Sustainability - At Heart
Enterprises aspire to attain net-zero emissions throughout their value chain in the near term, placing a premium on sustainability at the core. Moving beyond mere reporting, they leverage ERP data to guide business operations comprehensively with SAP sustainability solutions. Follow along as our model company S.Tech brings out its efficiency.
Showcase Circular Economy
Introducing circularity concepts, S.Tech initiates the reuse of components for future products. Discover how S.Tech is pioneering new business models and setting the path for a sustainable business in the high-tech industry.
S.Tech has set ambitious goals to achieve net-zero in 2040, starting with its commitment to embed circularity into its core business processes. To build a regenerative business of sustainable reuse in the high-tech industry, the company’s next step is to considerably enhance the reuse rate of components for manufactured goods.
Upon closer examination, the current number of components dismantled from old products for the reuse in new products appears to be below target, making it a priority for intervention.
When introducing circularity into its operations, S.Tech approaches the topic from two important perspectives: analyzing both the environmental and financial impact of its carbon reduction measures. With the help of SAP Sustainability solutions, S.Tech can transform carbon accounting and pioneer end-to-end carbon management to realize a green ledger. SAP Green Ledger solution is a true double-entry bookkeeping application that connects finance and CO2e and helps companies to steer its business toward net-zero emissions by planning and maintaining CO2e budgets while keeping on track of the financial goals by simulating, analyzing, and planning impacts on margins and operating income.
The data reveals a clear pattern: Non-reused products carry significantly higher costs, particularly in terms of CO2 compensation and taxation.
To scope decisions with clear focus on financial impact, S.Tech prioritizes reuse as a first circularity strategy. With a successful campaign of global reach, it invites loyal customers to return their old products for re-manufacturing.
Upon receiving declared products from customers for reuse, S.Tech initiates an automatic dismantling process utilizing SAP Digital Manufacturing solution. The process begins with Printed Circuit Board (PCB) loading, which involves initially loading the electronic device into the system, followed by a visual inspection, and a series of heating processes to loosen and carefully remove the components without damage. After dismantling, components are sorted using an intelligent algorithm to separate and prepare chips for reuse in new devices.
Re-purposing valuable microchips for future products promotes a sustainable and ecofriendly approach, extending component lifespans, reducing waste, and streamlining manufacturing processes.
Showcase Sustainable Procurement
Reducing Scope 3 carbon emissions is a critical focus for companies, as they often constitute the largest portion of emissions. Discover how S.Tech prioritizes sustainable procurement strategies and targets emission hotspots to ensure product availability.
ESG Goals - Company Ambitions
S.Tech has set ambitious goals to achieve net-zero in 2040, starting with a focus on reducing greenhouse gas emissions. Using SAP Sustainability Footprint Management, it can visualize emissions across different scopes, providing insights into their origins, offering a clearer understanding of their pathways.
Upon closer examination, Scope 3.1 from "Purchased goods and services" emerges as a significant hotspot, making them a priority for potential intervention.
Holistic Spend Data
Let’s dive deeper into the realization of a data-driven net-zero strategy. As a first stop, SAP Spend Control Tower provides an enterprise view on all spend data, integrating various spend sources: SAP Ariba, SAP Concur, SAP Fieldglass, cloud ERP with SAP S/4HANA Cloud and even third-party ERP solutions. This spend view can be combined with emission data, coming from SAP Sustainability Footprint Management.
Smart Category Management
Noting that the category of heat sinks has optimization potential, the category manager begins crafting a strategy to meet Scope 3 decarbonization goals within procurement.
Managers are guided through a step-by-step-process and supported by generative AI capabilities to generate category segmentation, cost structure, and market dynamics. Tasks that typically take days or weeks as they require extensive research. What a timesaver!
Initiate Sourcing Event with Joule
To put that strategy into execution, a sourcing event can directly be created from the initiative using the AI assistant Joule. Joule leverages information from category initiatives and historic sourcing data and helps in recommending suppliers who meet the criteria for low-carbon emissions and cost savings considerations.
Choosing sustainable options so early in the strategic sourcing process paves the way for a massive carbon reduction throughout the entire operational procurement and manufacturing processes.
Showcase Green Energy Transformation
Given the energy-intensive nature of its operations, S.Tech needs to be proactive in identifying opportunities for optimizing energy consumption and implementing efficient practices to reduce its Scope 2 emissions.
Explore its journey forward as they transition to green energy production and sustainably meet global energy demands. Take a look on our showcase for that.
Showcase Future of Mobility
Future Mobility means delivering exceptional sales experiences and revolutionizing customer service management by creating meaningful connections throughout the customer journey of a modern, energy-conscious consumer and his full-service energy provider.
Curious to learn more?
Click here to visit our showcase.