Carbon removal solutions provider Climeworks announced a new strategic partnership with enterprise application software company SAP, aimed at providing companies with end-to-end carbon management solutions, and introducing carbon removals into SAP’s own net zero strategy.

Carbon dioxide removal (CDR) technologies like DAC are increasingly viewed as essential for companies – especially those with hard-to-abate emissions – to achieve their net zero targets. As such, investment in and adoption of these technologies is gaining momentum among companies seeking credible and long-term climate strategies.

Under the new partnership, the two companies have initiated a co-creation process to provide 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, offering ERP-centric tools to enable businesses to measure, manage, and mitigate their carbon footprints.

The deal marks a significant milestone in Climeworks’ evolution as a carbon removal service provider and follows the 2024 launch of its carbon removal portfolio service, which provides companies with high-quality carbon removal portfolios, spanning a broad range of carbon removal technologies and solutions.

Christoph Gebald, co-founder and co-CEO of Climeworks, said:

“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 [so that] companies can build resilience into their operations – turning the shift toward sustainability into an economic opportunity, not a trade-off.”

The new partnership also includes a multi-million euro agreement, with SAP purchasing 37,000 tons of carbon removal credits from Climeworks through 2034, spanning technologies including Direct Air Capture, Biochar, and Enhanced Rock Weathering, tailored specifically to SAP’s business context.

Additionally, Climeworks said that it has adopted SAP’s enterprise solutions to scale its operations, and added that it is planning to expand its use of SAP’s sustainability solutions, including the SAP Sustainability Control Tower.

Sophia Mendelsohn, SAP’s chief sustainability and commercial officer, said:

“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.”