Creating a metrics driven Sustainable Travel Program - How to get started !

Building a metrics driven sustainable travel program requires a multi tiered approach. This article will outline some?practical?steps to get started , across global markets.

Given that markets have different levels of maturity and regulatory / operating conditions, the article will try and present a phased approach depending on the environment available.

The actual impact of aviation and travel on global carbon footprint may be nearer 7-8% versus the claimed 3% impact - given the impact of direct emissions and radiative forcing. With the recovery of travel post Covid , we are today at Carbon Dioxide Emissions (CO2E) levels that are at parity with 2019 numbers. This has a direct impact on sustainability as a corporate goal. With the rise in airfares, travel budgets are already at 2019 levels though potentially the number of trips executed have dropped. It can also be reasonably expected that governments and regulators, may soon start imposing taxation and other deterrents to mitigate climate impact from travel.?

So what are the things that can be done today and in the near future to drive change & build structured sustainable business travel programs ??This article outlines a 4 step approach. Its important to get started now !!

A. Overall Corporate ESG & Travel strategy?

To get started , the travel team needs to work collaboratively with the corporate #ESG team and start defining a enterprise standard for #co2emissions , in the travel domain. Where there isn’t a ESG team incumbent , travel leaders can work towards taking a leadership position in defining standards and leading the discussion internally. Establishing a baseline standard will be the first step in moving towards a metric driven program.

The next step will be to fix a baseline year against which current and future emissions goals are measured. Determining the carbon footprint of the baseline year will be required and then a progressive target of annual reductions with related policy and governance measures.

B. Securing Budgets. Developing clear performance KPI’s

Building a sustainable travel program will require investments in #reporting , #analytics , #fulfilmentpractices and may potentially incur incremental costs, if sustainable choices have to be exercised.

Most corporate?travel buyers are interested in the domain but may actually not be taking constructive steps to drive change. This is largely because they have not been allocated budgets to drive a more carbon neutral program. ?

More importantly , there is no clear #KPI or incentive linked annual reviews structures for?procurement & operational leaders in travel , to make business travel more sustainable. Without budgets and clear KPI’s , current actions are simply scratching the surface.?

C. Start with your TMC & Preferred suppliers

Starting down the sustainability roadmap will start with having a Travel Management Company (TMC) that invests in reporting and offering capabilities to search / select sustainable choices. Most #TMC’s are simply unwilling to make an investment in improving their #carbonreporting , analytics and search / filter capabilities. Given the limited pressure on them from buyers, they don’t readily invest in integrating #API’s and products that can report carbon emissions.?

Worldwide , almost all Global Distribution Systems (GDS’s)?that form the backbone for content distributed by most TMC’s report carbon emissions of every flight based on #ICAO / #IATA standards, by sector & class of travel. This is a standard?capability built into the GDS engine. Most TMC’s don’t extract this feed from the #GDS and reflect this in?their point of sale (POS) systems or Self Booking Technology platforms ( SBT’s) . They certainly don’t feature this data in any client reporting. This can be the first and most elementary step in tracking CO2 emissions per flight used.

Depending on the market/s in which you operate , there are several carbon measurement solutions that can integrate with TMC’s systems, using #API’s or other mechanism. Admittedly these may come at a cost ….. Buyers will need to exert pressure on their incumbent TMC’s to invest in integrating these technologies and agree to bear a part of the cost, in this journey.

#Airlines , #Hotels and Car Rental providers generally have a lot of emission related data, available and related technology tools for reporting / analytics to enable client reporting. Pressure and demand from corporate buyers to get this feed routed through their TMC ’s into their monthly / quarterly reports will be an important first step.

D. Making it a reality !

Globally , across business travel programs , there is a small fraction that actually implement sustainability practices in the true sense. This is equally true of mature evolved markets like North America & Western Europe. Statistics show that even in these mature markets , less than 5% of corporate buyers implement a true Sustainable Travel Program (STP).?Why ??

a. Measuring carbon footprint - How to get started ??

As stated earlier , if you are located in a market that is not very mature , your simplest starting point is to ask your TMC to secure GDS data that tracks carbon emissions by sector / flight. This is generally available worldwide without a charge. Most TMC’s ignore this content / don’t enable visibility for the?consumer at POS and never report this data. The option to incrementally integrate technology partners that that track and report #CO2E , may exist to varying degrees , depending on the location you operate in.

