DHL And Neste Strengthen Partnership For Sustainable Fuels

DHL and Neste expand long-term strategic partnership to accelerate adoption of renewable fuels, aiming for significant reduction in carbon emissions in logistics and supporting DHL ambitious sustainability goals. Under the agreement, DHL has committed to sourcing up to 300,000 tons of Sustainable Aviation Fuel annually, while also exploring the use of renewable diesel for road transport, by 2030. This partnership is an important step for DHL on its path to achieving net-zero emissions by 2050.

Neste is a global leader in renewable fuels and has been a key partner for DHL in its efforts to decarbonize transportation. The expanded agreement will enable DHL to gradually ramp up its procurement of SAF, a critical solution for reducing emissions in air transport. SAF, which can reduce greenhouse gas emissions by up to 80% compared to conventional jet fuel, is seen as a vital component in the aviation industry’s transition toward sustainability. By 2030, DHL aims to use sustainable fuels for more than 30% of its transport operations, a significant milestone in its decarbonization roadmap.

The partnership extends beyond air transportation, as DHL and Neste will also collaborate on the adoption of renewable diesel for road logistics. Renewable diesel, made from renewable raw materials such as waste fats and oils, can significantly reduce emissions in ground transport. By exploring the expansion of renewable diesel usage, the companies aim to decarbonize DHL’s extensive road fleet and further advance the transition to green logistics.

Yin Zou, executive vice president, corporate development at DHL Group, pressed home that this strategic partnership is one of the key elements in achieving the company's sustainability goals. "The signing of this agreement with Neste is a significant step in our strategy to achieve net-zero-emission logistics by 2050. By working closely with a leading producer of renewable fuels, we can move even closer to our intermediate targets," he said. Carl Nyberg, Senior Vice President of Commercial Renewable Products at Neste, added that the holistic approach both companies are taking towards tackling greenhouse gas emissions in transportation is what the two companies look forward to. "We are looking forward to further strengthening our cooperation with DHL Group through a holistic approach to tackling GHG emissions in transportation," he said.

This renewed collaboration is a continuation of the efforts that DHL and Neste have made in the past, which already included deliveries of SAF and support for the ISCC initiative. The partnership strengthens DHL's position as a leader in green logistics, offering credible solutions for corporations and airlines to track reductions in emissions. DHL's leadership in sustainability includes interim goals such as electrifying two-thirds of its last-mile fleet by 2030 and increasing the adoption of sustainable fuels.

The wider implications of the partnership impact the logistics industry, as this partnership shifts the benchmark for emissions reduction and stimulates the adoption of renewable fuels across the sector. Given that corporations globally are under increasing pressure to reduce their carbon footprint, collaborating on ventures like this is a model for other companies looking for ways to decarbonize their operations, as the case of DHL demonstrates.

Such long-term contracts are also very symbolic of how growingly significant the SAFs and renewable diesels are for global transition towards the low-carbon economy. While industries have started looking out for scalable emission cuts, the development of renewable fuels is appearing to be critical to the war on climate change. The company of Neste specializing in producing renewable fuel combined with DHL's large international network has an all the prospects for a greener future ahead.

Going forward, the companies will work to develop a commercial model that will ensure the safe supply of SAF and increase the adoption of renewable diesel for ground logistics. This is not only in line with DHL's sustainability goals but also contributes to the industry's overall push toward greener logistics solutions. The partnership is expected to open the door to broader adoption of renewable fuels and set new standards for emissions reduction in logistics.

By leveraging Neste's renewable solutions and DHL's global reach, the collaboration stands as a powerful example of how strategic partnerships can drive meaningful environmental progress. Initiatives like this demonstrate that the logistics industry can be a leader in sustainability in the face of urgent climate challenges, inspiring other sectors to follow suit.