Managing Business Activity Types and Business Activities

Objective

After completing this lesson, you will be able to explain the role of business activity types and business activities for GHG reporting.

Business Activity Types and Business Activities

SAP Sustainability Control Tower provides a centralized platform for collecting, analyzing, and reporting GHG emissions data. Business activity types and business activities play a crucial role in structuring and organizing this data for effective reporting and analysis. Business activities are specific instances of business activity types that occur within an organization. For example, a specific business trip or a particular fuel combustion process are considered business activities. Business activities are linked to business activity types to provide context and detail for emission data.

A group of such business activity types is concerned with recording GHG emissions. Business activities can be collected per GHG scope and associated scope category.

Key Differences Between Scopes

GHG emissions are classified into three scopes - Scope 1, Scope 2, and Scope 3. The differences between the scopes are as follows:

 Source of emissionsLevel of controlComplexity of measurement
Scope 1Come from sources directly owned or controlled by the companyCompanies have direct controlEasier to measure as they come from sources that are directly owned or controlled by the company
Scope 2Come from purchased energyCompanies have indirect controlNot easy to measure as they come from sources that are indirectly controlled by the company
Scope 3Come from other indirect activitiesCompanies have limited or no controlNot easy to measure as they come from sources over which companies have limited or no control

Companies consider all three scopes when accounting for their GHG emissions to get a comprehensive understanding of their environmental impact. Scope 1 emissions are often the most significant, but Scope 2 and Scope 3 emissions can also be substantial and should not be ignored.

The View Emission Dashboard

Many countries and regions have regulations that require companies to report their GHG emissions. The scope of emissions that must be reported can vary depending on the specific regulations. For example, some regulations only require reporting of Scope 1 and Scope 2 emissions, while others include Scope 3 emissions.

The View Emission Dashboard in SAP Sustainability Control Tower provides a graphical representation of GHG emissions data. It enables users to visualize emissions by business activity type, organizational unit, or other relevant parameters. The dashboard can be customized to meet specific reporting requirements or to support decision-making.

A screen for the SAP Greenhouse Gas Emissions dashboard for December Q4, 2023, with gross and net emissions, emissions avoided by renewables, and offsets. It includes detailed Scope 1, 2, and 3 emissions data and a graph of emissions over time.

To effectively use the View Emission Dashboard, it is important to:

  • Define and manage business activity types that accurately reflect the different sources of emissions in your organization.
  • Assign activities to the appropriate business activity types to ensure accurate data collection and reporting.
  • Regularly review and update business activity types and business activities to ensure that they remain relevant and up to date.

By using business activity types and business activities, organizations can gain a comprehensive understanding of their GHG emissions and make informed decisions to reduce their environmental impact. The View Emission Dashboard is a powerful tool for visualizing and analyzing this data, enabling organizations to track progress, identify reduction opportunities, and enhance sustainability performance.

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