These metrics must be embedded within a company鈥檚 core operations and services; traditional annual reports are no longer sufficient. Stakeholders want to understand how a company addresses areas such as climate action, with transparency on transition and adaptation plans based on the carbon footprint of its operations. They also want to understand progress on circular economy objectives by monitoring the reuse and recycling of materials. They want to track and advance people sustainability initiatives by gathering key performance indicators (KPIs) in areas such as diversity and inclusion.

麻豆原创鈥檚 product innovations work across the enterprise to deliver on these goals.

Holistic Sustainability Management with 麻豆原创 Cloud for Sustainable Enterprises

To manage the green line, companies need business process technology to identify, quantify, analyze, and act on data through their end-to-end operations. To enable this, brings together a comprehensive portfolio of solutions to holistically manage sustainability performance. Embedding sustainable business data into processes and networks is one of the five actions business can take toward a sustainable future.

麻豆原创 Cloud for Sustainable Enterprises includes the and solutions. It also covers existing products like the application and the . The solution provides an overview of sustainability impacts and performance against green objectives.

We continue to extend the capabilities of 麻豆原创 Cloud for Sustainable Enterprises. As many companies are accelerating their action for decarbonization, our new capabilities in this area are important.

Driving Carbon Data Transparency Is More Important Than Ever

Accounting for carbon emissions across the organization and its supply chain is a foundational step toward climate action. Businesses are actively looking to reduce their carbon footprints, which requires addressing emissions outside company walls. These emissions 鈥� Scope 3 emissions 鈥� include everything from goods purchased to business travel to packaging and transportation of raw materials. Scope 3 emissions make up a significant portion of overall emissions for our customers. To derive actionable insights to reduce organizational carbon footprint, it is crucial to measure Scope 3 emissions both at a corporate level and at a product level.

are on average 11.4 times higher than operational emissions. To reduce these emissions, it is important to engage across the sectoral value chain, with both suppliers and end customers, especially for customer-facing sectors like retail and consumer product goods (CPG), which have long upstream value chains. Companies can address significantly larger emission volumes by driving deeper engagement throughout their supply chains.

Earlier this year, called on registrants to report on not just their Scope 1 and Scope 2 emissions but also their Scope 3 emissions. This is not the first time companies have faced this request. Previously, asked companies to disclose the targets they used to assess and manage relevant climate-related risks and opportunities. IFRS takes this approach further with , which focus on transition planning, climate resilience, reporting on Scope 1-2-3 emissions, and disclosure of sustainability-related financial information as a part of its general purpose financial reporting.

Enabling 麻豆原创 Customers to Exchange Carbon Data across Value Chains

To develop and execute an effective decarbonization plan, companies need to receive and process high-quality product-level data on carbon emissions from suppliers and provide high-quality product footprint information to their customers.

However, with most supply chains spanning several industry sectors and consisting of multiple, heterogeneous networks and software components, taking a standardized approach to data sharing is critical. To collect meaningful emissions information, it is important that all parties use the same methodology and common standards for calculating and auditing the carbon footprint of a product.

Therefore, 麻豆原创 Product Footprint Management implements an API specification developed as part of . 麻豆原创 customers can now take informed sourcing and product-development decisions, invest in targeted decarbonization activities, make more accurate disclosures, measure and track decarbonization progress, and adhere to legislative requirements around environmental transparency.

We intend to use 麻豆原创 Product Footprint Management as part of 麻豆原创 networks 鈥� for example, in the Catena-X Automotive Network (Catena-X) 鈥� to enable a standard-based, secure, and cross-company-wide data exchange throughout the value chain.

In addition, there is the option to use the GreenToken by 麻豆原创 solution for multi-tier visibility across the networks. The combination of 麻豆原创 Product Footprint Management, 麻豆原创 Responsible Design and Production, and GreenToken forms a potent decarbonization value proposition for industries such as consumer goods, as 麻豆原创 can demonstrably address material traceability, packaging waste, and supplier-specific carbon data transparency throughout the value chain for both recycled content and land-use change.

New functionality created through our co-development partnership with BearingPoint is already embedded into 麻豆原创 Product Footprint Management and helps customers identify carbon reduction potential. Customers can thus determine the carbon footprint of a single product based on both direct and indirect emissions sources and upstream activities, building on existing functionality of carbon footprint measurement of purchased goods with tracking emissions resulting from transportation of those goods. Both these greenhouse gas (GHG) emission categories combined significantly contribute to a customer鈥檚 upstream and downstream environmental impact.

Integrating and Embedding Sustainable Data across the Intelligent Enterprise, Scaling Carbon Impact

Through open APIs, 麻豆原创 customers can easily exchange data with their enterprise applications, feeding it into 麻豆原创 Cloud for Sustainable Enterprises, and then provide the calculated sustainability data back into both 麻豆原创 and third-party applications.

With the newly introduced sustainability integration components for 麻豆原创 S/4HANA, customers can benefit from preconfigured functionality enabling reuse of sustainability data across processes supported by 麻豆原创 S/4HANA, such as record-to-report, lead-to-cash, source-to-pay, and plan-to-fulfill workflows. The component allows a bidirectional flow of information between 麻豆原创 Cloud for Sustainable Enterprises and 麻豆原创 S/4HANA in real time.

