SAP and Sustainability:
What Türkiye’s businesses need to know to stay compliant and competitiveSustainability is no longer just a buzzword; it is a business imperative. With tightening regulations and shifting consumer expectations, companies that fail to adapt risk falling behind. In today’s world, businesses that integrate sustainability into their core strategies are the ones that will thrive.
Fundamentally, sustainability combines environmental, social, and economic dimensions to address the needs of future generations while managing resource demands.
Key regulations shaping corporate strategies
The shift is largely driven by international agreements such as the 2015 Paris Agreement, which set the stage for ambitious climate action, and the European Green Deal, which aims to make the EU carbon neutral by 2050.
To support these objectives, major regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM) are reshaping corporate strategies. These initiatives not only enforce compliance but also encourage businesses to adopt long-term sustainable practices that enhance operational efficiency and stakeholder trust.
- Corporate Sustainability Reporting Directive (CSRD)¹: Expands reporting requirements, affecting nearly 50,000 companies operating in the EU. Companies meeting specific criteria (e.g., having significant EU revenue or subsidiaries) must disclose their climate and environmental impacts in a standardized way.
- Carbon Border Adjustment Mechanism (CBAM)²: Aims to prevent carbon leakage by requiring importers of certain high-emission products to report and eventually pay for embedded carbon emissions.
- EU Taxonomy: Establishes a classification system for sustainable economic activities, guiding investment decisions and financial market participants.
These frameworks are designed to push businesses beyond compliance, driving sustainable sourcing, transparency, and cost management strategies. Companies that proactively integrate sustainability into their operations will gain a competitive edge, while those lagging behind risk financial penalties and reduced market access.
In today’s world, businesses that integrate sustainability into their core strategies are the ones that will thrive.”
Impact on Turkish businesses
- For Turkish companies exporting to the EU, especially in sectors – Cement, Electricity, Fertilizers, Iron and Steel, Aluminum and Hydrocarbons (including certain premium petroleum products), compliance with CBAM and CSRD is critical. Failure to align with these regulations could result in financial penalties and restricted market access. The Turkish market will face challenges in adapting to sustainability regulations.
- Companies will need to invest time and resources in understanding the requirements, since EU regulations can be complex and multifaceted.
- Substantial costs, including investments in technology, training, and changes in the way of doing work will create a financial impact to overcome.
- Limited systems and processes for data collection and reporting will make compliance difficult.
However, by acting now, businesses can mitigate risks, enhance competitiveness, and ensure seamless access to international markets. Turkish businesses that proactively address sustainability will also have a better chance of attracting international investments and collaborations.
Top sustainability challenges for businesses
To comply with regulations and meet global sustainability goals, businesses must focus on three critical areas:
1. ESG Compliance & Reporting: Organizations must track and disclose their Scope 1, 2, and 3 greenhouse gas (GHG) emissions and align with international frameworks such as CSRD, Global Reporting Initiative (GRI), and Task Force on Climate-related Financial Disclosures (TCFD).
2. Carbon Footprint Tracking & Reduction: Businesses need to measure their emissions accurately and implement strategies to reduce them in line with CBAM and other regulatory requirements.
3. Supply Chain Transparency & Responsible Sourcing: Companies must ensure compliance with sustainability regulations like the EU Deforestation Regulation (EUDR) by improving supply chain visibility and adopting sustainable sourcing practices.
Achieving an Integrated Approach to Sustainability with Technology³
As businesses navigate evolving sustainability regulations, many are moving away from manual ESG tracking and adopting integrated digital solutions. Enterprise Resource Planning (ERP) systems are increasingly being used to centralize sustainability data, improve compliance, and enhance operational efficiency.
One example of such technology-driven solutions is SAP's sustainability portfolio, which provides businesses with tools to manage ESG compliance, carbon footprint tracking, and supply chain transparency. Solutions like Sustainability Control Tower, Footprint Management, and Green Token enable organizations to integrate sustainability goals into their overall business strategy.
Solving ESG compliance & reporting challenges with SAP Sustainability Control Tower (SCT)
Managing ESG compliance requires businesses to collect, standardize, and report sustainability data efficiently. Many organizations struggle with:
- Fragmented data collection, leading to inefficiencies.
- Lack of standardization, making regulatory compliance complex.
- Reporting inconsistencies, increasing the risk of errors.
SAP Sustainability Control Tower (SAP SCT) addresses these challenges by enabling centralized data collection, aligning reports with global frameworks (CSRD, GRI), and providing real-time ESG monitoring to integrate sustainability into business strategies.
Measuring & reducing carbon footprint with SAP Sustainability Footprint Management (SFM)
To comply with regulations such as CBAM, businesses need precise emissions tracking across Scope 1, 2, and 3. Key challenges include:
- Data collection complexity, making emissions reporting difficult.
- Lack of automation, increasing errors and inefficiencies.
- Inconsistent reporting frameworks, complicating regulatory alignment.
SAP Sustainability Footprint Management (SFM) simplifies emissions tracking by automating data collection, standardizing reporting practices, and providing advanced analytics for emission reduction strategies.
Ensuring supply chain transparency with SAP Green Token
Regulatory pressures and consumer expectations demand greater transparency in supply chains. Companies need to:
- Verify sustainability claims and ensure responsible sourcing.
- Comply with global regulations like the EU Deforestation Regulation (EUDR).
- Improve raw material traceability to mitigate supply chain risks.
SAP Green Token helps businesses achieve end-to-end supply chain visibility using blockchain technology, ensuring compliance and reinforcing stakeholder trust.
A future-ready approach to sustainability – Why SAP is the right choice
By integrating sustainability data within enterprise platforms like SAP, businesses can streamline compliance, reduce regulatory risks, and enhance market positioning. Organizations that proactively adopt digital solutions will not only meet sustainability requirements but also drive long-term operational and financial success. Solutions like SAP SCT and SAP SFM enable organizations to navigate these challenges efficiently.
- Cost Reductions: Streamlined reporting and automation lower compliance costs.
- Risk Mitigation: Reduces regulatory risks by ensuring alignment with global frameworks.
- Improved ESG Ratings: Helps businesses enhance sustainability performance.
- Enhanced Customer & Investor Trust: Demonstrates commitment to sustainability, strengthening market positioning.
What is next for businesses in Türkiye?
As a result, businesses should act now to stay ahead of sustainability regulations. They should stay informed by subscribing to sustainability newsletters and webinars. If possible, sustainability assessments should be performed as soon as possible to find out current compliance status and sustainability practices. Based on the results, stakeholder engagement should be encouraged with implementing a sustainability strategy and investing in technology.
Digital transformation simplifies sustainability management. Partnering with technology providers helps businesses align sustainability goals with operations, while transparent reporting solutions accelerate innovation and long-term success.
Let’s continue advancing what matters, together, now. Learn more with Atos Türkiye SAP Centre of Atos Türkiye SAP Centre of Excellence.
Posted on: April 14, 2025
¹ Directive (EU) 2022/2464 of the Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022
² European Commission, Taxation and Customs Union, Carbon Border Adjustment Mechanism
³ SAP Learning Journey “Positioning SAP Sustainability Solutions within the SAP Business Suite”
Ardahan Aras
SAP EHS & Sustainability Solutions ExpertMember, Atos Research Community
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