SAP Receives a New Carbon Footprint Solution from SNP's EXA

SAP Receives a New Carbon Footprint Solution from SNP's EXA

By CIOReview | Monday, October 17, 2022

EXA is an SNP company and provides financial management transformation solutions that focus on operational transfer pricing and global value chains. 

FREMONT, CA:The SNP company EXA offers financial management transformation services emphasising international value chains and operational transfer pricing. EXA's next-generation Product Carbon Footprint (PCF) solution has now been made public by SNP.

The SNP PCF creates a worldwide bill of materials for each product, a cradle-to-gate solution, using financial and logistical information obtained from SAP enterprise resource planning (ERP) systems. This enables companies to categorise carbon emissions down to the most minute level of operations, such as purchasing each commodity from a third-party supplier and each value-added activity carried out within the organisation.

Manufacturers need to take action to comprehend and lessen their product's carbon footprint because the manufacturing sector consumes 54 per cent of all energy sources and contributes roughly 20 per cent of global carbon emissions (PCF).

The necessity to develop a carbon baseline is highlighted by rising consumer awareness of environmentally friendly products and the need from customers, investors, and governments for accurate PCF labelling on all items.

After taking on the project, companies quickly realise that determining their PCF can be difficult. This is due to the fact that they must first comprehend their complete value chains, which presents numerous difficulties. Obtaining trustworthy and accurate information on the materials, components, and processes that measure CO2 emissions for their products is the hardest difficulty of all.

Customers can achieve it thanks to EXA's Product Carbon Footprint solution (EXA PCF).

From the extraction of raw materials through the creation of products all the way to the factory gate, the environmental impact is evaluated. The source ERP systems are used to retrieve the underlying bill of materials data. They are able to map carbon emissions values to each material and each process steps because of the highly specific information it includes.

The addition of SNP PCF to SNP's software portfolio in the SAP environment, which currently consists of data transformation, data management, and analytics, marks a new turning point. SNP is helping the globe reach its goal of a net zero carbon footprint by the year 2050 with the new solution, according to Gerald Faust, Managing Director and CEO of SNP for the Asia Pacific, Japan, and the Middle East.

The CEO and co-founder of EXA, Divya Vir Rastogi, continues, Manufacturers must address the issue of decarbonization immediately. The correct assessment and control of carbon footprints, however, takes place not only at the level of individual products but also at the level of each unique material and production process. Only then can carbon emissions be appropriately ascribed and rolled up to the product level.

While life cycle assessment (LCA) databases or providers can provide carbon emission estimates, businesses can apply actual emission values to different operations. The majority of industrial sectors have trouble obtaining trustworthy and verifiable data to create a global bill of materials to calculate the CO2 emissions of their goods. SNP PCF provides the required information and aids in calculating the corresponding greenhouse gas emissions from items.

SNP is a notable developer of software for controlling intricate digital transformation processes. SNP provides an automated method utilising specially created software in place of conventional IT consulting in the ERP system.