Welcome to another blog post on Sustainability with SAP S/4HANA Cloud Public Edition 2402. This post will focus on key innovations with the SAP S/4HANA Cloud, public edition 2402 with the Sustainability LoB. I will be covering the latest and greatest from SAP Product Footprint Management, SAP Green Toke, SAP Sustainability Data Exchange SAP Sustainability Control Tower, and the latest update from Sustainability in Finance.
For previous updates, take a look at "My previous blog posts covering sustainability" section at the end.
Overview of Sustainability Innovations Delivered with SAP S/4HANA Cloud Public Edition 2402
Release Highlights Video: Discover what's new in Sustainability with SAP S/4HANA Cloud Public Edition 2402
*Please note: The Sustainability Products mentioned below maybe standalone. For more information on integration with SAP S/4HANA Cloud Public Edition or other SAP Products, visit the respective SAP Help pages.
Here are the highlights:
- SAP Sustainability Footprint Management
- Climate Action Integration
- Supplier Footprints
- GHG Scope 1, Scope 2, Scope 3.3 Calculation and Calculation Variants
- Corporate Footprint Analytics
- SAP Green Token
- SAP Sustainability Data Exchange
- SAP Sustainability Control Tower
- GHG Emission Planning and Simulation – Integrated Financial Planning
SAP Sustainability Footprint Management
Climate Action Integration
We have consistently improved integration of SAP Sustainability Footprint Management with SAP solutions. Below is an overview of such integrations.
Figure: SAP Sustainability Footprint Management Integration Scenarios
We will briefly touch on the following integrations here.
SAP EHS Environment Management
At the heart of SAP Sustainability Footprint Management lies a suite of capabilities designed to facilitate climate action integration. This begins with SAP EHS Environment Management, which enables businesses to import direct and indirect emission data to calculate corporate and product footprints while ensuring compliance with legal and regulatory standards.
Figure: Import Emission Data
SAP Sustainability Control Tower
The integration of calculated corporate footprints into the Sustainability Control Tower empowers companies to engage in holistic ESG reporting and steering, providing a centralized platform for comprehensive sustainability management.
Figure: Integration of SAP Sustainability Footprint Management and SAP Sustainability Control Tower
Mass Publishing of Footprints
The ability to select footprint inventories and publish calculated product footprints into SAP S/4HANA streamlines the integration of sustainability considerations into end-to-end processes. Planned initiatives such as publishing footprints to SAP Sustainability Data Exchange further enhance data exchange capabilities with customers, fostering transparency and collaboration across the value chain. For more information on inbound integration, check out this blog post SAP Sustainability Footprint Management: Q3-23 Updates & Highlights.
Supplier Footprints
SAP's Sustainability Footprint Management extends beyond internal operations to include supplier footprints management, enabling businesses to push footprints to the platform via integration with SAP Sustainability Data Exchange. Leveraging Push API or MS Excel templates, organizations can import supplier-specific product footprints, ensuring compliance with standards set by the World Business Council for Sustainable Development (PACT 2.0).
Manage Supplier Footprints App
Review footprints, assign plants, and decide whether to release or reject supplier footprints. The app also provides detailed insights into footprint components and calculation methodologies.
GHG Scope 1, Scope 2, Scope 3.3 Calculation and Calculation Variants
Manage Calculation Variants
A key feature of SAP Sustainability Footprint Management is its robust GHG scope calculation capabilities. With the ability to manage calculation variants, organizations can tailor their carbon footprint calculations based on various parameters, including physical (based on BUoM or net weight) and economic allocation methods, and the inclusion or exclusion of by-product emissions.
Footprint Breakdown and Analytics
Enhanced transparency is achieved through detailed breakdowns of emission flows into GHG Protocol scopes and categories, providing invaluable insights into emission hotspots. Improved analytics enable organizations to visualize total CO2e emissions, breakdowns per scope category, and trends over time, empowering informed decision-making and targeted interventions.
Freight Transport Integration
The integration of freight transport footprint results alongside organizational footprints offers a comprehensive view of emissions, allowing businesses to identify areas for optimization and efficiency gains.
Figure: Manage Footprint Results - Transportation Integration
Corporate Footprint Analytics
Through SAP Sustainability Footprint Management, organizations gain access to comprehensive analytics, including total emissions, breakdowns per scope category, and trend analysis, enabling them to track progress, set targets, and demonstrate their commitment to sustainability.
More Resources
If you are looking for more detailed information on this topic, please refer to the resources below.
