Are We Doing Enough?
It’s neither quick nor easy to turn a giant ship. Yet, the meeting and event industry is coming to terms with its environmental impact and moving forward with globally significant changes.
By Amy Cortese
“We have just four months. Four months to secure the future of our planet,” United Nations Secretary-General Ban Ki-moon warned last month while addressing the Global Environment Forum.
For one week in December, as many as 15,000 delegates, press and officials from 192 countries will descend upon Copenhagen for the United Nations Climate Change Conference (COP15). The conference’s goal is to hammer out a Kyoto Protocol successor to reduce global greenhouse gas (GHG) emissions. An international agreement to reduce emissions is considered crucial to staving off the worst effects of global warming: melting polar ice caps, rising seas, intensifying droughts, the spread of disease and biodiversity loss.
“We must seal the deal in Copenhagen for the future of humanity,” Ban said.
That’s a heavy agenda. And the conference itself underscores the difficulty of the task. Despite efforts by conference organizers to mitigate the environmental impact of COP15 and Denmark’s heavy use of wind power, the ecological footprint is likely to be large, as 15,000 people fly, drive, dine and consume in the name of combating global warming.
Conference organizers are still estimating the conference’s footprint—it will depend on final delegate count and the attendance of heads of state who travel with a carbon-heavy entourage and security detail—but last year’s COP14 in coal-heavy Poland generated roughly 22,000 metric tons of CO2.
And sustainability, while important, has to take a back seat to security and a productive meeting environment.
“The priority of the conference is to reach a global deal on GHG reduction,” said Svend Olling, head of conference logistics for Denmark’s Ministry of Foreign Affairs. “What we can do is to point to some of the solutions.”
Solutions abound, and many will be on display in Copenhagen, from hydrogen-powered cars to green ship technology to wind power. And tourism-related industries have pledged to reduce their footprints. Earlier this year, the World Travel & Tourism Council (WTTC) vowed to cut carbon emissions to 50 percent of 2005 levels by 2035. In their report, “Leading the Challenge on Climate Change,” the WTTC put forth 10 action items to help accomplish this goal, including 1) identify climate change hot spots in the travel trade and develop strategies to reduce their emissions, 2) support efforts to reduce deforestation, 3) adopt environmental management systems to regularly measure the travel trade’s emissions and 4) encourage governments to offer incentives for travel trade businesses to actively reduce their emissions.
Despite all the eco-talk and green ambitions, transportation, lodging and food and beverage still leave a hefty imprint on the environment. Companies are treading carefully to ensure that they don’t compromise the quality of their services as they move toward greener practices. With the global economy still reeling from the financial crisis, even the best-intentioned environmental efforts can fall prey to bottom-line considerations.
For instance, the fast-growing wind energy market is expected to slow for the first time in years, by 20 percent in 2009, according to HSBC Bank. Likewise, sales of organic goods are down, financing for commercial renewable energy projects has stalled and recycling has suffered along with a drop in global commodity prices. The same financial pressures are weighing heavily on the tourism industry as well, especially airlines and hotels.
In general terms, tourism accounts for about 5 percent of total manmade global emissions, or about 1.75 billion tons out of almost 36 billion metric tons. Of the tourism-generated emissions, 40 percent comes from aviation, 32 percent from cars and 20 percent from lodging, according to United Nations estimates. Unless you plan to walk or swim to your next destination and sleep in a tent once you arrive, environmental degradation is most often part of the deal.
The UN doesn’t break out emissions from business travel and meetings, but the U.S. Travel Association states that 15 percent of domestic travel can be attributed to business travel. The same figure is reported to be the European average, according to Germany Trade and Invest, the nation’s foreign trade agency.
The numbers may seem reassuring—5 percent of manmade emissions are not that terrible—but may mask a more damning reality. Given that much of the world’s population—an estimated 98 percent—does not fly internationally in a given year, the tourism-related GHG burden falls on a disproportionate percent of the population, according to Stefan Gössling, a professor at the Research Centre for Sustainable Tourism at Western Norway Research Institute.
Moreover, with global travel growing briskly, companies have to work even harder to meet their goals. In 2007, more than 900 million people traveled abroad (42 percent via air transport), up from just 25 million in 1950, according to the United Nations World Tourism Organization. Despite the recessionary dip, the upward trend is expected to continue. By 2020, the number of international travelers is expected to pass 1.6 billion.
