In This Article:
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter.
Dive Brief:
-
American Express Global Business Travel, which provides corporate travel management services, launched an emissions-based carbon pricing tool to help business travelers calculate their carbon footprint and direct investments toward sustainability initiatives.
-
The travel company said the tool will allow users to select a carbon calculation methodology from those offered by the U.S. Environmental Protection Agency, International Air Transport Association and CO2 Connect, among others, to price the carbon emissions generated during their travel.
-
Amex GBT — which is backed by Amex but operates separately from the financial services group — said last week that these carbon fees can be used to create a fund that supports green initiatives, such as sustainable aviation fuel, electric vehicles, research and development and other decarbonization projects.
Dive Insight:
Amex GBT’s carbon pricing tool also allows users to pick calculation methodologies from the International Civil Aviation Organization, French Agence de l’Environement et de la Maitrise de l’Energie, U.K. Department for Business, Energy, and Industrial Strategy and the U.K. Department of Energy Security and Net Zero. However, the travel company noted in last week’s release that every company should make its own decision about what methodology best suits its “internal policies and procedures and any applicable laws and regulations.”
The New York City-headquartered business travel company also said aligning carbon pricing with the emissions generated by a specific traveler or employee’s flight at the time of sale can boost employee engagement and “incentivize more sustainable economic decisions.”
“Carbon pricing is a proven mechanism that can help companies make progress towards their sustainability objectives,” Amex GBT Senior Vice President of Product and Engineering John Sturino said in the release. He added that the company’s software “can now help customers place a price on carbon and direct investment toward lower-carbon solutions, empowering them to make more informed decisions and address their carbon footprint.”
Amex said in the Jan. 21 release it can provide companies an invoice with the calculated “carbon fee,” informing corporations about their impact, helping corporations calculate their employees’ carbon impact and giving them the option to put the funding earned toward decarbonization programs.