Managing Source Data

The process involves calculating Scope 1 and Scope 2 emissions by utilizing an Energy Flow model that correlates emissions to specific resources, for instance, energy sources, fuel types, etc.

First, resources are automatically correlated to Production Documents using Service Confirmations. Service Confirmations contain details about the resources used for manufacturing goods documented in the Production Documents.

Next, the emissions associated with each Production Document are automatically distributed across the individual product footprints. This distribution is based on either the quantity produced of each product, or the economic value of each product using the transactional data such as Goods Receipt from production.

This provides visibility into the emissions footprint all the way from the original resource, through the manufacturing processes, down to the level of each individual product's carbon impact proportional to its production or economic metrics.

In this lesson, you will deep dive into the first three steps of the overall process flow.

Almika Foods is a bakery chain with multiple production lines in its factory located in Germany. The company wants to track the carbon emissions associated with its products to improve sustainability and comply with environmental regulations.

Suppose the bakery shops across Germany raise orders in advance for various products like strawberry cakes and chocolate cakes. These orders are consolidated and converted into production documents, specifying the quantities of each product to be manufactured.

The production document triggers the material management department to issue the required raw materials (for example, wheat, sugar, cocoa, strawberries) for the production order.

This process is known as "goods issue for production," where the raw materials are allocated to the specific production document.

The production process typically involves multiple activities or steps, such as mixing the ingredients, baking in the oven, and adding toppings or frosting.

Each activity performed on the production document is captured as a "service confirmation," which records the resource (for example, oven, shaping machine) consumed and the duration of its usage.

Upon completion of the production process, the finished goods (for example, cakes) are received and recorded as "goods receipts from production" against the same production document.

For instance, if 100 kilograms of raw materials were used to produce 10 pieces of cake, the production document will reflect this conversion ratio.

Now, the SAP Sustainability Footprint Management solution integrates with the ERP transactional data, including the production document, goods issue, goods receipt and service confirmations.

You can use SAP Sustainability Footprint Management to replicate the production document from the ERP system and associate the energy flow model emissions from the energy source to the specific resources (for example, machines) used in the production process.

Then, using SAP Sustainability Footprint Management, you can allocate the emissions resulting from the consumption of resources (for example, gas used for 100 hours to produce 10 pieces of cake) to the finished goods based on the conversion ratio and production data.

By implementing this process, Almika Foods can accurately track and attribute the energy emissions associated with each production order, enabling them to monitor their environmental impact, identify areas for improvement, and make informed decisions to reduce their product carbon footprint.

Step 1: Upload Master Data

For calculating GHG Scope 1 and 2 emissions using energy flow model and correlating the emissions to resource and finally the product, you begin by uploading the master data and setting organizational boundary information for companies, plants, production documents, resources and activities. This master data serves as the foundation for the subsequent steps.

Here is a screen indicating imported production documents.

Here is a screen indicating imported resources.

Here is a screen indicating imported activities.

Step 2: Define Footprint Inventory Scope

Next you define the operational boundary by selecting the value chain step focusing on direct emissions and energy consumption. This determines the scope of the emissions and energy consumption calculations.

Step 3: Create Calculation Variant and Select Production Document Emission

Then as the third step, you create calculation variants. A calculation variant is created for energy consumption and distribution. When selecting energy consumption and distribution, you have two options: "Distribute Total Energy Consumption" and "Use Only Planned Energy Consumption Rates".

The first option, "Distribute Total Energy Consumption", functions as a superset configuration. If you have meters, it allows you to distribute the total energy consumption to resources using those meters. If no meters are available, you can still distribute the total energy consumption to resources using the planned energy consumption rates. However, if you select the second option, "Use Only Planned Energy Consumption Rates", you will distribute the total energy consumption to resources exclusively through the planned energy consumption rates, disregarding any meter data.

Additionally, you select the production document emission distribution to products based on either quantity or economic value of the product.

Note

When you have a co-product in your production process, resulting in multiple goods entering through the goods receipt document, you can allocate the co-products using either "Economic Allocation" or "Physical Allocation". This is important if you intend to sell the co-product in the market. In such cases, you can choose to allocate energy consumption based on the co-product's weight (Physical Allocation) or its cost (Economic Allocation).