As the modern enterprise world increasingly prioritizes transparency across global supply chains, businesses seek innovative solutions to meet these demands and ensure a sustainable future.
SAP Green Token emerges as a groundbreaking application designed to enhance supply chain transparency and sustainability by leveraging blockchain technology to track and verify the provenance and environmental impact of raw materials.
This article explores the features and benefits of SAP Green Token, highlighting how it helps organizations ensure ethical sourcing, reduce environmental footprint, and leverage verifiable data to build trust with consumers.
What is SAP Green Token?
SAP Green Token is an intelligent application that uses a unique application of digital twin tokens on a blockchain to support material traceability and transparency and empowers users to account for differentiated and comingled material streams across modern enterprise landscapes.
Here are a few key industries and sectors Green Token impacts:
- Soya Bean and Palm Oil
- Cotton
- Coffee
- Green Hydrogen
- Copper Concentrate
- Cobalt
- Iron Ore
- Plastic Recycling
- Gold
- Conflict Materials
- Renewable Energy
- And more!
By providing capabilities for tokenization, segregation, mass balancing, and blockchain-based chains of custody, the Green Token solution makes it easier to keep track of the origin and sustainability of critical products and keeps the ERP core clean and concise.
Here are a few key capabilities of SAP’s Green Token application:
- Support cloud deployment across complex enterprise landscapes
- Utilize pre-built APIs and connectors for automation and integration with other ERP systems
- Create and maintain an accurate, auditable record for complete material traceability
- Maintain compliance with standards, such as ISCC, RSPO, and EUDR
- View and monitor multiple material attributes in a single system
Understanding the Scope of the Green Token Solution
SAP Green Token takes two different approaches to sustainability reporting and management:
Standalone internal solution
Green Token can be used as a standalone internal solution, enabling customers to manage mass balance accounting and certification compliance processes and support accurate tracking for products, components, and raw materials.
With this approach, the inbound processing/conversion and outbound data flow are collected through CSV file upload or integration with the ERP system, allowing companies to represent Tier-1 supply chain partners without requiring them to be active participants on the Green Token platform.
End-to-end traceability solution
By leveraging Green Token as an end-to-end traceability and transparency solution for sustainability data, companies can effectively onboard supply chain partners to their existing network, validate and audit critical sustainability claims, and gain visibility into product volume origins.
This approach facilitates connections between supply chain partners in Green Token, allowing users to manage and optimize inbound and outbound data flows through the existing connection. Partners in other areas of the network have access to existing practices until they are onboarded onto the SAP Green Token platform.
How Does SAP Green Token Work?
SAP GreenToken works by utilizing blockchain technology to create a transparent and immutable record of the journey and environmental impact of circular materials throughout the supply chain. The process begins with the tokenization of raw materials, where each batch of material is assigned a unique digital token that carries information about its origin, production methods, and environmental credentials.
As these materials move through raw material supply chains, including circular plastics in the chemical industry, the blockchain records each transaction and transformation, ensuring that every step is traceable and verifiable. Real-time tracking and data integration capabilities enable businesses to authenticate the sustainability claims of their consumer products, ensuring compliance with environmental regulations and meeting consumer demand for ethical and eco-friendly products.
By providing a detailed and tamper-proof ledger of the supply chain, SAP Green Token offers companies the ability to produce products with enhanced transparency, reduce the risk of fraud, and promote sustainable practices across their operations.
Key Features for Raw Material Supply Chains
Declaration management
Leverage a single, unified solution to manage declarations for various schemes and scopes.
On-demand reporting and audits
Access on-demand reporting features to create accurate, timely reports and ensure compliance with evolving renewable energy and sustainability standards and requirements over time.
Various accounting methods
Utilize segregated or mass-balance accounting methods to set up, manage, and optimize chain-of-custody accounting for the entire organization on one platform.
Benefits for SAP Customers
Attribute transparency and traceability
- End-to-end lifecycle management for materials credits
- Comprehensive visibility into material volumes on multiple levels (i.e., plant, material, location)
- Functionality to collect and manage multiple material attributes (i.e., deforestation, PCR/PIR sources, GHG emissions)
Certification management
- Automatic generation, collection, transfer, and management of declarations
- Core declaration management functionality on multiple levels (i.e., plant, material, location)
- Pre-built, configuration-based declaration templates
Mass balance accounting
- Attribute-based material allocation and filtering capabilities
- Accurate reconciliation of inbound credits
- Allocation of outbound credits to products and credit transfer processes
- Credit reservation functionality to align with Available-to-Promise guidelines
- Configurable conversions and allocations of credits to materials and products
Data privacy
- Comprehensive immutability records to prevent fraud and reduce risk
- Customized visibility controls to determine which information is accessible by which partners
- Claims tokenization functionality to prevent double-spending for materials and products
Reduced supply chain complexity
- Multi-level configuration of conversion and yield (i.e, plant, material, location)
- Automation and management of parameter-driven business processes
- Multi-site management and intra-company transfer for materials data
Streamlined onboarding and accessibility
- SaaS capabilities through Internet browser
- Bulk CSV files and open APIs to improve scalability for all users
- Standalone functionality for mass balance accounting and Tier-1 supply chain operations
- Advanced tools for partner onboarding and end-to-end supply chain transparency
How Can We Help?
Whether you need help implementing new SAP solutions for the first time, additional support navigating complex data migration tasks between SAP and non-SAP software, or just an extra hand getting started with SAP’s industry-specific applications, Surety Systems is here to help.
Our senior-level, US-based SAP consultants have the knowledge, skills, and experience to understand your project needs, create effective action plans, and prepare your internal teams for future success.
Contact Us
For more information about our SAP consulting services or to get started on a project with our team of expert consultants, contact us today.
