IAG Cargo partners with Kuehne+Nagel to advance sustainable aviation fuel

IAG Cargo, the cargo division of International Airlines Group (IAG), will reduce cargo customers’ supply chain Scope 3 emissions by partnering with Kuehne+Nagel, who will part-fund IAG’s purchase of six million litres of Sustainable Aviation Fuel (SAF) in 2023. The SAF, which will be certified by ISCC (International Sustainability & Carbon Certification) and produced from used cooking oil and food waste, will have at least 80% lower lifecycle emissions than conventional jet fuel and will reduce over 15,000 tonnes of CO₂ on a lifecycle basis.

IAG was the first European airline group to make a commitment that 10% of its fuel needs would be fulfilled by SAF by 2030, and this purchase supports IAG’s acceleration towards this goal. IAG has committed $865m in future SAF investments and purchases to date, with agreements in place with a number of suppliers in the UK, US and Spain.

David Shepherd, Chief Executive Officer at IAG Cargo said:“We are delighted to be partnering with Kuehne+Nagel once again to address Scope 3 CO₂ emissions for their supply chain. 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 decarbonise.”

IAG Cargo first partnered with Kuehne+Nagel in 2021 to power a charter chain of 16 flights from Stuttgart to Atlanta, and this latest deal builds on the long-standing partnership between the two companies.

About Scope 3 emissions

*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 decarbonisation 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.