DHL EXPRESS AND ASIA COMMERCIAL JOINT STOCK BANK JOIN FORCES TO CUT CARBON EMISSIONS USING SUSTAINABLE AVIATION FUEL

• ACB is the first bank in Vietnam to sign up for DHL’s GoGreen Plus contract to reduce 100% carbon emissions for their international express delivery shipments
• This partnership signifies both parties’ clear commitment to combat climate change within their value chain

DHL Express, the world’s leading international express service provider, has onboarded Asia Commercial Joint Stock Bank (ACB) on its GoGreen Plus service to reduce carbon emissions for its time-definite international (TDI) shipments through the use of sustainable aviation fuel (SAF). By investing in GoGreen Plus, it is estimated that ACB will be able to reduce 14 tons¹ worth of total CO2 emissions within a 12-month period. 

The whole process is verified annually by an independent third-party agency, Société Générale de Surveillance (SGS). In addition, a complementary Carbon Footprint report will be updated monthly, detailing ACB’s overall emissions with DHL Express. 

Bernardo Bautista, General Director and Country Manager, DHL Express Vietnam commented: “We believe that corporate social responsibility and business success always go hand in hand. Globally, sustainability and environmental protection are important for all of us, including our customers. With SAF as our key lever to effectively reduce carbon emissions, DHL Express is proud to be the first global express courier to enable our customers to do so. Our partnership with ACB will enable their customers to also make a direct contribution to climate protection.” 

“ACB is providing international payment services with market-leading quality. We always want customers to enjoy more benefits when choosing ACB. With the GoGreen Plus partnership, ACB hopes to introduce a service that not only helps to add value for customers but also promotes the sustainable development spirit through the cooperation with DHL as well as our customers", emphasized Ngo Tan Long, Deputy General Director of ACB. 

ACB is the pioneering bank to integrate ESG-oriented sustainable development goals into its business strategy for many years. All of the bank's activities are aimed at striking a reasonable balance between short-term results and long-term sustainable development, as well as between revenue growth and value creation for stakeholders, thereby achieving comprehensive growth across all three E, S and G criteria. In 2022, ACB recorded that 93% of its employees were willing to implement ESG initiatives along with the bank, 215 tons of paper were saved and recycled through process digitalization, 32 tons of plastic were replaced with environmentally friendly materials, and 181 tons of CO2 were neutralized using recycled carpet materials.

Launched this year by DHL Express, GoGreen Plus leverages carbon insetting² and Sustainable Aviation Fuel (SAF) to enable customers to reduce their Scope 3 emissions³. Unlike offsetting initiatives, GoGreen Plus (insetting) reduces emissions within the logistics sector. It can be used for DHL customers’ own voluntary emission reporting and follows the Science Based Target Initiative (SBTi) philosophy. Instead of investing in external carbon-reduction projects like tree planting, insetting calls for the organization to commit to sustainable practices by directly reducing or preventing greenhouse gas emissions tied to its activities.  

SAF is generated from alternative feedstock with a superior sustainable energy profile, including used cooking oil, corn, waste, hydrogen, or CO2 synthesis. This contrasts with traditional, carbon-intensive jet fuels - or kerosene - that are derived from petroleum. SAF is currently the only scalable solution for the next years to come, given that it is the only option for long-range flights.

DHL Group is committed to achieving net-zero emissions by 2050 and is investing EUR 7 billion in carbon emissions reduction initiatives until 2030. With approximately 90% of its carbon footprint derived from the air network, viable and sustainable air transport solutions are important for creating cleaner and greener logistics operations. This includes two of the largest ever deals with bp and Neste, who will supply DHL with more than 800 million liters of sustainable aviation fuel until 2026. This contributes to the interim target of using 30 percent SAF for all air transport by 2030. Equally, DHL Express has also partnered with Eviation, who will deliver up to 12 electric cargo planes from 2027 onwards.

Since the 2021 United Nations Climate Change Conference (COP26) where Vietnam committed to reaching net-zero emissions by 2050, several measures have been taken by the Government - including Decree 06 which outlines Greenhouse gas (GHG) emissions reduction targets, as well as the specific sectors and enterprises required to complete a GHG inventory. From an international trade perspective, major import markets were imposing high taxes on products with large "carbon footprint" and many developed economies had set stricter environmental regulations for imports. For example, in textile & garment sector, green commitments will pave the way for the export of enterprises’ products and facilitate them to enjoy tariff incentives. Not only that, enterprises that meet Environmental, Social and Governance (ESG) standards also have more orders and better orders.

In addition, the European Union (EU), one of the largest export destinations for Vietnamese enterprises, also plans to implement the world’s first carbon border adjustment mechanism (CBAM) from October 2023. During the transition period, importers need to report the embedded carbon in their imported goods and from 2026, additional taxes will be levied on imported goods to bridge the gap between the EU’s carbon price and the price in exporting countries.

Carbon footprint reduction is no longer an option for Vietnamese enterprises, but an essential decision to protect the environment and to maintain their competitiveness. Particularly in view of a company’s value chain - including downstream transportation and distribution, sustainable logistics plays an indispensable role. With GoGreen Plus, local exporting and importing enterprises can leverage the Sustainable Aviation Fuel to support greener shipping operations.

1. Estimate based on ACB’s historic shipping volumes with DHL Express, transportation lanes and 100% carbon emissions reduction selected.

2. For further information on carbon insetting and offsetting, please visit https://www.weforum.org/agenda/2022/03/carbon-insetting-vs-offsetting-an-explainer/

3. To learn more about Scope 1, 2 and 3 emissions, please visit https://www.weforum.org/agenda/2022/09/scope-emissions-climate-greenhouse-business/