Singapore bank makes more bankers fly economy in carbon-cutting push
Bankers use a lot of carbon. For all the talk about carbon neutrality and cutting emissions, Goldman Sachs' most recent sustainability report reveals that the firm emitted nearly 80,000 tonnes of carbon from business travel last year, 90% of which came from flying. This was up 30% on 2022.
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While Goldman Sachs is not, to our knowledge, encouraging its people to fly less, one Singapore bank is.
In an effort to discourage unnecessary flights, OCBC has just introduced new guidelines for air travel. Among other things, they include a compulsion to fly economy for most junior staff.
Under the new rules, all OCBC bankers below executive director level must now fly economy, irrespective of the length of their journey. Previously, they got to fly business class if they were flying for five hours or more.
The changes come into effect on August 1st and are not universally popular, with some juniors at OCBC complaining that they're being made to bear the brunt of changes while senior managers get to fly in luxury. Managing directors at the bank are still able to fly business class for flights of a duration of three to five hours or more (depending on the seniority of the MD).
A spokesperson for OCBC says the changes are part of the bank's commitment to sustainability: “We are committed to reducing our carbon emissions, including in the area of business travel, as part of our transition to a low-carbon economy. The increasing popularity of videoconferencing tools among our clients, colleagues and partners for discussions and meetings have rendered in-person meetings less essential."
Although bankers below ED level are complaining about the new policy, some OCBC insiders say it will make little difference: most key clients are located within a five-hour flight radius; it will only really make a difference for flights to New York, which typically involve managing directors anyway.
Also included in the updated travel strategy is a new requirement for employees to pay 50% of the air ticket cost for the extension of business trips for personal purposes. It's this that seems particularly unpopular with OCBC juniors, who were previously able to append a holiday to travel for work. "Needless to say, it's all about cost," says one.
"In our ongoing review of our travel policy, we have maintained good practices such as having a clear distinction between business trips and personal holidays and avoiding group travel unless necessary," says OCBC.
Most bankers are flying less than in the past. In 2019, Goldman was emitting 135,000 tonnes of carbon as its staff travelled internally and to meet clients. Despite last year's rise, it was still 40% below this level in 2023.
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