SAP Environmental Compliance 3.0 was historically used to manage the emission and environmental compliance (EC) requirements. However SAP recently released Environmental Management (EM) module as part of EHS management within ECC – Component Extensions and also as part of S4HANA releases. I happened to work very closely with Environmental Compliance 2.0 / 3.0 and have previously set up proof of concept system for Environmental Management as well.

In this blog I would like to give an overview of the functionalities of EM and how the features of EC can be managed using the latest EM module and in my upcoming blog I would like to detail out the business processes and system implementation. The information takes into consideration latest release of S4HANA 1909 for Environmental Management and Environmental Compliance 3.0.

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Before I can give an overview of differences, I would like to cover basics of Environmental Compliance. Emission or environmental compliance, it used to meet the permit (Such Title V) and compliance management in any organization. Different companies uses different tools for managing such requirements and create necessary master data, compliance data, carry out compliance activities, manage exceptions, and create necessary reports. .

To begin with compliance, necessary Master data is needed to be prepared within any organization. The fundamental master data which is used for such purpose include Locations or Facility Structure or hierarchy which is a central master data object to represent the structure where it exists both spatially and functionally within the organization. Once facility structure is chalked out different physical and chemical master data needed to be created, which are nothing but substance or group of substances, or in case of physical data like temperature, pressure. Finally the master data also consists of sampling methods which actually details out the actual sampling method which is used for collection of samples for managing environmental management.

Once master data is made available, necessary compliance data is taken from the regulatory documentation which details out the requirements, and permits issued by various authorities. For meeting this one needs to create requirements and necessary equations to calculate the emissions. Those equations can be company specific or can be derived from published literature or permit documentations. The other data which is used include the permit information which is obtained form Consent for Operation (CoE / CFE) documentations or environmental thresholds. Regulatory lists are also used for identifying the reference information, which usually extracted from regulations.

In order to carry out day today compliance management, one needed to create and organize all compliance activities, right from data collection, sampling and emission calculations. During the data collection, careful planning of all the chemical and physical data which needed to be collected, the duration for which it needed to be collected and the reported unit of measurement is needed. While data collection is done one needs to manage the sampling activity, which involves the mechanism of actual sample collection procedures. Once the sampling and emission calculations are applied calculation of the emission data is done. This emission data can be managed by aggregating based on the location or facility structure which has been  identified as part of master data objects structure for aggregation / reporting purposes. These emissions are required to be compared with permits and limits to identify if they are within the limits or exceeding.

Once the checks are carried out, if it results in exceedence of values from the standards or limits proposed by regulatory or permits, exception records are created which at times can be blank exception or exception based on a specific value. Once an deviation or exception is noted detailed investigations are needed to analyze the reason for such deviations. Such investigations can be similar to incident investigations known like root cause investigation or lesson learned activities. Suggesting Corrective actions like creating necessary tasks which required to be managed and reporting the deviations to regulatory agencies using specific formats and guidelines is also part of exception management.

During the whole exercise one needs to carryout tasks like importing the data into the system, exporting the information out of the system by linking with Excels or automatic data collection using data historians and making reports via excel exports or other formats as per requirement and submit to internal and external agencies.

Comparison between SAP EC and SAP EM:

SAP Environmental Compliance (EC) initially came as xapps and later released as a Netweaver Portal based application to manage Air Emissions, Wastewater discharges, permit and compliances, waste management and even sometimes to manage Energy / Resource management. Whereas EM is used Compliance and Emission Management for both air and wastewater discharges, it also covers process deviations management by integration into Incident Management. Now that you undrestood the context lets dsicuss the topic of differences between EM and EC.

Dashboard which shows all the tasks and their completion status, though the status needs to be manually maintained. It is used for non compliance and tracking purposes. It can be used to trigger manual exceptions and also user substitution in case task responsible is not available.

In the latest EM, similar functionalities are provided by the apps namely Task Explorer screen which shows all the tasks centrally. This apps can be used to view the progress of task, access detailed information, processing of task and notifying the task processor about pending task. For triggering deviations Create Deviation apps is used along with other apps like Manage deviations and Edit Deviation, which we discuss later.

Facility builder is used to build the facility structure and assigning responsible persons. It is created hierarchically also as a reporting hierarchy or for scenario creation and provides facility overview information on consumption, emission and measurement information.

The apps like Location Management is used to create a complete structure of the locations for which emission / compliance needed to be managed.it links the role of the responsible personnel for managing the emissions. It also has feature to integrate emission data via toggle visibility of environmental details in locations.

Permit manager is used to manage the permit information like requirement and limits, Tasks, citations and other information. In each of such information data like permit hierarchy, permit, requirement set, requirement, folder and citation are added. Requirements consist of limits, facilities assigned, task and documents. .

In case of EM, Manage Compliance requirement apps is used to manage the functionality, which along with Create regulation, create permit, create policy and edit compliance requirement are used to centrally manage the compliance information / requirements. These tiles can be used to create necessary data and also provide an option to search compliance requirements, viewing the paragraphs and can navigate to compliance requirement data to view the further information.

Task manager is used for task generation like recurring or event driven and associated email notifications. It is used for quantitative and qualitative entry of tasks, provide form based checks for inspections. Tasks consists of parent tasks which activate subtasks which can be scheduled to occur periodically like daily, weekly, monthly or annually.

