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SAP’s Aims for Leading Role as ESG Software Rivalry Intensifies

  • German software company pitches its broad product suite
  • Competition for ESG tools heats up with need for disclosure

SAP SE Chief Executive Officer Christian Klein said the software maker is looking for growth in tools to help businesses track diversity and sustainability, betting that the company’s strength in supply-chain and procurement programs gives it an advantage in the burgeoning market.  

Investors are increasingly demanding that businesses set goals for ESG -- environmental, social and governance -- issues, but there’s debate about how companies should disclose their progress. Early dominance in the sector may give a software maker an influential voice in helping to craft what eventually could become a mandatory reporting criteria, akin to quarterly financial disclosures.