Issue

Succinctly describe the issue or problem statement that this Decision addresses. Why is a decision required? What business or technical problem does it address?

A long-term solution is required to effectively manage sustainability initiatives to support achieving Syensqo's environmental goals.  The essential building blocks for CSRD reporting are based on tools from many vendors and Syensqo's existing technology.  It requires combining into one integrated solution for ESG reporting going forward. 

A decision is required on the long term solution for ESG Disclosure and Performance, post the implementation of RFI ESG Disclosure and Performance in 2024.  

Recommendation

Summarise the recommendation being made for the reader, leaving the pro/con evaluation and exact decision-making process to the subsequent sections.

The recommendation is the implementation of SAP Sustainability Control Towers (SAP SCT).  SAP SCT is better suited in the long term for Syensqo due to its specialised features, seamless integration with the SAP and robust compliance and reporting tools.  SAP SCT is the stronger solution for larger organisations seeking a comprehensive, integrated solution that covers a wide range of sustainability metrics, advanced analytics and industry-specific needs. 

Background & Context

Explain the context in which the decision is being made.

The 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.  It is aiming at a one to two year contract, which is to be revisited with the implementation of the ERP Rebuild project.  Demos have been presented by SAP in 2024 to the business together with PWC.   The RFI is supported by the KPMG experience with other clients and was finalised in July 2024.

The required capabilities for the RFI on ESG Disclosure and Performance, which are also applicable to the long-term solution are:

• Centrally managed calculations. Avoid large proportions of pre-calculation in various source systems across the landscape. 
• Centralisation of ESG data and reporting.
• Long term solution committment.
• Annual or quarterly reporting metrics.
• Leverage of AI where beneficial.

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.

Architecture

There are a number of applications currently in use in the Sustainability landscape, which will either be integrated or replaced to support the future ESG disclosure and performance solution.   

The following tools are potential data sources for storage and consolidation (automated or manual).  Highlighted in green are data sources related to the future ERP Rebuild Sustainability solution (see other KDDs).  Enrichment with external data may also be required.  Metric calculations could make use of AI generated insights.

Design/R&I:

1. Life Cycle Assessment(
2. Footprint Management -  SAP SFM

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

Sustainable procurement:

1. Bio and recycled based raw material tracking (SAP) (see KDD Material Traceability)
2. Human rights due to diligence (Ethixbase)
3. Carbon footprint sharing (Sigreen)
4. Carbon footprint managmenet (SAP Sustainability Footprint Management - SFM) (see KDD063 Sustainability Footprint Management)

Manufacturing:

1. Carbon scope 1 and 2 and 3 (SAP Sustainability Footprint Management - SFM)
2. Emissions reporting (SAP Sustainability Control Towers - SCT)
3. Waste reporting (SAP EHS Waste Management) (see KDD053 Waste Management)
4. Water reporting (SAP Sustainability Footprint Management - SFM) (see KDD063 Sustainability Footprint Management)
5. Star Factory project portfolio (Wave, Gensuite)
6. Accident reporting (Gensuite)
7. CAPEX tracking (SAP Green Ledger) (see KDD065 Carbon Accounting)

Supply Chain:

1. Carbon scope 3 (SAP Sustainability Footprint Management - SFM)

• EcotransIT
• Concur
• BW Tiers
• Cerise
• PCF - redundant?

HR:

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

Business:

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

 Pure/Gensuite vs S4.  scop 1-3 about 20 metrics, 15 in scope 3.  Validation workflow most important.

not advanced enough for reporting (no CPD, taxonomy etc), lack of integration. Syensqo leaning more towards Microsoft. 

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?

ISAB set standards in combination with IFRS requires sustainability standards and disclosures.  EU policy CSRD different to US, China, but all are influenced by TCFD framework established 2025, which used by global investment companies e.g. Black Rock.  

TCFD

Climate related financial disclosure:

Structural assessment of CAPEX impact.  Forecast of financial impact of sustainability impact.  

Needs access and transparency in one central place in the company.  Currently spread throughout the company in complex landscape.   Solution SCT for holistic steering and reporting on aggregated/periodic level.  

SAP SFM enables to automate the data collection at more granularity.  e.g. scope 3.1 which can make up 80% of emissions.  SAP SFM connects to ERP system e.g. goods receipt, goods issue, suppliers, products purchased, assigns emission factor.  Results in footprint extraction possible.  Eventually solution can calculate corporate and product footprints.  basis for SCT. 

