Media release: Australian Corporates double down on Sustainable Aviation Fuel

Qantas News Room

Major banks, a resource company and management consultancies are among the new businesses turning to sustainable aviation fuel to help decarbonise their business travel and meet emissions reductions targets.

Eleven businesses are now paying a premium to address their air travel emissions by contributing to the cost of SAF, rather than traditional carbon offsets, through Qantas’s corporate sustainable aviation program.

Accenture, Fortescue and McKinsey & Company have joined as Partners, contributing to address 1000 tonnes of carbon emissions; Commonwealth Bank, ING Australia, Deloitte, IMC and Raytheon Australia have joined as Members, contributing to between 400-600 tonnes of carbon emissions.

The addition of these members and partners means that the SAF Coalition program has doubled in its first year since launching in 2023 with five inaugural partners including Australia Post, BCG and Woodside.

Qantas Group Chief Sustainability Officer Andrew Parker said sustainable aviation fuel is critical to decarbonising aviation and Australia meeting its emissions reductions targets.

“The growing demand from corporate Australia for SAF is a clear vote of confidence in the domestic production of biofuels,” said Mr Parker.

“Our corporate program is one of the many levers we’re exploring to manage the higher cost of SAF while we continue to advocate for and invest in local production.

“We’re also working with industry partners to invest in local technologies and projects that will help the sector reach its net zero targets, drive economic growth, create thousands of green jobs and secure Australia’s domestic fuel security.”

The Qantas SAF Coalition program allows corporates under a “book and claim” methodology, to support the scaling of SAF and capture the environmental benefits, even if the fuel does not flow directly in the planes they fly on. It is aligned with Science-Based Targets Initiatives guidance, which provides principles that businesses can follow to meet their business travel and scope 3 emissions targets with SAF usage.

The premium contributes to the incremental cost of the 10 million litres of SAF that Qantas purchases for flights out of London. Qantas is the only Australian airline to purchase SAF on an ongoing basis for regular scheduled services and recently signed a new deal with bp to continue its acquisition of SAF out of London for the third year in a row.

Sustainable fuels are the most significant tool airlines currently have to reduce their emissions, particularly given they can be used in today’s engines and fuel delivery infrastructure with no modifications. Aviation biofuels typically deliver around an 80 per cent reduction of life-cycle carbon emissions.

THE QANTAS GROUP’S COMMITMENT TO AUSTRALIAN SAF INDUSTRY:

• The Qantas Group established a $400 million climate fund to provide direct investments in sustainability projects and technologies, particularly the establishment of a domestic SAF industry.
• In addition, Qantas announced in August that as part of recent aircraft deals with Boeing and Airbus it will secure access to up to 500 million litres of Sustainable Aviation Fuel (SAF) per annum that would start to flow from 2028. This has the potential to meet most of the Group’s interim SAF target for 2030.
• Since 2022, Qantas has purchased SAF out of London and has contracts in place to start using it in California.

COMMENTS FROM COALITION PARTNERS

Comments from Rod Barnes, Executive General Manager Network Operations, Australia Post

“As a Foundation Partner of the Sustainable Aviation Fuel Coalition, Australia Post is committed to being at the forefront, supporting developments in sustainable aviation. We are Qantas’ largest domestic freight partner, and our commitment to reducing the carbon impact of aviation fuel provides a significant opportunity to make a tangible impact on aviation freight emissions. By investing in newer, more efficient freighter aircraft, together with our contribution to Sustainable Aviation Fuel development, we’re not only reducing our emissions, but helping meet the carbon related ambitions of our customers.”

Comments from Glenn Heppell, ANZ Sustainability Lead & Senior Managing Director, Accenture

“Establishing a commercially viable SAF industry in Australia is a critical emissions reduction lever,” said Glenn Heppell, Senior Managing Director and ANZ Sustainability Lead, Accenture. “It drives towards energy independence for aviation and asset-intensive industries.  Accelerating our transition to a net-zero economy will take collective action, and this is reflected in Accenture’s support for the SAF Coalition.”

Comments from Grant McCabe, Managing Partner, BCG

“We know Sustainable Aviation Fuel is a game-changer in the quest to achieve net zero within the aviation sector, and it’s exciting for BCG to be at the forefront of this alongside Qantas and our Coalition partners.

“Although relatively new, high-integrity SAF is the most viable aviation decarbonisation tool currently available. BCG has been actively contributing to the development and adoption of SAF through our work with Qantas and other partnerships. These partnerships, and our commitment through the First Mover Coalition, strengthen the demand signal for SAF – a critical requirement for scaling production.

“At BCG, we plan to reduce our business travel emissions by almost half by 2025 and have committed to reach net zero climate impact by 2030 and then to become climate positive, and SAF is key to this journey. Beyond our own operations, we have a long-standing commitment to helping industries access the most pioneering climate technologies so they can achieve net zero, including SAF.

“This collective commitment from the SAF Coalition reinforces the importance of collaborative action in driving meaningful change when it comes to sustainability.”

Comments from Freya Paterson, Sustainability and Social Impact Lead, ING Australia

“Sustainable fuels are the most significant tool airlines currently have to reduce their emissions and ING is proud to partner with Qantas and other leading Australian businesses to create more transparency and larger-scale solutions to transition the aviation sector.”