Explaining Sustainability Management with SAP

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Describe SAP's Sustainability Management strategy
  • Outline SAP Responsible Design and Production
  • Outline SAP Product Footprint Management

Sustainability Management with SAP

Business Introduction

Your organization wants to become more sustainable. There are many pathways to this important goal: you could to reduce the carbon footprint of your products, you could design out waste, drive social responsibility initiatives. Lastly, you’d want to report on these measures holistically to regulators, investors and your customers.

Position of Sustainability Management

What is SAP's Sustainability Management strategy?
SAP's goal is to support your sustainability needs with new software solutions and by including sustainability management capabilities inside existing products.

In our modern world, sustainability is more important than ever before. SAP offers solutions and has a strategy for how our software can help you with your sustainability goals.

Sustainability is not only about carbon neutrality, it is also about the value of our resources and a respectful and ethical cohabitation in our civilization.

You can read an article from Thomas Saueressig which explains SAP's sustainability winning plan here: https://news.sap.com/2021/09/building-solutions-future-arrived/

Sustainability Management

Many businesses must mange the green line (Environmental Responsibility) with no dedicated sustainability experts, minimal IT resources, and without losing business momentum. This drives the need for a systematic solution.

As a result all business interests like efficiency and growth should be in line and optimal balanced with sustainable interests like environmental responsibility.

Climate Action – Chasing Zero

Holistic Steering and Reporting - Build Trust with Transparency

Move beyond financial measures to evaluate the consequences of business actions on society, the environment, and the wider economy - adding a green and social dimension to finance reporting with SAP solutions like:

SAP Sustainability Control Tower
Extend transparency across financial, operational, compliance, environmental, and social parameters
SAP Profitability and Performance Management
Steer sustainability performance by creating business models that align profitability with sustainability

To ensure your enterprise acts sustainably, you need to build up the foundation of an intelligent, sustainable enterprise. The underlying components which you should already know from the previous chapters are: SAP S/4HANA Cloud, SAP Business Technology Platform, SAP Analytics Cloud, and more.

SAP Cloud for Sustainable Enterprises is based on our intelligent, sustainable enterprise concept with the foundation of SAP S/4HANA and the SAP Business Technology Platform. Software that is integrated and can talk to each other enriched with special software for sustainability topics. It offers functionalities to be more responsible with the resources we use or managing the carbon emissions of products and companies.

It is obvious in the field of sustainability that no one company can fix the big problems on their own. Companies need to work in groups to tackle problems – in other words a network of intelligent, sustainable enterprises which is connected and integrated.

Learn more about Sustainability Management with SAP: https://www.sap.com/products/sustainability.html

Outline SAP Responsible Design and Production

SAP Responsible Design and Production Overview

With SAP's cloud solution SAP Responsible Design and Production, you can manage your Extended Producer Responsibility(EPR) tasks easily. You gain the ability to calculate and report on EPR fees, plastic taxes, and corporate commitments through connecting existing primary data, structures, and business logic in SAP ERP and SAP Product Lifecycle Management to your SAP Responsible Design and Production. In addition to that, you are able to connect third party systems to gather data or even Microsoft Excel template files provided by SAP Responsible Design and Production. With SAP Responsible Design and Production, you can analyze the impact of regulations on product and packaging material scenarios or monitor your global reporting requirements for EPR schemes, plastic taxes, and public commitments.

SAP Responsible Design and Production is the right choice to calculate your EPR obligations, plastic taxes, and corporate commitments to optimize the material choices four your company and products.

Note
EPR: Extended Producer Responsibility - a concept where manufacturers and importers of products should bear a significant degree of responsibility for the environmental impacts of their product

SAP Responsible Design and Production: Analyze EPR Data

The Analyze EPR Data application provides an overview of EPR and tax relevant data. In the Analyze EPR Data application, you can save your view configuration. You can also share your view configuration with other users or use view configurations published by other users. In order to respond to ad-hoc inquiries regarding packaging report data from different stakeholders, the application allows to monitor the reporting results and drive analysis based on different filter criteria. For example, the bar chart displays the packaging weights grouped by material fractions for a Netherlands report configuration. Moreover, visual filters in the upper area allow to further filter the data shown below. You can save your view configuration and filter combinations and also share your view configuration with other users or use view configurations published by other users.

Learn more about SAP Responsible Design and Production here: https://www.sap.com/products/responsible-design-and-production.html

Or look up information in the product documentation: https://help.sap.com/docs/SAP_RESPONSIBLE_DESIGN_AND_PRODUCTION/01d581e7150c42f59b5234a76f5e8d2d/ebc5d85b618f492790229b23156b771d.html?locale=en-US

Outline SAP Product Footprint Management

Why we should care about Product Carbon Footprints

The production of nearly every product and even the use of a specific product causes a carbon footprint. Your company should monitor these carbon footprint for all of your products. This monitoring offers the possibility to optimize your product life cycles to decrease the amount of created greenhouse gas emissions. That is where SAP Product Footprint Management comes up. With SAP Product Footprint Management you can monitor and manage your carbon footprints. Based on these insights you are able to optimize your greenhouse gas emission while your product life cycles.

SAP Product Footprint Management: Overview

Learn more about SAP Product Footprint Management here: https://www.sap.com/products/product-footprint-management.html#:~:text=SAP%20Product%20Footprint%20Management%20is,internal%20product%20and%20process%20optimization. You can also watch this short overview video: https://www.youtube.com/watch?v=xtMaubgYT_0

SAP Product Footprint Management: Analyze Carbon Footprint

After having collected business data and relevant emission factors the foundation is laid for the calculation of the footprints. SAP Product Footprint Management offers a preconfigured calculation template to define the scope you want to include in the calculation. The template selects a subset of business activity data needed for the calculation run. For material acquisition, this data includes quantity of purchased materials from suppliers, stock transfers from other plants, and purchased materials consumed in manufactured products for the period. The products are then associated with the emission factors from the LCI database to enable bottom-up footprint calculation. This association is done via preshipped templates of mapping tables, which can be configured by sustainability experts allowing them to determine the best match of business data and emission factors based on material, supplier, country, and material commodity code characteristics.

After successfully run the calculation, the Monitor Footprints application lets you view the calculated footprint results. The footprint results are displayed per product type, per unit, and in total and are broken down on different granularity levels like, for example, suppliers of purchased materials. Moreover, a consistent monthly average is calculated automatically. You can as well compare the footprints across the periods so that you can observe trends. To make the footprints available in SAP S/4HANA Cloud or to SAP S/4HANA, this application also let you publish the footprints to these business systems.

Read more about SAP Product Footprint Management in the official product documentation here: https://help.sap.com/docs/SAP_BTP_PFM?locale=en-US

Key takeaways of this unit

The basic idea is to add a green line for environmental responsibility next to your bottom line for the operational efficiency and the top line for growth and adaptability. The goal is to keep these three lines in an optimal balance. With sustainability management, SAP offers features inside of already existing SAP solutions that can track or optimize your sustainability goals. In addition to that, SAP offers several standalone solutions for different sustainability based use cases like SAP Product Footprint Management or SAP Responsible Design and Production. SAP is also adding capabilities to make holistic sustainable reporting possible.

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