Issue

The essential building blocks for CSRD reporting is based on tools from many vendors and Syensqos existing technology.  It requires combining into a solution for ESG reporting.  A decision is required on the long term solution post the implementation of RFI ESG Disclosure and Performance in 2024.  

Recommendation

Background & Context

RFI on ESG Disclosure and Performance was launched in 2024 to consolidate all Sustainability data in one place, create reporting layer and insights layer on top.  The RFI is aiming at a one to two year contract, which is to be revisited with ERP Rebuild.  Demos have been presented by SAP in 2024 to the business together with PWC.   RFI supported by KPMG experience with other clients and finalised in July 2024 based on 2.5 weeks response time for providers to answer by mid June 2024.  June/July 2023 Go-No Go decision.  

Potential Providers as per RFI

1.  SAP - very limited AI, no disclosure tool, would require interface, requires custom integrations until S/4 is implemented. S/4 will bring SCT features.
2. Gensuite - comprehensive solution, concerns about being too complex Ux, AI++
3. Salesforce - comprehensive solution, concerns about being too complex Ux, AI++
4. Greenomy - smaller scope plus AI as an option to combine with other tools for supplier interaction and environmental accounting.
5. Watershed - focus limited to carbon with lack of further development potential, limited AI
6. Cority - no AI capabilities
7. Figbytes - concerns about complicated relationship due to acquisitions model
8. Microsoft - not advanced enough for reporting (no CPD, taxonomy etc), lack of integration
9. Sphera - comprehensive but no AI

Automation can obtain consistent data and metrics to pinpoint sustainability issues in real-time.  Tech-enabled governance of the reporting process can manage complexity and risk.

Process

1. Assess metrics and data: Priortise ESG topics based on risks and issues
2. Automated data collection and preparation: data capture for emissions and ESG reporting
3. Centralised ESG data: granularity
4. Metric calculation:  aggregation and calculation of scope 1, 2 and 3 emissions and other ESG metrics
5. Sustainability tracking via analytic insights (including visualisation) and reports and disclosures (multiple frameworks)
6. Sustainability initiatives based on actions and ESG compliance

The process is driven by a variety of internal and external data sources, which need control, tracing and verification.

Functional architecture

The following tools are data sources for storage and consolidation (automated or manual).  Enrichment with external data may also be required.  Metric calculations should make use of AI generated insights.

Design/R&I:

1. Project portfolio
2. LCA

• WeGo (accolade)
• Simapro/Gabi
• Fast LCA, checklist

Sustainable procurement (STP -Supply Tracking and Prioritisation):

1. Bio and recycled based raw material tracking (SAP - Green Token material origins?)
2. Human rights due to diligence (Ethixbase)
3. Carbon footprint sharing (Sigreen)

Manufacturing:

1. Carbon scope 1 and 2 (SAP Green Ledger, other?)
2. Emissions reporting (SAP EHS Emissions Management)
3. Waste reporting (SAP EHS Waste Management)
4. Water reporting (tbc - not readable on slide 4)
5. Star Factory project portfolio (Wave, Gensuite)
6. Accident reporting (Gensuite)
7. CAPEX tracking (SAP Finance, Colmar)

• Cerise (redundant)

Supply Chain:

1. Carbon scope 3 (SAP)

• EcotransIT
• Concur
• BW Tiers

HR:

1. Diversity, Equity, Inclusion (DEI) (SAP SuccessFactor)
2. Training and performance (xls offline)
3. Gender pay gap (Payroll)
4. Living wages (Payroll)

Business:

1. Marketing (Sustainability Portfolio Management - SPM)
2. Inventory (SAP Product Compliance: Substances of Very High Concern - SVHC)
3. Life Cycle Analysis (LCA - tbc)

• PCF - redundant?

SAP Sustainability Control Towers (SCT)

Launch of 2024 RFI on ESG Disclosure and Performance was extended to SAP.  2024 RFI response by SAP not satisfactory with off the shelf slide pack containing access issues to links.  SAP Sustainability Control Towers (SCT) currently not mature enough, but could be revisited in three years. 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. 

Roadmap?

Gensuite

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

Greenomy

Shortlist of two in 2024 RFI.  Favourite Greenomy as short term solution, plug and play, so not overspend.  Recommendation given, waiting for decision.  

PAPM (SAP) currently used for tax purposes by Finance in scope of ERP Rebuild to deal with complex reporting requirements.  Might be an option to cover circularity for Sustainability.  SPM may not be the way forward as missing master data.  Additional option?

Assumptions

Constraints

Impacts

Business Rules

Options considered

Option A: SAP Sustainability Control Towers (SCT)

Option B: Gensuite/Microsoft

Option C: Greenomy

Option D: Do Nothing

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