Climate Friendly Tour Operators Sustainable Travel International is a non-profit whose mission is to promote sustainable tourism development by providing programs that help travelers and travel-related companies protect the environmental, socio-cultural and economic needs ofthe places they visit, andthe planet at large. Leave the World a Better Place™
Climate Friendly Tour Operators • Possibly the largest industry in the world: • Nearly 11% of the global GDP • Over 10% of the global workforce • 760 million international arrivals in 2004 • Expected 1 billion by 2010 • Arguably the most damaging (greenhouse gas emissions) Travel and Tourism Profile
Climate Friendly Tour Operators • Transportation is a main culprit of climate change, accounting for almost1/3of world-wide climate damaging greenhouse gas emissions. • Air travel is thefastest growing contributor.The average American, with one or two trips abroad annually, emits 19,841 lbs or almost 10 tons of carbon dioxide (CO2). If everyone in the the world emitted this much CO2, we’d need 2 ½ planets to support us all. (Guardian Unlimited 2001) • The world fleet of aircraft is around 70% more fuel efficient than in 1970 (IATA). With current technology, further reductions in emissions are very costly and governmental regulatory efforts are virtually non-existent. The Facts This is what we’re dealing with.
Climate Friendly Tour Operators • Climate change isn’t some vague future problem… it’s already damaging the planet at an alarming pace. (Time Magazine 2006) • Polar ice caps are melting faster than ever; • Increasing frequency / intensity of tropical storms • Increasing devastation to land by drought; • Rising waters are drowning low-lying communities and some islands have disappeared altogether; • Most agree that society is already experiencing the effects of global climate change. The Facts There is scientific consensus that humans are causing climate change.
Climate Friendly Tour Operators • Global climate changeis creating a sense of urgency in the tourism industry and in capital markets around the globe. Ominous signs are everywhere even in mainstream media outlets: The Facts The tipping point is near or here. It’s reality is finally accepted in mainstream media and the public’s collective consciousness.
Climate Friendly Tour Operators • 2005 was the hottest year on record. The average global temperature has slowly increased since 1880. This 150-year time series constitutes the direct, instrumental record of global warming. • Air temperature measured at weather stations on each continent and sea temperatures measured by ships on the oceans are combined to produce annual global mean temperatures. The Facts
Climate Friendly Tour Operators • Sea levels are changing.Observing stations from around the world report year-to-year changes in sea level. The reports are combined to produce a global average time series. (Chart represents change in height in centimeters) The Facts
Climate Friendly Tour Operators • The volume of water in oceans and seas is increasing because glaciers and ice caps are melting and because existing water is expanding as it’s heating up. The Facts
Climate Friendly Tour Operators • Global peak oil production will soon be on the decline, yet global oil demand is on the increase. The Facts
Climate Friendly Tour Operators • We will run out of atmosphere before we run out of oil. The concentration of CO2 in the Earth’s atmosphere has increased steadily since the year 1700 from 270 to 370 parts per million (ppm). We’ve now entered uncharted territory... • Since 1959, CO2 concentrations have been measured by scientists. Early data is from gas bubbles trapped in ice. The Facts
Climate Friendly Tour Operators • These changes, in turn, are beginning to have a profound impact on the travel and tourism industry, and the planet at large. • Water temperatures are rising, resulting in the increasing frequency and intensity of tropical storms and hurricanes; • Water levels are rising, which could result in sea line penetration into coastal aquifers and estuaries; • Coral bleaching and sea fan disease are destroying reefs throughout entire regions. Travel and Tourism Impacts Yet, we in this industry can’t ask people to travel less. So this is the challenge we face.
Climate Friendly Tour Operators Greenhouse Gas and Carbon Offsets • Balancing society's growing demand for energy and air travel and the need to mitigate the negative impacts associated with travel-related emissions is a formidable challenge. • Voluntary initiatives create excellent opportunities to pursue alternative greenhouse gas (GHG) / carbon offset strategies. “Everybody talks about the weather but nobody does anything about it.“ - Mark Twain
Climate Friendly Tour Operators GHG / carbon offset programs offer a user-friendly solution for individuals that wish to neutralize their own travel-related GHG impacts, and for businesses that wish to offset both own and their client’s emissions. Offset Programs
Climate Friendly Tour Operators Definitions Green Power:There is a physical connection between the buyer and the generating renewable energy asset. You are buying and paying for kWh from a renewable source. (Eg. solar panel on your house provides) Green Tags / REC: There is no connection between the buyer and the generating renewable energy asset, but you are still buying and paying for the incremental cost of producing kWh from a renewable source. Greenhouse Gas (GHG) / Carbon Offset: A mechanism by which the impact of emitting a ton of GHG or CO2 can be negated or diminished by avoiding the release of a ton elsewhere, or absorbing a ton of GHG or CO2 from the air that otherwise would have remained in the atmosphere.
