by 3 minutes Reuters (Reuters) – Barings Asset Management will unveil actions to reduce carbon emissions on Wednesday, including a new accounting method for air travel, among other efforts to influence employee behavior as staff return to their offices this fall, according to management. A passenger plane takes off from Luton Airport in Luton, England, on January 7, 2018. Peter Cziborra/Reuters According to Barings CEO Mike Freno, one purpose of the program is to provide data to employees and managers so they can decide which business visits are worth the cost of the greenhouse gas emissions they produce. “We’re starting to provide some transparency to teammates to see what the consequences are,” Freno added. While the levies are only for internal use, politicians in the United States have a number of ideas for putting a real price on carbon. The plans by the mid-sized asset management, a unit of Massachusetts Mutual Life Insurance Co, demonstrate how internal carbon pricing has extended into the banking industry. Similar fees have been employed elsewhere, including at Microsoft Corp., and provide a means for businesses to track emissions-producing activities, according to Ateli Iyalla, managing director of CDP, a charity that studies the problem. The majority of emissions in white-collar businesses come from ordinary employee activity. According to Barings, corporate travel accounted for half of the 21,688 tons of carbon it produced in 2019, with worker commutes accounting for another 29%, far outnumbering the 2% attributed to heating expenditures. Freno and other Barings executives said they will utilize more renewable energy and work-from-home arrangements to achieve net zero greenhouse gas emissions by 2030. Employees of Barings will be charged an additional fee based on the market price of carbon released for their flights, which is currently roughly $20 per ton in North America. According to Sarah Munday, Barings sustainability director, a round-way business-class flight to Barings’ London offices from its Charlotte, N.C. headquarters might add $120 to the internal cost of the trip. Barings may use the extra cash toward things like carbon offsets. According to Freno, the company spent more than $20 million on travel in 2019 and expects to save 25% next year. Ross Kerber contributed reporting from Boston, and Dan Grebler edited the piece./n
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