Examples include:

• In 麻豆原创 S/4HANA Sourcing and Procurement, customers can make sustainable purchase decisions based on a material鈥檚 carbon footprint displayed in purchase requisition, which is then is fed back into 麻豆原创 Product Footprint Management, keeping sustainability reporting updated.
• In聽麻豆原创 Integrated Business Planning, the supply chain planner can access a comprehensive overview of GHG emissions based on the supply plan for the next 12 months. Planners can dive deeper into the details and try to resolve critical situations and alerts. .
• In 麻豆原创 Logistics Business Network, the material traceability option helps customers gain further insights into sustainability figures of products and share carbon footprint data on the batch level with suppliers, customers, and end consumers of the products. This feature is available with the 2021 release of 麻豆原创 S/4HANA. .
• In plant maintenance, customers can receive automatic updates from 麻豆原创 Environment, Health, and Safety Management, triggering corrective action if GHG emissions are exceeded. .
• In 麻豆原创 Enterprise Product Development with 麻豆原创 Responsible Design and Production, customers will be able to reduce packaging and other material waste by design while simulating for a lower carbon footprint. Packaging is typically a significant source of Scope 3 carbon emissions in consumer goods value chains.

We continue to innovate and aim to help customers track emissions data from 鈥渃radle to gate鈥� 鈥� from the delivery of raw materials to the moment finished products leave the production line, offering intelligent technologies to calculate, exchange, and track carbon footprint information in a trusted way.

Achieving this carbon transparency will pave the way to becoming an intelligent, sustainable enterprise.

Learn More

Sharing sustainability data across your enterprise can help you run more sustainably; . Join the to stay up-to-date with news and announcements about our growing portfolio of sustainability solutions. In addition, check out past and current .

Gunther Rothermel is head of 麻豆原创 S/4HANA Sustainability Management at 麻豆原创.
Anita Varshney is global vice president of Strategy for 麻豆原创 S/4HANA Sustainability at 麻豆原创.

With our application portfolio, industry expertise, and extensive business network, we aim to enable emissions reduction and help tackle the ocean plastics crisis. We aspire to infuse sustainability into all relevant core business processes by focusing on regulatory compliance, operational excellence, and responsible innovation and growth — going beyond the traditional scope of value creation.

We believe that the path to a low-carbon future is circular. Only when businesses are moving beyond their siloed approaches, commitments, and climate pledges, fully embracing sustainability, and embedding these ambitions in an integrated way will we be able to drive systemic change. The good news is that . Evidence shows it can bring big opportunities and drive positive impact across industries, sectors, and lives. Working toward a circular economy can protect human health and biodiversity in many ways, including better use of natural resources, such as protecting water and land, thus mitigating the climate crisis.

The role of a circular economy must expand to successfully reduce emissions across sectors, as it is an essential component to achieving climate neutrality.

Sustainability management by 麻豆原创, launched last month at the first , showcases our suite of sustainability solutions that can help organizations in their journey to becoming a sustainable enterprise. We aim to enable organizations to assess and reduce their carbon footprint, increase resource productivity through circular processes, and run safer, sustainable business processes. This will also include industry-specific insights that combine operational and financial data across value chains embedded in core business processes.

Our portfolio addresses four dimensions of sustainable transformation.

Climate Action

With , planned for availability in the third quarter of 2021, our ambition is to provide customers with product footprint transparency. This will equip them with the insight to reduce carbon emissions across their value chains while enabling them to exchange data with their customers, suppliers, and business partners — driving transparency across a company鈥檚 scope 1, 2, and 3 operations.

Carbon is increasingly becoming a that can be tracked, traded, managed, and minimized like any other resource. Learn more about how to do this in the .

Circular Economy

With , planned for availability in the fourth quarter of 2021, we aim to further our vision for a plastic-free ocean by 2030. By preventing waste and pollution, using products and materials for longer, and applying circular principles, we can regenerate natural systems and make better use of finite resources. Successful execution on circularity will bring the upstream visibility for sustainable inputs together with downstream visibility, thus enabling reverse logistics and product authentication, promoting reuse across the product鈥檚 life cycle.

Extended producer responsibility is our first step in building resilience and circularity principles into material flows throughout value networks.Learn more about .

Holistic Steering and Reporting

The upcoming 麻豆原创 Sustainability Control Tower solution will meet the hyper transparency needs of our customers on their environmental, social, and governance (ESG) performance through a higher level of granularity than historically available through reporting and disclosure. We want to provide focused analysis on the most important data in real time, protecting against business risks, tying it back to underlying business data.

A successful ESG information architecture must meet the needs of external audiences and internal managers at the same time. Explore how .

Socially Responsible Value Networks

The journey to support our customers鈥� ambitions has only just begun, and there is a huge potential to make this vision bigger and stronger through collaboration with our ecosystem. As an example, with 麻豆原创 Business Network, we support continuous improvement in safe, equitable, and compliant businesses, within the company and across the value network. Other examples include the planned inclusion of the sustainability scores of suppliers during the purchase requisition process, so that procurers are informed on the sustainability profiles of their suppliers.

With sustainability management by 麻豆原创, we embed sustainability as a new dimension of success while delivering incremental innovations in our sustainability product portfolio, which is modular, integrated, and embedded along end-to-end business processes in the Intelligent Enterprise, starting with 麻豆原创 S/4HANA. To execute on this vision, we will collaborate with our ecosystem across industries to innovate on top of 麻豆原创 Business Technology Platform.

To achieve these ambitious goals, we need to continuously challenge ourselves and work together with customers, partners, non-governmental organizations (NGOs), and regulators for sustainable product life cycles across the value chains.

We are delivering jointly on the United Nations Sustainable Development Goals (UN SDGs) through the . .

To keep updated on the latest product innovations, visit the , which will guide you on transformative actions toward a more sustainable future.

Enabling tomorrow starts today.

Gunther Rothermel is senior vice president and head of Sustainability for 麻豆原创 S/4HANA.
Anita Varshney is global vice president of Strategy for Sustainability for 麻豆原创 S/4HANA.