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Wipro: Business Travel Carbon Footprint Study Air Travel, FY 14-15 and FY 15-16

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Wipro: Business Travel Carbon Footprint StudyAir Travel, FY 14-15 and FY 15-16

Project Methodology

1. Business Goal Definition*

2. Organizational Boundary Setting*

3. Operational Boundary Setting*

4. Data Collection

5. Data Analysis6. Emission Factor

Selection/ Development

7. GHG Inventorying

(Baseline)8. Interpretation

9. Mitigation Scenario

Modelling

10. Estimating GHG Mitigation

Potential

11. GHG Mitigation

Recommendations

12. Reporting

* defined by ‘The Greenhouse Gas Protocol’: Corporate Accounting and Reporting Standard, World Resources Institute (WRI) World Business Council for Sustainable Development (WBCSD)

1. Business Goal Definition

Estimate GHG emissions from Wipro’s Air Travel activities and

evaluate mitigation alternatives as decision support for development of its Corporate GHG Mitigation

Roadmap

2. Organizational Boundary Definition

Wipro Technologies

(within boundary)

Wipro Infotech (outside

boundary)

Wipro Business Process Services

(outside boundary)

Wipro Eco Energy Services

(outside boundary)

Wipro Ltd.

* based on 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Vol. 2 - Energy, Chapter 3: Mobile Combustion

3. Operational Boundary Definition

Corporate Business Air

Travel Emissions

Scope 3 Emissions

•Electricity AT&C Emissions

•Aircraft Fuel Combustion Emissions

•Capital Goods Manufacturing Emissions

•Fuel Production (Supply-Chain) Emissions

Scope 2 Emissions

• Electricity Generation (Office Electricity) Emissions

Scope 1 Emissions

• Owned Vehicle Emissions

* based on 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Vol. 2 - Energy, Chapter 3: Mobile Combustion

4. Data Collection & 5. Data Analysis

Activity Data Questionnaire Design and Collection

Activity Data Quality Assessment and Verification

Flight Distance Calculation (~ 11,000 pairs, ~ 4,000 newly

researched)

Flight Distance Categorization: Short-Long Haul for Domestic, Short-

Medium-Long for International

Determining list of Airlines

Passenger-km totalization by Sectors (International,

Domestic-India, Domestic-USA, Others)

Passenger-km totalization by Flight Distance Category

within Sectors (International – Short, Medium, Long, Domestic - Short, Long)

Passenger-km totalization by Airline

6. Emission Factor Development

* based on 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Vol. 2 - Energy, Chapter 3: Mobile Combustion

LTO and Cruise Mode Emissions (Total) for all aircraft models

Convert to best-case per-passenger emission factors for finite distances for

every aircraft model

(using max PAX Capacity and Load-Factor of 1)

Repeat for additional finite distances per model, and replicate for each aircraft

model

Calculate weighting factor based on % of aircraft model count vs. total fleet count

of airline

Calculate per-passenger emissions for finite distance for each airline as sum of weighted LTO & Cruise-mode emissions

(account for weighted-avg. airline passenger capacity, airline-wide

passenger load factor, and PAX to Freight Ratio)

Repeat for adiditonal finited distances for each domestic airline

Assumptions• One passenger per booking entry

• Same airline for all legs of multi-stop flights

• GHG mitigation through substitution of Multi-Leg Roundtrip-Flights with Non-Stop Roundtrip-Flights was simple for a roundtrip flight with even-number of legs (eg. 4-leg flight: Mumbai-Dubal-London-Dubai-London) wherein the ‘destination’ was the middle city (i.e. London). The process of determining the ‘destination’ for a roundtrip-flight with odd-number of legs (eg. 3-leg flight: Mumbai-Dubai-Geneva-Mumbai) was: identify the city following the ‘mid-point’ in the even-number sequence (eg. mid-point of 4 city trip would be 2nd-city, the subsequent city would be the 3rd-city in the sequence –i.e. Geneva.

