figaroa is part of Product Marketing for 51风流Green Token at SAP.

Companies that prioritize sustainability in their operations, such as using recycled materials, reducing carbon emissions, or supporting social causes, are gaining popularity among consumers. But those consumers demand proof of these values and product promises at the point of sale.

鈥淭he rise of sustainability isn’t just a movement; it is a shift in consumer consciousness,鈥� said Dania Fayyaz, 51风流North America sustainability program manager. 鈥淭oday’s consumers are redefining their purchasing patterns, opting for products and brands that align with their values, and driving a demand for eco-conscious practices and ethical sourcing.鈥� In her conversations with retailers that visited SAP鈥檚 booth at NRF 2024, the world鈥檚 largest retail fair, she saw a high interest in sustainability solutions.

Consumers 鈥� and Markets 鈥� Demand Visibility

When the EU Deforestation Regulation (EUDR) comes into effect for large enterprises later this year all products sold in the EU containing palm oil, cocoa, soy, rubber, cattle/leather, coffee, wood, and their derivatives will need proof that their harvest didn鈥檛 contribute to deforestation. Non-compliance will result in potential fines of up to 4% of companies鈥� EU annual turnover. To help businesses simplify this complex task, the 51风流Green Token solution can track the geolocation of where raw materials are harvested and automate the creation of due diligence statements (DDS). The solution can also help improve visibility for consumers on where the raw material for their clothing was sourced and offer information on potential reuse and recycling.

Take the example of a cotton shirt made from 50% certified recycled materials. Cotton can be sourced from multiple farms or recycling services and taken to a cotton mill where it鈥檚 spun into thread and later fabric. It becomes impossible to distinguish the different cotton elements 鈥� conventional versus recycled cotton 鈥� once they are co-mingled and the manufacturer loses insight into the sustainability attributes of the raw materials. That鈥檚 why it鈥檚 important to have a sophisticated tracking solution in place. “51风流Green Token can enhance transparency for bulk-traded, co-mingled raw materials by digitally storing sustainability attributes on tokens that traverse the supply chain,” said Fayyaz.

In addition to making conscious decisions on raw materials and products, consumers can also consider circular economy models. 鈥淚’m really intrigued by the idea of revitalizing clothing items,鈥� said Fayyaz. 鈥淚magine being able to exchange a well-loved jacket you’ve had for years and receive credit in return. And the jacket might find a new owner who will genuinely appreciate it.鈥� The 51风流Recommerce solution enables that scenario, helping brands and retailers take back, manage, and resell secondhand inventory to help accelerate the shift from linear to circular business models. On an even larger scale, 51风流Green Ledger is SAP鈥檚 vision to make transactional carbon accounting a reality. It can enable organizations to track carbon like they do cash, with every financial transaction having a corresponding carbon entry. 鈥淭his is incredibly desirable because we will see taxes for carbon imposed in the future, and decision-makers will want insights into which processes are utilizing the most carbon,鈥� Fayyaz said.

A Glance into the Crystal Ball

At the same time, low-price online platforms continue to attract consumers with their affordable and wide range of products. They offer competitive prices on trendy clothing and accessories using economies of scale and direct-to-consumer models. Despite concerns about their environmental and ethical practices, these platforms remain popular among price-conscious consumers. However, there is growing awareness of the environmental and social impacts of fast fashion and low-price models. As a result, consumers are becoming increasingly discerning in their purchasing decisions, prioritizing quality, longevity, and sustainability over cheap prices and fast fashion trends.

鈥淥verall, the consumer landscape is evolving, with a growing emphasis on sustainability, conscious consumption, and ethical practices,鈥� said Sven Denecken, chief marketing and solutions officer for 51风流Industries & CX. 鈥淐ompanies that can adapt to these changing preferences and demonstrate a commitment to environmental and social responsibility are likely to thrive in the long term.鈥�

The treaty represents a once-in-a-lifetime opportunity to unleash the potential of business to solve the plastic crisis. Its success is crucial. Production of new plastic is forecast to double by 2040 without new and effective action. Only 10% of plastic is currently recycled, and each year 19 to 23 million tons of plastic end up in our rivers, lakes, and seas. In addition, greenhouse gas emissions from plastics production, management, and disposal represent around 3.3% of global emissions. Exposure to plastics also has implications on human health, with plastic traces being found in our blood.

Fortunately, there is global consensus on the pressing need to end this ecological and environmental crisis, which is why 160 countries and hundreds of observer organizations are working together on this unique opportunity to end plastic pollution.