AIR OF TOMORROW
In 2007, the airline industry generated about 671 million tons of CO2—2 percent of total manmade GHG emissions, according to the IATA, a trade group whose 230 members account for 93 percent of scheduled international air traffic. Historically, the industry has grown by 5 percent per year, yet improvements in fleets and technology has kept emissions growth to just 3 percent per year.
As airlines retrenched and cut capacity in the face of a weak economy, emissions actually declined in 2008 and are expected to decline by a further 7 percent in 2009.
Still, the declines will most likely disappear when the economy rebounds, so the aviation industry is tackling emissions reduction on many fronts.
This year, the IATA pledged its commitment to carbon neutral growth by 2020 and a 50 percent reduction in emissions by 2050. The association aims to achieve these goals through its four-pillar strategy of “improved technology, effective operations, efficient infrastructure and positive economic measures in delivery results.”
It’s not all rocket science. Up to 18 percent of fuel is wasted through operational and infrastructural inefficiencies. To address that, the IATA created “green teams” in 2005 that visit member airlines to advise them on fuel-saving measures. These assessments typically result in reductions of 2 percent to 15 percent of fuel bills. Quentin Browell, assistant director of aviation environment for the IATA, figures these efforts have saved 33 million tons of CO2 since the program began.
Lobbying for more direct routes is another focus. Pilots may often be forced to fly in zig zag patterns rather than taking the most direct route, due to regional vagaries. The IATA has been working with local governments and aviation authorities to shorten routes. Last year alone, 200 routes were shortened, saving 4 million tons of CO2, Browell says.
Flying techniques can translate into further savings. Typically, when a plane comes in for a landing, it is guided by a series of ground beacons, causing the plane to descend in stepped intervals. A smooth continuous descent is more efficient and will soon become more common thanks to new satellite technology and sweeping new air traffic management plans in Europe and the U.S. In Europe, 200 airports will be equipped with the satellite systems by 2013.
Beyond operational measures, new technology promises to radically transform aviation, including a new generation of planes by Airbus and Boeing that use lighter, stronger materials and reduce fuel use by more than 25 percent. The resulting rate of fuel use per 100 passenger miles will compare favorably with small family cars. Savings in fuel costs and emissions will be substantial, especially in the U.S., which has the world’s oldest airplane fleet on average.
The exciting promise on the horizon is biofuel made from organic matter such as algae and jatropha (a hardy, drought-tolerant succulent grown in the tropics). These second-generation biofuels do not rely on food crops, a major drawback of their predecessors. Even oil giant Exxon Mobil recently said it would invest US$600 million to develop algae-based biofuels.
Commercial use of biofuels is tantalizingly close. In the past year, four test flights have been conducted using biofuels by airlines including Continental and Japan Air Lines (JAL). Best of all, the new generation of biofuels can work with existing engines, so airlines can start with blends of conventional kerosene and biofuel and transition to 100 percent biofuel. JAL showed that the latter can be done: its one-hour test flight was powered solely with biofuel made from camelina and jatropha.
Aviation officials are hoping to get biofuels certified for commercial use as early as next year—not a trivial step considering the safety requirements and high-altitude conditions in which these fuels must perform.
Once that happens, commercial-scale production is expected to begin in earnest. Two challenges will be producing biofuels in a way that doesn’t create harmful emissions that would offset the benefits and finding the estimated $300 billion in investment it is expected to take to scale up production in a tough capital market.
The industry isn’t stopping at biofuels: Radical new aircraft designs and technologies are being drawn up in research and development labs across the globe. One concept, the blended wing body, would basically approach aircraft design as if it were one big, super-efficient wing. In addition, solar-powered planes could be tested as early as 2011, and a hydrogen fuel cell-powered plane was flown last year in Spain. Browell says the IATA is encouraging innovation and radical aircraft designs.
Still, a cold-headed skeptic might see things a little differently.
“Many CEOs tell you to wait 10 to 15 years and all will be fine,” Gossling said. “But of course, they will be gone by then.”
ROOM FOR SUSTAINABILITY
At 284 million metric tons of CO2 annually, the lodging industry contributes much less to global warming, at least relative to aviation. But lodging emissions are expected to increase, with much of the growth coming from the Asia-Pacific region. (Currently, North America is the largest regional contributor, accounting for 40 percent of hotel emissions, thanks to larger room sizes and a dependence on coal-based energy.)
