Driving Sustainability with AI
Artificial Intelligence has already proven its ability to reshape industries, and now it is becoming a
critical enabler of corporate sustainability. Research suggests that AI could help reduce global greenhouse gas emissions by 5% to 10% by 2030. According to KPMG, more than half of sustainability executives plan to expand their use of AI in the next three years to enhance ESG strategies.
Despite this potential, only 14% of companies currently deploy AI to reduce carbon emissions. Businesses that move early can secure a
competitive edge that extends far beyond compliance. SAP’s ERP-embedded approach demonstrates how AI, combined with data and automation, can help organizations achieve measurable sustainability outcomes while ensuring resilience in an evolving climate landscape.
Ethical and Responsible AI Deployment
Scaling AI is not without challenges. Increased energy and water usage must be factored into return-on-investment conversations. With strong governance and renewable energy backing, however, AI can reduce more emissions than it generates. SAP already powers its data centers with
100% renewable energy and includes third-party AI emissions within its Scope 3 reporting.
Used responsibly, AI can accelerate business transformation while ensuring transparency and ethical impact.
Eight Ways AI Powers Sustainable Advantage
1. Compliance Information Processing
SAP S/4HANA for product compliance uses AI to extract compliance data from updated documents and map it to regulatory requirements. This reduces costs, minimizes fines, and cuts task times from
50 minutes to just five, delivering up to a 90% reduction in processing costs.
2. Declaration Image Analysis
With SAP Green Token, AI can read sustainability declarations in any format, extract critical data, and prepare it for audits. Review times drop from five minutes to
20 seconds, while eliminating human error risks.
3. Permit Management
AI-enabled permit management in SAP S/4HANA Cloud Public Edition scans hundreds of pages in seconds, identifies requirements, and proposes tasks. Companies can cut review timelines, reduce consultant dependence, and avoid up to
80% of environmental penalties.
4. Emission Factor Mapping
SAP Sustainability Footprint Management automatically assigns emission factors to purchased goods. Whether drawing from supplier data or estimating from ERP sources, this automation reduces a 10-minute manual task to
two minutes while ensuring audit readiness.
5. Report Generation
The SAP Sustainability Control Tower generates ESG reports that comply with internal and external standards such as CSRD. Data collection drops from 30 minutes to
30 seconds, and report drafting from 30 hours to
five hours, all while reducing confusion and manual errors.
6. Carbon Emissions Analysis
Joule, SAP’s AI copilot, integrates financial and carbon data to produce actionable insights, create carbon intensity KPIs, and serve as a
virtual sustainability consultant for corporate strategy.
7. Safety Observation Reporting
By allowing employees to input hazards in natural language, AI can automatically generate formal incident reports. This boosts reporting participation, identifies risks earlier, and strengthens workplace safety culture.
8. Safety Instruction Generation
AI in SAP S/4HANA Cloud Public Edition generates and updates safety instructions based on risk assessments and hazard analyses. This reduces manual workload while ensuring instructions remain accurate and relevant.
AI as a Catalyst for Business Transformation
From compliance automation to emissions reduction,
AI-enabled solutions can turn sustainability from an obligation into a strategic advantage. By embedding AI across ERP systems, businesses can enhance efficiency, reduce risks, and accelerate progress toward climate goals while building long-term competitiveness.
