Why Your Business Needs Sustainable Travel
One of the most significant contributors to corporate carbon emissions is employee travel. Many organizations have integrated into the travel industry, yet many companies rarely implement clean travel policies and guidelines. There are many benefits to sustainable business travel, which your company can enjoy by taking action and upgrading its travel policies.
According to 2021 trends, 91% of consumers expect brands to demonstrate how their business supports the environment. A Dentsu and Microsoft Advertising study discovered that 59% of consumers are willing to boycott businesses that don’t prioritize environment-friendly practices. According to the Global Sustainable Tourism Council, experts observed a 71% rise in online searches related to clean travel options.
Understanding Sustainable Travel
Sustainable business travel is defined as efforts toward reducing professionals’ environmental impact when they travel to different locations to fulfill their roles in the company. Professional travelers need to be more aware of their impact on natural resources and the pollution levels induced by their movement. Sustainable travel aims to implement a sustainable business policy and other practices to reduce carbon emissions and support initiatives that help care for the environment.
Benefits of Implementing a Sustainable Business Policy
Implementing a sustainable business policy provides several crucial benefits to businesses. Sustainable business practices pay off long-term and can become a critical component of an organization’s business strategy. Here are some of the benefits of a sustainable business policy:
Creates a Competitive Advantage by Improving a Company’s Brand Reputation
One of the ways your business can stand out from the competition is to create a positive brand image. Since more consumers today prefer to interact with companies with sustainable business practices, sustainable travel policies can help boost your brand reputation, also known as a green reputation.
Companies that implement sustainable business policies are often referred to as green businesses. These companies tend to appeal more to customers, employees and potential business partners. To further cement your reputation as a green business, it is best to apply for a green certification or sustainability certification.
Improves Regulatory Compliance
Focusing on sustainable business travel can be a long-term endeavor. Businesses may see results much later, but environmentally friendly policy changes can have immediate benefits. For instance, when you implement sustainable practices, it will be easier for your company to comply with legal requirements in your industry. In addition, your operations positively impact the environment immediately, which complies with many government regulations.
Increase Productivity and Reduce Costs
Making sustainable changes to a company’s business and travel practices can increase employee productivity and reduce your overhead. For example, switching to a cloud-based corporate travel management system reduces your company’s reliance on paper records and documentation.
Streamlined travel management systems can reduce costly travel planning errors. They provide self-serve options, which reduces the workload of your finance teams and makes reporting and documentation easier, reducing costs and improving employee productivity.
It Enables Company Travelers to Make Environmentally Conscious Transport Choices
With sustainable travel policies, your company’s professionals can choose travel options with a smaller carbon footprint. It empowers them because they know they’re doing something that contributes to the environment's well-being.
Sustainable Policies Save Time and Improve Efficiency
When employees opt for sustainable practices, they can choose to reduce the travel they make each year. For example, they can choose video conferencing instead of face-to-face meetings if that is the better option for meeting clients and business partners. Likewise, your travelers can reduce lost time and productivity by avoiding travel during peak seasons and choosing to travel only when necessary.
Are There Any Tax or Monetary Benefits?
In addition to the benefits mentioned earlier, your company can enjoy monetary and tax benefits by implementing sustainable travel practices. The US government emphasizes the need for renewable energy and supports companies' sustainable efforts. In effect, green businesses can enjoy rebates, tax breaks and other monetary incentives.
These are the advantages that the US government offers to green businesses:
Tax credits for using vehicles that meet current fuel-efficient standards.
10 and 30 percent tax credits and grants when using alternative energy.
Business deductions for installing and using hot water systems, interior lighting and HVAC systems reduce power usage.
Government Grants and Subsidies
Aside from tax breaks, green businesses can be qualified for financing programs, subsidies and grants. For example, the Environmental Protection Agency (EPA) provides grants to companies that implement programs promoting environmental responsibility. On the other hand, the Small Business Administration (SBA) provides financing solutions for companies and organizations that support environmentally-friendly solutions and green technologies.
Here are other potential tax benefits your company can enjoy:
Carbon dioxide sequestration
Biodiesel fuel credit
Qualifying gasification project credit
Qualifying advanced coal project credit
Energy credits
Advanced nuclear power facility production credit
Renewable electricity production credit
Low-sulfur diesel production credit
Biodiesel fuel credit
Alcohol fuels credit
Tax credit for using energy-efficient appliances
Tax credit for using environmentally friendly vehicles
How Can Business Travel Become More Sustainable?
Businesses can take several crucial steps to reduce their carbon footprint by implementing changes geared toward sustainable travel.
Switching to green travel options
When corporate travelers become more aware of the environmental impact they make, they can be encouraged to choose greener travel options. For instance, they can opt to travel by rail rather than by air if they need to travel to different European countries and cities. Rail travel emits only 1/20th of air travel emissions, which greatly reduces your company’s carbon emissions.
Use carbon calculators to select greener travel providers
Certain tools, like carbon calculators, can tell you which airline uses aircraft that are more fuel efficient. Using these tools in your booking processes allows your employees to choose greener travel options when scheduling business trips. You can use the same tools to select hotels, car rentals and other travel necessities.
Choose travel options that offer carbon offsetting
Airlines, rail companies and other travel providers offer carbon offsetting as part of their sustainability efforts. Even though these companies can’t always provide net zero carbon emissions, they offset their operations by contributing to renewable energy projects, reforestation and other similar causes. Choosing these companies for travel services also help in the carbon offsetting efforts.
Create a company culture that supports sustainability
Fostering a sustainable company culture is one of the first steps toward becoming a greener enterprise. You can promote certain activities like recycling on the road, choosing e-tickets, using reusable plastic bottles, providing allowances for using electric vehicles and whitelisting eco-hotels in your booking process.
Making Policy Changes That Support Sustainable Travel
Crafting and implementing sustainable travel policies will require everyone’s cooperation and effort. It takes time to implement policy changes, and you need to measure certain metrics to determine your success. Consider the following suggestions as you make the switch to sustainable corporate travel:
Compute your travel carbon emissions
You will need a comprehensive travel audit to determine your current carbon footprint. A seasoned travel management company, like CI Azumano Business Travel, can help you conduct such an audit, showing you how much you’re currently spending.
Create strategies and policy changes
After a thorough audit, you can make policy changes based on your findings. For example, you can implement changes that fit your business travel needs, such as choosing rail transit over air travel, choosing airlines that use biofuels and newer energy-efficient planes, and encouraging travelers to use more public transportation and rent more electric or hybrid cars.
CI Azumano Business Travel has over 30 years of industry experience, helping businesses manage their corporate travel needs better. Our team can provide your business with custom travel solutions geared toward sustainability. Call today or fill out our online contact form, and our specialists will gladly assist you.