Understanding Capabilities of SAP Sustainability Footprint Management

Objective

After completing this lesson, you will be able to explain how SAP Sustainability Footprint Management enables you to measure carbon footprints on a product, corporate and value chain level.

Overview

In this lesson, we'll deep dive into the capabilities of SAP Sustainability footprint Management to understand how it's used to calculate, monitor, and analyse carbon footprints on a product, corporate, and value chain level.

You can divide the capabilities of SAP Sustainability Footprint Management into five major steps along the footprint calculation journey:

  • Acquire master and transactional data from your connected business system.
  • Combine the acquired data with emission factors to evaluate the environmental impact.
  • Based on the environmental impact, the application calculates the sustainability footprints.
  • Analyze the calculated footprints in detail.
  • Re-integrated the footprints into connected business systems.
The image illustrates the SAP Sustainability Footprint Management process, detailing five key stages: Data Acquisition, Emission Factors Management, Footprint Calculation, Footprint Analytics, and Footprint Integration. It highlights existing and planned capabilities.

Let's deep dive into each of the capabilities of SAP Sustainability Footprint Management.

Data Acquisition

You can save time and manual efforts with automated integration of actual business and supplier data. SAP Sustainability Footprint Management provides flexible options for data formats and uploads. To acquire data in SAP Sustainability Management, you can utilize the following capabilities:

  • SAP S/4HANA Integration: SAP Sustainability Footprint Management offers various options to reuse ERP data, including master data and transactional activity data (material movements). It integrates with SAP S/4HANA Cloud and SAP S/4HANA (2021 and later).
  • Connect ERP via API and File Uploads: You can connect to any ERP system via Public APIs or import data from any source via file upload such as excel file uploads. For example, you can import freight transport specific master data entities via file upload.
  • Manual Data Collection: You can use the newly added capability of form-based data collection for calculating corporate and product footprints. It's now possible to enter data about business activities, such as waste, directly into the system by filling in forms.
  • Import data from SAP EHS Environment Management: You can import direct and indirect emission data from SAP EHS Environment Management to calculate corporate and product footprints in a legal and regulatory compliance driven manner.

The following figure depicts the business transactional data entities that are replicated from the connected source system (such as SAP S/4HANA) to be leveraged in the footprint calculation in Sustainability Footprint Management.

Screenshot of the SAP Sustainability Footprint Management interface for January 2024. The status is marked as Completed for the ChocoMagic Footprint (CMFP) inventory scope. The Business Transactions section lists various transaction types, all marked as Completed, with details on the number of records and timestamps for when the import started and finished

Follow the links to read more about the entities Master Data Entities | SAP Help Portal and Business Transaction Entities | SAP Help Portal available for import.

Emission Factors Management

After importing business data from your ERP system, SAP Sustainability Footprint Management helps evaluate the environmental impact of this data by importing and managing emission factors. For importing emission factors to calculate footprints at scale across the entire product inventory, you can use the following datasets:

  • Lifecycle Assessment (LCA) Data: You can use industry averages from third-party content providers, upload your own data packages, or use preconfigured data packages (for example, EPA, GLEC) for maximum flexibility and consistency status.

  • Supplier dataset: You can use primary data by directly importing footprints from suppliers. You can use the primary data either through an integration with SAP Sustainability Data Exchange (PACT V2) or use direct entry, file upload, and push API.

For mapping imported emission factor datasets, you can use Generative AI for mapping those to the replicated ERP data. This automates the mapping process, minimizing manual effort and enhancing the accuracy of result.

The figure depicts the AI mapping results with the respective similarity score, indicating the quality of the mapping.

The image shows an SAP interface for managing the carbon footprint of purchased cow milk, including business data, plant assignments, and emission dataset information with various footprint suggestions and their respective emission factors. The data comparison details section lists parameters such as name, location, and commodity code.

Footprint Calculation

SAP Sustainability Footprint Management allows hybrid carbon calculation combining averages and actuals, leveraging verified business, primary and secondary data with flexible calculation methods. You can calculate and monitor footprints according to defined inventory scopes, energy flow models and allocation rules. To calculate and investigate carbon footprints, you can use the following functionalities of SAP Sustainability Footprint Management:

  • Manage Footprint Inventory Scopes: You can maintain individual inventory scopes in the system for companies, plants, and value chain to define the organizational boundaries for footprint calculation. It involves listing all data sources and using flexible calculation methods for different GHG categories. This ensures that the footprint calculations are comprehensive and tailored to the specific needs of the organization.

