SAP keynote: Sustainability LIVE New York 2024

Sustainability and finance

Pedro further emphasized that sustainability must be treated with the same importance as finance due to increasing pressure from CEOs to commit to renewal and decarbonization. He further explained how sustainability needs to be integrated into business operations to advance internal goals and external regulations, such as the increasing pressure on companies to disclose their carbon emissions in addition to their financial information.

“The mindset shift is about treating sustainability with the same care as financial management,” explained Pedro.

Pedro used the example of SAP’s “green ledger” to highlight how the organization enables companies to track both their financial transactions and their carbon emissions, and to monitor their financial performance and environmental impact.

The path to real-time sustainability

Pedro pointed out that companies previously viewed sustainability as a distant concern, but stressed the importance of treating this issue as a current issue to be prepared for now. He further highlighted how organizations risk suffering further consequences if they fail to adapt to the changing sustainability landscape.

He further emphasized the urgency with which companies must begin these preparations and warned organizations of the potential financial impact they could face if they avoid implementing these changes. Pedro gave the example of transport company Merck, which has to pay “millions of dollars” due to carbon regulations in the EU that affect its transport activities.

Pedro began to delve into a topic that is becoming increasingly important in many industries: AI. He began to explain how he believed the future of sustainability would be driven by data, with technologies such as AI allowing companies to predict their emissions throughout their supply chain. In turn, he discussed how this could prepare companies to manage their carbon footprint with the same rigor and efficiency with which they handle their finances.

“AI can automate the allocation of emissions factors and produce ESG reports with the same precision and reliability as financial accounting systems,” emphasized Pedro.

Diploma

Overall, Pedro emphasized the urgency for organizations to integrate sustainability into their operations to thrive in the future of our evolving industry. He explained how companies can navigate the complexities of ESG regulation by ensuring that sustainability is incorporated into existing digital transformation efforts, that data flow is automated and that technology is used to meet changing needs.

Pedro left the audience with a powerful thought to ponder: “In a world full of answers and solutions, the true catalyst for innovation and change lies not in what we already know, but in our courage to ask the right questions.”