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TWIX and the SAP Matrix, it’s all about 16/92 sustainability.

This SAP sustainability blog was originally written back in September 2021, I have updated it to include detail and clarity on the SAP Sustainability Control Tower and SAP Green Ledger, as both are now making the

Why does this blog matter and worth reading?

My view is that the rate of business change is accelerating, the focus for the 2025 will include holistic sustainability reporting driven by legislation dropping, in parallel to the demand for accelerated AI and data innovation across both front and back office business domains, so when Christian Klein talks about joining the dots, he is talking about the dots in the SAP matrix that includes SAPs agnostic sustainability offering.

"Reader warning this is a very quirky blog"

“Tell me what you see, Morpheus asked Neo ”! Matrix 4 is out (it was in Sept 2021)

The SAP Matrix (I'll come back to this latter)

Q. So what do you see when you look at the packet of TWIX Caramel biscuits?

Comfort food, Breakfast, an Iconic FMCG brand ?

we all apply a different optic !

My wife when asked as we walked around a supermarket in Portugal this week, said “it’s just a packet of biscuits” and rolled her eyes at me

This is what I see,

I'm cursed,

I see the SAP Matrix

A global digital target operating model optic applied to everything I observe.

Quite simply when I look at anything related to the global economy or an enterprise, service or product, what I see is a form of the Matrix.

A digital enterprise with every element of the operating model and how it functions humming away in my forward lobe, People, Process, controls, data and tech ……

(I also saw some clever FMCG brand and product up cycling, because that is not a TWIX)

So when I saw the packet of TWIX Caramel biscuits I immediately visualised the entire value cycle and enabling operating model .

The recipe (Bills of material) in SAP that makes the product, the end to end FMCG manufacturing process from production order, MRP run into fulfilment, the Order to Cash operating model from trade promotion and pipe line management, production planning, standard cost and controlling, then onto revenue recognition and AR...

and then “Boom” I had a business transformation epiphany

instead of seeing the normal operating model

I saw its meta data carbon footprint

(SAP visualising the Carbon Footprint of a Bottle of squash.)

I saw how SAP can be used to quickly quantify and base line a product / services carbon foot print, from product development through to customer use (Managing the Green Line)

I saw how easy it could be to operationally report upon the carbon baseline (Reporting the Green Line)

And most importantly I saw how quickly changes could be made to the operating model enabling the start of the transition to Zero Carbon and the circular economy

Then my wife asked, “are were going to buy the biscuits ? ”

16 / 92 The global economy has a sustainability problem that SAP is positioned to help fix

So why are SAP so well positioned to help the climate and sustainability agenda ?

“The global economy has become dependent on SAP”

75% of all global business transactions touch SAP, and figure is set to grow further as SAP glides further into the public sector

16% of all global emissions comes from SAP customers not surprising when 92%of Forbes Global 2000 companies use SAP

So if SAP can help the 92%, then we are well on the way to reducing the 16%, that’s got to be a win for all of us.

Plus there are tangible drivers and benefits to moving to the circular economy:

· 5.6X faster growth in sustainable products and brands (McKinsey)

· 76% of investors are demanding sustainability action (ASI)

· Law Makers are pushing legislation and taxation (Example EU Circular economy)

And SAP are doing just that, they are taking the lead
SAP as a company and products are often seen as the bad guys when it comes to business transformation (Agent Smith) , primarily because SAP don't clearly explain what sap is and what it takes to sustain and embed the operating model within the business (listen to the making sense of ERP Podcast to hear me discuss this in detail)

So back to the SAP Matrix and Sustainability and Climate Change

SAP has become the standard global digital operating model, and has been for 5 decades, all major industry sectors have adopted it, it connects everything and everyone…. So when the pandemic hit the global economy and supporting supply chain including all the major pharma’s just kept on rolling

More importantly all the fundamentals to migrate to, manage and report upon zero carbon sustainability already exit in the SAP matrix, its just a case of realigning the global economy to the revised operating model.

SAP get this, and has been working with the World Economic Forum and United Nations to map the move to the circular economy and standardise sustainability measurement and reporting.

SAP have already agreed with the United Nations on a Decade of action based upon a set of 17 Sustainable Development Goals SDG’s). To support this SAP are raising awareness as to how every existing SAP system with a few tweaks can enable sustainability as well as developing new products and functionality to support the transition to Zero by 2030.

So SAPs focus is to enable

· New sustainable opportunities

· Regulatory compliance and oversight

· Brand value

· Boost Operational excellence

· Natural Capital Accounting

· Resource Productivity and reuse

· Sustainability Performance management

And where SAP go everyone will follow

But we have lost 18 months due to the pandemic

What should have been SAP’s big sustainability push for 2020 became overshadowed by the Pandemic and then SAPs own need to deal with the ongoing threat from the hyperscalers as they push into SAPs core Fortune 2000 client base.

