Does Hybrid Work Lower Carbon Emissions?

Posted by Knight Frank Newcastle on 3rd August 2023 -

With the world of work having been upended and hybrid working approaches increasingly becoming the norm, we consider what this means for emissions, more importantly, does hybrid work really lower carbon emissions?

Embracing the global workplace experiment

The Covid-19 pandemic kickstarted the great global workplace experiment, which is far from over as workplace strategies continue to evolve. We have now entered the phase where occupiers have more clarity, better signals of what works and what doesn't, and now seek to reflect changes in work style in their future workplace.

The world of work has undoubtedly changed and will continue to do so. Yet, despite the initial buzz surrounding remote work and declarations that the 'office is dead', this is far from the reality we face. More occupiers are adopting workstyles that, whilst affording some flexibility to staff, position the office as the dominant place of work (in terms of hours/days spent).

According to our recent (Y)OUR SPACE survey, 56% of occupiers consider hybrid as their most likely working style, while 31% still perceive the office as the primary workplace for the foreseeable future through the adoption of office-only or office-first workstyles. With an increasing number of companies adopting this blended approach, does this mean fewer employee commutes and, therefore, lower emissions?

There have been studies suggesting just that. But, if offices are still operating and employees are also using energy at home, does this negate the lack of commuting emissions? Do companies account for this within their scope three emissions or even when choosing where to locate? We examine the ideas below in an attempt to answer the question: Does more flexible forms of work that combine office and remote settings really lower carbon emissions?

Shifting workplace paradigms in the UK

What does the hybrid work style mean in practice? Research shows that in the UK, employees spend, on average, 1.5 days per week working remotely, according to a report by IFO Centre for Macroeconomics and Surveys, which is above the global average of 0.9 days.

This is mirrored by another recent survey of FTSE 100 companies. Of the 100, 14 have transitioned to two days of remote work per week, while eight maintain a two to three-day work-from-home arrangement, and six operate on a two-day in-office schedule. Hybrid is clearly taking root in the UK. This new pattern will have implications for emissions, but there are nuances.

The complex reality of hybrid work

Some critics challenge the commonly held belief that eliminating daily commutes leads to a significant reduction in our carbon footprint. At first glance, it seems like a straightforward conclusion – fewer commutes should mean less pollution, right? However, the reality is much more complex.

In a half-empty office, the need for heating and air conditioning remains the same as in a full one to ensure employees' comfort, which is particularly true given that 79% of office space falls below the EPC B level.

On the other hand, when people work from home, they also consume energy for heating, air conditioning, running technology and lighting, among other things. We also know that more than half of residential properties in England currently fall below the potential minimum of EPC C.

Is simply giving up the commute a few times a week enough to offset the additional energy used for home comfort? Some argue that this is not the case.

During successive lockdowns in the UK, the average home electricity consumption increased by over 15% on weekdays, according to the International Energy Agency (IEA). Workers who usually use public transport or those with short commutes of less than 6km each way, might, in fact, increase their total emissions when working from home.

In addition, there may be seasonal differences due to differing energy demands. Office work in winter and home working in summer could lead to an overall reduction in emissions, according to environmental consulting firm WSP. The study estimated that home working in summer saves approximately 400kg of carbon emissions.

However, working from home five days a week results in around 2.5 tonnes of carbon produced annually, significantly more than an office worker, mainly due to increased home heating during winter.

Research by Reuters concludes a similar pattern. The study reveals that the emission reduction from commuting is balanced out by the increased energy consumption at home during remote work. While commuting directly contributes to carbon emissions, remote work often relies on digital technology and the internet. Data centres, servers, and internet infrastructure contribute to a carbon footprint that may not be immediately evident when considering the hybrid work model.

How then do emissions stack up?

We've analysed the Energy Performance Certificates (EPCs) of the office stock across England and Wales. These EPCs estimate an average just shy of 17kg of CO2 emissions annually per sqm for a typical air-conditioned office building over 9,000 sqm.

This equates to approximately 166.3kg of CO2 emissions per employee per year, or around 16kg of CO2 emissions per employee per week, assuming they work in the office full-time. This is based on British Council for Offices guidelines of 10 sqm of space per employee.

In the UK, 68% of commuters utilise cars for their commute. The average daily round-trip car commute covers a distance of 20.9 miles, resulting in approximately 5.5kg of CO2 emissions, according to the National Travel Survey. This brings the total carbon footprint, of commuting and office usage, for full time office workers to 43.5kg of CO2 emissions per employee per week.

But what about cities where commuters tend to lean towards public transport options? The carbon footprint per commuter might differ substantially from those heavily reliant on cars.

In London specifically, demand for public transport has normalised post-pandemic, as shown in the chart below, leading to the levelling off of Tube and Bus usage since the second half of 2022. The number of Tube and Bus trips in London has now reached 89% of pre-pandemic levels.

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