Tackling warehouse embodied carbon
For years, operational carbon emissions have rightly taken centre stage in net-zero strategies. Regulations and performance standards have focused on reducing emissions from heating, lighting and powering buildings, areas where progress is visible and measurable.
But as operational emissions fall, the proportion of total carbon emissions attributable to the building’s material and construction phase becomes more significant. This shift necessitates a more holistic view of a building’s lifecycle emissions. Embodied carbon – the emissions generated throughout the lifecycle of a building from material extraction and transport to construction and demolition – now demands urgent attention.
Embodied carbon in warehouse construction poses a unique challenge due to the sheer scale of buildings, the difficulty in accurately measuring material-specific emissions and the complexity of supply chains. But solutions are emerging through digital transformation, innovation and retrofitting.
Last year, we delivered our first timber frame warehouse (in Hamburg, Germany), which saved 14 per cent of the carbon emissions typically required for conventional construction methods. Within one month of completion, the site had secured its first customer, highlighting the growing demand for sustainable space among today’s modern occupiers.
That said, timber is not a universal solution. Around 80% of timber used for construction in the UK is imported, limiting its sustainability advantage in some cases. Tackling embodied carbon, therefore, demands a portfolio of approaches, from using lower-carbon and recycled materials, to deeper collaboration across supply chains and smarter use of technology.
So, here are three more ways we can effectively address embodied carbon in warehouses.
Retrofit over rebuild
One of the most effective strategies is simply to avoid new construction where possible. By retaining the original structure and retrofitting, a significant amount of the carbon emissions associated with new construction can be avoided.
A standout example is 2 Auriol Drive at Greenford Park, our first BREEAM Outstanding refurbishment and the world’s first industrial retrofit to achieve this rating. The 25-year-old warehouse was transformed using reclaimed materials and renewable technologies, achieving an 81% reduction in upfront embodied carbon compared to a new build. It should be noted that many older buildings are simply not suitable for the modern-day needs of occupiers, so while the option of refurbishment should be considered, there is little benefit to anyone in having a sustainable building that is unoccupied, and sometimes rebuilding it is the only viable option.
Reuse materials through circular supply chains
Tapping into construction circular economy networks and trialling creative solutions, such as AI powered “material compatibility apps” that match unused steel or timber from one site to another, can promote reuse across projects and reduce the need for new materials.
It’s true that recycled and low-carbon materials can be more expensive upfront. But the benefit is clear, as customers become increasingly focused on ESG performance, not just on paper, but across their supply chains. A standout example is our work at Axis Park, where we’re reusing a significant portion of the existing steel and floor slab in situ. This approach has cut embodied carbon by approximately 100kg/m². We’re also exploring similar strategies at Greenford, including surveying the existing structure for reusable steel and trialling new tools that match reclaimed stock with design needs. While there are still market and contractual hurdles to overcome, initiatives like these are driving meaningful progress in the industry.
Design with carbon in mind from the outset
We’re investing in technologies that embed sustainability at the design stage. Building Information Modelling (BIM), for example, can help to reduce waste, optimise materials and simulate lifecycle impacts long before construction begins.
Smart design approaches that focus on Modern Methods of Construction including modularity, disassembly and reuse can significantly reduce a building’s carbon footprint.
One of the most pressing challenges is building broader engagement around the issue. Embodied carbon remains under-addressed in mainstream climate conversations, largely due to the complexity of Scope 3 emissions. Measuring and reducing them requires collaboration across extensive supply chains, access to reliable data and a willingness to share information in an industry that has traditionally operated in silos.
A lack of standardised reporting frameworks and a lingering view of Scope 3 emissions as “nobody’s problem” only add to the challenge.
But this must change. Embodied carbon shouldn’t be a topic that only specialists talk about. We need widespread education, supportive policies and greater transparency across supply chains.
No one has the answers, but through global cooperation across our value chains, employee incentives and a clear sense of urgency through policy and mainstream discussions, we can take meaningful steps toward reducing embodied carbon and building a more sustainable future for industrial real estate.