Supplier footprint often manual currently, no standard footprint sharing, error prone.  SAP Sustainability Data Exchange publishes and makes available footprint to the network.  

Finance dimension covered by Green Ledger.   What is the footprint impact on balance sheet, assets, cost centres, budgets.  Consolidates financial and sustainability data.

SAP EHS Environment for collection data from smart meters and other device.

Ambtions:

SCT showing trends, targets.

SFM:

One step deeper in granulirity.  Shows emissions for purchased and sold goods.  Can also calculate product footprints.  System knows greener footprints by adding products used to e..g build a car.  System extracts data from ERP via BOM with all components needed to build a car.  e..g calculate costs.  Can assign certain footprints to materials in BOM, like already done with costs, also using SAP EHS.  Includes assigning footrpints to activities e.g. car assembly line.  

Data can be published back from SFM into S/4HANA and post green ledger journal entry.  If product sold, post finish goods account and debit COX account.  Same for sustainability.  Takes calculated data from SFM, takes it and posts it in Green Ledger.  Can analyse finance and sustainability data in one dashboard.  Adds additional dimension to enterprise performance management over and above regulatory and standard reuqirmeent to report on sustainabilty.

CSRD for FY2024 more granularity of information.

Green Ledger does not calculate footprints.  It relies getting them from another source e.g. SAP SFM.  

Green Ledger data reporting via Fiori UIs or SAC to make data accessible.  Green Ledger is a data repository, which can be seen in Fiori apps, SCT, Datasphere etc, simliar to finance processes.

Green Ledger posted to cost centres or business segments/company code level, which are available for reporting.   Enables simulations exchanging a material inhouse production or external sourcing, supports decision making as such. 

Green Ledger data format for external regulation requirements can be achieved.  Asset or CAPEX accounts with emissions for data preparation for e.g CSRD via SAP SCT.  Can model and structure KPIs in SCT, which can then be sourced from Green Ledger to calculate and fulfil requirements.  From SCT with disclosure management tool into XPRL format to send to authorities.  

There are elements of Green Ledger that sit in ACDOCA table universal journal in S/4HANA core.  Other elements are outside.  Product costing entry will be enhanced with Green Ledger, new object universal component breakdown, new input in product costing entry, which sits in ACDOCA table.  Green journal entries are outside technically.  As business user no difference. 

More info:

👉Find more information: https://www.sap.com/assetdetail/2023/... 👉https://www.sap.com/events/sapphire/n... 👉https://www.sap.com/sustainability.html

Assumptions

Clearly describe the underlying assumptions which informed or limited the choices available, or impacted the decision: cost, schedule, regulatory requirements, business drivers, country footprint, technology, etc. Include links as necessary. This section is important because a future change in circumstances might invalidate some key assumptions, which then prompts a decision to be revisited. 

Implementation of related SAP Sustainability functions to support SCT.

Constraints

Capture any constraints or limitations inherent to the recommended option. This could be aspects which, if changed or removed in future, could cause the decision to be revisited or invalidated. For example, a constraint might be that a new product has significant gaps in important functionality, which caused an older alternative to be recommended. If those gaps are closed in future, this might cause the decision to be invalidated.

• Integrating data from various sources, including SAP and non-SAP systems, can be complex and time-consumin

• Ensuring data accuracy, consistency, and completeness is a significant challenge, especially when dealing with large volumes of data from disparate sources.

• System Performance: Real-time data processing and analytics require robust infrastructure and may face latency issues.

• The capabilities of the solution are dependent on the SAP Roadmap (see References).

Impacts

Describe the impact of the decision on other aspects such as other processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

SAP Sustainability Control Tower (SCT) integration involves connecting various SAP and non-SAP systems to provide a comprehensive view of Syensqo's sustainability performance.  This integration enables real-time data collection, advanced analytics, and reporting to support sustainability initiatives. 

1. SAP ERP and S/4HANA:

   • Integrate with core ERP systems to gather data on resource usage, production processes, and financial metrics.
   • Leverage existing data structures and processes to ensure consistency and accuracy.

2. SAP Environment, Health, and Safety (EHS):

   • Connect with SAP EHS to monitor and manage environmental compliance, health, and safety data.
   • Use EHS data to track hazardous materials, emissions, and waste management.

