German enterprise software giant SAP and Swiss carbon removal firm Climeworks said on Tuesday they have entered a strategic alliance to integrate carbon removal solutions into SAP’s net-zero roadmap and co-develop enterprise sustainability tools.

According to a company statement, the multi-million-euro agreement will secure 37,000 metric tons of carbon removal credits for SAP through 2034.

The credits will be sourced from a portfolio that includes direct air capture, biochar and enhanced rock weathering technologies, customized to SAP’s business context.

Carbon Removal Investments

The partnership supports SAP’s commitment to the Science-Based Targets Initiative’s corporate net-zero standard, which mandates neutralizing residual emissions through durable removals.

The company stated that the agreement also serves as a hedge against carbon price volatility, while enabling it to develop new climate-related solutions.

“Investing in quality carbon removals addresses emissions we can’t eliminate directly,” said Sophia Mendelsohn, SAP’s chief sustainability & commercial officer. “Our Climeworks partnership secures high-integrity capacity at preferred rates and strengthens SAP economically by enabling new products aligned with evolving customer and regulatory expectations.”

Enterprise Carbon Management

Beyond purchasing removals, SAP and Climeworks will co-develop tools to help other companies manage their carbon strategies.

The companies aim to create end-to-end, ERP-integrated solutions using SAP’s Sustainability Control Tower and SAP Store, enabling businesses to track and manage carbon removal within their existing systems.

“Climeworks and SAP share the belief that sustainability is a core element of business strategy,” said Christoph Gebald, co-founder and co-CEO of Climeworks. “We’re embedding carbon removal into enterprise technology to make it actionable and scalable for businesses globally.”

Cloud Solutions to Scale Operations

As part of the alliance, Climeworks has implemented SAP’s S/4HANA Public Cloud and SAP LeanIX via the GROW with SAP program.

The deployment is expected to enhance compliance, improve financial oversight, and support Climeworks’ expansion in the fast-growing carbon removal sector.

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

Climeworks plans to expand its use of SAP’s sustainability offerings, including the SAP Sustainability Control Tower, as it scales its global operations.

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