This requirement is part of the Netherlands Climate Agreement and it applies to both business travel and commuting. The Work-related Mobility of Persons Decree and its reporting obligation aim to reduce CO2 emissions caused by work-related mobility by at least 1.5 megatons by 2030.

The Agreement presents the shift from air to rail as a solution to reduce emissions. It states that all trips for distances under 700 km, where travel time from door to door by train is <150% the travel time by plane, should be done by rail. 

There will be an assessment of the reported data in 2026. If evaluation of the reports shows that the collective target of a 50% reduction in 2030 will not be achieved, the Dutch government will impose norms on a maximum of CO2 emissions per km, with which individual companies will have to comply.  

The members of the Anders Reizen coalition, a group of more than 70 large companies with around 550,000 employees, have pledged to follow the Dutch government requirements to shift to rail and reduce emissions.

Read more about our recommendations regarding the shift from air to rail here.

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The requirement applies to over 5,000 companies operating in the U.S., including both domestic and foreign companies.

Disclosure of climate-related targets and goals that materially affect the company, as well as activities to mitigate climate-related risks including transition plans or internal carbon prices, will be required starting in 2025.

Disclosure of material Scope 1 and Scope 2 greenhouse gas emissions from a company’s own operations and its energy purchases – a commonly used metric to assess a company’s exposure to climate-related risks – will be required starting in 2026.  Coverage of Scope 3 emissions (including those related to business travel) was considered in the initially proposed rules, but removed from the final rules.

The rules are a step forward for more consistent, comparable, and reliable information about the financial effects of climate-related risks on a company’s business, and about how the company manages those risks.

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Transport decarbonisation is a key pillar of this plan. Among the measures,  the government asks its staff to take the train instead of the plane for journeys that can be made in less than 4 hours by train as from January 2024.  

The French government explained this measure by stating that  “Air travel is the biggest emitter of greenhouse gasses. A drastic reduction in this mode of travel is therefore necessary to reduce the State’s carbon footprint. To achieve this, we need to promote less carbon-intensive alternatives such as the train, but also by reduction in the total number of trips.”

The State’s sobriety plan has been set out in a circular from the Prime Minister detailing the 20 mandatory sobriety measures within the State. Some of these measure include a 2024 target, aiming at a reduction of 20% of outbound journeys by air compared with 2019. The ambition of this target increases to a reduction of 30% by 2027.  More can be found in the circular under the Measure 5, Action 5. 

Read more about our recommendations regarding the shift from air to rail HERE

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The US is joining a team of progressive countries (Switzerland, France, the Netherlands) also incentivising rail travel for their civil servants. 

The US government is also requiring the federal employees to use more electric cars and public transport when traveling locally.

More details here

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This new requirement, which affects more that 5,000 companies in California, is groundbreaking because the CA SB253 (23R) bill changes he way American companies report. Companies earning at least $1 billion per year and doing business in the state will need to to disclose their scopes 1, 2 (carbon is produced by their operations and electricity use) by 2026, and scope 3 emissions by 2027.

Disclosing “Scope 3” emissions means also reporting emissions generated by their supply chains and customers. This covers emissions related to business travel, including air travel.

While the federal climate disclosure rules by Securities and Exchange only applies to publicly traded companies and wouldn’t require all of them to disclose scope 3, or supply chain emissions, this new California bill also applies to privately held companies and would require full scope 3 disclosure.

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Net zero and transition plans have become new norms in private sector ambition: an increasing number of organisations are making public commitments to reach net zero. 

The TPT aims to help companies and the financial sector produce science-based climate transition plans that are credible, robust, and “investable”. It details  sectoral Transition Plan Templates, covering short, medium, and long-term targets, specific actions for climate mitigation and adaptation, capex plans, specific sectoral considerations such as fossil fuel phase-out plans, and plans for scaling up new investment areas. 

TPT’s Disclosure Framework is based on 3 principles: Ambition, Action and Accountability. A transition plan should outline ambitious objectives and priorities for contributing to and preparing for a rapid and orderly economy-wide net zero transition. The strategy should cover the whole entity, consider the full range of levers that the entity has available, meaning, any emissions reduction target should consider Scope 1, 2, and 3 emissions.

Across sectors, entities may establish internal policies that drive decisions and actions to align with their strategic ambition and the stated objectives and priorities. Among different policies regulating entities’ internal operations, one reducing business travel can help achieve their commitments.

Overall, the launch of the TPT highlights the growing importance of climate action for companies and the financial sector, and underscores the need for companies to take responsibility for reducing their emissions to support the global fight against climate change.

UK Financial Conduct Authority Regulation

The Financial Conduct Authority (FCA) is due to consult on proposals for mandatory sustainability disclosure requirements, based on anticipated UK-endorsed International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards. This include Climate Transition plans by companies. 

The intention is for these new requirements to enter into force for accounting periods on or after 1 January 2025 and reporting to begin in 2026.

The FCA is also set to consult on the introduction of guidance for listed companies’ transition plan disclosures which will reference the final outputs from the TPT.

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Notably, the law also addresses emissions from international aviation and shipping that refuel in Switzerland, ensuring their inclusion in the overall reduction targets. To ensure progress, the Act sets ambitious interim targets for emissions reduction over specific periods.

Moreover, Article 5 requires companies to align with the net zero target by 2050, covering both scope 1 and 2 emissions. To facilitate this transition, companies are encouraged to develop transition plans, and those submitting plans by 2029 will receive support from the Federation.

While the law has been passed, the Swiss government is currently determining the date of its entry into force. It signals the nation’s determination to build a sustainable and resilient future, calling upon companies, industries, and individuals to join forces in reducing emissions, particularly in the context of business travel, where flying represents a significant climate challenge.

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The move is part of France’s wider goal to achieve carbon neutrality by 2050 and reduce 40% of greenhouse gas emissions by 2030. Exceptions to the ban can be made for connecting flights or when no other transportation options are available. 

This can be a call for other EU countries to adopt similar measures, like Austria has done recently. Greenpeace argues that this would impact a third of Europe’s busiest short flights and eliminate 3.5 million tons of carbon emissions per year.

Short-haul flights outlawed – aviation emissions reduction – shift to rail

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The plans intend that:

• No planes will be allowed to land between midnight and 5am.
• No planes will be allowed to take off between the hours of midnight and 6am.
• The noisiest types of aircraft will not be allowed.

• Private jets will no longer be welcome.
• An intended further runway will not be built.

Airports and private jet companies may need to adapt to this changing landscape and find new ways to operate sustainably.

The initiative has been blocked by court ruling. 

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The move is part of the government’s efforts to enhance sustainability in the aviation sector as outlined in the “Aviation Memorandum 2020-2050.” By setting clear and enforceable limits on permitted CO2 emissions, the new law aims to ensure that climate targets are met. Although specific thresholds for each airport are yet to be determined, the caps will remain fixed for several years, allowing airports to compensate for any excess emissions. The implementation will also explore measures such as monitoring and reporting of fuel data to regulate and forecast CO2 emissions effectively. The cap is scheduled to take effect in 2025.

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