Green Ledger and the future of sustainable finance: Why it matters now

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There’s been a noticeable shift in conversations happening across finance and IT teams in the SAP ecosystem. Where ESG used to sit on the periphery, being handled outside finance teams, it’s now moving much closer to the operational core.

One product gaining significant traction—especially in the lead-up to the SAP for Central Finance and Performance Management Conference 2025 is SAP Green Ledger. It’s not just another reporting tool; it’s about embedding sustainability into the financial backbone of the business. And it’s starting to matter a lot more to senior finance and technology leaders.

Embedding Carbon Accounting into finance systems

SAP Green Ledger represents a major evolution in how environmental data is treated. Traditionally, carbon accounting has lived in spreadsheets or third-party tools, disconnected from financial decision-making. SAP Green Ledger changes that by enabling transaction-level carbon accounting, treating emissions data with the same rigor and traceability as financial data.

This means organisations can:
• Track the carbon impact of individual business transactions
• Allocate emissions by cost centre, product line, or region
• Report on environmental performance with audit-ready accuracy

As Nick Vairea, SAP, explains:
“Carbon accounting is essential for modern businesses to accurately measure and reduce their emissions. Yet, only 10% of companies track emissions across all scopes, leaving a major gap in climate accountability. With regulations like the EU Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM) introducing stricter carbon disclosure and pricing requirements, companies must act fast. SAP’s sustainability solutions—including the SAP Green Ledger—embed carbon data into core financial systems, enabling audit-ready reporting, product-level footprinting, and compliance with evolving standards. By linking emissions directly to financial transactions, SAP empowers businesses to make informed decisions, reduce risk, and align environmental impact with strategic goals. Ultimately, it’s not just about business—it’s about protecting our planet for future generations.”

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Where Central Finance comes in

If you’re already working with SAP Central Finance (CFIN), you’ll know it’s designed to harmonise financial data across complex, global landscapes. Its real-time centralisation capabilities make it a natural fit for Green Ledger.
Green Ledger extends the value of Central Finance by adding an environmental layer to financial data. This enables a “dual ledger” approach, where carbon and cost sit side by side in the same process.

This opens huge potential:
• Real-time insight into the environmental impact of business operations
• More accurate and granular ESG reporting
• A stronger foundation for decarbonisation strategies

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Why now?

The urgency isn’t just regulatory—though frameworks like EU CSRD, SEC climate disclosures, Carbon Border Adjustment Mechanism (CBAM)and ISSB standards are accelerating adoption. It’s also coming from within businesses. Boards, investors, and customers increasingly expect transparency, and CFOs are being asked to quantify sustainability performance alongside financial results.
SAP Green Ledger is still relatively new, but it’s shaping up to be a key part of finance’s evolution—from focusing solely on financial performance to taking responsibility for environmental and social impact.

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Understanding more

This is why SAP Green Ledger will be a major focus at this year’s SAP for Central Finance and Performance Management Conference, taking place September 16–17, 2025. The agenda includes a dedicated session by SAP’s Jannik Halic on Green Ledger, alongside demos and case studies from companies like BMW, ExxonMobil, and IKEA.

Whether you’re actively rolling out Central Finance or still exploring the move to S/4HANA, understanding how carbon data can flow through your financial systems is quickly becoming part of the conversation.
We’ll be bringing together SAP experts, implementation partners, and customers who are already thinking about what’s next and how to get there.