The now completed research project “Climate Solution for Industries” (CS4I), with the participation of Fraunhofer IPA, uses a digital solution already during investment decision-making. This allows it to be present along the entire value chain.
In order to become climate-neutral by 2045, until 2030 Germany must reduce its carbon emissions by 65 percent (compared to 1990). With a share of around 15 percent of emissions, the industrial sector plays a significant role here. Production itself accounts for about 30 percent, while upstream and downstream processes account for more than 70 percent in many industries and business models.
In the project “Climate Solution for Industries” (CS4I), Fraunhofer IPA, together with its partners Intense AG, Objective Partner AG, Digital Renewables, Gerolsteiner Brunnen GmbH & Co. KG, Döhler GmbH and SAP SE, studied how to profitably reduce carbon emissions.
Looking at carbon emissions across company boundaries
To achieve this goal, the project partners considered not only the production itself, but the entire value chain. CS4I therefore addressed various aspects, from the procurement of raw material to investment decisions and delivery, so that companies can take sustainability and cost-effectiveness into account at the same time.
Industry challenges, ideas and possible solutions were discussed in workshops. This resulted in prototype digital applications that can be used via SAP’s cloud infrastructure. Among other things, they include a scenario analysis developed by Fraunhofer IPA using a Monte Carlo simulation. This procedure investigates a large number of scenarios to determine the probability of different outcomes in order to quantify uncertainties in complex problems.
Digital images as decision-making aids
Instead of exchanging written quotations, companies can use one of the developed apps to request a digital image of the machines and plants. Then, all that needs to be done is to set energy prices in various scenarios. The app then displays which plant or machine is best suited for the company in the individual situation. In addition, the app can display the transport costs influenced by fluctuating energy prices.
The scenario analysis helps to make transport as economical and sustainable as possible. Of central importance is also the so-called “true carbon footprint”, which is used to analyse which emissions a specific product batch causes beyond the company’s borders.
CO2 consumption made transparent
In the future, all companies will have to be transparent about the carbon emissions they produce. This is the only way they can understand and reduce environmental impacts and comply with regulatory requirements such as the German Supply Chain Act. This transparency will also help identify potential financial risks and opportunities and strengthen the trust of customers and investors. In becoming transparent, companies fulfil their social responsibility to combat climate change. Today, every company can already decide which machines to invest in and how to configure transport in the most sustainable and economical way possible.
The solution developed by the CS4I project results in more transparency with regard to sustainability. It offers companies optimal, individually tailored decision-making.
