Amex GBT launches Emissions-Based Carbon Pricing Solution

American Express Global Business Travel (Amex GBT) has announced the launch of integrated emissions-based carbon pricing. Customers can pick a carbon calculation methodology to apply a carbon fee to their air travel. These fees can be visible to business travellers as they shop and can appear on their invoice, helping companies inform employees about their carbon impact and corporate sustainability initiatives.

Some Amex GBT clients already use carbon pricing to apply flat or dynamic fees. With the technology enhancements announced today, customers can now track the carbon emissions specific to their flights and funnel investment towards sustainability initiatives. A price on carbon can seamlessly create a self-sustaining fund for decarbonization projects such as sustainable aviation fuel (SAF), electric vehicles (EVs), research & development (R&D), and more.

How it works:

•       Step 1: Pick a carbon calculation methodology. [1]
•       Step 2: Put a price on carbon using the new emission-based fee, a flat or categorical fee.
•       Step 3: Grow a fund for sustainability initiatives, e.g., SAF, EVs, R&D.

Why it matters:

•       Carbon pricing can be an effective and efficient way to create a self-sustaining funding stream for sustainability initiatives.
•       Aligning carbon pricing with the emissions specific to a traveler’s flights at point of sale can support employee engagement and incentivize more sustainable economic decisions.

Lucian Alexandru, Global Procurement Category Head, Sanofi, said: “Emissions-based carbon pricing enables us to combine economics, sustainability and technology to strengthen our business travel program and boost funding to invest in decarbonization initiatives such as SAF. With support from Amex GBT, we are closely aligning our business travel program with company-wide efforts to reduce emissions, while also helping accelerate and prepare for a low carbon future.”

John Sturino, SVP of Product and Engineering, Amex GBT, said: “Carbon pricing is a proven mechanism that can help companies make progress towards their sustainability objectives. Our innovative software can now help customers place a price on carbon and direct investment toward lower-carbon solutions, empowering them to make more informed decisions and address their carbon footprint.”

Nora Lovell Marchant, VP of Global Sustainability, Amex GBT, said: “Carbon pricing by way of business travel can help shift companies – and the aviation industry at large – towards a more sustainable future. Carbon pricing is imperative, but alone insufficient. We need to combine carbon pricing with decarbonization. Making carbon more expensive must be combined with making clean more affordable.”