The hotel and lodging industry enjoyed a long spell of prosperous expansion when energy prices were low. While the fast growth of eco-tourism has been an important factor in saving energy, the economic implosion provided the real jolt and hotels have scrambled to slash costs. In doing so, they’ve found that going green makes excellent business sense.
“In times like these, innovation can really be tapped into,” said Mari Snyder, vice president of social responsibility for Marriott International. “People are interested in savings, efficiencies and returns.”
As in aviation, hotels can get dramatic results by taking some basic steps to improve operational efficiency. The Inter-governmental Panel of Climate Change figures that almost 30 percent of global emissions generated by commercial buildings, including hotels, can be eliminated by 2020 by implementing energy-efficient solutions for lighting, heating and cooling. Better yet, these investments in energy efficiency can pay for themselves over time in cost savings.
Many new hotels are built to LEED standards and incorporate sustainable features. The Proximity Hotel in Greensboro, N.C., last year became the first U.S. hotel to obtain LEED Platinum certification, the highest rating awarded by the U.S. Green Building Council. One hundred solar panels line the roof, natural lighting is used throughout the hotel and adjacent restaurant, 87 percent of construction materials were recycled and 40 percent of the building materials were sourced locally, according to the hotel.
The hotel industry has systemic challenges, however. It is fragmented, with many players and one-off hotels, and industry benchmarks are scarce. In addition, the typical business structure—property owners contract with developers to build hotels and property management companies to operate them—can create competing interests.
It’s one thing when you have an enlightened owner, such as Bank Of America, which owns the new Ritz-Carlton, Charlotte (N.C.) set to open in October as the city’s first LEED-certified hotel. Like the sparkling green state-of-the-art office tower the bank erected in New York, the hotel will have the latest eco features, including a green roof, a hotel-wide water purification system, an air transfer system and employee uniforms made from regenerated plastic bottles. The hotel will serve as a model for additional eco-friendly Ritz-Carlton hotels.
Of course, it’s easier to be eco-friendly with a shiny new green building, but many hotels were built, at a minimum, decades ago when oil seemed limitless and An Inconvenient Truth wasn’t even a glimmer in Al Gore’s eye.
Hotel chains such as The Ritz-Carlton and its parent company, Marriot International, are retrofitting older hotels. This process can trim operating costs by up to 10 percent per property and typically has a payback of six months to two years, Marriott’s Snyder says. Marriott has saved $3 million in energy costs from retrofits over the past three years, she says. Similarly, the 20-year-old Embassy Suites Lake Tahoe Hotel & Ski Resort is on track to save $500,000 this year after investing $200,000 in energy-efficiency improvements.
Hotels have also introduced green meeting programs to reduce the waste and footprint generated by events. Typical measures include eliminating bottled water, offering local and organic food items and beginning to green the supply chain.
That last item, the supply chain, is a particularly thorny challenge. Denise Naguib, corporate director of environmental programs for The Ritz-Carlton Hotel Co., says that while they’ve been able to source green alternatives for a dozen day-to-day items it buys in bulk, such as paper, bottles and pens, “that’s a dozen out of thousands of things we buy.” Therefore, she says, it’s important to get private industry—the makers of everything from showerheads to construction material—on board as well, and it must be a winning proposition for everyone.
The hotel industry’s report card is still mixed: Most hotels gently prod guests to reuse towels and cut down on water use, but in-room recycling (cans, bottles or paper) is still rare. (To be fair, recycling is highly dependent on the local jurisdiction.) And key card systems that turn the power off when a guest leaves the room, while widely used in Europe, have seen slow adoption by U.S. hotels.
Then there are the overachievers, such as Scandic, the leading hotel chain in the Nordic region. The company has reduced its CO2 output per guest night by 72 percent since it began tracking its emissions in 1996. Scandic’s goal is zero carbon emissions by 2025, to be achieved through a combination of efficiencies and renewable energy. In Sweden and Norway, the chain purchases 100 percent of its electricity from renewable suppliers.
Scandic has also opened up its reporting system for all to see. Its Web site gives a live, up-to-the-second accounting of its savings in energy, water, unsorted waste and CO2.
