Chasing Zero With SAP Industry Network for Automotive

Raymond S. Hughes

Posted 07-07-22

Submitted by SAP

overhead image of cars driving along a windy road

Details is a driving pressure when it comes to reduction of carbon emissions. Catena-X is setting up a knowledge ecosystem that generates the transparency of emission facts from small business associates throughout the close-to-end automotive price chain.

SAP Industry Network for Automotive offers support enterprises acquire insights into their solution carbon footprint info and identify additional potentials in cutting down greenhouse gasoline (GHG) emissions.

Scope 3 Emissions: The Greatest Problem to Accomplish Net Zero

Despite the enormous disruptions that firms are currently experiencing, weather adjust stays the most critical obstacle that industries should jointly tackle. To accomplish the purpose of the Paris Agreement of limiting world-wide warming to 1.5°C — which would lessen the likelihood of initiating the most risky and irreversible disasters of local climate transform — net zero CO2 emissions will need to be secured globally all-around mid-century. The European Union (EU) set an even much more formidable focus on to access climate neutrality by 2050.

This signifies, in shorter expression, that GHG emissions require to be diminished by a lot more than 50% by 2030 in buy to set a dependable pathway to meet the internet zero goal.

Whilst the biggest firms have particularly articulated sustainability or carbon neutrality as their strategic intention, number of have painted a distinct and thorough action system for the changeover. Restrictions these types of as the Corporate Sustainability Reporting Directive (CSRD) or new guidelines proposed by the United States Securities and Trade Fee (U.S. SEC) on disclosing corporate carbon details go away enterprises no time for empty green statements. The time to act is now!

Why is it so tricky to report on carbon emissions? Although reporting of scope 1 (immediate emissions from owned or managed sources) and scope 2 (indirect emissions from the era of acquired electrical power) emissions has already been well proven in numerous providers throughout the earth, visibility into the GHG emitted as a result of the source chain (scope 3), which represent the substantial share of the in general emission, is normally not ample.

In the automotive market for occasion, 98% of overall GHG emissions are scope 3 emissions. That is why it is even extra important to recognize carbon footprint reduction prospects together the provide chain. Deficiency of believe in, deficiency of access to substantial-excellent knowledge, inconsistent methodology or expectations of knowledge accounting, and deficiency of interoperable technological know-how solutions throughout the highly elaborate automotive provide chain are the primary road blocks to conquer.

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With GreenToken by SAP, companies can share their product carbon footprint with their small business partners in an uncomplicated, efficient, and secure way.

Unleash the Network Power for Decarbonization

To fulfill sustainability and regulatory requirements, companies need to work alongside one another with partners, suppliers, and consumers and create clear processes and common info benchmarks — from material acquisition to producing to distribution.

As the initial open and collaborative info ecosystem, Catena-X Automotive Network is targeting a additional sustainable sector value chain by incorporating all contributors associated and enabling the info transparency. Monitoring the product carbon footprint is one particular of the 1st use situations that Catena-X is now addressing. This is the starting up stage for a greater comprehending of the scope 3 GHG emissions, which sets the basis of enforceable decarbonization possibilities.

On one hand, a typical accounting and reporting methodology on products carbon footprint info is needed to guidance the consistency, comparability, and verifiability of the information sourced from the network associates. By partnering with the Globe Enterprise Council for Sustainable Enhancement (WBCSD), Catena-X adopts the framework of CO2 calculation plan and data model.

Before this 12 months, SAP was the very first corporation in the environment to accomplish a standardized carbon footprint value in a WBCSD proof of strategy. Importantly, the standardized tactic also encourages community associates to go away from unspecific market regular measurements and towards working with correct major emission data.

On the other hand, technological know-how is vital to operationalizing emission accounting and sharing. With its longstanding market method know-how as effectively as option greatest tactics, SAP acts strongly as a crucial enabler in item carbon footprint facts monitoring within the automotive network.

Field Network Solutions Empower Automotive Price Chain in Chasing Zero

With GreenToken by SAP, firms can share their item carbon footprint with their enterprise associates in an effortless, efficient, and protected way.

GreenToken is a World-wide-web-primarily based, subscription SaaS solution striving to develop accountability and transparency throughout the product source chain. Remaining compliant with the standardized data product described with WBCSD will help assure knowledge regularity throughout the network.

The product carbon footprint information can be managed and transferred very easily on substance stage in between direct organization companions.

It leverages an electricity-economical type of blockchain to notarize and transfer carbon emissions by way of tokens from just one provide chain member’s wallet to the next, without having disclosing non-public or private information. As these tokens travel together the offer chain downstream, the gathered information and facts will get shared, building a trusted, immutable, and auditable chain of custody. In addition, not only CO2 facts but also other information such as the origin of elements and certifications can be shared via this trustful and verifiable tactic.

The resolution presents a secured open API, accessible to other carbon emission calculation tools or back end methods for transactions. A immediate integration with SAP ERP Central Element 6. and SAP S/4HANA software is in put.

Transactions can also be pushed by import of CSV data files or manually, which suggests that little and midsize enterprises (SMEs) without having back stop business source scheduling (ERP) options can also leverage GreenToken for carbon details sharing within the network.

“GreenToken’s novel technique has the probable to produce an accountable and auditable community to scope 3 reporting that is lacking these days,” mentioned James Veale, co-founder of GreenToken by SAP. “What is more, we have now proved GreenToken at scale in other offer chains, and the resolution is now ready for Catena-X.”


Hagen Heubach is world wide vice president and head of Sector Business Unit Automotive at SAP, and a Board Member of the Catena-X Automotive Community.
Heiko Flohr is senior vice president and head of Solution Management for SAP for Discrete Industries, and a member of Direction Board for Catena-X Automotive Community.
Leyi Liu is portion of Solution Administration for SAP Market Network for Automotive and Catena-X Automotive Community.

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SAP’s tactic is to enable every single enterprise run as an intelligent, sustainable business. As a marketplace chief in enterprise application application, we assist organizations of all dimensions and in all industries operate at their best: SAP consumers generate 87% of whole global commerce. Our machine learning, Web of Matters (IoT), and superior analytics technologies support transform customers’ firms into intelligent enterprises. SAP will help give men and women and corporations deep business enterprise perception and fosters collaboration that can help them remain forward of their competitiveness. We simplify technological know-how for corporations so they can consume our computer software the way they want – without having disruption. Our conclude-to-close suite of programs and solutions allows company and community shoppers throughout 25 industries globally to function profitably, adapt repeatedly, and make a change. With a international network of clients, companions, staff members, and thought leaders, SAP helps the planet operate much better and increase people’s lives.

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