In collaboration with Celonis, we explore the benefits of climate contribution and what companies should consider when supporting climate protection projects.
From carbon neutrality to climate contribution - a trend more and more companies are adopting. But why exactly? And what sets the two apart? In collaboration with Celonis, we explore the benefits of climate contribution and what companies should consider when supporting climate protection projects.
Over the past year, negative headlines about the voluntary carbon market have become increasingly common. Certificates were widely criticised for being ineffective due to questionable methodologies and calculation baselines, rendering them essentially worthless. This led to widespread uncertainty in the market, particularly among companies that had purchased and retired allowances as part of their offsetting strategies. Companies that want to become carbon neutral typically buy carbon from carbon offset projects to offset their carbon footprint and claim "carbon neutrality". However, this does not make them truly "carbon neutral" in the literal sense, which can be misleading to consumers. In addition, simply offsetting emissions without implementing effective reduction measures has come under increasing scrutiny. Why is this? Because simple offsetting - without substantial emission reductions - is not enough to meet the 1.5 degree target set by the Paris Agreement.
"In response to the controversies surrounding the effectiveness of carbon protection projects, we are seeing an increased awareness in the market for higher quality standards and transparency from project developers and marketplaces in voluntary carbon trading. At the same time, there is a significant need for buyers and companies to clearly communicate the alignment of these investments with global climate goals. The need for innovative approaches to global climate change mitigation and carbon removal is more urgent than ever. This is why we have developed our climate contribution strategy." - Sophia Wieland, Sustainability & Climate Change Lead, Celonis
The term "climate contribution" (or "contribution claim") refers to the active support of projects that have a positive impact on the climate, regardless of whether this is directly linked to a company's own emissions. This can include investing in climate protection projects that deliver additional environmental and social benefits. In contrast to carbon neutrality, the focus of a climate contribution is not on emphasising one's own neutral status, but rather on contributing to overarching climate protection goals. This approach has the advantage of being more positively received by the market and helps to avoid reputational damage (Carbon Market Watch, 2024). Combined with effective mitigation measures, it can also accelerate global efforts to meet climate change targets.
A climate contribution is therefore also an effective way to increase one's impact while working towards the Net Zero goal through reduction measures. The Net Zero claim requires companies and organisations not only to offset their emissions, but also to significantly reduce their absolute emissions. This means taking all possible measures to avoid and reduce emissions before offsetting any remaining emissions with removal certificates. Leading this effort is the Science Based Targets (SBT) initiative, which provides clear guidelines and targets for companies to meet these standards.
Since 2022, Celonis has been pursuing a Net Zero climate strategy. The company is committed to setting Science-Based Targets (SBTs) and is working towards a clear Net Zero goal. In addition to implementing reduction measures, Celonis aims to support climate projects beyond its own value chain. But what does this mean in detail?
Celonis will significantly reduce its own emissions in the coming years by downsizing its fleet and powering its offices with renewable energy. In addition, Celonis is focusing on decarbonising its value chain, for example by implementing sustainable procurement practices, IT decarbonisation measures and further integrating sustainability aspects into its travel policy to reduce emissions from business travel.
For the remaining unavoidable emissions, Celonis supports climate projects every year. In 2023, Celonis has developed this approach into a climate contribution strategy that focuses on carbon removal projects. Celonis adheres to strict quality criteria such as additionality, robust calculation methods and validation, permanence, avoidance of displacement and positive co-benefits. It was also important to Celonis that project developers adopt an innovative, technology and data-driven approach and maintain a regional connection to the company's operations.
"As a market leader in process intelligence, the development of data-driven, innovative solutions is deeply embedded in our company’s DNA. We aim to support climate projects that share this mindset and build trust in their climate protection measures. In our Climate Contribution Portfolio, we ensure that projects generate a sustainable, measurable, and climate-relevant impact specific to their region and apply validated methods." - Sophia Wieland, Sustainability & Climate Change Lead, Celonis
For 2023, Celonis is investing in a portfolio of carbon protection projects focused on agriculture and forestry in the US and Germany. Through Pina Earth, Celonis supports the "Luckaitztal" and "Lindorf" projects, which involve the transformation of monoculture forests into biodiverse and climate-resilient mixed forests. All project information and updates can be followed on Pina Earth's Forest Dashboard.
"Pina Earth enables us to achieve high transparency regarding the effectiveness of the projects through the creation of digital twins and climate simulations, which we can view on visual dashboards. Additionally, we greatly value the collaboration with Pina’s knowledgeable and intrinsically motivated team, as well as their willingness to engage in joint initiatives." - Sophia Wieland, Sustainability & Climate Change Lead, Celonis
This example demonstrates that climate communication can be approached holistically. In addition to external communication, Celonis places great emphasis on informing its employees about the company’s sustainability strategy. Following a successful webinar with our founder and CEO, Dr. Gesa Biermann, who presented Pina Earth’s forest transformation projects to Celonis employees, we are excited to continue our collaboration!
About Celonis:
Celonis ensures that processes work for people, businesses and the planet. The Celonis Process Intelligence Platform combines industry-leading process mining and AI technologies with business context to provide customers with a digital twin of their operations. The platform is system-agnostic, objective and provides a common language for all stakeholders to better understand and optimise business processes. Celonis enables its customers to achieve continuous improvements in revenue growth, cost reduction and sustainability. The company is headquartered in Munich and New York City, with more than 20 offices worldwide.