3. SAP Supply Chain Management (SCM):

   • Integrate with SCM to monitor the sustainability performance of suppliers and logistics partners.
   • Track the carbon footprint and resource usage across the supply chain.
   • SAP SCT integrates data on the sourcing of raw materials, ensuring they meet sustainability criteria.
4. SAP Sustainability Footprint Management (SCM)
   • SAP SCT provides detailed supply chain data, including transportation, production processes, and material sourcing, which is essential for calculating the product's environmental footprint.
   • SCT shares emissions data from various supply chain activities to help in footprint calculations.

5. SAP Ariba:

   • Connect with SAP Ariba for sustainable procurement and supplier management.
   • Ensure that suppliers meet sustainability criteria and track their performance.

6. SAP SuccessFactors:

   • Integrate with SAP SuccessFactors to manage employee training and certification related to sustainability practices.
   • Track employee engagement and participation in sustainability initiatives.

7. SAP Analytics Cloud (SAC):

   • Use SAC for advanced analytics, reporting, and dashboarding.
   • Visualize sustainability data and generate insights to support decision-making.

8. Internet of Things (IoT) and Sensors:

   • Integrate IoT devices and sensors to collect real-time data on energy consumption, emissions, and resource usage.
   • Use IoT data to monitor and optimize sustainability performance.

9. Third-Party Systems:

   • Connect with non-SAP systems and external data sources for a holistic view of sustainability performance.
   • Use APIs and data integration tools to ensure seamless data flow.

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

The management of business rules supports sustainability initiatives to be more effective, compliant, and aligned with their strategic objectives.  It enables continuous monitoring, optimization, and improvement of sustainability performance.

1. Data Collection and Validation:

   • Define rules for data collection from various sources, ensuring data accuracy and completeness.
   • Implement validation checks to ensure data integrity and consistency.

2. Performance Metrics and KPIs:

   • Define key performance indicators (KPIs) for sustainability initiatives (e.g., carbon footprint, energy consumption, water usage).

   • Set targets and thresholds for each KPI to monitor performance against sustainability goals.

3. Resource Optimisation:

   • Establish rules for optimising resource usage, such as energy efficiency, water conservation, and waste reduction.
   • Monitor resource consumption and implement corrective actions when deviations occur.

4. Scenario Planning and Forecasting:

   • Define rules for scenario planning and forecasting to evaluate the potential impact of different sustainability strategies.
   • Use predictive analytics to forecast future sustainability performance based on current trends.

Examples

• Energy Consumption: Monitor energy consumption across all facilities and compare against predefined targets.

• Carbon Emissions: Calculate carbon emissions for each production process and ensure compliance with emission limits.

• Water Usage: Track water usage in manufacturing processes and identify opportunities for conservation.

• Waste Management: Monitor waste generation and disposal practices to ensure compliance with waste management regulations.

• Supplier Sustainability: Evaluate supplier sustainability performance based on predefined criteria (e.g. environmental impact).

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

Option A:  SAP Sustainability Control Towers (SCT)

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

ESG data, elements on basic reporting using tools creating KPI library.  This should be covered by SAP.  SAP lacks enhancement of this data SAP i.e. reporting layer including e.g. KPIs, emission factors as per toole Ecoinvent and 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. 

 Disclosure SCT was not to be solution.  

very limited AI, no disclosure tool, would require interface, requires custom integrations until S/4 is implemented. S/4 will bring SCT features.

Roadmap?

SAP overestimated level of integration which may be issue for disclosure.  Marginal only if Green Token or Green Ledger were implemented.  Emissions is game changer where solution is. 

Emissions mgmt in S4 would swing decision closer to SCT.

 SAP datasphere has no prepackaged off the shelf data for sustainability.

Possible to use Fabric as datalake, then SCT on top.

SAP Sustainability Control Tower enables you to track sustainable business operations across your
organization. You can use existing sustainability metrics and create your own and upload data for each. You
can set ambitions for your organization and track the progress over time. You can report on environmental
objectives defined by an EU-wide classification system. You can also use SAP Sustainability Control Tower for
GHG reporting in your company.

SAP Sustainability Control Tower is a cloud-native solution built on SAP Business Technology Platform (SAP BTP) and can be integrated with supported business systems such as SAP S/4HANA and others.  SAP SCT is a centralised platform designed to monitor, manage, and optimize sustainability initiatives across an organization. It leverages data analytics, real-time monitoring, and integrated systems to provide a comprehensive view of an organisation's sustainability performance.

Capabilities

1. Real-Time Data Monitoring:

   • Collect and analyze data from various sources, including IoT devices, sensors, and enterprise systems.
   • Monitor key sustainability metrics such as energy consumption, carbon emissions, water usage, and waste generation in real-time.

