Tracking the carbon footprint cleanly
Whereas until a few years ago initiatives for more sustainability in one's own company were, so to speak, part of good manners and offered the opportunity to positively distinguish oneself from the competition, many customers and investors today take it for granted to have a coherent sustainability strategy.
In the field of environment and climate protection, the carbon footprint has established itself as a relevant metric. Companies are confronted with the extent of the emissions they cause - depending on the area of activity, for example in the manufacture of their products. But the focus is also on the selection of business partners, such as suppliers, and their behavior. Wilhelm Heckmann, Managing Director of CNT Management Consulting in Switzerland, a consulting firm specializing in digitalization, explains how decision-makers can use SAP to compare relevant factors and thus obtain a transparent picture of how far they have come in achieving their goals.
Pressure on companies increases
Sustainability and climate change have become relevant topics for decision-makers in the Swiss economy. This is also shown by the results of the Deloitte 2023 CxO Sustainability Report. Four out of ten Swiss CxOs surveyed rank climate change among the top three priorities for their business, and in three out of four organizations, sustainability investments have increased in the past year. Strikingly, decision-makers at Swiss companies feel strongly affected by the impacts of climate change compared to their international peers. For example, 48 percent of respondents in Switzerland say they feel pressure from shareholders, compared with a global average of just 41 percent. 47 percent also perceive pressure from civil society, compared with only 38 percent internationally.
Focus: CO2 targets
Large Swiss companies will be required by law to report on their CO2 targets from 2023, affecting around 250 companies. Many Swiss companies, not only those required by law, are increasingly addressing sustainability targets and digitizing their progress. This often affects the entire value chain, including suppliers and subsidiaries. Sustainability should be considered comprehensively to avoid risks from uncooperative business partners.
Carbon footprint and digital managing
Various software solutions from SAP offer a smart way to conduct professional sustainability monitoring. SAP Sustainability Footprint Management enables companies to measure and analyze the carbon footprint of their products and optimize it throughout the entire lifecycle. By providing conclusive data on energy and water consumption and other sustainability factors, decision makers can act on this data and identify opportunities for improvement. "SAP Ariba Supplier Risk, in turn, is designed to track not only the financial stability of suppliers, but also their sustainability performance with real-time data and alerts," Heckmann explains. The "SAP Responsible Design and Production" solution enables data-driven, environmentally friendly product development and manufacturing, reducing the amount of plastic, for example. Finally, the SAP Sustainability Control Tower brings together data from different levels and gives managers an overview of various sub-areas.
Source: CNT Management Consulting AG
