Sustainability incorporated in global mobility

Local contact

Jelle Romeijn

14 Apr 2023
Subject Tax updates
Categories Tax

Several actions a global mobility professional can take towards a more sustainable future.

What are the steps you are taking as global mobility professional towards a more sustainable future? Sustainability is one of the most important issues facing the world and therefore companies today. Therefore, it is very important to incorporate elements of sustainable thinking, also known as ESG (i.e. environmental, social and governance), into all the work we deliver. In this article we focus on the elements of sustainability, and in particular the focus on the environmental part, which we as global mobility specialist can definitely influence.

In a recent benchmark survey (2022) concluded in cooperation between EY and Airinc it was looked into how sustainability is incorporated in global mobility. Based on the survey it is clear that environmental sustainability is the highest focus area across the thee ESG pillars. The majority of companies have documented environmental sustainability goals at a global, corporate level. The global mobility departments start playing a bigger role in meeting those goals. In figures: If you compare it to the 2021 sustainability survey you can notice an increase of 15% of companies that made modifications to their mobility program to align with the company’s sustainability initiatives and even more companies anticipating to modify or redesign their mobility programs in the next couple of years to incorporate sustainability goals.

It is clear when there is travel, other than by for example bike or by feet, there will be emissions. Dependent on the amount of travels, the influence on the carbon footprint of the company can be huge. Many companies have a global sustainability goal to decrease there carbon footprint. EY for example has the goal to reach net-zero in 2025. As the term ‘global’ already indicates that it is mobility all-around of the world, it make sense that global mobility departments are set to work to play a role in the sustainability targets. For 96 out of the 137 companies that participated in the survey this mean that they play a role in meeting the sustainability targets within the global mobility function. 36 companies indicated that the role of global mobility in meeting the sustainability is even wider, they are shaping sustainability initiatives even at HR function level or at the corporate level.

Global mobility departments are set to work to play a role in the sustainability targets.

If we for now focus on the traditional assignment policies, such as long term and short term assignments, there are possibilities to structure the policies in a way to decrease the carbon footprint. For example:

- Encouraging less travel, for example by granting less or no home leaves
- Downgrading class of travel (economy class also for employees who previously might have been eligible to fly business class)
- Paying lump sums in lieu of transporting personal belongings via shipment
- Renting furnished accommodation in the host location as default choice (to avoid the need to transport personal belonging from home to host)
- Renting furniture in the host location (to avoid the need to transport personal belongings from home to host)
- Paying a lower utilities budget to encourage efficient use
- Paying transportation allowances in lieu of providing physical cars
- More focus on the location of accommodation, i.e. within easy reach of the workplace via public transport, by feet or bike (to avoid the need to drive)

Each of the above example is already implemented by more than one company and is also actively considered at other companies. We see that especially everything around transportation of personal belongings and ways to avoid this kind of shipment is considered the most. And of course there is more the global mobility department can do in order to raise on the sustainability ladder in relation to the traditional assignments. A few other examples are:

- If a company car will be granted in the host location, only grant a hybrid or electric car
- Built sustainability targets into the vendor contracts, for example the contract with the relocation company

The developments with respect to sustainability continues and all companies have to go along with this as it is a main topic on many political, business and individual agenda’s. Therefore, it is not only important that you as company set goals, but it is important to take your employees with you on this journey. With setting the right sustainability goals you will not only retain talent but also attract new talent who find it important to work for a company with high sustainability standards. A win-win situation for the company, the talented employees as well as the future of our society!