Issue

Determine the best solution option for carbon footprint management aligning with ERP project principles.  A decision is required which the tools should manage the business and system process for carbon footprint management, potentially replacing current tools in the Sustainability landscape.

Recommendation

Green Ledger.

Background & Context

Resource and time constraints are hindering to go beyond PCF (Product Carbon Footprint) whilst striving for LCA Life Cycle Assessment.  Regulation more on reporting ESG, hence PFC not enforced by regulations to be provided.   Key driver currently is the customer impact on buying decisions focusing on more PCF friendly products.  There is currently no related single priority for Global Business Units (GBU).  Business continuity impact. 

There is a procurement initiative for pressuring vendors as part of 3.1, only PCF, fully manual today, developed some queries, Prod stew cannot apporach suppliers.  A way to understand where emissions come from at operational, procurement, market level enables Syensqo to start taking action on group targets. 

Sustainability footprint management for Syensqo can be split as follows:

• Carbon footprint management
• Emissions management
• Water management
• Land use

This KDD covers the carbon footprint management only.  The creation of further KDDs may be required to cover other areas of Sustainability.

Current ESG Landscape (new slide)

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Current Applications

There are a number of applications currently in use, which contribute to carbon footprint management in Syensqo.

• BW Cerise (CO2 Energy Report Improvement Software Efficiency) - Automatic reporting of GHG (greenhouse gases) and ETS (Emissions Trading System) allocations for all sites.
  • Carbon accounting/ - uses Cerise.  Not an SAP module.  Home developed in BW.  BW not used in way it is meant to work. 
  • Master data (which master data?) created directly created in BW. To be replaced by Green Ledger in SAP.    No formal ground work done in past.  Cerise is recent development from when?. There was no formal RFI.  Cerise currently only scope 1 and 2.  Scope 3 with 15 subcategory (which? linked GHG protocol 3.1 as per google e.g. transportation upstream, storage). New carbon accounting solution to cover all categories, not patchwork. Green Ledger ?
  • Dashboard access Qkliksense. Redundant with Green Ledger for carbon footprint.  Also used for SPM, still valid.  used for reporting, CSRD to visualise.
  • Reporting requirements? R2R integration

• Colmar (CAPEX tracking) - CAPEX - increased needs, covered by Finance integration? Have to be able to report on green CAPEX. not related to cfm
• EcotransIT (World) - The most widely used software worldwide for the automatic calculation of energy consumption, carbon emissions, air pollutants, and external costs.  Contract not signed, yet, under negotiation.   Database, no software.  Should be in carbon accounting blue box middle.  Should be part of scope 3 transport related emissions.  May be covered by Green ledger. Comprehensve tool should replace it.
• Qliksense - integrates with SPM, and BW Cerise, integration not required if dashboard functionality available via SAP Green Ledger.

Carbon footprint management was briefly investigated by Syensqo about three years ago and disregarded whilst SAP was still in the development phase for this solution.  

There is an expectation that Syensqo should adopt a mainstream integrate solution for carbon footprint management at this point.  Current tools such as BW Cerise and PCF should be replaced.  It would be beneficial to be able to input carbon footprint data via SPM, which monetises it and looks at the market re sustainability grading.  SPM is just methodology which will remain custom.  no appetiite for vendors to change SPM.  Eventually should be hard interface.  integration should be cfm to feed LCA tool, which should feed SPM.  SAP no plans to be in LCA space?   RFI for LCA space should be launched, sent out to vendors.  Proof of concept Q4 2024 before decision.  SAP will be invited.   

Cerise is providing provides socpe 1 and 2 at site level. scope 3 product level in PCF.   Comes from raw material largely.  Needs request from suppliers, otherwise have to rely on industriy data.  Sigreen exchange tool managing requests from suppliers and to be able to exchange to cusotmer.  Exchnage platform sourcing PCF for raw material mapping pcf tool for Syensqo product, then sent back to Sigreen.   Customer connect Sigreen for relevant data.  Interfaces should be API.

Cerise extremely linked to Finance. Good idea to move cfm into SAP as finance project.  Finance was heavily involved with Cerise implementation.   Stakeholders should Procurement.  Gilles knows Cerise very well.

