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How SAP Industry Network Helps Achieve Sustainable Supply Chains

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SAP Industry Network for Automotive expands on the German tech giant’s existing network for the oil and gas industry by offering a package of software solutions to help enterprises manage their product carbon footprint data.

Earlier this year, SAP became the first organization in the world to achieve a standardized carbon footprint value in a World Business Council for Sustainable Development (WBCSD) proof of concept. By using their innovative SAP Sustainability Optimizer and integrating it with their powerful Solution for Energy & Climate Management, they were able to provide a way for organizations to calculate and measure their greenhouse gas emissions. This will allow companies to have a better understanding of how sustainability efforts can be tailored to match their needs.

The SAP Chasing Zero campaign was also launched last year with a strong sense of the need to not only become an enabler for sustainable business practices but to also set an example towards sustainability. Among other things, it requires creating awareness about the need for sustainable business practices and demonstrating how SAP takes a lead in this area.

Furthermore, technology is vital to making emission reduction commitments a reality. With decades of process know-how and best practices in place, SAP is an integral part of the solution in tracking carbon footprint data across the automotive network. For example, the SAP Industry Network for Automotive provides a platform that businesses can work on to find out more about what drives greenhouse gas (GHG) emissions and how they can best mitigate them.

Hagen Heubach, Global Vice President and Head of Industry Business Unit Automotive at SAP, who is also a Board Member of the Catena-X Automotive Network, said in an article:

“To meet sustainability and regulatory requirements, companies need to work together with partners, suppliers, and customers and establish transparent processes and common data standards — from material acquisition to manufacturing to distribution.”

Expediting Sustainability with SAP Industry Network Solutions

SAP’s web-based, subscription Software as a Service (SaaS) technology, called GreenToken, is an example of an industry network solution striving to create accountability and transparency across the material supply chain with their standardized data model that is compliant with the WBCSD. GreenToken by SAP is an application powered by the SAP Cloud Platform Blockchain service, which utilizes an energy-efficient form of blockchain to notarize and transfer carbon emissions from one supply chain member’s wallet to another. This is done without disclosing private or confidential data, which makes it a secure and transparent way for organizations to get involved in sustainability initiatives.

Moreover, this solution also provides a secured open Application Programming Interface (API), which allows for the automation of reporting and data collection tasks, as well as the direct integration with SAP Enterprise Resource Planning Central Component 6.0 (SAP ECC) and SAP S/4HANA software. This enables any organization to benefit from this powerful data-driven forecasting solution for carbon emission calculations.

According to GreenToken by SAP Co-Founder James Veale, the company is using a novel approach to create a system that allows for an accountable and auditable network of third party organizations to be responsible for the scope 3 reporting that is currently lacking in today’s market. He further added:

“What is more, we have already proved GreenToken at scale in other supply chains, and the solution is now ready for Catena-X.”

The Catena-X Automotive Network is the world’s first open and collaborative data ecosystem. It is pioneering a new way of working with automotive industry stakeholders that ensures every participant in the process can be incorporated into the ecosystem and data transparency is enabled. By also partnering with the WBCSD, Catena-X has adopted a framework and data model that is designed to calculate the CO2 emissions of a wide range of industry sectors and activities.

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