Written by Amélie Chanda, Program Manager, Best Workplaces for Commuters
The corporate world is facing a crucial turning point: to help limit global warming to 1.5 degrees Celsius, businesses must rethink their approach to travel. Research shows that travel is the leading contributor of emissions, making up 79% of total emissions, yet many companies have not taken meaningful steps to address this issue.
What gets measured gets managed
Business travel is a leading generator of emissions but it’s often not measured. While pointA’s work is about developing strategies to minimize the impact of employee commuting, a lesser-known part of our expertise is to provide guidance to our clients on reducing business travel emissions. Both employee commuting and business travel measurement fall into the GHG Protocol’s Scope 3 emissions (categories 6 and 7):
- Category 6 (Business Travel): These emissions are generated from business travel—flights, car rentals, hotel stays, and other forms of transportation taken for work-related purposes. The frequency of travel, choice of transportation, and the ability to replace physical travel with virtual meetings are all factors that influence these emissions.
- Category 7 (Employee Commuting): Commuting emissions arising from daily transportation to and from work. Strategies in this category often focus on promoting public transportation, carpooling, cycling, or remote work options to reduce the carbon footprint.
While many businesses measure and report their emissions using the GHG Protocol, the world’s leading accounting standard on corporate emissions, only the first two scopes are mandatory and therefore Scope 3 is often not reported., Thus, Scope 3 emissions are often referred to as “hidden” emissions because they occur indirectly, yet they can account for a sizable portion of a company’s overall carbon footprint.
Strategies for Reducing Scope 3 Category 6 Emissions
While the push for sustainability is crucial, it is important to acknowledge the value that business travel brings. Building strong relationships, gaining a deep understanding of the cultures and places where you conduct business, and fostering in-person connections are all essential components of successful corporate operations. These experiences cannot always be replicated virtually, and they play a vital role in the growth and sustainability of businesses. However, it is possible to balance these benefits with a commitment to reducing carbon emissions by adopting more sustainable travel practices. The annual SAP Concur global business travel survey indicates that 88% of business travelers are willing to take steps to reduce their environmental impact while traveling for business.
Here are some ways to reduce business travel emissions:
- Optimizing Travel Planning: Implementing a pre-trip approval system that evaluates the necessity of travel can help eliminate non-essential trips. This process might involve considering alternative ways to achieve business objectives, such as virtual meetings. If in-person meetings are required, consolidating meetings and events into fewer trips can reduce the number of flights and car rentals required, which offers cost savings, emission reduction and lowers down time.
- Promoting No or Low Emissions Transportation Options: Encourage employees to use trains, buses, or other low-emission public transport options instead of flying or driving. For shorter distances, trains are often a viable and more sustainable alternative to air travel and, in some cases, it may be more economical too. For destinations that require driving, businesses can favor carpooling or using electric vehicles (EVs). This can be supported by offering EV rentals or partnerships with car-sharing services that focus on sustainability.
- Encouraging Virtual Meetings to Replace Physical Travel: The rise of video conferencing, collaborative platforms, and remote work tools has made it easier than ever to replace physical meetings with virtual ones. Supporting this shift through training and clear communication about the environmental benefits can lead to widespread adoption.
- Implementing Travel Policies That Prioritize Sustainability: Develop and enforce travel policies that prioritize sustainability, such as selecting airlines with lower emissions, choosing direct flights, and avoiding one-day trips whenever possible. Introducing carbon budgets for different departments can encourage teams to think critically about their travel needs. By setting limits on travel-related emissions, businesses can drive more thoughtful decision-making and reduce overall travel. If travel must occur, purchasing carbon offsets for flights should be factored into travel budgets.
To effectively reduce emissions, businesses need a clear understanding of their current impact. Developing a Greenhouse Gas (GHG) Inventory that includes Scope 3 emissions, such as those from business travel, is a critical first step. This baseline allows organizations to identify key areas for reduction, track progress over time, and implement targeted policies that align with their sustainability goals. By quantifying these emissions, companies can make informed decisions that not only reduce their carbon footprint but also support long-term strategic planning.
At pointA, we are experts in sustainable transportation and are here to support you in developing and executing effective strategies to meet your sustainability goals. We invite you to set up a call with us to explore how we can help your organization make meaningful progress in reducing business travel emissions.
Emissions reduction is good for business
Reducing business travel emissions is not just about doing the right thing for the environment—it is also a smart business move. By prioritizing sustainability in your travel policies, you align your company with the values of today’s workforce, enhance your corporate reputation, and can even achieve significant cost savings. This approach not only contributes to a healthier planet but also strengthens your business’s resilience and future success. At pointA, we are here to help you navigate this journey.
