As I prepare for my summer holidays, I've been thinking about the impact I could make on my destination. While it's the excitement of exploring new places that drives us, we should be mindful of the environment we're travelling to. After all, as visitors, we bring with us a carbon footprint that can affect the local community.
One way we can make sustainable choices is through how we get to our destination. The airline industry is making strides to reduce its environmental impact. Direct discounts for low-carbon flights are still uncommon. However, many European airlines now offer passengers the option to offset their flight emissions or choose lower-emission flights through modern aircraft models or those powered by sustainable aviation fuel. Still, it's essential to remember that the carbon footprint of a train journey can be nearly ten times lower than that of a short flight over the same distance.
This growing awareness of sustainability is not only influencing travel choices but also shaping investment decisions.
We can also make sustainable choices when we arrive. A report by Booking.com [1] surveyed 33,000 travellers across 35 countries, and the results showed that travellers are increasingly adopting more eco-conscious habits. More than three-quarters of us make small efforts like turning off lights and appliances when we're not in our hotel rooms or villas. About half of us also try to recycle while on vacation. These small actions can collectively make a significant difference. The survey also highlighted that many travellers choose to cycle or use public transport when on holiday, and nearly half support local economies by dining at small, independent restaurants and shopping at local stores.
While nearly 80% of those surveyed express a preference for sustainable travel, over 40% acknowledged that sustainability is not always their top priority. The cost-of-living crisis has added another layer of complexity to sustainable travel. Half of the respondents feel torn between wanting to travel sustainably and feeling that it's too expensive. Nevertheless, the other half are willing to pay a premium for eco-friendly options. For example, many travellers seek out authentic cultural experiences that benefit local communities, though these can be hard to find amidst popular tourist hotspots. During a recent trip to Kyoto, for instance, my wife and I discovered a small, unassuming sushi place that had a long line of locals - an experience far more enriching than dining at a standardised, global chain.
This growing awareness of sustainability is not only influencing travel choices but also shaping investment decisions. There are investment funds that redirect capital toward low-carbon and sustainable industries, engage with companies to drive climate action, and finance projects to reduce emissions and promote climate resilience. These strategies not only help investors reduce the carbon impact of their portfolios but also support the broader transition to a low-carbon economy.
Interestingly, some investment funds are going a step further and aligning with the EU Paris Agreement benchmarks. These benchmarks require a 7% (or, in some cases 10%) annual reduction in the carbon emissions intensity of companies within the fund. The aim is to achieve a 50% reduction in carbon intensity by 2030 compared to a baseline year, with the ultimate goal of reaching net-zero emissions by 2050.
As you embark on your travels this summer, keep sustainability in mind. Simple actions like turning off the lights, minimising the use of air conditioning when you're not in your room, and exploring local street food can make your trip both enjoyable and environmentally friendly. Not only will you be reducing your impact, but you'll also be supporting the local culture and economy in meaningful ways. If these changes seem too challenging, consider adjusting your investment strategy.
If you'd like to learn more about our sustainability offering, please get in touch or visit our sustainability pages on our website here.
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Information correct as of 27 August 2024.
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