• 100% economy class seats

• Employee Count: 1,20,000

• Additional Employee Time per Flight Leg (Pre-Departure, Transit, Post-Arrival Time) : 3 hours/flight

• For Airlines wherein fleet composition and operation data were not available, the corresponding ‘average’ emission factor for the Sector was applied (eg. use of Avg. International Short Haul Emission Factor (kg CO2e/pass-km) for Ravn Alaska Airline’s International Short Haul Flights)

Materiality and Exclusions

• Scope 1 Emissions from Owned Vehicle use to support Air Travel activities not considered material to footprint and hence excluded

• Scope 2 Emissions attributable to Office Electricity Use (for Air Travel Management Operations) not considered material to footprint and hence excluded

• Scope 3 Emissions attributable to AT&C Losses resulting from Office Electricity Use (for Air Travel Management Operations) not considered material to footprint and hence excluded

• Scope 3 Emissions from Train Travel in the USA excluded

• Flights shorter than 100 kms excluded (considered to be data error)

• Flights costing less than INR 200 excluded (considered to be data error)

Definitions

Flight Distance Category Distance Range (km)

International – Short Haul < 2,000

International – Medium Haul > 2,000 to < 5,000

International – Long Haul > 5,000

Domestic – Short Haul < 500

Domestic – Long Haul > 500

Data Analysis:

Know your

Air Travel Metrics

Total Distance

Domestic - India

International

Domestic

Domestic - USA

324.4

174.3

136.4

809.9

1,134.4

336.9

160.3

FY 15-16FY 14-15

1,269.8

932.9

161.4

Distance Metrics(Million Passenger-kms)

Domestic - Others15.2 13.7

Total Flights

Domestic - India

International

Domestic

Domestic - USA

2,89,474

1,73,147

96,636

1,79,201

4,68,67

5

2,96,205

1,13,763

FY 15-16FY 14-15

4,98,32

72,02,122

1,59,166

Domestic - Others23,276 19,691

Flight Metrics(Nos. of Flights)

Auckland, New Zealand

Bonaire, Netherlands

Antilles

Lisbon, Portugal

Perth, Australia

London, United Kingdom

Singapore, Singapore

Sydney, Australia

Toronto, Canada

18,287.5

18177.93

18138.05

18,336.8

Tallinn, USSR

Geneva, Switzerland

Cotonou, Benin

Porto, Portugal

Guangzhou, China

Helsinki, Finland

Lyon, France

Lagos, Nigeria

Vego, Spain

Hongkong

106.6

107.2

109.9

128.5

101.4

5 Longest

International Flights

km km

5 Shortest

International Flights

Auckland, New Zealand

Heathrow, United Kingdom18,364.2

Delhi, India

Bangalore, India

Amritsar, India

Kochi, India

Dibrugarh, India

Port Blair, India

Dibrugarh, India

Kochi, India

Guwahati, India

Pune, India

2,418.7

2,408.6

2,385.4

2,368.7

2,483.5Baroda, India

Bombay, India

Calicut, India

Jammu, India

Dehradun, Uttarakhand

Pune, India

Srinagar, India

Chandigarh, India

124.1

131.7

142.6

143.2

102.3

5 Shortest Domestic-

India Flights

km km

5 Longest Domestic-

India Flights

Ahmedabad, India

Pune, India

Coimbatore, India

1.51Million Hours

1.35 Million Hours

3.01 Million Hours

2.76Million Hours

12.6 Hours

11.3 Hours

25.1Hours

23.0 Hours

Time Spent in Air

Total Travel Time*

Air time Per Employee

Total Travel Time Per

Employee

FY 15-16FY 14-15

Distance Per Employee10.6

Thousand Pax - km9.45

Thousand Pax - km

~4 Flights ~4 FlightsFlights Per Employee

*including pre-flight, post-flight, and transit time

Most Favoured International Airlines(flight count-based)

14%

11%

10%

8%

8%6%6%

5%

3%3%

26%

Most Favoured International AirlinesFY 2014-2015

Emirates

British Airways

Lufthansa

Singapore Airlines

Etihad Airways

Jet Airways

Qatar Airways

Air India

United Airlines

Cathay Pacific Airways

Others

19%

11%

9%

9%8%7%

5%

3%3%2%

24%

Most Favoured International AirlinesFY 2015-2016

Emirates

Etihad Airways

Lufthansa

British Airways

Singapore Airlines

Qatar Airways

Jet Airways

Air India

United Airlines

KLM Royal Dutch Airlines

Others

Most Favoured Domestic Airlines(flight count-based)

