Utilization of data management tool in sustainability reporting : Case study of sustainability reporting challenges in industrial sector
Koskinen, Linnea (2025)
2025
Tuotantotalouden DI-ohjelma - Master's Programme in Industrial Engineering and Management
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
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Hyväksymispäivämäärä
2025-03-18
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202503162799
https://urn.fi/URN:NBN:fi:tuni-202503162799
Tiivistelmä
Sustainability reporting significance has evolved in the past years due to the new European Union directive, Corporate Sustainability Reporting Directive (CSRD), that has brought new demands for companies. Companies are required to provide more standardized, transparent, and auditable sustainability report, which has also brought challenges for the companies along the requirements. Many companies struggle to consolidate sustainability data across different IT systems. Therefore, the use of a robust data management systems is crucial for companies. One example of a system is SAP Sustainability Control Tower (SCT). SAP SCT can assist preparing the sustainability report and support companies with CSRD requirements.
The research focused identifying common challenges in sustainability reporting and evaluating the role of SAP Sustainability Control Tower in addressing the challenges in sustainability reporting. The study included a literature review, which explored the role of sustainability reporting, path to CSRD and the requirements of the directive. The study examined data management challenges in sustainability reporting and reviewed existing sustainability reporting tools, including SAP SCT. Empirical research was conducted through 13 semi-structured interviews with representatives from various industrial companies and also SAP experts. These interviews helped identify key challenges in sustainability reporting from real-world business experiences and evaluate SAP SCT's functionalities and compliance with CSRD standards.
The research concluded that SAP SCT is a viable solution for improving CSRD compliance by addressing the key challenges of sustainability reporting. It enhances audit trail and data transparency by tracking data changes and maintaining an audit trail, ensuring compliance with regulatory standards. The system provides automated checks and validation processes that improve the accuracy of sustainability data. Its seamless integration with SAP ERP and other data management tools reduces manual data collection efforts, and by automating sustainability reporting tasks, SAP SCT helps companies save time and resources. However, challenges remain, including the need for additional tools for Scope 3 emissions calculations and reliance on third-party integrations for final disclosure reporting, which require companies to align their workflows with the system’s predefined functionalities.
In conclusion, SAP SCT provides a structured, automated, and scalable solution for sustainability reporting under CSRD. While it effectively addresses many challenges, companies should carefully evaluate additional investments needed for full compliance, particularly in Scope 3 emissions calculations and final disclosures. The study suggests that future research should explore alternative reporting tools.
The research focused identifying common challenges in sustainability reporting and evaluating the role of SAP Sustainability Control Tower in addressing the challenges in sustainability reporting. The study included a literature review, which explored the role of sustainability reporting, path to CSRD and the requirements of the directive. The study examined data management challenges in sustainability reporting and reviewed existing sustainability reporting tools, including SAP SCT. Empirical research was conducted through 13 semi-structured interviews with representatives from various industrial companies and also SAP experts. These interviews helped identify key challenges in sustainability reporting from real-world business experiences and evaluate SAP SCT's functionalities and compliance with CSRD standards.
The research concluded that SAP SCT is a viable solution for improving CSRD compliance by addressing the key challenges of sustainability reporting. It enhances audit trail and data transparency by tracking data changes and maintaining an audit trail, ensuring compliance with regulatory standards. The system provides automated checks and validation processes that improve the accuracy of sustainability data. Its seamless integration with SAP ERP and other data management tools reduces manual data collection efforts, and by automating sustainability reporting tasks, SAP SCT helps companies save time and resources. However, challenges remain, including the need for additional tools for Scope 3 emissions calculations and reliance on third-party integrations for final disclosure reporting, which require companies to align their workflows with the system’s predefined functionalities.
In conclusion, SAP SCT provides a structured, automated, and scalable solution for sustainability reporting under CSRD. While it effectively addresses many challenges, companies should carefully evaluate additional investments needed for full compliance, particularly in Scope 3 emissions calculations and final disclosures. The study suggests that future research should explore alternative reporting tools.