IntegrityNext introduces platform for CO₂ border balancing system (CBAM)
Munich, April 09, 2024 - IntegrityNext, provider of the world's leading cloud solution for supply chain sustainability management, introduces a platform for the EU's Carbon Border Adjustment Mechanism (CBAM). The solution is currently unique on the market and helps companies to collect and analyze CBAM-relevant data, calculate costs and create reports and thus ultimately actively contribute to the EU's Fit-for-55 climate policy plan.
CBAM affects all companies that import CO2-intensive goods from other EU countries. Until now, companies have had to report on the emissions of CBAM-relevant imports on a quarterly basis. From 2026, the reporting obligation will be supplemented by the purchase of certificates to offset emissions. In this way, the EU wants to prevent emissions from being shifted to other EU countries for cost reasons. The regulation is also intended to prevent the relocation of local production facilities. The CO2 border adjustment system has been in force since October 2023 and is part of the European Union's Fit for 55 plan, which is driving forward climate policy in the EU. The regulation covers steel and iron, aluminium, fertilizers, electricity, hydrogen and cement.
Automated data collection, cost calculation and reporting
IntegrityNext has now developed a solution that guides companies through the entire CBAM process - from data collection to reporting. Companies upload their customs data to the platform, which then automatically identifies which products are CBAM-relevant. In the next step, the suppliers concerned complete a CBAM assessment, which they use to provide the relevant product and emissions data. On this basis, the platform calculates how many certificates will be required in the future and creates an XML report, which in turn complies with the requirements of the EU authorities.
The data flows together in a clear dashboard that can be individually filtered, for example by quarter, CN code, import date or supplier. Users can set their own special filters and customize or specify the product information on the platform. The platform allows companies to monitor and manage their CBAM requirements. The dashboard provides an overview of developments over time, the CBAM status of products and the budget that needs to be allocated for emissions offsetting. This enables companies not only to plan their costs in advance, but also to reduce them: by using primary data, companies only pay for as many certificates as are actually needed to manufacture the products.
The platform takes over cumbersome manual processes, calculates costs in real time and creates CBAM-compliant XML reports that can be uploaded directly to the EU authorities' portal.
Exchange with customers for strong solutions
IntegrityNext developed the solution in close cooperation with leading companies such as the Hilti Group. Nick Heine, co-founder and CCO (Chief Customer Officer) of IntegrityNext, summarizes the collaboration: "We attach great importance to understanding the needs of our customers and incorporating their expertise, experience and perspectives into the development of our solutions. Thanks in part to the open exchange with Hilti, we were able to build a strong platform that is also easy to use. CBAM is a further step towards an EU-wide sustainability strategy and our solution helps companies to implement the requirements with as little additional effort as possible. This enables these companies to become more sustainable and at the same time remain competitive on a global scale."
On the customer side, Brian Sieben, Head of Sourcing Excellence at the Hilti Group, describes the importance of the new platform: "CBAM also presents our industry with regulatory challenges. At Hilti, we need efficient, cross-company solutions that support us in achieving our comprehensive sustainability goals. We are pleased about the close cooperation with IntegrityNext, which significantly reduces our internal effort. This allows us to seamlessly integrate CBAM into our sustainability management, benefit from standardized methods and also gain expertise for the continuous training of our global supply chain."
About IntegrityNext
As a global leader in supply chain sustainability software, IntegrityNext stands at the forefront of corporate sustainability and compliance. Since 2016, businesses have trusted IntegrityNext to simplify ESG compliance, reduce risks, and address critical challenges like due diligence, decarbonization, and sustainability reporting. With over 500 customers and 2 million suppliers across 190 countries, IntegrityNext is transforming supply chains into engines of transparency and sustainable growth.