Transactions behind carbon emissions.  Related to energy purchase and energy consumption.  Should be able to rely on financial transaction.   That is how Cerise was designed with transacitonal financial transational flow. 

Can have footrpoint calculation and reporting.  Just talked about calcuation.  PURE is a survey tool and used with site results put in PURE, just a reporting tool.   R2R?  PURE contract renegotiated now to be moved to Gensuite.  already moving accident reporting.  then only remaining is annual survey to collect water and emissions KPIs.  Directionally trying to position Gensuite no 1 industrial site application.  

Ongoing Projects 

RFI ESG Disclosure and Performance

ESG Disclosure and Performance - SAP not mature enough with SCT (Sust Control Tower).  Could be revisited in 3 years.  Roadmap? SAP did not answer RFI, just off the shelf ppt.  Access issues to links. 

Gensuite one option.  Synergies with reporting.  Target state data capture and clean up close to source.  May mean movin away from Gensuite to where data ownership, modelling is more frequent.  Gensuite not right fit, maybe more towards Microsoft.  Pilot in autumn to test automation of env metric, modelisation for data cleaning and then consume clean data on corporate level.

Shortlist of two, favourite Greenomy as short term solution so not overspend.  Plug and play.  Recommendation given, waiting for decision  

Launch of Sustainbility Control Tower RFI, extended to SAP, SAP invited to answer.  Unlikely they will be shortlisted.  RFI to consolidate all sustainability data in one place, create reporting layer and insights layer on top.  1-2 year contract to revisit once ERP Rebuild is in place.  Hence AS IS is a moving target.  Different scope to Green Token.  Demos have been presented by SAP this year to Marie with PWC.  Scope, AI and insights not good enough.   RFI supported by KPMG experience with other client and finalised in next days.  2.5 weeks for providers to answer by mid June.  Other potential providers SAP, Gensuite, Salesforce, Microsoft (new partner AI), Simapro provider Sphera.  Pure players: https://watershed.com/en-GB, https://www.cority.com/, https://figbytes.com/company/about/, Watershed.com. June/July 2023 Go-No Go decision.  Syensqo IT contacts are Guillaume Muller (PM sustainability) and Mathilde Lascombes (for the AI capabilities) for now.  Syensqo will involve purchasing and architecture once we have shortlisted

*Sustainability Control Tower: SAP scope, AI and insights not good enough. ESG data, elements on basic reporting using tools creating KPI library.  This should be covered by SAP.  Enhancement of this data SAP lacks, reporting layer e.g. KPIs, emission factors e.g. ecoinvent, ecotransit.  For example carbon accounting.  Pureplayers look into public data where plant data is missing, to make assumptions where there is gaps.   Other functionality, AI native pureplayer is integrated benchmark.  Competitors in tool for KPIs in market based on public information. SAP solution does not cover this.  No company in manufacturing uses the Sustainability Control Towers. 

Dedicated project on carbon footprint

managed by Philippe Chevaux (Sustainability DT) 

eg. estimation on product footprint. Project finish by end of 2024.  

Digital sustainability
Emissions impact when buying and selling to understand kg of CO2 to get product to customer.  Importance to customers, the lower CO2 the greener.  Other companies CSRD aim to reduce emissions.  

Aim to take control what is happening in supply chain.  Syensqo needs activity data and emission factor e.g. how many kg CO2 for certain activity.  Data build by experts or external databases.  Economic accounting and carbon accounting same: buy raw materials, production, transport, man power, waste.  It is the first time ever that Syensqo have product level accounting for Sustainability.  Few other companies are at same stage.  Historically accounting at plant or group level only.  CO2 = direct emission on product level (scope 3).  Beforehand at plant level. Scope 1 directly e.g. burning into air, Scope 2 e.g. buying electricity.  Scope 1 data BW Cerise where activity is collected combined with emission factor for each plant.  Mapping table for each plant in BW.  Qty of energies are reported from ERP directly.   Cerise is plant level, Syensqo are buying these energies and combining the emission factor. WP1 uses qty of energies in BOM .  Emission factor not from BOM, Cerise tool to get emission factor at plant level.  

