Innovation News Guide: Advancing the Autonomous Enterprise
AI innovation provides role-specific support, automating workflows to boost business productivity
AI innovation provides role-specific support, automating workflows to boost business productivity
Enterprises don’t need to be rebuilt around AI. AI needs to be thoughtfully brought into the enterprise—in a way that respects what is already working and strengthens it.
SAP and Anthropic today announced plans to expand their collaboration to deliver advanced AI solutions to enterprise customers, making Claude, Anthropic’s AI model, a primary reasoning and agentic capability embedded across SAP’s AI-enabled solution portfolio, powered by Joule and Joule agents.
Unveiled today at SAP Sapphire, Anthropic and SAP will collaborate to embed Claude’s agentic capabilities into the newly announced SAP Business AI Platform to advance SAP’s vision of the Autonomous Enterprise in the agentic AI era.
The collaboration builds on SAP’s more than 50-years of business application know-how across processes, data, and governance. This complements SAP’s open ecosystem approach to supporting any model and provides greater customer choice and flexibility to meet evolving AI requirements.
Connecting directly to SAP Business AI Platform, Claude will empower agents to carry out tasks—from closing the books at quarter-end and answering complex employee leave questions to rerouting supplier orders mid-shipment—coordinating across SAP S/4HANA, SAP SuccessFactors and SAP Ariba solutions, and other systems via MCP.
“Our open platform means we’re tightly integrated with world-leading companies across our portfolio. Together with Anthropic, we’re building something uniquely valuable for our customers,” said Christian Klein, CEO of SAP SE. “The Autonomous Enterprise requires AI that understands business context and acts within the controls organizations depend on, and our partnership with Claude plays a key role in this.”
“We built Claude to support the work that helps businesses run: closing the books, rerouting delayed orders, or approving expenses, to name a few. With Claude on SAP Business AI Platform, that work happens inside the systems enterprises have already invested in, with the trust and governance SAP customers rely on,” Daniela Amodei, co-founder and president of Anthropic, said.
Joule from SAP is an AI-enabled business assistant that helps teams make faster, smarter decisions by embedding contextual, more secure AI directly into SAP and non-SAP business workflows. Now, SAP is expanding Claude’s capabilities to Joule with plans to integrate Anthropic’s advanced agentic AI capabilities across the newly announced SAP Business AI Platform.
With a deeper use of Claude and access to Anthropic’s frontier models, SAP customers can expect additional capabilities, such as:
As AI moves from advising to acting, trust is critical, especially in the enterprise and in regulated industries. Anthropic is bringing safe, reliable AI into processes that enterprises already trust. When AI adjusts an order, triggers a workflow, or makes a recommendation inside an SAP customer’s environment, it does so within the same controls that govern human decisions: the approvals, policies, and compliance frameworks already wired into SAP solutions.
Together, Anthropic and SAP plan on bringing this model to life by combining Claude with SAP’s depth and scale, helping organizations move from experimentation into the core of how their organizations operate.
Philipp Herzig is CTO and a member of the Extended Board of SAP SE.
AI agents are no longer confined to demos and copilots. They are beginning to act inside real enterprise systems: executing tasks, invoking tools, and operating continuously across business processes.
For SAP customers, this shift promises step-change productivity. But it also raises a hard requirement: Enterprise AI agents must be safe, governable, and auditable by design.
This is the context for SAP’s deep technical collaboration on SAP Business AI Platform with NVIDIA OpenShell, an open source secure runtime for autonomous AI agents. This collaboration is not about SAP “adopting” a runtime. It is about SAP actively shaping, hardening, and productizing the execution layer for enterprise agentic AI—together with NVIDIA.
For SAP customers, the value of this collaboration is concrete and practical. It enables:
Most importantly, it avoids a false choice between innovation and control. Customers do not have to bolt security on later, or redesign their risk models to accommodate AI agents. Instead, security and governance are built into the execution model from the start.
When AI systems move from generating responses to executing actions, the risk profile fundamentally changes. Agentic systems can touch systems of record, cross application and data boundaries, and operate without human review at every step.
