The Function of SAP Sustainability Data Exchange (SDX): A Platform for Sharing Sustainability Data

Reducing internal emissions is no longer enough. Today, companies are also required to track the carbon footprint of their entire supply chain. The biggest challenge lies in Scope 3 emissions emissions originating from the supply chain and the use of products after they leave the factory. This is the most difficult to map as it involves many parties.

But, there's no need to worry, as SAP Sustainability Data Exchange is here to meet this need. This cloud-based platform enables companies to share sustainability data securely, in a standardized, and easily verifiable way. How does this platform work to help businesses accelerate their net-zero targets? Find out the answer here!

What Is SAP Sustainability Data Exchange (SDX)?

SAP Sustainability Data Exchange (SDX) is a cloud-based platform that allows companies to securely share, manage, and verify sustainability data with business partners. Its service model is SaaS (Software as a Service), meaning companies do not need to build a system from scratch but can simply subscribe and immediately use the available features.

This platform is designed so that all parties in the supply chain have a single source of truth regarding carbon footprints, energy usage, and emissions at various levels. This way, the company's sustainability reports are not only accurate but also accountable.

Key Functions of SAP SDX for Companies

As a trusted platform for sharing sustainability data, SAP SDX offers several important functions that make it relevant for businesses across industries. Here are some of them:

1. Helping Track Scope 3 Emissions Many companies already measure internal emissions (Scope 1) and purchased energy (Scope 2). However, did you know that the largest contributor is actually Scope 3 indirect emissions from the supply chain, such as raw material production or product distribution? In this regard, SDX simplifies Scope 3 tracking because suppliers can directly share actual data, making sustainability reports more precise.

2. Providing Data Transparency For multinational companies, transparency is crucial yet difficult to achieve. SDX enables shared data to be standardized according to global regulations, making it easy to use for reports to international institutions and regulators.

3. Reducing Administrative Burden Instead of collecting data via email and spreadsheets, SDX offers an efficient digital workflow. Data is collected automatically, integrated, and ready to be processed for analysis.

4. Fostering Supply Chain Collaboration With SDX, companies and suppliers share a common platform. This opens up opportunities for collaboration in decarbonization programs, such as finding alternative, more environmentally friendly materials.

Superior Features of SAP SDX

SAP designed SDX with several core features that make it superior to conventional methods, including:

1. Standardized Data Exchange SDX supports data exchange based on PACT (Partnership for Carbon Transparency), ensuring data formats are consistent and can be used across industries.

2. Data Control & Permissions Companies have full control over the data shared, including choosing what information business partners can see.

3. Integration with SAP Business Network SDX is directly connected to the SAP Business Network, expanding the reach of the global supply chain ecosystem.

4. User-Friendly Dashboard Visual analytics features make it easy for companies to read emissions data, identify patterns, and make strategic decisions.

5. Scalability & Automation SDX is designed to handle data from thousands of suppliers simultaneously, with process automation to maintain efficiency.

Strategic Benefits of SAP SDX for Your Business

The benefits of SAP Sustainability Data Exchange do not stop at regulatory compliance or annual report preparation. More than that, your company can also achieve strategic value, such as:

1. Acceleration Towards Net-Zero Targets Many companies have ambitious targets but struggle to execute them because Scope 3 data is unclear. Here, SDX helps bridge the gap by providing a measurable emissions map, allowing decarbonization strategies to be formulated more effectively and their progress to be monitored continuously.

2. Increased Investor Confidence In an era where Environmental, Social, and Governance (ESG) is a primary indicator for investment decisions, companies that can demonstrate transparent emissions data will have greater value in the eyes of investors. Investors tend to choose companies with a long-term commitment to sustainability, making access to funding more competitive.

3. Safeguarding Company Reputation Accusations of greenwashing can damage a company's image. With SDX, reports based on real data from the supply chain prove that sustainability claims are not just labels but the result of verifiable transparency. This fosters consumer loyalty, especially among younger generations who are increasingly critical of environmental issues.

4. Cost Efficiency Detailed data opens up analytical opportunities to find points of wasteful energy, material, or logistical spending. This efficiency not only reduces operational burdens but also provides a competitive advantage in the global market.

5. Fostering Strategic Partnerships With the same platform, companies and suppliers can jointly seek innovations, such as using more environmentally friendly alternative raw materials or new, more energy-efficient production technologies. This collaboration strengthens the entire business ecosystem.

Achieve Sustainability with SAP SDX and Soltius

If you are considering implementing SAP SDX for your company but are unsure where to start and have not found the right partner, Soltius is ready to help.

As the only SAP Platinum Partner in Indonesia, Soltius understands the dynamics and diverse needs of businesses across various industries.

We are ready to support your company's digital transformation journey, from the planning stage to team training, ensuring your team is fully prepared to operate the implemented platform.

Consult with our team, and let's achieve sustainability with the implementation of SAP Sustainability Data Exchange together with Soltius!