Emmissions-Reducing Airline Agreements

Microsoft and IAG have extended their sustainable aviation fuel (SAF) purchase agreement, further solidifying their commitment to reducing lifecycle carbon emissions associated with business travel. The enhanced agreement involves Microsoft co-funding an additional 39,000 tonnes of SAF, which is projected to reduce lifecycle emissions by approximately 113,000 tonnes. This contract, noted as the largest and longest Scope 3 SAF purchase agreement to date between an airline and a corporate partner, utilizes SAF produced at facilities in the United Kingdom and the United States. The fuel is derived from alternative feedstocks rather than fossil fuels, thereby mitigating additional carbon emissions when compared to conventional aviation fuels.

The extended agreement aligns with Microsoft’s broader environmental objectives, including its goal to be carbon negative by 2030, and contributes to IAG’s efforts to increase its usage of sustainable aviation fuel. In addition to addressing corporate Scope 3 emissions associated with business travel, the deal supports funding for increased SAF production and its integration into the global aviation supply chain. The collaboration between Microsoft and IAG underscores a strategic approach to sustainable fuel sourcing that complements other initiatives aimed at reducing aviation-related emissions and enhancing overall environmental performance.

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