AmCham-China

Making Business Travel Responsible: Companies Can Minimize Their Footprint by Planning Responsibly
By Emma Starks

This article appears in China Brief's Transportation Special Issue

Through the beginning of 2009, business travel in China is robust and growing. Furthermore, long-term projections remain extremely strong. According to American Express, China will attract 137 million business travelers by 2020, close to nine percent of the global business travel market. The US Travel Association recently reported that business leaders see travel as integral to their business strategy, with 72 percent agreeing that increasing travel budgets allows companies to gain a competitive edge by forging new relationships, and 81 percent reporting that more client contact is necessary in a downturn. While travel undoubtedly benefits business (especially for those in the hospitality and transportation industries), its costs are disproportionately borne by the environment. This does not have to be the case.

In an era when employing dedicated corporate social responsibility (CSR) teams and “going green” are more like mandates than options, standard business travel practices may at first appear to be lagging behind in terms of environmentally-friendly innovations. Yet, smart companies, both inside and outside of the tourism industry, are proving that marginal changes make a huge and cost-saving difference for both the environment and the bottom line. Combined with the backlash against perceived corporate extravagance, it’s clear that the era of monstrous ice sculptures and lavish hunting trips has come to a close. Instead, business travelers are turning to events that meet dual goals of serving both the corporation and making a positive impact on the environment.

Beijing-based tourism consultancy and events firm WildChina has noticed a sharp increase in requests from in-house corporate planners actively seeking to incorporate CSR and sustainability into their off-site meetings. Director of Corporate Services Pan Wei observed this change in corporate attitudes towards sustainable meetings, commenting, “Before we would have to encourage clients just to consider nontraditional options, such as volunteer activities in second or third-tier cities, but now they are asking for CSR components from the get-go.”

An enhanced focus on responsible corporate events has allowed for tremendous amounts of innovation. The use of unusual locations and activities can create unique experiences for clients. A recent slate of meetings for a large multinational firm was held in tea houses in the watertowns surrounding Shanghai, bringing tourism income to areas otherwise lacking in industry. Additional events combine both traditional teambuilding with community service activities and pit officemates against each other in “Apprentice”-style challenges to complete projects for underserved communities.

Recent research from Ogilvy & Mather Group China highlights additional benefits to moving beyond China’s mega-cities. With 37 percent of China’s population residing in fourth to sixth-tier towns, the advantages to understanding this perpetually under-targeted market are substantial. Combining corporate meetings and events with local interaction is a possible avenue for gaining insight into a market segment with disposable income historically growing at around 10 percent annually.

Beyond large-scale meetings and events, individual business travelers also have options for reducing the environmental impact of their trips, for example, choosing accommodations committed to sustainability. Luxury hotel chains catering to business travelers have quietly been introducing sustainable measures for years, while still maintaining high standards of service and quality. In Beijing, the Ritz-Carlton Financial Street was the first hotel in the Ritz-Carlton Company to attain ISO14001 certification from the People’s Republic of China—a worldwide qualification that signifies a property’s contribution to environmental protection and efficient resource management. Travelers don’t notice that laundry “grey” water is used as flushing water in restrooms, or that the centralized temperature and lighting systems maximize efficiency, but efforts like this add up to huge savings. With the Trade Service Division of China's Ministry of Commerce planning to add 10,000 certified five-leafed (top ranking) green hotels by 2012, eco-friendly accommodations are becoming the norm.

Additionally, while the most obvious negative impact of global travel is emissions created by flying, it is also the most inescapable pending significant advances in aviation technology. Purchasing carbon credits from a firm like TerraPass—a social enterprise that provides carbon offsetting products to individuals and businesses—does nothing to stop the plane’s release of CO2 in the atmosphere. But that money does go to investments in sustainable technology and alternative energy that reduce carbon emissions on the whole.

While methods to reduce cost, energy use and environmental impact remain, roadblocks to implementation continue to persist. Creating off-the beaten- path conferences and teambuilding events requires more manpower than traditional hotel ballroom and banquet affairs, yet the additional investment in employee skills yields far greater returns than upgrades on invitations or decorations. As responsibility to the environment and local communities moves from a luxury to a necessity, business travel and corporate meetings must also follow suit. Fortunately for those tired of successive PowerPoint lectures and cookie cutter convention centers, making business travel more sustainable offers innovative opportunities to break the mold. Firm-building events can be more than just parties: meetings can result in understanding new markets, and employees can feel connected to the broader community through service. The old model of two-day conferences is tired and expected, but combining CSR initiatives with corporate events allows companies to experience business in China differently.

Emma Starks is a Senior Associate at WildChina, a Beijing-based travel firm focused on innovative travel and events management for business travelers, individuals, and schools.