Co2 balance company: Implementing climate protection effectively

Understanding the company’s own carbon footprint

The first step towards effective climate protection is to understand your company’s carbon footprint. The CO2 balance, also known as the carbon footprint, records all greenhouse gas emissions caused by business activities – directly and indirectly.

This transparency is important for the environment, the company’s image and compliance with legal requirements. Precise balancing enables potential savings to be identified and targeted reduction strategies to be developed.

The three scopes of CO2 accounting

The globally recognized Greenhouse Gas Protocol (GHG Protocol) divides emissions into three categories, known as scopes.

• Scope 1: Direct emissions from sources that the company owns or controls (e.g. company vehicles, heating systems).
• Scope 2: Indirect emissions from purchased energy (e.g. electricity, district heating).
• Scope 3: All other indirect emissions along the value chain, from raw material procurement to product disposal. This scope is often the most complex, but also offers the greatest savings potential.

CO2 and CO2 equivalents: The difference

The term CO2 equivalents (CO2e) is often used in connection with the carbon footprint. This value takes into account not only CO2, but also other greenhouse gases such as methane or nitrous oxide.

As these gases contribute to the greenhouse effect to varying degrees, their impact on the climate is converted into CO2 equivalents. This allows the overall impact of all greenhouse gas emissions of a company to be presented in a comparable manner.

In Germany, an average of 10.4 tons of greenhouse gases were emitted per person per year in 2025 (measured in CO2 equivalents). Voluntary compensation measures account for around 22% (around 2.2 tons) of this. You can find more detailed statistics here.

The individual carbon footprint is an important indicator of environmental impact. It reflects both private consumption and corporate activities. For companies in Germany, the precise balancing of CO2 emissions is becoming increasingly important. This is not only due to legal requirements, but also to the increasing expectations of customers and investors regarding sustainable business practices. The disclosure of such data forms the basis for a targeted reduction in emissions.

First steps towards CO2 balancing

Getting started with carbon accounting can seem complex at first. It is advisable to start with small but effective steps.

First, the relevant emission sources within the three scopes should be identified. Data can then be collected on energy consumption, kilometers driven and materials used.

This data forms the basis for calculating CO2 emissions. Software solutions and consulting companies can help with data collection and evaluation. It is important to update the CO2 balance regularly and communicate it transparently. This creates the basis for continuous improvements and a credible sustainability strategy.

Mastering the legal framework

The regulatory landscape in relation to CO2 accounting is constantly changing. Are you ready for the new challenges? This section explains the current regulatory requirements for German companies. We look at how leading companies are dealing with regulations such as the Federal Climate Protection Act (KSG), the EU Taxonomy and the CSRD.

The Federal Climate Protection Act

The Federal Climate Protection Act (KSG) sets binding targets for the reduction of greenhouse gas emissions in Germany. It defines sector-specific targets and mechanisms for reviewing and adapting the measures. For companies, this means knowing their carbon footprint and defining their own reduction targets.

The EU taxonomy

The EU taxonomy is a classification system for sustainable economic activities. It defines criteria that determine whether an investment is considered environmentally sustainable. Companies must disclose the extent to which their activities meet these criteria. This influences access to financing and the behavior of investors.

The CSRD

The Corporate Sustainability Reporting Directive (CSRD) extends the reporting obligations of companies with regard to sustainability. It obliges significantly more companies to publish information on their environmental impact, social aspects and corporate governance. The CSRD requires detailed reporting on the CO2 balance and the reduction measures implemented. Find out how to master sustainability reporting here.

Reporting obligations according to company size

The exact reporting obligations depend on the size and sector of the company. The following table provides an overview of the various requirements.

To illustrate the different CO2 accounting obligations depending on company size and sector in accordance with current German and EU legislation, you will find an overview here:

“Reporting obligations according to company size”

Company size	Reporting obligation	Date of introduction	Scope of reporting	Sanctions
Large corporations	Complete CSRD reporting	From financial year 2025	Extensive disclosure of sustainability information, including CO2 balance sheet	Fines for non-compliance
Capital market-oriented SMEs	Simplified CSRD reporting	From financial year 2027	Reduced scope of reporting	Fines for non-compliance
Non-capital-market-oriented SMEs	Voluntary reporting	–	Individually customizable	–

In summary, it can be said that the reporting obligations increase with the size of the company. Large companies will have to disclose comprehensive sustainability information as early as 2025, while smaller and medium-sized companies will initially benefit from simplified regulations or voluntary reports.

Preparation for future regulations

The legal requirements in the area of sustainability will continue to evolve in the future. Companies should prepare for upcoming changes at an early stage. Continuous monitoring of regulatory developments and the implementation of a CO2 management system are therefore important.

This enables proactive adaptation to new regulations and minimizes legal risks. Transparent sustainability reporting also strengthens the trust of investors, customers and other stakeholders.

By addressing carbon accounting at an early stage, companies can generate strategic advantages and position themselves as pioneers in the field of sustainability. Implementing a robust system for recording and reducing emissions is not only a legal necessity, but also an important step towards sustainable corporate management.

