In recent years, and increasingly with new European regulations, preparing an annual carbon footprint report (CO₂-Balance / CO₂-Footprint / Greenhouse Gas Balance) has become mandatory for a number of companies, especially:
Who is required to prepare an annual CO₂-Balance? According to the EU Corporate Sustainability Reporting Directive (CSRD):
Companies with more than 250 employees → Yes
Annual revenue > €40 million → Yes
Total assets > €20 million → Yes
Publicly listed companies → Yes, automatically
Small/medium enterprises (SMEs) below these thresholds → No, currently not required
The rules apply gradually between 2024–2026, depending on company size and type.
What does the CO₂-Balance report include? Companies must disclose their emissions according to a three-scope system (Scopes 1–3):
Scope 1: Direct emissions (e.g., from boilers, company-owned vehicles)
Scope 2: Indirect emissions (e.g., from electricity or heating consumption)
Scope 3: Emissions from the supply chain (purchases, travel, waste)
Scope 3 is the most challenging and requires cooperation from suppliers and customers.
Where are the reports submitted?
The report is integrated into the company’s annual sustainability report
It is submitted via the European ESAP system (European Single Access Point)
It is reviewed by a certified sustainability auditor (not a traditional tax advisor)
Are there penalties? Yes. Failure or manipulation of sustainability/carbon reports can lead to:
Late submission → Administrative fines up to €50,000
False or incomplete information → Regulatory sanctions or loss of market trust
How to practically start preparing a CO₂-Balance?
Choose a standard such as: GHG Protocol, ISO 14064, or DNK/ESRS balances (required under CSRD)
Collect data: energy consumption, fuel, invoices, kilometers traveled, etc.
Use a tool or consultant: Planetly, ClimatePartner, Enviria, SAP EHS
Analyze results and set emission reduction targets
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