DHL Group and Neste have reached an agreement to collaboratively assess how Neste's renewable solutions, including renewable diesel (referred to as "HVO100") and sustainable aviation fuel, can help DHL achieve its decarbonization goals for both air and road transportation.

The partnership also aims to enhance their efforts in reducing emissions within the logistics sector.

DHL Group aims to achieve net-zero greenhouse gas emission logistics by 2050. Interim targets by 2030 include electrifying two-thirds of last-mile delivery vehicles and increasing the share of more sustainable fuels across all transportation modes to more than 30%, which includes the use of SAF.

Neste will support DHL in reaching these objectives.

To enable DHL Group to achieve its air transportation targets, the parties will develop a commercial model that would gradually lead to the off-take of around 300,000 tons of neat, i.e., unblended SAF per year from Neste to be taken by DHL Group, by 2030 and enable the sale and purchase of additional volumes of SAF.

At the same time, DHL Group and Neste will work together to explore using renewable diesel to support DHL in achieving its decarbonization targets in road transportation.

"The signing of this agreement with Neste is a significant step in our strategy to achieve net-zero-emission logistics by 2050. By closely collaborating with a leading producer of renewable fuels, we can further advance on our interim targets. Together with Neste, we will develop innovative solutions that support our own sustainability goals and eventually also those of our customers," said Yin Zou, EVP Corporate Development DHL Group.

"We are looking forward to further strengthening our existing cooperation with DHL Group through a holistic, joint approach to tackling GHG emissions in transportation. This gives us a chance to support DHL as a frontrunner in its field with our renewable fuels, which provide a solution to reduce GHG emissions on the road as well as in the air," says Carl Nyberg, senior vice president of commercial Renewable Products at Neste.

Neste and DHL Group have collaborated for several years, particularly in delivering sustainable aviation fuel. They also contributed to the development of the International Sustainability & Carbon Certification (ISCC) and tested the ISCC Credit Transfer System.

This system helps airlines, logistics companies, and businesses accurately report their emission reductions from using sustainable aviation fuel to lower their carbon footprint in air travel and freight transport.