Understanding Data Calculation in Sustainability Footprint Management

SAP Sustainability footprint management (SFM) is a business process that minimizes the basis on which a firm may carry out production without compromising operational efficiency. It entails measuring the environmental impacts of product life cycles through the production, consumption, and disposal process.

The carbon footprint is the sum of GHG emitted directly or indirectly by some person, group, event, or product. This is most normally expressed in terms of CO2e, which aggregates the various kinds of greenhouse gases, such as methane (CH4) and nitrous oxide (N2O), based on how much they can warm the earth.

We shall explain a simple arithmetic of data computation in sustainability footprint management in this blog-by explaining its major metrics.

Key SAP Sustainability Metrics

SFM interfaces with SAP S/4HANA to access all product and operational data for detailed calculations of carbon from production until that product reaches a customer. The quantification of this footprint enables the organization to make informed decisions in resource use, waste generation, and carbon emissions. 

Before delving into the calculation of the data, some essential metrics must be defined clearly as follows:

1. Carbon Footprint (CO2e Emissions):

Counts are measured through GHG emissions resultant from consumption of energy, transport, and manufacture process.

2.Water Footprint:

The amount of freshwater either indirectly or directly used within an organization

3. Energy Consumption:

Energy consumed by different operations such as heating/cooling/lighting and manufacturing

4. Waste Generation:

It calculates the total amount of waste that an organization is producing, including hazardous and non-hazardous and recyclable waste.

5. Material Consumption:

Traces raw material for production and shows efficiency and sustainability of supply chain.

Steps to Calculate Data for Sustainability Footprint

1. Data Gathering:

Collection of data is the starting point of calculating the sustainability footprint. Inputs must be tracked across categories like energy, raw materials, water, and emissions. Data sources may include utility bills, transport logs, procurement records, and environmental assessments.

• Energy (e.g., kilowatt-hour consumed).
• Water consumption data (e.g. Liters consumed, source of water).
• Data on GHG emissions (e.g., direct, indirect).
• Waste statistics (e.g., tonnes generated, category of waste)

2. Classification of Impacts:

Data is now broken into scope and type of environmental impact. Recognition of direct versus indirect contributions is necessary.

• Scope 1 Emissions: Emissions from owned or controlled sources, directly (e.g. firm-owned vehicles, manufacturing)
• Scope 2 Emissions: Indirect generation of purchased energy.
• Scope 3 Emissions: Indirect emission from supply chain and distribution (employee travel, product lifecycle, etc.)

3. Models for Footprint Calculation:

Using all these data aggregated, several models and tools are therefore applied to calculate the total environmental impact, including LCA tools and carbon footprint calculators. This is during raw data conversion to standardized measures of environment impact, usually in terms of CO2-equivalents or kilolitres of water.

• Carbon Footprint from Energy Use

This formula is used to calculate CO2 emissions from electricity, heating, or fuel usage.

Carbon Footprint (CO2e) = Activity Data (e.g., kWh) × Emission Factor (CO2e/unit)

• Activity Data: This refers to the energy consumed, like kilowatt-hours (kWh) of electricity or Liters of fuel.
• Emission Factor: The emission factor is the amount of CO2e produced per unit of energy consumed. Different fuels have different emission factors.

Example (Electricity Use):

CO2e from Electricity=10,000 kWh×0.233 kg CO2e/kWh=2,330 kg CO2e

• Carbon Footprint from Water Consumption

Even water use has a carbon footprint due to the energy required for water treatment and delivery.

CO2e from Water Use = Water Use (m³) × Emission Factor (CO2e/m³)

• Water Use: Volume of water consumed in cubic meters.
• Emission Factor: This varies based on the region, depending on the energy intensity of water infrastructure.

Example (Water Consumption):

CO2e from Water = 50 m³ × 0.344 kg CO2e/m³ = 17.2 kg CO2e

• Carbon Footprint from Fuel Combustion

This formula calculates the carbon footprint from burning fuels like gasoline, diesel, natural gas, etc.

CO2e from Fuel=Fuel Consumption (Liters or m³) × Emission Factor (CO2e/unit)

• Fuel Consumption: The total volume of fuel consumed.
• Emission Factor: This varies based on the type of fuel (e.g., gasoline, diesel, natural gas). It is typically expressed as kg CO2e per Liter or cubic meter.

Example (Gasoline Use):

CO2e from Gasoline=500 Liters × 2.31 kg CO2e/Liter = 1,155 kg CO2e

• Carbon Footprint from Transportation

The formula below is used to calculate emissions from vehicles, whether personal or business-related.

