Issue

Determine to what extent SAP tools can manage the business and system process to cover scope of AS IS third party applications (TPAs) for Sustainability. May require creation of further KDDs to cover specific TPAs.

Recommendation

Harmonise current ESG landscape.

Background & Context

ESG Landscape As Is:

SAP Applications to upgrade:

• 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?). New carbon accounting solution to cover all categories, not patchwork. Green Ledger ?
  • Dashboard access Qkliksense. Redundant with Green Ledger?
  • Reporting requirements? R2R integration
• Emissions management S/4HANA as future tool to replace non-SAP applications?

• Colmar (CAPEX tracking) - CAPEX - increased needs, covered by Finance integration?

Non-SAP Applications to upgrade:

LCA:

• Simapro - LCA (Life Cycle Assessment) software to quantify environmental product development objectives. Will be in R&I scope.
  • Qliksense integration change?
• Gabi - LCA software for profiles of carbon, water and product environmental footprints.  R&I tool, should in R&I scope. 
  • LCA - SQO launch Proof of Concept for automation.  Today Simapro/Gabi.  PCF in SAP only one dimension of LCA.  Happy to consider SAP.

• Pure (SERF) - Emissions and water, survey tool to manage the reporting campaign to collect all the HSE KPIs. It includes plauseability checks, simple calculations, KPI ownership management.   
  • Water Live Dashboard - Water live dashboard connected to MES to debimeters, sensors, water meters.  Not SAP.
  • Waste Quarterly Dashboard
  • Qkliksense integration
• 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.
• Qliksense - integrates with SPM, PURE (SERF), BW Cerise.
• Waste mgmt module in SAP S4 HANA is being looked into as should be in SAP from Marie's point of view. Harmonisation.

Non-SAP - out of scope for ERP Rebuild:

LCA

• EcoInvent (2ndary data) - library of emission factors. Linked to SimaPro.  Database only, not software. Connected to LCA.  Commercial issue as data bought through software lincence in Simapro.  No further improvement.

• Sigreen (PCF collect) - SaaS aiming at facilitating the exchange of PCF within the value chain. It was co developed with TfS.  Interested to see what SAP propose.  Sector federation decision to chemical industry in 2024 from RFP two years.   Syensqo cannot chose, collective decision.  No change. Tableau - PCF.
• Ecovadis (supplier screening) - no questionnaire, prebuild questionnaire. same as Sigreen, collective choice by federation.  No change.
• Wave (Star Factory) - Consumed by sustainability.  Tool of McKinsey.  PMO tool, project mgmt tool.  
• WeGo (Portfolio Management) - project mgmt tool, managed by R&I and IT.
• SPM - SPM (Sustainable Portfolio Mgmt) - SPM is a custom built tool in SAP that standardizes and records sustainability assessments in order to support decision making processes. It combines:
  - on the vertical axis: the monetization of all the environmental impacts based on the ecoprofile done in simapro (excel upload)
  - on the horizontal side, the market positioning based on a form
  The evaluation is done on a data object called PAC (Product in Application) that is linked via correlation tables to products and end uses in order to allow the visualisation of the sales for each SPM category.  custom build by Solvay.  SAP not right, too bespoke.  Will remain out of scope. Just needs improvement.  ABAP developed.  Form technology.  To BE webforms, not SAP.
  • RFI?
  • Timeline RFI vs ERP if future not SAP
  • Qliksense integration
• Gensuite should stay, sustainability just consumes.  unlikely to be consumed by SAP.

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.

Green Ledger

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

Makes it easier for businesses to accurately account for the carbon they produce across their value chain. Given the fact that SAP handles 70% of the world’s business transactions, it will also – when it launches next year – be the largest solution of its kind available.

“To truly make progress and create a more sustainable world, it’s important that enterprises take action on the carbon they’re producing,” explains Jesper Schleimann, SAP’s Chief Strategy and Innovation Officer. “But the only way to do that is to have actual data so they can make business decisions.”

Couple the need for action with an increased need for transparency from investors, employees, regulatory bodies, and customers, enterprises are being pushed to make sustainability an integral part of their business blueprint.

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.

Step three in the journey is the soon-to-be-launched Sustainability Data Exchange, the ‘real visionary part’ says Jesper.

“The Control Tower gives you the impact overview, the Footprint gives you the detail, but you’re still using business averages to gauge how much carbon you’re producing,” he says. “We want partners to help their customers to move away from averages and start using actuals, to start getting sight of actual data from their suppliers, and their suppliers’ suppliers.”

It’s here that SAP really ‘begins to differentiate on a global level’. The Data Exchange will become a standard-setting engine that allows businesses to exchange data, securely, across value chains, thus unlocking ‘the carbon calculation of impact’.

By adding in the fourth element, the Green Ledger, businesses will be able to act on the insight they have in front of them.

“Of course, you can take action at any stage but the Green Ledger will help to make bigger, bolder, decisions that become integral to what a business does; embedded across the enterprise.”

Just as financial ledgers detail the value that moves across an enterprise – how much money has been made, where it should be invested – with the Green Ledger, businesses will know which activities are driving their carbon footprint so they can look at where and how they can reduce it and make better decisions.

Assumptions

Constraints

Impacts

Business Rules

Options considered

Option A: 

Option B: 

Option C: 

Option D: 

Evaluation

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Change log

Workflow history