In case of EM, Action ENV Management (WS00800254) is available, using which an action can be added to a compliance scenario. An action process can be explicitly be started wherein the system uses this workflow to communicate tasks to the responsible implementer and approver, if necessary. The action process ends once the assigned work is complete and approved. Task Explorer is used to manage the task like viewing the progress of the task, processing the task by approving. Task definitions are available in the workflow definitions and are part of process based definitions configuration and notifying task owner about pending task

Exception Log is actually used to track the non compliance and deviation information and editing exceptions, it is a traffic light status. It can be created via automatically when the task is overdue or can be raised directly on the dashboards. .

In case of EM, as mentioned above, Manage Exceptions is used which shows search options to browse the exceptions, creating and editing new exceptions. Where as create exceptions are used to cerate blank exceptions. Data issues, Exceptions and Exceedence also shows the information about the exceptions. Which can be used approve, replace or invalidate records, export data as excels etc.

Environmental Compliance also consists of emission accounting which is used to capture carbon credits manually like a spreadsheet. This is used for information purposes only and such information is not integrated into any other functionality.

With EM, SAP offers content from multiple regulatory bodies like EPA, Australia. Title 40 content covering Greenhouse Gas Reporting are delivered which consists of equations and regulatory lists. Subparts like Petroleum and Natural Gas Systems, Injection of Carbon dioxide, Geological sequestration and others are available. Similarly AP-42 emission factors information and Australian Greenhouse Gas Account are available with version S/4HANA 1909. Numerous Listed substances are available which contain said emission factors which can used for calculation of GHG emissions.

For creating the materials – material manager is used. It can be used to create different type of substances, assigning emission factors etc. These are linked to parameters to calculate emissions.

In case of Emission Management either raw materials or products can be created to manage the similar functionality. These consists of single or multiple specifications and also vendor information. Chemicals are created into either mixtures or substance categories and revisions can also be maintained.

The EC system has in built in integration capabilities with SAP EHS, SAP MII and OSIsoft adapter for connecting data historian data, and triggering notifications to EAM. It has built in administration and customization options where List of Values are maintained, BW integration is done, data historian tags are monitored and data is imported / exported from the system.

For similar integration capabilities, SAP EM, is closely integrated with other modules like SAP EHS Substance database for Listed Substances database, process definitions, Linkages, workflows, central task management, incident management modules. EM includes Automatic Data Collection, which is used for automatic data collection purposes. Standard system delivers options to setting up automatic import of environmentally relevant data into the system. An import RFC interface and enhancement spot are available. The RFC service enables a call to middleware SAP MII and through it to the system records and processed and consumed in the amounts. Details about the external ids can be assigned under compliance scenario when you create sampling duration of 1 hour or can manually choose external source

There is an option to import data by excel and also automatic import by enhancing the BAdI which enables import of data from spreadsheet files. Besides spreadsheets format, import from CSV, xml can also carried out by enhancing the BAdI. Parsing of compliance requirements is also possible in the EM.

Besides these capabilities the EM, has specific apps like Data Issue management – Missing data for displaying the environmental data by location, viewing the issue categories and accessing the detail information. In EC such reports are generated by writing queries and reports. However drill down reporting for each issue is something which is very few reports available. Though there used to be form based reports available for many data analysis requests. Adobe document server with XSLT and pdf generator is a requirement for form based reports creation.

Similarly data explorer is used in Environmental Management to visualize the data based on location. Which can be comparable with adhoc reports categories used queries. Another app which is available include the monitor of data which is used to review the environmental data records, validating the data, importing the data from external spreadsheets and export data records to file based reports.  Various export files can be generated using SAP EM by means of BAdI activation steps. Other comparable apps in EM, include the sampling method for creating sampling methods, browse recently opened sampling methods, whereas in case of Environmental Compliance similar activities is carried out by Task Management.

Besides these functionalities both the systems rely upon background jobs for task monitoring like alert detection, automatic report generation, calculation scheduler, checklist tasks, exception generator, limit checks and Task scheduler for EAM objects. In EM, there are process objects and event linkages coupled with workflows triggers tasks and real time task lists etc. Besides those integration there are various jobs available like measurement checks, Jobs for automatic calculation, non periodic calculations, automatic aggregations, location synchronization when enabled with Plant Maintenance.

Environmental Management comes with Forecast of environment emission which is similar to the Forecast of emissions with facility scenario creation options in EC for future state. However the Forecast of emissions scenario comes as a Business Add-In, and needed to be activated in the system. Similarly in EM, an option is available to check environmental data and then prepare calculations so that we can wait for the environmental data readiness and carryout calculations.

There are various import tools are available in Environmental Compliance tool like exporting the sql/xml format of facility definitions from data base and importing them; batch processing manageemnt etc and similar manner in Environmental Management you can import regulatory content from various providers like RegScan and compliance requirements can also be imported from external sources by means of spreadsheets. There are also options available for migrating the chemical data from EHS management as the part of SAP ERP to Environment, Health and Safety as part of S/4HANA.

Concluding Remarks and Migrating EC 3.0 to S/4 HANA EM:

To conclude SAP EM has more streamlined support of managing the environmetnal compliance. In order to migrate SAP EC into SAP EM module, SAP offers a service which can be explored. If you want to do it yourself you need to export the data from EC 3.0 using inherent EC 3.0 export options and tools.  which needed to be converted to EM specified format. There are many import templates available in EM Fiori apps, which can then be adopted to the data structure of the EM. Finally, these needed to be imported using the import options available within the EM. The business mapping for processes requires some detail analysis based on the adoption, for example Batch Processing, which requires some analysis to map the functionality into EM to suit to reactor scenario, besides planning for analytics and reports recreation within EM as per regulatory requirements.

Thanks and Regards

Jayakumar

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