Tim Wheatcroft

How to develop a sustainable travel policy

By October 25, 2024No Comments

Although business travel stopped almost entirely during COVID, its return far surpassed projections, and is now close to – or even above pre-pandemic levels. As such, it’s no longer possible to simply look at the past few years’ travel volumes and use that as a benchmark for future emissions. Organisations need to rethink travel to align with ESG goals. Most companies, however, lack a comprehensive strategy for reducing these emissions, despite the availability of tools and frameworks to support sustainability efforts.

Becoming more sustainable doesn’t need to be an all-or-nothing mentality, and unless a business has a dedicated resource leading these efforts, attempting to do everything at once can lead to paralysis, due to the overwhelming task faced. A phased approach helps to maximise adoption by travellers by easing in changes, and allows companies to implement changes and improvements gradually while expanding their efforts as the programme matures.

Companies should first establish a carbon baseline by analysing past trip data (remembering to factor in any COVID-based reductions), which helps identify areas for improvement and set realistic targets. Tracking progress over time enables organisations to refine their strategies and communicate success to stakeholders.

Many travel management companies and booking platforms offer tools to calculate the carbon footprint of each trip. This not only enables planners to make more educated decisions when planning their travel, but also enables effective tracking of emissions for ESG reporting and analysis.

Here are four key components of an effective sustainable travel policy:

  1. Avoid: Reduce the Need for Travel

Minimising travel is the first step toward sustainability. Many organisations discovered during the pandemic that virtual meetings, remote collaboration tools, and online conferences can replace much of the in-person interaction that previously required travel. Encouraging employees to assess whether a trip is necessary before booking can help reduce travel volumes without negatively impacting business outcomes. For some, business travel can be seen as a perk, so changing this mentality is also an important consideration.

  1. Electrify: Shift to Low-Carbon Transport

When travel is unavoidable, choosing low-carbon transport options can reduce emissions. Electric vehicles and high-speed trains are more environmentally friendly than traditional flights or rental cars powered by fossil fuels. Europe, Asia, and parts of the United States have developed extensive rail networks, making train travel a viable alternative to flying. Trains offer energy efficiency and allow employees to work productively during their journey. In many instances for shorter journeys, railway stations’ city-centre locations compared to airports can make the overall point-to-point travel time difference minimal.

  1. Decarbonise: Improve the Efficiency of Traditional Travel

Not all travel can be replaced by low-carbon alternatives. In these cases, improving the efficiency of traditional travel modes is crucial. Direct flights, which consume less fuel than those with layovers, are a better option for minimising emissions. Businesses should also explore newer, more fuel-efficient aircraft when booking and consider the use of sustainable aviation fuel (SAF), which reduces carbon emissions by up to 80%. Although SAF is currently scarce and costly, it offers long-term potential for reducing aviation-related emissions.

  1. Offset: Mitigate Unavoidable Emissions

For emissions that cannot be avoided, carbon offset programs provide a way to mitigate environmental impacts. Companies can invest in projects that reduce emissions elsewhere, such as reforestation or renewable energy initiatives. While carbon offsets are useful, they should be considered a last resort. Reducing emissions directly is a more proactive and effective approach.

Communicating the Importance of Sustainable Travel

Achieving employee buy-in is one of the biggest challenges in implementing a sustainable travel policy. Many employees see business travel as a perk, enjoying loyalty rewards and upgrades. Communicating the rationale behind the policy is critical. Employees need to understand why reducing travel is important and how it fits into the company’s broader sustainability goals.

Organisations can encourage participation by offering incentives or gamifying sustainable travel practices. For example, rewards for choosing more eco-friendly travel options or reducing travel volumes can motivate employees to embrace the policy. Ensuring fairness across the organisation is also key; if certain executives continue to travel freely while others face restrictions, employee morale could suffer.

Long-Term Benefits of a Sustainable Travel Policy

In addition to enhancing ESG metrics, a sustainable travel policy can yield financial benefits. Reducing the frequency of business travel can lead to cost savings in flights, accommodations, and other travel-related expenses. Employees may also appreciate fewer travel demands, resulting in improved work-life balance and increased productivity.

Sustainable travel policies can boost an organisation’s reputation, showcasing a commitment to environmental responsibility. This aligns with the values of younger employees and customers who prioritise sustainability, improving the company’s ability to attract and retain talent while fostering loyalty among consumers and investors.

Taking the First Steps

Developing a sustainable travel policy requires thoughtful planning, but every step toward reducing emissions counts. Organisations that adopt sustainable travel practices will not only improve their ESG metrics but also position themselves as leaders in the transition to a more sustainable future. By focusing on reducing unnecessary travel, promoting low-carbon alternatives, and tracking emissions, companies can make a meaningful impact on their environmental footprint.

A well-implemented travel policy will benefit both the environment and the organisation, proving that sustainability and business success are not mutually exclusive. The path may be challenging, but the rewards—both in terms of ESG performance and financial savings—are well worth the effort.

If you’d like to begin thinking about your own ESG strategy the ESG Foundation’s Reporting App is free to use and should help you on your way: https://reportingapp.esgfoundation.org/login/?redirect_to=https%3A%2F%2Freportingapp.esgfoundation.org%2F