DAX Corporations Reduce Greenhouse Gas Emissions in 2024

In a recent analysis, DAX-listed companies in Germany have demonstrated a continued commitment to reducing their greenhouse gas emissions. According to a review of their sustainability reports, these firms collectively emitted 172.6 million tons of CO2 equivalents in 2024, down from 184.1 million tons in 2023, marking a decrease of over six percent.

This reduction signifies substantial progress in the companies' efforts towards achieving climate neutrality. The analysis was conducted by the consulting and auditing firm EY, which evaluated the sustainability reports of 40 major corporations listed on the DAX index. In comparison, the average carbon footprint in Germany stands at 10.4 tons per person per year, suggesting that the reduction of approximately 11.5 million tons in emissions correlates to the emissions produced by around 1.1 million average citizens.

In total, 22 of the DAX corporations managed to lower their direct emissions. However, 16 companies reported an increase in greenhouse gas emissions. Notably, the construction materials company Heidelberg Materials remained the largest emitter, despite a slight decline in its emissions.

Simon Fahrenholz, the head of EY's sustainability consulting, remarked that the increases in reported emissions could be attributed to more stringent auditing processes and changes in reporting practices. Companies have adapted to new guidelines and are now providing more transparent and detailed accounts of their sustainability efforts. This has led to what Fahrenholz describes as "a more realistic picture of the situation."

The overall assessment of Germany's economic progress in reducing CO2 emissions is mixed. Fahrenholz noted that while advancements are being made, the path forward is not straightforward. Major corporations play a crucial role in this endeavor and bear significant responsibility. Thus, the decline in CO2 emissions is seen as a positive development, albeit with the understanding that the era of achieving significant reductions with minimal effort has passed.

Furthermore, the analysis also examined indirect emissions--those not directly attributable to the companies but arising from upstream and downstream activities. These include emissions from supply chains, transportation, product usage, and disposal. When considering these indirect emissions, the DAX companies accounted for nearly 4.1 billion tons, representing a 19 percent increase from the previous year. EY attributes this rise primarily to the implementation of new reporting standards rather than a genuine increase in emissions.

As the DAX corporations continue to navigate their sustainability journeys, the focus remains on enhancing transparency and accountability in their environmental impact. This ongoing commitment is crucial for meeting future climate goals and addressing the global challenge of climate change.