DHL Express and United Overseas Bank U11 (UOB) have entered a strategic agreement under DHL’s GoGreen Plus service to “co-invest” in sustainable aviation fuel (SAF) for UOB's international parcel deliveries.
Through this programme, UOB foresees an estimated annual emissions reduction of approximately 200 tonnes of carbon dioxide equivalent (tCO2e), according to a July 23 announcement.
Launched in February 2023, DHL says its GoGreen Plus service has helped over 40,000 customers in Asia Pacific cut their carbon emissions using SAF, which can reduce emissions by around 80% compared to traditional jet fuel.
The GoGreen Plus service is one of DHL’s global initiatives to achieve net-zero carbon emissions by 2050. DHL is purchasing up to 800 million litres of SAF from BP and Neste, and up to 668 million litres of SAF from World Energy.
UOB and DHL have been collaborating since 2022 to reduce UOB's carbon footprint of international parcel deliveries. The bank joined the GoGreen Plus service in March this year to begin using SAF.
Ken Lee, CEO of DHL Express Asia Pacific, says: “We are seeing a strong uptake of GoGreen Plus service in the region, citing shippers’ readiness and appetite for sustainable logistics solutions. SAF is currently the best option for reducing carbon emissions in aviation, and we are glad to be taking the lead.”
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In 2022, UOB announced its goal of achieving net-zero by 2050 for its financed emissions. DHL’s GoGreen Plus service allows UOB to reduce their Scope 3 non-financed emissions with SAF.
In addition, UOB will receive monthly updates detailing the carbon reductions of their parcel shipments through a complimentary carbon footprint report and quarterly certification of the emissions reduction by an independent auditor.
“UOB is the first local bank in Singapore to proactively address the emissions arising from our consignments and international shipping activities through carbon insetting, as part of reducing the footprint of our supply chain,” says Marcus Lai, head of corporate real estate services, group finance and corporate services at UOB. “The collaboration with our logistics partner DHL supports the scaling of SAF usage as a better alternative to decarbonise supply chains.”
Shares in UOB closed 9 cents higher, or 0.27% up, at $32.86 on July 23.
