Growing Green: business travel carbon footprint reporting, data analysis and cost reduction
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1 Growing Green: business travel carbon footprint reporting, data analysis and cost reduction The Business Travel Show: 20/02/2018 Susterra Ltd 4-5 Bonhill St, London, UK, EC2A 4BX
2 introduction About me James Dent Founder, Susterra Ltd Based in London, UK is a software/consultancy firm specialising in sustainability services aimed at corporate travel carbon reporting and data analytics. A passion for sustainability worked with various clean energy generation projects for the AECF in Southern Africa and research projects at the UK s Tyndall Centre for Climate Change Research. BSc in Mathematics and Philosophy and MSc in Environmental Science, both from The University of Manchester.
3 overview Introduction Why is reporting important? UK Government Legislation How to report? Case Study: Company A Case Study: Company B Impact reduction strategies
4 business travel past/present/future The Business Travel Show: Top Issues Facing Travel Buyers
5 reporting why is it important?
6 reporting why is it important? UK GHG Emissions by Sector % 33% 18% 30% 17% Energy Supply Business Transport Public Residential GDP UK Q % 1% 13% 9% 5% Agriculture Production Manufacturing Construction Services
7 reporting reporting case study comparison? Centrica CDP GHG Data 2016 Scope % Scope % Business Travel 0.30%
8 reporting why is it important? NFR Directive 2014/95/EU What is it? The UK Government has enacted regulations implementing the EU Non-Financial Reporting Directive The regulations apply to financial years beginning on or after 1st January 2017 What does it mean? The UK government has widened the scope and inclusion for non-financial reporting, one of which is environmental matters to include business travel Companies falling under the directive to report the environmental impact of business travel in their annual reports Who does it apply to? The directive scopes all public interest companies that have over 500 employees, on average, in the financial year. A traded company (a company any of whose transferable securities are admitted to trading on a regulated market in the EEA); A banking company, an authorised insurance company or a company carrying on insurance market activity.
9 reporting what/how to report? Monthly/Quarterly/Annual Scope 3: Business Travel CO2e Footprint Air km/co2e/ Rail Km/CO2e/ Domestic Short Haul Long Haul Domestic International
10 reporting what/how to report?
11 reporting what/how to report? Company GHG Emissions Reporting a Study on Methods and Initiatives (ENV.G.2/ETU/2011/0073) Revised Final Report October 2016
12 reporting accuracy - benefits Technological Advances Enhance CSR More accurate data Improve Sustainability Increased awareness and understanding Reduce costs
13 reporting methodologies UK Government ICAO Per Passenger kg CO2e emissions factor DOMESTIC (average) INTERNATIONAL SHORT HAUL (average) INTERNATIONAL LONG HAUL (average) Economy/Premium/Business/First Not airline/aircraft or route specific Per Passenger kg CO2e emissions factor No distance sub-sets Economy/Premium/Business/First Route specific Not airline or aircraft specific
14 reporting methodologies Load Factors Fuel Burn Data DEFRA + ICAO Emission Factors Aircraft Type Per Passenger kg CO2e emissions factor No distance sub-sets Economy/premium/business/first Airline specific Aircraft specific Route specific Cabin Class Per passenger per flight kgco2e Route Distance
15 reporting methodologies Flight Carbon Footprint 108 kg CO2e/km
16 Reporting methodologies Flight Carbon Footprint 0.10 kg CO2e/km
17 reporting methodologies - what does this mean?
18 travel data analysis - benefits Increased Data Accuracy Flight Route Efficiency Mapping Reduce Travel Carbon Footprint Reduce Travel Costs
19 travel data analysis Long Haul Cost kg CO2e Flight Route Analysis by Airline: London to LAX Data LHR/LAX LGW/LAX LHR/LAX LHR/LAX LHR/LAX airlines 0 kg CO2e cost
20 travel data analysis Case Study: route London to Edinburgh
21 Mean Cost Mean tco2e travel data analysis Company A London - Edinburgh Route cost and footprint analysis: BA - Business BA - Economy FlyBe EasyJet Nat Exp CO2e Cost 0
22 Cost ( ) /km travel data analysis Company A: 2017 DATA Average Spend per flight (airline specific) - London to Edinburgh ( ) 0.3 Cost per Distance per airline ( /km) EDI-LCY EDI-LTN EDI-LGW EDI-LHR Route EDI-LCY EDI-LTN EDI-LGW EDI-LHR Route
23 travel data analysis Company A LTN/EDI Cost Reduction 65% Footprint Reduction 17% Low cost carrier 190k cost saving LGW/EDI Cost Reduction 60% Footprint Reduction 10% Low cost carrier 180K cost saving LHR/EDI Cost Reduction 51% Footprint Reduction 15% Premium carrier 150K cost saving
24 impact reduction strategies Employee Engagement Destination pre-planning Behavioural Changes Cost & Environmental Impact Reduction
25 CO2e/km /km travel data analysis Company A LON-EDI: Business Line cost and footprint efficiency comparison /km CO2e/km Most Efficient - LEGAL Least Efficient - HR
26 /CO2e Rank travel data analysis Company A LON-EDI Route: Executive Team cost/footprint efficiency vs company average /CO2e Rank AVERAGE
27 Cost Cost kg CO2e travel data analysis Company B Employee X Financial Year Journey Count 30 Total Cost 4, Employee X Financial Year Potential Saving 40% London to Dublin Air Fares Data cost kg CO2e BA EI FR WX n=475
28 travel data analysis Company B Business Line Common Rail Route Analysis: spend against average journey count Banking Insurance & Investments + 1, HR Finance COO - 2, Sales & Marketing - 2, Business Line Common Rail Route Analysis: 2017 Average booking days in advance journey count Finance HR Banking Insurance & Investments COO Sales & Marketing
29 impact reduction strategies route efficiencies Highlight most inefficient routes Engage with department/employee behaviour change Can this route be feasibly changed? What are options? strategy Internal Carbon Tax Benchmarking and baselining Incentivising
30 conclusions
31 Thank you for your time. James Dent Susterra Founder Susterra Ltd 4-5 Bonhill St, London, UK, EC2A 4BX
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