In all enterprise environments, especially regulated ones, this makes execution safety and governance the defining challenge. Traditional chatbot-era controls are insufficient once agents can access shells, files, networks, credentials, and APIs.
SAP customers know this reality well. Business AI is only valuable if it can be:
Solving this problem requires more than infrastructure primitives or application-level rules alone.
NVIDIA OpenShell addresses a critical layer of the problem: secure, sandboxed execution of autonomous agents.
As an open source runtime, OpenShell introduces strong capabilities, including:
These capabilities form a foundational layer for autonomous agents to execute safely. In practice, enterprises need that execution layer aligned with business context and governance.
Enterprises expect clarity on questions such as:
This is where SAP’s contribution becomes decisive.
SAP is co-developing and contributing to OpenShell based on enterprise reality.
SAP operates at a level of scale and responsibility that few software providers do: mission-critical processes, regulated industries, and millions of transactions per hour.
By bringing real SAP agentic workloads into the collaboration, SAP provides the operational proving ground that OpenShell needs to mature from a powerful runtime into an enterprise-hardened one.
This includes shaping requirements around:
SAP is committing engineering capacity to the OpenShell open-source code base, with a focus on areas that matter specifically to enterprises: runtime hardening, policy modeling, enterprise identity integration, and auditing and governance hooks.
SAP is helping define how secure agent execution must work for enterprises; not just theoretically, but in production.
Where OpenShell secures execution, Joule Studio runtime provides the enterprise harness that makes agents usable and governable in business systems:
This ensures that agent autonomy is always framed by business intent and accountability, not just technical permissions.
OpenShell answers: “Can this action safely execute?”; Joule Studio runtime answers: “Should this action happen at all?”
This collaboration represents more than an integration. It reflects a shared intent to define what “enterprise-grade” actually means for autonomous AI systems.
By combining NVIDIA’s runtime and security innovation and SAP’s enterprise productization, governance expertise, and operational scale, SAP and NVIDIA are working toward an integrated solution for trusted agent execution—one that enterprises can inspect, govern, and rely on.
For SAP customers, this means AI agents that are not just powerful, but designed to earn trust in the environments where trust matters most.
Andre Lamego is senior vice president and chief product officer of SAP BTP Fabric
Today at SAP Sapphire in Orlando, SAP and Amazon Web Services (AWS) announced plans to build SAP Business Data Cloud (SAP BDC) Connect for Amazon Athena, a new offering that will provide bi-directional zero-copy integration between Amazon Athena and SAP Business Data Cloud.
Building on their long-standing partnership, AWS and SAP are making it easier for customers to access mission-critical SAP data products across AWS services, including Amazon Bedrock, Amazon Quick, and Amazon SageMaker. This will allow teams to deliver self-service analytics and build AI agents across all lines of business—without waiting for IT teams to replicate, prepare, and provision SAP data.
“The next era of business will be defined by how well organizations turn intelligence into action at scale,” said Muhammad Alam, member of the Executive Board of SAP SE, SAP Product & Engineering. “By bringing together SAP Business Data Cloud and widely adopted AWS AI and analytics capabilities, customers can unlock the true potential of data and AI.”
Enabled by SAP BDC Connect, the integration delivers near real-time, zero-copy access to semantically rich SAP data products directly through Amazon Athena, keeping data in place, preserving its original business context, and eliminating replication delays. Customers can query and analyze this data immediately, or choose to store and transform it for use across the broader AWS environment. This gives teams a governed, secure environment within AWS to easily build reports, dashboards, and AI agents.
“SAP and AWS share a commitment to helping customers put their most valuable data to work,” said Ruba Borno, vice president of Global Specialists and Partners at AWS. “By combining SAP Business Data Cloud with the AWSsecure, global infrastructure and advanced AI services, organizations can unlock mission-critical SAP data and act on it at the speed and scale their business demands.”
