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'Business Travel Optimisation' Explained

Clare avatar
Written by Clare
Updated over 3 months ago

Use the 'Business travel optimisation' scenario model under 'Reduce emissions' to forecast the impact of switching part, or all, of your business travel from one travel mode (e.g., flights) to another (e.g., train). Business travel can be a significant contributor to your organisation’s Scope 3 emissions. By shifting to lower-emission travel types, you can:

  • Reduce business travel–related emissions substantially.

  • Compare the climate impact with the associated financial cost or savings.

  • Evaluate trade-offs between travel needs, costs, and emissions.

How does the 'Business travel optimisation' scenario work?

This scenario simulates the carbon and financial impact of replacing one type of business travel with another, such as the impact of replacing flights with train travel or car travel with flights. The scenario uses your uploaded Business travel data (using the calculation methods 'Distance' or 'Origin and destination') and applies default emission factors or customisable inputs to forecast the climate and cost implications of such a transition.

Emissions are calculated by multiplying the forecasted distance travelled for each mode by the respective emission factor. The scenario first uses your company’s reported emissions and total travel distance to calculate an emission factor (EF) for each travel type. If no company-specific data is available for a given mode, it defaults to the mean EU-based conversion factors.

These default conversion factors represent typical values across available sources, although variation exists (particularly for flights, where distance plays a major role). If company-specific data is available, defaults can be overridden.

For modelling purposes, we assume that 100% of the switch (based on your chosen replacement ratio) occurs in the base year. All cost and carbon impacts are then reflected from the beginning of the following year.

'Business travel optimisation' filters

You can adjust the scenario filters to reflect your specific assumptions. Once applied, the scenario calculates new emissions and costs, which you can save and revisit later.

Input

Description

Base year

The reference year for your calculations

Flight distance growth rate (%)

Expected annual change in flight distance travelled

Train distance growth rate (%)

Expected annual change in train distance travelled

Car distance growth rate (%)

Expected annual change in car distance travelled

Travel type to replace

The current travel type (e.g., flight, train, car)

New travel type

The alternative travel type to switch to

Ratio to replace (%)

Percentage of distance from the old travel type to shift to the new one

Flight travel cost per km

Cost per kilometre for flights

Train travel cost per km

Cost per kilometre for trains

Car travel cost per km

Cost per kilometre for cars

CAPEX

One-off capital expenditure required

Revenue difference

Change in yearly revenue expected after switching

OPEX difference

Expected yearly operational cost difference

WACC

Weighted average cost of capital for discounting cashflows

Project duration

Time horizon for your scenario in years

Include Terminal Value

Whether to calculate value beyond the project duration

Perpetual growth rate

Long-term growth rate for terminal value calculations

What insights can I get from the 'Business Travel Optimisation' scenario?

Once your filters are applied, you’ll see forecasted insights for both emissions and financial impact.

Metric

What it shows

Why it matters

Distance forecast before action

Projected distance for each travel type in the base case

See how travel patterns would look in your BAU scenario

Distance forecast after action

New projected distance for each travel type

See how travel patterns shift across modes

Distance deltas

How much travel distance is replaced by mode

Understand the magnitude of the behavioural shift

Travel costs before change

Cost of travel with current setup

Establish baseline financial footprint

Travel costs after change

Cost of travel after switching

Assess new financial commitment

Total change in costs

Change in total costs (including OPEX)

Quantify savings or additional expenses

Emissions forecast before change (kgCO₂e)

Baseline footprint of flights, cars, and trains

Benchmark current travel impact

Emissions forecast after change (kgCO₂e)

Projected footprint after switching

Measure reduction potential

Emissions delta (kgCO2e)

Emissions differences for each travel type

Understand the magnitude of the behavioural shift

Total change in emissions

Difference between before and after

Quantify the climate benefit of the initiative

Discounted cash flow

Cash flows adjusted for time and risk

Compare projects on a present-value basis

Terminal value

Long-term value beyond the scenario horizon

Capture enduring financial impact

NPV

Net present value of all cashflows

Determine whether initiative creates financial value

Payback (years)

Time until cumulative discounted cashflows turn positive

Assess how quickly investment pays off

Note: Not every travel change leads to cost savings. Sometimes shifting to more sustainable travel types (e.g., from flights to trains) may increase short-term costs while reducing emissions. The value of this scenario lies in making both the climate and financial implications transparent, so you can build a strong, evidence-based case for change.



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