Global airlines and hotel chains have robust CO2E tracking solutions. However they may not offer this data readily unless asked specifically. To get started , getting baseline data is the first step.?

In more advanced markets , most well established TMC’s and SBT’s have invested in capabilities to measure CO2 emissions based on consumer choices made. These need to be incrementally included in reporting, analytics and dashboards.?

Outlined are 5?parameters that can build the foundations of a metrics driven program KPI . The ability to get this data will be a function of the maturity and capability of your TMC and other vendor reporting available

1. Carbon emitted per $ spent?
2. Carbon emitted by numbers of days of travel annually
3. Annual CO2 emitted at a SBU / Enterprise level?
4. CO2 emitted per traveller
5. Evaluating the carbon emitted per flown passenger kilometre (#RPK )?

b. Supplier selection & Policy structure ?

Admittedly there is not single global standard for measuring and tracking CO2E efficiency. This will require a degree of evaluation and development at a local program level to get started , instead of waiting for an ideal standard to be available , which may be several years away.

Globally there are partners like HRS which offers a “#GreenStay " program. This is a great step in identifying responsible hotels and actively screening out / limiting visibility of those that may not focus in carbon efficiency. Corporate buyers can in this way compel industry to act.?

In some markets , where CO2E data is integrated with search at POS level , corporations have enabled their traveler’s to make educated and responsible choices. However there is a limitation in determining if actually a traveler exercises the appropriate sustainable choice available.?

Where available in search and booking capabilities , using the phenomena of “#visualguilt” to improve compliance combined with active reporting of the CO2E impact of choices, may reinforce CO2E reduction initiatives . Active labelling of choices may incrementally be used, as well. #Dashboards to report choices made and deploying #gamification may be incremental solutions to drive exercise of better choices by travellers.?

Where the travel program has some maturity in regards to CO2E , active monitoring of airlines and hotels #carbonefficiency , can be the basis for inclusion or exclusion from a corporate program. This form of limiting demand may be the best way to promote more responsible and efficient partners.

微软 is a global leader in the STP space . They have implemented an internal #carbontax on each SBU, for travel undertaken . The greater the travel, the higher the amount of internal taxation. This tax collected is then deployed at a corporate level into structured sustainability initiatives including offsets / Sustainable Aviation Fuel (#SAF ) deployment / #carbonremoval initiatives.

Travel managers will need to develop a clear travel policy structure that administers carbon efficiency. The framework of the policy will be closely connected to ability for their incumbent suppliers to reflect CO2E in every search or at least aggregate carbon emissions on a monthly / quarterly / annual basis.?

c. Execution & Going Live !?

Outlined are 5 approaches to actively enforce of a metrics driven STP where CO2E budgets have been created and are actively managed

#Avoid

• Deploy virtual technology for non essential travel?
• Defer travel / combine trips to stretch CO2E budgets?
• Require multiple levels of approval to initiate travel
• Stop travel once the carbon budget is exceeded.?

#Reduce ?

• Target an annual % reduction in travel based on CO2E reduction target?
• Target annual reductions of CO2E at an SBU/ Cost Center or Traveler level?
• Implement a internal Carbon Tax?

#Replace ?

• Air with Rail especially for short haul travel where possible?
• Shift from First & Business class air?travel to Economy class
• Hotels - 5/4 star hotels with?budget accommodations?
• Car rentals - Petrol / diesel vehicles to?EV based vehicles where possible?

#Incentivize ?

Build an active incentive and gamification structure to promote responsible travel choices. Will require active involvement of #corporateHR to build a effective structure

• Incentivize employees who voluntarily downgrade travel class / facility used
• Actively encourage employees to make the right decisions from a CO2E standpoint

#Carbonoffsets / #Alternatefuels

• Initiate a certified carbon offset program that can be tracked and validated quarterly/ annually
• Evaluate and subscribe to carbon removal projects?
• Contribute to SAF deployment in flights?where available, through payment of surcharges / additional fares?

This article is based on some of the learning outcomes of Episode #2?of our Global Voices in Sustainable Travel & Meetings series which featured Johnny Thorsen from Spotnana . We expect this post will give you some concrete inputs on getting started with a metric driven #sustainabletravel Program. We will be delighted to hear your comments and views on perspectives shared.?

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