Over the past few years, the requirements placed on industrial and logistics (I&L) warehouse-space providers to implement sustainability strategies have been immense. But what was once arguably regarded as a burden has developed into an opportunity.
Over the past few years, the requirements placed on industrial and logistics (I&L) warehouse-space providers to implement sustainability strategies have been immense. But what was once arguably regarded as a burden has developed into an opportunity.
While large international customers such as ecommerce and third-party logistics players have developed environmental, social and governance (ESG) strategies that are a prerequisite for doing business, 96% of the UK market is made up of smaller, more diverse customers that are now grappling with this challenge – almost always with fewer resources.
As the government’s net-zero-by-2050 target moves closer, I&L property companies have an opportunity to take the lead and become the trusted partner for customers, guiding them through the developing ESG landscape. With demand for warehouse space still at record levels, there are plenty of ways for property companies to meet customers’ needs and hit their own sustainability targets.
Forward-thinking I&L providers are updating their facilities, retrofitting green technologies
Forward-thinking I&L providers are updating their facilities, retrofitting green technologies such as LED lighting, heat pumps, rainwater collection systems and renewable-energy installations. The biggest opportunity appears to be in creating facilities that can generate and store clean power.
Having recognised solar power as a key direction for sustainability, many small- to mid-box property companies have been using this energy source since the early 2010s. Innovations such as thin-film solar panels, which minimise structural strain on buildings, now make it easier for more companies to participate. Solar installations also benefit customers with energy-intensive operations by reducing the risk of interruptions to the power supply.
While every property company is conscious of the capital outlay to pursue green power, there are different funding models, and research from industry bodies such as the UK Warehousing Association (UKWA) is available.
Understanding exactly what a customer wants – by commissioning specific ESG surveys together, for example – is equally crucial in determining the right approach to building a solar resource.
By committing to create facilities that generate and store clean power on site, small- to mid-box property companies can also supply energy to customers at a significantly lower cost than the National Grid. As battery-storage technology continues to develop, this could be the first step in the journey to energy self-sufficiency, and one that small- to mid-box providers should consider as part of their long-term environmental strategy.
In 2023, customers are looking for estates and units that prioritise energy efficiency as a ‘must-have’ feature. By demonstrating ESG successes and providing reliable and informed advice on green power and sustainability, small- to mid-box property companies will be able to anticipate and meet the needs of customers – proving that sustainability is an option for everyone, regardless of size.
Jason Rockett is managing director of Potter Space
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