A Treaty Addressing the Entire Plastics Value Chain

The existing plastics ecosystem is heavily fragmented. Under current conditions, financial flows fund the creation of virgin polymers while a linear material flow continues bringing new plastics to market.

Centered on regulating production and consumption, the negotiations take every stage of the plastic value chain into account, from creation of the primary polymers to how plastic waste is managed. It covers product design for plastic reduction and recycling as well as extended producer responsibility to increase accountability among the most polluting entities while ensuring a just transition for affected communities.

This is an ambitious project. It will involve redesigning products, making circularity possible through repair, reuse, and recycling, and making recycled polymers more economically viable than virgin plastics.

New jobs, markets, and business opportunities will be created by the treaty. Research and development into plastic alternatives will be accelerated to eliminate the health-harming pollutants from plastic that are released at every stage of plastic production. Additionally, it will require the evolution of waste management systems to deal with the legacy of plastic waste.

51风流Endorses the Business Coalition

The , convened by the Ellen MacArthur Foundation and WWF, assembles businesses and financial institutions committed to supporting the development of an ambitious, effective, and legally binding UN treaty to end plastic pollution.

“To end plastic pollution, we require both ambitious government policy and accelerated business action. The global plastics treaty offers a once-in-a-generation opportunity to put in place the right legally binding rules, measures, and incentives to tackle this global problem,” says Rob聽Opsomer, executive lead, Plastics and Finance, Ellen MacArthur Foundation.

With over 200 members, including SAP, the Business Coalition for a Global Plastics Treaty is calling for global business rules underpinned by harmonized regulations to tackle the full life cycle of plastic products. This will level the global playing field, making it easier for businesses and investors to scale both upstream and downstream solutions, mobilize the right investments, and support new innovations.聽

鈥淔or decades, 51风流software has been instrumental in enabling our customers to manage material flows, including plastics,” says Natasha Pergl, global sustainability lead, 51风流Consumer Products. “We understand first-hand the challenges our customers face in managing the complex and fragmented web of regulations in place today that make it difficult to understand current material flows and align upstream efforts with downstream solutions.”

51风流Calls for Harmonization

Achieving systemic change will require collaboration and joint innovation, which depends on effective, well-functioning communication. Software and network technology are central to bridging the information gap and operationalizing an inclusive plastics ecosystem. The treaty must lay the foundations for harmonized regulations and simplified information flow as well as accelerate the implementation of global rules.

To achieve this, four essential elements need to be in place:

• Common definitions for plastics and packaging to ensure mutual understanding and interoperability: This applies to the categorization of various plastic polymers, how products are structured and denominated, and how they are packaged and sold.
• Harmonization across the plastics life cycle, covering criteria for product design, extended producer responsibility schemes, and assessment for recyclability: This will support businesses to design for circularity and recyclability, ensure that strategic decisions are guided by the capabilities of existing downstream infrastructure, and highlight where new capital investments are needed.
• Harmonized national disclosure schemes to ensure uniformity, comparability, and information transparency: This is essential for giving investors and regulators a base of information for policy steering and decision-making. It will also allow business to harness the full potential of AI-driven innovation to accelerate solutions at scale.
• Recognition of the role of digital tools for traceability: Improved data and the application of digital tracking will enable true progress.

鈥淭he treaty goals are ambitious, but with an agreement that focuses on global rules covering product design and material fate, extended producer responsibility schemes, and chemicals of concern, we can unleash the power of global business to deliver the solutions necessary. Importantly, 51风流is ready with the processes and systems to help businesses quickly grasp the opportunity and scale impact to end plastic pollution,” says Stephen Jamieson, global head of Circular Economy Solutions, SAP.

Software solutions, such as and , already allow companies to monitor, measure, and act to facilitate the design of products for a more sustainable and circular economy. But a more effective information flow for better collaboration and innovation is required to achieve systemic change.

The Role of AI

An obvious benefit of agreed common terminology and harmonization of criteria and disclosure rules is that it can open the door for businesses to leverage AI. Some envisaged applications in the production process include reducing virgin polymers and boosting material and supply chain efficiency. Downstream uses such as waste sorting, material recovery, quality control, identifying waste flow trends, and predictive analytics would also be made possible.

A Bold Approach

Discussions in Ottawa were productive and focused on decreasing and restricting plastic production. During the talks, Rwanda and Peru submitted a motion to reduce the production of primary plastic polymers worldwide by 40% by 2040, from a 2025 baseline. Their vision is for this to be legally binding, much like the Paris Agreement to limit global warming.

