Getting to Net Zero: Ensuring energy resilience for industrial and logistics

Industrial and logistics buildings underpin the economy. How can the demands of occupiers be balanced alongside the need for energy resilience and ambitious Net Zero targets?

A series of unprecedented global events, all happening in relatively quick succession, have led industrial logistics developers and investors to reconsider their priorities as they focus on meeting their tenants’ demands. The first of these, the Covid-19 pandemic, accelerated a boom in ecommerce, which saw distribution centres become the backbone of the UK economy, acting as intermediaries in the supply chain.

Building owners, developers, investors, funders and occupiers are considering ways to reduce their energy use and carbon footprint, particularly as energy performance certificate (EPC) standards tighten. With the national grid under strain and grid connections sometimes unavailable or below the supply level required, the logistics real estate market is seeking to build energy resilience for such sites, leading to an anticipated increased investment in onsite renewable energy generation and battery/energy storage technology.

We interviewed a cross-section of industry experts to better understand their challenges and solutions, and consider the options for implementing onsite energy generation. They have shared a diverse range of opinion and many valuable insights, sharing their thoughts on how organisations can adapt their strategies to benefit.

We are extremely grateful to our interviewees for sharing their views and hope that this report acts as a springboard to stimulate discussion and aid understanding of the opportunities for the sector.

Many thanks to the following organisations for their valuable contributions to this report: Panattoni, Greater London Authority, St. Modwen Logistics, ISG, Savills Earth, British Property Federation, Tritax Symmetry, and Atrato Group.