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Key Takeaways:
- While 57 large companies have set targets, 83% of global companies still don’t have credible plans to reduce corporate flying emissions.
- A small group of companies have a bigger share of emissions than the rest of the companies in the ranking. The 25 biggest flyers without a target represent 36% of emissions from the 328 companies in our ranking.
- 5 companies out of 328 meet the “gold standard”: these top-ranked businesses report air travel emissions and commit to their absolute reduction of 50% or more, by 2025 or sooner.
- 44 leading companies report the full climate impacts of their business flying by including non-CO2 emissions, but most companies in the ranking still do not take these into account.
- Half of some of the world’s biggest flyers – 115 out of 234 based on available data – kept their emissions under 50% of 2019 levels in 2022. Only with clear targets can they ensure the sustained reduction needed.
- Governments should set mandates for businesses to reduce travel emissions, to report the full impacts of their air travel, and to include business flying emissions reduction targets in their climate transition plans.
A recent report by Transport & Environment has put a spotlight on the inadequate efforts of numerous multinational companies to mitigate the environmental impact of their corporate air travel. The ranking, known as the Travel Smart Ranking, evaluates over 300 leading firms, examining the scale of emissions generated by employee air travel and assessing whether companies have implemented targets to reduce the climate impact of business trips.
- Twenty-five multinational companies, including industry giants like Unilever, Danone, and Accenture, have received a bottom score of D for their failure to address their significant contribution to aviation-related emissions.
- These 25 firms collectively account for 36% of all aviation-related emissions among the analyzed companies, underscoring their outsized environmental impact.
- Despite public pledges to align with the Paris Agreement, certain multinationals, including Amazon, GSK, and Google, have been singled out for their lack of meaningful action to reduce aviation emissions.
- Urgent action is needed, with a 50 per cent reduction in overall business travel necessary this decade to align with a 1.5°C-compatible decarbonization pathway.
- Tech giants like Microsoft, IBM, and Google are falling behind industry leaders in cutting corporate travel emissions, raising concerns about their commitment to sustainability.
The report highlights a stark contrast within industries, with some companies demonstrating ambitious sustainability goals while others lag behind. Despite public pledges to align their operations with the goals of the Paris Agreement, certain multinationals, including Amazon, GSK, Danone, Unilever, and Google, were singled out for their lack of meaningful action to reduce aviation emissions.
Top 9 Flyers With No Credible Plans To Reduce Business Travel Emissions
Source: Travel Smart Ranking – 2024 edition
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Transport & Environment emphasizes the urgency for companies to set targets to curb their air travel emissions, asserting that a 50 per cent reduction in overall business travel is necessary this decade to align with a 1.5°C-compatible decarbonization pathway. Denise Auclair, corporate travel manager at Transport & Environment, underscores the responsibility of top flyers to prioritize emission reductions, warning that failure to do so could result in competitive disadvantages.
“Top flyers have an outsized responsibility to cut down their flying. They must urgently set targets or risk losing out to competitors. There are no excuses for not taking action. Peers in their sector have set ambitious targets, so what is stopping laggards like KPMG and Accenture from doing the same?” – Denise Auclair, Transport & Environment
The report also underscores the disparities in environmental commitment among companies, with only a fraction of evaluated firms having set targets to reduce business travel emissions. While some, like Pfizer, AstraZeneca, and Oracle, have been recognized for their innovative changes and ambitious targets, the majority have yet to demonstrate genuine commitment to reducing air travel emissions.
“Years after the corporate world learnt to connect and collaborate with fewer flights, many companies are yet to lift a finger to act on the climate footprint of their business flying. It is imperative that companies set tangible goals and binding commitments to achieve lower levels of business flying. Without these concerted actions, net zero pledges will simply become empty words.” – Florence Long, Aviation Environment Federation
Tech giants such as Microsoft, IBM, and Google have been criticized for their failure to keep pace with industry leaders in cutting corporate travel emissions. Despite their prominent positions in the market, these companies have not set credible plans to reduce their polluting corporate flights, risking a return to pre-COVID levels of flying.
“The Travel Smart Ranking isn’t just a ranking, it’s a call to action. We urge all companies to set targets for reducing business travel emissions that will accelerate near-term progress towards net zero goals. This critical step will help ensure that across companies and industries, leaders are adopting solutions and policies that enhance sustainable, purposeful travel.” – Adam Braun, Clarasight CEO & Co-Founder
As the world strives to combat climate change, the onus is on corporations to take decisive action in reducing their environmental footprint. Failure to do so not only undermines their commitment to sustainability but also poses risks to their competitiveness and reputation in an increasingly environmentally conscious market.
Find the FULL RANKING LIST here