Andrea Caulfield-Smith of the Advantage Travel Partnership highlights the growing importance of environmental, social and governance factors in business travel
Environmental, Social, and Governance (ESG) factors have become increasingly crucial in shaping the policies and practices of global business travel.
As a professional in this field, I’ve observed a growing number of companies recognising the need to align their travel programmes with broader sustainability and ethical goals. This shift goes beyond mere cost efficiency, focusing on minimising environmental impact, promoting social responsibility and adhering to robust governance standards.
The integration of ESG considerations allows businesses to reduce their carbon footprint, ensure equitable treatment of workers, support local communities and demonstrate accountability in their operations.
This holistic approach to business travel reflects the growing demand for corporate responsibility and long-term sustainability.
I firmly believe everyone in the business travel sector bears responsibility and accountability for the environmental and social aspects of our industry. It’s incumbent upon us to make more informed and better choices to drive positive change in both our industry and the environment.
While these changes may seem small now, they can have a significant impact in the future.
Across the global business travel sector, I’ve noticed varying levels of understanding regarding the implementation of sustainable actions within travel programmes.
While monitoring and reducing carbon emissions is fundamentally important, companies need to consider all ESG factors to make a truly impactful difference.
For businesses committed to achieving ESG targets, we’re witnessing a shift in preferred modes of transport. Due to its lower carbon footprint, energy efficiency, and reduced environmental impact, rail is increasingly becoming the first choice for domestic journeys and those within Europe.
In the UK, The Rail Delivery Group’s Green Travel Pledge, launched earlier this year, marks a vital step forward in this shift from air to rail. By offering detailed, accurate and reliable data on the carbon emissions of rail journeys, businesses and travellers can easily see the environmental benefits of switching to train travel.
Looking ahead to 2025, we anticipate another major development as the SkyTeam airline alliance partners with Eurostar.
This collaboration will enable travellers to book a single reservation for a long or medium-haul flight combined with a rail journey, leveraging Eurostar’s network to connect the UK, France, Belgium, the Netherlands and Germany.
We have also observed a continued shift towards electric vehicles for ground transport, as travellers adopt these in their personal lives and expect the same when hiring a car or using a taxi service.
While many businesses seek alternatives to air travel for shorter trips, aviation remains vital for connecting companies across the world.
Iata and global airlines remain committed to Sustainable Aviation Fuel (SAF) as part of the Fly Net Zero by 2050 campaign. However, SAF production levels remain significantly below demand, posing a major challenge to aviation’s decarbonisation efforts.
SAF can reduce greenhouse gas emissions by up to 80% over its lifecycle compared to conventional jet fuel, but it currently accounts for less than 1% of the jet fuel used globally. Increased production will therefore be essential.
At The Advantage Travel Partnership, we’re working with key partners to showcase that ESG is an interconnected, core part of every business. We believe it’s crucial to lead the way now to build a sustainable future.
Earlier this year, we announced Thrust Carbon as an official sustainability partner to improve both our own and our members’ sustainability journeys. Using its cutting-edge tools and resources, we’re following a seven-step process that supports key steps in driving change, from assigning a sustainability manager to creating carbon budgets and pricing.
We’ve also partnered with Trees4Travel to offset all emissions from our annual conferences, and with Greengage to provide our members access to support in developing their own ESG frameworks and offering clients tools for offsetting carbon emissions.
Through these partnerships, we aim to simplify how our members report, reduce, and offset emissions – a key priority for buyers and increasingly for travellers as well.
Establishing an ESG Steering Group has been essential to our ability to respond to the changing landscape. This working group consists of industry subject matter experts who are passionate about ESG and provide insight, skills, guidance and experience to our leadership team.
They support our ambitious growth plans and business goals while raising our profile and reputation when it comes to ESG activity.
In an increasingly eco-conscious world, embedding ESG principles into the business travel industry is not just a responsibility but an opportunity to shape the future of sustainable travel. By doing so, we can drive positive impact for the planet, people, and business resilience.
Small changes now can make a big impact in the future. It’s up to us in the industry to lead the way.
Andrea Caulfield-Smith is managing director of global business travel at the Advantage Travel Partnership