Climate Friendly Tour Operators • Enter your departure/arrival cities into a carbon calculator, then the GHG emissions released during air travel are calculated. • Company or individual chooses to neutralize part or all of their climate impact by purchasing offsets from sustainable development projects • Proceeds from purchased offsets are invested in renewable energy / efficiency project construction and operations in developing countries. • Projects double as sustainable development tools benefiting local communities while offsetting emissions and neutralizing negative climate impacts elsewhere. • The purchased offsets are permanently 'retired‘, I.e. taken out of the market so the project can’t be sold again elsewhere as an emission reduction. How Do Offset Programs Work The Air Travel Example
Climate Friendly Tour Operators STI offers the best offset programs available in the marketplace at wholesale pricing: Portfolio Approach MyClimate - International Projects • Non-profit, 80%+ of revenue is reinvested in its project portfolio • Kyoto Protocol / CDM Gold Standards • “Additionality” of programs (ie. They wouldn’t exist w/out the investment) • Sustainable Development projects in poor countries Bonneville Environmental Foundation (BEF) – Domestic Projects • Non-profit, 80%+ of revenue is reinvested in its project portfolio • U.S.-based renewable energy and energy efficiency projects • Green-e Certified • Green Tags: Certificates 4 Community Renewable Energy, Solar 4R Schools, etc.
Climate Friendly Tour Operators • GHG and CO2 calculators should be based on international standards. These tools are designed to calculate total emissions from: • Air Travel • Tour Packages • Automotive Travel • Overnight Stays in Tourist Accommodations • Home and office energy consumption • Waste generation • Conferences and events How Do Offset Programs Work • STI can custom design a web-based calculator to meet your business’ unique needs.
Climate Friendly Tour Operators • Cost Efficiency • Credibility • Business Support • Philanthropic and Humanitarian Benefits Factors to Consider in Choosing a Program
Climate Friendly Tour Operators • As little as$8 - $15 per metric ton (eg. flight from Los Angeles to New York) - less for partial offsetting. • Implementation - Tour operators, event planners, resorts, airlines can: • Buy offsets in bulk at a reduced or wholesale rate and use voluntary offset programs to generate revenue; • Offer matching programs or partial offsets, donating a portion of total offset to attract new clients; • Offset internal emissions by reallocating part of their marketing budget to corporate responsibility; • Energy audit/calculations (internally, consultant, STI, etc.) • Calculator integration • PR, education and outreach, etc Reason #1 Cost Efficiency
Climate Friendly Tour Operators Reason #1 Cost Efficiency The more MyClimate™offsets and the more Green Tags you purchase and the longer the contract period, the lower the price per ton i.e., our margin decreases as your price decreases. For Example: Yearly Contracted 1-year Contract 3-year Contract Amount in tons of CO2US$ / ton CO2US$ / ton CO2 100 $17.50 $15 500 $15 $12.50 1,000 $11.25 $10 5,000 $10.75 $9.50 10,000 $10 $8.75
Climate Friendly Tour Operators • Projects meet highest international Clean Development Mechanism (CDM) criteria under the Kyoto Protocol and the WWF supported Gold Standard - the premium quality benchmark – backed by 40 NGOs globally. • Domestic projects should be Green-E certified. • Verifiable projects that avoid double counting, and support environmental “additionality.” • Projects should support community development, benefits to environment and energy independence. • NGO transparency - e.g., MyClimate™ allocates an average of 80% of the funds received directly to the represented sustainable development projects. Reason #2 Credibility
Climate Friendly Tour Operators Reason #3 Business Support • Program providers shouldensure your satisfaction,working directly with booking, IT and or marketing departments, providing the following: • CO2 and GHG calculators using scientific data and tools developed at the Swiss Federal Institute of Technology according to your needs i.e., air travel, hotel stays, etc. • Technology which can beseamlessly integrated into booking systems, including Amadeus, Galileo and others. • Documentation, text and photos, suitable for addressing your marketing, communication and training needs. • Marketing support through brand promotion, internet and print outlets, press releases, and event promos.
