Carbon footprint ~ How will this effect you, your company and your customer

[Former Member]

How ever you look at the question your the answer lies in why the issue exists in the first place! Keep this in mind when you read on.

Living in a society today that is aware but not enforcing you to take part shows either a poor appreciation of the real problem or an attitude that will wait for the policing of a new governance framework that will charge or levy the consumer, retailer and supplychain for their true carbon footprint.

Whether this is by consumer of supplier of goods the size of the issue is one many are now faced with on a daily basis.

Having seen SAP solutions evolve, this one lies at the heart of everything a company stands for. When you see the niche solutions evolve in this space you realise that unless the solution is industrialised and contained to a central solution like an ERP platform then the answer is ineffectual and will in itself not be sustained itself. But, is the market ready for the absolute answer, is it a great market stunt to raise brand awareness.

I would be interested to here suggestions on what this means to the SAP customer base and in deed who (if not SAP) is the first to solve this CSR issue.

I have given much thought and see that the Insight needed is required from a GRC application, yet the sustainability and policing of the model is one that only world class companies will resolve.

[Former Member]

When I read the question several times to gain a clear understanding, I finally got riveted to the statement, that is, u201CUnless the solution is industrialized and contained to a central solution like an ERP platform then the answer is ineffectual.u201D

This appears to be a practical guideline.

If I may say so that an ERP System accommodates (dates!) market demand and indicates the resources required in the company to enable supply accordingly; be the resource be material, human, information, infrastructure, training and any other, in all likelihood such accommodation would be based on dated, documented and approved source of information.

Such document may be

- a confirmed order

- a reliable market survey

- self projection for growth

- aiming existing capacity (asset) utilization

- others.

It appeared to me that in the similar manner the demand of environment may be accommodated in the ERP to address CFP issue and any other environmental issue.

The source for such incorporation may be

- regulatory requirements

- company policy with respect to environmental issues

As we know, the regulations may be with respect to air, water, land, resources, flora, fauna and other global issues.

Carbon Foot Print is about emissions and their potential for pollution of air.

Hence for instance, if we consider requirements for air, as per regulations, the Air Consent may be the source document which would have specified u2018limitsu2019 for the elements, the emission is composed of.

If for example, SPM is one of the elements, that is Suspended Particulate Matter, and it has to be below certain limit in running condition of a plant, then it would require a process for

- monitoring

- measuring and

- trigger for action when exceeding the limit.

If for the same element an asset has to be installed to ensure compliance, it may have to be shown as a new resource required, and its installation as a new project.

Such operation control oriented action or project oriented action may also be a need against compliance requirements with respect to water, energy conservation, material conservation, safe guarding flora, safe guarding fauna from extinction, eliminating usage of ODS, CFC, CTC, asbestos and other such substances.

These actions may be required to be initiated for the significant aspects only.

An attempt was made to describe a method for identification of significant aspects and evaluation of the significance of their impact in the following blog. It may be useful for a reference.

If a structured Management System exists for environment management, such evaluation would be part of it and it would be carried out regularly.

The Environmental Aspects Register updated regularly within the company would serve as a credible source of information for accommodating into an ERP.

Such incorporation into the ERP would cover other points mentioned in the question namely, sustainability, policing(!), reporting against GRI indicators also.

Certain other questions included there in, such as u2018Is the society ready for an absolute answer?, of course, appears requiring further thought. But tentatively, I would like to mention that it may not be called poor appreciation of the problem, but that the process consisting of

-Education for awareness

-Encouragement for relevant action

-Differentiation of the good from the better

-Punishment of the non-compliant

appears to be slow. Individuals have understanding, organizations are propagating. It is the action by companies and action by regulatory agencies that must begin movement.

At our personal level we now use coiled bulbs at home and solar water heaters. Of course these have been initiated by the regulatory agencies only and we corroborated willingly. We got incentive for such adoption. It appears to be time to increase the pace of adoption of the new way of living. We must embed in our habit and teach our children the importance, may be.

Sam Anbazhagan