“Sustainable Business Travel Programs are like a garden full of different flowers”

This quote by Patrick W. Diemer , Chair , BT4Europe ?during our 3rd Episode of?“Global Voices in Sustainable Travel & Meetings”, aptly captured the essence of our discussions.

There exists no real model template or blueprint for #sustainablebusinesstravel programs (SBT ) that can easily be replicated across markets . Many business travel buyers across markets, including Western Europe?are experimenting with a variety of approaches to manage their travel programs, including?

• ? Restrictions?
• ? Exclusions?
• ? Ignorance?
• ? High engagement with users?
• ? Incentivization?
• ? Gamification structures?

Unlike markets in #India and certain other economies , #Europe is today operating business travel far below 2019 numbers. This is driven by a variety of reasons including #economic , #social , #political and #legislative that are combining to restrict / reduce business travel spends.

Many European travel programs are initiating steps to develop an #SBT and generally tend to focus on their home markets. These steps are still in their infancy. Further the multitude of standards that exists , add to the confusion. These initiatives are a greater focus with consulting firms / IT & technology firms with less acute?focus in enterprises in traditional sectors like manufacturing. Successful globalization of SBT outside of home markets for many #multinationals is still to be seen , with major challenges in?#strategic #cohesion, unified objectives across markets , #marketmaturity & #technologystandards & the ability to #effectivelycommunicate with varied stakeholders.

The forthcoming legislations in the #EuropeanUnion ( expected to be announced by end Q2/2023 )?will probably establish the baseline within #Europe and define?

1. A single reporting standard for Green House Gases (#GHG) including Carbon Dioxide emitted (#CO2E)?by different modes of transport. This is an important first step to eliminate the multitude of reporting standards?and unify the industry to comply with a single matrix of reporting and evaluation. This standard will focus only on transport and will not include the accomodation’s & meeting’s industry , which may arrive over time.
2. Develop a code of conduct for #OnlineBookingTools ( #OBT) and how they reflect availability and ability to book cross border rail travel for short haul trans European trips.?

These are initial legislative actions and have the possibility of being replicated?across other markets, once finally announced. Given that reporting of GHG & CO2E are being increasing mandated in many European markets and being extended to additional global markets , this act of legislation reflects an important first step.

These legislations will establish the first and most important baseline to establishing a common reporting standard in the European Union (EU) that would allow for more effective baselining of business travel programs & develop a clearer more robust mechanism for evaluation of SBT across enterprise and markets , by annual GHG/CO2E footprint standards reported year on year.?

This may lead to more concrete steps for CO2E reduction initiatives, that focus on the principles of #Avoidance / #Reduction / #Replacement / #Incentivization and #Offsets/ #Alternatefuels and eventually develop into a more structured #metricsdriven sustainable travel program?( Refer our article dated 23rd March 2023 https://www.dhirubhai.net/pulse/creating-metrics-driven-sustainable-travel-program-how-sundaram “

While some enterprise may?desire a top down directive driven action which focuses on enforcement, many other companies are focussing on motivating changes in consumer behaviour & #incentivization as a means of driving a lower CO2E output. This latter approach involves #socialisation of #environmentalobjectives and #motivation of employees to exercise the correct judgement call, that aligns with overall GHG/ CO2E goals of the enterprise .

Some other legislations like the suggested ban on short haul flights in #France , are likely to see complexities in eventually becoming a law. It appears unlikely this approach of enforcing a “ban” may easily pass muster and its likely that eventually such actions, will be market driven.

Sustainable Aviation Fuel (SAF ) presents a meaningful first step in implementing SBT, near term. As demand rises and production capacities develop , prices are expected to show some decline. However #SAF may be one of many future solutions given the challenges with scaling this to the match the volume of kerosene consumed by #globalaviation.?

Its possible overtime, that new?legislation is introduced in different markets that compel consumers to use a certain percentage of SAF in each flight taken , given that massive cost differential between SAF & kerosene. Till this time , initiatives of offering air fares with supplements for use of SAF may be a good first step which are contributing to making SAF, a real option for consumers and enterprise to curtail CO2E footprint. #Carbonoffsets also fall into a similar frame of reference …. A good first step but one where it can be a little subjective to determine the actual impact on carbon emissions.?

Many markets may not have the?market & technology maturity that may be prevalent in #NorthAmerica or #WesternEurope. For them to get started on a sustainability roadmap, buyers individually or as a collective , will need to demand baseline GHG/CO2E #visibility and #reporting from partners like Travel Management Companies (#TMC’s)?/ Global Distribution Systems (#GDS ’s) and Online Booking Tools (#OBT's). They can also implement a combination of approaches ranging from forced compliance to incentives and employee education.

As Patrick concluded , Business Travel will remain a significant part of the ecosystem . However it will come under increasing pressure to reduce GHG/CO2E footprint. Its quite possible that the initial legislations in EU and some other markets may rapidly cascade and develop into a global compliance standard in the medium term.?

The eventual thought that every enterprise travel manager will be challenged with is to see if the percentage growth in business travel can be reduced vis-à-vis overall business / economic growth.?

This will require them to draw on learnings that we all experienced during #Covid19, when business travel came to a standstill but businesses continued their forward march. This will require a combination of #imagination , #resourcefulness , effective #communications and #buildingconsensus across the enterprise & the industry as a whole.?

#businesstravelintelligence #globalvoices #netzerocarbon #netzero #businesstravel #timeforgreentravel #effortlesslygreen #openinnovation #traveltopia #greenwashing #emergingmarkets?#carboncredits?#netzero2030 #sustainablefuture? #strategy #businesstravelintelligence?#carbonfootprint #europe #europeanunion #legislation #riskmitigation?#europetravel

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