Saturday, May 15, 2010

SAP Environmental Compliance for meeting EPA’s new regulation on GHG

Dear Friends,

On May 13th EPA issued final rule on GHG Emissions, which states that when an Industry (high emitters) wants expand its operations it needs to demonstrate that it will be using the Best Available Control Technology (BACT). At first glance it may look that it majorly impacts the financial terms of the Industry in acquiring control equipment and less to do with the Compliance and Regulatory needs.

For meeting these requirements, companies needs to use permit management, task management, document management, advanced Reporting and at the same time use sophisticated GHG Calculations and based on their GHG Calculations would like to report key environmental KPIs– SAP Modules like SAP Environmental Compliance and SAP Carbon Impact will be huge help for companies meeting this requirement.

Some of the features of SAP EHS Environmental Compliance – Emission Management / Environmental Compliance / GHG Management will be of huge benefit, like Calculation of GHG emissions, Permit Management, Modeling for engineering changes, Reporting component and finally its ability to integrate with SAP R/3 components. Significant among these are ability of SAP Environmental Compliance to communicate with web services for emission data – especially from Continuous Monitoring Systems (CEMS), ability to store documentation and advanced reporting capabilities like BI/ BO.
You can access the final legislative document from



  1. Hi Jayakumar,
    It's indeed the next big step forward by EPA in not only ensuring the implementation of Mandatory Reporting Rule (MRR) , but also
    ensuring the Best Available Control Technology (BACT) to be adopted by high emitters; thereby closing the loop of environmental regulation. Effective December 29, 2009, large sources and suppliers in the United States will begin collecting data on January 1, 2010 and report GHG emissions to EPA by March 31, 2011.
    The SAP's sustainability solution's range very aptly covers the end to end scenarios of EPA's such new regulations accompanied by Clean Air Act thereby again proving the solution suite robustness.
    1. Complying for Title V by Permit/Exception management
    2. Accumulating & reporting facility specific emissions on real-time basis through integration with SAP xMII
    3. Evaluating carbon cap & trade through SAP Carbon Impact.
    4. Enterprise's internal high end reporting & analytics (KPI monitoring) through SAP BI/BW, BO, Xcelsius,& Crystal reports.
    5. Real time data analysis form SAP EC for Continuous Monitoring Systems (CEMS).

    Now accurate quantification of GHG emissions becomes critical thereby necessitating for third party verification.
    Would this verification requirement pave the way for SaaS approach, may be partially though?


  2. Hello Pavan,

    Verification - which is a 3rd party validation and when it comes to EPA requirement - it is by certified Auditors. Infact external Auditing - is always a on Demand business model.

    The SaaS opportunity in the software front are those like i) Data Analytics (SAP CI) ii) Permit Management (in addition to Title V, Carbon Limits) and iii) Advanced Reporting capabilities.

  3. Hi Jayakumar

    Thanks for sharing such news. Just a quick query, never heard about SAP Carbon Impact before. Can you write more on SAP Carbon Impact in future.



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