  • Model Energy Flows and Allocations: You can use the energy flow model for each energy carrier and resource in your production line or facility. You can then use those models or create custom rules to allocate energy consumption and assign emissions to the manufactured products.

  • Calculate Product and Carbon Footprints: You can calculate both corporate and product-specific carbon footprints based on the defined scope. To do so, you can use transactional data to scale the calculations and provide detailed results. This helps organizations in tracking their carbon footprint accurately and making informed decisions to reduce their environmental impact.

  • Use Sankey Diagrams: You can use a Sankey Diagram, which is the core tool for investigating emission results. It offers transparency on input factors, such as purchased energy. You can explore various levels of detail, including calculation data and formulas, to understand the carbon footprint emissions.

    A screenshot of an SAP production dashboard for PD_SunnyBar at ChocoMagic HQ in August 2023, showing a successful status with a total CO2e of 53.85412 tons and input materials including cocoa, sugar, cow milk, packaging, and assembly. The output is 53.85412 tons of SunnyBar.

Footprint Analytics

You can analyze calculated footprint in various dashboards to gain full transparency and valuable insights across the company, products, and value chain on a granular level. SAP Sustainability Footprint Management provides the following functionalities for analyzing carbon footprints:

  • Dashboards and corporate balance: You can gain full transparency through comprehensive dashboards showcasing hotspots via various breakdowns. You can also drill down to emissions across all Greenhouse Gas (GHG) scopes and the C02 equivalent (CO2e) balance for all inflows and outflows.

    A Sankey diagram from SAP displays corporate balance emissions, categorizing them into direct, purchased, and indirect value chain emissions, with total emissions amounting to 375.49 tons. The diagram further breaks down emissions into closing product inventory and non-product emissions.
  • Transport routes and emissions: You can visualize and analyze all your inbound and outbound transport routes and legs for respective emissions on various charts and on a world map.

  • Analytical APIs: You can incorporate calculated footprints into your preferred analytical application, such as SAP Analytics Cloud or non-SAP solutions via the ODATAV4 API.

    Dashboard showing ChocoMagic's GHG emissions for January 2024, totaling 59.55 tons, with breakdowns by scope, emission trends, and top products contributing to emissions.

Footprint Integration

You can build decarbonization directly into the core business processes by integrating the results into supply chain planning, procurement, and SAP Sustainability portfolio. You can integrate results from SAP Sustainability Footprint Management into the following systems:

  • SAP S/4HANA Cloud, public edition and SAP S/4HANA: You can leverage SAP Sustainability Footprint Management’s integration with SAP S/4HANA Cloud, public edition and SAP S/4HANA for embedding footprint information into business processes. This helps display footprints of Purchase Requisition and Purchase Orders along with financial values. You can also gain insights into the environmental impact of the stocks overseen by the inventory manager.

    A SAP dashboard displays purchase requisition items with a bar chart showing total value and CO2e footprint for various materials, and a detailed table listing requisition items, quantities, prices, and suppliers.
  • SAP Integrated Business Planning (IBP): You can monitor the emissions of your plants to make them visible in the production plan.

  • SAP Sustainability Control Tower: You can integrate the calculated corporate footprints into Sustainability Control Tower for holistic Environmental, Social and Governance (ESG) reporting.

  • SAP Sustainability Data Exchange: You can share the calculated product footprints with your customers in a standardized, scalable, and PACT aligned way.

Data Integration with SAP Sustainability Footprint Management

You can integrate SAP Sustainability Footprint Management with various SAP and third-party business systems and applications to track your organizations carbon footprints.

The image illustrates the components of SAP Sustainability Footprint Management, highlighting its integration with SAP S/4HANA Cloud, SAP S/4HANA, SAP Sustainability Control Tower, and SAP Sustainability Data Exchange.

SAP Sustainability Footprint Management allows organizations to track their carbon footprints at product and corporate level.

The video provides an overview of how SAP Sustainability Footprint Management uses input data from various source systems and supports organizations to account for their carbon footprints.

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