SAP Sustainability Data Exchange aims to transform how companies handle carbon-related data, offering a solution to standardize and streamline the collection, sharing, and analysis of emissions information across supply chains.
Efforts to achieve net-zero emissions require businesses to address not only their direct carbon output but also the emissions generated throughout their supply chains. This presents challenges due to the outdated tools and fragmented processes many companies still rely on, such as spreadsheets and questionnaires. Furthermore, the lack of standardization in calculating and exchanging carbon data often results in the use of broad industry averages rather than precise, supplier-specific data.
SAP Sustainability Data Exchange, a cloud-based SaaS application, addresses these challenges by providing a platform for standardized carbon data sharing. This innovation helps businesses move from estimated to actual emissions data, enabling them to pinpoint carbon-intensive products or processes and implement targeted reductions. The solution also mitigates the risk of double-counting emissions and enhances trust in carbon footprint calculations by integrating verified supplier data.
The Role of SAP Sustainability Data Exchange
As part of SAP’s extensive ecosystem, SAP Sustainability Data Exchange integrates seamlessly with SAP S/4HANA and SAP Sustainability Footprint Management. This connection facilitates accurate and scalable product carbon footprint calculations, embedding sustainability data into core business processes. With these capabilities, organizations can align their operational strategies with climate goals more effectively.
A key feature of the application is its interoperability with major industry networks and standards, such as Catena-X and the Partnership for Carbon Transparency (PACT). These partnerships ensure that SAP Sustainability Data Exchange adheres to global frameworks for emissions accounting, particularly for scope 3 emissions, which occur outside a company’s direct control. The collaboration between Catena-X and PACT establishes a robust foundation for carbon data standardization, enhancing co-innovation while safeguarding data sovereignty.
WITTE Automotive, a leading automotive supplier, exemplifies the application’s benefits. By using the solution, the company integrated supplier data from the Catena-X network, calculated precise product carbon footprints, and shared this information efficiently with customers and suppliers. This demonstrates the scalability and practicality of the solution in addressing real-world sustainability challenges.
A Broader Vision for Sustainability
SAP Sustainability Data Exchange forms part of SAP’s overarching vision to support businesses in becoming networks of intelligent, sustainable enterprises. This approach leverages the SAP Business Network, which facilitates over 750 million transactions annually, valued at nearly $6 trillion. The application harnesses this extensive global network to drive collaborative climate action and support sustainability initiatives at scale.
Christian Klein, CEO of SAP SE, emphasizes the importance of creating open and collaborative ecosystems. SAP Sustainability Data Exchange exemplifies this by enabling organizations to integrate sustainability considerations into their operational and strategic decisions. Its compatibility with the SAP Green Ledger, set for general availability in late 2024, strengthens this vision by helping companies manage carbon as a quantifiable asset, akin to financial resources.
Toward a Green Ledger Approach
For many companies, carbon management is becoming as critical as financial management. Accurate data on emissions throughout the supply chain enables businesses to measure, report, and act on their carbon footprint with the same rigor as traditional balance sheet metrics. SAP Sustainability Data Exchange, alongside the forthcoming SAP Green Ledger, offers the tools needed to integrate carbon accountability into financial decision-making.
By aligning operational goals with sustainability objectives, the German enterprise software giant’s innovative solutions position businesses to make meaningful progress toward climate targets while maintaining transparency and precision. This integration not only promotes environmental responsibility but also provides actionable insights that can drive long-term growth and resilience.
