Global logistics firm DHL Express has signed an agreement with Malaysian lender CIMB Group Holdings Berhad to welcome the banking group onboard its GoGreen Plus program.
The duo said in a statement on Tuesday that partnership enables CIMB to leverage the use of sustainable aviation fuel (SAF) to mitigate the carbon dioxide equivalent (CO2e)
emissions associated with its international shipments.
Through the partnership, CIMB will deploy the program across Malaysia and Singapore.
According to the statement, CIMB recognizes the importance of aligning business interests with climate practice.
In September 2022, the group announced a net-zero by 2050 goal for Scope 3 emissions, emphasizing the indirect greenhouse gases generated through transportation and distribution activities.
It is noted that DHL’s GoGreen Plus service helps to facilitate a pathway towards cleaner operations and contributes to scaling the wider SAF ecosystem.
SAF is considered the aviation industry’s most promising means of decarbonization.
Made from alternative raw materials such as used cooking oil, waste, and hydrogen, SAF cuts approximately 80 percent of carbon emissions for air transport shipments over its lifecycle compared to conventional jet fuel.
In collaboration with DHL Express, CIMB expects to lower the carbon emissions of its time-definite international air shipments from Malaysia and Singapore by 20 percent via DHL.
An independent auditor, Société Générale de Surveillance, verifies the greenhouse gas emission reductions to be counted against CIMB’s Scope 3 carbon emission footprint.
“Many of our customers look at sustainability as a business imperative today,
“In Asia Pacific alone, more than 12,000 customers have signed up for our GoGreen Plus service and this number continues to grow consistently,” said Ken Lee, Chief Executive Officer DHL Express Asia Pacific.
“As a leading express logistics company, we always connect people and businesses across borders,
“GoGreen Plus serves as a vital avenue for businesses to cut carbon emissions, and we are convinced more will come on board,” he added.
Julian Neo, Managing Director of DHL Express Malaysia and Brunei, said that SAF is widely acknowledged as a truly viable route to decarbonizing the aviation sector.
“There is still significant progress to be made, as SAF makes up only 0.1 percent of aviation fuel consumed today,
“We are impressed with the leadership CIMB has demonstrated in the sustainability space and we are delighted to have CIMB partner us for this important initiative,” he said.
According to him, this motivates the firm to accelerate efforts to promote SAF availability, accessibility, and affordability so that its customers realize their
environmental ambitions.
Gurdip Singh Sidhu, Chief Executive Officer of CIMB Malaysia and CIMB Bank Berhad, said that sustainability is a key focus at CIMB and central to that is the firm’s 2050 net-zero commitments.
According to him, in its roadmap to achieve these targets, the firm has long advocated the need to strategically partner and drive innovative solutions,
“CIMB is pleased to be partnering DHL in their sustainable fuel proposition that will help us mitigate our Scope 3 carbon emissions and in that regard, help us get closer to our 2050 net-zero commitments,
“DHL’s innovative solution in bringing such an option to its key clients is commendable and will accelerate the commercialization of such technology,” he added.
Launched in February 2023, GoGreen Plus is among the DHL Group’s initiatives to achieve net-zero emissions by 2050, which is made possible by three of the most significant SAF agreements with bp, Neste, and World Energy.
The air freight network accounts for around 70 percent of the company’s carbon footprint, so sustainable air transportation solutions are crucial for greener logistics.
DHL offers logistics services ranging from national and international parcel delivery, e-commerce shipping and
fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management.
The firm is part of DHL Group. The group generated revenues of more than Euro 81.8 billion ($88.58 billion) in 2023.
The group aims to achieve net-zero emissions logistics by 2050.
CIMB is one of ASEAN’s leading banking groups and Malaysia’s second largest financial services provider,
by assets.
Listed on Bursa Malaysia via CIMB Group Holdings Berhad, it had a market capitalization of approximately MYR 70.8 billion ($15.03 billion) as at 31 March 2024.
The bank offers consumer banking, commercial banking, wholesale banking, islamic banking, wealth management and digital payment products and services.
Headquartered in Kuala Lumpur, the group is present in eight ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Vietnam, Myanmar and Philippines).
Malaysian lender CIMB sets 2030 climate targets to accelerate net zero by 2050