2. Integrated Systems:

   • Integrate with existing enterprise systems like ERP, supply chain management, and environmental management systems.
   • Ensure seamless data flow and consistency across different departments and functions.

3. Advanced Analytics and Reporting:

   • Use advanced analytics to identify trends, patterns, and anomalies in sustainability data.
   • Generate detailed reports and dashboards that provide insights into sustainability performance and progress towards goals.
   • Supply key performance indicators (KPIs) related to sustainability metrics, which are crucial for the Control Tower's dashboards and reports.

4. Predictive and Prescriptive Analytics:

   • Employ predictive analytics to forecast future sustainability impacts based on current trends.
   • Use prescriptive analytics to recommend actions and strategies to improve sustainability outcomes.

5. Compliance and Risk Management:

   • Ensure compliance with environmental regulations and standards.
   • Identify and mitigate sustainability-related risks, such as supply chain disruptions or regulatory changes.

6. Scenario Planning and Simulation:

   • Conduct scenario planning and simulations to evaluate the potential impact of different sustainability initiatives and strategies.
   • Make informed decisions based on simulated outcomes.

7. Stakeholder Engagement:

   • Facilitate communication and collaboration with stakeholders, including employees, customers, suppliers, and regulatory bodies.
   • Share sustainability performance data and progress with stakeholders to build trust and transparency.

Benefits

1. Enhanced Visibility:

   • Gain a holistic view of the organisation's sustainability performance, enabling better decision-making and strategic planning.

2. Improved Efficiency:

   • Optimise resource usage and reduce waste, leading to cost savings and improved operational efficiency.

3. Regulatory Compliance:

   • Ensure compliance with environmental regulations and standards, reducing the risk of fines and penalties.

4. Risk Mitigation:

   • Identify and address sustainability-related risks proactively, minimizing potential disruptions and negative impacts.

5. Increased Transparency:

   • Provide stakeholders with transparent and accurate information about sustainability initiatives and performance.

6. Strategic Advantage:

   • Enhance the organization's reputation and brand value by demonstrating a commitment to sustainability.
   • Gain a competitive edge by adopting sustainable practices that appeal to environmentally conscious consumers and investors.

Use Cases

1. Supply Chain Sustainability:

   • Monitor and optimise the sustainability performance of suppliers and logistics partners.
   • Ensure sustainable sourcing and reduce the carbon footprint of the supply chain.

2. Energy Management:

   • Track and manage energy consumption across facilities.
   • Implement energy-saving initiatives and renewable energy projects.

3. Waste Management:

   • Monitor waste generation and disposal practices.
   • Implement waste reduction and recycling programs.

4. Water Management:

   • Track water usage and identify opportunities for conservation.
   • Implement water-saving technologies and practices.

5. Carbon Footprint Reduction:

   • Monitor and reduce greenhouse gas emissions.
   • Implement carbon offset projects and renewable energy initiatives.

TAXONOMY

The EU Taxonomy Regulation establishes a common classification system for sustainable economic activities within the EU, designed to offer clear guidance to businesses and investors on what constitutes environmentally sustainable practices.

Organizations are required to report the share and absolute values of their turnover, CapEx, and OpEx that meet the EU Taxonomy's eligibility and alignment criteria. Set out through delegated acts, these criteria specify the range, methodology, and format for mandatory disclosures.

The EU Taxonomy identifies six environmental objectives:

1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems

To be recognised, activities must make a significant contribution to these objectives, not significantly harm any others, and comply with minimum safeguards concerning human rights, anti-corruption, tax compliance, and fair competition.

DATA MANAGEMENT

Channel to Import Data	More Information
File uploads	Import your data using files in the CSV file format, for example, to mass import your GHG emissions in the Collect Emission Data app or to upload data for measures in the Manage ESG Data app.
Integrations	Import your data through integrations with supported solutions.
SAP S/4HANA SAP S/4HANA Cloud	Use SAP S/4HANA to import financial data in the Manage ESG Data app. Using the Manage ESG Data App SAP S/4HANA Integration
SAP Datasphere	Import data from SAP Datasphere for any of the existing DPIs in SAP Sustainability Control Tower, for example, water withdrawal data in the Manage ESG Data app. Using the Manage ESG Data App SAP Datasphere Integration
SAP EHS Management, environment management	Leverage GHG emission data stored in and import it through the for a given time period. Using the Import Data from SAP EHS Management Application SAP EHS Management Integration
SAP Sustainability Footprint Management	Leverage GHG emission data calculated on the corporate and product level in SAP Sustainability Footprint Management. Using the Manage ESG Data App SAP Sustainability Footprint Management Integration
APIs	Import your data using APIs available on the Business Accelerator Hub.
Outbound API	For more information, see Outbound APIs.
Inbound API	For more information, see Inbound APIs.

