Bonn, Germany – DHL, a global leader in logistics, and IAG Cargo, the cargo handling division of International Airlines Group (IAG), have renewed their SAF supply partnership in a strategic move that not only reinforces their collective commitment to decarbonizing the air freight industry but also marks the largest SAF agreement ever made between an airline and a logistics company. This deal, covering 2024 and 2025, will see IAG Cargo use an additional 60 million liters of SAF on behalf of DHL, resulting in a reduction of approximately 165,000 metric tons of CO2e over the next 1.5 years. The scope of the agreement is significant—it nearly equals all of IAG Cargo’s total SAF use in 2023, which was 67 million liters.
“SAF in combination with our ‘book and claim’ approach is currently the most efficient and convenient method to reduce GHG emissions in air freight. ” said Max Sauberschwarz, Global Head of Air Freight at DHL Global Forwarding.
Business Implications and Strategic Importance
This SAF agreement highlights the growing importance of sustainable fuel solutions in logistics and aviation. As the largest SAF deal between an airline and a logistics provider, it underscores how SAF is becoming a critical element in the broader decarbonization strategies of major corporations. For DHL, the deal directly aligns with its GoGreen Plus service, a key part of its strategy to offer more sustainable logistics solutions. The service enables DHL’s clients to decarbonize their supply chains by integrating sustainable fuels, making the logistics giant an essential partner for businesses looking to meet their own environmental commitments.
With regulatory pressures mounting, particularly through the EU’s ReFuelEU initiative, the ability to source large volumes of SAF allows companies like DHL to stay ahead of compliance deadlines while improving long-term cost efficiency. The SAF utilized in this partnership is certified by the International Sustainability & Carbon Certification (ISCC) and is derived from sustainable feedstocks such as used cooking oil and food waste. This type of SAF achieves up to 80% lower lifecycle emissions compared to conventional jet fuel, offering a significant reduction in greenhouse gas emissions.
For IAG Cargo, this partnership not only solidifies its role as a leader in sustainable air freight but also addresses growing demand from corporate clients for responsible, transparent logistics solutions. As part of its broader sustainability strategy, IAG Cargo has committed to net-zero emissions by 2050, and this SAF deal is a crucial step toward meeting those goals.
Supporting Global Trends and Market Demands
The timing of the deal comes as both the aviation and logistics sectors face increasing regulatory requirements and market pressures to reduce carbon emissions. The European Union’s SAF mandates, driven by the ReFuelEU aviation regulations, are setting strict targets for the adoption of SAF, and companies are moving quickly to ensure compliance. For DHL and IAG Cargo, securing this large SAF supply ensures they remain competitive in an evolving market where sustainable solutions are becoming the norm.
In addition to regulatory advantages, this deal allows DHL and IAG Cargo to hedge against rising carbon prices and fuel cost volatility. By committing to a large SAF supply, both companies can better manage fuel costs while meeting their sustainability KPIs.
Collaboration as a Competitive Advantage
The partnership between DHL and IAG Cargo underscores the critical role of collaboration in driving meaningful progress in the decarbonization of air freight. Travis Cobb, EVP Global Network Operations & Aviation at DHL Express, emphasized the value of collective action in achieving sustainability goals: “Both DHL and IAG Cargo share a strong commitment to carbon footprint reduction. This partnership allows us to advance our sustainability goals while enabling our customers to make greener logistics decisions.”
David Shepherd, CEO of IAG Cargo, echoed this sentiment, stating, “This deal reflects the power of collaboration in driving meaningful change and brings us closer to achieving our Group goal of net-zero emissions by 2050.”
By combining their efforts, DHL and IAG Cargo are setting a new standard in sustainable logistics, and their collaboration could serve as a model for other companies in the aviation and logistics industries.
Long-Term Business Impact
For DHL, this expanded SAF commitment strengthens its position as a leader in sustainable logistics, a key differentiator in a crowded marketplace where environmental responsibility is becoming a non-negotiable for clients. The ability to offer SAF-powered solutions helps DHL meet its clients’ growing demand for more sustainable supply chain options, while also positioning the company to benefit from future regulatory incentives and avoid potential penalties associated with carbon emissions.
IAG Cargo, meanwhile, continues to solidify its role as a pioneering player in the SAF space. This deal not only reduces its carbon footprint but also enhances its reputation among environmentally conscious clients, providing a competitive edge in securing long-term business partnerships.
Conclusion
The renewed partnership between DHL and IAG Cargo marks a pivotal moment in the air freight industry, as the largest SAF commitment ever made between an airline and a logistics company. By securing a 60 million liter SAF supply—nearly as much as IAG Cargo’s total SAF usage in 2023—both companies are leading the charge in the global effort to decarbonize aviation. As regulatory pressures and market demands for sustainable solutions continue to grow, this partnership sets a new benchmark for collaboration and innovation in the sector, positioning DHL and IAG Cargo as frontrunners in the transition to a greener future.
