SAP JAPAN — March 5 — Matsumoto Precision Inc., a precision machine parts processing company, has adopted SAP Sustainability Footprint Management to provide information on CO2 emissions per product to its business partners.
The company, which processes pneumatic control components, automotive parts, and more from its headquarters in Fukushima Prefecture, Japan, implemented the solution in partnership with Accenture to improve the environmental and economic value of Matsumoto Precision’s products. Accenture supported the implementation of the solution and the calculation of CO2 emissions for each product.
“Green transformation is a central tenet of Matsumoto Precision’s core strategy,” said Toshitada Matsumoto, President and Representative Director of Matsumoto Precision Co. “Our aim is to realise our vision of running ‘The Sustainable Factory’, including self-sufficiency in electricity through solar power and purchase of electricity with non-fossil certificates. SAP Sustainability Footprint Management enables us to record, report, and act on CO2 emissions on a per-product basis, giving us and our partners better insight into the environmental impact of our businesses.”
Matsumoto Precision is the first company to benefit from the Connected Manufacturing Enterprise (CME) platform, a common business system created by SAP Japan and Accenture to improve the productivity of small and medium-size（SME) manufacturing. The CME platform is a cloud-based service standardising business systems for SME manufacturing companies, incorporating a regional ERP platform consisting of various templates developed by Accenture based on SAP S/4HANA®.
The company began using the CME platform in April 2021 to standardise its business processes. The use of SAP S/4HANA has improved productivity by approximately 30% and has increased the speed of management decision-making.
With the adoption of SAP Sustainability Footprint Management, the company has now started providing information on CO2 emissions per product to its business partners.
“Environmental insight isn’t just important for businesses, but across every organisation in the value chain aiming to reduce CO2 emissions,” said Hirofumi Suzuki, President and Managing Director of SAP Japan. “Matsumoto Precision add value and differentiate what they sell by promptly providing information on CO2 emissions at product level. SAP is proud to support Matsumoto Precision on its green transformation journey, ultimately improving both the environment and society.”
Although the company had been working to visualise CO2 emissions at the plant level it had not been able to do so on a product-by-product basis. SAP Sustainability Footprint Management calculates CO2 emissions for every product based on the individual manufacturing performance information already available in SAP S/4HANA.
“To achieve both environmental and economic values, a Digital transformation platform is indispensable. This project was realised in a short period of time through the use of SAP S/4HANA, which helped to standardize the operations from production to procurement to sales,” continued Toshitada Matsumoto. “We look forward to working with the entire value chain in Japan, including small, medium and large enterprises, to enhance the competitiveness of Japan as a whole.”
“By visualising carbon footprints, companies and consumers can choose low-carbon products and services, and contribute to the realisation of a decarbonised society,” said Joichi Ebihara, Sustainability Group Japan Lead at Accenture Japan. “To achieve this ambition, collaboration between companies and across the enterprise is a must. We hope our collaboration with SAP can serve as example to others in region and around the world.”
Amy Cravens, Research Manager, GRC and ESG Management and Reporting Technologies at IDC, noted, “Organisations are increasingly seeking to derive and measure business value from their sustainability initiatives and product-based carbon foot printing is an important tool in achieving that goal. A recent IDC study (August 2023) found that one-third of respondents identified carbon emissions monitoring software as one of the most efficient tools in enabling an organisation’s business objectives.”
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