18%

18%

10%9%

9%

6%

5%

5%

4%2%

14%

Most Favoured Domestic AirlinesFY 2014-2015

Jet Airways

Indigo Airlines

United Airlines

Air India

Delta Airlines

American Airlines

Spice Jet

US Airways

Southwest Airlines

Go Air

Others

25%

22%

9%8%

8%

7%

3%3%

2%2%11%

Most Favoured Domestic AirlinesFY 2015-2016

Indigo Airlines

Jet Airways

United Airlines

American Airlines

Delta Airlines

Air India

Southwest Airlines

Spice Jet

US Airways

Go Air

Others

Data Analysis:

Know your

Baseline GHG Emissions

Corporate Business Travel (Air Travel) Emissions (‘000 Tonnes CO2e)

CategoryScope 3 – AircraftFuel Combustion

Scope 3 – FuelSupply Chain

Scope 3 – AircraftManufacturing

Total

International Air Travel

100.7 15.0 7.38 123.2

Domestic Air Travel 38.9 5.95 2.12 46.9

Total 139.6 21.0 9.51 170.1

FY 14-15

Corporate Business Travel (Air Travel) Emissions (‘000 Tonnes CO2e)

CategoryScope 3 – AircraftFuel Combustion

Scope 3 – FuelSupply Chain

Scope 3 – AircraftManufacturing

Total

International Air Travel

88.6 13.1 6.4 108.2

Domestic Air Travel 37.0 5.7 2.0 44.7

Total 125.6 18.8 8.4 152.9

FY 15-16

Air Travel Emission Trend – FY 14-15 vs. FY 15-16

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY 2014-2015 FY 2015-2016

Air Travel GHG Emissions: FY 14-15 and FY 15-16

Air Travel Emission Trend

GHG Emissions FY 2014 - 2015 -170.1 Thousand tonne CO2e

GHG Emissions FY 2015-2016 -152.9 Thousand tonne CO2e

Activity-Wise Air Travel Emission Distribution

82.1% 82.1%

12.3% 12.3%

5.6% 5.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

14-15 15-16Scope 3 – Aircraft Fuel Combustion Scope 3 – Fuel Supply Chain Scope 3 – Aircraft Manufacturing

International vs. Domestic Air Travel Emission Distribution

Domestic28%

International72%

FY 2014-2015

GHG Emission Distribution

Total GHG Emissions-

170.1 ‘000 Tonnes CO2e

International -

123.2 ‘000 Tonnes CO2

Domestic -

46.9 ‘000 Tonnes CO2e

Domestic29%

International71%

FY 2015-2016

GHG Emission Distribution

Total GHG Emissions-

152.9 ‘000 Tonnes CO2e

International

108.2 ‘000 Tonnes CO2e

Domestic

44.7 ‘000 Tonnes CO2e

Domestic Air Travel Emission Distribution

Domestic - India46%

Domestic - USA49%

Domestic - Other5%

FY 2014-2015

Domestic GHG Emission Distribution

Total Domestic GHG Emissions

46.9 ‘000 Tonnes CO2e

Domestic - India

21.7 ‘000 Tonnes CO2e

Domestic - USA

23.0 ‘000 Tonnes CO2e

Domestic - Other

2.38 ‘000 Tonnes CO2e

Domestic - India52%

Domestic - USA43%

Domestic - Other5%

FY 2015-2016

Domestic GHG Emission Distribution

Total Domestic GHG Emissions

44.7 ‘000 Tonnes CO2e

Domestic - India

23.1 ‘000 Tonnes CO2e

Domestic - USA

19.5 ‘000 Tonnes CO2e

Domestic - Other

2.21 ‘000 Tonnes CO2e

1.42 Tonnes

CO2e1.28 Tonnes

CO2e

341.6 kg CO2e

326.5kg CO2e

21.3 g CO2e 20.4 g CO2e

53.8 Million Litres

48.4Million Litres

Emission Per Employee

Emission Per Flight

Emission Per Rupee

Litres of fuel burnt

FY 14-15 FY 15-16GHG Emission Benchmarks

0.39 Tonnes

CO2e

0.36 Tonnes

CO2e

? 326.5kg CO2e

76,557 Tonnes

CO2e

110,809 Tonnes CO2e

Emission Per Employee

Emission Per Flight

Total Air Travel Emissions

Infosys TCSGHG Emission Benchmarks - Peers

Airline Emission Factor Benchmarks – International Airlines(kg CO2e/pass-km)

