SAP Sustainability Control Tower for ESG Reporting in SAP: How an ERP-Centered Approach Works

Reliable GHG metrics in SCT in 5 weeks! You think that is not possible? – In the following article, we explain how this is possible.

Initial Situation: Complexity in ESG Reporting

The internationally active manufacturing company Knauf from Iphofen recognized early on that ESG reporting entails increasing requirements for data consistency, transparency, and traceability. In particular, manual data collection processes and heterogeneous data sources entail the risk of inconsistencies as well as increased operational effort.

The IT organization at Knauf anticipated these requirements at an early stage and is driving a proactive, data-driven approach. The objective is to consistently reduce manual activities in ESG reporting and, from the outset, establish a consistent, transparent, and reliable data foundation based on existing ERP systems.

In manufacturing companies, large volumes of diverse data are generated, ranging from energy consumption and supply chain information to emissions. The crucial point: This data is usually already available in the operational SAP systems.

Objective of the Proof of Concept

The objective of the PoC was to significantly reduce manual effort in ESG reporting and to create a future-proof foundation for deriving ESG metrics. The focus was on the question of whether ESG metrics can be derived directly from existing ERP document data, thereby creating a sustainable alternative to previous workarounds.

Instead of relying on external tools, the company opted for an ERP-centered approach and the use of SAP Sustainability Control Tower in combination with SAP Best Practices.

The advantage:
Existing data structures are retained and are specifically leveraged for ESG reporting.

The Solution: ERP-Centered Integration with IBIS Data Bridge

In the Proof of Concept, IBIS Data Bridge served as the central link between operational SAP document data and the SAP Sustainability Control Tower (SCT).

It enables a standardized derivation of ESG activities and metrics directly from existing ERP data. Relevant transactions are identified, structured, and transferred into SCT-compliant data points.

The key aspects are:

·        Derivation of ESG activities from ERP document data

·        Structuring and mapping to SCT data points

·        Option for subject-matter enrichment (e.g., emission factors or method selection)

·        End-to-end integration into the SAP Sustainability Control Tower

The result:

·        up to 60% less implementation effort through the use of existing data structures

·        approximately 90% automated data flow in the provision of ESG data

·        a consistent and traceable ESG data foundation

The IBIS Data Bridge Explained in 3 Simple Steps

Step 1 - Identification and Preparation of the Data Foundation

Relevant ESG data is identified in the operational SAP systems and assessed for usability. This establishes which document data will serve as the basis for deriving ESG activities.

Step 2 - Configuration of the SAP Sustainability Control Tower

Based on the existing ERP structures, the organizational model is derived in the SAP Sustainability Control Tower (SCT). Master data, such as company codes, plants, or relevant objects, is transferred automatically and forms the basis for further configuration in SCT.

Step 3 - Automated Data Transfer

The derivation of ESG activities and metrics from ERP document data is performed in the IBIS Data Provider. Data is systematically prepared, enriched from a business perspective, and processed further within the system context without media discontinuity.

This ensures that it is always transparent how metrics are derived from the underlying document data. The resulting data is structured and transferred to the SAP Sustainability Control Tower, where it is available consistently for reporting.

Successful PoC in Just 5 Weeks

As part of a Proof of Concept, the SAP Best Practice approach was implemented together with SAP, IBIS Prof. Thome AG, and FairConsult 24|7. Within just 5 weeks, the project was successfully completed and is now scalable.

The result:

// Implementation within just five weeks

// Complete integration of relevant ESG Scope 3 data into SAP SCT

// Audit-ready data foundation in SAP Sustainability Control Tower

Conclusion: Efficient ESG Reporting Directly from Your SAP System

The Proof of Concept shows that ESG reporting does not have to rely on external tools and manual workarounds. The necessary data is already available in ERP and can be systematically used for reporting.

An ERP-centered approach makes it possible to derive ESG metrics directly from operational document data and provide them consistently in the SAP Sustainability Control Tower. If you see similar challenges in your ESG reporting, such as manual workarounds, high reconciliation effort, or a lack of traceability, an ERP-centered approach is worthwhile. Arrange a non-binding discussion and feel free to contact us.