Employees are increasingly favouring the hybrid work model not only for the convenience of being able to work anywhere but also for reasons of greater job satisfaction, productivity, savings, and personal wellbeing. But there is another significant advantage – the reduction of carbon emissions from lesser commuting to the workplace.

A new research study by world-leading flexible workspace provider IWG and Arup reveals that hybrid working can facilitate major carbon savings and has the potential for significant impact on the climate crisis.

The study measured the environmental impact of hybrid working, based on both building and transport emissions, on six cities across the US and UK including the major carbon contributors, London and Los Angeles as well as New York City, Atlanta, Manchester and Glasgow.

The potential carbon savings remain significant for UK cities with Glasgow (80%), Manchester (70%) and London (49%) all showing potential to benefit from workers reducing their commutes and working closer to home as part of a hybrid model.

Cities in the US, on the other hand, showed the largest potential carbon savings when also taking transport into consideration, due to the prevalence of commuting by car, with Atlanta (90%) just edging out Los Angeles (87%) and New York (82%).

Data from these cities showed the potential for huge carbon savings in other countries around the globe such as Australia through the widespread adoption of hybrid working, which has rapidly expanded amongst white collar workers, who are now using the available technology to work where it’s most convenient and they are most productive.

The study compared different working scenarios for white collar workers spread across city centre workspaces, local workspaces and home, and also assessed the total emissions per worker based on transport, heating, cooling, lighting, energy use and more, to understand the climate impact.

The impact of the commute

A traditional five-day commute into a city centre has the biggest carbon footprint of all. In the year to March 2022, the transport sector[1] accounted for 18.7% of Australia’s national inventory of greenhouse gas emissions, which is a 5.4% increase of emissions from transport compared with the same period in 2021. The increase reflects a return towards normal levels of transport activity following the impacts of COVID restrictions on movement, including commuting to the office.

For instance, in London, carbon emissions were reduced by 49% for those dividing time between a city centre HQ and local workspace, and 43% lower when splitting time between a local workspace and home, when compared to a traditional 5-day commuting pattern. They key driver in emissions reductions was distance – closer proximity to workplaces reduced emissions.

Local buildings offer carbon savings

Compared with offices in the city centre, local workspaces were found to have less emissions per square metre of floor area. Crucially, local workspaces have higher utilisation rates, and therefore, each person is responsible for less emissions than a central office location.

Employees benefit from hybrid working

According to the study, 88% of workers said flexible working was important in a new role to save money and achieve a better work/life balance. By living and working closer to home, hybrid working helps people be healthier and more productive while leading more localised lives. In a similar survey targeting job seekers in the Greater Bay Area, IWG found that 7 in 10 respondents believe hybrid working helps them better manage their working hours, which eventually improves their work-life balance and benefits their mental wellbeing.

Hybrid workers, therefore, not only get health benefits but are also able to save by working locally. Someone based in Cambridge could save up to £2,931 a year by working from a Cambridge-based workspace instead of a London HQ just one day a week, with this figure increasing to £8,793 by working locally three days a week. Hybrid working also offers companies a significantly lower cost base with an average saving of $14,300 AUD per employee.[2]

“This new research reveals we have an extraordinary opportunity to radically reduce humanity’s negative environmental impact by encouraging the adoption of hybrid working. Five-day commuting to city centre offices has the largest carbon footprint of any working model,” says IWG CEO Mark Dixon.

“Simply spending less time in or travelling to a city centre drives a drop in emissions from buildings and vehicles alike. Allowing people to work close to home, enabling them to split their time between home and a local workplace, has the potential to reduce a worker’s work-related carbon emissions by 70%.

“The single biggest change we can all make right now is to provide people with the choice to work closer to where they need to be, and with lower impact on the environment. And that’s down to all of us. The results of our research with Arup show clearly that given the right will this is within our power – right now.”

Matthew Dillon, director of city economics and planning at Arup said, "This research clearly shows that changing our behaviour is key to achieving our carbon targets. We can choose to walk and cycle, and to make more journeys by public transport. Governments must also choose to invest in these networks, and use them to secure both environmental benefits and economic growth."

References:

[1] Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2022

[2] Global Workplace Analytic

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