Chasing Zero With SAP Industry Network for Automotive

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Revealed 07-07-22

Submitted by SAP

overhead image of cars driving along a windy road

Knowledge is a driving force when it will come to reduction of carbon emissions. Catena-X is creating a knowledge ecosystem that generates the transparency of emission info from organization partners throughout the end-to-end automotive price chain.

SAP Sector Community for Automotive deals enable enterprises acquire insights into their product or service carbon footprint knowledge and determine more potentials in reducing greenhouse fuel (GHG) emissions.

Scope 3 Emissions: The Major Problem to Obtain Net Zero

Despite the substantial disruptions that companies are at this time going through, local weather change remains the most essential problem that industries need to jointly tackle. To accomplish the target of the Paris Arrangement of limiting international warming to 1.5°C — which would lessen the likelihood of initiating the most perilous and irreversible disasters of climate modify — web zero CO2 emissions need to be secured globally all around mid-century. The European Union (EU) set an even extra formidable target to arrive at climate neutrality by 2050.

This indicates, in shorter time period, that GHG emissions will need to be minimized by a lot more than 50% by 2030 in get to set a dependable pathway to satisfy the internet zero target.

While the premier providers have especially articulated sustainability or carbon neutrality as their strategic intention, several have painted a very clear and complete action system for the transition. Restrictions these types of as the Company Sustainability Reporting Directive (CSRD) or new procedures proposed by the United States Securities and Exchange Commission (U.S. SEC) on disclosing corporate carbon knowledge depart organizations no time for empty green statements. The time to act is now!

Why is it so tough to report on carbon emissions? When reporting of scope 1 (direct emissions from owned or managed sources) and scope 2 (indirect emissions from the technology of ordered power) emissions has now been nicely established in numerous organizations all through the environment, visibility into the GHG emitted through the source chain (scope 3), which constitute the important share of the in general emission, is usually not adequate.

In the automotive business for occasion, 98% of total GHG emissions are scope 3 emissions. That is why it is even extra crucial to establish carbon footprint reduction possibilities along the supply chain. Lack of believe in, absence of obtain to substantial-quality knowledge, inconsistent methodology or benchmarks of details accounting, and absence of interoperable technological know-how solutions throughout the remarkably advanced automotive source chain are the key hurdles to overcome.

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With GreenToken by SAP, corporations can share their product carbon footprint with their small business companions in an quick, successful, and safe way.

Unleash the Network Electric power for Decarbonization

To satisfy sustainability and regulatory necessities, organizations need to operate with each other with associates, suppliers, and buyers and set up clear procedures and prevalent knowledge specifications — from material acquisition to manufacturing to distribution.

As the initially open up and collaborative info ecosystem, Catena-X Automotive Community is concentrating on a additional sustainable sector worth chain by incorporating all contributors associated and enabling the information transparency. Tracking the solution carbon footprint is a person of the initially use conditions that Catena-X is now addressing. This is the setting up level for a superior comprehension of the scope 3 GHG emissions, which sets the foundation of enforceable decarbonization possibilities.

On just one hand, a prevalent accounting and reporting methodology on item carbon footprint details is demanded to support the consistency, comparability, and verifiability of the details sourced from the network companions. By partnering with the Entire world Business Council for Sustainable Growth (WBCSD), Catena-X adopts the framework of CO2 calculation plan and info model.

Earlier this year, SAP was the to start with firm in the entire world to reach a standardized carbon footprint benefit in a WBCSD evidence of concept. Importantly, the standardized solution also encourages network partners to go away from unspecific industry regular measurements and towards applying correct key emission knowledge.

On the other hand, technological innovation is essential to operationalizing emission accounting and sharing. With its longstanding marketplace approach know-how as nicely as alternative very best tactics, SAP acts strongly as a crucial enabler in solution carbon footprint details monitoring inside the automotive network.

Market Community Answers Empower Automotive Price Chain in Chasing Zero

With GreenToken by SAP, corporations can share their products carbon footprint with their business enterprise partners in an easy, effective, and secure way.

GreenToken is a Web-dependent, membership SaaS solution striving to produce accountability and transparency across the substance provide chain. Getting compliant with the standardized info design outlined with WBCSD aids ensure information regularity across the network.

The product or service carbon footprint facts can be managed and transferred quickly on content degree involving direct organization companions.

It leverages an electrical power-economical form of blockchain to notarize and transfer carbon emissions through tokens from a person provide chain member’s wallet to the upcoming, with no disclosing non-public or private data. As these tokens travel along the source chain downstream, the gathered data receives shared, building a reputable, immutable, and auditable chain of custody. In addition, not only CO2 info but also other information and facts this sort of as the origin of sections and certifications can be shared via this trustful and verifiable approach.

The answer offers a secured open API, obtainable to other carbon emission calculation instruments or back again conclusion solutions for transactions. A immediate integration with SAP ERP Central Component 6. and SAP S/4HANA application is in place.

Transactions can also be pushed by import of CSV information or manually, which implies that tiny and midsize enterprises (SMEs) devoid of back close business source planning (ERP) solutions can also leverage GreenToken for carbon knowledge sharing inside the community.

“GreenToken’s novel strategy has the opportunity to create an accountable and auditable network to scope 3 reporting that is lacking today,” said 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 completely ready for Catena-X.”

 

Hagen Heubach is worldwide vice president and head of Marketplace Organization Device Automotive at SAP, and a Board Member of the Catena-X Automotive Network.
Heiko Flohr is senior vice president and head of Products Administration for SAP for Discrete Industries, and a member of Steering Board for Catena-X Automotive Community.
Leyi Liu is section of Answer Administration for SAP Sector Community for Automotive and Catena-X Automotive Community.

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