By Yi Wei Wong

Singapore Airlines Ltd. aims to achieve net-zero carbon emissions by 2050, the company said Monday.

The airline will achieve this goal by investing in new generation aircraft, adopting low-carbon technology such as sustainable fuels, and through carbon offset projects, it said in a release.

"Today, the most effective and direct way for an airline to materially lower carbon emissions is by operating a young fleet of aircraft," said Mr. Goh Choon Phong, the Chief Executive Officer of Singapore Airlines. He noted that the average age of the airline's aircraft was under six years.

SIA Group said it will replace 45 retired old aircraft with new-generation models which are up to 30% more fuel efficient.

The aviation company also pledged to improve fuel productivity by optimizing flight routes.

The announcement comes as more Singapore-based businesses are taking steps to mitigate the impact of climate change.

The country's largest lender, DBS Group Holdings, last week announced it will team up with Singapore Exchange and state investment firm Temasek Holdings to establish a local carbon-credits marketplace. Royal Dutch Shell and Sembcorp Marine announced a partnership to study the use of hydrogen fuel cells for ships in Singapore in late April.

Write to Yi Wei Wong at yiwei.wong@wsj.com

(END) Dow Jones Newswires

05-24-21 0309ET