“The Control Tower gives the impact overview, the Footprint gives the detail, but it is still using business averages to gauge how much carbon is being produced.  The aim is to help to move away from averages and start using actuals, to start getting sight of actual data from 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’.

While both SAP SCT and Greenomy offer valuable capabilities for sustainability management, SAP SCT may be better suited for large enterprises seeking a comprehensive, integrated solution that covers a wide range of sustainability metrics, advanced analytics, and industry-specific needs. Greenomy, on the other hand, excels in sustainability reporting and compliance, particularly within the context of the EU Taxonomy, and may be more suitable for organizations primarily focused on these aspects.

Ultimately, the choice between SAP SCT and Greenomy will depend on your organization's specific requirements, existing technology stack, and strategic goals. It may be beneficial to conduct a detailed assessment and possibly a pilot implementation to determine which platform best meets your needs.

INTEGRATION

SAP SCT integration with SAP SFM to communicate footprints calculated in SAP SFM:

SAP Sustainability Footprint Management enables you to calculate corporate footprints for a monthly periodicity.  SAP Sustainability Footprint Management provides an internal API with footprints aggregated at the level of a plant, period, GHG scope and GHG category. SAP Sustainability Control Tower uses this internal API for replicating the corporate footprints.

SAP Sustainability Control Tower works as self-contained solution. There is no explicit need for SAC and SAP Datasphere. When it comes to the simulation and forecasting capabilities, these capabilities are embedded via CPE, including data harmonization and modelling capabilities. For some use-cases, like data harmonization and aggregation from multiple source systems, it may be beneficial to use SAP Datasphere. For some advance analytics and data visualization features it may be beneficial to use SAC features.

It is possible to integrate SAP Analytics Cloud with SAP Sustainability Control Tower for real-time data access and dynamic visualisation. Currently supports only greenhouse gas (GHG) emissions data. Integration steps involves logging in to SAP Analytics Cloud, establishing a live connection, selecting SAP Sustainability Control Tower, and setting up a data model for building a dashboard.  With the integration of SAP Analytics Cloud, you can
• Establish live connections to your SAP Sustainability Control Tower tenants, enabling real-time access to data without the need for data replication or manual updates.
• Craft personalised stories within the SAP Analytics Cloud application, allowing for dynamic data visualisation and in-depth analysis tailored to specific business needs and insights.

REPORTS

There are report creation functionalities available through CPE – basically creating a form-based PDF. 

With the apps in the reporting tab pre-defined ESRS-aligned metrics can be explored and support generation of ESG reports with the help of AI.  Please note: The latter is a premium functionality for which you require an AI Units license.
Applications:

• ESRS Starter Pack with access to the ESRS Starter Pack Implementation Guide on the product page
• Using the Generate ESG Reports with AI Application

With the Generate ESG Reports with AI app, you can automatically create AI-based sustainability reports that help you get started on the journey of reporting in your company and you can report on your company's sustainability performance more efficiently. The tool is built into the app Generate ESG Reports with AI and is designed to support you by automating the reporting process across selected periods. It uses the ESG (environmental, social, governance) data that you have already provided to SAP Sustainability Control Tower and creates reports based on this data. These AI-generated reports are available for download in the .pdf format and follow the structure predefined in the chosen SAP-provided report template.

From the ESG data you have recorded in SAP Sustainability Control Tower, you can generate reports to use them as drafts to further work on them as needed for internal or external sustainability reporting. The application provides the following functionalities:

• SAP-provided templates: Reuse out-of-the-box templates to generate your sustainability report. You can preview the report templates to understand the basic structure of the report that will be generated out of your uploaded ESG data.
• Period selection: Report on your ESG data by choosing from three different period types: Year, quarter, or month. Only periods for which there is data in the system will be displayed.
• Report generation: Create your report from the chosen SAP-provided template and download it in the .pdf format.

SAP Sustainability Control Tower is designed to support you in your ESG (Environment, Social, and Governance) reporting journey by providing a set of pre-defined metrics aligned with the European Sustainability Reporting Standards (ESRS).

