Almost half of 217 global firms cut their business travel carbon emissions by at least 50% between 2019 and 2022, analysis published today (December 18) found, as corporate air travel returned at a much slower pace since the pandemic than leisure flights
The new survey highlights a shift in corporate behaviour as many businesses continue to curtail air travel in favour of more sustainable alternatives, according to Reuters. Major companies such as SAP, PwC, and Lloyd’s Banking Group stand out for slashing corporate air travel emissions by over 75 per cent, signalling a concerted effort to prioritise environmental concerns.
Despite a global rebound, business travel has been slow to return to 2019 levels, with many corporate clients turning to video conferencing or rail trips rather than flying. Global business travel firms say this trend could hit corporate relationships but environmentalists say it represents an important step in minimising overall emissions.
The Travel Smart Emissions Tracker comes at a timely moment, coinciding with the end of 2023 and the COP28 global summit. It says: “The year has been marked by increasingly intense impacts of climate change, affecting ever greater numbers of ecosystems and people around the globe. Experts are now urgently calling for faster, deeper cuts in emissions to keep the planet within safe limits. 2023 also saw continued efforts to reduce oil use, in order to improve energy security while conflicts affect supply, and to lower costs for citizens amidst high inflationary pressures.”
Advocacy group Transport and Environment has said that a 50% reduction in business travel from pre-COVID levels is needed this decade to cap global warming at 1.5 degrees Celsius.
Major companies such as tech firm SAP, accounting firm PwC and Lloyd’s Banking Group all reduced their corporate air travel emissions by more than 75% compared with 2019, the Travel Smart Emissions Tracker analysis concluded.
“The way forward is collaboration with more online meetings, more travel by train and less by plane,” Denise Auclair, Travel Smart campaign manager, said in a statement.
In an effort to cut costs and emissions, some businesses have chosen not to return to the same levels of business travel as before the emergence of COVID-19.
But whether business travel carbon emissions will stay lower is unclear. A joint survey by American Express Global Business Travel (Amex GBT) and the Harvard Business Review released in September said 84% of businesses believe in-person trips still bring “tangible business value”.
The Travel Smart study found 21 of the companies it surveyed exceeded their levels of flying compared with 2019, with L3Harris, Boston Scientific and Marriott International increasing their carbon emissions by more than 69% compared with 2019.
“It reflects the company’s Carbon Disclosure Project (CDP) disclosure for business travel prior to Boston Scientific receiving approval of its net-zero, science-based scopes 1, 2 and 3 targets,” a spokesperson told Reuters.
Airlines say the corporate travel decline could harm their business and economic growth, but robust post-pandemic consumer demand for flying has tempered those concerns.
Business trips generated as much as half of passenger revenue at U.S. airlines before the pandemic, industry group Airlines for America estimated. This helped airlines sell high-margin premium seats and fill weekday flights.
In Europe, airlines like Air France have shifted their strategies, with others trying to make up for the business drop by selling more premium trips to leisure travellers.
