DHL Deepens SAF Strategy with IAG Cargo to Cut More Than 1 Million Tonnes of Supply Chain Emissions

DHL Group is expanding its sustainable aviation fuel (SAF) sourcing strategy through a new long-term agreement with IAG Cargo, as the logistics provider looks to secure lower-emissions air freight capacity and strengthen its sustainable transport offering for customers.

Reducing lifecycle greenhouse gas emissions

The company has signed a new five-year agreement through 2030 with IAG Cargo, alongside a previous 2025 renewal, that will enable approximately 240 million liters of SAF to be uplifted at London Heathrow Airport for DHL Express cargo transported on British Airways flights.

The agreement is expected to reduce lifecycle greenhouse gas emissions by approximately 640,000 tonnes of CO₂e, with the potential for total reductions to exceed 1 million tonnes of CO₂e when combined with a broader framework agreement between DHL Global Forwarding and IAG Cargo.

The expanded partnership reflects growing pressure on logistics providers to decarbonize freight networks while maintaining reliable international transport capacity.

Showing what is possible with SAF

The SAF volumes will provide the company with Scope 3 emissions reductions from approximately 40 million litres of neat SAF per year, covering nearly all of the fuel currently attributed to transporting DHL Express cargo within IAG Cargo’s network.

The fuel used under the agreement is ISCC-certified, derived from feedstocks including used cooking oil, and achieves approximately 90% lifecycle greenhouse gas emissions reductions compared with conventional fossil jet fuel.

“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” said Travis Cobb, EVP Global Network Operations & Aviation at DHL Express. “It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute towards concrete lifecycle greenhouse gas emissions reductions.”

Cross-division sustainability strategy

The deal forms part of a broader cross-divisional strategy to secure diversified access to sustainable fuels and support increasing customer demand for lower-emissions logistics services.

The additional framework agreement between DHL Global Forwarding and IAG Cargo is intended to strengthen that strategy by supporting long-term fuel availability across the wider DHL Group and helping scale emissions-reduction services across business units.

For air cargo operators and shippers, SAF remains one of the most immediate pathways to cutting aviation emissions, although supply constraints and cost remain major barriers. DHL noted that SAF is currently three to four times more expensive than fossil jet fuel, while still accounting for only a small share of total airline fuel consumption.

Essential partnerships for net-zero logistics

Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said partnerships will be essential to accelerating broader adoption.

“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 we keep global trade moving,” he said. “Partnerships like these will be critical to scaling the use of sustainable aviation fuel.”

The agreements support DHL’s wider target of increasing the share of sustainable aviation fuel in its air transport operations to 30% by 2030, part of the company’s long-term goal to achieve net-zero emissions logistics by 2050.