Benchmark International – Short Haul International – Medium Haul International – Long Haul

Lowest EF - 1 Ryanair 0.0748 Ryanair 0.0681 Rwand Air 0.0608

Lowest EF - 2Norwegian Air Shuttle

0.0830 Rwand Air 0.0685 Ryanair 0.0657

Lowest EF - 3 Spirit Airlines 0.0895 Alaska Airlines 0.0755 Alaska Airlines 0.0691

Highest EF - 1 Hanh Airlines 0.4413Regional Express

0.2707Regional Express

0.2684

Highest EF - 2Regional Express Airlines

0.2799New England Airlines

0.2811New England Airlines

0.2801

Highest EF - 3 Porter Airlines 0.2797 Hahn Airlines 0.3828 Hahn Airlines 0.3636

Average EF 0.1292 0.1116 0.1058

Airline Emission Factor Benchmarks – Popular International Airlines(kg CO2e/pass-km)

Benchmark International – Medium Haul

EF Rank - 1 United Airlines 0.0779

EF Rank - 2 Jet Airways 0.0960

EF Rank - 3 Lufthansa 0.0977

EF Rank - 4 KLM 0.1048

EF Rank - 5 Qatar Airways 0.1116

EF Rank - 6 Singapore Airlines 0.1133

EF Rank - 7 British Airways 0.1144

EF Rank - 8 Air India 0.1159

EF Rank - 9 Emirates 0.1240

EF Rank - 10 Etihad 0.1253

Airline Emission Factor Benchmarks – Domestic (India) Airlines(kg CO2e/pass-km)

Benchmark Domestic – India Short Haul Domestic India – Long Haul

Lowest EF - 1 Indigo Airlines 0.1289 Spice Jet 0.0861

Lowest EF - 2 GO Air 0.1304 Indigo Airlines 0.0867

Lowest EF - 3 Air Asia India 0.1378 GO Air 0.0877

Highest EF - 1 Air India 0.1996 Air India 0.1329

Highest EF - 2 Jet Airways 0.1806 Jet Airways 0.1198

Highest EF - 3 Spice Jet 0.1670 Vistara 0.1105

Average EF 0.1582 0.1031

Airline Emission Factor Benchmarks – Domestic (USA) Airlines(kg CO2e/pass-km)

Benchmark Domestic – USA Short Haul Domestic USA – Long Haul

Lowest EF - 1 Spirit Airlines 0.1299 Spirit Airlines 0.0860

Lowest EF - 2 West Jet 0.1462 West Jet 0.0931

Lowest EF - 3 Jet Blue 0.1512 Alaska Airlines 0.0955

Highest EF - 1 Porter Airlines 0.4370 Porter Airlines 0.2695

Highest EF - 2 Air Tran Airways 0.2649 Air Tran Airways 0.1779

Highest EF - 3 American Airlines 0.2100 Silver Airways 0.1619

Average EF 0.1832 0.1226

Scenario Modelling:

Know your

Mitigation Options

Scenario Flowchart

Scenario Models

Domestic

Domestic India

Best-In-Class Airline Switch

Railway Switch

Domestic USA

Best-In-Class Airline Switch

Non-Stop Switch

International

Best-In-Class Airline Switch

Non-Stop Switch

Scenario Flowchart

119.0

19.6 20.2

70.4

15.7 12.7

48.5

3.9 7.50.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

International Domestic India Domestic USA

GH

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Air Travel Category

FY 14- 15 Best In Class Switch

Baseline Recommendation Savings

Best In Class Switch

InternationalBaseline - 119.0 Thousand tonne CO2eRecommendation - 70.4 Thousand tonne CO2eSavings - 48.5 Thousand tonne CO2eSaving % -41%

Domestic IndiaBaseline - 19.6 Thousand tonne CO2eRecommendation - 15.7 Thousand tonne CO2eSavings - 3.9 Thousand tonne CO2eSaving % -37%

Domestic USABaseline - 20.2Thousand tonne CO2eRecommendation - 12.7 Thousand tonne CO2eSavings - 7.5 Thousand tonne CO2eSaving % - 20%