Climate Friendly Tour Operators “Carbon-offsetting” and STI in the media spotlight: • CNN World News • Conde Nast Traveler • Natural Health • New York Times • Time Magazine • Courier (NTA) • e-Turbo News • Greenbiz.com Reason #3 Business Support PR, Education and Outreach
Climate Friendly Tour Operators • Investment shoulddirectly support local communities& businesses, funding more environmentally friendly development projects that support local economies in developing countries. Eg., MyClimate™ finances the construction of solar water heating systems in South Africa, solar energy in Costa Rica, and biomass in India. • STI has expanded its portfolio of carbon offset / emission reduction projects by collaborating with Bonneville Environmental Foundation (BEF), the leading provider of green tags, for domestic projects • A portion of the investment can be tax-deductible charitable donation. Reason #4 Philanthropic and Humanitarian Benefits
Climate Friendly Tour Operators Gain all of these benefits while enhancing your bottom line… • Estimated number of LOHAS consumers alone is 63 million strong and growing rapidly, representing more than $226 billion in annual sales in the U.S. and more than $540 billion worldwide. • 30% of adult Americansor 58.5 million people make purchasing decisions based on their personal, social and environmental values (Understanding the LOHAS Market, 2002). • Almost 90% of the U.S. population state that it is important for companies to not just be profitable, but to be mindful of their impact on the environment and society (Corporate Social Responsibility: Consumer Understanding and Influence, 2005). • When price and quality are equal,76% of consumers would switch brandsor retailers if a company were associated with a good cause. And 90% of consumers will pay a premiumto purchase from companies that share their values (Walker Research). Additional Benefits: The LOHAS Market
Climate Friendly Tour Operators The previously mentioned statistics mirror those for eco- & active travel… • Nearly 36%of adult Americans or 55.1 million people can be classified as eco- or geotourists. • 58.5 million Americans say they would pay more to use a travel company that strives to protect and preserve the environment. (TIA and National Geographic Traveler 2003). Additional Benefits: The Active Travel Market • Almost 75% of adventure travelers polled said that responsible travel practices play a key role when choosing a travel provider for their vacation. • Active travelers are willing to spend an average of 10% more on excursions if they are confident that the travel provider is responsible and respects the ecology and diversity of the planet. (The Adventure Collection National Opinion Survey, 2005)
Climate Friendly Tour Operators Carbon Offset Survey • 75.4% of self-declared environmentally oriented consumers are willing to pay $1-20 extra per ticket to mitigate the greenhouse gas effects of their travel. • 76.7% of self-declared environmentally oriented consumers would switch to online travel sites that make contributions on their behalf to offset their emissions. • 76.2% of businesses would be willing to switch their travel providers to one that can offset emissions for a few extra dollars per ticket. (Anavo Group and Sustainable Travel International, 2005) Additional Benefits
Climate Friendly Tour Operators Nike and Delta • For every flight booked by Nike staff w/ Delta Airlines, a small portion of ticket price flows into fund for purchase of emission reductions. • Result: Booking share w/ Delta increased by 8%. Industry Leaders BP & Interface Inc, USA • Quantity rebate for staff fueling at BP stations • Part of rebate used to purchase emission reductions. • Result: Cost-neutral for Interface • BP increased sales with Interface by factor 5 • Revenue used to finance energy efficiency in US schools • BP achieved carbon emissions reduction goal years ahead of schedule
Climate Friendly Tour Operators Natural Habitat Adventures “The World’s Greatest Nature Expeditions” • STI calculated all internal tour emissions & customer flights • Nathab purchased wholesale volume, and now offers a matching program to it’s customers to offset • STI helped integrate program into web site, catalog, sales, pre-trip processes, marketing and PR MyClimate™ Industry Leaders
Climate Friendly Tour Operators Select the percentage of carbon offset you would like to contribute: 100% 50% 25% Tell us the number of travellers for whom you are purchasing carbon offsets. 2
Climate Friendly Tour Operators Corporate: • HSBC – The World’s Local Bank “HSBC is the world’s first major carbon neutral bank. During our recent purchase of 170,000 tons of emissions reductions, The Gold Standard gave us the credibility and sustainable development benefits we were looking for. For these reasons, for future purchases we’ll look for the Gold Standard.” Francis Sullivan, Advisor on the Environment, HSBC • Whole Foods – STI is calculating grocery distribution emissions Resorts & Accommodations: • Grand Teton Lodge Company – Stay Green Initiative • Crystal Springs Resort Developer Non-profits: • WWF and Greenpeace UK MyClimate™ Industry Leaders
