Berlin, May 22, 2025 – YPOG has provided legal advice to Berlin-based startup forward earth on the structuring and implementation of a modern employee participation program. The climate tech company offers an online platform that enables businesses to automatically collect and manage their ESG data in compliance with EU regulations.
forward earth’s participation model allows employees to gain real, indirect ownership of the company’s equity. This approach offers a sustainable alternative to traditional virtual stock option plans (VSOPs). A key advantage lies in the application of Section 19a of the German Income Tax Act (EStG), which was specifically designed to support young companies. Under this regulation, startups like forward earth can grant equity to employees without triggering immediate taxation. Taxation is deferred until a later event, such as the sale of shares. This model enables forward earth to foster long-term employee retention and offer meaningful participation in the company’s economic success — under fair and tax-advantaged conditions.
The founders of forward earth aim to build one of Europe’s leading and most successful tech companies. Their ambition is to make a significant impact on both the economy and society. To achieve this, they are focused on building a team in which every member feels empowered and plays a clear role. Granting real equity to employees is a core part of their strategy: it is intended to strengthen ownership, boost motivation, and lay the foundation for sustainable, collectively driven company growth.
Team
Dr. Sebastian Schwarz (Lead, Tax), Partner, Berlin
Dr. Jannik Zerbst (Funds), Associate, Hamburg
Ninetta Kleindienst (Tax), Assoicate, Munich
About forward earth
forward earth is a climate tech startup focused on sustainable transformation and decarbonization. The company develops embedded software that enables partners to measure and reduce CO₂ emissions in products and supply chains while ensuring compliance with regulatory requirements. Using AI-powered solutions, forward earth helps businesses manage emissions efficiently and optimize their processes. The company’s goal is to contribute to the global reduction of greenhouse gases and accelerate the transition to a climate-resilient economy.
For more information, visit: https://www.forward-earth.com/
About us
YPOG stands for You + Partners of Gamechangers. As a leading law and tax firm, YPOG supports founders, investors, companies and funds in Germany and internationally in bringing visionary ideas to life in the tech ecosystem and dynamic future markets.
YPOG advises on the structuring of venture capital and private equity funds, financing rounds and complex transactions, as well as on regulatory and tax matters relating to digital assets and financial innovation. As a strategic partner, YPOG develops practical solutions of the highest legal standard.
The firm combines legal and tax expertise with legal tech, digital workflows and AI-based systems to provide efficient and scalable advice.
YPOG and its professionals are regularly recognised by JUVE, Chambers and Partners, The Legal 500, Best Lawyers and Leaders League. More than 380 lawyers, tax advisers, tax specialists, one notary and business professionals work for YPOG across its offices in Berlin, Cologne, Hamburg and Munich.
Further information: www.ypog.law/en/ and www.linkedin.com/company/ypog