SAP Sustainability Control Tower offers Corporate Sustainability Reporting Directive (CSRD) coverage through European Sustainability Reporting Standards (ESRS) and EU Taxonomy. For reporting standards, SAP Sustainability Control Tower currently covers 88 metrics throughout the Environmental, Social, and Governance (ESG) areas. The solution is transitioning from supporting voluntary reports such as World Economic Forum (WEF) metrics to adopting ESRS, which can also support customers who are starting to address SEC regulations and ISSB standards. Please bear in mind that with the transition underway, some metrics are still in the process of fully aligning with the disclosure requirements of the ESRS definitions.

Currently, SAP Sustainability Control Tower supports quantitative metrics only. You can also attach the applicable assurance levels to these metrics in the Manage Metrics app in the section Assurance of each metric. For further enhancements, like qualitative metrics, refer to the SAP Road Map Explorer for more details.

App Manage ESG Data available to import your data.

Datasphere:

• Integrate with SAP Datasphere to replicate your data.
• The views used to import data from SAP Datasphere correspond to the data provider interfaces (DPIs) used in SAP Sustainability Control Tower.
• DPIs structure the data into different categories. DPIs are mapped from SAP Datasphere, in which the data is stored, to SAP Sustainability Control Tower.
• With the integration there is the ability to upload 20 custom dimensions for all available DPIs.

The following DPIs are available:

EHS Management:

• Integrate with SAP EHS Management, environment management to import activity data for tracking greenhouse gas (GHG) emission data.

• Integrate with the SAP EHS Management, environment management solution to import activity data for greenhouse gas (GHG) emissions into SAP Sustainability Control Tower.

With the integration of SAP EHS Management, environment management, it is possible to:

• Import your recorded GHG emissions from the SAP EHS Management system.
• Associate activity data with GHG scopes and sub-categories based on pre-defined classifiers.
• Assign emission data to business locations in SAP Sustainability Control Tower.
• Analyze emission data in the View Emission Dashboard app.
• Set and track your emission goals in the Our Ambitions app.

It is possible to import GHG emissions and offsets from calculation results, data collections, and location aggregations. For more information on the modelling of this data, see Manage Your Greenhouse Gas (GHG) Emission Inventory with SAP EHS Environment Management.
Restrictions include:

• Only data for the listed substance carbon dioxide equivalent in metric tons is imported.
• Of the GHG data classifiers in SAP EHS Management, a subset is supported.
• Only approved, non-preliminary data is imported.
• The data must be assigned to locations of type Site or Plant. 
• The import uses your SAP S/4HANA configuration for data replication to import calculation results, data collections, and location aggregations using CDS views. Data is imported only for the given time period. The replicated data is transformed and stored into the emissions DPI.

SAP SFM:

• Use this integration to reuse the GHG emission data you calculated in SAP Sustainability Footprint Management.
• With the integration of SAP Sustainability Footprint Management in the SAP Sustainability Control Tower solution, calculated greenhouse gas (GHG) emission data from SAP Sustainability Footprint Management can be reused on corporate level.

SAP SAC:

• Integrate SAP Analytics Cloud with SAP Sustainability Control Tower to access and visualize GHG emissions data in real-time. This integration allows for direct live connections, eliminating the need for data replication. Customize your analysis with dynamic visualizations tailored to your business insights. Note: Currently, only GHG data is supported.
• Dimensions currently supported:
  • Dimensions for Greenhouse Gas (GHG) Emissions

    Identifier	Description
    SAP_SCT_CNS_CV_ACTIVITY_TYPE	Activity Type
    SAP_SCT_CNS_CV_AIR_EMISSION_TYPE	Air Emission Type
    SAP_SCT_CNS_CV_ALLOCATION_METHOD	Allocation Method
    SAP_SCT_CNS_CV_DATA_CATEGORY	Data Category
    SAP_SCT_CNS_CV_EMISSION	Emission
    SAP_SCT_CNS_CV_EMISSION_POLLUTANT_TYPE	Emission Pollutant Type
    SAP_SCT_CNS_CV_ENERGY_CARRIER	Energy Carrier
    SAP_SCT_CNS_CV_ETS_INSTALLATION_TYPE	ETS Installation Type
    SAP_SCT_CNS_CV_GAS_TYPE	Gas Type
    SAP_SCT_CNS_CV_GHG_ACTIVITY	Emission Source Activity
    SAP_SCT_CNS_CV_GHG_DATA_TYPE	Emission Data Type
    SAP_SCT_CNS_CV_REMOVAL_ACTIVITY	Removal Activity
    SAP_SCT_CNS_CV_SCOPE	GHG Scope
    SAP_SCT_CNS_CV_SCOPE_SUBCATEGORY	GHG Scope Sub-Category
    SAP_SCT_CNS_CV_SRC_CATEGORY	Source Category
    SAP_SCT_CNS_CV_VALUE_CHAIN_STAGE	Value Chain Stage

