SAP Prod­uct Foot­print Man­age­ment solu­tion helps indus­tri­al com­pa­nies reduce car­bon emissions

SAP recent­ly intro­duced a Prod­uct Foot­print Man­age­ment solu­tion (SAP PFM), that helps indus­tri­al orga­ni­za­tions cal­cu­late and gain vis­i­bil­i­ty on their foot­print. The solu­tion is a cloud-native appli­ca­tion that cal­cu­lates prod­uct foot­prints peri­od­i­cal­ly and at scale con­sid­er­ing the entire prod­uct life­cy­cle. With the help of the solu­tion, com­pa­nies can reduce their oper­a­tions’ car­bon emissions. 

Orga­ni­za­tions glob­al­ly are in dif­fer­ent phas­es in adop­tion of sus­tain­abil­i­ty ini­tia­tives and com­pen­sat­ing emis­sions. With SAP Prod­uct Foot­print Man­age­ment, com­pa­nies gain insights on the envi­ron­men­tal impacts of their prod­ucts across the entire life­cy­cle. They can use these insights eg. for prod­uct and process opti­miza­tion as well as inter­nal and exter­nal dis­clo­sure and report­ing. The solu­tion reuses exist­ing busi­ness data and com­bines it with envi­ron­men­tal fac­tors to cal­cu­late prod­uct foot­prints peri­od­i­cal­ly and at a scale. The cal­cu­lat­ed foot­prints are inte­grat­ed back into the end-to-end processes.

Exam­ple screen view of SAP Prod­uct Foot­print Man­age­ment solution

Ben­e­fits and busi­ness val­ue of SAP PFM

SAP PFM helps com­pa­nies cal­cu­late and mon­i­tor their car­bon foot­print lev­els and cal­cu­late the relat­ed busi­ness impact. It gives cus­tomers insights into prod­uct car­bon foot­prints and enables actions to opti­mize them. We can expect car­bon prices to sky­rock­et in the future, so it is impor­tant for indus­tri­al com­pa­nies to take con­trol of the entire prod­uct life­cy­cle and man­age the relat­ed emis­sions effi­cient­ly based on reli­able and time­ly data.

Oper­at­ing envi­ron­men­tal­ly-con­scious­ly is very impor­tant in fight­ing cli­mate change. Cus­tomers and employ­ees also expect com­pa­nies to reduce their neg­a­tive impact on the plan­et. Cli­mate change is a threat to the future of our plan­et, and every orga­ni­za­tion should adapt to mit­i­gate its effects. With the help of SAP Prod­uct Foot­print Man­age­ment, an orga­ni­za­tion can become an indus­try fore­run­ner in reduc­ing their emis­sions on prod­uct lev­el. Com­pa­nies use SAP PFM solu­tion also to cal­cu­late, ana­lyze and present results to meet gov­ern­ment require­ments and regulations.

SAP PFM reduces the effort and cost of cal­cu­lat­ing, ana­lyz­ing, and report­ing prod­uct foot­prints. With sim­pli­fied cal­cu­la­tion method using the pre-con­fig­ured tem­plates, the solu­tion also frees up inter­nal resources for more val­ue adding work. SAP PFM is easy to imple­ment and intu­itive to use and elim­i­nates the mis­takes com­ing from man­u­al work.

Key capa­bil­i­ties of SAP PFM

SAP Prod­uct Foot­print Man­age­ment — Prod­uct Capa­bil­i­ties
Source: SAP Prod­uct Foot­print Man­age­ment: Q4-22 Updates & High­lights | SAP Blogs

1. Data Acqui­si­tion

Inte­grat­ing mas­ter data from SAP S/4HANA / SAP Busi­ness ByDe­sign – reusing already avail­able and val­i­dat­ed data.

2. Emis­sion Fac­tors Management

Import­ing emis­sion fac­tors from life­cy­cle assess­ment data to cal­cu­late foot­prints at scale across the entire prod­uct inven­to­ry. For now, data is retrieved from SAP Life Cycle Assess­ment (LCA) data­base or is re-using data from LCA data­base providers such as Ecoin­vent. Lat­er on, the plan is to use the data direct­ly from the suppliers.

3. Foot­print Calculation

Using a pre-con­fig­ured foot­print cal­cu­la­tion tem­plate, you can define the prod­ucts to add to the cal­cu­la­tion pair­ing, each prod­uct with its emis­sion fac­tor (both pur­chased mate­ri­als and raw mate­ri­als for pro­duc­tion), thus hav­ing an overview of the car­bon emis­sion dur­ing a prod­uct lifecycle.

Adding trans­port activ­i­ties, the com­pa­ny will get a reli­able foot­print val­ue of their pur­chase (indi­cat­ed in the Pur­chase Order).

From the man­age­ment per­spec­tive, the solu­tion pro­vides a built-in gov­ern­men­tal car­bon price cal­cu­la­tion for bet­ter bud­get­ing and planning.

4. Foot­print Analytics

Scor­ing and Ana­lyt­ics helps to eas­i­ly under­stand prod­uct foot­print infor­ma­tion — to deep dive into the prod­uct lev­el and see which com­po­nent has the biggest foot­print impact and based on that decide whether to change sup­pli­er or pro­duc­tion method.

5. Foot­print Integration

SAP’s end-to-end busi­ness process­es can be extend­ed by embed­ding prod­uct foot­print infor­ma­tion cov­er­ing green­house gas emissions.

In case you want to know more about the solu­tion, con­tact us!

Also, Islet has devel­oped an emis­sion cal­cu­la­tion and report­ing application

Read the ref­er­ence sto­ry: Islet Devel­oped an Emis­sion App for Trans­meri Group to Advance their Sus­tain­abil­i­ty Efforts

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