Green Ambitions Vs Economic Realities: Cost-Cutting to Carbon-Cutting

In 2020, BP announced bold plans to cut oil and gas production by 40% by 2030, positioning itself as a frontrunner in the energy transition. But by February 2025, amid stagnating returns and investor pressure, the company reversed course, scaling back renewables investment and reaffirming its commitment to oil and gas production under new CEO Murray Auchincloss. The pivot, framed as a pragmatic response to market forces and the underestimated speed of the transition, underscores a growing tension across the sector: how to align climate ambition with commercial viability.

The implications for UK net-zero targets are significant. BP had been expected to help lead EV infrastructure growth, and its retreat raises questions about whether current public and private efforts will be enough to drive the behaviour change and infrastructure development needed; especially as the government pushes ahead with its 2030 ban on new petrol and diesel vehicles. Recent support, such as the July 2025 £650m Electric Car Grant, highlights the need for sustained incentives to maintain momentum.

Aviation faces similar headwinds. Sustainable aviation fuel (SAF) is widely seen as critical for decarbonising long-haul travel but remains expensive and limited in supply. While government-backed production schemes may ease access over time, SAF is still out of reach for many businesses with global travel demands.

It is worth noting, too, that aviation emissions data is not always reliable. Recent analysis by SQUAKE and tClara, led by Yury Erofeev (R&D Sustainability Manager at SQUAKE) and Scott Gillespie (a journalist and communications professional), revealed that flight CO₂ estimates can vary by up to 6.7 tonnes per flight across six major models, the equivalent of 6-7 full-sized hot air balloons worth. This exposes a critical challenge: even as we adopt cleaner energy and travel models, the credibility of carbon data must be assured.

These pressures highlight a more complex truth: the road to net zero is not only shaped by economic constraints and policy shifts, but also by the credibility of the data that underpins it. From fluctuating market forces to inconsistent carbon reporting models, businesses are navigating a landscape where certainty is rare, yet accountability is essential. Progress demands more than ambition, it requires clear direction, coordinated action, and long-term commitment from both public and private sectors.

At Addison Lee, we are navigating these challenges firsthand. Our strategy is grounded in realistic, phased change; prioritising vehicle lifecycle decisions, compliance, and performance without compromising service. Since 2023, we have introduced over 650 VW MultiVan plug-in hybrids and are expanding our premium executive range with PHEV Mercedes E-Class vehicles. This measured approach reflects a wider shift in business travel: from simply cutting costs to actively cutting carbon.

New Business Travel Priorities: Cost-Cutting to Carbon Cutting

There is a common misconception that cutting carbon means cutting back on business impact. But global brands are proving the opposite: with smart strategy and innovation, it is possible to deliver measurable emissions reductions while maintaining commercial performance, and accountability. Examples include:

• American Express Global Business Travel (Amex GBT): Launched an emissions-based carbon pricing tool in January 2025. Business travellers see CO₂ costs during booking, funding projects like SAF and EV infrastructure.

• Siemens: Recognised for a “travel smarter, not less” strategy that prioritises efficiency and lower emissions.

• Bain & Company: Implemented internal carbon budgets, reducing internal travel emissions by 30% while maintaining business impact.

• SAP: Cut nearly 24,000 tonnes of CO₂ from travel by optimising travel distances and using offsets.

• Wipro: Achieved a 21% reduction in air travel emissions via public transport incentives, carpooling, and remote work policies.

• Tech Firms (e.g., Microsoft, IBM): Have slashed business travel emissions by ~49% vs. 2019.

• PwC Austria: now mandate train travel for journeys under 250 miles, significantly cutting air travel emissions.

Across the UK and globally, businesses are moving from traditional cost-driven travel policies to ones shaped by sustainability, compliance, and long-term value. This shift is being reinforced by government initiatives and rising traveller expectations.

Policy & Market Drivers for Sustainable Business Travel

In July 2025, the UK government launched the Transition Finance Pilot, backed by the Bank of England and FCA, to ease investment into low-carbon operations. Alongside this, a new voluntary carbon and nature markets framework was introduced, helping businesses unlock revenue by backing verified green projects such as travel offsetting schemes.

From Q1 2025, UK companies will begin aligning with IFRS Sustainability Disclosure Standards, increasing demand for accurate emissions data, particularly in business travel. Furthermore, a new Carbon Budget Delivery Plan, due later this year, is expected to reinforce these expectations with more structured reporting requirements.

Meanwhile, global business travel is bouncing back; with projected growth from US$1.48 trillion in 2024 to US$1.64 trillion in 2025. However, demand is shifting; around 75% of travel managers anticipate more trips, but with a stronger focus on sustainable choices, such as EV ground transport, carbon-offset flights, and eco-certified accommodation.

Key Takeaways for Travel Managers

• Embed CO₂ costs at point of booking – make emissions visible to drive better decisions.

• Use carbon budgets and smarter route planning to reduce unnecessary trips.

• Utilise and promote alternative (greener) modes of travel – such as EVs and rail, supported by suppliers like Addison Lee.

• Measure and disclose emissions consistently to meet reporting requirements.

• Scrutinise the credibility of carbon data, especially for flights; not all models or claims are created equal.

• Support credible offset programmes – and work with partners like Addison Lee who invest in verified carbon offsetting for their remaining internal combustion engine (ICE) vehicles.

For travel managers and partners like Addison Lee, the message is clear: emissions matter. Successful corporate travel strategies must now balance cost control with carbon reduction—through smarter routing, greener fleets, and integrated sustainability tracking.

Closing Thoughts

Much like BP’s evolving approach to energy production, Addison Lee is navigating the balance between ambitious sustainability goals and the operational and financial realities of implementation. While the road to full electrification isn’t without its challenges, Addison Lee remains committed to leading the way, through smart investment, strategic fleet planning, and partnerships with forward-thinking clients.

For travel managers and businesses alike, the path to net zero will require collaboration, clarity, and continual adaptation. With the right supplier partnerships and a clear carbon strategy, sustainable travel can deliver both environmental and commercial value.