Manage ESG app:

The app allows you to do the following:

• Import new data for measures and metrics using CSV files (templates are available in the app). File import is limited to a maximum size of 20 MB.
• Fix data for an existing measure (that is, correct already uploaded data) using CSV files.
• Import data from these SAP systems:
  • SAP S/4HANA or SAP S/4HANA Cloud: For the measure 'Amount'.
  • SAP Datasphere
  • SAP Sustainability Footprint Management: For GHG emission data, using the measure 'CO2e Emissions'.

  • Import data SAP EHS Management, environment management

• Download error logs: You can download and review error logs, helping you to identify and correct errors in your data.

• Validate your imported data, run custom metric calculations, and publish your data for use in other apps.

• View or export your imported data.

There are three tabs available in the Manage ESG app: Measures - Actuals, Custom Metrics - Actuals, and All Metrics - Targets.  It is possible to import from a file, fom a SAP System or export a template

SAP SFM:

Calculation results SAP SFM:

Import from SAP SFM to SAP SCM:

Data validation after import:

SAP SCT by location:

Ariba Integration via APIs allowing integration of supplier information, procurement data and Sustainability metrics:

1. Supplier Information Management

   • Data Exchange: SAP SCT pulls detailed supplier information from SAP Ariba, including supplier profiles, certifications, compliance records, and performance metrics.
   • Supplier Risk Assessment: SCT uses this data to assess and monitor supplier risks, ensuring that suppliers meet sustainability and compliance standards.

2. Procurement Data Integration

   • Purchase Orders and Invoices: SAP SCT integrates with Ariba to access procurement data such as purchase orders, invoices, and contracts. This data helps SCT track procurement activities and ensure they align with sustainability goals.
   • Spend Analysis: SCT uses procurement data from Ariba to perform spend analysis, identifying opportunities for cost savings and sustainable sourcing.

3. Sustainability Metrics

   • Supplier Sustainability Scores: SAP SCT imports sustainability scores and ratings from Ariba, which are based on supplier assessments and audits. This helps SCT evaluate the environmental and social impact of suppliers.
   • Compliance Data: SCT accesses compliance data from Ariba to ensure that suppliers adhere to regulatory requirements and industry standards.

4. Collaboration and Communication

   • Supplier Collaboration: SAP SCT facilitates collaboration with suppliers through Ariba's network, enabling real-time communication and data sharing. This helps in resolving issues quickly and improving supply chain transparency.
   • Feedback and Improvement: SCT uses feedback mechanisms within Ariba to gather supplier performance data and drive continuous improvement in supply chain processes.

5. Risk Management

   • Risk Indicators: SAP SCT integrates with Ariba to receive risk indicators related to suppliers, such as financial stability, geopolitical risks, and operational disruptions. This helps SCT proactively manage supply chain risks.
   • Mitigation Strategies: SCT uses this risk data to develop and implement mitigation strategies, ensuring a resilient and sustainable supply chain.

6. Sourcing and Procurement Optimization

   • Strategic Sourcing: SAP SCT leverages Ariba's strategic sourcing capabilities to identify and engage with the best suppliers, ensuring that procurement decisions are aligned with sustainability goals.
   • Contract Management: SCT integrates with Ariba's contract management module to ensure that contracts include sustainability clauses and compliance requi

REPORTING

With the Generate ESG Reports with AI app, you can automatically create AI-based sustainability reports that help you get started on the journey of reporting in your company and you can report on your company's sustainability performance more efficiently. The tool is built into the app Generate ESG Reports with AI and is designed to support you by automating the reporting process across selected periods. It uses the ESG (environmental, social, governance) data that you have already provided to SAP Sustainability Control Tower and creates reports based on this data. These AI-generated reports are available for download in the.pdf format and follow the structure predefined in the chosen SAP-provided report template.

