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Science Based Targets initiative approves Celonis near-term emission reduction targets
In April, the Science Based Targets initiative (SBTi) approved Celonis’ near-term science-based emissions reduction targets. This validation comes after Celonis committed to submit emission reduction targets aligned with the SBTi framework. Celonis joins nearly 8,000 companies around the globe with science-based targets that conform with the SBTi standards and guidance.
“At Celonis, we believe in making processes work for the benefit of people, companies, and the planet. This commitment extends beyond the solutions we provide to help customers achieve business value from sustainability initiatives; it’s also fundamental to how we operate as a company,” said Janina Bauer, Vice President, Global Head of Sustainability at Celonis. “That’s why we’re proud to stand with other climate leaders in their climate ambition, guided by the Science Based Targets initiative.”
What are science-based emissions targets?
In collaboration with the Carbon Disclosure Project (CDP), the United Nations Global Compact, World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF), the SBTi has set a series of climate-minded frameworks that align with the latest science and support the goals of the Paris Agreement.
The organization also provides tools and guidance, including sector-specific recommendations, for companies to reduce their greenhouse gas (GHG) emissions to 1.5 degrees Celsius. SBTi encourages companies of all sizes and sectors to set science-based targets in order to cut global GHG emissions by half before 2030, and hit net-zero by 2050.
Celonis is committed to significantly reducing its environmental impact across its operations and value chain no later than 2030, backed by its validated near-term targets:
Reduce absolute scope 1 and 2 GHG emissions 42% by FY2031 from a FY2024 (February 2023 to January 2024) base year.
Reduce scope 3 GHG emissions from business travel 51.6% per FTE by FY2031 from a FY2024 base year.
Ensure that 50.5% of its suppliers by emissions covering purchased goods and services and capital goods will have science-based targets by FY2030.
Why do science-based emissions targets matter?
The latest climate science from the Intergovernmental Panel on Climate Change (IPCC) shows it is possible to limit global temperature rise to 1.5 degrees Celsius, but we are dangerously close to this threshold. The United Nations (UN) Secretary-General referred to a 2021 IPCC report as ‘code red for humanity’ and called for immediate action to reduce carbon emissions.
By applying the SBTi framework, companies demonstrate their dedication to make rapid and important climate-minded improvements that result in positive impacts for the planet’s population and their business operations. In fact, 79% of corporate executives found that their company’s reputation had strengthened through aligning with the framework of the SBTi. In addition, 59% of executives said that investor confidence was boosted as well.
Sustainability at Celonis
Celonis has built sustainability into how we operate as a company. Since 2020, Celonis has measured corporate GHG emissions annually and in-line with the GHG Protocol.
The GHG Protocol establishes a global standardized framework to measure concerning GHG emissions of companies and organizations. According to this framework, a corporate GHG footprint consists of three categories: Scope 1, 2, and 3—and Celonis tracks these measurements to ensure alignment with both the protocol and the SBTi framework.
“Achieving the accuracy in carbon emission measurements needed to set official climate reduction targets is a genuine testament to our cross-departmental efforts in measuring our annual carbon footprint,” said Sophia Wieland, Sustainability and Climate Change Lead at Celonis. “A key improvement lies in the enhanced precision and granularity of our procurement emissions data in Scope 3, achieved through methods like implementing supplier-specific emission factors.”
Beyond the SBTi, Celonis is involved with the We Mean Business Coalition.
Read about how Celonis Platform, specifically our Sustainability Solution Suite, enables companies to demonstrate business value from sustainability initiatives.
Reducing Scope 1 and Scope 2 emissions
Scope 1 emissions are directly generated by company operations, such as emissions from vehicle fleets, fossil fuel-based heating of buildings and the cooling refrigerants used in office air conditioning. Scope 2 emissions are indirect emissions related to purchase of electricity, steam, heating and cooling. Celonis is taking steps to reduce emissions from both its fleet and office operations.
In 2022, Celonis began to minimize the size of its vehicle fleet, and since then, it has shrunk by 20%. As of 2023, electric vehicles make up 14% of Celonis’ fleet. Celonis has stopped allowing cars for new employees, and all remaining cars will reach the limit of their second renewal period by 2030, helping us meet our goal of a zero-car fleet by 2030.
Celonis is also incorporating sustainability into its offices and buildings around the world. Celonis’ location in Madrid, Spain is powered by 100% renewable energy and its environmental management system aligns with international standards. Celonis’ New York location at One World Trade Center, has a leading sustainability strategy. And in all of Celonis’ German offices, renewable electricity is used.
By switching to green electricity contracts, the share of renewable electricity Celonis uses has increased from 12% in 2022 to 36% in 2023, and the company aims to power all offices with 100% renewable energy within the upcoming years.
Reducing Scope 3 emissions
Scope 3 emissions are not created by a company itself, but emissions created indirectly up and down a company’s value chain. These emissions can make up the majority of a company’s carbon footprint. Celonis is taking concrete steps to reduce its Scope 3 emissions by engaging with our suppliers and integrating sustainability into our travel policy.
Celonis promotes the use of trains over flights and encourages team members to use public transportation. To support these choices, we use an online booking tool that provides visibility into emissions from different travel options, suggests sustainable transport modes, and quantifies the total business travel carbon footprint.. When it comes to air travel, the company limits the purchase of business-class seats, because business-class, long-haul flights are responsible for three times more emissions than a standard economy flight. In 2023, the Celonis reinvested its collective points from frequent flier programs into sustainable aviation fuel development. Celonis emphasizes that continuous improvements in data transparency regarding travel's environmental impact will be vital for enabling smart travel choices and targeted reduction efforts.
To manage emissions from purchased goods and services and capital goods, the company segments vendors according to their carbon emissions and climate goals, and aims to collaborate with long-term suppliers to measure their emissions and set climate goals if not yet in place. Celonis has developed a Supplier Code of Conduct and a Supplier Rating Process, as well as improved sustainability monitoring of suppliers in collaboration with Celonis partners, IntegrityNext and Ecovadis.
Free sustainability training courses from Celonis Academy
Want to learn more about sustainability? Celonis believes that in order to make an impact on a global scale, they must enable others to make change. With Celonis Academy, free educational courses about sustainability are available to learners around the world, including the Sustainability Base Camp among other tutorials to help guide you along your sustainability journey.
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