Climate Friendly Tour Operators Conferences and Events: • The World Cup in Germany: MyClimate recently facilitated one of the largest single offset projects to date. FIFA awarded BioTherm Energy, a South African developer of energy projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol the opportunity to offset the GHG emissions from this year's World Cup in Germany. It’s based on a fuel-switching project, where sawdust from surrounding sawmills will be used to replace coal in the boilers of a large citrus farm's processing facility. The project will minimize waste, reduce GHG emissions and foster sustainable development in the area. MyClimate™ Industry Leaders
Climate Friendly Tour Operators Conferences and Events: • Caribbean Tourism Organization (CTO)’s 2006 Conference on Sustainable Tourism Development: "Keeping the Right Balance - Economic Progress and Sustainable Tourism" MyClimate™ offset conference emissions and attendee flights. • 2006 World Urban Forum - a key international event to bring the global community together & pinpoint real solutions to the challenges facing cities and communities across the world. MyClimate is helping offset conference emissions in conjunction with The GLOBE Foundation, the Government of Canada and the United Nations' Settlements Program, as well as offering travel offsets to some 10,000 expected attendees. • The World Cup in Germany: 101,000 t CO2 • 2006 National Tour Association Convention MyClimate™ Industry Leaders
Climate Friendly Tour Operators Travel Agents: United Fairfax Travel / American Express • UFX purchases partialMyClimate™offsets for every airline ticket booked. Travelers can upgrade to a full MyClimate™ticket for about $5-10. • Positive impacts add up quickly e.g., it takes about 15 full MyClimate™tickets to finance construction of an entire solar water heating system in Africa that replaces need to burn virgin forest wood and import diesel fuel. MyClimate™ Industry Leaders • Result: • ‘Guilt free' travel at no/little additional cost • Cause marketing benefits/increased revenue stream for UFX • increased customer loyalty and retention
Climate Friendly Tour Operators The Bottom Line Doing Well by Doing Good • Support sustainable development in poor countries by creating a renewable energy infrastructure. • Support stable climate & energy independence. • Seize opportunities for industry leadership, destination stewardship and corporate social responsibility • Address consumer’s growing concerns about environmental issues and demand for transparency in the marketplace • Enhance reputation in time of fading customer loyalty • Improve global warming awareness and brand awareness • Increase employee loyalty and morale • Everyone benefits - communities, businesses, non-profits, governments perhaps more importantly, future generations. GHG offsetting is becoming an important tool for businesses.
Climate Friendly Tour Operators Next Steps: First Best Solutions Investing in carbon offsets is an efficient way to mitigate or neutralize your GHG emissions, but it’s not a first best solution. Reducing Your GHG Emissions is a first best solution: • Improve Energy Efficiency, Conservation and Management • Focus on Solid Waste Management, Reduction, Reuse and Recycling • Make the Switch to Renewable Energy • Enhance or Implement Alternative and Public Transportation Initiatives • Use Alternative Fuel Vehicles and Offer Tax Break Incentives • Encourage Video and Teleconferencing • Offer Flexible Work Schedules and Telecommuting
Climate Friendly Tour Operators Next Steps: Second Best Solutions • Measure GHG/carbon emissions • Evaluate costs and offset options • Set targets • Offset accordingly (partial, matching, simple link, etc.) • Integrate Educational components into business Operations • Take advantage of cause marketing benefits
Climate Friendly Tour Operators We can help with these offset implementation strategies: • Energy Audit / Calculate your Emissions • Choose Investment Level / Offset Option • Customized Website Tour GHG Calculator Page • Website Itinerary Pages • Website Home Page • Catalog Insert • Sales / Reservation Process • On-line Booking Function • Pre and Post-trip Materials • E-Newsletter Tour Operator Integration: Top 10 Contact us for Top 10 details, or for a comprehensive educational service package to help implement this into your business operations.
Climate Friendly Tour Operators Next Steps? Get Involved - we can Help! www.My-Climate.com www.SustainableTravel.com Powered by our Sustainable Network: Partners, Members, Investors, Corporate Sponsors, Contributors Leave the World a Better Place™ Peter Davis Krahenbuhl Email: firstname.lastname@example.org Phone: 303-448-0967