American Express Global Business Travel (Amex GBT) has announced the launch of integrated emissions-based carbon pricing.
The new solution will see customers able to pick a carbon calculation methodology to apply a carbon fee to their air travel.
These fees can be visible to business travelers as they shop and can appear on their invoice, helping companies inform employees about their carbon impact and corporate sustainability initiatives.
Some Amex GBT clients already use carbon pricing to apply flat or dynamic fees but the new technology enhancements announced will mean customers can now track the carbon emissions specific to their flights and funnel investment towards sustainability initiatives.
A price on carbon can seamlessly create a self-sustaining fund for decarbonisation projects such as sustainable aviation fuel (SAF), electric vehicles (EVs), research & development (R&D), and more.
It will work by the customer selecting a carbon calculation methodology, popping aprice on carbon using the new emission-based fee, a flat or categorical fee and then growing a fund for sustainability initiatives e.g. SAF, EVs or R&D.
Lucian Alexandru, global procurement category head at Sanofi, said: “Emissions-based carbon pricing enables us to combine economics, sustainability and technology to strengthen our business travel program and boost funding to invest in decarbonisation initiatives such as SAF.
With support from Amex GBT, we are closely aligning our business travel program with company-wide efforts to reduce emissions, while also helping accelerate and prepare for a low carbon future.”
John Sturino, SVP of product and engineering of Amex GBT, said: “Carbon pricing is a proven mechanism that can help companies make progress towards their sustainability objectives.
“Our innovative 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.”
Nora Lovell Marchant, VP of global sustainability, Amex GBT, added: “Carbon pricing by way of business travel can help shift companies – and the aviation industry at large – towards a more sustainable future.
“Carbon pricing is imperative, but alone insufficient. We need to combine carbon pricing with decarbonisation.”
She said: “Making carbon more expensive must be combined with making clean more affordable.”