With SAP BDC Connect for Amazon Athena customers can:
SAP Business Data Cloud is already available on AWS in the U.S. East (N. Virginia), Europe (Frankfurt), Asia Pacific (Tokyo), Canada (Central), Asia Pacific (Sydney), South America (São Paulo), Asia Pacific (Seoul), Asia Pacific (Singapore) Regions, and the AWS European Sovereign Cloud.
Microsoft and SAP are excited to announce the expansion of the global RISE with SAP on Microsoft Azure initiative, a joint program between Microsoft and SAP designed to deliver technical expertise, support, and innovation for RISE with SAP on Microsoft Azure customers.
In 2026, we will more than double the number of customers allowed into the program, marking an important milestone in our mission to provide RISE with SAP on Azure customers extraordinary support and expertise throughout their experience. Thousands of enterprise customers are already transforming their businesses with RISE with SAP on Azure, including Nestle, Migros, and Samsung
First publicly announced in January 2025, this initiative brings together the best technical teams from SAP and Microsoft to enable a more seamless, high-touch migration and onboarding experience for the customer with no additional cost for an accelerated path to business transformation and faster cloud innovation.
The program is a joint customer experience that complements and enhances the RISE with SAP customer journey, providing
“RISE with SAP on Microsoft Azure ensures customers experience the best of both worlds: SAP’s business process leadership and Microsoft’s trusted cloud platform,” SAP Chief Partner Officer Karl Fahrbach said. “Together, we’re helping organizations move faster, reduce risk, and innovate with confidence as they embrace the future of the intelligent enterprise.”
“This program reflects our deep commitment to helping customers modernize mission-critical SAP workloads on Azure with confidence,” said Sandy Gupta, vice president of Global ISV Ecosystem at Microsoft. “By combining Microsoft’s cloud innovation with SAP’s business expertise, we’re delivering a secure, predictable, and AI-ready journey that accelerates time to value and unlocks new opportunities for transformation.”
The RISE with SAP on Microsoft Azure initiative is more than just a technical offering; it’s a strategic investment in customer success, delivered jointly by Microsoft and SAP.
Key benefits of the initiative for customers include:
Whether your organization is just beginning its RISE with SAP journey or looking to accelerate an ongoing migration, this program ensures you have the expertise, visibility, and partnership needed to succeed.
To learn more or nominate your organization, contact your SAP or Microsoft account representative.
WALLDORF — SAP SE (NYSE: SAP) today announced it has completed the acquisition of Reltio, a leading master data management (MDM) software provider.
The acquisition helps customers make their SAP and non-SAP enterprise data AI-ready and will provide customers with the tools they need to unify, cleanse and harmonize data across sources for superior enterprise-wide agentic AI.
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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2025 Annual Report on Form 20-F.
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I’m proud to share that SAP has once again been recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for Warehouse Management Systems (WMS)*. In our opinion, this recognition underscores SAP’s continued commitment to innovation in warehouse execution and reflects the confidence our customers place in SAP to run some of the world’s most complex, high-performance, and mission‑critical warehouse operations.
In today’s environment of ongoing disruption, rising customer expectations, and persistent labor and cost pressures, warehouse operations are more strategic than ever. We believe long-term recognition in this market requires more than point solutions; it demands scale, depth, and an orchestrated approach that connects warehousing with other supply chain functions.
We believe scale matters when it comes to warehouse management. Warehouse operations are increasingly complex and diverse, and organizations often operate networks that span regions, industries, and levels of automation. Warehouse management is not a one‑size‑fits‑all challenge, and global organizations need solutions that can support regional requirements while remaining consistent and integrated across complex networks.
SAP Extended Warehouse Management (SAP EWM) is designed to support organizations running SAP ERP or SAP S/4HANA as well as non-SAP environments. With customers across 24 industries, SAP EWM supports a broad range of warehouse complexity—from regional distribution centers to highly automated, high‑throughput operations. It enables organizations to standardize execution, improve visibility, and integrate warehouse processes with transportation, manufacturing, and broader supply chain operations.
