Calculation of Organizational Carbon Footprint usi...

Arjun_Mukherjee · ‎11-30-2023

Hello all welcome to my new blog on SAP Sustainability Footprint Management .As discussed earlier i have divided the how to implement SAP SFM for your organization based on the

Procurement of Product from Supplier (Part 1) (Link : https://blogs.sap.com/2023/11/23/calculation-of-carbon-footprint-using-sap-product-footprint-managem...)

Overall Organization Product footprint including the Production and Storing of the Final Product . ( Part 2)

Today We will be discussing part 2 . To Begin with there are few pre-requisites which need to be checked Prior to implementation of the SAP Sustainability Footprint Management with integration to SAP S/4HANA On Premise

· The minimum supported version is 2021 Feature Pack Stack 01 and later.

· SAP OSS notes 329899 and 3342592 need to be implemented on the On Premise System if SAP S/4HANA version is lesser than 2021 SP 05 or 2022 SP 03

Scenario: Organization is involved in the procurement of Product A from multiple Supplier X and Y . Using the Procured Product Organization produces final Product B while producing it utilizes Resource 1 for 120 Minutes . After producing the final Product it is stored in High rack Storage facility inside a Warehouse

In our initial blog i have showcased how the carbon footprint of the Procured product can be calculated. Now we roll-up our calculation of carbon footprint to the co-operate level where we would include the carbon emission from the manufacturing process , storage process.

Process flow for the calculation of footprint at co-operate level

Figure 1: Organization Footprint Calculation Flow

Step 1: Firstly as we would be need to create the process flow that is followed in the industry facility , this process flow is termed in SAP Sustainability Footprint Management as " Energy Flow"

The App used is " Model Energy Flow Model"

Figure 2: Model Energy Flow

Here we detail out the following

1.Energy Carrier :-As the Energy used in the process can be from coming from Electricity , Water, Wind . we here describe those as they will be having different Total Co2e /Unit

2.Energy Source : Now the Energy could be sourced from different sources such Electricity from Source 1 , Source 2 which may produce those energies in different methods leading different Total Co2e.

3.Resources : Ultimately these energies are utilized in different resources which could be a machine, lift, cranes etc.

4.Infrustructure and Facilities : Only resource's are not the utilizer of these energies there are infrastructure involved in the process such as any metering gauge, building who are also involved the process of the Total Co2e emission . These also need to be taken care to roll up to the Total Co2e of the co-operate .

Figure 3: Details of Energy Carrier, Source

Figure 4: Details of Energy using Infrastructures

Figure 5: Details of Energy Using Facilities used in organization as Storage

Step 2: Now we could allocate the Manual Emission's are all the emission could not be directly sources from an resource and roll up to the Co-operate level here we could use this Manual Allocation .

Example being each of the resource would produce heat in the process of manufacturing which would necessarily not distributed to any particular product but would be allocated across all the product in a ratio.

This App " Manage Allocation" set the allocation rule for across the Product, infrastructure and facilities

Figure 6: Manage Allocation of Emission

Figure 6.1: Managing Allocation Rule

Step 3: After the Energy Flow Model is ready and allocation are done. We would dive in the calculation of the carbon footprint at the co-operate level.

In the previous step in Part 1 we have already imported the Master data , business transaction data which are also involved here for the calculation

For Calculation we have 2 scenario Metered and partially/Non Metered scenario

Where we do have the meter's installed to measure the consumption of the current we can identify it as metered scenario

Where consumption for some resource cannot be measured an we just use the Manage Allocation app to clarify the allocation of the Carbon emission factor .This scenario is identified as Partially Metered scenario.

Step to Calculate ( Non-Metered)

Enter the Energy Bill i.e. Energy Consumed overall in the organization and its Co2e

Enter the Meter Reading i.e. Energy consumed for each Resource , facilities

Enter the Manual Allocation is any

Click on Calculate

Figure 7: Steps for Organization Calculation

Figure 7.1: Managing Meter Readings

In Current scenario this reading are all manual Import but SAP have API integration in the Road Map

Conclusion

SAP Sustainability Footprint Management, we have just started the journey to holistic product footprint calculation and management. One of the features which allow to publish the result the SAP S4/HANA would benefit the SAP user to procure based on the carbon footprint result which would lead to sustainable procurement. In-build Analytics " Footprint Overview" gives us a clear view on the Scope 1 ,2, 3 Emission based on the energy source involved in our energy flow model