Germany's biggest companies cut emissions by 6% in 2024

By Julian Weber, dpa

Leading German companies listed on the country’s top stock market index recorded lower greenhouse gas emissions in 2024, according to a new study.

The analysis by auditing giant EY of sustainability reports at the 40 companies on Germany’s DAX stock market index found direct emissions fell by 6% to 172.6 million tonnes of carbon dioxide (CO2) equivalents.

The figure was 11.5 million fewer than the 184.1 million tons in 2023.

With the average CO2 footprint in Germany standing at 10.4 tonnes per capita, the reduction represents a sum equivalent to the emissions of 1.1 million German residents.

According to the analysis, the figures include emissions caused by processes in day-to-day operations — such as companies’ machinery, own power plants and vehicle fleets.

However, greenhouse gas emissions from the energy used by the company are also included.

The largest emitter remained — despite a slight decline — the building materials group Heidelberg Materials.

A total of 22 DAX companies reduced their direct emissions, while 16 companies emitted more greenhouse gases and the other two had insufficient data.

The increases could also be due to a stricter and more comprehensive review of their own emissions and changes in reporting, according to Simon Fahrenholz, head of sustainability consulting at EY.

Companies have adapted to a new guideline and are now reporting on their progress in a more transparent and detailed manner, meaning that “for the first time, we now have a truly realistic picture of the situation,” Fahrenholz said.

His assessment of the progress in cutting CO2 emissions was mixed, however.

“The German economy is making progress in reducing CO2 emissions, but the path is by no means straightforward,” he said. “Of course, the top companies in particular have a pioneering role and a large responsibility, so the decline in CO2 emissions is basically good news.”

The analysis also looks at a further category of indirect emissions: those that cannot be directly attributed to the groups, as they are generated at upstream and downstream stages of the value chain.

These include areas such as the supply chain, transport, product use and disposal.

If these are included, the DAX companies account for emissions of just under 4.1 billion tons — 19% more than in the previous year.

According to EY, the increase is primarily due to the implementation of the new reporting standards and not to an actual increase in emissions.