Increasing competitiveness with product-centric ESG reporting

ESG compliance is no longer a nice-to-have. It has become essential for competing in an increasingly sustainability-conscious market, saving resources and costs, and meeting ever-stricter regulatory requirements. Regulations such as the European Commission’s Corporate Sustainability Reporting Directive (CSRD) or the Supply Chain Act require companies to report ESG data transparently. While many organizations still rely on document-centric approaches and struggle with isolated solutions, a strategic competitive advantage is emerging elsewhere: product-centric ESG reporting.

What is ESG reporting?

Sustainable business practices have many facets. The ESG approach breaks them down into three core dimensions:

• E = Environmental
• S = Social
• G = Governance

In an ESG report, companies provide information on all three areas. This includes data such as CO2 footprints, energy consumption in production and operations, as well as information on promoting biodiversity and reducing waste. It also covers aspects like compliance with fair labor conditions and human rights, ensuring diversity, implementing effective risk management and compliance practices.

Data management is key in ESG reporting

This data – especially environmental KPIs – are often scattered across multiple sources: internal IT tools, external environmental databases, or supplier and partner systems. For many companies, preparing an ESG report therefore comes down to one central question: How can reliable ESG data from diverse sources across the entire value chain be collected and analyzed?

A bar chart with three bars on the topic
Companies consider the multitude of data sources and the varying data quality to be among the biggest challenges in ESG reporting. (BARC GmbH 2024)

One key solution lies in anchoring ESG reporting directly within product development – specifically, in the PLM system. This is where crucial data across the entire product lifecycle is stored: information about the product portfolio, the materials used and their sourcing, emissions from production and the supply chain, as well as data from later lifecycle phases such as use, disposal, and recycling. With this structured and traceable data foundation, a PLM system provides the ideal basis for a precise, transparent, and strategically valuable sustainability assessment.

Product-centric single source of truth as an enabler

An open integration platform like CONTACT Elements offers another crucial advantage for ESG reporting: it seamlessly incorporates information from a variety of internal and external sources. Through APIs, it exchanges data with third-party systems such as ERP tools. Supply chain information can be integrated via standardized exchange formats like the Asset Administration Shell (AAS) or data ecosystems (such as Pontus-X or Catena-X). This makes the platform a single source of truth for company-wide ESG reporting.

A schematic representation of ESG reporting based on the CONTACT Elements platform.
ESG reporting powered by CONTACT Elements.

Ideally, such a solution comes with built-in capabilities to assess and analyze the data. For example, CONTACT Elements uses AI methods to evaluate data quality. In the next step, powerful modules – such as for calculating the Product Carbon Footprint – then generate a compliant ESG report. This creates a comprehensive, audit-ready reporting that meets all market-specific requirements.

From ESG reporting to a sustainability strategy

Companies that rely on product-centric, integrated solutions like CONTACT Elements don’t just tackle the mandatory task of ESG reporting – they have the chance to strategically embed sustainability across the organization. For example, ESG data in CONTACT Elements can be directly linked to product structures and development processes. This allows developers to make early assessments of potential CO2 emissions across the product portfolio or in specific manufacturing processes, and to optimize them in a targeted way.

The result: sustainable innovations, more attractive products, streamlined processes, and lower costs. The foundation for this is always a software platform like CONTACT Elements: open, scalable, and equipped with powerful business applications.

Learn in this article by consulting firm CIMdata how companies can systematically embed sustainability in PLM to reduce their environmental impact across the entire product lifecycle.

Trustworthy data exchange with Gaia-X

In today’s data-driven world, secure and efficient data exchange is a crucial competitive advantage. Companies must be able to integrate and share data from various sources without losing control over their own data. This is where Gaia-X comes in: a flagship project of the European Union that creates a secure, trustworthy, and sovereign data infrastructure for Europe.

In our Research Area Data & Service Ecosystems at CONTACT, we’re working to make the vision of Gaia-X a reality. A key part of this is seamlessly connecting data management systems to Gaia-X-based data spaces.

What is Gaia-X, and why is it important?

In an increasingly globalized and data-driven world, it’s crucial for companies to maintain control over their data while still benefiting from data exchange. Gaia-X provides the framework for this: its core concept for a federated data infrastructure allows platform providers, cloud services, and data holders to communicate and exchange data securely and in compliance with legal requirements.

Gaia-X doesn’t aim to replace existing data infrastructures; instead, it connects them to create an open, interoperable ecosystem. To understand the significance of this shift, it helps to look at the differences between data platforms and data ecosystems:

Data platforms typically operate on a centralized model. Data is copied and uploaded to the platform, allowing other parties to download and use it. The problem with this is that copies of the data exist everywhere, and all participants must trust the platform operator to manage the data securely and correctly.

In contrast to a centralized data platform, in a data and service ecosystem, the operator’s role shifts to that of a federator. This federator offers “federation services” that enable participants to find each other, establish trust, and exchange data directly without a central entity managing or controlling the data.

