New reporting requirements will oblige companies to pay closer attention to their sustainability data and goals and the disclosure of their annual progress. With more transparency will come a greater expectation for business travel to play its part in addressing climate change. Less talk and more action will be needed to avoid accusations of greenwashing. Emphasis must shift to meaningful travel – where low emissions, positive local impact, traveler wellness and business success all go hand in hand. Travelers must know when to travel and when to stay at home, how to book the most sustainable options; and travel policies will need to support this. Managing emissions at company or department level, and clear reporting and accounting for quality carbon offsets or purchases of sustainable aviation fuel will be vital. Below are the top eight trends that will build pressure on business travel to reduce its climate impact.
Less talk, more action
While sustainability has been a hot topic in the wake of the pandemic, its profile is starting to fade as travel returns to normal and political priorities move away or even against it. However, the fundamentals are in place and buy-in from companies and global institutions is now solidified – so even if we hear less about it, sustainability actions and progress will continue.
Data in the spotlight
2025 will see the first companies reporting under the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD). This should trigger the first round of audits, which will include business travel emissions data. The spotlight will turn to leakage, accuracy of methodologies, the robustness of data collection and calculation.
From greenwashing to greenhushing
2024 saw the start of a backlash against greenwashing, spurred on by the EU’s Green Claims Directive. In response to this, and some high profile court cases, companies will be much more hesitant to communicate their sustainability achievements outside the reporting sphere. While customers may have to dig deep to find the information they need, it’s likely to be more robust when they do.
Meaningful travel
As the stakes get higher, the importance for corporate travel to be a meaningful endeavor becomes more critical. Decision makers must ensure they take into account the value of every trip, to business, to employees and to the planet. The global community will expect real action and not just PR platitudes.
Sustainable aviation – it’s time to pay up
Sustainable aviation fuel (SAF) mandates are now in place in multiple markets. Country-based levies (Singapore) or ticket surcharges (Lufthansa Group) have also been brought in, while some countries (Germany) use higher aviation taxes as an alternative to kerosene taxes. Customers will have to pay their fair share of these extra travel costs.
Plan for disruption and resilience
As the world surpasses the Paris Agreement’s 1.5 degrees temperature rise, the realities of climate-related travel disruption will escalate. Understanding and mitigating risks, planning for and dealing with disruption, and building resilience into travel programs will be a core requirement.
Sustainable procurement – from theory to reality
EU and other regulations are increasing the pressure on companies to fully incorporate sustainability into their procurement processes. Now that GBTA has released its sustainability standards for air and hotel procurement, companies will increasingly integrate sustainability in a meaningful way into their travel purchasing decisions.
AI – sustainability’s double-edged sword
Data collection, forecasting, mapping environmental impacts and streamlining corporate disclosures will all increasingly be supported by AI, driving efficiency and accuracy. But AI must address concerns about energy consumption, ethical implementation and regulation if its use is to be sustainable in the long term.
What can travel managers do?
Faced with the prospect of CSRD, a first step would be to check in with the sustainability team to ascertain if your company is required to make a CSRD report that includes scope 3 (indirect greenhouse gas) emissions. If so, it’s important to understand how to collect, report and audit this data. It’s also worthwhile assessing and, if necessary, improving travel policies to enhance their focus on sustainability. And you’ll need to investigate your suppliers’ approach to sustainability, to ensure it complies with supply chain requirements in the new legislation.
Furthermore, if you want to engage your travelers in more sustainable travel, you could look into:
Providing sustainability information (such as air emissions, carbon price and hotel sustainability practices) at the point of sale for travelers.
Using digital behavior marketing to promote more sustainable choices by travelers.
Giving travelers the ability to invest in carbon projects, purchase SAF or apply a carbon tax for each booking in alignment with program policy and parameters.
Companies that combine these steps will achieve the greatest success.
About BCD Travel
BCD Travel helps companies travel smart and achieve more. We drive program adoption, cost savings and talent retention through digital experiences that simplify business travel. Our 15,000+ dedicated team members service clients in 170+ countries as we shape a sustainable future for business travel. BCD’s leading meetings and events management and global consultancy services complete our comprehensive suite of solutions for all aspects of corporate travel. In 2023, BCD achieved US$20.3 billion in sales. For more information, visit www.bcdtravel.com.
Janneke KraanenManager, PR & Content CreationBCD Travel