SAP Sustainability Product Footprint Management, SAP Help, What's new with the latest release,
and the blog post by @NicoWottke SAP Sustainability Footprint Management: Q4-23 Updates & Highlights
SAP Green Token
In an era where sustainability is no longer an option but a necessity, businesses are under increasing pressure to demonstrate their commitment to environmental, social, and governance (ESG) principles across their operations and supply chains. SAP Green Token, a powerful software-as-a-service (SaaS) cloud solution designed for sustainability management and enable organizations to drive meaningful change towards a more sustainable future.
Figure: SAP Green Token - DSC Material Tracability
SAP Green Token facilitates the transition to sustainable materials
- Leverages chain-of-custody models and tokenization
- Industry and ESG standard-agnostic
SAP Green Token helps prove sustainability attributes of raw materials
- Supports up-to-date sustainability standards and certification (e.g. ISCC and EUDR)
- Ensures trust in auditing and reporting with an immutable blockchain ledger
Accessible to all types of organizations and easy to implement
- Connect via a Direct Integration (SAP ERP), Open APIs, or drive via CSV Exports
- Use as a stand-alone for mass balance and segregated accounting for your value chain
- Optional and flexible onboarding of the supply chain for end-to-end transparency
- Each organization controls their own data and visibility
Capabilities Empowering Sustainability
At the core of SAP Green Token lies an array of capabilities aimed at enhancing traceability, transparency, and accountability across the supply chain. Let's delve into some of its key functionalities:
1. Mass Balance and Segregated Accounting
SAP Green Token facilitates the reconciliation of credits through inbound processes, configurable conversions, and allocations, ensuring accurate tracking of sustainability attributes throughout the production cycle. With attribute-based filtering and credit reservation capabilities, organizations can ensure compliance with sustainability standards while optimizing resource utilization.
2. Certification Management
Ensuring the credibility of sustainability claims is paramount in today's landscape. SAP Green Token streamlines certification management by automating declaration collection, generation, and transfer processes. With configuration-based declaration templates and multi-level declaration management, organizations can seamlessly navigate complex certification requirements while maintaining compliance and transparency.
3. Traceability and Transparency of Attributes
From raw material origins to end-product attributes, SAP Green Token provides full visibility into the lifecycle of credits and material attributes. By capturing and carrying multiple material attributes, organizations can track and report on critical sustainability metrics, including coordinates/origin, PCR/PIR source, and deforestation, fostering transparency and accountability across the value chain.
4. Reporting and Auditing
Real-time audit reporting according to certification standards, chain of custody reporting, and material movement reporting empower organizations to demonstrate adherence to sustainability standards and regulatory requirements. With comprehensive reporting capabilities, organizations can gain insights into the current and historical balance and distribution of sustainable claims, facilitating informed decision-making and stakeholder communication.
Added Business Value
The adoption of SAP Green Token unlocks numerous business benefits, including:
Enhanced Brand Reputation: By demonstrating a commitment to sustainability and transparency, organizations can enhance their brand reputation and appeal to environmentally conscious consumers and stakeholders.
Risk Mitigation: By accurately tracking sustainability attributes and ensuring compliance with standards and regulations, organizations can mitigate reputational and operational risks associated with non-compliance or sustainability-related controversies.
Operational Efficiency: Streamlined certification management, traceability, and reporting processes enable organizations to optimize resource utilization, reduce waste, and drive operational efficiency across the supply chain.
Market Differentiation: Organizations that embrace sustainability as a core value proposition can differentiate themselves in the market, gaining a competitive edge and positioning themselves as industry leaders in sustainability.
In conclusion, SAP Green Token represents a transformative solution for organizations seeking to embed sustainability into their core business operations and supply chain management practices. By leveraging its powerful capabilities, organizations can drive sustainable transformation, enhance transparency, and create long-term value for stakeholders, while contributing to a more sustainable and resilient future.
More Resources
If you are looking for more detailed information on this topic, please refer to the resources below.
SAP Green Token, SAP Help and the blog post GreenToken by SAP - A new way to add raw material supply chain transparency to your network
SAP Sustainability Data Exchange
SAP Sustainability Data Exchange offers a robust solution for managing and communicating Scope 3 Product Footprint information through a request/respond feature. This feature allows seamless sharing of product carbon footprint (PCF) data among connected trading partners within your business network, facilitating verified communication that adheres to standardized data models such as WBCSD PACT and CATENA-X Automotive extension.
The video below explains the need for carbon accounting and the importance of transparency for Scope 3 emissions.