The core pillars of Gaia-X form the foundation for a trustworthy and future-proof data ecosystem:

  • Trust & transparency: Gaia-X establishes clear rules for data governance, security, and data protection. The system is designed from the ground up to be compliant with the GDPR (General Data Protection Regulation), ensuring user privacy and data security.
  • Interoperability: By adhering to open standards and interfaces, data and services move freely between compliant providers.
  • Portability: Businesses can easily move their data and applications between different Gaia-X-compliant providers without vendor lock-in. This fosters competition and gives companies the flexibility to choose the solutions best suited for their operational needs.
  • Sovereignty: Data sovereignty remains with the owner at all times. Businesses retain control over the access and use of their data, in strict compliance with European laws and values.

Gaia-X is thus an important step towards Europe’s digital sovereignty, offering companies the opportunity to drive innovation, develop new business models, and simultaneously retain control over their valuable data.

Requirements for participating in the Gaia-X ecosystem

Participating in the Gaia-X ecosystem opens up numerous opportunities for companies but also requires fulfilling certain demands.

  • Compliance with the Gaia-X Trust Framework: This includes adherence to rules and guidelines for data governance, data security, data protection, and interoperability.
  • Operating your own infrastructure: Typically, operating your own infrastructure is necessary to ensure full data sovereignty. This might include running an object storage (like S3), a Self-Sovereign Identity (SSI) solution, or other necessary services.
  • Implementation of security measures: Companies must implement appropriate security measures to protect their data and systems from unauthorized access, loss, or damage.
  • Adherence to standards: Gaia-X relies on open standards and interfaces for interoperability between different systems and platforms.

Conclusion

Gaia-X is Europe’s strategic response to the challenges of the digital era. By creating a trustworthy, interoperable, and sovereign data ecosystem, Gaia-X enables companies and organizations not only to securely store their data but also to share it in a controlled manner and use it intelligently.

This not only fosters innovation and new business models across industries but also ensures a fair competitive landscape where even smaller players can benefit from the potential of data-driven value creation. Users and companies regain control over their data, forming the basis for transparency and trust in the digital space.

Discover in our next blog article how we are laying the foundation for federated data exchange by connecting CONTACT Elements to Pontus-X.

Introducing Cloud PLM Systems

How we support SaaS customers in Customer Success Management

Introducing Product Lifecycle Management (PLM) software is a significant step. The Cloud PLM system serves as a central hub for the development, management, and optimization of products throughout their entire lifecycle – from initial concept through production, service, and recycling. To ensure it yields results quickly, you need to set the right course from the outset. This is where our Customer Success Management comes in.

In this article, you will learn how Customer Success Management ensures a smooth and secure start with the CIM Database Cloud PLM system.

Onboarding in twelve weeks

To make your start with the Cloud PLM system as efficient as possible, we utilize our Fast Forward Approach. In a 12-week onboarding program, your key users will gradually learn all the essential functions of the system. Beyond the basic functions, we also provide you with industry best practices. This way, your team combines theoretical knowledge with practical expertise, enabling them to integrate the software into their daily workflow quickly.

The three pillars of the Fast Forward Approach

  • Structured Onboarding: PLM projects require a clear structure. From the initial steps to the extensive functionalities of CIM Database Cloud: We ensure that all employees confidently use the new system and enthusiastically embrace the possibilities of holistic product data management.
  • Active Support: During implementation, we stand closely by your side, answering questions and providing assistance to resolve potential obstacles in advance. Our support doesn’t end with the onboarding. We help you secure the long-term success of your Cloud PLM system.
  • Sustainable Success: Our primary goal is to enable you to work independently and efficiently with the Cloud PLM system after onboarding. We empower your teams to leverage the full potential of the software and create long-term value for your company.

This is how the Cloud PLM implementation process looks

In weekly onboarding sessions, we guide you intensively through the main modules of CIM Database Cloud. The focus is not only on the mere operation (how) but also on strategic understanding (why), to unlock the full potential of the software for your business processes and secure your long-term success.

Key users solidify their knowledge through a dedicated self-study phase. This ensures that they confidently master all relevant basic functions by the end of the onboarding. In this way your team is optimally prepared for daily work with the Cloud PLM system.

What our customers say about their onboarding process:

“Thanks to the excellent collaboration with the Customer Success Manager, we were able to quickly and efficiently map our processes within the CONTACT SaaS PLM system, CIM Database Cloud, and successfully bring it into production. The close contact greatly facilitated our understanding of the CONTACT SaaS PLM system’s methodology and helped us find the right settings for our needs.”
Lena Döhl, Head of Mechanical Design, SAS Softec GmbH

“At bulthaup, we see the use of CDB Cloud as a foundation for realizing our vision of the digital twin. The guided onboarding by a Customer Success Manager from CONTACT gives us the opportunity to quickly use a fully operational and productive system. The clearly structured onboarding process, led by the Customer Success Manager, allows our employees to work productively with minimal training time. A major advantage is also the direct exchange with the CSM when it comes to issues or questions regarding the methodology.”

Alexander Weyda, HEAD of IT, bulthaup GmbH & Co. KG, Authorized Signatory and Member of Executive Management

Conclusion

The introduction of a Cloud PLM system is more than just a technical innovation. It is a strategic transformation that significantly shapes your organizational culture. To ensure this transformation succeeds, our Customer Success Management team accompanies you from start to finish with our proven Fast Forward Approach. In just 12 weeks of onboarding, we guide you securely and purposefully through the implementation of CIM Database Cloud.

Discover all the features that CIM Database Cloud offers you now.