SAP and Climeworks Forge an Alliance for Carbon Drawdown

SAP and Climeworks enter a strategic partnership to introduce carbon removal solutions into SAP’s net-zero strategy and co-innovate to equip companies with end-to-end solutions for carbon management.

Zurich, June 17, 2025 – SAP and Climeworks, two of Europe’s forward-thinking technology companies, announce an alliance to advance decarbonization. The companies’ multi-million-euro agreement will secure 37,000 tons of diverse high-quality carbon removal credits. Until 2034, Climeworks will remove CO₂ for SAP through a portfolio of Direct Air Capture, Biochar, and Enhanced Rock Weathering, tailored specifically to SAP’s business context.

In addition, Climeworks and SAP have initiated a co-creation process to support businesses with fully ERP-centric carbon management, and Climeworks has adopted SAP’s enterprise solutions to scale its operations.

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Pathway toward net zero: SAP invests in Climeworks' carbon removal portfolio to neutralize residual emissions

By building up a diverse, high-quality carbon removal portfolio, SAP continues to follow the Science-Based Targets initiative’s (SBTi) stringent Corporate Net-Zero Standard, strengthens its resilience against climate-related risks, and unlocks expertise to support customers and partners in their transition to a low-carbon economy.

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

Co-innovation for responsible Carbon Removal Management

SAP and Climeworks are joining forces to pioneer sustainability solutions that help businesses meet their net-zero goals. Recognizing their shared vision for tech-enabled solutions with global impact, the two companies have initiated a co-creation process collaborating on solutions to manage a company’s carbon removal portfolio, such as a fully ERP-centric carbon management through the SAP Sustainability Control Tower and SAP Store.

These solutions could provide enterprises with seamless, ERP-centric tools to measure, manage, and mitigate their carbon footprints, enabling data-driven climate action at scale.

Christoph Gebald, co-founder and co-CEO of Climeworks, says: "Climeworks and SAP share the belief that sustainability is a core element of business strategy. Through this partnership, we are not only advancing carbon removal as a key solution to mitigate climate change-induced business risks but are also embedding it into enterprise technology, making it easily actionable for businesses worldwide. Thereby, companies can build resilience into their operations—turning the shift toward sustainability into an economic opportunity, not a trade-off."

Climeworks strengthens its scaling trajectory with SAP S/4 HANA

As part of the alliance, Climeworks has implemented SAP S/4HANA Public Cloud through the GROW with SAP program, as well as SAP LeanIX, ensuring a scalable, future-proof platform. This helps streamline operations, enforce compliance, and optimize financial management—key for scaling in the carbon removal industry.

Climeworks plans to expand its use of SAP’s sustainability solutions, including the SAP Sustainability Control Tower.

"Implementing SAP was the right step. It ensures compliance, supports our focus on profitability, and allows real-time financial data management," concludes Christoph Gebald.

About Climeworks

Climeworks is a leading high-quality carbon removal provider, combining decades of expertise in Direct Air Capture (DAC) technology with holistic carbon removal solutions.

Climeworks offers an end-to-end enterprise service for premium carbon removal. Its tailored portfolios of nature and engineered solutions are designed to maximize business value and minimize risks. The company runs the world's first two DAC plants in Iceland, demonstrating its core commitment to high-quality carbon removal that is backed by over 15 years of pioneering research, development, and deployment.

By advancing the most reliable solutions in the market, Climeworks accelerates the global transition to net zero, unlocking economic value for businesses, governments, and society.