The Corporate Sustainability Reporting Directive (CSRD) is set to become a crucial piece of legislation affecting travel management for clients working in the Energy & Marine sector over the next couple of years.
Launched by the EU earlier this year, energy companies working in Europe are required to comply with the directive.
This reporting is crucial as the energy sector proactively transforms towards sustainability and an essential part of that reporting will be Scope 3 emissions, which includes crew travel.
The benefits of reporting
An organisation that effectively works towards Environmental, Social and Governance (ESG) goals will be able to see the impact this can have for both its business and the environment. And reporting effectively on these goals is a way to build trust with both stakeholders and investors, as well as create sustainable solutions for energy businesses.
Reed & Mackay Global Sustainability Director Chris Truss explains what the CSRD will mean for companies organising crew travel management and how they can work towards meeting ESG targets on travel.
What is the CSRD?
Created to modernise and strengthen the rules concerning the social and environmental information that companies have to report, European Union law already requires all large and listed companies to ‘disclose information on what they see as the risks and opportunities arising from social and environmental issues and on the impact of their activities on people and the environment’.
This now applies to a larger range of companies, who will be required to report on their sustainability targets.
Is the CSRD already in effect?
For reports to be published in 2025, the first companies had to apply the new rules for the first time in the 2024 financial year. This included companies listed in an EU-regulated market with 500 or more employees.
As of 2026, the directive will apply to large companies not already mandated. Then from 2027, small- and medium-sized companies will also have to report. And it’s not only EU companies that are affected. Non-EU companies with EU subsidiaries will have to report from 2028 and it will also come to businesses that are headquartered in the UK but do business in the EU.
Why is this legislation important for businesses in the energy sector?
As we approach the UN’s Net Zero 2050 target organisations across the globe can expect stricter sustainability regulations coming in over the next few years. Furthermore, as laws around sustainability continue to evolve and tighten, if companies are monitoring sustainability goals, they’ll be better positioned than companies that aren’t.
What areas does the CSRD require reporting on?
The criteria ranges from a company’s greenhouse gas reduction targets and its sustainability risk strategy to due diligence and incentive schemes. Additional criteria to report on includes greenhouse sustainability governance, policies and transition plans.
How can companies reduce the environmental impact of crew travel?
If you’re organising crew travel, look at where you can introduce educating employees on how travel choices impact the company’s carbon footprint. Consider working with suppliers offering more sustainable choices and choose ‘green’ fares. As data can help inform businesses to make those choices around sustainable travel, having in-depth insights that impact the carbon footprint of an organisation’s travel programme are essential.
Tracking and reporting on CO2 emissions are much more than a nice-to-have and are now a vital part of any crew travel programme. This, in turn, means travel managers and bookers will have a key role in reaching their organisation’s ESG goals and what is implemented in travel policies. With these stricter rules coming in around reporting, they will also have the chance to educate and inform the wider business about how they can reduce the organisation’s carbon footprint via their travel programmes.
How can businesses report accurately on their environmental impact from travel?
Technology that allows businesses to monitor progress towards sustainability goals, which provides real-time tracking of emissions data and gives business leaders the opportunity to adjust business practices where needed, should be integrated.
How can Reed & Mackay help?
Reed & Mackay clients – whether using our proprietary online or offline booking tools – have the opportunity to compare and select more sustainable choices when booking travel.
Clients are able to access pre-trip granular CO2 results, which provides insights into the unique CO2 footprint of every travel option. This means bookers can compare this data with the trip average and find the more sustainable choice easily.
These carbon-aware insights are available for entire journeys, from airlines and trains to cars and hotels. The data also highlights details such as aircraft type, load factors and routing, while hotels can be selected by sustainability performance ratings. And ground transportation can be selected based on fuel, engine and car type.
In addition, clients now have access to the latest technology updates that form part of a series of user-experience enhancements. The new CO2 features – being rolled out across Reed & Mackay’s proprietary platforms – allow companies to design and implement custom travel policies along with a corresponding approval flow based on projected CO2 emissions across air, rail and ground travel, and hotel stays. This enhancement gives travellers better visibility of travel options that are ‘in policy,’ whether booking via R&M/Book or with a Reed & Mackay consultant.
Having this data to hand means it’s easier to choose travel that reduces Scope 3 emissions and hits ESG goals, while not having to compromise on traveller experience.
Get in touch
Mail DavidHutton@reedandmackay.com to discuss all of your meetings and events management needs.
