Use ESG reporting as an opportunity

Companies are strengthening their market position with the right solutions

Sustainability is a must for companies today – and a strategic advantage. The solutions from the SAP Sustainability Portfolio offer powerful tools to reliably comply with legal requirements, for example with regard to mandatory ESG reporting, and to increase competitiveness.

The European Union has set itself the goal of becoming climate neutral by 2025. As a result, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires more and more companies to disclose environmental, social, and governance (ESG) issues.

This means that many companies are faced with new, complex tasks: They need to calculate the CO₂ footprint of their products and business activities, produce compliant reports, and decarbonize their value chains over the long term with emissions management.

ESG reporting requires collecting and consolidating a variety of data from different sources, so organizations need timely structures and methods to efficiently record and analyze the right data. Those who fail to comply with their reporting obligations risk fines and damage to their image.

ESG reporting and emissions transparency provide benefits

The need for action is therefore great, but the effort is worthwhile. Establishing systematic emissions management and creating ESG transparency produces numerous competitive advantages for companies. This added value can be divided into different areas:

Informative added value

• Exploit efficiency potential: A standardized approach and automation save time and effort in sustainability reporting.
• Reduce ESG risks: The disclosure of ESG data enables identification and counteracting potential sustainability risks.
• Discover innovation potential: Transparent sustainability reporting and the associated exchange of information with partners promote the development and implementation of new ideas.

Communicative added value

• Score long-term points with customers: Transparent and standardized reporting makes corporate sustainability efforts visible and improves customer loyalty and brand image.
• Emphasize attractiveness as a supplier: Companies are increasingly looking for sustainable business partners. Anyone who discloses their ESG data has a good hand when placing an order.
• Gain new talented employees: Transparent sustainability reporting provides an important asset in the fight for the most talented employees. Sustainability plays a crucial role in the choice of employer for young professionals.

Financial added value

• Improve access to promotional loans: The state supports ecological transformation through numerous funding opportunities. Transparent sustainability reporting facilitates access to promotional loans and speeds up approval processes.
• Increase attractiveness in capital markets: Investors are placing greater emphasis on responsible corporate governance. Transparent ESG reporting can help build confidence in the capital market.
• Efficient handling of different information needs: Companies that have integrated sustainability into their strategy can provide more targeted information faster. ESG transparency also promotes the development of innovative business models, thereby opening up competitive advantages.

Score lasting points with SAP Sustainability Solutions

Transparent data and processes are required to make a lasting business impact. SAP’s modular sustainability portfolio, which includes the solutions SAP Sustainability Control Tower (SAP SCT) and SAP Sustainability Footprint Management (SAP SFM), covers all requirements relating to ESG reporting and emissions management.

SAP Sustainability Control Tower is a cloud solution for comprehensive ESG reporting and serves as an all-round tool for creating ESG transparency. It automates the aggregation of environmental, social, and governance data from multiple sources, making it easier to analyze and visualize reporting-relevant information. In addition, it offers standard templates, for example for materiality assessments and the use of metrics for sustainability reporting in accordance with the European Sustainability Reporting Standards (ESRS).

SAP Sustainability Footprint Management, on the other hand, enables companies to calculate and analyze the CO₂footprint of products, company activities, and transports. This makes it easy to track and manage environmental impacts along the supply chain. Thanks to integration with SAP S/4HANA, current business data can be used in real time. Enriched with CO₂ information, this data reveals the environmental impact of corporate activities and makes it possible to propose improvements. valantic’s SAP Sustainability Team can help you with design and implementation, ensuring that you will profit in the long term.