Many companies are now required to disclose their environmental and social impacts as well as their corporate governance standards (ESG) and to provide transparent information on greenhouse gas emissions, climate goals, energy consumption, supply chain risks, and sustainability measures.
In the EU, this is regulated by the Corporate Sustainability Reporting Directive (CSRD). „For many companies, the challenge often lies not in a lack of data, but rather in its quality and integration. However, data platforms such as the SAP Business Data Cloud (BDC) make it possible to consolidate sustainability data from a wide variety of sources and use it to derive reliable CO₂ analyses and well-founded recommendations for action,“ says Ruth-Maria Katemann, Head of the Competence Center Analytics at Retailsolutions.
Along the value chain
To produce a reliable carbon footprint, information from procurement, production, logistics, and finance must be combined with external emissions data. This is exactly where data platforms come in. They consolidate operational data from systems such as SAP S/4 Hana—including procurement, production, and logistics data—and supplement this with external information such as emission factors, supplier data, industry benchmarks, or regulatory requirements. This creates a central database for seamless transparency—from raw material procurement to the point of sale. „The BDC, for example, creates a company-wide single source of truth. Different data sources are standardized, enriched, and linked together via a common sustainability data model. While SAP Datasphere harmonizes data from various SAP and non-SAP systems and places it within a common business context, the SAP Analytics Cloud enables the analysis, visualization, and simulation of sustainability scenarios. As an Intelligent Application within the BDC, the Sustainability Control Tower also offers comprehensive ESG reporting and management functions,“ explains Katemann.
„The use of AI can significantly simplify the mapping of emission factors.”
Ruth-Maria Katemann,
Head of the Competence Center Analytics,
Retailsolutions
AI for Real-Time CO2 Transparency
Of particular relevance is the ability to accurately calculate emissions along the supply chain. To do this, operational business data can be combined with emission factors and actual Product Carbon Footprints (PCFs) from suppliers. Through SAP Sustainability Data Exchange (SDX), companies can exchange primary data directly with business partners, thereby replacing estimates and industry averages with reliable emissions data. SAP Sustainability Footprint Management calculates PCFs and company-wide emissions figures and generates the Corporate Carbon Footprint (CCF). The solution links material and energy flows with emission factors, thereby enabling a detailed analysis of CO₂ emissions at the product, process, and company levels. „The integration of GenAI and machine learning, in particular, plays a key role. These technologies automate the mapping of emission factors and provide support through data cleansing and anomaly detection. In addition, AI-powered models can forecast emissions trends, identify hotspots in supply chains, and highlight opportunities for optimization,“ says Katemann. AI also simplifies the creation of sustainability reports: Generative AI can prepare ESG reports, automatically process data, and generate draft text. „In a recent project, for example, we implemented the Sustainability Control Tower and the corresponding reporting system. The main challenge here is to assign the appropriate emission factors to the data from procurement. The use of AI can significantly simplify the mapping of emission factors,“ adds Katemann.
Sustainability and Financial Figures
The insights gained have a direct impact on key areas of the business. In procurement, suppliers can be evaluated in the future not only on price and quality, but also on their carbon footprint. In supply chain management, the analyses make it possible to identify low-emission transportation routes and more efficient delivery networks.
Production managers also gain insight into emission-intensive processes and can optimize energy consumption in a targeted manner. At the same time, sustainability metrics can be linked to financial metrics, enabling companies to assess the economic and environmental impacts of their decisions. (Source: Retailsolutions)
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