But the Pandemic has demonstrated how organisations can transform their operating models rapidly where and when the need arises (B2B to B2C).

So, with this new confidence and the skills required to deliver rapid operating model change we expect to see the focus swinging back to the Circular Economy and Zero Carbon, with organisations focusing their transformation strategies on rapid tactical change (proving Agile and accelerated SAP does exist).

A once in a lifetime Curve ball

The global transformation agenda is normally driven by the major tech companies and consultancies, every year a new theme or buzzword.

But the climate crisis has changed all of that, transformation over the next 10 years will be dominated by one thing and one thing only and that is sustainability enabled by AI and the Cloud.

But Its all going wrong

AI in the cloud is a sustainability shredder, the amount of energy required to run the cloud data centres enabling AI is truly staggering, in fact the cloud is actually making the situation worst, which coupled to the worsening geo-political situation is fuelling the migration back to on prem hosting.

This will have to be addressed quickly as the benefits of AI and the cloud simply don’t match the carbon footprint generated. This will become a major headache for CIOs as the need for green line tech compliance reporting has now landed.

So lets help you get started:

Firstly lets inject a level of pragmatism, a low risk and low cost approach to achieving your shift to Net Zero.

We can help you

· Assess your current transformation road map and look at how moving to the circular economy and zero carbon can be accommodated and prioritised.

· Define a sustainability strategy and roadmap linked to 2030.

· Define your current product and operating model carbon footprint and the areas requiring remediation. Applying a Green optic to your enterprise architecture.

· Identify gaps in your master data and changes needed to your current enterprise applications, validate use of SAP’s Enabler strategy full of rich solution addons.

· Prepare a Finance impact assessment to help CFO’s quantify the economic impact of the transition.

· Define a hybrid Green Line Analytics approach using SAP standard templates to accelerate transparency and visibility, a refinement of the supply chain control tower concept.

· Develop a Green Line transformation portfolio approach and governance model

So, SAP as an organisation has accepted its position as a global economy leader and shown very strong and clear leadership in helping its client address head on sustainability.

Let’s take a look at the SAP sustainability tooling available at January 2025.

SAP Green Ledger and SAP Sustainability Control Tower are both tools offered by SAP to support sustainability and environmental performance, but they serve different purposes within a company’s sustainability strategy. Here’s a breakdown of the differences:

SAP Green Ledger

• Purpose: SAP Green Ledger focuses on integrating environmental and financial accounting, enabling carbon accounting with the same level of rigor as financial accounting.

• Key Features:

• Provides a real-time carbon accounting system alongside financial accounting.

• Tracks emissions data (Scope 1, 2, and potentially Scope 3) at granular levels, such as by product, process, or business unit.

• Ensures transparency by embedding emissions-related KPIs directly into financial reporting systems.

• Allows organizations to make informed decisions by linking environmental impacts to financial performance.

• Use Case: Helps companies manage and reduce carbon emissions while aligning with financial goals, similar to how financial ledgers track costs and revenue.

SAP Sustainability Control Tower (SCT)

• Purpose: SAP Sustainability Control Tower is a reporting and monitoring tool that provides holistic sustainability management across various dimensions (e.g., carbon emissions, waste, water, social KPIs).

• Key Features:

• Acts as a centralized platform for collecting, analyzing, and reporting sustainability data.

• Covers multiple sustainability KPIs beyond carbon emissions, including ESG (Environmental, Social, and Governance) goals.

• Provides tools to monitor progress toward sustainability targets and regulatory compliance.

• Supports stakeholder reporting by offering customizable dashboards and reports to align with frameworks like GRI, SASB, or CSRD.

• Use Case: Ideal for businesses that need to monitor, report, and communicate progress on sustainability initiatives and ESG compliance.

Key Differences

Summary

• Use SAP Green Ledger if you want carbon accounting integrated into your financial systems for operational decision-making.

• Use SAP Sustainability Control Tower for monitoring and reporting broader sustainability metrics and ESG compliance across the enterprise.

Both tools complement each other, with Green Ledger enabling emissions data precision and SCT providing a higher-level overview of overall sustainability performance.

My view is that the rate of business change is accelerating, the focus for the next year will be sustainability reporting driven by legislation dropping, in parallel to the demand for accelerated AI and data innovation across both front and back office business domains.

If you need help shaping your Target Finance Operating Model, then contact a Dragon……

Twix and the SAP Matrix, it’s all about 16/92 sustainability