Tried and tested methods of CO2 balancing

The infographic shows reduction strategies for companies, visualized using the example of a factory with renewable energies. It illustrates the importance of innovation and sustainable measures for CO2 reduction. The illustration shows how emissions can be reduced through technology and renewable energies.

There are various tried-and-tested methods for successful carbon accounting that are based on recognized standards. They help companies to systematically record and reduce emissions. It is important to choose the right method for the respective company size and sector.

GHG Protocol, ISO 14064 and Science Based Targets

Three common standards are the GHG Protocol, ISO 14064 and the Science Based Targets Initiative (SBTi). The GHG Protocol provides a framework for the accounting of greenhouse gas emissions, divided into Scopes 1, 2 and 3. ISO 14064 is an international standard with detailed requirements for the quantification, monitoring and validation of emissions. The SBTi supports companies in setting science-based climate targets that are in line with the Paris Agreement.

These different approaches offer companies flexibility in their choice. Each company can choose the standard that meets its needs.

Emission detection in various operating areas

The precise recording of emissions is crucial in all areas. In the vehicle fleet, fuel consumption and mileage are recorded and converted into CO2 emissions. Energy consumption for heating, cooling and lighting plays a role in building management. Complex supply chains must also be considered by including the emissions of suppliers and transportation service providers.

In 2023, greenhouse gas emissions in Germany reached a low of 673 million tons of CO2 – a decrease of 46% compared to 1990. Find out more about greenhouse gas emissions in Germany here. The decline in coal-fired power generation and the drop in production in the energy-intensive industry contributed to this.

The following table compares the most common standards and methods for carbon accounting and provides an overview of their advantages and disadvantages:

Comparison of CO2 accounting methods

Method/Standard	Area of application	Advantages	Disadvantages	Suitability for
GHG Protocol	Internationally recognized	Flexible framework	Few detailed requirements	All company sizes
ISO 14064	Applicable worldwide	Detailed requirements	Higher implementation effort	Larger companies
SBTi	Science-based	Ambitious goals	High ambition	Climate leading companies

In summary, it can be said that the choice of the right standard depends on the individual needs of the company.

Software solutions for CO2 balancing

Various software solutions support companies with their carbon footprinting. These tools automate data collection, perform calculations and create reports. The right software depends on the individual requirements – size, industry and budget.

Companies can use software to increase the efficiency of their CO2 accounting. This saves time and resources and enables continuous monitoring of emissions.

Carbon accounting is an important step towards achieving sustainability goals and contributing to climate protection. With tried-and-tested methods and suitable software, companies can effectively record, reduce and transparently communicate emissions.

Develop effective reduction strategies

Once your carbon footprint has been drawn up, the next step is to develop and implement specific measures to reduce emissions. This step is crucial for achieving your sustainability goals and your contribution to climate protection. We differentiate between short-term measures and long-term strategies.

Immediate measures for initial success

Some measures can be implemented quickly and easily and still offer tangible savings potential. These include optimizing energy consumption.

Examples of this include switching to green electricity, improving the energy efficiency of buildings and facilities and raising employees’ awareness of how to use energy more consciously.

Reducing business travel through video conferencing and promoting sustainable mobility – for example through job tickets or the provision of e-bikes – can also save emissions in the short term.

Long-term strategies for sustainable change

Long-term strategies are essential for a profound and sustainable reduction in CO2 emissions. This includes transforming the supply chain by selecting suppliers with high sustainability standards and optimizing logistics processes.

Investing in renewable energies, for example through photovoltaic systems, also contributes to reducing CO2 in the long term. The development of more climate-friendly products and services is also important. You can find more information on this in our guide: How to master your sustainability strategy.

Profitability of climate protection measures

Climate protection is not only an ecological responsibility, it also makes economic sense. Many CO2 reduction measures offer a positive return on investment (ROI). Investments in energy efficiency often pay for themselves through the energy costs saved.

At the same time, a credible sustainability strategy strengthens the company’s image and its attractiveness for customers, investors and employees.

In 2023, CO2 emissions in Germany amounted to around 572 million tons. This is a decrease of almost 50% compared to 1990, with the majority of emissions coming from energy production. Detailed statistics on CO2 emissions in Germany can be found here. The German government has set itself the goal of achieving climate neutrality by 2045.

Success stories from pioneering companies

Leading companies in the field of sustainability show how CO2 reduction works. They integrate climate protection into their entire corporate strategy and actively involve their employees. They use training and incentives to promote sustainable action within the company. Transparent communication of climate protection measures is also important.

Involving employees and redesigning supply chains

The involvement of employees is crucial to the success of climate protection measures. Employees can be sensitized and motivated through communication and training. The transformation of the supply chain requires close cooperation with suppliers. Joint targets and incentives help to reduce emissions along the entire value chain. Here you will find further information on the successful implementation of sustainability.

Effective CO2 reduction requires a strategic approach with short-term measures and long-term transformations. In this way, economic and ecological goals can be combined.

