Project Study | SAP SE | Optimizing Costs through SAP Green LedgerBeta

Project Study: How do sustainability and carbon costs like ETS, CBAM and voluntary offsets affect companies in terms of monetary “optimizing strategies” like tax reduction through profit shifting? About SAP SAP SE, a global leader in the field of enterprise software solutions, specializes in providing sophisticated Enterprise Resource Planning (ERP) systems. With presence in over 180 countries, SAP ERP systems assist businesses in streamlining their diverse operational processes, from finance and HR to supply chain and sales. The SAP ERP system is distinguished by its ability to integrate different business functions into a single realm, enabling organizations to operate with improved efficiency and process standardization. This system's capability to coalesce information management across various business functions makes it a preferred choice for businesses of all scales and scopes. SAP's emphasis on process integration and optimization not only simplifies day-to-day business operations but also provides strategic insights to support decision-making and foster growth. As such, SAP continues to be at the forefront of facilitating businesses in navigating their processes towards operational efficiency. Introduction The global push toward sustainability has introduced a range of carbon pricing mechanisms such as the EU Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), and voluntary carbon offset markets that impose significant costs on businesses. At the same time, multinational companies continue to employ sophisticated tax optimization strategies, including profit shifting, transfer pricing adjustments, and the strategic location of value-creating activities to minimize their overall tax burden. This project study explores the intersection of these two domains: How do carbon-related costs and sustainability regulations influence or interact with corporate monetary optimization strategies? Specifically, it investigates whether and how companies factor carbon costs into their profit shifting decisions, whether carbon pricing mechanisms create new opportunities or constraints for tax-efficient structuring, and how the financial treatment of voluntary offsets may serve as an additional lever in corporate tax planning. The goal of this project study is to develop a structured analysis that maps the interplay between sustainability-driven cost pressures and corporate financial optimization, providing actionable insights into how regulatory frameworks around carbon pricing may inadvertently enable or restrict tax-motivated behaviors. Objectives 1. Map the carbon cost landscape: Provide a clear overview of ETS, CBAM, and voluntary offset mechanisms, including how they translate into concrete financial costs for companies. 2. Analyze profit shifting mechanisms: Identify and describe the main corporate strategies used for tax reduction through profit shifting and related monetary optimization approaches. 3. Identify intersections and interactions: Examine how carbon costs and sustainability regulations possibly interact with existing tax optimization strategies (e.g., can carbon costs be allocated across jurisdictions to optimize tax positions? Do CBAM obligations create incentives for supply chain restructuring with tax implications?). 4. Develop a framework or decision model: Propose a conceptual framework that illustrates if and/or how companies balance sustainability compliance costs against tax/profit optimization opportunities. 5. Provide recommendations: Derive implications for policymakers (closing loopholes) and/or for companies (compliant optimization strategies). Your profile • Team of 2 to 5 students in Bachelor or Master studies enrolled in Management & Technology • Excellent analytical and problem-solving skills • Agile and flexible mindset with strong communication skills and German and English • Motivated, independent, and target-oriented work approach Your benefits • Work independently in a project-based setting • Receive continuous support by SAP experts • Get first-hand relevant contacts for a career entry