SAP EWM continues to expand its innovation footprint with APIs for seamless robotics integration, as well as AI-assisted capabilities such as predictive labor demand planning and slotting. SAP’s Joule AI solution—embedded across applications—can further enhance SAP EWM by enabling natural-language interactions and supporting AI capabilities that operate both within workflows and in the background, helping organizations improve workforce efficiency and execution agility.
SAP’s warehouse strategy is built around choice and flexibility. In February 2026, SAP announced the general availability of SAP Logistics Management, an AI‑enabled, cloud‑native, microservices-architecture-based solution designed to complement SAP’s established logistics portfolio by supporting local, satellite, and mid‑scale logistics operations.
SAP Logistics Management helps unite warehouse execution and transportation planning in a single solution, supporting pick‑pack‑ship processes while enabling integrated freight coordination and carrier collaboration through SAP Business Network. Designed to work seamlessly with SAP Cloud ERP Private, the solution helps organizations connect localized operations with broader enterprise landscapes, improving coordination and real‑time visibility across logistics networks. Embedded AI capabilities, including support for Joule, can assist users with faster decision‑making and more intuitive interactions across logistics workflows.
Together, SAP EWM and SAP Logistics Management enable organizations to align technology investments with operational complexity, supporting mixed warehouse networks that include both highly automated facilities and smaller, distributed sites.
Warehouse execution does not operate in isolation. SAP’s platform strategy connects warehousing with transportation, manufacturing, quality, maintenance, global trade, sustainability, and partner collaboration across the supply chain.
SAP EWM can be used with SAP Signavio solutions to support process analysis and continuous improvement. It can leverage standardized APIs across SAP ERP and SAP S/4HANA to connect with adjacent execution systems such as transportation management, global trade, environmental health and safety, and SAP Digital Manufacturing. This platform-based approach helps organizations move beyond siloed execution toward coordinated, end‑to‑end supply chain
SAP remains focused on helping customers modernize warehouse operations while navigating broader ERP and cloud transformations. While organizations must carefully evaluate deployment models, cloud strategies, and long‑term road maps, SAP continues to invest in warehouse management solutions that scale globally, integrate deeply, and support evolving business requirements.
We believe that being recognized by Gartner as a Leader for the 12th consecutive time reflects continued execution across SAP’s warehouse management portfolio and the trust customers place in SAP to manage critical logistics operations worldwide.
Read the full Magic Quadrant report from Gartner to learn more about why SAP is a Leader. Learn more about the capabilities of SAP Extended Warehouse Management.
Till Dengel is global head of Product Marketing for Logistics and Asset & Service Management at SAP.
*Gartner, Magic Quadrant for Warehouse Management Systems, by Simon Tunstall, Rishabh Narang, Federica Stufano, 29 April 2026.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are trademarks of Gartner, Inc., and/or its affiliates.
Acquisition doubles down on SAP’s early mover advantage in tabular foundation models
WALLDORF and FREIBURG — SAP SE (NYSE: SAP) and Prior Labs, the pioneer of Tabular Foundation Models (TFMs), announced that they have entered into a definitive agreement for SAP to purchase Prior Labs, accelerating SAP’s success in TFMs that started with SAP-RPT-1, and bringing one of the world’s leading TFM research teams into the SAP family.
Prior Labs will continue to operate as an independent entity, with SAP committing to invest more than €1 billion over the next four years to scale it into a globally leading frontier AI lab for the structured data that runs the world’s businesses. Terms of the deal were not disclosed. The transaction is still pending regulatory approval.
Large language models (LLMs) struggle to make accurate predictions on structured business data because they have only a rudimentary understanding of tables, numbers and statistics. Unlike LLMs, TFMs are purpose-built for this type of data and can accurately predict business outcomes based on tabular data such as payment delays, supplier risks, upsell opportunities, customer churn risk and more.
“Early on, SAP recognized that the greatest untapped opportunity in enterprise AI wasn’t large language models; it was AI built for the structured data that runs the world’s businesses,” SAP CTO Philipp Herzig said. “We built SAP-RPT-1 to prove that conviction for enterprise data. Prior Labs has built a leading TFM on public benchmarks and built one of the leading research teams in this category. Combining their frontier model work with enterprise data and customer reach is how we intend to lead this category globally.”
