Measuring carbon: Insights from SAP and BT

Truly understanding the carbon impact of a large organisation is no mean feat.

Measuring scope one and two emissions (directly generated emissions and carbon from purchased energy, respectively) are straightforward enough to track. But when we get to scope three emissions things get much trickier. That’s because scope three emissions are indirect – generated by other entities in the supply chain, or by end customers when using a company’s products. By definition, a company does not have direct control over these emissions and therefore does not control the means to measure them. 

Enterprise software giant SAP is better placed that most to take a broad, worldwide view of the issue. The company’s most recent sustainability report highlighted just how much of a challenge most organisations were having in measuring their complete carbon story. Seeking to develop a solution, SAP has built the Sustainability Data Exchange (SDX), a platform that aims to help organisations quantify their carbon across their entire value chains. An early adopter of the solution is UK telecoms giant BT. 

Stephen Jamieson, Head of Global Circular Economy Solutions at SAP, and Sarwar Khan, Sustainability Director in BT’s business unit,  join us in this episode to take us inside the progress they have made working on the platform together. 

They also offer insight into the challenges that remain beyond standardised measurement itself. There is a continuing need to embed carbon accounting into the task list of CFOs. The conversation highlighted the need for a more integrated approach to sustainability and financial reporting, driven by emerging regulations like the CSRD in the EU and new SEC guidelines in the US.

Additionally, CIOs must play an ever more important role in managing the carbon impact of digital transformations, especially with the rise of generative AI.