Changes to carbon print, that could reduce emission factor: optimise process leading to less consumption, measured at plant, change of BOM based on lower conception.  Otherwise it is possible to change provider for energy supplies to reduce emissions factor.  Selecting suppliers with lower footprint.  

Accuracy key TO BE to govern and implement solution going forward.  Data flow as one version of truth.  For raw materials v good accuracy according to Matthieux.  Better waste allocation would be beneficial.  
Resource and time constraints hindering to go beyond PCF (Product Carbon Footprint) e.g LCA Life Cycle Assessment.  Regulation more on reporting ESG than on PCF. PFC not forced by regs to be provided, other than customer impact deciding to buy more PCF friendly products.  PCF for customer benefit only.  GBUs have no one priority.  Some customers may stop selling otherwise. Business continuity impact.  PCF also needed for corporate ESG disclosures, especially 3.1.  
What are the requirements for annual disclosures?  Cerise tool is backbone for reporting Scope 1 and 2 relating to energy.  Some are essential for annual reports.  Strategy Gabriela, SAP first, if not fully cover requirements, then certified product.  In some instances, SAP development instead of 3rd party product.   
Procurement initiative for pressuring vendors as part of 3.1.  A way to understand where emissions come from at operational, procurement, market level. Enables to start taking action on group targets.  

SAP EHS Environment Management includes:

• Waste Management (seperate KDD)
• Emissions Management
• GHG Emissions Management
• Water/Wastewater Management

It tracks all aspects of environmental impacts allowing an auditable process for calculations emissions.  

Capabilities:

• Many options for collecting data and sampling to be used for compliance tracking and emission calculations.
• Buildt-in equitations and content driving a flexible and auditable calculator for hazardous air pollutant and GHG emissions inventories.
• Emissions forecasting tools
• Realtime and analytical tools and support for ESG and sustainability reporting

Benefits: 

Sustainability Footprint Management

• Reuse existing ERP data: Reuse of existing ERP data for calculation and embed footrpint results back into business processes to influence decision-making.
• Reuse existing business data, structures, and logic from SAP S/4HANA Cloud and import transactional activity data for your footprint calculation (e.g. material movements) and connect any ERP system via public APIs.
• Integrate results into business processes: Help drive sustainable business decisions by embedding footprint results into business processes, like supply chain planning or sourcing and procurement, via direct integration
• Leverage full sustainability portfolio:  Make use of our holistic sustainability portfolio through direct integrations with SAP Sustainability Control Tower, SAP Sustainability Data Exchange, and SAP S/4HANA Cloud for EHS environment management.

Emission Factor Management

• Increase accuracy with emission factor mapping powered by AI and include supplier specific footprints
• Map emission factors with AI:  Use SAP Business AI to automate the mapping of emission factors to ERP data to minimise manual effort and enhance the accuracy of result.
• Include actual supplier data:  Increase the share of primary data by directly importing footprints from your suppliers. Leverage the integration with SAP Sustainability Data Exchange (PACT V2) or use direct entry, file upload, and push API.
• Use lifecycle assessment (LCA) data:  Use industry averages from third-party content providers, upload your own data packages, or use preconfigured data packages (e.g. EPA, GLEC) for maximum flexibility and consistency status.

Carbon Footprint Calculation at scale

• Calculate and manage Scope 1, 2, and 3 corporate, value-chain, and product footprint data.
• Calculate product and corporate carbon footprint:  Calculate footprints on product and corporate level at scale by integrating transactional and master data using flexible calculation methods.
• Model energy flows and allocations:  Model energy flows per energy carrier and resource in your production line or facility to allocate energy consumption and assign emissions to manufactured products.
• Manage footprint inventory scopes:  Maintain individual inventory scopes to define the organisational boundaries of the footprint calculation. Define and list all data sources to be used for the calculation and monitor its progress.
•  

integration with SAP sustainability solutions e.g. SAP Product Footprint Management (PFM)

Green Ledger

Business decisions need to consider environmental costs.  The Green Ledger allows for thses costs to become visible up front. 

available within the RISE and GROW with SAP programmes.

