This World Earth Day, IWG puts a spotlight on how reduced commuting and more localised working can support the environment
- Study by International Workplace Group and Arup quantifies the hybrid model’s true potential as a means of reducing work-related carbon emissions
- Allowing people to work close to home has the potential to reduce a worker’s work-related carbon emissions by between 49% and 90%2
- Daily commuting to city centre offices has the biggest carbon footprint of any way of working
- Businesses have cut energy usage by a fifth (19%) through more efficient use of office space or by providing teams access to flexible workspaces1.
- IWG provides over 5,000 locations in towns and cities of all sizes across the world, helping businesses and their teams reduce the need for long daily commutes, decrease work-related carbon emissions and improve employee wellbeing
Hybrid working could reduce work-related carbon emissions by up to 90% by enabling employees to work closer to home, according to a study from International Workplace Group (IWG) in partnership with Arup. The transition to more localised, hybrid models of working is becoming an increasingly important part of how organisations, communities and individuals can collectively reduce their environmental impact – the theme of this year’s World Earth Day.
IWG, the world’s largest platform for work with brands including Spaces and Regus, measured the environmental impact of hybrid working, based on both building and transport emissions, on six cities across the US and UK with a deep dive on two major carbon contributors, London and LA. Others examined were New York City, Atlanta, Manchester and Glasgow.
Cities in the U.S. showed the largest potential carbon savings, due to the prevalence of commuting by car, with Atlanta (90% reduction) just edging out Los Angeles (87%) and New York (82%). 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.
The findings show that a traditional five-day commute into a city centre has the largest carbon footprint, with distance identified as the key driver of emissions. In London, emissions were reduced by 49% when workers split their time between a city centre HQ and a local workspace, and by 43% when splitting time between a local workspace and home, compared to a traditional commuting pattern.
Hybrid and more flexible ways of working continue to demonstrably transform the way people work worldwide; the rapid growth of IWG’s global network is testament to this demand for more distributed ways of working, as it enables this shift. By supporting more localised ways of working, this model reflects a broader shift towards shared responsibility across individuals, communities and organisations. Hybrid working from effective, high-quality workspaces closer to where people live allows teams to meet and collaborate in person when needed, while leveraging digital tools to work efficiently from anywhere.
By pairing sustainability goals with hybrid working, enabled through access to IWG’s network of flexible workspaces closer to where people live, companies can take a practical step to reduce energy consumption and support Australia’s transition to net zero. This approach aligns with the Australian Government’s target to reduce emissions 62–70% below 2005 levels, by 2035. 4
The last few years have demonstrated that organizations can thrive under this model; not only do businesses see tangible productivity benefits – hybrid working could boost productivity by 11% in the US and 12% in the UK3 – but employees benefit from greater flexibility, reduced stress, and improved work-life balance – equivalent to a 7–8% pay rise in perceived value.
In Australia, the impact of commuting is clear: Long commutes into the office 5 days a week negatively impacts mental health (81%), productivity (83%), financial well-being (81%), and relationships with family and friends (77%), reinforcing employees’ rising need for both flexibility and proximity.5
A further environmental impact study conducted by IWG and Arup showed that businesses adopting this model are already delivering measurable environmental benefits. Findings showed that companies adopting hybrid models have reduced their energy usage by nearly a fifth (19%) through more efficient use of office space and access to flexible workspaces.
Recent data from BITRE shows road transport emissions in Australia remain at or near record levels. Road vehicles made up 84% of full fuel greenhouse gas emissions from all domestic transport modes in 2024-25, in comparison to 10% from aviation6, reinforcing the importance of reducing commuter-related travel as part of broader decarbonisation efforts.
Mark Dixon, Founder and CEO of International Workplace Group, commented:
“With the potential to reduce work-related emissions by up to 90%, the findings of our research with Arup are clear: five-day commuting to city centre offices generates the largest carbon footprint, and simply reducing travel time can lead to a significant drop in emissions.
Changing long-established patterns of behaviour takes time, and supportive policies and infrastructure play an important role in enabling companies to expand hybrid working and make it easier for employees to work closer to home.
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 a lower impact on the environment. The results of our research with Arup show clearly that, given the right will, small shifts in everyday working patterns can meaningfully reduce our overall carbon footprint, making this change well within our power – right now.”
1 Research among 511 business leaders and facilities managers in the UK who work hybrid in April 2024 by Mortar Research. Mortar Research is accredited by the Market Research Society.
2 Study titled The future of work: A cleaner, hybrid future published in April 2023 by IWG and ARUP
3 Study titled IWG Hybrid Working Productivity Report published in June 2025 by IWG and ARUP
4 Department of Climate Change, Energy, the Environment and Water of Australia, Net Zero 2025
5 Australian Local Workspaces & Hybrid Trends 2025 survey, commissioned by IWG, was conducted in October – November 2025 by Censuswide and targeted 1,001 full-time Australian hybrid workers 18 years and older from businesses with 30+ employees
6 Australian Government Bureau of Infrastructure and Transport Research Economics (BITRE), Transport Energy and Environment, Australian Infrastructure and Transport Statistics Yearbook 2025
About International Workplace Group PLC
International Workplace Group (IWG) is the world’s leading platform for work enabling companies of all sizes to work more productively and profitably. We create personal, financial, and strategic value for the most exciting companies and well-known organizations on the planet as well as individuals and the next generation of industry leaders. All of them harness the power of IWG’s platform to increase their productivity, efficiency, agility, and market proximity.
International Workplace Group’s unrivalled network coverage includes more than 5,000 locations across 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.
Our brands including Regus, Spaces, HQ and Signature serve millions of people, providing professional, inspiring and collaborative workspaces and all our digital services are available via the IWG app.
For more information
Visit www.iwgplc.com and for more information on partnering with International Workplace Group, see: https://www.iwgplc.com/develop-a-location
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