“Over the last 18 months, Prior Labs has built an incredible team, increasing the velocity in tabular foundation models,” Prior Labs CEO Frank Hutter said. “Joining the SAP family gives us the resources, data environment and customer reach to take this category to its full potential.”
Once the transaction is closed, with Prior Labs, SAP will have the special opportunity to establish an industry-leading AI research lab and shape a new category in TFMs. The lab will operate as an independent unit to ensure research velocity, while SAP provides long-term investment and a direct path to productization across the SAP portfolio with SAP AI Core and SAP Business Data Cloud as well as the agentic layer with Joule.
With over 3 million downloads, Prior Labs’ TabPFN is a widely adopted open-source tool for tabular AI, supporting a dynamic developer ecosystem. SAP is fully committed to further support this open-source strategy. The Prior Labs cofounders Frank Hutter, Noah Hollmann and Sauraj Gambhir lead a team of world-class AI researchers and practitioners. The company works with leading scientists in the field, including Yann LeCun, ACM A.M. Turing Award winner and executive chairman at Advanced Machine Intelligence, and Bernhard Schoelkopf, director of Max Planck Institute for Intelligent Systems and ELLIS president, both of whom will serve on Prior Labs’ scientific advisory board as it scales to a globally leading frontier AI lab.
Prior Labs’ TabPFN-2.6 is the top-performing model on TabArena, the top benchmark for TFMs. TabPFN-2.6 matches the accuracy of a four-hour automated machine learning pipeline — instantly, in a single model, at a fraction of the complexity.
With a conversational interface layered on top, business users can ask questions in natural language, generate or select datasets and run “what-if” scenarios without needing to be data science and machine learning experts. With Prior Labs’ models, SAP will provide in-context learning, allowing users to provide data records to receive instant, reliable predictions without any model training. A single TFM can adapt to any business use case on the fly, resulting in faster time to value with GDPR compliance.
With Prior Labs, SAP will deliver TFMs with superior predictive capability that understand tables natively, learning statistical reasoning directly from data and will power agentic AI systems capable of understanding high-level goals, combining tables, language and images to reason, integrate domain knowledge, infer causality and adapt dynamically.
After the close, SAP and Prior Labs plan to turn top AI research into enterprise-ready innovation, allowing customers to get even more value out of their tabular business data. True intelligence requires moving beyond correlation to understand causation. Answering “What will happen?” is useful, but answering why it will happen is transformative.
The transaction is expected to close in Q2 or Q3 of 2026, subject to customary closing conditions, including regulatory approvals.
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Prior Labs is the pioneer of Tabular Foundation Models, a new category of AI purpose-built for structured data. Founded by Frank Hutter, Noah Hollmann & Sauraj Gambhir, Prior Labs’ TabPFN model series, published in Nature, set the state-of-the-art on tabular benchmarks across hundreds of independent academic studies. Prior Labs is scaling tabular foundation models to handle millions of rows, real-time inference, and entirely new data modalities, while building the infrastructure to deploy them in production across some of the most demanding industries on earth.
Headquartered in Freiburg, Germany, and offices in Berlin and New York City, Prior Labs has built one of the leading AI research teams globally, with researchers recruited from Google, Apple, Amazon, Microsoft, G-Research, Jane Street, Goldman Sachs, and CERN. www.priorlabs.ai
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2025 Annual Report on Form 20-F.
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WALLDORF and AUSTIN — SAP SE (NYSE: SAP) and Dremio today announced that SAP has agreed to acquire Dremio, an open, high-performance data lakehouse platform built to accelerate agentic AI and expand SAP Business Data Cloud’s ability to combine SAP and non-SAP data to more effectively run analytical and AI workloads in real time.
Terms of the deal were not disclosed. The transaction is still pending regulatory approval.
