Sustainable Aviation Fuel (SAF) and the incoming European Union Corporate Sustainability Reporting Directive (CSRD) are both hot topics in the ESG space. And they cross over more than you might think.
Regardless of discussion around exactly when CSRD will go into effect and how EU member states will transpose the regulation, CSRD is a huge piece of ESG legislation requiring organization-wide preparation. Given the breadth of disclosure requirements, CSRD preparation prompts the need for internal resource allocation, upskilling and education of stakeholders, increased board-level engagement, choices regarding data infrastructure, building relationships throughout the value chain, and integration across functions. Many organizations might be tempted to deal with CSRD first and then address SAF at a later stage. But decision-making and implementation around SAF can leverage the same processes put in place for CSRD, too.
Double materiality, dual processes
Under the CSRD, companies must use the European Sustainability Reporting Standards (ESRS), which specify disclosure across a series of ESG topics and data points. CSRD requires organizations to undergo a “double materiality” exercise to broaden their sustainability reporting beyond financial impacts (commonly known as “single materiality”), to also include environmental and social impacts throughout their value chain. This “double materiality” approach asks an organization to assess which areas within ESG are significant – or material – to the business.
And this is where company preparations to disclose under CSRD can intersect with the push towards SAF.
Carbon reduction presents the travel industry with a challenge regarding double materiality. How do you balance the need to reduce negative materiality of emissions generated by travel while continuing to reap the positive materiality of travel for business? This is where SAF can become a strategic choice that contributes to reconciling continued business travel with reduced greenhouse gas (GHG) emissions – arguably one of the most significant and material areas of ESG in this space.
Tangible GHG reductions
SAF isn’t the silver bullet in emissions reductions. There is no replacement for a comprehensive and multi-pronged approach to GHG reductions. However, when treated as part of the solution, building SAF into your business travel offering not only demonstrates a commitment to sustainability, but the subsequent reduction in GHG emissions from SAF implementation is also crucial in the context of CSRD reporting. Using SAF can be one of the more tangible elements of a travel emissions reduction strategy, driving activity and robust data that can be captured through the CSRD disclosure.
Adding value for longer-term sustainability
Leveraging these parallel processes – to engage, implement, and embed – around CSRD disclosure and SAF onboarding also maximizes the value derived from ESG budget. Instead of tackling CSRD first, then exploring options around SAF, it makes sense to approach them in tandem. Not only is this more efficient, it also puts a longer-term approach to sustainability into practice, allowing companies to further embed sustainability into business processes and governance from the offset.
Ultimately, the parallels in preparation, reporting and contribution to near- and longer- term sustainability goals unite SAF and CSRD. Going after both at the same time maximizes efficacy, supports regulatory compliance and allows a company to position itself as a leader in the transition to a more sustainable future.
About CWT
CWT is a global business travel and meetings solutions provider, with whom companies and governments partner to keep their people connected, in traditional business locations and some of the most remote and inaccessible parts of the globe. A private company, CWT provides its customers’ employees with innovative technology and an efficient, safe, and sustainable travel experience.
About SQUAKE
SQUAKE helps companies to achieve their carbon targets and is considered the industry solution for sustainable corporate travel. It’s fast, secure and scalable. The SQUAKE Solution Suite is live with industry leaders from several travel and logistics segments, and performs accurate carbon calculations for all types of activities (e.g. flights, road, accommodation amongst others) according to national and international standards. It automates carbon reductions and/or compensations along the supply chain, from supplier selection (SAF, DAC, ecological restoration) to inventory management, invoicing and credit retirement.