The Invisible Half of Net Zero Sits Within Logistics Real Estate
A lot of process towards realising net zero in food retail is visible. It shows up in electric fleets, reduced, recycled or recyclable packaging and energy efficient store operations, in particular refrigeration. What is less visible is the role real estate – the stores themselves as well as the warehouses forming part of the supply chain - plays in shaping long-term emissions.
Buildings, built to function well over decades, are at the centre of the system. The way they are designed, built, run and adapted over time is one of the key factors for a sustainable food retail supply chain.
For operators with net zero commitments, this is a significant factor. When new space is commissioned, the carbon tied up in materials and construction increasingly sits alongside operational performance in reporting. The UK Green Building Council estimates that construction and refurbishment account for around 20 per cent of built environment emissions, bringing embodied carbon firmly into scope for net zero strategies.
Cleaner grids and more efficient buildings reduce day-to-day emissions, but they also make the impact of construction more visible. As operational emissions fall, that balance starts to shift
Retrofitting existing buildings should always be considered. Alongside new build where viable, it can extend asset life and improve performance but can be complex. Constraints around layout, power and legacy systems can limit what is achievable.
New buildings, likely built to the latest building certification and therefore offering strong performance from day one can be attractive as they may also be able to better address issues such as layout. However, they come with a higher embedded carbon footprint than a refurbishment. Materials used for construction are reducing in carbon intensity too, that progress is slow. The question becomes one of timing and trade-offs.
For retailers managing large, complex networks, this sits alongside decisions on location, consolidation and capacity. A building that works today but limits future progress may not be the right long-term answer. Equally, a new facility needs to be justified in more than one way.
Companies can only fully deliver against their long-term commitments and operating performance if their buildings are included in their considerations and plans. Sites with enough power, flexible layouts and efficient systems make it easier to reduce emissions year after year.