Designing meaningful CO2 compensation

CO2 compensation plays an important role in climate protection. However, it should not be seen as the sole solution. First of all, companies should reduce their own emissions. Unavoidable emissions can then be offset by supporting climate protection projects. You can find out how companies implement CO2 compensation in a sensible and credible way here.

Quality differences in certification standards

The market for CO2 offsetting is diverse and complex. Various certification standards offer different levels of quality. The Gold Standard is considered to be particularly strict. It ensures that projects have a positive social and environmental impact in addition to reducing CO2. The Verified Carbon Standard (VCS) is a widely used standard for quantifying and verifying emission reductions. Plan Vivo focuses on community-based projects and promotes sustainable development in rural regions.

Choosing the right standard is important for the credibility of the offsetting measures. Companies should inform themselves about the criteria of the various standards. This enables them to select projects that meet their sustainability goals.

Project selection: What do successful companies look for?

In addition to the certification standard, successful companies pay attention to other important factors when selecting offsetting projects:

• Additionality: The project must achieve additional emission reductions that would not have been achieved without the offset payments.
• Permanence: The emission reductions achieved must be secured in the long term.
• Transparency: The project sponsor should report transparently on the implementation and results.
• Local benefit: Projects with a positive impact on the local population, for example through new jobs or the protection of biodiversity, are ideal.

Credibility and communication of the compensation strategy

Transparent communication is crucial for the credibility of CO2 offsetting. Companies should disclose which projects they support, which standards they apply and how the costs are calculated. Greenwashing, i.e. the pretense of environmental protection, must be avoided at all costs.

Instead, companies should embed their offsetting measures in a comprehensive climate strategy. The focus should be on reducing their own emissions. Offsetting complements these efforts.

Cost calculation and practical checklist

The costs for CO2 certificates depend on the project and the respective standard. Companies should plan realistic costs and integrate offsetting into their budget. A checklist helps with the evaluation of offsetting projects:

• Is the project certified according to a recognized standard (e.g. Gold Standard, VCS, Plan Vivo)?
• Is the additionality of the emission reductions proven?
• Is the long-term storage of CO2 guaranteed?
• Are there transparent reports on the implementation and results of the project?
• Does the local population benefit from the project?

CO2 compensation is a complex issue. With the right approach, companies can make a valuable contribution to climate protection. It is important to see offsetting as a supplement to, rather than a substitute for, reducing your own emissions. Transparent communication and the selection of high-quality projects improve the company’s carbon footprint and strengthen the trust of customers and stakeholders.

Using the carbon footprint as a strategic competitive advantage

Climate protection is becoming increasingly important in business. It is not just a question of costs and compliance, but also offers companies the opportunity to position themselves strategically and achieve competitive advantages. More and more companies are recognizing the carbon footprint as an important tool for securing their future viability and remaining competitive. This change is being driven by new legal requirements, changing customer needs and the increasing importance of sustainability.

Winning customers through credible climate protection

Customers’ purchasing behavior is changing. Studies show that more and more people prefer products and services from climate-conscious companies. Sustainability plays a decisive role in purchasing decisions, especially for younger target groups. A positive carbon footprint strengthens customer confidence and promotes brand loyalty.

One example of this is the increasing demand for sustainable packaging. Companies that rely on environmentally friendly materials and recycling are appealing to new customer groups.

Climate branding: authentic communication pays off

Climate branding means integrating climate protection measures into brand communication. Authenticity and transparency are crucial here. Greenwashing, i.e. pretending to be environmentally committed, is quickly recognized by customers and damages the company’s reputation.

Successful climate branding is based on concrete actions and measurable results. Disclosure of the carbon footprint and regular reports on progress create trust and credibility. You can find out more about sustainability here.

Attracting and retaining employees through sustainability

Sustainability is also an important factor in the competition for skilled workers. Many employees, especially young talent, want to work for companies that take responsibility for the environment. A positive carbon footprint and credible climate protection measures make a company more attractive as an employer and strengthen employee loyalty.

The promotion of sustainable mobility, vegetarian or vegan dishes in the canteen and participation in environmental projects are examples of how companies can create an attractive working environment.

Convincing investors with sustainable corporate governance

Investors are attaching more and more importance to ESG (environmental, social and governance) criteria in their investment decisions. A positive carbon footprint and sustainable business practices are seen as indicators of long-term success and minimize risks. Companies that invest in climate protection improve their financing conditions and attract capital more easily.

Measurable business value through climate protection

The positive effect of climate protection can be measured using various key figures:

• Sales growth: Due to the increasing demand for sustainable products and services.
• Customer loyalty: Through more trust and brand loyalty.
• Lower energy costs: through energy efficiency and renewable energies.
• Positive corporate image: through credible communication of climate protection activities.
• Motivated employees: by identifying with the sustainability goals.

Climate protection is an investment in the future. Companies that actively manage their carbon footprint and use climate protection strategically combine economic success with ecological responsibility. Optimize your CO2 balance and benefit from the advantages.

Click A Tree helps companies to achieve sustainability goals and increase business success at the same time. Find out more about Click A Tree and our solutions.