by Matt Davies
March 21, 2024
Despite claims of environmental consciousness, some of the world’s largest corporations are lagging behind in setting targets to reduce corporate flight emissions, according to the latest Travel Smart analysis that ranked 328 US, European and Indian companies based on 11 indicators relating to air travel emissions, reduction targets, and reporting.
The third edition of the Travel Smart ranking reveals that 25 multinational corporations that are responsible for 36% of business travel emissions have yet to outline plans to mitigate their carbon footprint from corporate flights — “despite repeatedly promoting their green credentials to the public and shareholders” as Travel Smart writes. IBM, Microsoft, Volkswagen, Siemens, Boeing, and Google are among the top flyers without targets.
Out of the 328 companies assessed in the ranking, merely 57 have committed to reducing their business travel emissions, including 15 from the US. While many have voiced intentions to align with the Paris Agreement, only seven more companies have established targets since last year.
JP Morgan Chase and Goldman Sachs, prominent in the finance sector, have now gone three consecutive years without setting and acting upon targets, resulting in low rankings. Walt Disney and Netflix, along with GE in manufacturing, and retail giants Amazon and Walmart, found themselves at the bottom of the list in their respective sectors.
Among the 68 American companies in the ranking, merely two have achieved the prestigious A category (Pfizer and Oracle), with just 13 earning a B grade. These exemplary companies demonstrate that innovative changes and ambitious targets are feasible through the adoption of alternative transport modes or enhanced virtual collaboration.
Conversely, a majority of US companies lag behind, with 48 earning a C grade and six receiving a D.
Denise Auclair, Transport & Environment’s corporate travel manager, highlighted the disproportionate responsibility of US flyers in reducing flying emissions:
“US 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 IBM and Johnson & Johnson from doing the same? Our research shows a difference between companies committed to sustainability and others that are, at best, paying lip service to their climate responsibilities.”
The analysis underscores a striking disparity within industries, where some companies demonstrate ambitious commitments to reducing flight emissions while others remain stagnant. Oracle, Adobe, and Salesforce, for example, have embraced more proactive approaches, setting targets to curtail their air travel emissions; Salesforce aims to halve its business travel emissions intensity by 2030 but also ties a portion of executive bonuses to meeting interim targets toward this goal.
The consequences of inaction loom large as companies risk reverting to pre-pandemic levels of flying, Travel Smart notes. As data shows, companies without targets, such as Johnson & Johnson and Merck, have nearly rebounded to 2019 levels of corporate travel. In 2019, Johnson & Johnson’s business travel emissions were “equivalent to the carbon footprint of close to three daily flights for a whole year from London to New York.”
In stark contrast, Pfizer — which has set ambitious targets — produced 78% fewer emissions in 2022 than it did in 2019.
Even companies that consider themselves to have progressive stances on sustainability, such as Apple and Cisco, have been called out for their lack of credible plans to address travel emissions. While these corporations boast ambitious goals like achieving net-zero carbon footprints, they “fail to tackle air travel emissions” according to Travel Smart’s analysis.
The lack of targets among many corporations not only contradicts their green pledges but also raises concerns about their genuine commitment to reducing air travel emissions. Despite numerous companies pledging alignment with the Paris Agreement, the slow adoption of targets indicates a lack of urgency and authentic dedication to sustainability.
“The Travel Smart Ranking isn’t just a ranking, it’s a call to action,” said Adam Braun, CEO & Co-Founder of Clarasight. “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.”
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This article was originally published on IMPAKTER. Read the original article.