DHL Group is tapping a new partner to help push its quest to achieve net-zero emissions across its logistics operations by 2050.
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The logistics giant is teaming with China-based energy technology company Envision to further support its decarbonization initiatives, particularly across aviation.
In this strategic collaboration, Envision will provide sustainable aviation fuel (SAF) for DHL to help the firm move further toward its goal to increase its SAF to 30 percent of total fuel used by 2030.
SAF is a liquid fuel that is claimed to reduce lifecycle greenhouse gas (GHG) emissions dramatically when compared to petroleum-based jet fuel, while still enabling the same flight performance. It can be produced from feedstock including waste oil and fats, green and municipal waste and non-food crops.
“The partnership framework with Envision represents a further step towards global sustainability leadership for DHL Group. By leveraging our unparalleled logistics expertise and unique global network, we are committed to supporting Envision in their international expansion and logistical challenges.” said Tobias Meyer, CEO at DHL Group in a statement. “Together, we will lead the change in integrating green technologies and optimizing supply chains, setting new benchmarks for sustainable innovation and global environmental impact through the energy transition.”
Envision is just one of multiple companies that are partnering with DHL on SAF-related initiatives, with Prada Group entering a deal with the company to use SAF credits.
Already in 2023, the partnership with DHL allowed Prada Group to save approximately 4,500 metric tons of CO2 equivalent, which would correspond to 7 percent of the Group’s total transport associated emissions.
DHL Express signing an agreement with sustainable aviation company World Energy to buy 668 million liters of the fuel alternative last October through SAF certificates.
Under the certificate system, the fuel’s environmental attributes are separated from the fuel itself using a book-and-claim model, with the aim of ensuring that the emission reductions associated with each credit are accurately transferred and verified by a third party.
Last July, DHL Express and law firm Linklaters partnered on the use of SAF to reduce emissions generated by air shipments in Asia and UAE. In he previous month, DHL Global Forwarding and IAG Cargo also partnered on the purchase of SAF.
The International Air Transport Association (IATA) estimates that SAF could contribute roughly 65 percent of the reduction in emissions needed by the aviation industry to reach net-zero CO2 emissions by 2050. But both association and Envision caution this will require a massive increase in production in order to meet demand.
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“The aviation sector is currently trailing targets largely due to high costs associated with green hydrocarbons and their derivatives,” said Lei Zhang, chairman of Envision Group, in a statement. “Envision, through systematic innovation, can reduce cost and revolutionize the production of SAF at scale. The development of this ‘new oil’ will support global efforts towards carbon neutrality.”
Alongside DHL, Flexport joined the SAF bandwagon late last year, teaming with climate action software platform Chooose to enable customers to buy SAF certificates when booking freight.
The DHL-Envision deal goes beyond sustainable fuel. Envision will provide comprehensive green energy transition solutions, including electricity, to support some of DHL’s other renewable energy goals through focused green power procurements.
The agreement leveraging DHL’s network across over 220 countries and territories to support Envision’s goals in entering new markets for renewable energy. As Envision’s preferred logistics partner, DHL will deploy fully integrated logistics solutions to improve efficiency and quality, ensuring seamless global supply chain management, and comprehensive support in navigating regulatory requirements and operational challenges.
Envision and DHL will also explore opportunities for the joint development and construction of a “Net Zero Industrial & Logistic Park” across various industry sectors.
The “Net Zero Industrial Park” is a new class of industrial parks that are fully powered by a comprehensive clean energy solution, and built to integrate the supply chains of several industries, such as electric vehicle and battery manufacturing.
The park concept aims to advance new electric power models and foster green industrial ecosystems, while ultimately expediting the global green transition for customers across industries.
The first park already debuted in Ordos, Mongolia, with Envision expected to expand its global footprint in Europe and the Middle East, with the support of DHL.
Founded in 2007, Envision provides renewable energy system solutions for global enterprises, governments and institutions, with a focus on areas including smart wind turbines, energy storage, and green hydrogen solutions.
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