Adam Braun is CEO & co-founder of business travel and carbon emissions management specialist Clarasight
Two
developments reared their head in the first half of the year that don*t, on the
face of it, look like good news for the environment and corporate
sustainability initiatives.
As
he commenced his second term in Washington, US President Donald Trump signaled
a new stance on climate policy while, in Europe, a watering down of the
Corporate Sustainability Reporting Directive was floated.
Both
issues bring challenges and opportunities for buyers and suppliers across
Europe*s business travel sector. While the headlines may suggest uncertainty,
there is ample reason for optimism if we focus on action, adaptability and the
enduring opportunities within business travel that successfully balance costs
with carbon.
The current state of play
In
2025, CSRD officially entered the implementation phase for companies with more
than 1,000 employees, mandating unprecedented levels of transparency,
forward-looking target-setting, and accountability for carbon emissions across
global operations, including business travel.
But
the EU*s Omnibus package, now moving forwards, aims to streamline the most
burdensome requirements of the original CSRD legislation, reining in its scope
and reducing the number of companies to which it applies, from an estimated
50,000 to some 10,000.
Simultaneously,
we are also seeing an aggressive push by the Trump-led US government to reduce climate-related
policies. Many in the travel industry now find themselves asking: ※So what does
this all mean for business travel professionals and sustainability leaders?§
While it*s possible that a subset of suppliers and
corporates could delay setting or achieving climate targets due to the US
administration*s stance, the data suggests most CFOs still aim to invest
more, not less, in sustainability in 2025 in spite of Trump*s
environmental policy.?Indeed, 92 per cent of CFOs expect to increase investment in
sustainability initiatives in 2025, according to a survey by global consulting
firm Kearney published in March.
Meanwhile,
the intent of the Omnibus package is to reduce the reporting burden on companies
and instead sharpen focus towards action, allowing organisations to concentrate
on material, informative data and implementations rather than simply producing
lengthy annual reports.
Fewer
companies will face mandatory reporting, but those in scope (ie large
enterprises) will need to deliver more focused, credible sustainability data. Enterprises
will need to marry granular, decision-useful travel emissions data with
operational travel data 每 to support both historical reporting and build
credible go-forward plans.
Sustainability teams will increasingly look to partner with travel
leaders to build credible plans and implement systems of action that align
carbon reduction with cost efficiencies. Taken
as a whole, we are entering a new era of carbon and cash accountability 每 one
that will be shaped less by political consensus and more by business foresight.
The business benefits of getting this
right
The
pressure is real, but so is the opportunity. Investors are demanding the demonstration of credible paths towards sustainability targets, not just glossy
reports.
Customers
每 especially those with suppliers in travel-heavy industries like professional
services, financial services and tech 每 are embedding these questions into most
RFPs when selecting suppliers. And the global regulatory tide, from CSRD to the
ISSB (International Sustainability Standards Board) and beyond, ensures that
inaction in one market won't shield a company from exposure in another.
The
companies that lead in this moment will be those that shift from reporting to
real planning 每 embedding carbon forecasting, distributed carbon targets and
decision-making tools directly into how travel is planned, approved and
managed.
We*re
already seeing this play out: forward-thinking enterprises are deploying carbon
budgets for travel, enabling regional leaders to manage emissions like they
manage cash.
With clear guardrails and real-time visibility, we*ve seen case
studies of enterprises successfully reducing 88 per cent of business class bookings
without even changing travel policies 每 proving that smarter planning and
targets can yield much better cash and carbon savings than the traditional
approach of mandated but often unfollowed travel policies.
Putting it into practice
To
thrive in this new landscape, corporate travel stakeholders 每 buyers and
suppliers alike 每 must adapt. For
certain suppliers and enterprises, sustainability will shift from a top
priority to a secondary one, which means achievement or development of targets
will slip in the near term. This will likely be the case for organisations
whose leadership does not believe sustainability equates to business value nor
does climate change create any risks to their business.
However, most will
likely continue to invest at their current levels or accelerate investment ahead, and companies
seeking to create a business advantage through advancements in sustainability
should consider three key strategies.
Treat carbon like currency: Start
planning travel emissions the same way you plan your spend. Set carbon targets
that can eventually become budgets by region, team or business unit. Track
performance through modern purpose-built software and empower budget holders
with data to make smart tradeoffs between cost, carbon and business impact.
Shift from annual reporting to business
planning: Most
companies only measure emissions after the fact. That*s no longer enough.
Modern sustainability planning means modelling predictive travel scenarios in
advance and projecting how policy, supplier mix, cabin class and frequency will
affect both emissions and costs. Tools that support this will become as
essential as your TMC or OBT.
Move beyond dashboards to integrated systems
of action: Every senior leader in a business knows how to manage the
constraints of their team*s cash to hit their collective goals. In a world
where retaining business with key customers means emissions must also be
managed to a target, these leaders need more than historical reports 每 they
need integrated systems of action that dynamically surface insights to power
smarter, faster real-time business decisions.
The bottom line
This
emerging era is clearly asking more from travel leaders than ever before. The travel programmes that align
carbon and cost planning, that leverage modern technologies to ensure spend and
carbon data are both first class citizens, and that successfully partner with
best-in-class solutions to enhance cost-efficient, sustainable decision-making#
they will be the ones that define the coming era of business travel.