Scenario Flowchart

103.9

21.6 16.7

73.8

18.0 13.430.1

3.6 3.30.0

20.0

40.0

60.0

80.0

100.0

120.0

International Domestic India Domestic USA

GH

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Airtravel Categories

FY 15- 16 Best In Class Switch

Baseline Recommendation Savings

Best In Class Switch

InternationalBaseline - 103.8 Thousand tonne CO2eRecommendation - 73.8 Thousand tonne CO2eSavings - 30.0 Thousand tonne CO2eSaving % - 29%

Domestic IndiaBaseline - 21.6 Thousand tonne CO2eRecommendation - 18.0 Thousand tonne CO2eSavings - 3.6 Thousand tonne CO2eSaving % - 17%

Domestic USABaseline - 16.7Thousand tonne CO2eRecommendation - 13.4 Thousand tonne CO2eSavings - 3.3 Thousand tonne CO2eSaving % - 20%

Scenario Flowchart

Best In Class Switch for Top GHG Emission contributing sectors

FY 14 -15Baseline – 32.17 Thousand tonne CO2eRecommendation – 24.62 Thousand tonne CO2eSavings – 7.54 Thousand tonne CO2eSavings % - 23%

FY 15-16Baseline – 47.23 Thousand tonne CO2eRecommendation – 35.20 Thousand tonne CO2eSavings – 12.04 Thousand tonne CO2eSavings % - 25%

32.17

47.23

24.62

35.20

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

FY 14-15 FY 15-16

GH

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Baseline Recommendation

FY 14-15 vs FY 15-16

Scenario Flowchart

63.4

7.1

47.5

3.6

15.9

3.50.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

International Domestic USA

GH

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Air Travel Category

FY 14-15Non Stop Switch

Baseline Recommendation Savings

Non Stop Switch

InternationalBaseline - 63.4 Thousand tonne CO2eRecommendation - 47.4 Thousand tonne CO2eSavings - 15.9 Thousand tonne CO2eSaving % -25%

Domestic USABaseline - 7.0 Thousand tonne CO2eRecommendation - 3.6 Thousand tonne CO2eSavings - 3.50 Thousand tonne CO2eSaving % -25%

Scenario Flowchart

65.2

6.7

55.9

4.39.3

2.40.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

International Domestic USA

GH

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Air Travel Category

Non Stop Switch FY 15-16

Baseline Recommended Savings

Non Stop Switch

InternationalBaseline - 65.2 Thousand tonne CO2eRecommendation - 55.9 Thousand tonne CO2eSavings - 9.3 Thousand tonne CO2eSaving % - 14%

Domestic USABaseline - 6.7 Thousand tonne CO2eRecommendation - 4.3 Thousand tonne CO2eSavings - 2.4 Thousand tonne CO2eSaving % - 35%

Scenario Flowchart

Non Stop Switch for Top GHG Emission contributing sectors

FY 14-15Baseline – 13.96 Thousand tonne CO2eRecommendation – 10.61 Thousand tonne CO2eSavings – 3.34 Thousand tonne CO2eSavings % - 24%

FY 15-16Baseline – 16.57 Thousand tonne CO2eRecommendation – 12.48 Thousand tonne CO2eSavings – 4.09 Thousand tonne CO2eSavings % - 25%

13.96

16.57

10.61

12.48

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

FY 14-15 FY 15-16

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Baseline Recommendation

Key Recommendations• Give priority to Best-In-Class Airlines:

➢ For International Travel: United Airlines, Jet Airways, Lufthansa

➢ For Domestic Travel in India: Indigo, Go Air, Spicejet

• Switch journeys of < 200 km to shared vehicular transport such as express busses, express trains and car-pooled intercity-cabs

• Switch to Rajdhani, Duronto, Shatabdi , Amtrak Train Travel for Routes between key-city pairs served by these high-speed trains➢ For India-Travel: Mumbai-Ahmedabad, Mumbai-Baroda, Kolkata-Ranchi, Kolkata-Puri, Jaipur-Delhi, Bangalore-Chennai,

Mysore-Chennai, Chennai-Coimbatore, Pune-Hyderabad, New Delhi-Chandigarh, New Delhi-Amritsar

➢ For US-Travel: New York City-Boston, New York City-Philadelphia, Houston-Dallas, New York City-Washington DC

• Consider time savings from avoided air travel (with tele-video conferencing as a substitute) to be eligible for partial consideration as vacation-time for employees.