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For this week’s newsletter we’ve given the mic to Dan Benhamou, Senior Vice President at Brookfield to widen the decarbonisation lens beyond the truck.

While greening vehicles is an important part of the shift to net zero, freight and logistics leaders should also be considering their broader infrastructure. Currently, organisations have only been required to report all Scope 1 (direct greenhouse gas emissions such as vehicles) and Scope 2 emissions (indirect emissions such as the energy used and bought). However, in the next few years, organisations will be required to report indirect emissions across their value chain. These are known as Scope 3 emissions and include leased assets, transportation and distribution.

That’s why more needs to be done to green logistics infrastructure too. The warehousing stock across Europe is varied. You’ll often find some have been around for at least 40 years, and so their capability of delivering much-needed energy efficiencies for freight and logistics leaders quite rightly should be questioned if being bought, leased directly or, as part of the broader supply chain. While older warehouses can be retrofitted with technologies such as energy-saving LED light fixtures and solar panels, these are a drop in the ocean when it comes to creating more sustainable operations. 

Where we see more value is the rise of logistics parks that are helping to regionalise supply chains and promote shared infrastructure and resources, which are helping to support overall greener supply chains. Here’s why…

A logistic hub means thinking about a warehouse as more than a siloed destination to transport goods for storage. They embrace shared solutions across multiple spaces and tenants to offer better Scope 1 and Scope 2 credentials. Having multiple tenants closer together means they can share resources. Implementing energy-efficient heating and cooling systems underground, utilising on-site solar power facilities, and offering electric vehicle charging stations are a few of the ways these facilities are decarbonising.

The sheer scale of parks means they can also house both customers and suppliers to minimise transportation between the two. And these newer infrastructures are purposefully being built in locations that strengthen regionalised supply chains and that are closer to end-users. Not only does this result in faster and more efficient deliveries to improve customer satisfaction, but this can also help cut journey times for collecting and transporting goods, reducing fuel usage for a more sustainable journey.

E-valley in northern France is a great example of these emerging logistics hubs. Once completed, it will house up to 10 million square-feet of warehouses, service areas and landholding, currently shared by 13 tenants. This includes AB InBev and its 3PL provider, ID Logistics, to optimise its wholesale and retail distribution flows. E-Valley is strategically located to connect the ports of Benelux to Paris, as well as the Canal Seine-Nord which promotes sustainable water-based travel by allowing barges to travel seamlessly between France and Belgium. E-valley tenants will be able to take advantage of this inland waterway by 2030 and provide more sustainable transport solutions.

While looking at vehicles and fuel are important elements in reducing emissions within the logistics supply chain, it’s crucial that logistics leaders look at the bigger infrastructure picture. Logistics infrastructure is a largely untapped opportunity to decarbonise supply chains. As ESG requirements continue to ramp up, organisations must prioritise greening their warehousing operations. Sustainability in warehousing is not just a choice. It’s a winning strategy for the future of logistics and the transportation of goods.