Managing Source Data

Objective

After completing this lesson, you will be able to setup source data related to purchased goods and services.

Overview

You have already seen how to calculate the Greenhouse Gas (GHG) scope1, scope 2, and scope 3.3 emissions with energy flow model. The focus of this training is on calculating GHG scope 3.1 emissions using purchased product footprints.

In this lesson, you'll learn to set up source data related to purchased goods and services using average data and spend-based method, which is a specialized calculation approach to calculate footprint for purchased products.

Calculating GHG Scope 3.1 Emissions for Purchased Product Footprint Using Average Data and Spend-based Method: Process Flow

You understand that to begin the process of calculating GHG emissions for each scope, you first import the necessary master data to define the organizational boundaries of the companies and plants involved. When calculating GHG scope 3.1 emissions for purchased product footprints, you also import transactional data such as goods receipt from suppliers indicating product group, product, custom unit of measure, and currencies.

Next, define the footprint inventory scope to set the organizational boundary and pick the value chain steps relevant to product acquisition. In the calculation variant, choose the fallback boot strap strategy for purchased product footprint for all supplier-related transactions.

Then, upload the secondary emission factor packages from sources like Ecoinvent, Exiobase, and Carbon Minds, or reuse the United States Environmental Protection Agency default emission factor packages.

After that import or replicate business transactions such as goods receipts from supplier data for all relevant periods. Ensure the amount and quantity are available in transactional data replicated from SAP S/4HANA.

In the Manage Purchased Product Footprint app, identify the products or product groups that currently do not have an assigned carbon footprint. Generate the mapping for these products using the artificial intelligence (AI) capability. Review the recommended mappings provided by AI and select the ones that fit best with your business scenarios. Release and assign these selected footprints to the respective products. If the system cannot automatically map certain products or if none of the AI suggestions fit your business scenario, manually assign the emission factors to the purchased products.

Next, you can choose the spend or average data calculation method based on the AI mapping recommendation.

Note

If you choose not to use the AI mapping recommendations, you have the option to proceed manually. Use the Manual Mapping wizard provided by the SAP system to manually search for and select the appropriate emission factors. This involves finding the right emission factors and ensuring that they are correctly mapped to specific combinations of material, supplier, and plant. This allows for accurate tracking of emissions per these specific combinations.

Alternatively, you can also maintain and import emission factors via the Excel template provided in the solution.

Then, create a periodic inventory of your footprints and perform calculations on the recorded footprint data to generate results. Review the calculated footprint results to ensure accuracy and completeness. This allows you to track and analyze the carbon footprint over time and make necessary adjustments.

Note

If you have manually assigned footprints to purchased products, ensure that all data is accurately entered and up to date. Before calculating periodic footprint inventory, confirm that the transactional data from goods receipts is imported into the system correctly. This data is crucial as it provides the product quantity and other details needed for accurate footprint calculations.

In this lesson, you'll focus on first four steps of the overall process flow.

A flowchart outlining the steps to calculate a product's carbon footprint. Key actions include data uploading, mapping, and calculation. The process involves defining scope, selecting acquisition methods, and choosing between AI or manual mapping for emission factors. The first four steps of the process flow which are uploading master data, defining footprint inventory scope, uploading emission factor packages and uploading goods receipt are highlighted with a dotted line.

You have already learned to import master data in the beginner learning journey. You will now see how to set the footprint inventory scope for purchased product footprint.

In the system, when setting the footprint inventory scope, select the value chain step as Product Acquisition.

A screenshot showcasing the SAP software interface with the Product Acquisition value chain step selected. The interface allows users to define boundaries for footprint calculations and provides options for data collection forms, GHG categories, calculation methods, and data collection guidance.

Import Business Transactions

Business transactions occurring within a company are crucial for calculating emissions. For instance, receiving goods from suppliers increases corporate emissions, while selling goods to a customer reduces corporate emissions within a given period. Therefore, you must replicate business transactions relevant to emission calculations in the application.

To import business transactions necessary to calculate the footprints for organization, use the app Import Business Transaction.

The imported business transactions for AlmikaSoft’s Berlin plant are shown here.

A screenshot of an SAP business transaction, specifically a completed goods receipt from a supplier. It details 19 consistent items, all destined for Berlin HQ, including monitors, IT services, and laptops. The import finished on August 9, 2024.

Manage Supplier Footprints and Emission Factors

An important factor to calculate emissions are footprints that are associated to the products that are purchased from external suppliers.

AlmikaSoft has products and services that they purchase from their suppliers or service partners. The purchased products and services have their respective CO2e emissions that need to be maintained in the system.

The video shows how AlmikaSoft maintains the footprints of products purchased from suppliers and manage respective emission factors.

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