As emissions continue to erode our world, the global commitments to reduce greenhouse gas emissions have fallen short. The issues are incredibly complex but as climate impacts become more damaging, pressure is building on businesses’ climate-related disclosures.

Customers, lenders and investors are not only seeking cuts, but transparency. The focus is not just on scope 1 and 2 emissions, but also scope 3, from activities up and down the value chain, and travel can be a major part. For some businesses these can account for more than 75% of total emissions; for manufacturing businesses these might also be high, though a lower percentage.

The term ‘avoid, shift, improve’ originated in Germany in the 1990s when used in a transportation study to identify consumer behaviour. These three avenues can be seen as steps. The first step is to avoid or minimise travel. The second is to travel in a different way, with lower impacts. The third is to travel in a similar way, but to do it better.

1. Avoid

The first priority is to avoid or reduce business travel, where possible. A well-known example is to cut travel domestically and internationally by teleconferencing. Both the technology and our own skills had a big boost in recent years, accelerated by the pandemic.

2. Shift

The next step is to switch to lower-emitting forms of travel. Examples include travelling by train or bus instead of flying, or – depending on the distance – consider using a bicycle or e-bike instead of driving.

3. Improve

The final option is to continue travelling in similar modes, but to find ways to cut emissions. Examples include:

• Using an electric vehicle, rather than a petrol or diesel car

• Still using a fossil-fuelled vehicle, but switching to a more efficient model

• Ride-sharing rather than driving alone (even carrying just one passenger can halve each person’s impact)

• Flying economy class, rather than more expensive options. The potential emissions savings from this change are large, often under-estimated and are worth considering further.

Flying better

Calculating emissions from flying is complex. Not only do jet aircraft have high carbon dioxide emissions – 1kg of jet fuel produces 3.16kg of this long-lived gas – they also emit nitrous oxides (powerful greenhouse gases), sulphur oxides, water vapour, soot and other aerosols, each with its own idiosyncrasies. Plus, their impacts are magnified by altitude.

While modern aircraft are more efficient than in earlier decades, these improvements are offset in increased passenger demand, a trend that will only continue. While emissions from flying account for about 2.5% of global emissions per year, it is estimated the cumulative impacts could account for about 4% of global warming.

Per-passenger and per-kilometre calculations are complicated, with much higher emissions attributable to those in business or first class. Key factors are the space provided per traveller, including seating and sleeping options, extra services, crew numbers, luggage allowances and waste; together with differences between various aircraft and airlines. But in this area at least, business travellers can choose to limit their impact.

What difference might this make? Calculations using UK Government tables show emissions of about 2.8 times for business class and four times for first class, compared with economy class. Consequently, the global heating of an economy class passenger is a quarter of someone in first class.

Calculations for private jets and helicopters depend on their size, efficiency and occupancy levels, but they generally produce far higher emissions per passenger than commercial flights.

In the interest of doing your bit to a safer climate – and unless there are compelling reasons that require otherwise – if you need to fly, consider booking economy.

How does commuting contribute to business emissions?

Commuting to work is a separate form of business travel that falls under scope 3 emissions. Like other business travel, possibilities for savings include:

• Avoid: by working from home

• Shift: by using public or active transport

• Improve: by ride-sharing or using an electric vehicle.

Apart from businesses being able to report lower emissions, taking steps to save brings further benefits, such as employees enjoying lower transport and parking costs (and possibly exercising more), reduced congestion and decreased pollution for all.

Stakeholders, including future generations, will be pleased we started this journey.

Climate impact of air travel

The level of CO2 equivalent produced by each km a passenger travels varies greatly depending which cabin class they fly in.

CA ANZ responsible travel

How is CA ANZ managing its greenhouse gas emissions from business travel?

Paul Shelbourn, CA ANZ’s sustainability lead, and general manager, risk, compliance and assurance, explains the challenges. “We represent a large membership in a geographically separated part of the world, so business travel is a key component of our operation. We need to travel between office sites, to meet and interact with our members, and to represent them on the global stage with partner member organisations in other countries. For this reason, business travel emissions are difficult to abate.

“In 2022, CA ANZ set an ambitious reduction target for business travel emissions. In practice, we can’t eliminate travelling but we can become more effective at planning and using the tools available to budget our emissions, to optimise what we can achieve when we travel.”

Shelbourn says that business class, with its higher level of emissions, is an option only when the traveller is required to start work shortly after a long flight and in some other exceptional circumstances.

“Regarding achieving net zero, we adopt the Science Based Targets initiative [SBTi] model, which defines net zero for our organisation as a 90% actual reduction of emissions, with the remaining 10% being offset.

“Offsetting our way to net zero is not a solution to the climate challenge,” Shelbourn adds. “However, we have set net zero targets for scopes 1 and 2, and we are already well on the way to reducing those emissions by 90%.”

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Better commuting

In Nelson, New Zealand, transport accounts for more than 60% of the city’s greenhouse gas emissions. Commuting is a major part of that. Mission Zero, a local not-for-profit group funded by Nelson City Council, undertook a survey to see how commuting emissions could be reduced.

Employees of 10 organisations (the local port, airport, hospital, a research centre, a school and five other businesses) were surveyed – 3300 workers in total. The survey asked how far they travel, their mode of transport, what they liked about their arrangements and what would help them change to a low-carbon commute.

The survey found:

• The median commute is 7.5km each way and 27% of all trips involve public or active transport

• 59% of commuters drive alone

• 87% of vehicles driven are petrol or diesel powered

• The safety of cycle routes is a key factor in decisions about riding to work

• E-bikes could be a game changer: riders have lower costs, emissions and parking requirements than drivers, and are more likely than other cyclists to arrive fresh, with no need for showers or changes of clothing

• A switch to low-emissions commuting can provide cost savings and health benefits for employees, cut emissions and costs for businesses, and an overall reduction of pollution and congestion

• Even just choosing a low-emission commute one day a week is a good start at lowering emissions and could easily be scaled up.