Cameron Kelly is advisory lead at Thrust Carbon
Embarking on the quest to measure environmental impact, particularly in corporate travel, can be both captivating and complex. The DEFRA (the UK's Department for Environment, Food & Rural Affairs) Greenhouse Gas (GHG) conversion factors have been your trusty guide in this journey. They serve as the 'basic' standard for converting complex data like distance travelled and type of transportation into a universally understandable carbon output, essentially telling you how much CO2 equivalent is emitted per mile travelled.
However, 2023 has brought about significant changes to DEFRA's factors, published in June, that will impact every corporation using them for reporting. It begs the question: is the DEFRA approach still the best way forward for your travel emissions reporting?
The updates include two significant shifts for aviation emissions:
• Firstly, the aviation multiplier, which considers the broader climate impact beyond CO2 emissions, has been reduced from 1.9 to 1.7. This reflects a new understanding of Radiative Forcing (RF), a mechanism that explains how aviation impacts the climate.
• Secondly, the GHG conversion factors for short and long-haul flights have increased by 21 per cent and 35 per cent respectively. This is a result of a decrease in passenger numbers due to the Covid-19 pandemic.
To fully comprehend these updates, it's vital to understand Radiative Forcing (RF). At its core, RF measures the influence of certain factors, like greenhouse gases, on the balance of energy entering and leaving Earth's atmosphere. In aviation, it's not just about CO2 emissions; other factors like contrails and nitrogen oxides, which also contribute to global warming, are considered.
The recent changes call for prompt and decisive action. When the new factors are applied to the upcoming reporting cycle, comparing 2023 emissions figures directly with the previous year's reporting becomes invalid due to the considerable shift in the RF value. This is because the impact of RF doesn't typically fluctuate annually, so to make a true year-on-year comparison of travel emissions, your multiplier needs to stay constant, irrespective of DEFRA’s updates.
This scenario poses two questions: How should these changes be communicated, and who is responsible for implementing them?
Essentially, this is everyone's challenge. While ideally, the changes should be handled by the travel management company, online booking tool or emissions information supplier, the fundamental responsibility rests with the corporation. The situation mirrors financial accounting; even though an accountant is employed, the ultimate accountability for tax reporting lies with the taxpayer.
In response to these changes, corporations, TMCs, OBTs and emissions information suppliers are faced with two alternatives, each with its own implications and challenges:
• Adapt to a custom DEFRA standard. This would involve retaining the 1.9x aviation multiplier in line with older scientific data, indicating a higher RF. This path, however, might invite potential criticism from stakeholders and necessitate a strategy to update your baseline as scientific understanding of RF evolves.
• Or, redefine your reporting baseline using the updated DEFRA factors. This would necessitate a complete recalculation of your historic aviation emissions in line with the new RF factor. While it maintains consistency in your reporting approach, it could significantly alter your sustainability narrative and prompt a re-evaluation of your sustainability goals. Transparent communication with stakeholders about these extensive changes will be crucial.
Navigating these changes effectively will necessitate strategic planning and action. To provide a sturdy sail for this transition, consider adopting the following three strategies:
1. Develop a non-financial reporting strategy: Analyse the implications of these changes on your sustainability commitments. Collaborate with carbon emissions experts or set up a dedicated internal team to lay the foundation for handling shifts in reporting, now and in the future.
2. Leverage technology and advanced methodologies: Utilise tech solutions that automate tracking and calculating emissions from corporate travel. These platforms are often integrated with advanced methodologies in carbon calculation, which adjust to scientific advancements and sector changes, providing a more accurate reflection of your environmental footprint.
3. Stay proactive: Keep a vigilant eye on the evolving landscape of emissions reporting. Constantly monitor developments in GHG conversion factors and methodologies to ensure your approach remains current and effective.
These strategies will equip you to accommodate DEFRA's updates and fortify a sustainability strategy resilient to future changes. It's important to remember that DEFRA's average-based approach might not offer the most accurate or detailed assessment of individual corporate travel emissions. A customised, flight-specific methodology could present a more precise representation of your environmental footprint.
However, the conversation extends beyond the recent alterations to DEFRA's factors or its suitability for your travel emissions reporting. The focus is on how your organisation will adeptly manoeuvre through similar changes in the future, and possibly consider more advanced methodologies and reporting.
Sustainability is a joint endeavour, hinging on effective collaboration, technological innovation and perpetual vigilance. The recent changes present an opportunity to reshape your sustainability narrative and evolve with the demands of our time. As you adapt to these transformations, remember that the most skilled navigators aren't those who sidestep the storm, but those who learn to sail amidst its waves.
• Note that the Greenhouse Gas (GHG) Conversion Factors are currently under the ownership and management of the UK government's Department for Energy Security and Net Zero. Despite this transition, they continue to be widely referred to as the 'DEFRA factors' in common parlance.