Next up is the Sustainability Footprint Management solution, which tracks what’s flowing in and out of the business, such as the actual footprint of a product, the materials used to produce it, the packaging, and the transportation. Footprint Management collects that data, maps it out, and gives an overview of what’s really driving impact at a much more granular level.

Syensqo is required to compute its Corporate and Product Carbon footprints for different stakeholders:

• investors and markets as it has a target on GHG emissions reduction
• regulators in various jurisdictions
• customers
• internally for teams to whom the reduction target is cascaded to to operationalize it in their respective perimeters (eg industrial, procurement, supply chain...)

A decision is required as to which tools should manage the business and system process for Sustainability footprint management in line with the Syensqo Sustainability roadmap, potentially replacing current tools in the Sustainability landscape.

Recommendation

There is an expectation that Syensqo should adopt a mainstream integrated solution for carbon footprint management.  It enables Sysenqo to achieve group targets by understanding where emissions come from at operational level.  Data accuracy is key to govern and implement the solution going forward, hence it needs to be based on an integrated data flow which represents one version of truth. 

The recommendation is for the business to implement SAP EHS Emissions Management to cover Scope 1, 2 and 3 requirements as part of an integrated ERP solution (Option D).  

This would lead to the decommissioning of Cerise, Digital PCF and associated dashboards. 

Background & Context

Due to complexity of acquiring information on the downstream part Syensqo typically provides cradle to gate carbon footprint rather than cradle to grave. The related frameworks are mainly GHG protocol, over and above the International Organization for Standardization (ISO) and Together for Sustainability (TfS), a joint initiative of chemical companies.  Sustainability footprint management in Syensqo is split as follows:

• Emissions management
• Water management 
• Energy management
• Land use  (out of scope for this KDD)

The following activities are to be considered as part of the scope for this KDD:

• Scope 1 and 2
  • Energy provider operations (Scope 2)
  • Company premises (Scope 1)
• Upstream activities Scope 3
• Downstream activities Scope 3

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Syensqo currently relies on industry data where no supplier data has been requested or supplied. Collecting PCF data from suppliers is instrumental to understand Syensqo's upstream Scope 3 baseline and measure progress.  Stakeholders, including investors, customers, and regulatory bodies, increasingly demand transparency and action on Scope 3.1 emissions.  PCF also needed for corporate ESG disclosures, especially 3.1.  Failure to comply can lead to reputational damage and financial consequences.  There is an ongoing procurement initiative in Syensqo for pressuring vendors as part of scope 3.1 emissions (purchased goods an services).

Assumptions

The following assumptions are underlying the SAP SFM solution recommendation to be a valid design: 

• All SAP deliveries require transportation and are covered by carbon footprint management upstream and downstream via SAP Transport Management and S/4HANA.
• The SAP licence for SAP S/4HANA Cloud for Environment Management (private edition) is covered as per implementation of SAP EHS Waste Management (separate KDD).  
• Footprint management and calculation is required on site and product level.  The solution for transactional carbon accounting requires more precise and granular tracking of emissions across business operations and supply chains.
• Rigorous rules for footprint management as well as related accounting data across the value chain are required to comply with regulatory and Financial Accounting standards.  
• Enhanced data capture, acquisition and governance is required throughout the organization e.g. data related to Scope 3.1 carbon emissions associated with the procurement of products or services. 
• The solution impacts various processes and stakeholders outside of Sustainability.  Appropriate business and stakeholder support is required on all levels due to the significant process and supply chain changes.
• All impacts and assumptions of the SAP SFM solution need to be understood by all impacted business processes and stakeholders. 
• SAP SFM impacts need to be included in relevant business roadmaps e.g. Procurement, Finance, Logistics etc.
• All management across the supply chain needs to be invested in supporting the SAP SFM solution.
• Appropriate system and process training will be conducted with all relevant users as part of the implementation process.  
• Which of the current applications in the ESG landscape will be replaced by the SAP SFM solution will be confirmed as part of detailed design. It may require a 'parallel' phasing out period of non-SAP applications, which are covered by the SAP SFM solution forward.  
• A contingency plan as part of the SAP SFM will be included in the implementation to ensure continuity when switching from related SAP and non-SAP applications.

