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Carbon Emissions Regulations: The Impact on Managed Business Travel
Carbon Emissions Reporting involves quantifying an organization’s greenhouse gas emissions into three scopes.
By Jim Hetzel, Product Marketing Director, Cirium
Carbon emissions reporting is becoming increasingly vital for corporate responsibility, especially for companies with managed business travel. In this era of growing environmental consciousness, understanding the impact of global regulations on carbon emissions has become crucial. Let’s dive into how these regulations can influence businesses and the benefits they bring.
Carbon Emissions Reporting involves quantifying an organization’s greenhouse gas emissions into three scopes:
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from purchased energy generation.
Scope 3: Other indirect emissions, including business travel.
Increasing Global Regulations
Regulatory bodies worldwide are introducing strict rules on carbon emissions reporting to hold companies accountable for their environmental impact.
European Union’s Corporate Sustainability Reporting Directive (CSRD):
Mandates large companies in the EU to regularly publish reports on their environmental impact, including climate impact from business travel.
California’s Climate Corporate Leadership and Accountability Act (SB 253) and Climate-Related Financial Risk Act (SB 261):
Requires companies to disclose their entire scope of emissions, including those from operations and supply chains, as well as financial institutions’ portfolios.
Benefits of Compliance
- Compliance with Regulations: By understanding and adhering to carbon emissions regulations, companies can avoid penalties and legal risks associated with non-compliance.
- Optimizing Carbon Offset Efforts: Knowledge of emission reporting allows businesses to identify areas where they can reduce their carbon footprint effectively.
- Cost Reduction: By optimizing carbon offset efforts, companies can minimize costs associated with emission reduction strategies.
- Enhancing Brand Image: Demonstrating commitment to environmental sustainability through accurate reporting helps improve a company’s brand image among consumers who prioritize eco-consciousness.
- Attracting Investors: Companies that actively manage their carbon emissions are more appealing to the investment community as sustainable practices align with long-term financial stability.
Cirium’s groundbreaking work in accurately measuring aircraft and flight emissions plays a vital role in the pursuit of sustainable practices and responsible corporate behavior, ultimately helping businesses align their operations with global ESG objectives.
Case Study Example – RELX’s Flights Dashboard
RELX, a global information and analytics company, is using innovative solutions to measure and track flight emissions:
- The flights dashboard, powered by Cirium’s aviation analytics, provides accurate fuel burn figures.
- This data allows RELX to make informed decisions to reduce emissions, choose lower-emission airlines/routes, and set carbon reduction targets.
Changing Travel Behaviors at RELX
The introduction of the Flights Dashboard has triggered positive changes at RELX:
- Considering financial and carbon costs for in-person meetings and finding a balance.
- Measuring the impact of travel year-on-year and setting reduction targets.
- Introducing an internal carbon price as an incentive to reduce unnecessary travel and support environmental projects.
By actively managing their carbon emissions, organizations can contribute to a sustainable future while enjoying the benefits of compliance. So, let’s embrace these changes and create a greener tomorrow together!
Learn more about building sustainable travel programs.
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