COMPANY: Arcadis is a design and engineering consultancy headquartered in Amsterdam
COMMITMENTS:
Achieve net zero GHG emissions by 2035, reflecting a 90 per cent
reduction in absolute emissions (vs 2019) • Reduce overall business
travel emissions by 35 percent by 2025 • Reduce air travel emissions by
50 percent by 2025 • Transition company fleet to electric vehicles by
2030
TRAVELLERS: 10,000
KEY ACTIONS: Implemented
carbon budgets for travel and developed internal language to
communicate the value of carbon to travelers • Introduced a set of
tools to shift responsibility for managing travel emissions from
top-down to a bottom-up approach, giving insights on department and
traveler level • Tied executive remuneration to carbon emissions
reduction goals
Accurately measuring the carbon footprint of business travel
is a critical step in any emissions reduction strategy, but so too is
quantifying and communicating the value of carbon. So when Amsterdam-based
design and consulting firm Arcadis committed to achieving net zero carbon
emissions across its value chain by 2035, it quickly set about engaging its
c.10,000 frequent travelers around its reduction goals and equipping them with
the tools to manage their emissions.
After consolidating travel data and introducing reporting dashboards that allow individual travelers
to track their carbon footprint, the firm recently implemented carbon
budgets for travel along with a set of tools to forecast and manage carbon
‘spend’.
This saw the travel management and sustainability teams
collaborate with the company’s finance department to align financial planning
with carbon reduction goals. Tina Armstrong, global sustainability director at
Arcadis, explained that building a carbon budgeting process alongside finance
helped the company develop a ‘language' around the value of carbon that has
since been adopted across the firm.
“The language we use internally is ‘carbon efficiency,’ like
cost efficiency, because it should be treated like cost. It should have a
planning process. It should go into your budget and you should look at it right
alongside your euros or dollars. So that's really helped it become more real,”
she said.
PROVIDING THE TOOLS
To help tie carbon and cost together, Arcadis developed
proprietary tools built on both data from sustainability specialist Thrust
Carbon and on its own trip data and financial metrics.
“Carbon as a currency is still very foreign for a lot of
people… so from that question we started to look into what we needed to develop
in order to help people,” said Jill Smit, Arcadis' global sustainability
manager for travel.
A global carbon travel budget was introduced halfway through
2024 based on the prior year’s travel activity, Smit explained, and travelers
were subsequently asked “tell us what you need” to enable the travel and
sustainability teams to roll-out the necessary management tools.
These include a pre-trip emissions forecasting tool that
uses flight emission averages to estimate the CO2 footprint of a particular
route and a 'zero-based' travel carbon budgeting tool, which combines cost and
emissions data to optimize travel planning in line with the company's net zero
objectives.
“The budgeting tool is fairly high level. It provides region
pairs as opposed to city pairs, so we would have Europe to the U.S. as a pair,
or Europe to Asia,” Smit explains. “It doesn't need to overwhelm people. It
needs to give them the sense of ‘OK, I can roughly do two or three trips to the
U.S. [this year]’ because they don't exactly know which project they're going
to be doing.”
The actual travel bookings are consolidated by category and
then logged in a CO2 reporting dashboard powered by Thrust’s Engage platform.
It enables travelers to track emissions related to business travel as well as
gain insights on the potential impact of modal shift, like taking the train
instead of a flight on a particular route, for example.
In 2024, the company also updated its carbon emissions
methodology by applying a radiative forcing multiplier (which accounts for the
indirect effects of the release of greenhouse gasses at altitude, such as
flight contrails) and switching from the commonly used DEFRA calculation to
‘DEFRA+’ which, according to Arcadis’s 2024 Integrated Report, uses more recent
aircraft and load factor data to calculate flight emissions.
As a result, the company’s business travel emissions in 2024
increased one percent year-on-year to 32,300 tonnes of CO2 equivalent, but
remained well below its 2019 baseline of 46,000 tCO2e.
The Arcadis travel program doesn’t include an approvals
process within its booking tool, so close collaboration across teams was
“essential” for communicating travel policy changes and embedding sustainable
practices, Smit said.
Instead, real-time messages and ‘nudges’ appear in the
company’s booking tool via FCM Extension to encourage travelers towards
sustainable choices.
Training sessions were also conducted to help senior
leadership allocate department-level carbon budgets, while educational videos
helped travelers understand how to use their new carbon management tools.
The company’s annual travel emissions report and quarterly
updates are sent to approximately 9,000 travelers, with a 35 percent engagement
rate. “We've been tracking [engagement with reporting] over the year and we
have actually seen a massive uptake compared to the first iteration. Here in
the Netherlands, for example, we had a 42 percent uptick at the end of the
year,” Smit said.
CONTROL SHIFT
Last June, Arcadis also rolled out its Travel Sustainability
Hub, a central source of information where all travelers can access carbon
accounting methodologies, calculators and resources for low-carbon travel.
“We needed to make sure that we were building accountability
within the business and enabling the people who are actually pressing the
booking button to make the right decision to address business travel
emissions,” said Armstrong.
“For us, this was a very deliberate transition to help us
understand where the business needs to grow, where the business has the
greatest client need, or where they're doing their field work. It's important
that the business makes those decisions in ways that enable both growth and the
reduction of emissions.”
She added: “We spent quite a bit of time understanding [the
hierarchy] within the business for who needed to be checking emissions, how
frequently, and then how that would play out in terms of budgeting.”
Communication and training have proved critical in this
transition, Armstrong explained, primarily when it comes to concerns about
reduced travel affecting client projects. “We're trying to give [travelers] the
tools and the knowledge to become conversant in what carbon efficiency really
means—helping people understand that one longer trip has a lot less emissions
than four short trips. Additionally, it’s about improving soft skills upfront
to enhance their virtual meetings and collaboration capability,” she says.
This is in line with the company’s ‘virtual first’ travel
policy, Armstrong said, followed by a ‘travel with purpose’ approach to all
trips. “We try to walk them through specific examples of how they could have
done it a little bit more efficiently and that does seem to trigger some
acknowledgment that this is not a travel ban.”
Underpinning that conversation with data has been an
“essential” part of the process, Armstrong says. “Enabling the viewing of data
on a regular basis [and] in a simplified format—where people can see their own
[carbon emissions] data and leaders can see their team's data—that really makes
a difference.”
RETURN TO BTN'S 2025 BUSINESS TRAVEL SUSTAINABILITY REPORT