Most enterprise AI projects fail to deliver value not because of the AI itself, but because the underlying data is fragmented, locked in proprietary formats and stripped of the business context that makes it meaningful. The result is a familiar and costly pattern: pilots that cannot scale, slow integration of new data sources, duplicated engineering work and compliance risk when organizations cannot explain how an AI-driven decision was reached. Dremio helps eliminate that data fragmentation and integration friction. The acquisition will complement the SAP Business Data Cloud and SAP HANA Cloud offerings to ensure seamless data integration across SAP and non-SAP data with high performance and low cost to accelerate AI-ready context and time-to-value for AI.
“Enterprise AI doesn’t stall because the models aren’t good enough; it stalls because the data isn’t ready for AI agents,” said Philipp Herzig, CTO, SAP SE. ” Dremio eliminates that bottleneck. Combined with SAP Business Data Cloud, we can now take customers from raw, fragmented data to governed, AI-ready intelligence on a single open platform.”
With Dremio, SAP Business Data Cloud will become an Apache Iceberg-native enterprise lakehouse that unifies SAP and non-SAP data to power agentic AI at enterprise scale. Apache Iceberg is the industry-standard open table format, and SAP Business Data Cloud will natively support it as its foundation. This means no data movement or format conversion will be necessary. SAP and non-SAP data can coexist on the same open foundation, with federated analytical reach across every enterprise data source, combined with SAP HANA Cloud’s in-memory engine for real-time transactions and operational performance.
The Dremio lakehouse platform is set to vastly improve the economics of enterprise analytics. It is serverless and elastic, scaling up automatically when demand spikes and scaling back down when it subsides, meaning no fixed capacity to provision and no performance ceiling when it matters most.
With Dremio, SAP will deliver a universal, open catalog built on Apache Polaris and the open Apache Iceberg REST Catalog API. It serves as both the discovery and semantic layer of SAP Business Data Cloud, giving every connected engine – SAP or non-SAP – a single point of access to unified business context: meaning, relationships, access rights and data lineage. This catalog will form the foundation of the SAP Knowledge Graph, embedding business relationships, organizational hierarchies, regulatory classifications and cross-system lineage as native properties.
Dremio has been a leading steward of open-source projects at the heart of its platform: Apache Iceberg, Apache Polaris and Apache Arrow, and SAP is fully committed to continuing to invest in and prioritize these contributions.
The transaction is expected to close in Q3 of 2026, subject to customary closing conditions, including regulatory approvals.
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Dremio is the Agentic Lakehouse: the only Iceberg-native data platform built for agents and managed by agents. Every knowledge worker and AI agent gets instant, governed access to enterprise data through any LLM or tool of their choice. Federated queries reach any source without ETL pipelines. An AI Semantic layer adds business context so every agent draws from the same source of truth. The lakehouse manages itself, running clustering, optimization, and compaction autonomously. The result: trusted insights that drive better business outcomes, without the infrastructure complexity or overhead. A lead contributor to Apache Iceberg and co-creator of Apache Arrow and Apache Polaris. Trusted by Shell, TD Bank, Michelin, and thousands of organizations worldwide. www.dremio.com
As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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SAP is proud to be recognized as a Leader for the second time in the IDC MarketScape: Worldwide Carbon Accounting and Management Applications 2026 Vendor Assessment (doc #US54117126, April 2026). The report noted, “SAP’s ERP‑embedded approach unifies financial, operational, and sustainability data into a single, trusted foundation.”
The IDC MarketScape evaluated 17 application and software vendors delivering carbon accounting and management solutions. The IDC MarketScape examined how well they support credible emissions measurement, strong data governance, corporate-, product-, and supplier-level visibility, and standards-based reporting.
SAP is ideal for organizations seeking to run sustainability as a core business discipline by embedding carbon and broader sustainability management directly into ERP processes. This approach helps reduce the inefficiencies, risks, and inconsistencies created by fragmented, stand‑alone tools while enabling AI‑driven insights grounded in governed, transactional data.
