What is SAP’s Strategy for Carbon Removal with Climeworks?

SAP has entered into a long-term partnership with Climeworks to support its commitment to reaching net zero across its value chain by 2030. 

The deal secures 37,000 tonnes of high-quality carbon removal credits and extends to joint technology development that integrates carbon management into enterprise systems, including those supporting SAP’s global data centres.

Christian Klein, CEO of SAP, says: “At their very heart, SAP’s solutions enable businesses, countries and societies to be successful in this rapidly evolving environment.

“We help our customers harness cutting-edge digital innovation by integrating it seamlessly into their end-to-end business processes, allowing them and the communities in which they operate to become more agile, more resilient, and more sustainable.”

Breaking down the details

The agreement between SAP and Climeworks will extend to 2034 and deliver carbon credits via direct air capture, biochar and enhanced rock weathering. 

The companies are also co-developing enterprise resource planning (ERP)-centric carbon management tools. These tools are being built into the SAP Sustainability Control Tower to help organisations monitor and mitigate emissions in real time.

Climeworks will implement SAP’s cloud platforms, adopting SAP S/4HANA Public Cloud through the GROW with SAP programme and deploying SAP LeanIX portfolio management to strengthen its operational growth. The aim is to deliver tools that enhance compliance, financial management and operational efficiency.

SAP positions this as an investment that not only reduces residual emissions but also stabilises costs.

"Investing in quality carbon removals addresses emissions we can't eliminate directly,” says Sophia Mendelsohn, Chief Sustainability & Commercial Officer at SAP.

“Our Climeworks partnership secures high-integrity capacity at preferred rates while protecting against price volatility.

“This investment also strengthens SAP economically - we can now develop new products that meet evolving customer, partner, and regulatory expectations."

Decarbonisation strategy and data centres

SAP’s decarbonisation strategy is structured around four pillars, with data centre operations a central element.

The company confirms its data centres are already powered by 100% renewable electricity.

Beyond this, SAP is working with hyperscalers and enterprise customers to accelerate the integration of renewable power upstream and downstream.

Other elements of the strategy include:

• Revising procurement policies and working with suppliers to reduce emissions across the supply chain
  
• Electrifying its corporate vehicle fleet
  
• Applying an internal carbon price to business flights

Offsetting residual emissions after 2030 through high-integrity carbon removals such as those delivered by Climeworks.

Matthias Medert, Global Head of Sustainability at SAP, explains: “As SAP advances its decarbonisation strategy, the biggest opportunities for positive impact lie in leveraging our technology and ecosystem to drive systemic change, both internally and across industries.

“Within SAP, our greatest opportunity is embedding sustainability directly into core business processes, such as procurement, supply chain and finance, using our own solutions.

“This not only reduces our operational GHG footprint but serves as a model for our customers.

“Our sustainability solutions aim to empower organisations to measure, manage and act on their sustainability goals. By doing so, we scale our impact.

“We remain grounded in the Science-Based Targets Initiative (SBTi) Corporate net zero Standard and see opportunities to lead by example, even beyond 2030, by continuously improving our net-zero programme and sharing best practices.”

Long-term commitments

SAP has set a target to reach net zero by 2030, 20 years earlier than the Paris Agreement baseline.

This commitment extends across its value chain, with measures to reduce e-waste also part of the plan. 

The company has introduced circular economy initiatives to manage IT equipment used in its offices, working with service providers and manufacturers to reduce the need for new hardware and to design with recyclability in mind.

Matthias adds: “Sustainability is a core element of business strategy and deeply embedded in our vision to help the world run better and improve people’s lives.

“This means it is not a separate initiative, but an integral part of our leadership and long-term goals as a company. And as such, sustainability is a business catalyst and value driver.”