The logo of German software group SAP is pictured at the headquarters of SAP (Schweiz) AG in Regensdorf, Switzerland January 22, 2021.
The logo of German software group SAP is pictured at the headquarters of SAP (Schweiz) AG in Regensdorf, Switzerland January 22, 2021. Reuters / Arnd Wiegmann

Tech giant SAP and Boston Consulting Group said on Tuesday they would team up to help some of the world's biggest companies overhaul their business strategy and accelerate their efforts to cut carbon emissions.

While thousands of companies https://unfccc.int/climate-action/race-to-zero-campaign have pledged to cut their planet-warming emissions by the middle of the century, emissions across the economy continue to rise, leaving the world on course to suffer the catastrophic impacts caused by climate change.

Despite policymakers pushing companies to get a better grip on the environmental impact of their supply chains, including in Europe through the Corporate Sustainability Due Diligence https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1145 directive, most companies are some way from being able to do so.

In a recent study https://www.bcg.com/en-gb/press/13october2021-only-nine-percent-of-organizations-measure-emissions-comprehensively, just 9% of executives from 1,290 companies surveyed by Boston Consulting Group (BCG) said they were able to fully measure their emissions.

To help fix the problem, SAP, which counts 85 of the world's 100 biggest companies as customers, and BCG said they would combine their carbon tracking and measurement technology and services to help inform clients' decision making.

"Being sustainable requires coordination across the value chain, and this is where SAP's partnership with BCG plays a key role," SAP Chief Executive Christian Klein said in a statement.

"Bringing together BCG's expertise, tools, and services with SAP's technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders."

The SAP and BCG Sustainability Transformation venture is currently being piloted ahead of a broader launch in the third quarter.

Companies acting first could achieve up to 15 years of competitive advantage and a share price premium of 10%, added BCG Chief Executive Christoph Schweizer, citing analysis by the company.