Today, companies face increasing pressure to report their sustainability practices, particularly greenhouse gas emissions, due to new regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). Th
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Today, companies face increasing pressure to report their sustainability practices, particularly greenhouse gas emissions, due to new regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). This thesis explores how Enterprise Resource Planning (ERP) systems, specifically SAP, can effectively support organizations in complying with emissions reporting under ESRS E1. An exploratory qualitative approach combining desk research, a detailed case analysis of SAP functionalities, and expert interviews was undertaken to investigate reporting requirements, data integration challenges, and best practices.
The research identified critical emission metrics required by ESRS E1 and evaluated SAP's capability to manage these metrics through its Sustainability Control Tower. Key challenges were found in the accurate and complete collection of emission data, particularly Scope 3 emissions. Furthermore, organizational and strategic obstacles, such as unclear responsibilities and viewing emissions reporting purely as compliance rather than a strategic advantage, were highlighted.
To address these challenges, the study proposes a structured 12-step roadmap, emphasizing data integration, clear internal governance, and strategic alignment of emissions reporting with broader business objectives. The roadmap facilitates accurate, compliant reporting while enhancing strategic decision-making capabilities. The thesis concludes that, although further validation of this roadmap in practice is necessary, ERP systems like SAP, when properly integrated, provide robust tools for effective emissions reporting and strategic sustainability management.