Analyst Insight: Companies need to take an integrated approach to improving the environmental performance of their warehouses. Experience shows that allowing for key factors at the outset can make the journey easier. 

Before decision-makers consider the many options they have for reducing the environmental impact of warehouses, they must look at the benefits of retrofitting existing facilities versus building new ones. Retrofitting involves additional costs but requires fewer materials and resources that can contribute to carbon emissions over their life cycles.

As warehouse automation increases energy demand, it is important to choose technologies and systems designs that help companies meet their environmental goals.

Having decided on the broad approach to green warehousing, practitioners can focus on specific operational areas to accomplish goals such as reducing a facility's carbon footprint by implementing energy-efficient practices.

Target Areas for Improvements

Material handling equipment (MHE) is a good place to start. Recent MIT CTL research showed that, while the initial cost of purchasing electric MHE like forklifts and yard tractors may be higher than traditional MHE, the savings in fuel and maintenance costs mean payback periods can be as short as three years. The research also showed that hydrogen-powered forklifts have higher storage infrastructure and maintenance costs; newer units powered by lithium-ion batteries are still the better choice.

Another recent MIT CTL/Maersk research project showed that high-density, more efficient automated storage and retrieval systems (AS/RS) can reduce the carbon emissions and physical footprint of warehouses. However, the embodied carbon (generated over the lifecycle of the materials and resources used) and computer power usage associated with AS/RS systems can offset environmental gains. 

Solar panels and wind turbines can meet the energy needs of existing and new facilities, although these options may require significant upfront investments. Those can be offset by Power Purchase Agreements (PPAs), where energy providers develop, fund, and operate the green energy project and purchase the power generated. 

Multiple Options

The shift toward alternative energy sources underscores the necessity of an integrated approach when assessing and implementing green warehouse solutions.

Research at MIT CTL showed that HVAC systems — among the highest contributors to energy consumption in warehouses — can be made more efficient with the use of smart windows that retain and release heat during winter and summer seasons, high-volume low-speed fans, infrared heaters, and sunlight-reflecting white roofs. 

Moving Toward Greener Warehousing

Given the number of options, formulating the right strategy for improving a warehouse's environmental performance may seem daunting. Here are six recommendations. 

• Aim to start a green warehouse project with quick wins, generating organizational support for broader, more complex sustainability transformations.

• Be aware that warehouse ownership can shape a facility's environmental footprint. Leasing warehouses can pose challenges when sustainability initiatives require the installation of fixed assets, such as solar panels. Companies can establish contract terms with property owners.

• Allow for unexpected challenges when harnessing green energy sources.  Sources like solar and wind often have peak production times, so energy storage solutions may be required for off-peak periods. Also, many U.S. city utility grids are not ready for the demands of widespread electrification across warehouses and other facilities.

• Sustainability projects may require improved access to data. Companies should install systems that can track and monitor key metrics, such as the energy usage of MHE equipment, and employ data analytics tools to process and analyze the collected data. 

• Establishing a green warehouse culture is important. Training within and outside the warehouse is required, as are incentives that reward trailblazers.

• Warehouse sustainability extends beyond the facility's four walls. Think of the warehouse as part of a supply chain ecosystem. For instance, warehouses can provide EV charging stations for electric-powered trucks. 

A Smarter Future

There are many easy-win opportunities to move warehouses toward an environmentally responsible future. Digital solutions will facilitate these initiatives by providing real-time energy consumption, emissions, and resource utilization data. 

For more insights into sustainable warehousing, see the authors’ whitepaper The Warehouse of the Future: Toward Highly Automated, Interconnected, Sustainable Warehouses.