Video: Introduction to Carbon Accounting and Scope 3 Emissions
By leveraging this data exchange platform, organizations can enhance the accuracy of their PCF calculation data, transitioning from reliance on averages and estimates to utilizing actual, real data sourced directly from suppliers.
Operational Mechanism
Operating on standardized data models and exchange protocols, SAP Sustainability Data Exchange functions as a network solution, facilitating the exchange of sustainability data between companies and their supply chain partners. Sustainability data is captured using standardized data models and subsequently shared among partners through a standardized data exchange mechanism.
Within this network, each organization performs three primary functions:
- Request: Initiating requests for sustainability data from suppliers.
- Calculate: Utilizing the received data, along with other process data, to run PCF calculations.
- Send: Transmitting the calculated data to customers.
In essence, SAP Sustainability Data Exchange streamlines the process of collecting, calculating, and disseminating sustainability data across the supply chain, fostering collaboration and promoting transparency in sustainability reporting.
By embracing this innovative solution, organizations can strengthen their sustainability initiatives, improve data accuracy, and enhance their reputation as responsible corporate citizens committed to environmental stewardship.
Capabilities Driving Sustainability Collaboration
Let's explore the key capabilities of SAP Sustainability Data Exchange:
1. Collaborate Across Value Chains
SDX enables seamless collaboration across value chains, allowing organizations to share actual product carbon footprints (PCF) with increased interoperability and data sovereignty. By leveraging SDX, businesses can establish transparent communication channels, fostering trust and collaboration among stakeholders.
2. Standardize Data Exchange
Simplify audits and streamline data exchange processes with standardized data models and workflows. SDX follows industry frameworks and requirements, ensuring seamless information exchange while reducing administrative burdens and enhancing data accuracy.
Figure: Manage Supplier Footprint Exchanges
3. Accelerate Carbon Reduction
Identify products or processes with high potential for CO2 reduction, avoid double emissions counting, and optimize footprints. SDX equips organizations with the insights needed to drive targeted carbon reduction initiatives, accelerating progress towards sustainability goals.
Figure: Detailed Carbon Insights with Sustainability Data Exchange
4. PACT Conformant Solution
SAP Sustainability Data Exchange aligns seamlessly with the technical specifications outlined by the Partnership for Carbon Transparency (PACT) framework of the World Business Council for Sustainable Development (WBSCD). PACT is dedicated to expediting decarbonization efforts by fostering transparency regarding emissions within the value chain. It sets forth a standardized methodology and technological infrastructure to ensure accurate and primary measurement of Scope 3 emissions, thereby facilitating efficient data exchange among stakeholders.
Integration
Within SAP Portfolio
SAP Sustainability Data Exchange seamlessly integrates within the SAP landscape, offering native integration with Sustainability Footprint Management. Standardized APIs enable data exchange with third-party calculators, further enhancing interoperability and data accessibility.
Figure: SAP Sustainability Data Exchange integration with SAP Portfolio
External Integration
Extend beyond SAP to facilitate a smoother transition towards sustainability. Access reliable, sustainability-driven suppliers through SAP Business Network, connecting with partners from over 190 countries. Integration with industry platforms and networks such as CATENA-X and TfS fosters collaboration and accelerates sustainability initiatives.
Figure: SAP Sustainability Data Exchange and External Integrations
In conclusion, SAP Sustainability Data Exchange facilitates the journey towards sustainable supply chains. By fostering collaboration, standardization, and accelerated carbon reduction efforts, SDX empowers organizations to drive meaningful change, enhance brand reputation, and build a more sustainable future for generations to come.
More Resources
If you are looking for more detailed information on this topic, please refer to the resources below.
Decarbonization Through Emission Transparency: Introducing SAP Sustainability Data Exchange
SAP Sustainability Data Exchange, SAP Help User Guide and the blog post GreenToken by SAP - A new way to add raw material supply chain transparency to your network
SAP Sustainability Control Tower
SAP Sustainability Control Tower, as part of "Holistic Steering and Reporting", allows user to drive holistic steering by setting targets, monitor progress and gain actionable insights from dependable sustainability data. This in-turn gives trust by establishing robust and auditable Environmental, Social, and Governance (ESG) reporting. It also facilitates assessing and improving performance regarding sustainability matters:
- For strategic performance management and related reporting.
- Environmental, Social, and Governance (ESG), and financial / operational data integrated for a holistic view.
- Facilitate the journey towards having the right data in the right place.
In my previous blog post, I introduced the product. You can read more details in my blog post "Introducing SAP Sustainability Control Tower"
I am excited to introduce the latest enhancements to SAP Sustainability Control Tower (SCT).
