Business Travel: Understanding and Reducing your Emissions

Introduction

As the global community faces the undeniable impacts of climate change, businesses are increasingly taking responsibility for their carbon footprints. Achieving net-zero emissions is not just a governmental goal but a corporate priority. Companies are realising that reducing greenhouse gas (GHG) emissions across their entire value chain is crucial in meeting these objectives.

The Climate Crisis and Corporate Responsibility

The climate crisis has highlighted the importance of reducing carbon emissions, the primary driver of global warming. Greenhouse gases, including carbon dioxide, methane, and nitrous oxide, trap heat in the atmosphere, leading to rising global temperatures, more extreme weather events, and disruption of natural ecosystems. In response, businesses are being called upon to not only reduce their direct emissions but also manage the emissions that occur throughout their supply chains and operational practices.

Categorising Carbon Emissions: The Scope Framework

To help businesses identify and address their emissions, the globally recognised Greenhouse Gas Protocol divides emissions into three categories or "scopes":

• Scope 1: Direct emissions from company-owned and controlled resources (e.g., fuel combustion in company vehicles).

• Scope 2: Indirect emissions from the generation of purchased electricity, heating, and cooling consumed by the reporting company.

• Scope 3: All other indirect emissions that occur in a company’s value chain. This includes both upstream and downstream emissions, such as those from business travel, waste disposal, and the use of sold products.

Achieving net-zero emissions is not just a governmental goal but a corporate priority.

What Are Business Travel Emissions?

Business travel emissions are a significant part of Scope 3 emissions, covering the carbon footprint associated with corporate travel activities. This includes emissions from:

• Air Travel: The most carbon-intensive form of business travel.

• Road Travel: Including car rentals, taxis, and employee-owned vehicle use for business purposes.

• Rail Travel: A lower-carbon alternative to air and road travel, particularly effective for reducing emissions on medium and long-distance journeys.

• Hotel Stays: Indirect emissions from energy consumption in hotels.

As businesses strive to reduce their carbon footprints, understanding and managing these emissions is essential.

Measuring Business Travel Emissions

Accurately measuring emissions from business travel can be challenging, but it is critical for comprehensive GHG reporting. Here’s how businesses can start:

1. Data Collection: The first step in measuring business travel emissions is collecting accurate travel data. This includes distances travelled, mode of transportation, and hotel stays. Companies typically gather this information from corporate travel agencies, employee expense reports, and travel booking systems.

2. Emission Factors: Once travel data is collected, businesses can calculate emissions by applying emission factors. Emission factors convert travel data (e.g., miles flown or driven) into CO2 equivalents. These factors can be sourced from recognised bodies such as the UK’s Department for Environment, Food & Rural Affairs (DEFRA) or the International Civil Aviation Organisation (ICAO).

3. Calculation Tools: There are various tools and calculators available to help businesses calculate their emissions from business travel. For example, DEFRA provides a comprehensive GHG reporting conversion factor tool that businesses can use to estimate emissions based on travel data.

Reducing Business Travel Emissions

Measuring emissions is only the first step. Businesses must also take action to reduce their business travel emissions. Here are some strategies to consider:

1. Virtual Meetings: Virtual meetings are encouraged wherever possible to eliminate unnecessary travel, reducing both air and road travel emissions.

2. Active Travel and Public Transport: When travel is necessary prioritise active travel (e.g., walking, wheeling or cycling), or public transportation (e.g., trains, buses, or trams) when possible for a lower environmental impact.

3. Private Vehicles: If public transport is not an option, use an electric vehicle or hybrid vehicle, avoiding single-occupancy trips whenever possible.

4. Optimised Flights: When air travel is necessary, choose economy class, opt for direct flights to reduce emissions from take-offs and landings, and prioritise airlines using modern, fuel-efficient aircraft.

5. Carbon Offsetting: For unavoidable travel, invest in accredited carbon offset schemes to help mitigate emissions through projects such as reforestation or renewable energy initiatives.

By following these strategies, businesses can actively reduce their travel-related emissions and support a more sustainable future. Bizumi has developed a Sustainable Travel Policy template, complete with a travel hierarchy that reflects the above recommendations. For more information, please follow this link.

Conclusion

Tackling Scope 3 emissions, particularly from business travel, is an important step for any company aiming to achieve net-zero emissions. By understanding, measuring, and reducing these emissions, businesses can play a significant role in combating climate change. Moreover, such efforts contribute to operational efficiency and can enhance a company’s reputation as a sustainability leader.

As expectations from consumers, regulators, and investors intensify, managing Scope 3 emissions from business travel is now a critical requirement for businesses committed to achieving Net Zero.