Logistics giant DHL and International Airlines Group’s (IAG) cargo handling business IAG Cargo announced today an expanded agreement, with IAG Cargo to use an additional 60 million liters of sustainable aviation fuel on behalf of DHL Express and DHL Global Forwarding to cover 2024 and 2025 emissions.

The companies said that the new deal makes the partnership the largest SAF agreement between an airline and a customer to date, and will result in a reduction of greenhouse gas emissions of approximately 165,000 metric tons of CO2e over the next year and a half.

Scaling the use of sustainable aviation fuels forms a significant part of DHL’s Sustainability Roadmap. Launched in 2021, the roadmap includes a series of decarbonization and environmental sustainability commitments encompassing the introduction of more ambitious climate targets and linking executive compensation to ESG goals. DHL’s targets include using at least 30% of SAF blending for all air transport by 2030.

Sustainable aviation fuel used in the collaboration is derived from sources such as used cooking oil and food waste, and has been proven to achieve around 80% lower lifecycle emissions relative to conventional jet fuel. The SAF is certified by International Sustainability & Carbon Certification (ISCC).

Travis Cobb, EVP Global Network Operations & Aviation at DHL Express, said:

“We strongly believe that collaboration is the foundation of a more sustainable future. Both DHL and IAG Cargo share a strong commitment to carbon footprint reduction. We are pleased that we can now mark another milestone on our journey towards more sustainable air freight.”

IAG is the parent company of airlines including Aer Lingus, British Airways, Iberia, Vueling and LEVEL. The company has set goals to fly with 10% SAF by 2030 and reach net zero by 2050. IAG recently said that it had signed $1 billion in SAF investment agreements as of the end of 2023, and that it has already secured a third of the SAF required to meet its 2030 SAF goal.

David Shepherd, Chief Executive Officer at IAG Cargo, said:

“This partnership with DHL is a testament to our shared commitment to decarbonising aviation. By utilising 60 million litres of Sustainable Aviation Fuel, we are not just reducing our carbon footprint by an estimated 165,000 metric ton of CO2e, we are demonstrating the power of collaboration in driving meaningful change. This reinforces IAG Cargo’s commitment to sustainable air freight solutions and brings us closer to achieving our Group goal of net-zero emissions by 2050.”