IAG Cargo continues partnership with Kuehne+Nagel to advance sustainable aviation fuel

A Kuehne+Nagel warehouse (Photo: IAG Cargo)

IAG Cargo will reduce cargo customers’ supply-chain scope 3 emissions by partnering with Kuehne+Nagel, which will partly fund IAG's purchase of 6 million liters (nearly 1.6 million gallons) of sustainable aviation fuel (SAF) in 2023.

The SAF, which will be certified by the International Sustainability and Carbon Certification system and produced from used cooking oil and food waste, will have at least 80 percent lower lifecycle emissions than conventional jet fuel.

The SAF use will reduce over 15,000 metric tons of CO2 on a lifecycle basis.

IAG was the first European airline group to make a commitment that 10 percent of its fuel needs would be fulfilled by SAF by 2030.

This purchase supports IAG’s acceleration towards this goal.

IAG has committed $865 million in future SAF investments and purchases to date, with agreements in place with a number of suppliers in the U.K., U.S. and Spain.

“We are delighted to be partnering with Kuehne+Nagel once again to address scope 3 CO2 emissions for their supply chain,” said David Shepherd, CEO of IAG Cargo. “We are committed to reducing our environmental impact and contributing to the wider sustainability goals of the aviation industry. This purchase is a key step in achieving these objectives and is a great example of how IAG can help its customers decarbonize.”

IAG Cargo first partnered with Kuehne+Nagel in 2021 to power a charter chain of 16 flights from Stuttgart to Atlanta.

This latest deal builds on the longstanding partnership between Kuehne+Nagel and IAG Cargo.

“To achieve genuine decarbonization in our industry, sustainable aviation fuel is currently the most effective solution, and we are dedicated to increasing its supply as part of our ambitious climate targets,” said Yngve Ruud, a member of the management board of Kuehne+Nagel responsible for air logistics. “Working closely with our suppliers and promoting the deployment of these fuels with reliable partners such as IAG Cargo is crucial to accomplishing our goals and enabling our like-minded customers to transport their products in a more sustainable manner.”

Scope 3 encompasses emissions that are not produced by the company itself, but by those that it is indirectly responsible for, up and down its value chain.

As businesses advance towards a carbon-neutral future, they are increasingly partnering across their value chain to achieve further emissions reductions.

SAF is the single largest decarbonization lever for airlines, but SAF has a significantly higher price and lower availability than conventional jet fuel.

By partnering with its corporate customers, IAG airlines are able to purchase more SAF and reduce their scope 1 (direct) greenhouse-gas emissions.

Corporate customers also benefit by lowering their scope 3 (supply chain) greenhouse-gas emissions from flying.

IAG Cargo is the single business created following the merger of British Airways World Cargo and Iberia Cargo in April 2011.

Following the integration of additional airlines into the business, including Aer Lingus, Vueling and bmi, IAG Cargo now covers a global network.

With over 79,000 employees at almost 1,300 sites in close to 100 countries, the Kuehne+Nagel Group is one of the world’s leading logistics providers.

It operates in sea, air, road and contract logistics, with a focus on integrated-logistics solutions.