CO2e from Transport = Distance Travelled (km) × Emission Factor (CO2e/km) CO2e

• Distance Travelled: Total distance driven by the vehicle.
• Emission Factor: CO2e per kilometre travelled, depending on the type of vehicle (car, bus, plane) and fuel efficiency.

Example (Car Travel):

CO2e from Car Travel=2,000 km × 0.21 kg CO2e/km = 420 kg CO2e

• Carbon Footprint from Waste

For waste, the carbon footprint depends on the type of waste (organic, plastic, etc.) and whether it is recycled, composted, or sent to a landfill.

CO2e from Waste = Weight of Waste (kg) × Emission Factor (CO2e/kg) CO2e

• Weight of Waste: Total mass of waste produced.
• Emission Factor: Varies depending on the type of waste and its treatment method (landfill, incineration, recycling).

Example (Organic Waste):

CO2e from Organic Waste = 1,000 kg × 0.45 kg CO2e/kg = 450 kg CO2e

• Carbon Footprint from Purchased Goods and Services

For organizations, the carbon footprint of purchased goods and services (also known as Scope 3 emissions) is calculated based on the environmental impact of the supply chain.

CO2e from Goods/Services = Total Spend (USD) × Emission Factor (CO2e/USD)

• Total Spend: The total amount of money spent on goods or services.
• Emission Factor: Represents the average carbon intensity of the specific product or service category per dollar spent.

Example (Office Supplies):

CO2e from Office Supplies = 10,000 USD × 0.1 kg CO2e/USD = 1,000 kg CO2e

• Global Warming Potential (GWP) Conversion

To convert other greenhouse gases into CO2-equivalents (CO2e), the formula is:

CO2e = Mass of Gas × Global Warming Potential (GWP)

• GWP of CO2 = 1
• GWP of Methane (CH4) = 28–36
• GWP of Nitrous Oxide (N2O) = 298

4. Normalization and Reporting:

The outcome should be normalized using specific factors such as production volume, size of workforce, or revenue. This makes it easy to compare with other departments or periods.

With normalization, all sustainability metrics are aggregated into reports, which will usually adhere to one of the standards set up; some of the most common ones include Global Reporting Initiative (GRI), Carbon Disclosure Project, or Science-Based Targets initiative.

5. Footprint Integration:

Integration ensures sustainability metrics align with broader business goals:

• Existing solutions:

Public APIs for integrating sustainability metrics into systems like SAP S/4HANA.
Supported modules are Finance, Procurement, and Production.

• Planned capabilities: 

Access business networks for improved cooperation and Integrated Business Planning (IBP).

Tools For Sustainability Management

1. SAP Sustainability Footprint Management: tracks carbon footprints across operations, products, and supply chains.
2. SAP EHS: Manages compliance, emissions, waste, and workplace safety.
3. SAP Product Footprint Management: Calculates product-level environmental impacts across lifecycles.
4. SAP Sustainability Control Tower: Offers real-time ESG performance insights and reporting.
5. SAP IBP: Integrates sustainability into supply chain planning.
6. SAP Analytics Cloud: provides advanced analytics and dashboards for ESG tracking.
7. SAP Cloud for Sustainable Enterprises: Combines multiple sustainability solutions for end-to-end support.

Best Practices

1.  Data Integration: Integrate data from SAP S/4HANA, business networks, and third parties for transparency.
2. Lifecycle Analysis: Analyse environmental impacts across product lifecycles.
3. Supply Chain Optimization: Design sustainable, cost-efficient supply chains using SAP IBP.
4. Compliance Management: Ensure regulatory compliance with SAP EHS.
5. Integrated ESG Reporting: Use tools like Analytics Cloud for standardized sustainability reporting.
6. Stakeholder Collaboration: Leverage business networks for shared sustainability goals.
7. Continuous Monitoring: Track progress with real-time insights using the Control Tower.

Conclusion

The actual input of data into SAP sustainability footprint management can be traced and minimized the ecological influences. Systematic collection, classification, and analysis of data from organizations allow major sources of emissions and resource use to be identifiable, thereby making more informed decisions towards more sustainable practices. Improving corporate responsibility through SAP Sustainability Footprint Management also leads to long-term profitability through cost reductions and conformity with global goals.

Companies can only remain at the top of this sustainability journey by utilizing the proper tools and methodologies for a green future for all.

At ArchLynk, we specialize in implementing SAP solutions, including SAP Sustainability Footprint Management, to help businesses integrate sustainability into their operations. Let us guide you in achieving your environmental and operational goals with tailored solutions. Click here to speak to an expert.