Citi Perspectives Spring 2020

32 | Treasury and Trade Solutions Air travel currently accounts for about 2.5% of global carbon dioxide emissions — much less than emissions from passenger cars or power plants. However, one study found that rapid growth in air travel means it could represent a quarter of the world’s “carbon budget,” or the amount of carbon dioxide emissions permitted to keep the global temperature rise to within 1.5 degrees Celsius above pre-industrial levels, by 2050. 3 So how can treasury help with sustainable initiatives while continuing to reap the benefits of corporate travel? A sustainable corporate card solution According to a recent study led by The Nature Conservancy along with 15 other organizations, maximizing nature’s ability to tackle climate change at a cost-effective price could have the same effect as if the world put a complete stop to the annual burning of oil. The study found that “natural climate solutions” — the conservation, restoration and improved management of land in order to increase carbon storage or avoid greenhouse gas global emissions in landscapes worldwide — can provide up to 37% of the emission reductions needed by 2030 to keep global temperatures under that 2 degrees Celsius mark. That’s 30% more than previously estimated. 4 There is, however, a catch: The world must act now. Some corporates have already set ambitious emissions reductions targets across their operations and supply chains to align with the Paris Agreement’s goals. In some programs, corporates look for ways to reduce emissions from travel, including by imposing limits on when travel is necessary and when to use other means of collaboration. Other corporates have also turned to natural climate solutions as a complementary approach, recognizing that even though natural climate solutions like reforestation do not directly or effectively mitigate their existing emissions, they can still direct their efforts and resources toward environmentally friendly projects while they work toward more responsible travel programs and Positive Impact Rebate Program — An Example 1. BUSINESS TRAVELER 2. YOUR ORGANIZATION 3. YOUR ORGANIZATION 4. REFORESTATION PROJECT PARTNER 5. REFORESTATIONS PROJECTS Business employee travels using corporate card. Your organization receives rebate for travel purchases. Your organization invests a % of your rebate in a reforestation project of choice in partnership with Citi. Your contribution is allocated to a reforestation project of choice. Reforestation project partner shares a detailed report demonstrating fund allocations and environmental impact.