PwC and SAP Launch New Innovation Strategy to Help Organizations Achieve Their ESG and Net Zero Targets

PwC and SAP today announced a new co-innovation strategy to make sustainability an integral part of standard business operations. The strategy is directed at creating trusted solutions to address key environmental, social and corporate governance

(ESG) business challenges. It covers carbon measuring, reporting and steering as well as supply chain

decarbonization, climate risk and competitive analysis.

The new ESG strategy builds on the strength of the existing alliance between PwC and SAP, which has

successfully delivered business transformation solutions to clients in more than 80 countries.

The strategy includes co-innovated solutions, created with PwC’s deep ESG and accounting expertise,

aimed at enabling businesses to apply ESG metrics through their operations that are trustworthy,

auditable and verifiable. The solutions leverage the SAP® Cloud for Sustainable Enterprises solution,

along with the SAP Sustainability Control Tower solution and the SAP Product Footprint Management

solution. Together, PwC and SAP help organizations leverage the solutions they need to fulfill compliance

requirements and drive growth to support the ever-increasing expectations of customers and investors.

They also assist customers in shaping the future of their net zero strategy and sustainability reporting.

The PwC and SAP strategy includes solutions encompassing an enterprise-wide ESG strategy, ranging

from trading optimization and tax credit recognition to third-party risk management and competitive

analysis. Three top challenge areas for ESG, net zero and sustainability reporting will also be addressed:

• Reporting and disclosure helping to satisfy requirements to materially report and disclose

investor-grade carbon measuring data to meet demands of investors, lenders, regulators, and

customers.

• Operationalizing sustainability supporting the incorporation of ESG measures, especially

carbon issues, directly into business functions, such as trading, capitalization and tax.

• Supply chain risk management, monitoring and compliance extending support for ESG

measures to cover the impact of suppliers on organizational performance.

Solutions like PwC Germany’s award-winning Climate Excellence tool, based on SAP Business

Technology Platform, have already demonstrated the strength of the collaboration between the two

organizations in bringing ESG innovation to market.

PwC and SAP are dedicated to helping organizations respond to the reporting and auditability

requirements imposed by the European Financial Reporting Advisory Group (EFRAG) and the

International Sustainability Standards Board (ISSB). They also support companies in complying with a

related ruling proposed by the U.S. Securities and Exchange Commission (SEC). Solutions provided by

PwC and SAP enable the real-time, data-driven environment customers require to operate and grow the

sustainable enterprise of the future.

Bob Moritz, Global Chairman, PwC said: “ESG has become a business imperative and is central to

PwC’s global strategy, The New Equation, which aims to help clients build trust with their stakeholders

and deliver sustained outcomes. New ESG reporting and disclosure requirements are being established,

and greater transparency is critical to building trust. This belief is core to our new co-innovation strategy

with SAP, expanding our collaboration to create a dedicated focus on ESG solution development. PwC

has been working intensely to help companies deliver on the requirements needed to achieve their ESG

goals. Combining our expertise and reputation for trust and integrity with SAP’s technology platform will

help bring broader capabilities and solutions to respond to organizations’ challenges in meeting their ESG

and sustainability commitments.”

Christian Klein, CEO and member of the Executive Board of SAP SE, said: “The key to every

organization’s ability to reach their sustainability goals and drive positive change is transparency. Our

collaboration will combine the deep industry expertise and customer insights of PwC with our leading

sustainability technology portfolio, and the resulting ESG transparency will help companies reinvent their

business models and deliver the sustainable outcomes the world urgently needs.”

To learn more about PwC and SAP’s ESG co-innovation strategy, visit our website.