In the UK, International Airlines Group (IAG) and Microsoft said they are strengthening their efforts to reduce lifecycle carbon emissions across the industry by extending their 2023 co-funded purchase agreement for SAF by five years. Under the new terms, Microsoft will co-fund an additional 39,000 tons of SAF that will help reduce lifecycle carbon emissions by approximately 113,000 tons. The extension to the agreement enables Microsoft to address Scope 3 lifecycle emissions and is the largest and longest Scope 3 SAF agreement to date between an airline and corporate customer, according to publicly available data. By partnering with its corporate customers, IAG is able to purchase more SAF and reduce its Scope 1 (direct) emissions. Corporate customers also benefit by lowering Scope 3 lifecycle emissions from the industry commensurate to a proportion of their corporate flying. Microsoft is also co-funding SAF that is used by the Group’s airlines to ship data center components globally, in partnership with Microsoft’s freight forwarders. Microsoft’s contribution to the cost of SAF production will support the airlines within IAG with the overall reduction of lifecycle emissions.
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