CBAM – Focus on your company’s carbon footprint

A new law has been in force since January 1, 2025, setting the course for greater sustainability in the corporate sector. This is CO₂ indicator-based compensation management, also known by the abbreviation CBAM.

It requires large companies with at least 1,000 employees to determine, document, and strategically optimize their CO₂ emissions. The aim is to create a comprehensive overview of the climate impact of economic activities and thus make a decisive contribution to meeting climate targets.

What is CBAM and why does it affect your company?

CBAM was introduced to dramatically increase transparency regarding CO₂ emissions in companies, especially among major economic players. These contribute significantly to national emissions.

The introduction of CBAM creates a standardized framework for recording, evaluating, and reporting company-related emissions data in a uniform manner.

Not only direct energy consumption is taken into account, but also indirect emissions along the entire value chain. This means that purchasing, production, logistics, and service providers are all scrutinized.

Important:
CBAM applies throughout the EU and only affects imports from non-EU countries (third countries). Suppliers within the EU are not affected, as they are already subject to EU emissions trading. The size of the company is irrelevant. Even smaller companies must comply with CBAM requirements if they import affected products from third countries into the EU.

The role of AI: automation meets sustainability

Thanks to modern technologies, implementing CBAM is now more efficient than ever. Artificial intelligence (AI) plays a central role in this, because it:

• analyzes large amounts of data in real time
• recognizes patterns in CO₂ emissions from different processes
• automatically assigns all activities to the correct product groups and
• provides transparent, reliable key figures for evaluation.

The result: Companies can record their emissions with minimal manual effort and make informed decisions for greater climate protection.

Precision instead of flat rates: ECLASS & UNSPSC as the key to accurate CO₂ determination

At the heart of CBAM is the NACI (National Activity Classification Index) categorization. This standard divides all economic activities into clearly defined product groups. Each product group is assigned specific emission factors, which enables a comparable assessment regardless of industry or company size.

While the CBAM model is based on categorization by product group, we at D&TS deliberately go one step further. Classification based solely on the NACI system is often too superficial in practice and does not provide the necessary level of detail to calculate truly accurate CO₂ values.

Instead, our AI solution automatically determines the appropriate ECLASS and UNSPSC classifications for your materials, components, and services at a much more granular level than NACI could ever achieve. This finely structured classification makes it possible to evaluate emissions in a targeted and traceable manner per item or product group. Both classification systems (ECLASS and UNSPSC) are fully supported by D&TS.

This is followed by a link to the NACI model in order to multiply emissions per activity class with specific quantity data. The result is a reliable overview of total CO₂ emissions based on real data, not blanket assumptions.

In summary:

• ECLASS/UNSPSC: ensure precise classification at product/material level
• NACI: used to calculate emissions (emission x quantity) per activity class

This combination enables us to create a reliable, audit-proof, and automated solution for CBAM-compliant CO₂ determination.

Let us work together to move from rough classification to precise CO₂ assessment. Use our contact form now to learn more about your individual solution.

Real-world example: CO₂ transparency in mechanical engineering

A mechanical engineering company with 1,200 employees produces precision parts for the international market. With the entry into force of CBAM, it became obliged to systematically determine its CO₂ value.

Thanks to an AI-based software solution from D&TS, all purchasing data, production processes, and transport information are recorded automatically.

This does not involve a purely blanket classification of the products and materials used in a granular manner. This high-resolution classification forms the basis for a precise assessment of CO₂ emissions.

Only then is the link to the NACI model established in order to calculate the emissions per activity class (emissions x quantity) based on the quantities determined. The result: a reliable and differentiated carbon footprint, for example for steel components, electronic components, or logistics services.

A central dashboard shows that particularly high emissions are generated by international suppliers and energy-intensive manufacturing processes. As a result, the company decides to select sustainable suppliers, modernize production with more efficient machines, and increase the share of renewable energies in its operations.

These measures not only reduce CO₂ emissions, they also strengthen the company´s image and lead to long-term cost savings.

Our offer: Your CBAM implementation with D&TS

For many companies, CBAM means additional work, but it also represents a great opportunity to position themselves for the future. D&TS accompanies you on this journey and offers you:

• Support with CO₂ data collection,
• AI-based classification of your product groups according to NACI,
• Setup of a central emissions dashboard and reporting.

Take advantage of our expertise and actively shape your sustainable transformation. Arrange a non-binding consultation now. Together with us, sustainability will become your competitive advantage!