Constraints

• This KDD covers the carbon footprint management only.  
• Some technologies and product's compositions are submitted to export control regulations
• SAP SFM - Roadmap:
  • SAP Roadmap for 2025 included footprint breakdown for fossil and biogenic emissions product footprints
  • Integration with Transport Management
  • Simulation capabilities for various footprint scenarios and what-if analyses, enabling sensitivity analysis and comparison of product carbon footprints. It assists in sustainable decision-making regarding product design, production efficiency, and supply sourcing.
  • Connections to Business Networks like SAP Ariba and Catena-X for data collection and sharing, supporting the PACT-Standard.
  • Importing and managing emission factors to be extended to other impact categories, like water or land use. 
  • To support the move from average to actual footprint calculation SAP plans to launch an API for sharing product footprints along the value chain, adhering to global standards like the World Business Council for Sustainable Development's Partnership for Carbon Transparency (WBCSD PACT) and the Together for Sustainability (TfS) initiative.  It will provide direct access to supplier footprints, simplifying the mapping process and improving data quality with primary data.
  • Introduction of automated mapping recommendations, a mapping wizard with validation checks, and an API for external providers for emission factors mapping of purchased products. 
  • More Scope 3 categories associated to downstream emissions and people transport are planned for future releases beyond current release scope of GHG Scope 1, 2, and 3 categories related to material, freight transport, and facilities.

  • Updated version of the existing Analytical API will be available to integrate the calculated footprints into any other analytical application for analytics, disclosure, or other purposes..

Impacts

• The solution for carbon footprint management impacts the fate of legacy applications covering the same scope: Cerise and Digital PCF
• It is expected that the change of methodology, emission factors and data cleansing may modify the carbon footprint of certain categories

Business Rules

Options considered

Option A: Continue As Is

Currently this data is built up by experts (internally and externally) or sourced from external databases.    There is no one version of the truth.   Syensqo needs to act with its suppliers to reduce Scope 3 emissions to reach Syensqo's climate commitment and support product competitiveness.  The future solution for footprint management in Syensqo needs to be determined as part of Scope 3 aligning with ERP project principles.  

• Lack of integration with S/4HANA.
• Large variety of non-SAP tools.
• Lack of granularity.
• Lack of system and data integrity.
• Not future-proof.

Option B:  SAP Sustainability Footprint Management (SFM)

SAP SFM calculates and manages carbon footprints across GHG Scope 1, 2, and 3 emissions, integrating with SAP S/4HANA for accurate and efficient emissions calculations.  The solution tracks the flows of product footprints in and out of the business, the materials used to produce it and the transportation.  As a solution for transactional carbon accounting it enables more precise and granular tracking of emissions across business operations and supply chains.  SAP SFM can:

1. Manage supplier product footprint according to World Business Council for Sustainable Development Partnership for Carbon Transparency (WBCSD PACT)
2. Calculate Scope 3 categories on activity level e.g. transport of purchased goods.
3. Calculate product and organisation footprint according to material flow

Product Capabilities

The capabilities of SAP Sustainability Footprint Management can be broken down as follows: 

1. Acquiring master and transactional data from connected business system.
2. Combine the data with emission factors to evaluate the environmental impact.
3. Calculating of the sustainability footprints in the application.

Business Architecture

SAP Sustainability Footprint Management runs on SAP Business Technology Platform, extracting and integrating data from SAP S/4HANA and other sources to calculate and store carbon footprints, which are then fed back into business processes and will increasingly connect with tools like SAP Sustainability Control Tower and supplier networks for end-to-end sustainability insights and reporting.

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Data Acquisition

SAP Sustainability Footprint Management reuses ERP master and transactional data via native integration with SAP S/4HANA or APIs, supports file-based imports and transport datasets, and is evolving to include enhanced cost and emissions integration, as well as connectivity with networks like SAP Ariba and Catena-X for standardized sustainability data exchange.

Emission Factors Management

SAP Sustainability Footprint Management enables the import, management, and AI-driven mapping of emission factors (focused on CO₂e) using ERP and supplier data, integrates LCA datasets from providers like ecoinvent and Carbon Minds, and is evolving toward automated, high-accuracy footprint calculations through primary supplier data exchange and standard-based integrations.

