Is Carbon Pricing the Future of Sustainable Business Travel?

In the world of corporate procurement, a quiet revolution is brewing — and it's all about transforming business travel from an environmental liability to a catalyst for sustainability.

The numbers are eye-opening as business travel can represent up to 75% of profit on some flights, making it a perfect lever for meaningful change.

The World Bank reports that 24% of global emissions are now covered by some form of carbon pricing, with revenues exceeding US$100bn.

How carbon pricing works

Abbott outlines a three-stage approach that makes sustainability financially strategic:

1. Apply a fee to air transactions (options include):
   • A flat fee per flight
   • A categorical fee based on distance or class
   • An emission-based fee aligned with the company's carbon calculation methodology
2. Scale the fund based on the environmental impact of business travel
3. Reinvest funds into decarbonization initiatives like sustainable aviation fuel (SAF), electric vehicles and research and development

Paul Abbott, CEO of American Express Global Business Travel, is throwing down the gauntlet to businesses worldwide: "Whether your company is advanced or in the preliminary stages of its carbon pricing journey, business travel is an easy place to start. 

"Coupling carbon pricing with decarbonisation is how the world can achieve net zero," Paul adds. 

For procurement professionals, this isn't just an environmental strategy — it's a financial innovation. 

The strategy is particularly powerful for small and medium enterprises (SMEs).

"For SMEs, carbon pricing could prove even more valuable in that it can help a company build a sustainability budget where one does not exist," Paul explains.

The procurement implications are profound. Instead of viewing sustainability as a cost centre, companies can transform business travel into a self-sustaining fund for environmental initiatives. Travel becomes not just a business necessity, but a strategic tool for driving corporate sustainability.

Lucian Alexandru, Global Procurement Category Head at Sanofi puts it perfectly: "Emissions-based carbon pricing enables us to combine economics, sustainability and technology to strengthen our business travel programme."

How is Amex leading the way? 

Amex Global Business Travel is now helping businesses calculate and apply carbon fees to air travel, then reinvest those funds into decarbonisation projects. 

Amex proves carbon pricing is no longer just an environmental consideration — it's a strategic procurement imperative. By embedding these costs into business travel, companies can:

• Create transparency around emissions
• Generate funds for sustainability initiatives
• Demonstrate corporate responsibility
• Drive innovation in low-carbon technologies

As businesses navigate an increasingly complex global landscape, this approach offers a pragmatic path to combining economic growth with meaningful climate action. It's procurement strategy meets environmental strategy — a powerful combination for forward-thinking organisations.

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