DHL and IAG Cargo Deepen Collaboration with Major Multi‑year SAF Agreements

Why It Matters

The agreement gives DHL a reliable, large‑scale SAF supply, accelerating its carbon‑neutral logistics roadmap and setting a benchmark for the air‑freight industry’s transition to low‑carbon operations.

Key Takeaways

• 240 million liters of SAF secured for DHL Express through 2030
• Lifecycle emissions cut by 640,000 tonnes CO₂e from DHL Express cargo
• Potential total reductions exceed 1 million tonnes CO₂e including DGF agreement
• SAF sourced from used cooking oil achieves ~90% lower lifecycle emissions

Pulse Analysis

Sustainable aviation fuel (SAF) has moved from niche projects to a core component of airline and logistics strategies, driven by tightening carbon regulations and corporate climate pledges. In this environment, DHL Group and IAG Cargo have deepened their partnership with a new five‑year agreement that locks in roughly 240 million liters of SAF at London Heathrow. The deal builds on a 2025 renewal and ensures a steady supply of certified ISCC fuel derived mainly from used cooking oil, positioning both companies as early adopters of large‑scale SAF procurement.

The agreement translates into a lifecycle greenhouse‑gas reduction of about 640,000 tonnes of CO₂e for DHL Express cargo, covering nearly the entire fuel bill for its shipments on British Airways flights. When combined with a parallel framework for DHL Global Forwarding, total avoided emissions could top one million tonnes, helping DHL meet its ambition to source 30 % of aviation fuel from sustainable sources by 2030. The cross‑divisional approach not only diversifies DHL’s fuel portfolio but also offers customers a verifiable, low‑carbon logistics option that can be integrated into their own ESG reporting.

Beyond the immediate carbon savings, the partnership signals a maturing SAF market where airlines and shippers are locking in long‑term supply contracts to de‑risk price volatility. Predictable demand from logistics giants like DHL encourages producers to scale up feedstock collection and processing, potentially driving down costs for the broader industry. As more customers require measurable emissions reductions, such multi‑year SAF deals become a competitive differentiator, enabling carriers to offer greener services while supporting global trade continuity. The collaboration thus serves as a blueprint for future cross‑sector alliances aimed at decarbonising air freight.