DHL, IAG Cargo Sign 5-Year Deal to Use Sustainable Aviation Fuel to Reduce Air Freight Emissions
Logistics giant DHL and International Airlines Group’s (IAG) cargo handling business IAG Cargo announced today a new five-year agreement, to increase the use of sustainable aviation fuel (SAF), aimed at reducing lifecycle emissions from air freight operations.
Under the new agreement, DHL Express will receive the Scope 3 emissions reductions from approximately 40 million liters of neat SAF per year. Together with a 2025 renewal, the agreement will enable approximately 240 million liters of SAF uplifted at London Heathrow Airport and reduce the lifecycle greenhouse gas emissions of DHL Express cargo transported on British Airways flights by an estimated 640,000 tons of CO2e.
The companies said the agreement will cover nearly all fuel associated with transporting DHL Express cargo across IAG Cargo’s network.
DHL said that the collaboration will be supported by a further framework agreement, which could increase total emissions reductions to over one million tons on a lifecycle basis, strengthening its cross-divisional strategy to secure reliable and diversified access to sustainable fuels.
Scaling the use of sustainable aviation fuels forms a key part of DHL’s Sustainability Roadmap. Launched in 2021, the roadmap includes a series of decarbonization and environmental commitments, including more ambitious climate targets and linking executive compensation to ESG goals. DHL aims to achieve at least 30% SAF blending across all air transport by 2030.
The SAF used in the collaboration is derived from sources such as used cooking oil and food waste, and can achieve approximately 80% lower lifecycle emissions compared to conventional jet fuel. The fuel is certified by the International Sustainability & Carbon Certification (ISCC).
Travis Cobb, EVP Global Network Operations & Aviation at DHL Express, said:
“This agreement shows what is possible when two committed SAF users in the industry pool their efforts. It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute to concrete emissions reductions.”
IAG is the parent company of airlines including Aer Lingus, British Airways, Iberia, Vueling, and LEVEL. The company has set targets to reach 10% SAF usage by 2030 and net zero emissions by 2050. IAG said it had signed $1 billion in SAF investment agreements as of the end of 2023, and has already secured one-third of the SAF required to meet its 2030 goal.
Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo said:
“DHL and IAG Cargo have a longstanding relationship, and it’s great to see our partnership continue to grow as we work together to deliver more sustainable air freight solutions while keeping global trade moving. Partnerships like these will be critical to scaling the use of sustainable aviation fuel.”