Sustainable Business Travel in 2025: Aligning Corporate Travel with ESG Goals

In 2025, sustainable business travel is no longer optional. With rising ESG pressures, new regulations, and shifting corporate values, companies must rethink how, when, and why employees travel.

This article unpacks policy innovations, technology shifts, supplier initiatives, regulatory pressures, and best-in-class examples, all of which focus on helping decision-makers build greener, more efficient travel strategies.

What if every business trip you booked in 2025 had a carbon price tag—visible before takeoff? That’s the new reality companies face as travel rebounds with a sustainability mandate. In today’s ESG-driven landscape, sustainability has moved from optional to operational. Businesses are reimagining travel as a cost center and a lever for climate action.

This article explores the forces reshaping corporate travel in 2025—from updated policies and emissions tracking tools to supplier sustainability and regulatory mandates. It also highlights leading companies pioneering responsible travel through practical, measurable strategies.

 Redefining Travel Policies for a Greener Future

Companies are rewriting their travel policies to address climate impact. According to Deloitte, 46% of organizations now assign carbon budgets to departments, up from 30% the previous year. These caps drive decisions like opting for rail over short-haul flights or selecting direct routes to reduce fuel consumption.

Alongside environmental considerations, cost containment remains critical. Over 75% of travel managers still prioritize cost savings. However, more companies are finding an overlap between climate goals and cost efficiency.

Reducing unnecessary trips, combining multiple objectives into one journey, and encouraging virtual meetings are proving both economically and environmentally practical.

 Technology That Tracks and Reduces Emissions

Technology is central to sustainable travel management. Booking platforms now include carbon calculators, filters for eco-certified hotels, and low-emission route suggestions. Tools like Thrust Carbon and GreenPerk automate emissions tracking and integrate with internal ESG dashboards.

AI-powered itinerary planners optimize routes to reduce emissions while balancing convenience. These digital tools are essential for complying with regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD), which requires scope three emissions disclosures starting in 2025.

Greener Suppliers: Airlines, Hotels, and Ground Transport

Suppliers are adapting fast. Airlines are ramping up using Sustainable Aviation Fuel (SAF) to meet the EU’s 2% SAF mandate in 2025. Though SAF remains expensive, many corporations co-invest through partnerships, such as Deloitte’s agreement with American Airlines.

Hotels are increasing sustainability initiatives with LEED-certified buildings, renewable energy use, and the elimination of single-use plastics. Certifications like Green Key help businesses identify preferred providers.

In-ground transport and electric vehicle (EV) fleets are expanding, and high-speed rail is gaining favor over short-haul flights. On average, flights emit 246g CO₂ per passenger-kilometer, while high-speed rail emits only 4g CO₂ per passenger-kilometer.

Regulation and Risk Management

Governments and regulatory bodies are tightening compliance frameworks. The EU’s CSRD mandates travel emission reporting in 2025, while the Green Claims Directive requires companies to substantiate environmental statements.

Singapore and Hong Kong now enforce ESG disclosures in Asia, pushing 55% of travel buyers to adopt greener practices.

Procurement standards from GBTA and ISO now incorporate sustainability criteria. Failing to meet these benchmarks could jeopardize contracts and brand credibility. ESG compliance is no longer optional; it is integral to risk management.

Navigating Trade-offs: Cost vs. Sustainability vs. Convenience

Companies face complex decisions: Should they pay extra for SAF or take the train? Is a virtual meeting a better choice? Although sustainable options often cost more, strategic trade-offs help balance competing priorities.

Some firms now impose internal carbon fees on departments to encourage responsible behavior. Microsoft pioneered this approach, reinforcing accountability through financial impact. Businesses are also enhancing trip planning to reduce frequency and optimize productivity.

Employee engagement plays a role, too. Only a third of organizations actively involve staff in emissions reduction efforts, though incentive programs and travel sustainability challenges are growing.

The Role of Travel Platforms and B2B Ecosystem

B2B travel platforms have evolved from transaction hubs to ESG-enablers. They offer real-time emissions data, SAF options, carbon offset tools, and reporting dashboards. TMCs are now strategic advisors, supporting clients with sustainability planning and supplier negotiations.

Corporations demand transparency. Airlines are expected to disclose fuel efficiency data, hotels must share energy usage metrics, and booking platforms should provide impact summaries. Suppliers that fall short risk being excluded from corporate travel programs.

 Corporate Best Practices and Case Studies

Several organizations lead the industry by integrating ESG into core travel practices:

• Deloitte reduced emissions by 50% since 2019 by implementing internal carbon pricing and requiring each trip to be justified based on impact. Regular updates to employees on travel emissions promote awareness and accountability.

• Siemens mandates train travel for journeys under 500 kilometers. Its travel booking platform is optimized for rail-first options, streamlining compliance and reducing flight volume.

• Novo Nordisk pairs strict travel caps with employee engagement initiatives, encouraging smart travel and virtual collaboration to achieve a 50% reduction goal by 2025.

• Capgemini rolled out a company-wide carbon pricing model and a global awareness campaign. The result: reduced flight bookings, increased rail travel, and stronger alignment with the company’s sustainability values.

• Microsoft charges departments for travel emissions and integrates real-time CO₂ tracking into employee dashboards. The strategy internalizes climate accountability across all business units.

• Salesforce leverages its Net Zero Cloud platform to monitor and reduce employee travel emissions. The platform feeds into ESG reporting and ties directly into internal rewards and recognition programs.

These examples share common traits: Clear executive support, real-time data access, supplier partnerships, and employee education. Together, they demonstrate how sustainability can be embedded into everyday travel operations while improving efficiency and accountability.

Conclusion: Leading in the Era of Sustainable Travel

Sustainable business travel in 2025 is driven by necessity, enabled by technology, and shaped by evolving expectations. From internal policies and carbon tracking to supplier engagement and regulatory compliance, leading companies are turning ESG from a compliance task into a competitive edge.

By measuring what matters and embedding sustainability into strategy, the organizations that act now will unlock long-term value, operational resilience, and reputational advantage.

Strategic Edge Research helps decision-makers make this shift with tailored research, competitive benchmarking, and go-to-market guidance in the travel ecosystem.

Is your corporate travel strategy aligned with tomorrow’s ESG landscape? Let’s start building it today.

Sources: Deloitte Sustainable Travel Survey 2024, GBTA Procurement Report, TravelPerk ESG Toolkit, Thrust Carbon Benchmarking Study, BCD Travel Insights 2025, EU Green Claims Directive FAQs.