state of sustainability
in corporate travel
To avoid climate change-related litigation, corporates and
hotels must implement science-based sustainable practices
Executive Summary
In the face of the global climate crisis and the urgent need to meet the targets set by the Paris Agreement, businesses are increasingly being held accountable for their environmental impact. With the EU Corporate Sustainability Reporting Directive (CSRD) and similar regulations, corporations are under significant pressure to reduce emissions by 2030 and achieve net-zero by 2050.
With travel and tourism overall contributing 8% of the world’s carbon emissions and business travelers accounting for 20% of this, corporates and travel suppliers must act to reduce the impact of their activities. Business travel is particularly in the spotlight because demand has returned to pre-pandemic levels. For large multinational companies, Scope 3 emissions are responsible for up to 80% of a corporate carbon footprint, with business travel often one of the largest sources. Corporate travel has also changed its profile, becoming more purposeful. Business travelers are combining trips, staying longer in the destination and flying less in favor of rail. This means that the lodging segment can now account for up to 30% of a trip’s environmental impact.
As new regulations take effect, companies face financial risks and compliance challenges, particularly regarding how they measure, report, and mitigate their emissions. The traditional use of averages in emissions reporting is no longer sufficient, as compliance with stricter regulations will demand auditable and precise methodologies for greenhouse gas accounting.