From the ESG data you have recorded in SAP Sustainability Control Tower, you can generate reports to use them as drafts to further work on them as needed for internal or external sustainability reporting. The application provides the following functionalities:

• SAP-provided templates: Reuse out-of-the-box templates to generate your sustainability report. You can preview the report templates to understand the basic structure of the report that will be generated out of your uploaded ESG data.
• Period selection: Report on your ESG data by choosing from three different period types: Year, quarter, or month. Only periods for which there is data in the system will be displayed.
• Report generation: Create your report from the chosen SAP-provided template and download it in the .pdf format.

METRICS

The sustainability metrics in SAP Sustainability Control Tower support many of the core metrics defined in the European Sustainability Reporting Standards (ESRS). Additionally, the app Manage Metrics provides extensibility capabilities and enables you to add custom metrics, depending on your business needs.
Sustainability metrics are classified into four major areas:

• Environmental
• Social
• Governance
• Economic

Use these metrics to measure your organization's performance in the areas environmental, social, and corporate governance (ESG) as well as economic. The sustainability metrics allow you to identify trends over time, by showing how a specific metric's value has increased or decreased. Whether an increase or decrease is desirable, depends on the type of metric. For example, a decrease in CO2e emissions has a positive sustainability impact, whereas a decrease in community investments does not.
SAP Sustainability Control Tower provides 2 basic types of metrics:

• SAP-provided: Ready-to-use metrics whose details, for example, which measures or calculation method are used, cannot be further customized.
• Custom: User-defined metrics whose details can be customized based on your business needs. Custom metrics support the two subtypes Basic and Advanced.

The difference between the metric types is the following:

• Basic metrics don't require additional calculations based on measures. You can record them directly.
• Advanced metrics are calculated from data that you upload for the respective measures. This data is your actual data.
• Metrics regarding the EU Taxonomy are calculated through the technical screening criteria which serve to identify Taxonomy-aligned activities.

The metrics currently available as per SAP standard can be found in the references.

MEASURES

A measure is used to quantify a metric, depending on the measure's specific dimensions. For example, the measure Training Costs calculates the applicable value for the metric Training Expenditure across age groups, gender, and ethnicity.  The measures currently available as per SAP standard can be found in the references.

DIMENSIONS

Dimensions are attributes to the measures you create and serve to further define and specify the measures. SAP Sustainability Control Tower provides 2 basic types of dimensions:

• SAP-provided: Ready-to-use dimensions.
• Custom: User-defined dimensions whose details can be customized based on your business needs. Custom dimensions can be defined in the Manage Custom Dimensions app for the DPIs Generic, Emission, Injury, and People.

The dimensions currently available as per SAP standard can be found in the references.

Option B:  Microsoft Fabric

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

Queried during RFI in 2024 and performance was promising.  Proof of concept in Taveau site launched recently for two months.   Goal to automate the calculation and gathering, traceability of 20 environmental KPI from SERF.  Technical feasibility to create some insights.  Does it need to integrate with S4.  no emissions in SAP at the moment. Integrates with MES system now based on data lake project where data collected by sensor.  Data lake Startek.  Idea is to collect water flow taking flow combined with Labware for analytical with pollutant, results in KPI as Microsoft had pre-packaged solution.  

Fabric has many more functionalities.  KPI library in Sustainability. Its just performance.  In relation to disclosure look to Microsoft Purview compliance Manager.  SCT is last mile disclosure.  Possible to use Fabric as datalake, then SCT on top.  Maybe separate Disclosure and Data e.g. KPI library.  Could also put Greenomy on top of Fabric.  SAP Datasphere is an option instead of Microsoft datalake.  Microsoft cloud may be good move with regards to Microsoft workstations. 

Embedded AI capabilities superior.

Pilot in autumn to test automation of environmental metrics and modelisation for data cleaning and then consume clean data on corporate level.

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.

Option C:  Greenomy - Do nothing

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

Greenomy, on the other hand, excels in sustainability reporting and compliance, particularly within the context of the EU Taxonomy, and may be more suitable for organizations primarily focused on these aspects. Smaller scope plus AI as an option to combine with other tools for supplier interaction and environmental accounting. Risk of remaining a spot solution for compliance. Greenomy as short term solution, plug and play, so not overspend.  Quickest time for return, off the shelves.  For various reasons not signed in August yet. Committee will sign off in September 2024.

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

See also

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

ESRS_Starter_Pack__SAP_He-export.xlsx

SAP-Road-Map-Explorer-20241002145115.xlsx

Change log

Workflow history