Deutsche Bank, Lufthansa put money into SAF to chop enterprise journey emissions

Dive Brief:

• Deutsche Bank is backing the deployment of round 1,600 metric tons of sustainable aviation fuel in collaboration with Lufthansa Group, the businesses introduced Thursday.
• The SAF from the deal is estimated to allow emissions reductions price 5,500 metric tons of carbon dioxide in comparison with typical jet gasoline or fossil-derived kerosene, in accordance with a July 2 launch.
• The German lender mentioned its funding with the German aviation and airline firm aligns with the financial institution’s aim to scale back the carbon footprint related to enterprise journey. Deutsche Bank additionally has a goal of attaining net-zero emissions throughout its scope 1, 2 and three classes by 2050.

Dive Insight:

Deutsche Bank and Lufthansa mentioned the averted carbon emissions are roughly equal to the carbon footprint of 520 flights taken between Frankfurt and London.

SAF has the potential to reduce lifecycle carbon emissions by up to 80% in comparison with typical fossil kerosene, in accordance with the Air Transport Action Group. However, the International Air Transport Association discovered that SAF use made up just 0.6% of global jet fuel use in 2025 and is predicted to offer solely 0.8% of jet gasoline consumption this yr. Although SAF manufacturing doubled final yr, its development is predicted to gradual this yr, in accordance with IATA. 

The deal between the 2 firms can also be in step with Deutsche Bank’s broader sustainability technique. Last fall, the financial institution launched its newest transition plan and reaffirmed its dedication to reaching net-zero and decarbonizing the economic system whereas some world banking friends sought to recalibrate their public messaging round sustainability within the wake of elevated political scrutiny.

“Sustainable Aviation Fuel is an important instrument for Deutsche Bank in our efforts to nearly halve our CO₂ emissions along our supply chain by 2030 compared with 2019,” Deutsche Bank Chief Sustainability Officer Jörg Eigendorf mentioned within the Thursday launch. 

“It can also be essential for us to ship a sign: provided that there’s dependable demand will SAF producers put money into manufacturing and make various fuels extra aggressive. This is a key a part of our general strategy: we wish to cut back CO₂ emissions from our enterprise journey and offset the remaining emissions the place possible,” Eigendorf added.

Aside from sustaining its net-zero targets, Deutsche Bank additionally wrote in its transition plan it had decreased its scope 1 emissions by 66% and market-based scope 2 emissions by 84% by the top of 2024, in comparison with a 2019 baseline. The financial institution additionally decreased its scope 3 emissions by 45% throughout the similar timeframe.

Additionally, the financial institution reiterated its dedication to hit sectoral decarbonization targets for the eight most carbon-intensive sectors in its company mortgage portfolio in 2030 and 2050. These sectors embody oil and gasoline, energy era, automotives, metal, coal mining, cement, delivery and business aviation.