These sorts of practices are not only accepted, but becoming expected. The Ritz-Carlton’s Naguib has noticed a marked shift in customer attitudes, through focus group studies, in the past few years. In the company’s most recent focus group, customers made it clear that doing nothing to cut down on environmental impact would be irresponsible.
Broader research bears that out: A survey by the Hartman Group conducted earlier this year found that more than 75 percent of consumers consider environmental and social aspects when making purchase decisions and 33 percent are willing to pay more for that benefit.
No wonder swimming pools are going saline and spa products organic. Even AAA will begin flagging environmentally responsible hotels in its guidebooks with a new “eco” icon starting next year.
SETTING COURSE FOR A RESPONSIBLE FUTURE
For all of the momentum, getting the hospitality/meeting/tourism industries to go green en masse is a daunting challenge. Local and national governments can help by offering incentives and setting the right policies. But a truly effective solution must be global, and much rests on the outcome of COP15.
As the world’s leaders hammer out a plan, conference organizers will attempt to play host to the greenest conference they can without compromising security and comfort.
The main meetings will take place at Copenhagen’s Bella Center. The center has made a €1.7 million investment in energy saving measures, including installing LED lights, insulation and more efficient heating systems, which have led to a 20 percent decrease in CO2 emission from 2007 levels. Catering services will supply at least 65 percent organic food, much of it local, and organic waste will be separated for composting or biofuel.
Local transportation is another area of focus. All delegates will be able to ride Copenhagen’s public transportation for free. VIPs, meanwhile, will be chauffered around in a variety of green vehicles including hydrogen-powered cars (from BMW and Mercedes Benz), as well as hybrids, electric cars and biofuel models. In addition, bicycles will be freely available to delegates who want to join the local Danes in a favored mode of local transportation.
Organizers have also prodded hotels to beef up their green-certified efforts. When they began their planning a year and a half ago, there were about 1,800 green guest rooms available in greater Copenhagen, according to Jan-Christoph Napierskic, a Denmark Ministry of Affairs logistics officer. That’s since increased to more than 5,800 green-certified rooms and the number continues to grow.
Still, that’s not enough to house all COP15 delegates. The reality is that sustainability, as important as it is, must take a back seat to practicalities.
And there is little that organizers can do about GHG emissions from air travel to and from Copenhagen, which they figure will account for 90 percent of COP15’s climate impact.
“We have a lot of opportunities to save energy and reduce our footprint,” Napierskic said. “And it doesn’t need a big investment. What is needed is a change in attitude regarding sustainability.”
To that end, COP15 attendees will be able to tally their own GHG footprints and the impact of their decisions to, for example, take public transportation instead of taxis.
Increased awareness and behavioral change is worth at least as much as all the new-fangled technology in the pipeline. As the economic crisis takes a toll on the pace of commercialization of green technologies, that amounts to some good, low-tech and low-cost news.
“Awareness is the first step,” U.N. Secretary-General Ban Ki-moon said. “The challenge now is to act.” One+
AMY CORTESE is a freelance writer based in New York.
Breaking Down Tourism-Related Emissions
Aviation = 40%
Automobiles = 32%
Lodging = 20%
Other = 8%
Tourism accounts for about 5 percent of total manmade global emissions.
Source: United Nations
Tons of CO2: A Comparable Look
In 2007, the airline industry released more than five times as much CO2 as all volcanoes combined.
Annually, wasted airplane fuel is responsible for about the same amount of CO2 emitted into the atmosphere as that of all volcanoes combined.
Currently, the lodging industry spews more than twice as much CO2 as all volcanoes combined.
Source: International Air Transport Association, U.S. Geological Survey
MPI in the CSR Sphere
The following are some highlights from MPI’s paper “Our Common Vision: Corporate Social Responsibility.” Download the entire report at http://tinyurl.com/n8ckv5.
Thought Leadership
• First industry association in our space to sign the Global Compact and produce a Communication on Progress
• Will be participating in the creation of global industry reporting protocols through the Global Reporting Initiative beginning in 4th quarter 2009
Practice Leadership
• First to be third-party certified under British Standard 8901 and with a commitment to this and other standards in the future
• Will be launching the ECOS Project (Events for Communities of Sustainability) with the MPI Canadian chapters this summer.
Resource Leadership
• Working on an environmental and social footprint measurement tool for meetings