An increasing number of corporations have committed to net zero, with over 7,000 companies globally making the pledge to set carbon reduction targets via the Science Based Targets initiative (SBTi).
When pursuing net-zero emissions, a considerable portion of a company’s efforts can revolve around tackling greenhouse gas emissions from business travel, with emissions from air travel often a challenging component.
Creating a sustainable travel policy can help manage and mitigate emissions associated with the travel program. Below are some strategies to help build a business travel policy so sustainability can be incorporated into the corporate travel program.
Track and report
Calculate your travel program’s carbon footprint.
Measuring carbon emissions linked to a travel program is an essential first step in crafting a sustainable corporate travel policy, helping you to establish a baseline and pinpoint the program’s top sources of CO2. Data analytics and booking tools featuring carbon metrics that adhere to industry-accepted methodologies can help you accurately monitor and report emissions for your air, rail, car, and hotel.
Influence choice
Let travellers fly direct whenever possible.
Considering that 25% of a flight’s total CO2 emissions happen during takeoff and landing, it’s better to take direct flights whenever it’s an option with your preferred suppliers. Sometimes, this results in a higher airfare than a connecting flight, but often, flying direct can be the more cost-effective option. Encouraging travellers to take nonstop flights can also increase their satisfaction – a sign that the company prioritises their well-being.
Encourage train travel for shorter distances.
Introducing a policy that requires travellers to opt for trains over planes for shorter distances can have a positive impact. A journey from London to Paris emits about .01 metric tons of carbon dioxide equivalent (MTCO2e) per passenger by train and .06 MTCO2e by airplane for a passenger in an economy seat. This means opting for a train can cut emissions by more than 80% per passenger.
Amazingly, the train journey in this example is only about an hour longer. Even when a train trip takes a couple of hours longer, the door-to-door trip can sometimes be faster by rail when you factor in the time it takes to reach the airport and go through security.
Promote eco-friendly ground options.
Establishing sustainable ground transportation policies is integral to an organisation’s sustainability goals. You can begin by encouraging travellers to share taxi rides to and from the airport when travelling together and taking public transportation when feasible.
For travellers who must rely on a rental car to get around, electric vehicles (EVs) are a much greener transportation option than gasoline-fueled cars. Over the course of its life, a new gasoline car will produce an average of 410 grams of carbon dioxide per mile. A new electric car will generate only 110 grams – equating to nearly 75% fewer carbon emissions.
Encourage travellers to fly on newer aircraft.
Airlines have made significant strides in terms of fuel efficiency. A latest-generation aircraft is about 15% to 20% more fuel-efficient than the previous generation. This trend is expected to continue with the introduction of even more fuel-efficient engines, lighter materials, and improved aerodynamics in upcoming developments. Thus, encouraging travellers to opt for newer aircraft whenever possible can help address the environmental footprint of your program – and can often be a more comfortable flight experience for them. Your TMC’s booking tool can help travellers easily spot the type of aircraft they’re booking and find flights with lower emissions.
Make travellers aware of the environmental impact of their choices.
Travellers may not realise how small changes like the ones mentioned above can add up, but a booking tool with carbon emissions data can help enlighten them. When they see consistent travel emissions details in booking search results, itineraries, and the travel app for previous and upcoming trips, they’ll have a greater awareness of their carbon footprint and be motivated to make more sustainable decisions. Making more sustainable choices also becomes easier with a booking tool that empowers travellers to filter flights by carbon emissions and seamlessly identify hotels adhering to the company’s ESG standards.
Procure green
Partner with suppliers with a vigorous sustainability program.
For many companies, Scope 3 emissions (i.e., indirect emissions that occur in the value chain) account for more than 70% of their carbon footprint. That’s why it’s critical to partner with travel providers with their own sustainability programs. Embed sustainability into your procurement processes with both qualitative and quantitative criteria.
When procuring new suppliers, familiarise yourself with their sustainability standards. For instance, when evaluating airlines, make sure they’re using newer aircrafts and if they are investing in sustainable aviation fuel (SAF). When it comes to hotels, seek out those that have an environmental certification from a recognised program, such as the Global Sustainable Tourism Council. Typically, properties with these credentials invest in energy, water, and waste management with features that reduce the environmental impact of your stay.
Put a price on carbon and create a sustainability fund.
Assigning carbon fees to the emissions associated with an air program can be an effective sustainability strategy for a couple of reasons. First, putting a price on carbon can make travellers and travel managers more aware of the program’s environmental impact, incentivising them to make greener choices. Second, companies can use the funds they collect toward other sustainability initiatives, such as investing in sustainable aviation fuel or electric vehicles.
Compensate carbon
Compensate for the travel program’s carbon emissions.
After taking the steps outlined above to reduce the emissions associated with travel, you may also wish to invest in carbon compensation for residual emissions from your travel program. The SBTi recommends that companies go above and beyond their emission reduction targets to invest in beyond value chain mitigation. Projects verified according to independently recognised carbon standards often report on wider ecosystem, biodiversity, and socioeconomic benefits, contributing to the advancement of the United Nation Sustainable Development Goals. While carbon compensation is often part of corporate sustainability strategies, it cannot replace decarbonisation efforts first and foremost.
Drive towards net zero
Invest in SAF.
SAF is an alternative to fossil-based jet fuel that can reduce emissions by up to 80% on a lifecycle basis compared with conventional aviation fuel. It remains one of the most promising options for the decarbonisation of aviation, especially medium- and long-haul travel. Presently, SAF represents less than 1% of jet fuel globally. For SAF volumes to meaningfully increase, investment must be directed toward supply and demand, unlocking new technologies, production pathways, and sustainable feedstocks.
By employing a book-and-claim system, companies can invest in SAF and reap the benefits, even if SAF is not available at their departure airport.
Get help crafting and implementing a sustainable travel policy.
Building a sustainable travel policy can become an overwhelming endeavor when tackled solo. Therefore, you may want to enlist the support of your travel management company.
Our Amex GBT Consulting team works one-on-one with clients to craft policies that fit their corporate culture and work to help achieve their emissions reduction goals. We can then assist with the transformation process, from building a business case and helping to secure stakeholder buy-in to leading change management initiatives so travellers can embrace more sustainable travel practices.
Interested in learning more? Email us!
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