Chasing Zero With SAP Industry Network for Automotive

Knowledge is a driving drive when it will come to reduction of carbon emissions. Catena-X is setting up a details ecosystem that produces the transparency of emission details from business partners across the stop-to-close automotive value chain.

SAP Industry Community for Automotive deals help enterprises achieve insights into their item carbon footprint knowledge and detect additional potentials in minimizing greenhouse gasoline (GHG) emissions.

Scope 3 Emissions: The Largest Problem to Obtain Internet Zero

In spite of the huge disruptions that businesses are presently experiencing, local weather improve stays the most vital problem that industries should jointly tackle. To reach the purpose of the Paris Arrangement of restricting worldwide warming to 1.5°C — which would decrease the risk of initiating the most unsafe and irreversible disasters of climate improve — net zero CO2 emissions will need to be secured globally all-around mid-century. The European Union (EU) set an even extra ambitious focus on to access local weather neutrality by 2050.

This usually means, in shorter term, that GHG emissions require to be lessened by much more than 50% by 2030 in get to set a liable pathway to satisfy the web zero focus on.

Whilst the largest corporations have precisely articulated sustainability or carbon neutrality as their strategic target, few have painted a apparent and complete motion approach for the transition. Regulations these types of as the Company Sustainability Reporting Directive (CSRD) or new policies proposed by the United States Securities and Exchange Commission (U.S. SEC) on disclosing company carbon facts go away organizations no time for vacant green statements. The time to act is now!

Why is it so difficult to report on carbon emissions? When reporting of scope 1 (direct emissions from owned or managed resources) and scope 2 (indirect emissions from the era of bought energy) emissions has currently been well proven in a lot of providers all through the world, visibility into the GHG emitted via the source chain (scope 3), which constitute the major share of the in general emission, is typically not enough.

In the automotive field for instance, 98% of total GHG emissions are scope 3 emissions. That is why it is even additional very important to discover carbon footprint reduction possibilities along the provide chain. Lack of believe in, absence of obtain to substantial-excellent details, inconsistent methodology or criteria of information accounting, and lack of interoperable technological innovation answers throughout the extremely complex automotive offer chain are the main obstacles to defeat.

Unleash the Community Electric power for Decarbonization

To meet up with sustainability and regulatory prerequisites, providers want to work collectively with companions, suppliers, and consumers and set up transparent procedures and popular information benchmarks — from materials acquisition to production to distribution.

As the 1st open up and collaborative data ecosystem, Catena-X Automotive Network is concentrating on a a lot more sustainable marketplace value chain by incorporating all members concerned and enabling the information transparency. Monitoring the product carbon footprint is just one of the very first use circumstances that Catena-X is now addressing. This is the starting up issue for a far better knowledge of the scope 3 GHG emissions, which sets the foundation of enforceable decarbonization prospects.

On a single hand, a common accounting and reporting methodology on product carbon footprint facts is essential to support the consistency, comparability, and verifiability of the details sourced from the community associates. By partnering with the Planet Business Council for Sustainable Development (WBCSD), Catena-X adopts the framework of CO2 calculation plan and details model.

Previously this 12 months, SAP was the very first organization in the globe to realize a standardized carbon footprint benefit in a WBCSD proof of concept. Importantly, the standardized tactic also encourages network companions to transfer away from unspecific business regular measurements and toward employing exact key emission info.

On the other hand, technologies is vital to operationalizing emission accounting and sharing. With its longstanding marketplace system know-how as well as remedy finest practices, SAP functions strongly as a vital enabler in solution carbon footprint details tracking inside the automotive network.

Market Network Options Empower Automotive Value Chain in Chasing Zero

With GreenToken by SAP, businesses can share their product carbon footprint with their business partners in an effortless, effective, and secure way.

GreenToken is a Net-primarily based, membership SaaS solution striving to develop accountability and transparency across the product offer chain. Currently being compliant with the standardized facts product defined with WBCSD will help guarantee data consistency across the community.

The product or service carbon footprint info can be managed and transferred easily on substance stage involving immediate business associates.

It leverages an electricity-successful form of blockchain to notarize and transfer carbon emissions via tokens from one particular supply chain member’s wallet to the following, with no disclosing personal or private knowledge. As these tokens travel along the offer chain downstream, the gathered details gets shared, making a trustworthy, immutable, and auditable chain of custody. In addition, not only CO2 knowledge but also other facts this sort of as the origin of parts and certifications can be shared by way of this trustful and verifiable technique.

The remedy gives a secured open API, obtainable to other carbon emission calculation equipment or again end answers for transactions. A immediate integration with SAP ERP Central Part 6. and SAP S/4HANA computer software is in put.

Transactions can also be pushed by import of CSV files or manually, which indicates that compact and midsize enterprises (SMEs) without again close organization source preparing
(ERP) options can also leverage GreenToken for carbon information sharing in just the community.

“GreenToken’s novel approach has the potential to create an accountable and auditable community to scope 3 reporting that is missing nowadays,” claimed James Veale, co-founder of GreenToken by SAP. “What is a lot more, we have previously proved GreenToken at scale in other offer chains, and the alternative is now prepared for Catena-X.”

 

Hagen Heubach is worldwide vice president and head of Market Business Device Automotive at SAP, and a Board Member of the Catena-X Automotive Community.
Heiko Flohr is senior vice president and head of Solution Administration for SAP for Discrete Industries, and a member of Assistance Board for Catena-X Automotive Network.
Leyi Liu is part of Remedy Administration for SAP Sector Network for Automotive and Catena-X Automotive Community.