Warehouses on the path to climate neutrality: how developers are redefining the standard for logistics assets

Environmentally sustainable warehouses are becoming the market standard, driven by regulation, occupier and political expectations, and rising energy costs. One of the key directions of change is the shift away from fossil fuels in heating, combined with a consistent approach to reducing carbon emissions. SEGRO’s example shows that this can be implemented at scale.

A warehouse that genuinely aligns with a sustainable development strategy must address two parallel dimensions of CO₂ reduction: embodied – emissions generated at the design and construction stages, where the key factor is the use of low-carbon materials supported by Environmental Product Declarations (EPDs); and operational – emissions associated with building use, especially heating. In typical warehouse facilities, the main source of emissions has been systems based on the combustion of natural gas.

SEGRO is on a journey to phase out gas heating in all new warehouse developments in Poland. This is part of the company’s strategy to reduce carbon emissions across the entire property portfolio and a direct response to growing customer and investor expectations regarding sustainable buildings.

Under the previous standard, warehouse and production halls were heated with gas-fired radiant heaters. These are effective in large, high-volume spaces, but fully dependent on natural gas so generate significant on-site CO₂ emissions. The new standard introduces electric air-source heat pumps, which capture warmth from the outside air to provide highly efficient, low-carbon heating. These units can also operate in reverse mode, meaning the same system delivers cooling during the summer months. This is a particularly important feature in production facilities, where customers are facing overheating caused by high external temperature and additional heat gains from machinery.

Combined with the ongoing decarbonisation of the energy mix and on-site renewable energy generation, the shift from gas systems to heat pumps can reduce emissions associated with building operation by as much as 70–80%. SEGRO’s portfolio in Poland is powered exclusively by renewable electricity from the grid, which means that buildings equipped with heat pumps no longer generates any operational CO₂ emissions. Each new building is additionally equipped with rooftop photovoltaic installations that contribute to operation of the heating, further reducing the grid electricity consumption and helping to stabilize operating costs for occupiers.

Sustainability brings challenges
The transition to fully electric heating is not a simple like-for-like replacement of the heating equipment. In Poland, where winter temperatures can fall below –15°C, heat pumps must ensure stable performance in such conditions. The electrical infrastructure also needs upgrading. For industrial and logistics warehouses, full electrification therefore entails a fundamental shift in the entire building design model, rather than a simple swap of heating equipment.

Environmental certification is an important part of being able to independently verify the sustainable nature of modern warehouses, although it does not in itself fully address the broader challenge of decarbonisation. In 2022 SEGRO committed to ensuring that every newly developed building achieves a BREEAM rating of at least “Excellent”. In parallel, the company has developed its own carbon footprint calculation methodology, applied in all countries in which it operates.

This approach covers materials supported by environmental product declarations (EPDs), low-emission transport solutions and an analysis of each phase of the project delivery process. The methodology is based on a BIM (Building Information Modelling) model, which specifies every element of the building in 3D and includes all necessary information. This enables an accurate calculation of emissions expressed in kilograms of CO₂.

SEGRO has set science-based targets to be net-zero by 2050, with near-term targets of reducing the intensity of corporate and customer emissions by 81% and embodied emissions by 58% by 2034. Regarding embodied carbon emissions, the company is gradually reaching the limits of what can be achieved with standard low-carbon materials available on the market, such as recycled steel. In response, it is considering the broader use of timber in building structures as an alternative that would enable further reductions in embodied CO₂.  Innovations such as this are gaining momentum across the warehouse real estate sector as a tangible tool for reducing the carbon footprint.

Achieving the targeted energy and environmental performance parameters during operation requires continuous monitoring, in which BMS (Building Management System) solutions play a key role. They collect real-time data on the performance of building installations, monitor energy consumption, identify areas of elevated energy use and support verification of contracted power for grid connections. Additionally, advanced analytics tools can detect faults and irregularities in the operation of equipment, enabling rapid service response and reducing energy losses.

Many solutions that were considered innovative just a few years ago have now become market standard. These include intelligent lighting control systems (such as DALI) with presence and daylight sensors, through to heat exchangers for ventilation and underfloor heating in offices. Together, they help significantly cut electrical energy and heating demand which reduce operational CO₂ emissions.

Equally important is water management: rainwater harvesting systems for toilet flushing and landscape irrigation, complemented by greywater recycling. These can reduce potable water consumption by 30–50% and in some facilities, significantly reduce water-related operating costs.

The sustainable warehouse is becoming a key lever for delivering ESG strategies for developers and occupiers. SEGRO’s experience shows that tangible decarbonisation requires action on multiple levels, from design and material selection to fully digital asset management. As regulation tightens and cost pressures grow, today’s “best practice” is rapidly turning into the market norm and giving early adopters a lasting competitive edge.