Leading enterprise resource planning (ERP) software company SAP announced today the general availability of SAP Green Ledger, a new carbon accounting solution aimed at enabling companies to track and report the carbon footprint of their products, services and business units.

Initially unveiled in 2023, and forming part of SAP Sustainability solutions, the new solution provides a carbon accounting system that directly integrates with a company’s financial data, according to SAP, by allocating emissions to economic activities and transactions captured by SAP’s ERP solutions.

According to SAP, the new carbon accounting solution comes “as decarbonization becomes a legal and market imperative,” with the solution aimed at helping companies to address regulatory requirements, including regulations and sustainability reporting frameworks such as the EU CSRD and the ISSB standards, as well as the EU Taxonomy and CBAM.

Key features of the SAP Green Ledger include the ability to forecast, budget, and contextualize carbon and financial data at a transactional level, analyze Scope 1, 2 and 3 aligned with financial data, trace and audit carbon footprints along the value chain, apply standardized accounting practices to carbon accounting, and address CSRD, ISSB, and other regulatory requirements.

Dominik Asam, CFO and member of the Executive Board of SAP SE, said:

“Enormous 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. Only by moving from averages to actuals – audited at reasonable assurance – can freeriding and greenwashing be avoided, thereby protecting such valuable investment and our planet.”

SAP added that the new carbon accounting solution was developed with support from companies including Accenture, Deloitte, EY and Tata Consulting Services (TCS), as well as with Covestro, which is currently evaluating the solution in an early pilot phase.