Logistics is an essential industry, but one with a significant impact on the environment. As attention to climate issues has grown, so have strategies to reduce the sector’s waste and greenhouse gas (GHG) emissions. While the world has yet to achieve the goal of net-zero logistics, organizations have made significant progress.
The Need for Net-Zero Logistics
Transport accounts for over a third of CO2 emissions, and cargo accounts for much of this impact. More worryingly, transportation-related emissions are growing faster than any other sector. Slowing shipping itself is not an option—the world needs functioning supply chains to sustain itself—so transitioning to high-efficiency workflows and renewable energy is a must.
Electricity is another prominent climate concern in the industry. Most power today comes from fossil fuels, and warehouses use a lot of it to drive equipment, maintain optimal temperatures and keep lights on. As these facilities grow amid rising production, energy-related emissions become a larger problem.
Businesses must address these issues to protect the environment, but the consequences go beyond long-term sustainability. Today’s customers are increasingly skeptical of wasteful companies, so efficiency is becoming a matter of client loyalty.
There are legal implications to consider, too. Climate laws are rising, with some jurisdictions requiring steps like reducing heavy-duty vehicle pollution by 15% by 2025. Failing to comply with environmental regulations could lead to fines, depending on where a business operates.
What Technologies Enable a Net-Zero Warehouse Today?
Building a net-zero warehouse is not easy, but it’s a more accessible goal today than it has been in the past. Several technological improvements have paved the way for greater efficiency, and logistics providers must consider how they can use these to lower the sector’s emissions.
Newer, more efficient utility systems like lighting and heating make a considerable difference. Swapping incandescent or halogen lights for LEDs can reduce electrical usage by 80%, resulting in far fewer lighting-related electricity emissions.
The Internet of Things (IoT) is another key innovation. Smart lighting and HVAC systems can adjust automatically to changing real-time conditions, maintaining optimal temperatures and lighting while using as little power as possible. While the effects may seem minimal initially, this efficiency leads to significant emissions reductions over time.
Adopting electric vehicles (EVs) in company fleets is imperative. The manufacturing and electricity consumption of EVs do entail some emissions, but they still emit over 70% less than gas and diesel alternatives. Long-range EVs are not yet widely available, but organizations can use electric vans for last-mile deliveries.
Of course, renewable energy also plays a key role in net-zero warehouses. Facility roofs provide an ideal space for on-site solar generation. Even if companies cannot generate enough solar power for their whole operation, they can reduce how much fossil fuel energy they must purchase from the grid. Carbon offsets—which involve investing in renewable electricity elsewhere—can compensate for a lack of clean power in areas where it’s less feasible.
How Close Are We to Net-Zero Logistics?
The potential of these technologies is more than just theoretical. Several logistics businesses have already seen marked improvements in their journey toward net-zero emissions.
Some warehouses have been able to reduce their annual power consumption by up to 60% through a single upgrade. By using high-efficiency cooling technology, a refrigerated production line eliminated 655.7 tons of CO2 from its carbon footprint.
A study from the National Renewable Energy Lab found four out of six companies have implemented emissions reduction goals. Many use LED lighting and solar power to achieve such targets. At least one organization is on track to eliminate transportation emissions through EVs by 2025.
Cases like these highlight a promising trend—facilities across the globe are making substantial progress toward a net-zero future. Some have even succeeded in that ultimate goal.
In 2020, a warehouse in the Netherlands became the first certified zero-carbon industrial building, consuming just 1.7 megawatt-hours (MWh) of electricity while producing 3.5 MWh of solar energy annually. The remaining renewable electricity can power roughly 700 households, leading to even broader sustainability improvements.
What’s Next for Green Logistics?
Despite such impressive strides, global net-zero logistics is still far from becoming a reality. The industry must grapple with several remaining issues and stay on top of technological advancements to become truly green.
One of the biggest barriers is the unavailability of EVs for longer routes. While it’s entirely possible to electrify all last-mile fleets, diesel and gas remain the only viable options for long-haul trucking, air transport and ocean freight for now. However, this will change in the future.
Hydrogen fuel cells could support longer drives where battery-powered EVs struggle. Early tests of hydrogen-powered trains achieved ranges of 1,000 kilometers, as the element is more energy-dense than any other fuel. There are not many hydrogen trucks available in today’s market, but businesses could invest in their research and development to accelerate their timeline.
Upfront costs are another leading concern. Renewable energy, EVs and IoT infrastructure all introduce significant expenses. However, their resulting efficiency lowers ongoing spending over time, so they eventually make up for this investment. Slowly upgrading systems one by one to spread out the financial burden could help organizations manage the costs.
Carbon offsets may be necessary as the industry waits on technologies to enable more dramatic sustainable upgrades. While credits are not a perfect solution, they buy time by reducing global emissions, allowing a slower rollout for other innovations.
The Warehouses of Tomorrow Must Be More Efficient
Net-zero logistics is a lofty but necessary goal. The industry must reach it one way or another, and doing so may improve business in the short term as it paves the way for longer-term benefits.
Warehouses and their supporting organizations have a long way to go before they can claim to be truly sustainable. Still, many are making considerable progress, and the way forward will get easier with additional technological advancement. Staying on top of these trends is key as companies look to the future.
