DHL, the German logistics firm, announced one of air freight’s largest ever supply deals for sustainable aviation fuel (SAF) as it seeks to give customers the ability to claim cleaner supply chain emissions.
DHL will purchase 33 million litres of SAF from Dutch cargo airline Martinair. The deal will result in over 80,000 tons of carbon emissions savings.
Deutsche Post DHL Group aims to spend €7 billion on green technologies by 2030 and eliminate logistics-related emissions by 2050. SAF is a key technology in the drive to decarbonise the aerospace industry.
“With our Sustainability Roadmap, we have set ourselves ambitious goals on our journey towards zero emissions. Sustainable fuels are a fundamental part of our efforts. That is why we have committed to covering at least 30 percent of air freight and ocean freight fuel requirements with sustainable fuels by 2030. Our partnership with AFKLMP will help us achieve that goal. At the same time, it serves as another example of the success of our ‘book & claim’ system, which ensures that reductions in Scope 3 emissions are attributed to our customers. We must all work together to accelerate the transition to a low-carbon – and ultimately zero-carbon – emissions transport sector. After all, we only have one planet,” said Tim Scharwath, CEO of DHL Global Forwarding, Freight.
DHL gives customers the option of purchasing sustainable shipping through a “book and claim” system. This system credits the reduction in scope 3 emissions (emissions created as a result of a company’s supply chain, but not generated by the company in question) to the customer’s account. This will help large corporate clients to report their emissions more accurately. The system enables companies to buy SAF at the point of use without having to source it themselves.
The high cost of SAF means that airlines and freighters cannot economically substitute it for regular aviation fuel. However, the two fuels can be blended, reducing the total emissions of a flight (albeit not bringing them down to zero).
Martinair, which is owned by Air France-KLM, runs a similar scheme allowing customers to pay extra for their delivery to be shipped using a share of SAF. This reduces the carbon footprint of their delivery. On its website, the company explains that “we can only successfully develop a market for SAF with the support of all industry stakeholders.”
The theory behind schemes like those run by DHL and Martinair, which transfer the cost of low-emission shipping onto the customers on an opt-in basis, is that the increased demand for sustainable fuel will help to support producers and make sustainable fuels cheaper in the long term.
Another significant implication of this deal is the expanded partnership between DHL and Martinair. Peers cooperating will be essential to cutting environmental footprints in carbon-intensive industries, particularly when it comes to implementing new technologies which remain more costly.
“The Air France KLM Martinair Cargo teams are strongly committed and feel responsible for creating a sustainable future for our industry,” said Adriaan den Heijer, Executive Vice President of Air France KLM Cargo. “This deal is a great opportunity to accelerate our joint sustainability efforts. Sustainable aviation fuel (SAF) has a lot of potential to reduce CO2 emissions and we are delighted to collaborate with our strong, long-term partner DHL Global Forwarding on this journey to greener logistics and transportation in the coming years.”
Sustainable aviation fuels are an important part of DHL’s new Sustainability Roadmap. Launched last year, the roadmap includes a host of sustainability commitments, including linking the compensation executives receive to their ability to hit ESG goals. DHL’s targets include meeting at least 30% of fuel requirements in aviation with sustainable fuels for long-haul flights. Since launching the roadmap, DHL has announced the purchase of the world’s first all-electric cargo planes, begun offering low carbon ocean shipping, and introduced carbon-neutral US domestic delivery options.
