SAP integrates advanced AI into its platforms for ESG compliance, streamlined carbon footprint tracking and real-time adaptation to evolving regulations
Global technology firms face a daunting task in the quest for sustainability – and SAP is tackling this challenge with AI.
By integrating AI into its sustainability initiatives, SAP is changing how sustainability is managed through its AI-enhanced IT systems across the network, impacting 84% of total global commerce driven by its customers.
The company challenges its systems with AI capabilities to meet sustainability goals and disseminate valuable insights.
Matthias Medert, Global Head of Sustainability at SAP
“Sustainability is an essential element of SAP’s purpose to help the world run better and improve people’s lives,” says Matthias Medert, SAP’s Global Head of Sustainability.
“As both an exemplar and enabler, we aim to make our targets and purpose a reality. By testing our AI capabilities to the limit, we share the lessons learned along the way with the product development teams to continuously improve the SAP Sustainability portfolio.”
Sustainability data in the AI realm
For SAP and its AI-enabled customers, sustainability hurdles encompass data collection, management and compliance with varied regulations.
The company handles vast data sets, including ESG metrics, material flows and carbon footprints – putting AI-powered IT systems through rigorous demands.
Constantly evolving regulations like the European Commission’s Omnibus push businesses to use AI for quick adaptation in reporting compliance.
Sophia Leonora Mendelsohn, Chief Sustainability and Commercial Officer at SAP
In a LinkedIn post, Sophia Leonora Mendelsohn, SAP’s Chief Sustainability and Commercial Officer, mentioned the strategic decision to test their AI systems to “keep pace with regulations without losing all our bandwidth to it.”
This means that lacking comprehensive data insight can hinder AI-enhanced decision-making in sustainability, indicating a necessity for robust AI solutions.
AI integration in SAP’s sustainability framework
The AI integration within SAP’s core business platforms, such as SAP S/4HANA Cloud and SAP Business Technology Platform (SAP BTP), solidifies its sustainability solutions.
“This assures a solid AI data foundation and seamless integration from diverse business functions including procurement, finance, supply chain and product design,” says Matthias.
Christopher Sessar, Chief Accounting Officer at SAP
Focussed tools like SAP Sustainability Control Tower and SAP Green Ledger elevate sustainable decision-making. Dr. Christopher Sessar, SAP’s Chief Accounting Officer, adds: “Implementing SAP Sustainability Control Tower and SAP Green Ledger across our ecosystem, we lift sustainability management to the rigor of financial reporting.”“These tools streamline and automate our ESG compliance, generating actionable AI insights that guide strategic decisions, fast-forwarding our journey to measurable sustainable outcomes and enduring environmental value creation.”.
Insights from AI-driven data
Matthias also emphasises early AI-driven lessons, highlighting the need for consistent emissions data collection, expanding beyond carbon footprint analysis for a holistic approach.
The IT architecture is organised into AI-enabled layers for data collection from various sources, processing and standardising before delivering insights through planning and reporting.
Reflecting on LinkedIn, Sophia says: “Sustainability data is business data. The companies that treat it that way will be able to demonstrate real results in regulated and competitive markets.”
This article is from AI Magazine