DHL Express and IAG Cargo have entered into a five-year agreement to enhance the use of sustainable aviation fuel (SAF), reinforcing efforts toward significant emission reductions in air freight. The collaboration will leverage 40 million liters of neat SAF annually, aimed at curbing lifecycle carbon emissions stemming from air cargo operations. Companies involved in logistics are increasingly focusing on sustainable solutions, reflecting an industry-wide trend toward environmental responsibility.
Previously, companies like DHL and IAG had separate initiatives and targets for reduced emissions, but collaborations like this demonstrate a shift toward partnership-driven strategies. Historical partnerships in such sectors occasionally focused on operational efficiencies, whereas the current emphasis predominantly targets sustainability. This revamped alliance not only represents a strategic environmental move but also signals a responsiveness to evolving regulatory and public expectations regarding sustainable practices.
What Will the Agreement Achieve?
The new agreement will see DHL Express benefit from substantial CO2e emission reductions, specifically impacting British Airways flights with its freight. By 2025, approximately 240 million liters of SAF are planned to be utilized at London Heathrow Airport. This initiative translates to a decrease of around 640,000 tons of CO2e in lifecycle greenhouse gas emissions. IAG Cargo will facilitate extensive use of SAF across its network, covering fuel associated with transporting DHL Express cargo.
How Sustainable is the Used Fuel?
SAF used in this initiative is derived from renewable resources like used cooking oil and food waste, achieving nearly 80% lower emissions than conventional jet fuel. It is certified by the International Sustainability & Carbon Certification (ISCC), ensuring adherence to strict sustainability criteria. By focusing on innovative fuel options, DHL and IAG demonstrate a proactive stance in aviation sustainability efforts.
DHL’s Sustainability Roadmap, announced in 2021, plays a pivotal role in supporting the logistics giant’s environmental commitments. The roadmap emphasizes decarbonization, with objectives to blend at least 30% SAF for air transport by 2030. The agreement with IAG complements this strategy, providing a scalable model for emission reductions in the industry.
According to Travis Cobb, Executive Vice President of Global Network Operations & Aviation at DHL Express, the partnership exemplifies effective collaboration in reaching sustainability goals.
“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” he stated.
IAG, heading multiple airline brands, aims to achieve 10% SAF usage by 2030, contributing to a broader net-zero emissions target by 2050. As of the end of 2023, the group secured investment agreements totaling $1 billion for SAF. Chief Sales and Marketing Officer at IAG Cargo, Camilo Garcia Cervera, remarked,
“Partnerships like these will be critical to scaling the use of sustainable aviation fuel.”
Going forward, collaboration between logistics and aviation sectors will be crucial in addressing greenhouse gas emissions effectively. As regulatory landscapes evolve, businesses engaging in cross-sector cooperative agreements are gaining attention for their proactive measures. The strategic partnership between DHL and IAG may serve as a benchmark for similar initiatives in the air freight industry aiming for large-scale emission reductions.
