Business Travel Addressed In GHG Protocol's New Emissions Reporting Standards

The Greenhouse Gas Protocol released new standards meant to help organizations report their GHG emissions, including the environmental impact of business travel. Developed by the World Resources Institute and the World Business Council for Sustainable Development, the Corporate Value Chain (Scope 3) Standard includes guidance on how to calculate and track emissions from air travel, car rentals, business vehicle use and rail trips. As expected, GHG emissions calculations related to employees' hotel stays are addressed only as an optional element.

According to GHG Protocol, "often, the majority of total corporate emissions come from scope 3 sources," which generally are considered indirect emissions "that are a consequence of the activities of the reporting company, but occur at sources owned or controlled by another company," including travel suppliers.

The Corporate Value Chain Standard encompasses 15 categories of scope 3 activities, including business travel, defined as "transportation of employees for business-related activities during the reporting year (in vehicles not owned or operated by the reporting company)."

One example of "primary data" used to calculate business travel emissions is "carrier-specific emissions factors," derived from an airline's fuel consumption per passenger on a given flight. An example of "secondary data" is the estimated distance traveled.

The Corporate Value Chain Standard also addresses employee commuting, which may generate emissions from sources similar to those included in the business travel category, but also may cover buses, for example.

GHG Protocol cautioned that changes to an organization's scope 3 inventory "over time may not always correspond to actual changes in GHG emissions to the atmosphere. ... For example, a reduction in business travel would reduce a company's scope 3 emissions from business travel. However, how a reduction in business travel actually translates into a change in GHG emissions to the atmosphere depends on several factors, including whether another person takes the 'empty seat' or whether the unused seat contributes to reduced air traffic over the longer term. Generally, as long as the accounting of scope 3 emissions over time recognizes activities that in aggregate change global emissions, any such concerns should not inhibit companies from reporting and tracking their scope 3 emissions over time."

GHG Protocol developed the new standards, which also include the Product Life Cycle Standard, by collecting feedback from more than 2,300 business leaders, non-governmental organizations, academics and policymakers from 55 countries. Sixty companies "road-tested" the new standards.

"These standards are a breakthrough for business," according to a statement attributed to WRI interim president Manish Bapna. "For the first time, companies will be able to measure and manage the full scope of emissions in their value chain and products, so they can take advantage of new opportunities as they reduce greenhouse gases. The new standards will help move businesses and reporting programs to one harmonized global reporting framework."