ESG Data Foundation
Base Extensions For ESG Data Foundation
The following figure will give an overview of of the base extensions for ESG Data foundations.
Figure: ESG Data Foundation - Base Extensions For ESG Data Foundation
Lets now looking into each of these elements in more detail.
1. Base Extensions for ESG Data Model
With base extensions, customers and partners can now build upon the existing data foundation to tailor it to their specific requirements. This empowers organizations to capture a broader range of sustainability metrics and dimensions relevant to their operations.
2. New Generic DPI with Expanded Dimensions
The introduction of a new generic Data Processing Interface (DPI) with 20 dimensions offers increased flexibility in data modeling. Additionally, existing DPIs for People, Emission, and Injury have been extended with 10 dimensions each, enabling more comprehensive data analysis and reporting.
3. Enhanced App Functionality
Our Manage Measure and Manage Dimension apps have been enhanced to facilitate the creation of custom measures, semantic mapping of custom dimensions, and management of master data for custom dimensions. These capabilities enable organizations to tailor their sustainability metrics and dimensions to align with their unique reporting requirements.
4. Custom Advanced Metrics
The Manage Metric app now provides users with the ability to create custom advanced metrics for new calculations. Utilizing CPE (Calculation, Planning, and Execution) based modeling, organizations can perform complex calculations with precision and accuracy, ensuring reliable analysis of sustainability data.
Below are more details on the apps.
Manage Dimension App – Extend Existing DPI with Custom Dimensions
We are pleased to announce the latest enhancement to our ESG Data Foundation, focusing on the introduction of Custom Dimensions. This update empowers users to tailor their data analysis and reporting by incorporating additional information and grouping capabilities within the Data Provider Interface (DPI).
Custom Dimensions Overview
Custom dimensions serve as a means to group and provide supplementary information for measures within the DPI structure. These dimensions are directly associated with measures through DPI assignments, enabling users to organize and analyze data according to their specific reporting requirements.
Managing Custom Dimensions
The Manage Dimension App now includes functionality to create custom dimensions for both existing DPIs and the generic DPI. Users can seamlessly manage accepted values through master data uploads, ensuring data accuracy and consistency across the platform.
Supported DPIs: Custom dimensions can be created for a variety of DPIs, including Generic, Emission, Injury, and People DPIs, offering versatility in data analysis across different domains.
Figure: Manage Dimension App – Extend Existing DPI with Custom Dimensions
Manage Measure App – Extend DPIs with Custom Measures
Below are the latest enhancements to the Manage Measure App, designed to provide users with greater flexibility and control over their sustainability metrics within SAP-provided Data Provider Interfaces (DPIs). Here's a closer look at the key updates:
1. Measures Overview
The Manage Measure App now offers a comprehensive overview of both SAP-provided and custom measures for DPIs. This includes detailed information on DPIs and their associated measures and metrics, providing users with valuable insights into their sustainability data landscape.
2. Measures Management
Users can now create custom measures for Generic, Emission, Injury, and People DPIs directly within the app. This functionality is extendable, with support for additional DPIs planned for future updates. This empowers organizations to tailor their sustainability metrics to align with their specific reporting requirements and business objectives.
3. Custom Dimension Assignment
With the ability to assign custom dimensions to custom measures, users can build extensions to the four supported DPIs. This feature enables organizations to capture a broader range of sustainability data and enhance the depth of analysis within their reporting framework.
Figure: Manage Measure App – Extend DPIs with Custom Measures
These enhancements in the Manage Measure App empower users to optimize their sustainability reporting processes, streamline data management, and gain deeper insights into their environmental, social, and governance (ESG) performance. With increased flexibility and customization options, organizations can effectively track and measure their sustainability initiatives, driving progress towards their sustainability goals.
GHG Emission Planning and Simulation – Integrated Financial Planning
Recognizing the critical importance of greenhouse gas emissions in shaping environmental sustainability and financial performance, SAP has enhanced the Integrated Financial Planning business content in SAP Analytics Cloud. This update seamlessly incorporates CO2e planning, allowing organizations to strategically manage their environmental footprint alongside their economic sustainability goals.
Demo: GHG Planning Scope Statement, Financial Statement, CO2e Flow Statement
Value Proposition
Our solution enables corporations to:
- Plan and calculate CO2e emissions along with their financial plan.
- Gain a comprehensive overview of their operations and impact by collating CO2e emissions data with traditional financial metrics.
- Develop environmentally responsible strategies and identify financial risks and costs associated with greenhouse gas emissions.
