Corporate business travel 'carbon budgets' loom for airlines

As major companies look at drastic ways to cut carbon emissions from corporate travel, airlines are bracing for a major hit to business-class travel, a key revenue driver, industry executives and experts say. Several companies, such as HSBC, Zurich Insurance, Bain & Company and S&P Global, have already announced plans to quickly cut business travel emissions by as much as 70%. Some are considering a “carbon budget” as they come under growing pressure from environmental advocates and investors to reduce indirect emissions that contribute to climate change. Flights account for about 90% of business travel emissions. That makes it the lowest-hanging fruit for companies setting reductions targets. The airline industry last week committed to reach "net zero" emissions by 2050 here at a meeting in Boston, decades beyond the corporate travel emissions cut targets. "It's going to be hard on airlines and they're going to need to adapt," Kit Brennan, co-founder of London-based Thrust Carbon, which is advising S&P and other clients on setting up carbon budgets. “I think what we’re going to see, funnily enough, is more of an unbundling of business class where you might get all perks of business class without the seat,” he said, referring to airport lounges and nicer meals. “Because ultimately it all comes down to the area on the aircraft and it takes up.”<br/>