The Environmental Impact of Business Travel
Business travel contributes heavily to greenhouse gas emissions. Air travel is a significant source of global emissions and is predicted to account for 12 to 27 per cent of 2050 global emissions. Air travel emissions are increasing 70 per cent faster than initially expected by the Intergovernmental Panel on Climate Change (IPCC). It is estimated that business travel represents about 15 to 20 per cent of that global travel. Not only does excessive travel affect the environment but also increases carbon emissions. Furthermore, hotel stays, rental vehicles, and meals on the go all add to resource consumption, while single-use plastics and disposable items at airports, hotels, and meeting spaces exacerbate waste issues.
The 2024 BCD survey also highlights several specific strategies that organisations are implementing to promote sustainable travel. Around 59% of companies reporting reduced travel budgets, cost control is critical. Popular measures include encouraging virtual meetings, optimizing trip lengths, and limiting luxury travel perks. Despite these constraints, there is recognition that well-structured travel policies can enhance talent retention and satisfaction.
Being Mindful
With sustainability now a critical consideration, business travellers and companies need to adopt mindful travel practices. Implementing more strategic travel planning and opting for greener options can reduce the negative impact of travel on the environment.
Companies committed to sustainability enhance their brand image, appealing to eco-conscious clients and partners with specific eco-conscious campaigns. Increasingly, organizations are choosing to participate in carbon offset programs that fund projects like reforestation, renewable energy, or conservation to offset the carbon footprint of their travel.
Beyond individual travel choices, travel managers are also rethinking how they organise meetings. Sustainable group activities, focusing on low-impact or eco-friendly experiences, are increasingly part of the meeting agenda.
In an industry first, BCD has developed a comprehensive sustainability solution for corporate travel programs. This innovation, developed with climate-tech partner SQUAKE and experts at global corporate travel consultancy Advito, helps businesses set sustainability goals, manage carbon emissions, and encourage greener travel choices. Key features include automated carbon tax applications, Sustainable Aviation Fuel (SAF) procurement, and compliance tools for regulations like the Corporate Sustainability Reporting Directive (CSRD). Piloted with Siemens, the solution will be available in early 2025, offering consistent sustainability guidance and reporting across booking platforms. It aims to simplify integrating sustainability into corporate travel processes and reduce travel-related emissions.
The future of corporate travel is increasingly dependent on innovative initiatives that prioritise sustainability while ensuring operational efficiency. A notable example is Microsoft’s collaboration with Advito, which centred around limiting the growth of their Scope 3 emissions and aligning their travel team with this objective. Advito’s Sustainable Collaboration team analysed Microsoft’s travel footprint to identify opportunities to transition from air to rail travel, along with quantifying the potential savings in carbon emissions. The analysis uncovered numerous opportunities for Microsoft to make significant changes; specifically, by shifting 50% of travel from air to rail on viable routes, the company could achieve a reduction of approximately 4,438 tons of CO2 emissions annually.
Another pioneer in building a sustainable travel program was global fintech firm Finastra, who sought reduce internal travel, enhance employee productivity, and optimise their program savings. In early 2019, Finastra announced an ambitious sustainability initiative to achieve carbon neutrality by 2030. With the guidance of experts from Advito, the Finastra Travel Team worked to reduce internal travel from 43% at the beginning of the campaign to just 9.8% in just four months, reducing travel spend by 50% in the process.
BCD Travel and other industry leaders are expected to innovate further, encouraging the use of low-emission flights, promoting sustainable suppliers, integrating dynamic meeting location choices and encouraging the use of train travel over air where applicable. The rise of eco-certifications, regulations on sustainability, such as the EU’s CSRD, and ongoing research into sustainable travel technologies will likely make sustainable travel the norm in the corporate world.
While business travel is essential, it doesn’t have to come at the cost of our planet. Companies and travellers have a role to play in making more sustainable choices. By being mindful of travel impacts and embracing green practices, we can pave the way for a more sustainable, responsible future in business travel. Furthermore, sustainable travel is no longer a niche concern, but a growing priority for organisations worldwide. As more companies adopt these practices, the travel industry will likely witness a shift towards more sustainable and responsible travel solutions. For organisations still on the fence, adopting even a few of these initiatives could lead to substantial benefits for both the environment and the bottom line.
As businesses worldwide adapt to a new travel paradigm, the message is clear: sustainable travel is not just a responsibility—it’s an opportunity to lead.
