The future of logistics: embracing sustainable warehousing

Over the past five years, the number of warehouses in France has doubled to keep up with the surge in e-commerce. While everyone understands the crucial role of these logistic sites in the supply chain, growing concerns exist about their negative impacts on the environment and urban development. Yet, there are many ways to develop a sustainable warehouse – a modern solution prioritising efficiency, eco-friendliness, and economic viability.

If traditional warehouses are under the spotlight of criticism, it is not necessary for their carbon footprint, which is relatively low. What matters most is their sprawling and unsightly physical footprint, their increasing use of arable land, the rise in truck traffic for delivery and the amount of waste they can generate. As the number of warehouses increases with rising consumption, it is crucial to develop sustainable warehouses that minimise their environmental impact, optimise efficiency and costs, and improve employee well-being. A must-do which is embedded in FM Logistic supply chain decarbonisation strategy, as states Pénélope Laigo, FM Logistic Sustainability & QHSE Director. “Our strategy is to focus on basic yet effective practices of sobriety and efficiency all over the life cycle of the building, from its design and construction, its lifetime operations and up to its demolition.” 

The vast majority of a warehouse’s carbon emission occurs upfront, i.e. before the site starts to be used. Hence, it is critical to consider its environmental impact during its design and construction phases to make it more energy-efficient To lower upfront carbon emissions, logistics players can use recycled or green construction materials, and install energy efficient lighting and solar panels. FM Logistic and NG Concept conducted a Life Cycle Analysis (LCA) to measure the CO2 equivalent emissions all over the life cycle of their buildings. It revealed that 70 % of a site’s CO2 emissions occur during the construction phase, 27 % during the use life and 3 % at its end-of-life stage (demolition and disposal). “ For each new project, we track the top 20 sources of carbon emissions at an early design stage until the building delivery to ensure the efficiency of our sites, explains Pénélope Laigo. For example, we choose green building materials such as eco-concrete for the structure and the slab (concrete production is highly emitting ), second-hand metal racks and cooling refrigerant gases. We also focus on optimising insulation to reduce the energy consumption required for cooling and heating the building”.  

Getting a green certification such as Leadership in Energy and Environmental Design (LEED) or Haute Qualité Environnementale (HQE) is a good way for companies to engage in a continuous effort to build and operate energy-efficient warehouses. LEED certification requires facilities to meet strict environmental standards, promote energy efficiency, resource conservation and emissions reduction. FM Logistic’s warehouses have obtained the LEED or HQE certification, such as Mommenheim and Escrennes in France, Wiskitki in Central Europe and Hanoi and Ho Chi Minh in Vietnam.  

Energy efficiency is a cornerstone of sustainable warehousing. For instance, FM Logistic’s “Watt Watchers” programme has introduced 75 actions aimed at energy efficiency, resulting in a 22% reduction in electricity consumption in France. Adopting renewable energy sources, such as photovoltaic solar panels, is pivotal. FM Logistic not only uses solar energy for its own needs but also aims to become a renewable energy supplier, with 15 active installations and 13 more in development.

Many logistics sites produce more energy than they need and can supply energy to other industries, commerce or individuals. “A FM Logistic warehouse can produce up to 10 times the electricity it needs”, says Pénélope Laigo. “We could sell it to other players, or use it to fuel green recharging facilities for vehicles that could be installed in our parking area. We could also partner with energy investors to use our properties for energy production. We aim to be carbon neutral by 2030 by reducing our energy consumption, purchasing green energy and producing on-site electricity.”

Reduce, reuse and recycle (3R) is one approach that sustainable warehouses should adopt to better manage their waste, and hence become more environmentally friendly places. Through recycling, composting and efficient resource management, they can significantly reduce their waste and minimise landfill use. Comprehensive waste management systems are integral to achieving these goals. 

Sustainable warehouses significantly lessen environmental impacts by reducing energy consumption, waste, and greenhouse gas emissions. “We have set up ambitious carbon reduction targets of carbon net zero by 2030”, says Pénélope Laigo. “We are on the good track, as our eco-built warehouses generate up to 20 % less CO2 during their lifetime thanks to the eco-design.” 

Sustainable warehouses also offer significant economic advantages over time. Optimised site design, energy-efficient practices and waste reduction translate into lower operational costs. For example, FM Logistic’s energy consumption on average in France stands at just 30 kWh/m², compared to the national average of 135 kWh/m²/year, showcasing the potential for significant cost savings. Green warehouses also go hand in hand with operational efficiency improvements, through the adoption of automated lines and mutualised sites between customers. Sustainable warehouses also provide social benefits by promoting healthier and safer work environments. Better air quality, improved lighting, and ergonomic designs contribute to the well-being of employees, enhancing productivity and reducing health-related absences.

Addressing technological and infrastructure barriers, especially in older facilities, requires a phased approach. Businesses can start with smaller projects, gradually scaling up their sustainability initiatives. Partnering with technology providers and sustainability consultants can provide access to the latest innovations and best practices. Additionally, investing in employee training ensures that the workforce is aligned with the company’s sustainability goals.

Continuous improvement and a commitment to sustainability can transform challenges into opportunities. By focusing on sobriety and efficiency practices, companies can meet modern sustainability standards, gaining a competitive edge. The long-term benefits, including cost savings, and compliance with environmental regulations, often outweigh initial investments. Through careful planning, good management skills and persistent effort, businesses can successfully navigate the complexities of sustainable warehousing, contributing to a greener future.

The shift towards sustainable warehouses is essential for the future of the logistics industry. Looking ahead, it is clear that sustainable warehousing is not just a trend but a vital evolution in logistics. Companies must adopt and expand sustainable practices to remain competitive and responsible in the face of growing environmental and social challenges. With continued dedication to these principles, the logistics industry can pave the way for a greener, healthier, and more sustainable future. “The journey towards sustainable warehouses requires, above all, strong management skills and a change management approach, concluded Pénélope Laigo. At FM Logistic, we see sustainable warehouses as an opportunity to embark the sector towards more sustainable, optimised and cost-effective practices.”