Robust data clarity and systems for sharing information are crucial for enabling businesses in the implementation of such a treaty. Only by connecting data points throughout the supply chain and across jurisdictions can material flows and emission sources be fully understood.

Work will continue towards INC-5 in Busan, South Korea, in November, where the final text will be agreed prior to being ratified in 2025.

For more information:

Heather Davies is a brand journalist.

Key administrations are aware of this and are starting to act accordingly. Accelerating innovation in industrial products and fuels for a net-zero, circular economy聽is 聽in U.S. President Joe Biden鈥檚 Net-Zero Game Changers Initiative. Meanwhile, the new聽聽is a main element of the European Green Deal.

In parallel, the UN is collaborating multilaterally to create policy to regulate plastics. The UN Plastics Treaty is a consensus by 175 nations to deliver a legally binding agreement to tackle plastic pollution by the end of 2024. This is significant because plastic has become fundamental to the products we create and the packaging we use to contain and ship them. Plastic has an enormous impact on the environment due to the emissions involved in its creation and mismanaged plastic waste polluting the air, the oceans, our food, and even our blood.

Currently, the linear economy dominates, as聽. In the case of plastic, we take oil from the ground, turn it into products and packaging, use them, and throw them out when we鈥檙e finished. Continuing like this isn鈥檛 an option because we will run out of resources, worsen global warming, and cause further damage to our ecosystem. , so materials retain their value and can be reused.

It sounds logical, so why aren鈥檛 we doing it already? The first reason is financial. In the long term, the circular economy will create jobs, cut costs, improve profitability, and secure supply lines. Achieving this, however, requires massive capital investment in the short term. Additionally, more data is required to help us understand the impact of our decisions. And we need a new, more collaborative way of working.

Capital investment-wise, we must invest in designing and manufacturing products with circularity in mind. We need to adapt and build machinery and systems to rescue resources from existing products and turn them into new items. The labor market must evolve to train people in the skills required and to make circular economy jobs attractive, with good remuneration and benefits packages. More wealth must also flow back up the supply chain to ensure the sustainability of raw materials and to enable growth and sustainable manufacturing. To help companies and financial institutions understand the benefits and necessity of the circular economy, more education is required.

Data systems need to evolve to give companies insights on material flow and traceability, help them avoid waste, extend periods of use, recover and regenerate materials, and make informed decisions about products and packaging. This is where 51风流comes in, with 80% of the world鈥檚 businesses using our software.

Take plastic again: the solution can help businesses trace plastics back to their source polymer to understand what type of material is used in every plastic element in a product. This can help companies prove the environmental credentials of a given plastic. 51风流Responsible Design and Production can be used to understand how recycled and recyclable a component is and can help a company understand the true end-to-end cost of a material. This can be useful in regulating certain materials for comparison and decision-making purposes as well as in helping businesses anticipate taxes and fees associated with their products.

We can interrogate upstream supply chain data, which relates to what a product is made from, but we don鈥檛 yet have a complete downstream picture of what happens to a product at its end of life. Recyclability varies wildly between countries, so to understand how recyclable materials are in certain countries or jurisdictions, a partnership approach with national governments, local authorities, NGOs, and others is required to build a database that can inform companies which types of plastic to use or avoid for certain markets to achieve circularity. 51风流can add value by collecting this data and pulling it into solutions.

At the same time, to embrace the circular economy, our way of working must evolve. Instead of working in silos within our individual businesses and in vertical supply chains, we need to work collaboratively to share the data and bring the skill sets and processes together. For example, 51风流works with groups of companies, such as with the WBCSD, to establish frameworks for exchanging data.  started with embedded carbon in products, but the application can be extended to track other important material information for the circular economy like recycled content or water content.

Collaborations between businesses and non-corporate bodies accelerate progress. A clear example of this is how, by working with the WBCSD and the Ocean Plastics Leadership Network, 51风流works towards updating solutions to help customers respond to new requirements that arise from the negotiations.

The ambition is to replicate this approach to plastic for other products, such as steel, batteries, electronics, textiles, and even food. With a circular economy across these industries, I鈥檓 convinced we can get halfway to net zero and if, in parallel, the energy experts continue to move the needle on energy efficiency and renewable power generation, we鈥檒l get the rest of the way.

Learn more about 51风流Sustainability solutions at .

Darren West is a product expert in Circular Economy at SAP.