The UK has a legally binding target to reduce greenhouse gas emissions by 100% by 2050, known as "net zero". The interim target is to reduce emissions by 78% by 2035.
Overall, with the clock ticking just 65% of UK businesses have a plan to reduce their emissions to net zero by the 2050 deadline.
This is largely due to post-Brexit regulatory uncertainty, inadequate green infrastructure and limited financial support for energy efficiency and renewable energy initiatives.
Unrealistic targets?
Optimism around achieving carbon reduction targets varies. For example, 68% of IT and telecoms firms have a net zero plan, compared to 52% in the financial services sector.
Factors cited include variations in regulatory frameworks, economic conditions, and organisational commitment.
Recent actions by major UK banks suggest a shift in how sustainability targets are prioritised. Barclays and NatWest have removed climate targets from their annual bonus schemes for senior executives in favour of long-term incentive plans.
The inevitable conclusion is that there are doubts over the long term impact of pursuing sustainability goals on business performance.
Embedding sustainability in travel programmes
Amongst UK-based SMEs, the picture is brighter. 87% have established targets to reduce business travel emissions, up from 52% in early 2024. A third plan to prioritise rail travel to decarbonise staff commutes.
Itis estimated that around 30% of UK businesses are going beyond carbon offsetting in their travel programmes, focusing on more comprehensive sustainability initiatives, including reducing travel frequency.
PwC UK were amongst the earliest adopters, implementing a policy requiring senior management approval for air travel, contributing to a 90% reduction in non-client-related air travel emissions between 2007 and 2023. Wienerberger UK transitioned its company car fleet to electric vehicles, aiming to cut business travel emissions by 500 tonnes of CO₂e annually.
Different approaches
Businesses embedding sustainability into their travel programmes are adopting a range of approaches. But although 18% of programmes allow their travellers to book more sustainable travel options, this is down from 28% in 2024 and 31% two years ago.
And although 69% of travel managers have updated their guidelines to emphasise eco-friendly practices and reducing non-essential travel,93% of travel suppliers say corporates need to change traveller behaviour andbe prepared to pay more.
Suppliers are playing their part too. easyJet has introduced carbon reporting tools enabling customers to track emissions associated with business travel whilst committing to a 35% reduction in emissions intensity by 2035.
We are also seeing corporates invest in Sustainable Aviation Fuel (SAF). The UK government has mandated that SAF comprise 10% of the UK aviation fuel mix by 2030.
Industry standard
A third of UK travel managers say the industry needs an agreed standard for measuring air travel programme sustainability.
69% believe no such standard currently exists despite the efforts of industry bodies from IATA to the Global Sustainable Tourism Council (GSTC).
Industry experts reckon it could take up to five years before a comprehensive, agreed standard is in place because of challenges such as of harmonising data collection, diverse travel modes, and regional regulatory differences.
In the meantime, many companies turn instead to third-party carbon accounting tools incorporated into their TMC’s travel management platforms.
ECOsmart
At Clarity, in collaboration with Greengage Solutions we are rolling-out ECOsmart – a unique green booking initiative and sustainability certification programme.
By implementing ECOsmart into our proprietary booking technologies, ClarityGo and MeetingsPro, this enables bookers to search and select accredited properties, enabling informed decisions to be made.
This demonstrates our commitment to being a sustainable business and our wider investment in sustainable solutions, services, and technology for our customers.
Key takeaways
10 actionable strategies for reducing travel-related carbon emissions:
- Set realistic emission reduction targets.
- Make video conferencing the default for internal meetings and non-essential external meetings by establishing clear guidelines on when travel is essential.
- Encourage train travel for domestic and short-haul trips instead of flights.
- Choose airlines with efficient fleets or those using SAF, hotels and venues with robust sustainability policies.
- Partner with EV taxi services and car hire companies, promote carpooling, and provide incentives for employees using public transport.
- Carefully consider the city and venue of your meetings when meeting attendees are travelling from various locations - meet in the middle.
- Make use of MeetingsPro's Travel Time feature to assess walking distances to a venue. Where appropriate walking from a station or accommodation to a venue could even offer wellbeing benefits over using taxis and public transport.
- Encourage employees to choose greener options by providing accurate information
- Implement travel management software that tracks CO₂e per trip.
- Where travel is essential, invest in verified offset projects that remove carbon, such as reforestation.
Publish sustainability reports with data-driven insights into your corporate travel carbon footprints.
