The efficiency of airplanes has steadily improved. Today’s flights emit 50% fewer carbon emissions compared to those in 1990. This is a fact often overlooked when discussing the aviation industry. Instead, air travel is commonly associated with high CO2 emissions. Since the term “flight shame” was coined in 2017, the industry has carried a negative reputation.

This negative perception is intensified by new regulations, such as the Corporate Sustainability Reporting Directive (CSRD). More and more companies are required to transparently report their sustainability performance according to a unified EU standard. As a result, everything that contributes to CO2 emissions, including business travel, is under review.

Changing views on corporate travel threaten the industry

Corporate travel is increasingly being viewed as unreasonable, especially given the shift to remote work. Many meetings and negotiations can be conducted remotely, leading organisations to question the necessity of frequent business trips.

Consequently, many companies have significantly reduced their travel budgets, driven by both environmental concerns and cost savings. This shift poses a considerable challenge to the business travel industry. If the sector does not act decisively to address these environmental concerns, businesses may continue to scale back travel, leading to further declines in demand and revenue.

Leading proactively with climate-focused initiatives

To regain a positive reputation in a time when sustainability is linked to company success, the business travel sector must lead with clear and impactful climate-focused initiatives to reduce their impact.

One of the most effective ways to minimise the environmental footprint of business travel is by partnering with airlines that are adopting sustainable aviation fuels (SAFs) and engaging in carbon reduction programs.

Offering climate compensation as a standard option in business travel packages will also allow corporate clients to meet their sustainability goals while still maintaining essential travel.

Another key step is to proactively optimise travel itineraries to eliminate unnecessary trips. Travel management companies can leverage data analytics and technology to help businesses consolidate travel plans and choose lower-carbon alternatives such as trains or direct flights, which emit fewer carbon emissions. This could soon be a necessary step.

In France, a ban on short domestic flights went into effect last year, where there is a direct rail connection of less than two and a half hours. Spain now plans to follow suit and announced at the beginning of the year its intention to ban some short domestic flights based on a similar principle as France’s carbon emission reduction plan.

To improve its reputation, the business travel industry will have to start implementing similar efforts now. Another opportunity is to raise awareness about integrating more sustainable travel practices into corporate policies and employee nudging mechanisms, such as carbon budgets and incentives.

Addressing SBTi Confusion

More so, travel management companies could become a trusted partner solving the challenge around SBTi (Science Based Targets initiative) confusion that many businesses are facing. Companies often struggle with how to report Scope 3 emissions, due to challenges in data collection and differing requirements across industries. For example, it is unclear how to account for business travel, which falls under Scope 3 emissions, and which reduction efforts, like carbon reduction programs, are accepted.

This could be a chance for travel management companies to extend their services and not only proactively reduce carbon emissions but also take on the responsibility of measuring the remaining ones correctly.

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