• Air cargo is shifting to mandatory sustainability, with SAF, emissions reporting, and operational efficiency driving decarbonisation.
• Digital tools, AI, and data systems are key for tracking, reporting, and optimising emissions across the supply chain.
• Collaboration, benchmarking, and sustainability-linked finance are increasingly shaping investment, strategy, and industry-wide alignment.

Air cargo operators, forwarders, and supply chain partners are entering a more regulated sustainability environment, driven by new disclosure frameworks, emissions reporting rules, and industry-wide decarbonisation targets. Regulatory change is moving sustainability beyond voluntary commitments, with mandatory Scope 3 emissions reporting due to expand significantly under Corporate Sustainability Reporting (CSR) rules by 2027. At the same time, governments, financiers, and customers are applying pressure for measurable progress toward the sector’s goal of net zero by 2050, increasing the focus on Sustainable Aviation Fuel (SAF), operational efficiency, and data transparency.

Sustainability performance is becoming integrated into commercial decision-making. “Sustainability is becoming a factor of doing business,” said Glyn Hughes, Director General of The International Air Cargo Association (Tiaca).

“Regulators, financiers, customers, and employees are all looking for evidence that organisations understand and can demonstrate their environmental and social impact.”

Chris McDermott, Chief Executive at CHAMP, said sustainability reporting is influencing how companies evaluate technology and capital investment. “We are seeing more companies appoint senior roles dedicated to sustainability,” he said. “This is now tied to strategy, not only reporting.”

SAF pathways and the Net Zero commitment

SAF is expected to deliver the largest share of the air transport sector’s decarbonisation contribution over the next three decades. The International Civil Aviation Organization’s (ICAO) Long-Term Aspirational Goal and regional policies, including the European Union’s ReFuelEU Aviation regulation, position SAF as the primary route to reducing aviation emissions while maintaining global freight capacity. ReFuelEU requires SAF blending to rise from minimal use today to 70 percent by 2050, representing a structural shift in how airlines procure and manage fuel.

However, the current availability of SAF remains limited. Production capacity is constrained, and costs remain between three and five times higher than conventional aviation fuel. Feedstock supply, certification processes, and regional policy mismatches further restrict scalability. “SAF currently costs three to five times more than conventional jet fuel, and expanding production requires significant capital investment,” said Arnaud Brolly, Founder and Chief Executive of Impact, which operates a marketplace for SAF certificates.

Forwarders and shippers are increasingly seeking SAF-based services to meet their own emissions reduction commitments. Leading logistics operators have introduced programmes allowing customers to purchase SAF-linked emission reductions for individual shipments. Several airlines have also expanded SAF purchase options at booking level. This is creating new commercial models in which both airlines and forwarders act as intermediaries between SAF producers and cargo customers.

Certification has become essential to prevent double counting and ensure emissions claims are auditable. SAF certificates decouple the environmental attribute of the fuel from its physical use, allowing airlines to claim Scope 1 reductions and shippers to claim Scope 3 reductions using the same verified emission savings within established accounting rules. CHAMP, for example, has supported customer reporting needs through data-backed documentation linked to its hydroelectric-powered data centres. “Customers need audited data to report emissions accurately,” said Marjorie Guerrero, Executive Assistant to the CEO and ESG Coordinator at CHAMP.

Operational efficiency, data systems, and technology integration

With SAF supply limited in the near term, carriers and cargo handlers are pursuing operational efficiency measures to reduce emissions intensity. Flight planning optimisation, improved aircraft weight and balance systems, and ground efficiency measures are delivering incremental reductions. Aircraft models continue to improve in efficiency, but fleet renewal cycles remain constrained by supply chain lead times and capital availability. Industry reports indicate that the global commercial fleet is ageing due to extended asset lifecycles and delivery backlogs.

Digitalisation is central to both emissions reduction and reporting readiness. Automated tracking, network planning optimisation, and sensor-based fleet management are enabling more accurate fuel burn measurement and resource allocation. Scope 3 reporting, in particular, requires standardised data exchange between airlines, forwarders, and shippers. Industry surveys show that data alignment remains a primary barrier to credible sustainability reporting. “Data collection and alignment across stakeholders is one of the areas where companies struggle most,” Hughes said.

Artificial intelligence and Internet of Things tools are being integrated to support predictive resource management, real-time visibility, and continuous emissions tracking. However, the increased use of data-intensive systems introduces energy sourcing implications. McDermott highlighted that digital infrastructure planning will have to integrate renewable power availability.

“Technology is essential to efficiency gains, but energy supply for data architecture must be aligned with sustainability objectives.”

The growth of sustainability-linked finance is also changing the investment landscape. Financial institutions are increasingly applying emissions and governance criteria to lending and investment conditions. Some financing agreements require ongoing sustainability performance reporting, linking interest rates or credit access to verified outcomes. Industry advisers note that sustainability-linked finance is accelerating board-level engagement and influencing procurement decisions for IT systems, vehicles, equipment, and facilities.

Collaborative frameworks are emerging to support alignment and benchmarking. Tiaca’s BlueSky sustainability assessment programme provides companies with structured evaluation and comparison tools across multiple dimensions, including environmental, social, and governance factors. Such frameworks are being used to identify gaps, prioritise investment, and compare performance across regions and business models. “Assessment tools like BlueSky are helping companies benchmark sustainability performance and prioritise investment,” Hughes said.

The direction of policy and regulatory development indicates that sustainability reporting and fuel transition requirements will tighten further. As compliance expands, airfreight stakeholders are focusing on building resilient data systems, integrating SAF-based commercial models, and coordinating emissions strategies across supply chain partners. The sector’s decarbonisation path will require sustained investment, cross-industry collaboration, and continued development of verifiable reporting practices. “The next generation of sustainability leaders will need both technological insight and operational expertise to drive meaningful change,” McDermott said.