SAP and Sustainability – ESG Reporting Solutions
Business is no longer only about the financial aspects. Environment, Social and Governance (ESG) have become integral KPIs to a business’s performance. We are also moving towards a world where ESG will not only make economic and operational sense, but it will be vital to “license to operate” for all types of businesses. As a company, it is important to have a grasp on these aspects of the business to stay relevant and ahead of the competition. Sustainability and ESG Reporting solutions from SAP enable organizations to this effect. In this blog, we will discuss how SAP solutions for ESG connect data for a holistic view of sustainability to help better decision-making.
What is ESG Reporting?
ESG reporting involves the disclosure of data about the environmental, social and governance activities of an organization. It is aimed at bringing about greater transparency for the investors and encouraging sustainability in all aspects of a business. ESG scores have become a priority for investors today, with leading organizations like Bloomberg and DowJones providing ESG scores.
Environmental impact by reducing net emissions, improving lives inside and outside the company and good governance for keeping investments sustainable are the main focus of ESG reporting. Needless to say, this activity requires handling large amounts of data, that many companies were not compiling before. Solutions like SAP ESG reporting help in optimizing and streamlining these processes.
Why SAP ESG Reporting
SAP ESG considers all organizational activities holistically to steer the company in the right direction, in line with ESG goals. The ability to connect financial and non-financial aspects of the business adds huge value to the company’s performance and helps in moving towards a more sustainable future. Here are the key benefits delivered by SAP ESG Reporting.
Visibility
Visibility into the consequences of business actions is possible through embedded and validated data. SAP solutions add ESG factors to business intelligence and enable real-time insights across all lines of business. As regulations evolve, there is a need for BI to keep up with them to stay compliant. Transparency in business, brought about by ESG reporting also helps in meeting stakeholder expectations by adopting a more inclusive, environmentally responsible and sustainable approach toward business. SAP offers cloud-based solutions that make large-scale transformations, based on sustainable choices, easier, faster and more effective.
Real-time Calculation and Reporting
SAP ESG reporting takes care of end-to-end sustainability management with solutions that capture, report and enable you to act on insights. With real-time reporting and simulations, that utilize data from multiple disparate sources, SAP Analytics Cloud supports ESG reporting and helps you understand and navigate data.
Improved Decision-Making and Profitability
A sustainable enterprise can measure the impacts of business processes, whether positive or negative. This enables holistic success through strategic decision-making. SAP helps businesses report in line with multiple standards like WEF, GRI, SASB, IBC, etc. Moreover, it is possible to source and integrate data into a central sustainability warehouse that provides a multi-cloud solution for data-driven sustainable enterprises. Sustainable activities create an impact on people, the planet and profits. ESG reporting is essential to profitability as sustainable and conscious choices directly result in more efficient processes and reduced costs that contribute to a more profitable business.
Enabling Circular Economy
SAP ESG reporting revolutionizes the entire supply chain. From sustainable product design to sourcing, material traceability and compliance, each aspect is considered to help in building regenerative businesses. Ethical sourcing, optimized production, waste minimization, supply chain visibility, synchronized planning and risk mitigation through compliance are some of the functions that SAP solutions transform.
Conclusion
SAP ESG reporting encourages the adoption of ESG principles and strategies in all facets of a business. It helps in including internal as well as external stakeholders to participate in the creation of sustainable businesses that generate profit while keeping people and the planet at the center of their activities. Today, ESG is an essential part of business that ensures compliance, business continuity, transparency and efficiency with the help of cutting-edge technologies like AI and Blockchain.
ComTEK enables you to leverage the advanced features of SAP ESG reporting to build a responsible and sustainable business.