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D-Carb

Sustainable Supply Chain Planning powered by SAP IBP

D-Carb enriches your Supply Chain Planning process with carbon footprint data, in order to support business decisions on your journey to decarbonisation. It allows you to walk the talk by providing the missing link between your climate strategy and your day-to-day planning activities.

The challenge

Recognizing both the severity of climate risks and the opportunities of a low-carbon future, more and more companies have made “net-zero” commitments, i.e. aiming at becoming carbon neutral in a specified timeframe (often by 2050) in order to be compatible with the Paris agreement and the “1.5°C pathway”.

However, when it comes to operationalizing these commitments, executives and supply chain leaders lack visibility on how to translate corporate climate strategies into concrete planning decisions. This is an issue since planning drives execution activities such as procurement, production, transporation or warehousing, and these activities are the source of most greenhouse gas (GHG) emissions in value chains.

Even if they recognize and are willing to play an active role in decarbonisation, planners may face the challenge of decoupling financial and/or operational targets from GHG emissions reduction targets, without having the necessary tools and metrics. You can change this.

The solution

 

D-Carb leverages the power of SAP Integrated Business Planning (IBP) software in combination with GHG emissions data in order to bring the “carbon dimension” into supply chain plans. Concretely, it integrates both indirect and direct product CO2e[1] emissions, such as those from purchased materials and energy, production activities, transportation, etc. These emissions in turn allow assessing an overall product carbon footprint along the value chain, depending on your company’s focus and defined scope.

In the context of Sales & Operations Planning (S&OP), D-Carb allows planners not only to take decisions based on demand, supply and financial drivers, but also on CO2e emissions. The output plan becomes a feasible, profitable and sustainable S&OP plan, which will flow down to execution, ultimately making operations more future proof.

The flexibility and scalability of SAP IBP allows planners to create alternative scenarios on the spot and compare them against climate strategy targets so that they can choose the most suitable ones.

The flexibility and scalability of SAP IBP allows planners to create alternative scenarios on the spot and compare them against climate strategy targets so that they can choose the most suitable ones.

Business benefits

By making carbon emissions visible, D-Carb gives you the right tools and metrics to make your value chain sustainable and future proof.

Being able to assess your mid- to long-term carbon emissions allows you to take the necessary actions to ensure you meet your climate strategy pledges

Identifying carbon emissions reductions will uncover savings potential (e.g. raw materials, energy, packaging, transportation)

Having your future carbon emissions under control will allow you to reduce climate risks (both physical and financial)

The concerns of your customers, employees or investors are not just a trend; they are key to your survival as a company

Further outlook

Today carbon emissions may still be considered an “externality”. By internalising the cost of carbon emissions and using it as an input to the IBP supply optimizer algorithm, you can create supply chain plans that are truly cost-optimal on the long-term

Integrating CO2e emissions into supply chain plans is a first step towards seriously tackling the climate urgency. However, depending on material topics within your organizational and operational scopes, D-Carb can also integrate further environmental factors such as water, energy or land usage for instance, in order to get a more holistic picture of your environmental sustainability.