Over the last months, the drumbeat of urgency for climate action has been growing ever louder. Fittingly, this year’s New York Climate Week theme was “It’s time” — a clarion call for immediate and focused action as the climate crisis intensifies.
Two weeks ago, SAP 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, SAP reaffirmed its commitment to enabling a more sustainable world through an ERP-centric, cloud-based, AI-enabled approach.
At Climate Week, SAP’s focus on AI, precise carbon accounting, and expanded commitments to nature conservation highlighted its proactive approach to addressing the climate crisis.
AI’s Role in Advancing Sustainability
A major topic during New York Climate Week was the role of artificial intelligence in advancing sustainability. 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, SAP shared two innovative AI-driven use cases: SAP 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 SAP 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’s 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, SAP will make the SAP 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, SAP 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’s goal of achieving net-zero emissions by 2030, 20 years ahead of the original timeline.
SAP 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, SAP 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, SAP 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 SAP Sustainability executives and customer Ambipar at Climate Week 2024 and listen to our post-Climate Week podcast on how data and tech drive corporate sustainability.
Monica Molesag is sustainability communications lead at SAP.