Capabilities
With the enhanced Integrated Financial Planning solution, organizations can:
- Plan environmental and financial performance in a connected model.
- Plan raw material quantities while considering their environmental impact.
- Plan CO2e-related cost center expenses and performance quantities, including energy cost centers.
- Plan activity rates with CO2e quantities to align operational activities with sustainability goals.
- Calculate planned corporate carbon footprints to assess overall environmental impact.
- Gain a detailed breakdown of CO2e emissions per product and cost center, enabling targeted interventions and optimizations.
For more information, see Integrated Financial Planning for SAP S/4HANA and (planned with SAP Analytics Cloud Q1 business content with SAP S/4HANA Public Cloud 2402.1).
This update is also presented in the blog post Finance in SAP S/4HANA Cloud Public Edition 2402
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Further Information and Links to Useful Resources
Watch the Replays of Our SAP S/4HANA Cloud Public Edition 2402 Early Release Series!
In January 2024, we hosted a series of 19 compelling live sessions to highlight the exciting innovations shipped with the SAP S/4HANA Cloud Public Edition 2402 release. Missed the live sessions? No problem! Take advantage of the entire series or pick and choose the sessions most relevant to you on demand.
Inside SAP S/4HANA Cloud
There is no customer success without project success and product success! Leverage the unique knowledge and expertise of SAP S/4HANA Cloud experts, partners, and customers, sharing their SAP S/4HANA Cloud implementation project best practices and lessons learned – anywhere, anytime. In this podcast, we give you all ingredients to get to the next level and make your SAP S/4HANA Cloud project a success. Subscribe now and benefit from the shared knowledge!
Looking for Podcasts on Artificial Intelligence? listen to my latest episode below.
Podcast: Inside SAP S/4HANA - Episode 101: Artificial Intelligence - Ep. 1: Exploring SAP Business AI, Generative AI and Enablement Strategy
openSAP Microlearnings for SAP S/4HANA Cloud
Our openSAP microlearnings for SAP S/4HANA Cloud offer an exciting new learning opportunity. What began with a small batch of 20 videos, has now become a channel with more than 50 microlearnings that have generated over 20,000 views. Today, we cover multiple lines of business such as finance, manufacturing, and supply chain management, and key technology topics like Master Data Management, extensibility, SAP User Experience, and upgrade management. We are continuously adding new microlearnings to our channel, so make sure you check them out.
Your Voice Matters
You want to learn more and actively engage with SAP subject matter experts on SAP S/4HANA Cloud topics? We have just the right place for you! Join our interactive community where we bring together customers, partners, and SAP experts with a clear mission: To engage with one another about best practices and product solutions. We invite you to explore the ‘one-stop shop’ as the central place for all resources, tools, content questions, answers and to connect with experts who will guide you through your journey to the intelligent, sustainable enterprise.
Find All of Our Assets
SAP S/4HANA Cloud is the foundation of the intelligent, sustainable enterprise and is an innovative, robust, and scalable ERP. We at Cloud ERP Product Success and Cloud Co-Innovation offer a service as versatile as our product itself. Check out the numerous offerings our team has created for you below:
My previous blog posts covering sustainability
- Sustainability with SAP S/4HANA Cloud 2308
- Sustainability with SAP S/4HANA Cloud 2302
- SAP S/4HANA Cloud, Public Edition Product Update Series H2 2022: Sustainability
- Sustainability with SAP S/4HANA Cloud 2208
Product Update Series H1 2022: Sustainability - Sustainability with SAP S/4HANA Cloud 2202
Where to Find More Information:
- Watch the replays of our exclusive SAP S/4HANA Cloud Public Edition 2402 Early Release Series
- Explore the ready-to-run Cloud ERP .
- Watch our SAP S/4HANA Cloud product update videos on YouTube:
- Check out our digital enablement wheel
- Become an early adopter for Joule in SAP S/4HANA Cloud Public Edition
- Check out the SAP Activate Roadmap for early adopters
- Review the PPL content here: https://go.support.sap.com/roadmapviewer/#/group/658F507A-D6F5-4B78-9EE1-0300C5F1E40F/roadmapContent...
- Listen to our podcast: Inside S/4HANA Podcast Series
- Watch our openSAP microlearnings to learn about SAP S/4HANA Cloud topics at your own pace
- Find best practices on SAP S/4HANA Cloud Public Edition
- Check out what’s new
- Find SAP help here:
- Read the Feature Scope Description
Follow us on @SAP and #S4HANA, and myself via X @stalalhussain and LinkedIn - Syed Talal Hussain
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