The cbs.zero framework for a carbon-neutral industry

NEXT ONE Sustainability
The cbs.zero framework for a carbon-neutral industry

Sustainability and decarbonization are the orderof the day - and a significant success factor. Thecbs.zero framework offers answers on how companies can successfully shape the transition to asustainable and climate-neutral organization.
It is difficult to deny the need to reduce greenhouse gas
emissions and accelerate the transition to a low-carbon
economy - the clock is ticking. National governments,
global NGOs, businesses and civil society are working together to find appropriate responses to climatechange. The goal: to limit global warming to 1.5 degrees
by 2050. This was agreed by 195 countries in the Paris Climate Agreement. Only comprehensive climate
neutrality, a “net zero”, can achieve this.

The cbs.zero Framework

In the industry, the implementation of decarbonization
varies significantly depending on the sector and company. The lack of transparency and uncertainty regarding
the political and legal framework are currently serious
obstacles to the rapid implementation of sustainableapproaches. Identifying sensible, organizationally andfinancially feasible steps also presents companies
with challenges.

All players are still at the beginning of this journey.
And yet: decarbonization must be tackled early and ina structured manner. With cbs.zero, cbs has developed
a framework that takes sustainability challenges into
account for both business decisions and businessprocesses. It enables our customers to integratesustainability goals into their strategies and operational
processes.
First, we establish a holistic view of the current situationand possible future scenarios. Our framework uses theterms Record, Report, Improve, and Innovate.

RecordReportcbs Corporate Business Solutions | www.cbs-consulting.com

ImproveInnovate

The two dimensions Record and Report deal with thecollection of data and the seamless provision of reports
to demonstrate the current environmental and social
footprint. Data on CO₂ emissions is commonly collectedand reported according to the Greenhouse Gas Protocol
with a categorization of “scopes”:•

Scope 1 (Direct Emissions): This includes direct
greenhouse gas emissions that occur within thecontrol or ownership of a company. Examples
include emissions from company-owned vehicles,
heating systems or industrial processes.

•Scope 2 (energy-related emissions): These areindirect emissions caused by the generation ofpurchased energy. This primarily includes emissions
caused by electricity generation in power plants that
supply energy to the company.

•Scope 3 (other indirect emissions): These aregreenhouse gas emissions that are outside thedirect control of the company. These can be emissions from upstream and downstream supply chains,
business travel, product use, waste disposal andother activities.

Data collection is a multidisciplinary endeavor thatplaces high demands on data architectures, as many
heterogeneous data sources need to be connected.
SAP plays an important role in sustainability software
solutions thanks to its seamless ERP system integrationand direct access to processes and data. A newgeneration of cloud-based products, such as the SAP
Sustainability Control Tower, can significantly reducethe burden on companies in the future in terms ofprecise data collection and the management ofsustainability activities and support them in complying with reporting obligations in a legally compliant andefficient manner.

cbs Corporate Business Solutions | www.cbs-consulting.comImprove and Innovate
With this solid foundation, levers can be identified to effectively reduce CO₂ emissions. Companies will inevitably
have to fundamentally rethink their value chains or even their entire business model to remain successful. Sustainable
management is not detached but goes hand in hand with corporate strategy. Current and future challenges can nolonger be solved with the tools and methods of the past. In particular, the will to innovate and transform is crucial.

Integrated Reporting and Steering

Less Emissions

Less Waste

Less Inequality

Sustainable and Resilient Supply Chain

Scope 1 emissions, which are under the direct controlof the company, can be reduced in the company’s own
manufacturing operations. For example, the cbs subsidiary Trebing + Himstedt is working with customers to
introduce end-to-end, digitalized production processes.
This is less about simply saving paper: advantages suchas optimized and context-situated worker guidance anddirect, error-free data feedback create efficiency andprevent the waste of valuable resources.

To reduce CO₂ emissions along the scopes, companies
will fundamentally rethink their products and services
and incorporate sustainability into their entire lifecycle- from development, production, use and finally disposal
or complete recycling. In addition, the analog will bereplaced by the digital to save valuable resources.
The media industry with streaming and eBooks is awell-known example of this. In a similar way, businessmodels can be digitized in industry.

Scope 2 emissions can in turn be reduced by purchasing electricity from renewable energy sources. A
significant part of the carbon footprint is attributable tothe incoming supply chain, i.e.

The challenge of decarbonization is not trivial:
long-term transformation, continuous improvement,
innovative solutions, new technologies and bestpractices need to be incorporated into the long-term
development of an organization from a perspectiveof sustainability. But we owe it to ourselves and future generations to tackle these issues and make ourapproach and goals transparent.

Scope 3 Before a component arrives and can be used,
CO₂ is generated from the extraction of raw materials
to processing and transportation. These emissions are
not under the direct control of the company. This will
primarily influence procurement strategies. The pricethat the environment “pays” will then also be decisive.
Conversely, this also means that sustainable products
and goods will become more attractive, and companies
will be able to secure decisive competitive advantages.

cbs Corporate Business Solutions | www.cbs-consulting.com

cbs Corporate Business Solutions Unternehmensberatung GmbH
The Materna Group Management Consultancy
Rudolf-Diesel-Str. 9, 69115 Heidelberg, Germany
T +49 6221 3304-0
contact@cbs-consulting.com
www.cbs-consulting.com

Autor:Dr. Reinhard Ematinger | Senior Solution Manager