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DHL, Standard Chartered Partner on SAF
[ April 5, 2024 // Gary G Burrows ]Global express shipper DHL Express has signed a strategic partnership with Standard Chartered, a cross-border bank, for DHL Express’ GoGreen Plus service to help scale the use of sustainable aviation fuel, or SAF.
The two organizations agreed to co-invest in SAF, allowing Standard Chartered to balance CO2 emissions linked to its upstream logistics with high quality verified emission reductions, or VER, carbon credits.
Standard Chartered is among the first banks to globally use the DHL GoGreen Plus service. The bank has committed to net zero in its own operations by 2025 and in its financed emissions by 2050.
“The partnership between Standard Chartered and DHL has been going strong for more than two decades. They were the first bank to adopt our GoGreen service in 2011 and are now working with us to make international express shipping more sustainable,” explains Yung C. Ooi, senior vice president for commercial, Asia Pacific, DHL Express.
“The fact that we are offering the GoGreen Plus service through the use of SAF in our international network lays the foundation for this. We hope this agreement will inspire other companies to transition to low-emission transportation services using sustainable aviation fuel,” Ooi said.
The DHL partnership is an example of how the bank is innovating with partners to make its supply chain more sustainable. Using SAF can help reduce lifecycle emissions of typical aviation fuel by up to 80 percent.
In turn, Standard Chartered expects to see its own related emissions reduced by up to 30 percent in its first year (against a 2019 baseline), and with an expected incremental reduction of 7 percent per year from 2025. The bank estimates that 3,780 tonnes of CO2 will be saved between 2024 and 2030.
As part of GoGreen Plus, DHL Express will provide Standard Chartered a monthly report on the carbon footprint of its shipments, and quarterly certification of the emission reduction achieved by an independent auditor.
“While the digitization of trade documentation is progressing, through this agreement to scale the use of SAF with our logistics partner DHL Express, we will jointly drive down emissions that would otherwise be generated from this essential service,” said Khuresh Faizullabhoy, managing director and COO, trade at Standard Chartered.
Launched in 2023, DHL Express’ GoGreen Plus service allows customers to reduce the CO2 e emissions associated with their air freight with the help of SAF. GoGreen Plus is made possible by three of the most significant SAF contracts with BP, Neste, and World Energy.
AF is made from alternative raw materials with a sustainable energy profile, including used cooking oil, waste and hydrogen. Conventional carbon-intensive aviation fuels or kerosene are derived from mineral oil.
GoGreen Plus is part of DHL Group’s goal to achieve net-zero emissions by 2050. The air freight network accounts for about 90 percent of the company’s carbon footprint, so sustainable air transportation solutions are crucial for greener logistics.
Tags: DHL Express, Standard Chartered