SAP sustainability: three trends you can’t ignore
Sustainability is no longer just a question of ethics; it has now become a strategic objective at any company. With the latest regulatory changes, organisations have been forced to optimise their ESG data collection and report-creation processes. However, there’s more to sustainability information than simply complying with legislative requirements, as it can also be a valuable tool for improving financial results and competitiveness.
All of this was discussed in detail on a recent episode of the SAP Enterprise Tech Podcast. In it, Ricardo Langa, NTT DATA SAP Global Co-lead for the LEAP Program, and José Ángel Mateo, Digital Finance EPM & Analytics Advisory Lead at NTT DATA, talk about the latest trends in sustainability and the solutions that NTT DATA has developed for the SAP environment to address these challenges. In this article, we’ll explain some LEAP Program highlights.
To listen to the podcast, click here.
New regulatory frameworks
The first trend analysed in the podcast is probably the most important: the new regulatory requirements that seek to standardise the sustainability information that companies are required to declare. This trend is observable across geographic regions, in Europe in the form of the Corporate Sustainability Reporting Directive (CSRD). The enactment of legislation of this type at the global level is establishing standard criteria for the disparate reports, frameworks and criteria used by companies to disclose sustainability data up until now.
At NTT DATA, we have developed a gap analysis tool that compares sustainability information with the data required by the new European frameworks. It makes it possible to identify where key information can be found and to select the material KPIs that need to be included in reports (which must follow the principle of the evaluation of double materiality). Moreover, it’s possible to add other frameworks or voluntary standards, such as those of CPD or Ecovadis, for example. Finally, beyond simplifying the report creation process, this tool also automatically collects key information for audits.
Digitalisation and automation of sustainability indicators
The second observable trend in this context is digitalisation. When companies were first faced with the obligation of reporting their ESG indicators, many of them realised that they did not have standardised processes for collecting and summarising this data. For example, this was the case in Spain in 2018 at the time when national-level legislation enacting the European directive on the disclosure of non-financial information came into force, requiring large companies to submit an annual report. The data needed to produce these obligatory reports was distributed across a number of different systems and departments, and initially had to be collected manually. To overcome this problem, organisations have started to implement digitalisation processes that facilitate report creation and eliminate the risk of human errors.
To contribute to the digitalisation and automation of sustainability data, NTT DATA has developed the Earth Insight tool. This platform offers infrastructure based on a centralised data lake that uses artificial intelligence to capture ESG data. It has been developed for the SAP environment and makes it possible to calculate the main indicators required by the CSRD, streamlining the report creation process.
ESG analytics
While sustainability reports may be perceived as a burdensome obligation, the data that they compile can be a valuable strategic resource. However, in order for this to be the case, companies need the analytics capabilities required to identify areas for improvement and to align ESG objectives with financial objectives. This is the third trend in this sphere: organisations are starting to use SAP tools to collect and interpret their ESG indicators for strategic purposes.
In this sense, at NTT DATA we also offer the Digital Passport tool, which is integrated into the Earth Insight platform mentioned above. It makes it possible to calculate the footprint of every element that goes through a company, from processes or activities to final products. Analysing this information assists in decision-making to reduce the environmental impact of a company in all operational stages.
Why NTT DATA?
At NTT DATA we can help you design your company’s ESG strategy and make the most of your SAP solution to create reports that comply with regulatory obligations. As a global leader in innovation and thanks to our experience with projects across all sectors and geographic regions, we contribute technical and functional knowledge to guarantee a design in line with the latest technological advancements. NTT DATA is not just an IT services provider; consider us a strategic partner that shares your goals and will accompany you along the path to ESG excellence at your organisation. Contact us and discover how far you can go.