We believe this recognition reflects SAP’s commitment to helping organizations act on carbon data across the enterprise. SAP Sustainability solutions support scalable carbon emissions calculation, regulatory reporting, supplier collaboration, and decarbonization planning while embedding emissions insights directly into business processes, investment decisions, and day-to-day operations.

Sustainability is an enterprise-wide responsibility and a strategic opportunity. Organizations must reliably measure, allocate, and act on carbon to manage risk, lower costs, and improve performance.
Regulatory requirements demand a shift from estimates to actuals. Assurance expectations continue to rise as evolving legislation penalizes the use of estimates, turning data gaps into direct financial exposure. Sustainability disclosures now require finance-grade evidence trails that spreadsheets cannot provide. With carbon increasingly impacting margins, cash, and liabilities, finance teams must find a way to forecast exposure and govern risk.
At the same time, leadership teams need a single, quantified view of carbon impact to understand implications, align priorities, and enable confident, informed decision-making.
This shift is already materializing through carbon pricing mechanisms. The EU’s Carbon Border Adjustment Mechanism (CBAM), now in its definitive phase, places a carbon price on certain imports based on their embedded emissions. It aims to promote fair competition and more sustainable global trade practices. Declaring companies can report using supplier actuals or EU default values. However, relying on EU default values can increase costs over time, creating a clear incentive to move to actual data to reduce exposure and protect market access.
As regulators set clearer expectations and assign a direct price to carbon, emissions now carry measurable financial risk. Companies must extend financial rigor into emissions quantification, applying the same discipline, controls, and assurance used in financial reporting.
Unlike point solutions built solely to calculate carbon emissions, the SAP Green Ledger solution can serve as the accounting layer for carbon. It applies the financial principles of double-entry accounting to carbon emissions, helping to bring structure, controls, and traceability to carbon data. Natively integrated with cloud ERP finance through SAP Business Technology Platform (SAP BTP), it enables companies to import, post, allocate, and analyze carbon emissions with the same rigor and discipline that finance applies to monetary accounting.
For ERP‑centric organizations, SAP Green Ledger can preserve and extend financial rigor into this regulated, non‑financial domain. It helps strengthen data integrity and auditability, support assurance-ready reporting, and create a consistent foundation for carbon data across the enterprise.
As a result, organizations can reduce compliance costs and regulatory risk, embed sustainability directly into cost centers and financial processes, and gain clearer insights to support better business decisions. Native integration makes the approach both trustworthy and scalable, allowing carbon to be governed, managed, and acted on as a core component of enterprise performance.
Robust businesses govern finance through strong controls, reconciliations, and audit trails, typically grounded in ERP systems. Until recently, carbon emissions existed outside this system, treated as a sustainability metric rather than a governed business variable. Bridging this gap requires an ecosystem that connects carbon calculation, data exchange, and accounting—anchored in finance. According to IDC, “The three-tier approach of better applications, richer data, and smarter AI enables companies to not only ‘record’ and ‘report’ their sustainability efforts but also take informed, data-driven actions.”
SAP supports this through a modular, ERP-native approach that adapts to different levels of maturity. Organizations can begin by calculating reliable corporate and product footprints using primary data wherever available, then bring those emissions into finance to post, allocate, and govern carbon with the same controls applied to monetary values.
As requirements grow, the ecosystem extends to supplier data exchange, consolidation across entities, advanced analytics, and scenario modeling—allowing companies to connect carbon with cost, performance, and planning. Sustainability reporting and disclosure are supported on top of this foundation, using governed, auditable data already embedded in enterprise systems.
SAP uses AI across the carbon lifecycle to help map and enrich emissions factors, streamline ESG report preparation, and analyze carbon data at scale—supporting stronger controls, faster reporting, and more informed financial decision‑making.
This is a defining moment for businesses as they take the critical step of integrating carbon management into finance. SAP remains committed to providing an ERP-integrated carbon ledger that empowers companies to comply with evolving regulations, govern performance with rigor, and make decisions that drive sustainable, long-term growth.
Learn more about carbon accounting at SAP.
Stephen Jamieson is chief marketing officer of SAP Sustainability.