Last fall I wrote a blog introducing SAP Sustainability Data Exchange, a solution that enables you to digitally request carbon footprint data from your trading partners. Your suppliers can then respond digitally within the application through a form-based request and respond feature. The most promising and compelling part of the solution is the fact that companies can move from using estimated values to generating highly accurate data from suppliers for their footprint calculation.
Today, I will bring you up to date with a number of developments that have occurred in the last six months with respect to the SAP Sustainability Data Exchange (SDX) solution.
First, to recap.
Scope 3 emissions not only make up a majority of your emissions, but also are ‘not owned or controlled by the reporting organization,’ according to the EPA Center for Corporate Climate Leadership. The organization goes on to ascertain that ‘Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization’s total greenhouse gas (GHG) emissions’, as much or more than 70 percent of a business’ carbon footprint. Therefore, it is necessary to collaborate with your suppliers and other trading partners to affect any change in your carbon emissions along your value chain. You simply cannot do this alone.
A Sustainability Data Exchange Refresher
The SAP Sustainability Data Exchange (SDX) application allows organizations to communicate about, measure, and manage Scope 3 emissions information in the supply chain, by the sharing of product carbon footprint data with respective trading partners. The data exchanged complies with common standards, such as the World Business Council for Sustainable Development’s Partnership for Carbon Transparency (WBCSD PACT) and is officially certified by a Catena-X conformity assessment body so carbon values can be delivered in a trusted, auditable way. The application is both interoperable and industry-agnostic.
SDX enables you to measure Scope 3 emissions, moving from averages to actuals using an interoperable, cloud-based, industry-agnostic approach that drives scalability, standardization, and trust in carbon data exchange across your supply chain.
SDX meets regulatory requirements across different regions (e.g., European Green Deal, Batteries Directive, Supply Chain Act, etc.) and allows for an identification of CO2 reduction opportunities in products and processes to enable target setting and optimization in scenario planning. Not only does the solution enable companies to enhance and uphold their own brand reputation and value through the targeting of scope 3 emissions, but also it supports suppliers and trading partners across the supply chain to accelerate their own decarbonization journeys.
Recent Innovations with SAP Sustainability Data Exchange
As mentioned above, the data exchanged complies with the WBCSD PACT standard. We are therefore delighted to announce that SDX is a PACT/WBSCD conformant solution.[1] This means that the SAP Sustainability Data Exchange solution is conformant with the technical specifications of the Partnership for Carbon Transparency (PACT) framework of the World Business Council of Sustainable Development (WBSCD). PACT seeks to accelerate decarbonization by creating transparency on emissions in the value chain. It establishes a standardized methodology and technology infrastructure for the precise and primary measurement of Scope 3 emissions, facilitating data exchange.
In addition, we are excited to announce that the integration of SAP Sustainability Data Exchange and SAP Sustainability Footprint Management has been completed. SAP Sustainability Footprint Management is the SAP solution that calculates your carbon footprint on a corporate or product level, while SAP Sustainability Data Exchange is the engine that enables peer-to-peer communication to exchange data and messages. This integration enables you to quickly gain visibility into the full picture of your carbon footprint at scale, with calculations that integrate supplier data and existing business data. Together, you have a powerful combination.
Your suppliers can provide a more accurate footprint value, simply because they are aware of the origin, procurement, and production processes of a given material or component and are not limited to average database values. These data are then seamlessly pushed to the SAP Sustainability Footprint Management solution, where they are then used to calculate the total footprint of the manufactured product. This integration enables you to generate carbon footprint documentation with confidence, act to decarbonize your business processes, and illustrate progress through granular transparency.
The last update is that you can quickly and easily access SAP Sustainability Data Exchange on the SAP Store. There is free membership for your suppliers, so there is no need to hesitate. Access the solution here.
Get Started
Together SDX and SFM can provide you with significant and unique value. Get started today to address your supply chain emissions that are likely the largest component of your Scope 3 emissions. Embark on a journey to get actionable insights into your Scope 3 emissions by moving from averages to actual supplier data. Not only will you enable holistic corporate footprint initiatives, but also you can run sensitivity analysis of different organizational footprint inventories to identify relevant areas for enhancing towards activity-based calculations.
What are you doing today to address scope 3 emissions? Let us know in the comment section below. If you need more information, visit us online.
[1] PACT | PACT Conformant Solutions (carbon-transparency.com)
