In the field with the International Olympic Committee

At a glance

• With the goal of being a role model in sustainability and inspiring other organizations in the sports community, the IOC has made significant progress in reducing its environmental footprint.
• The organization has implemented a carbon management system using the GHG Protocol to systematically measure, understand and reduce emissions.
• Key reduction strategies include minimizing air travel – the largest contributor to CO₂ output – optimizing energy use in infrastructure and promoting sustainable sourcing.
• Measures aimed at cutting air travel could potentially affect organizational culture, communication, operational efficiency, employee satisfaction and the organization’s ability to attract talent.

As a nonprofit organization, the International Olympic Committee (IOC) is not legally required to reduce its carbon emissions. Nevertheless, as the leader of the Olympic Movement, which includes all individuals and entities inspired by the values of Olympism, the IOC is responsible for setting a positive example and inspiring the broader sports community to take climate action. With ambitious climate targets aimed at halving its carbon footprint by 2030, the IOC has embarked on a strategic sustainability journey. At the heart of this process is the adoption of a carbon emission management and budgeting program to reduce the IOC’s environmental impact.

This innovative system has led to the introduction of specific measures focused on areas such as mobility, building management and procurement. The successful implementation of strategies to reduce emissions linked to international business travel, the main contributor to the IOC’s overall emissions, was noteworthy. However, the impact of these measures had to be evaluated, particularly regarding their potential effects on organizational culture and efficiency, communication, employee satisfaction and talent attraction.

The broader issue

Around the world, there is an increasing focus on the urgency of addressing global warming and taking decisive action on climate change. At the Conference of the Parties (COP) in December 2015, participating nations took a significant first step toward fighting climate change by adopting the Paris Agreement. Signatory parties committed to take action to limit the temperature increase to 1.5°C. To reach this goal, greenhouse gas (GHG) emissions would need to peak before 2025 at the latest and decline 43% by 2030.

In response to the climate crisis, many organizations have turned to carbon accounting to quantify the amount of GHGs they produce, identify where to focus emissions reduction efforts and track the impact of their initiatives. The GHG Protocol supplies the world’s most widely used GHG accounting standards, designed to provide a framework for businesses, governments and other entities such as non-governmental organizations (NGOs) to measure their GHG emissions. Annual reporting on these emissions has become mandatory for thousands of firms around the world in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the IFRS Foundation’s International Sustainability Standards Board (ISSB).

Carbon emission management at IOC

Inspiring the sports community

According to the IOC, sport plays a vital role in society, promoting healthy living and social cohesion. The universal appeal of sport means that the IOC has a special responsibility to advocate for a more sustainable future for the world. The IOC’s ambition is to be a role model in sustainability, setting an example, inspiring others and establishing a paradigm for the entire sports community.

Carbon footprint budgeting

To understand which activities contributed the most to emissions, a carbon footprinting methodology was developed. The IOC adopted the GHG Protocol, which maps GHG emissions by applying life cycle assessment (LCA) to evaluate the impacts associated with organizations, products and services over their entire life cycles. The IOC’s carbon footprint methodology is shown in Figure 1.

The IOC’s carbon reduction plan

In 2022, the IOC’s carbon footprint was 17,175 tonnes of CO₂ (equivalent to the annual energy use of approximately 11,000 homes), with travel accounting for 72.3% of emissions. A carbon reduction plan was introduced to achieve the ambitious target of reducing CO₂ emissions by 50% by 2030. The plan focused on three key areas: mobility, infrastructure and sourcing. Infrastructure measures included the energy efficiency of the new headquarters, Olympic House, which was built to some of the highest sustainability standards. Sourcing measures aimed to minimize, reuse or recycle waste from daily activities and events through a responsible sourcing policy.

The primary focus, however, was on reducing air travel, the main contributor to the IOC’s carbon footprint, with a series of measures aimed at optimizing business travel. Examples include using technology for hybrid or fully virtual meetings, reducing the frequency of large in-person meetings and events, implementing CO₂ travel budgets for each department and major IOC events, communicating individual travel-related CO₂ data, and providing tools to help travelers monitor their carbon emissions and make informed choices.

Guiding principles were issued to assist employees in making informed decisions before undertaking business travel so they could assess whether a trip added value to the organization (Figure 2).

Indirect impact of carbon reduction

The carbon reduction plan brought about notable shifts in travel behavior, which led to a significant reduction in business travel. However, the IOC had to consider the potential side effects of reducing air travel, which could impact the organization beyond reducing its CO₂ footprint:

• Decreased effectiveness and slower decision making: Business travel enhances organizational culture and communication by fostering face-to-face interactions critical for relationship building, networking and decision making. Limiting business travel could deprive organizations of crucial communication in person.
• Impact on job satisfaction: For many employees, the opportunity to travel is considered an important fringe benefit, providing excitement and a break from routine. Fewer opportunities to travel could negatively affect job satisfaction.
• Lower appeal among potential talent: Many prospective employees favor organizations that offer travel opportunities, as these experiences can broaden their horizons and contribute to personal and professional development. Limiting such opportunities might reduce the appeal of some jobs.

Did it work?

The benefits of reducing air travel

The positive impact on the organization of reducing air travel more than offset the potential downsides:

• Increased efficiency: The smart travel principles introduced by the IOC positively impacted efficiency. As employees stopped traveling for one-day meetings or combined multiple meetings into single trips, organizational efficiency and collaboration improved.
• Enhanced job satisfaction: Some employees who reduced their business travel experienced well-being and work-life balance benefits. This was especially true for young parents.
• Improved talent appeal: Today’s workforce increasingly seeks out responsible companies committed to sustainable business practices. The IOC’s focus on sustainability is a compelling draw, mitigating any negative impacts of reduced travel and making the organization more attractive to potential talent.

Inspiring the sports community

To set an example and inspire fellow organizations, such as the International Sports Federations and National Olympic Committees, the IOC has introduced a range of programs to support them in meeting their climate commitments. These include monthly training sessions focused on understanding carbon footprints as well as funding to implement measures to reduce environmental impact. Through continued collaboration between the various parties, these solutions have become increasingly innovative.

“We wanted to influence stakeholders but we had to walk the talk. We could not just go out there and tell the organizations in the Olympic Movement to be sustainable. We had to set an example ourselves.” 

– Julie Duffus, Olympic Movement Sustainability Senior Manager

Takeaways

The IOC’s journey toward reducing its carbon footprint offers valuable lessons on the complexities of sustainability strategy, particularly in developing and executing a carbon emission management and reporting system.

• Implementing a carbon management system presents numerous challenges, ranging from accurately tracking emissions to integrating these efforts within the organization’s operational framework.
• Sustainability measures can have broader organizational side effects. Although they reduce carbon emissions effectively, they can also lead to changes in workplace dynamics, impacting everything from organizational efficiency and employee engagement to talent attraction.
• Sustainability is often not just about one’s own organization, but also about inspiring and collaborating with others.

This article is based on the IMD case IMD-7-2512 available from The Case Centre at www.thecasecentre.org

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