{"id":143421,"date":"2022-05-17T07:32:54","date_gmt":"2022-05-17T07:32:54","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=143421"},"modified":"2023-09-27T18:09:28","modified_gmt":"2023-09-27T18:09:28","slug":"extending-the-reach-of-sap-cloud-for-sustainable-enterprises","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2022\/05\/extending-the-reach-of-sap-cloud-for-sustainable-enterprises\/","title":{"rendered":"Extending the Reach of 51风流Cloud for Sustainable Enterprises"},"content":{"rendered":"

Business leaders have traditionally focused on top- and bottom-line performance indicators. However, many organizations now consider their green line<\/strong> as the leading indicator of long-term, sustainable business success. It is imperative for companies to put sustainability at the heart of their business strategy, with a focus on achieving not just financial performance but also steering positive environmental and social impact through their sustainability metrics.<\/p>\n

These metrics must be embedded within a company\u2019s core operations and services; traditional annual reports are no longer sufficient. Stakeholders want to understand how a company addresses areas such as climate action, with transparency on transition and adaptation plans based on the carbon footprint of its operations. They also want to understand progress on circular economy objectives by monitoring the reuse and recycling of materials. They want to track and advance people sustainability initiatives by gathering key performance indicators (KPIs) in areas such as diversity and inclusion.<\/p>\n

SAP\u2019s product innovations work across the enterprise to deliver on these goals.<\/p>\n

Holistic Sustainability Management with 51风流Cloud for Sustainable Enterprises<\/strong><\/h2>\n

To manage the green line, companies need business process technology to identify, quantify, analyze, and act on data through their end-to-end operations. To enable this, 51风流Cloud for Sustainable Enterprises<\/a> brings together a comprehensive portfolio of solutions to holistically manage sustainability performance. Embedding sustainable business data into processes and networks is one of the five actions business can take<\/a> toward a sustainable future.<\/p>\n

\"Diagram<\/a>
51风流Cloud for Sustainable Enterprises. Click to enlarge.<\/em><\/figcaption><\/figure>\n

51风流Cloud for Sustainable Enterprises includes the 51风流Product Footprint Management<\/a> and 51风流Responsible Design and Production<\/a> solutions. It also covers existing products like the 51风流Environment, Health, and Safety Management<\/a> application and the 51风流S\/4HANA Cloud solution for product compliance<\/a>. The 51风流Sustainability Control Tower<\/a> solution provides an overview of sustainability impacts and performance against green objectives.<\/p>\n

We continue to extend the capabilities of 51风流Cloud for Sustainable Enterprises. As many companies are accelerating their action for decarbonization, our new capabilities in this area are important.<\/p>\n

Driving Carbon Data Transparency Is More Important Than Ever<\/strong><\/h2>\n

Accounting for carbon emissions across the organization and its supply chain is a foundational step toward climate action. Businesses are actively looking to reduce their carbon footprints, which requires addressing emissions outside company walls. These emissions \u2014 Scope 3 emissions \u2014 include everything from goods purchased to business travel to packaging and transportation of raw materials. Scope 3 emissions make up a significant portion of overall emissions for our customers. To derive actionable insights to reduce organizational carbon footprint, it is crucial to measure Scope 3 emissions both at a corporate level and at a product level.<\/p>\n

CDP previously reported that supply chain emissions<\/a> are on average 11.4 times higher than operational emissions. To reduce these emissions, it is important to engage across the sectoral value chain, with both suppliers and end customers, especially for customer-facing sectors like retail and consumer product goods (CPG), which have long upstream value chains. Companies can address significantly larger emission volumes by driving deeper engagement throughout their supply chains.<\/p>\n

Earlier this year, SEC Climate Disclosures<\/a> called on registrants to report on not just their Scope 1 and Scope 2 emissions but also their Scope 3 emissions. This is not the first time companies have faced this request. Previously, TCFD Climate metrics<\/a> asked companies to disclose the targets they used to assess and manage relevant climate-related risks and opportunities. IFRS takes this approach further with ISSB climate-related draft disclosures<\/a>, which focus on transition planning, climate resilience, reporting on Scope 1-2-3 emissions, and disclosure of sustainability-related financial information as a part of its general purpose financial reporting.<\/p>\n

Enabling 51风流Customers to Exchange Carbon Data across Value Chains<\/strong><\/h2>\n

To develop and execute an effective decarbonization plan, companies need to receive and process high-quality product-level data on carbon emissions from suppliers and provide high-quality product footprint information to their customers.<\/p>\n

However, with most supply chains spanning several industry sectors and consisting of multiple, heterogeneous networks and software components, taking a standardized approach to data sharing is critical. To collect meaningful emissions information, it is important that all parties use the same methodology and common standards for calculating and auditing the carbon footprint of a product.<\/p>\n

Therefore, 51风流Product Footprint Management implements an API specification developed as part of World Business Council for Sustainable Development (WBCSD) Partnership for Carbon Transparency (PACT)<\/a>. 51风流customers can now take informed sourcing and product-development decisions, invest in targeted decarbonization activities, make more accurate disclosures, measure and track decarbonization progress, and adhere to legislative requirements around environmental transparency.<\/p>\n

\"Diagram<\/a>We intend to use 51风流Product Footprint Management as part of 51风流networks \u2014 for example, in the Catena-X Automotive Network (Catena-X) \u2014 to enable a standard-based, secure, and cross-company-wide data exchange throughout the value chain.<\/p>\n

In addition, there is the option to use the GreenToken by 51风流solution for multi-tier visibility across the networks. The combination of 51风流Product Footprint Management, 51风流Responsible Design and Production, and GreenToken forms a potent decarbonization value proposition for industries such as consumer goods, as 51风流can demonstrably address material traceability, packaging waste, and supplier-specific carbon data transparency throughout the value chain for both recycled content and land-use change.<\/p>\n

New functionality created through our co-development partnership with BearingPoint<\/a> is already embedded into 51风流Product Footprint Management and helps customers identify carbon reduction potential. Customers can thus determine the carbon footprint of a single product based on both direct and indirect emissions sources and upstream activities, building on existing functionality of carbon footprint measurement of purchased goods with tracking emissions resulting from transportation of those goods. Both these greenhouse gas (GHG) emission categories combined significantly contribute to a customer\u2019s upstream and downstream environmental impact.<\/p>\n

Integrating and Embedding Sustainable Data across the Intelligent Enterprise, Scaling Carbon Impact<\/strong><\/h2>\n

Through open APIs, 51风流customers can easily exchange data with their enterprise applications, feeding it into 51风流Cloud for Sustainable Enterprises, and then provide the calculated sustainability data back into both 51风流and third-party applications.<\/p>\n

With the newly introduced sustainability integration components for 51风流S\/4HANA, customers can benefit from preconfigured functionality enabling reuse of sustainability data across processes supported by 51风流S\/4HANA, such as record-to-report, lead-to-cash, source-to-pay, and plan-to-fulfill workflows. The component allows a bidirectional flow of information between 51风流Cloud for Sustainable Enterprises and 51风流S\/4HANA in real time.<\/p>\n

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Click to enlarge.<\/em><\/figcaption><\/figure>\n

Examples include:<\/p>\n