As the global push for net zero intensifies, the logistics sector finds itself at a crossroads. With rising regulatory pressure, investor scrutiny, and technological advancements, decarbonisation has become a non-negotiable priority.
Ahead of MIPIM 2025, logistics developers, investors, and occupiers are preparing to discuss the sector’s progress toward sustainable supply chains, net-zero warehouses and upgrading current stock.
Why decarbonisation is a business imperative
Logistics and supply chain operations are among the largest contributors to carbon emissions, with transport and warehousing accounting for nearly 20% of global CO2‚ output. Key drivers for decarbonisation include:
- Regulatory Pressure: The EU’s Fit for 55 package, the UK’s Net Zero Strategy, and the Corporate Sustainability Reporting Directive (CSRD) are pushing companies toward more sustainable practices.
- Investor and Tenant Expectations: ESG-aligned investments are now mainstream, with institutional investors prioritising green assets and occupiers demanding low-carbon logistics facilities.
- Operational Efficiency & Cost Savings: Renewable energy, electrification, and AI-driven supply chain optimisation are not just reducing emissions but also cutting costs.
Current energy performance of buildings consultation
It is clear that, in the UK, we will not meet our net zero ambitions unless we decarbonise our buildings. This will require not just new innovative, sustainable ways of working but also improving the performance of existing stock through energy efficiency upgrades and retrofit.
The UK government has initiated a public consultation to reform the Energy Performance of Buildings (EPB) regime, aiming to enhance energy efficiency across buildings in England and Wales.
Key proposals under consideration include:
- Updating EPC Metrics: Introducing additional metrics to provide a more comprehensive assessment of a building’s energy performance.
- Refining EPC Requirements: Adjusting the rules for when Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs) are necessary, ensuring they remain valid and reflective of current building conditions.
- Enhancing Certificate Quality: Implementing measures to improve the accuracy and reliability of energy certificates.
- Improving Data Accessibility: Making building performance data more accessible to stakeholders, facilitating informed decision-making.
- Strengthening Air Conditioning Inspections: Enhancing the quality of air conditioning inspection reports to ensure systems operate efficiently.
On refining the EPC requirements, one of the proposals is that an EPC is always required, not just when a property is let, so removing the current exception where a Tenant renews or extends their lease.
A wider concern re EPCs is that they assess theoretical energy efficiency, but to effectively decarbonise the built environment, we need to concentrate on actual energy consumption and associated CO2 emissions.
Final thoughts
The transition to net-zero logistics is no longer optional it’s an economic and environmental necessity. As we approach MIPIM 2025, the sector must focus on scaling sustainable solutions, embracing innovation, and collaborating to achieve meaningful carbon reductions.
For investors, developers, and occupiers alike, the message is clear: those who act now will future-proof their assets and lead the sector into a greener, more resilient future.
If you want to discuss this article further, please contact Charlotte Ward.
