SAP Concur Survey: Sustainable Travel a Focus for 86 Percent of Asia Pacific Businesses

[India, 1 June 2022] – A new study by SAP Concur, a provider of integrated travel, expense and invoice management solutions, found that almost nine in ten businesses (86%) across the Asia Pacific (APAC) say their companies are actively considering sustainability when managing corporate travel.

This commitment to environmental sustainability is highlighted in new research released ahead of World Environment Day on June 5. The SAP Concur APAC Sustainability Survey was conducted by Consulting Group – Asia Insight, polling 648 senior and mid-level managers across corporate travel, finance, HR, procurement, and sustainability in Australia, China, India, Malaysia, Singapore, and South Korea.

According to the Air Transport Action Group, aviation is responsible for 12% of CO2 emissions from all transport sources. The World Resources Institute reported that business travel represents about 15% to 20% of global travel.

SAP Concur APAC Sustainability Survey

See the report

How is APAC committing to sustainable travel?

Many companies have moved beyond stating sustainability principles and are putting them into practice through corporate travel policies—often with direction from leadership.

About 56% of respondents said “senior leadership” is driving the sustainability agenda for corporate travel. This group ranked ahead of “employees” (47%), “those responsible for sustainability initiatives” (47%), and “those responsible for corporate travel” (41%).

The survey also suggests organisations are investing in sustainability outcomes. More than half of APAC firms surveyed said they committed resources to championing sustainability. About 34% of firms have someone who manages sustainability as part of their role, while 21% have dedicated personnel handling sustainability.

“The research findings were a significant departure from the pre-pandemic days where Asia Pacific organisations were more concerned about travel cost savings than the environmental impact of their actions,” said Matthew Goss, Senior Vice President & General Manager, Asia Pacific and Greater China, SAP Concur.

“I believe that as flying time reduced, and emissions dropped during Covid-19 lock downs, organisations realised the possibilities of sustainable travel, and stakeholders became more motivated to take action. This shift of focus to bigger picture issues is a pivotal moment – not just for businesses to run better and be more profitable, but for more sustainable business practices to take root.”

Such business practices include enabling pre-trip approvals and providing sustainable travel and accommodation options for employees to select.

Why is technology key to overcoming implementation challenges?

APAC businesses are prioritising sustainable travel for efficiency, brand and cost goals, but they continue to face budget, engagement, tooling and policy challenges—driving many to look to technology for support.

Despite their intention, businesses outlined a range of priorities for sustainable travel, based on goals to:

• Increase operational efficiency (70%)
• Have positive brand awareness and reputation externally (67%)
• Cut costs (66%)

Some companies also believe sustainable travel policies could become a competitive differentiator in attracting new talent in a competitive market (63%).

Challenges remain. Hurdles organisations faced in implementing a sustainable travel system included:

• A lack of budget (37%)
• A lack of employee engagement (32%)
• A lack of professional tools to visualise the environmental impact of travel (31%)
• A lack of policy flexibility and adaptability (31%)

Many APAC organisations (71%) already recognise they need to harness technology to become sustainable effectively. About 38% currently have software in place to support corporate travel and expense management, while 33% plan to acquire such software “very soon”.

About 60% of APAC respondents said they have good or excellent business travel data for their software to analyse.

Staying Grounded

Trains and electric vehicles (EVs) are more sustainable modes of travel than airplanes, in terms of carbon emitted per traveller.

The survey findings suggest that, despite APAC countries being separated by water, these modes of transportation are expected to grow across the region in coming years:

• There is awareness: About 81% of respondents know that travelling by rail is more sustainable than travelling by air.
• There is will: Where train travel is applicable, more than three-quarters (76%) of respondents are willing to shift from plane to train for at least 20% of existing travels. This is especially relevant for corporate travellers in China and Japan, where high-speed train routes can offer greater convenience and productivity than flying.
• There is incentive: About 65% of respondents said they are currently reimbursing employees for EV charging costs, and another 16% plan to do so “very soon”.

“It’s clear from the study that organisations are brimming with interest and intent to embrace sustainable travel,” said Goss. “For those that lack implementation know-how, technology could point a way forward – in terms of helping guide employees to sustainable itinerary options, tracking emissions, and ultimately formulating more efficient and sustainable travel strategies. Firms should examine how these tools can support their broader sustainability goals.”

SAP Concur solutions aim to enable sustainable travel management to help organisations make informed travel choices, track and manage results, and measurably demonstrate their actions’ impact to the environment. When complemented by SAP’s sustainability tools, organisations can be empowered to measure, manage and mitigate emissions across their whole business.

Key findings from the study can be found in the infographic here.

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The SAP Concur APAC Sustainable Business Travel Survey, conducted by Consulting Group – Asia Insight, covered senior and mid-level managers in Corporate Travel, Finance, HR, Procurement and Sustainability residing in Australia, China, India, Malaysia, Singapore and South Korea. There were 648 respondents in total (slightly over 100 per market). Organisation headcount breakdown: 1,000 and above: 49%; 500-999: 25% and 100-499: 26%.

FAQ

1) What did the SAP Concur APAC Sustainability Survey find about sustainable corporate travel?

Almost nine in ten businesses (86%) across APAC said their companies are actively considering sustainability when managing corporate travel.

2) Who was surveyed and where was the research conducted?

The survey polled 648 senior and mid-level managers across corporate travel, finance, HR, procurement, and sustainability in Australia, China, India, Malaysia, Singapore, and South Korea.

3) What is driving the sustainability agenda for corporate travel in APAC organisations?

Respondents most often cited senior leadership (56%) as driving the agenda, followed by employees (47%), those responsible for sustainability initiatives (47%), and those responsible for corporate travel (41%).

4) What challenges do organisations face when implementing a sustainable travel system?

Reported hurdles included lack of budget (37%), lack of employee engagement (32%), lack of professional tools to visualise environmental impact (31%), and lack of policy flexibility and adaptability (31%).

5) What role does technology play in sustainable business travel according to the survey?

Many organisations (71%) recognise they need technology to become sustainable effectively. 38% already have software to support corporate travel and expense management, and 33% plan to acquire such software “very soon.”