Footprint Calculation

SAP SFMs calculates product and corporate carbon footprints across Scope 1, 2, and upstream Scope 3 (cradle-to-gate) by integrating ERP and supplier data, modelling energy flows and allocations, and defining organisational boundaries, with plans to extend to full lifecycle (cradle-to-grave) coverage.

Energy Flow Model:

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SAP SFM calculates both organizational (Scope 1, 2, 3) and product-level carbon footprints using ERP data, emission factors, and energy models, offering complementary methods that Syensqo combines to analyze emissions and identify key drivers.

A Sankey Diagram is the core tool for investigating emission results, offering transparency on input factors, such as purchased energy.  It gives visibility to various levels of detail, including calculation data and formulas, to understand the carbon footprint emissions. The app allows publishing results to connected SAP S/4HANA Cloud or SAP S/4HANA systems.

Sankey-Diagram:

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Footprint Analytics

SAP SFM provides built-in analytics dashboards to visualize and drill down into carbon footprints across the value chain, including detailed breakdowns by GHG scopes, transport flows, and emission hotspots, with API integration for external analytical tools.

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Option C: SAP EHS Emissions Management

SAP EHS Environment Management tracks various aspects of environmental impacts.  It primarily focuses on tracking and managing emissions and pollutants released into the environment.  Whilst only SAP EHS Emissions Management and GHG Emissions Management are relevant for the purpose of this KDD, it generally includes the following components:

• Waste Management (separate KDD)
• Emissions Management (EM)
  • Manages all types of emissions resulting from operation to fulfil legal requirements e.g.
    • Hazardous air pollutants
    • Significant air pollutants (NOx and SOx)
    • Greenhouse gases (GHG)
    • Air or water emissions
• GHG Emissions Management
• Water/Wastewater Management 

Capabilities:

• Monitoring and reporting of emissions data.
• Flexible and auditable calculator for hazardous air pollutant and GHG emissions inventories.
• Calculates and aggregates emissions through data transparency and monitoring.
• Various options for collecting data and sampling to be used for compliance tracking and emission calculations.

While SAP EHS effectively supports well process and waste emissions, it cannot compute product-level Scope 3 footprints across the full value chain. In particular, EHS does not support detailed lifecycle-based allocations, supplier-specific footprint integration, These capabilities are instead addressed by solutions like SAP Sustainability Footprint Management, which are designed for product-level carbon accounting and full Scope 3 coverage.

Option D:  SAP Sustainability Footprint Management (SFM) and SAP EHS Emissions Management - combination

In standard SAP the holistic Sustainability solution for Footprint Management combines various components in its architecture, which are intrinsically integrated.  Whilst some of these components may be implemented in isolation, the Syensqo Sustainability Roadmap requires a combination of tools to create 'one truth'.  It supports Syensqo's long-term goal to adopt a mainstream integrated solution for carbon footprint management and supports achieving group targets by understanding where emissions come from at operational, procurement and market level. 

SAP SFM can be supplemented by the integration with SAP EHS Emissions Management with SAP SFM (see SAP SFM Product Capabilities and Business Architecture diagrams).   There is no additional SAP licence requirements (SAP licence same as SAP EHS Waste Management, covered by separate KDD).   The recommendation is for the business to implement SAP EHS Emissions Management for Scope 1 and 2 as well as SAP SFM to cover current and future Scope 3 requirements from the outset as part of an integrated ERP solution.   Please refer to option B and C for capabilities and benefits for each solution.

Evaluation

See also

1. 2023cSyensqo Annual Integrated Report
2. McKinnon Report
3. SAP Roadmap Sustainability Footprint Management (SFM)

Assumptions

Constraints

• This KDD covers the carbon footprint management only.  The creation of further KDDs may be required to cover other areas of Sustainability.

Impacts

Business Rules

Options considered

Option A: SAP Green Ledger

Option B: Continue As Is

Option C: 

Option D: 

Evaluation

Pro

• Harmonise current ESG landscape.

Con

Pro

Pro

Pro

Con

Pro

Con

Pro

Con

Pro

Pro

Con

Con

See also

Change log

Workflow history