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Sustainable Warehousing in India: Essential for a Greener Tomorrow
- rightspaces
- Est.Time - 5 mins
What is sustainable warehousing?
Sustainable warehousing, also known as green or eco-friendly warehousing, aims to minimise environmental impact while enhancing efficiency and operational effectiveness. The warehousing sector in India is growing at a robust pace, with a compound annual growth rate (CAGR) of approximately 15-20% in recent years. This growth is fueled by increasing demand from e-commerce, manufacturing, and retail sectors, as well as rising investments in infrastructure and technology improvements.
Why is sustainability important in the warehousing sector?
Sustainable warehousing is not just a trend but a necessity for the future of logistics in India. As industries continue to grow, embracing sustainable practices will be crucial in minimising environmental impact, reducing operational costs, and meeting the rising demand for eco-friendly solutions. By adopting sustainable warehousing solutions, companies can play a pivotal role in creating a greener, more resilient supply chain that benefits both the economy and the environment.
5 Key Elements that define a sustainable warehouse
A sustainable warehouse integrates eco-friendly practices across various aspects of its design, construction, and operation. Key elements include:
- Green Building Design: Sustainable warehouses often feature green infrastructure such as permeable pavements, green roofs, and landscaped areas using drought-tolerant native plants. These elements not only enhance biodiversity but also manage stormwater effectively and reduce the urban heat island effect.
- Water Conservation: Implementing water-saving fixtures such as low-flow faucets, dual-flush toilets, and rainwater harvesting systems helps reduce water usage. Sustainable warehouses also incorporate systems to monitor and control water consumption, preventing wastage and supporting groundwater replenishment.
- Waste Management: A robust waste management plan is crucial, emphasising the reduction, recycling, and responsible disposal of waste materials. Warehouses can minimise construction waste by using pre-fabricated materials and encouraging recycling among employees and contractors.
- Energy Efficiency: By utilising energy-efficient lighting, HVAC systems, and integrating renewable energy sources like solar panels, warehouses can significantly cut down their energy consumption. Insulation improvements, such as optimised window-to-wall ratios and the use of materials with low U-values, further reduce the need for artificial heating and cooling.
- Transportation & Logistics Optimization: By strategically locating warehouses near key transport hubs and using efficient logistics practices, companies can reduce carbon emissions associated with transportation. This not only decreases environmental impact but also enhances operational efficiency.
Impact of Sustainable Warehousing as Developers
Green Leasing in Real Estate
Green leasing, an emerging concept in India, aligns landlords and tenants with sustainability goals. While this concept has gained traction globally, it’s beginning to find its footing in India’s industrial real estate sector. A green lease incorporates clauses promoting energy efficiency, water conservation, and waste management. For instance, tenants may commit to using energy-efficient lighting, while landlords might invest in renewable energy systems or ensure the facility meets green certification standards. The ultimate goal? To reduce the environmental footprint while achieving long-term cost savings for all parties.
Green Financing: A Case Study – IndoSpace Core
In the year 2020, IndoSpace Core set a benchmark in green financing by securing a ₹1,000 crore green loan from HSBC. The funds supported certified green projects in key warehousing hubs like Pune, Chennai, Bangalore, and Delhi-NCR. These projects, EDGE-certified for sustainability, highlighted IndoSpace’s leadership in sustainable industrial real estate. Their Green Finance Framework, rated ‘Medium Green’ by CICERO Shades of Green, was the first globally to incorporate EDGE-certified warehouses, positioning IndoSpace as a pioneer in green warehousing.
Indospace boasts of some marquee clients such as EA, Amazon, Nissan, DHL, DB Schenker, Delhivery, Steelcase, Ericsson, Bosch and Aptiv.
Future Trends in Sustainable Warehousing
The shift towards sustainable warehousing in India is driven by a growing recognition of the benefits among developers and occupiers. Companies are increasingly seeking green building certifications like IGBC, LEED or EDGE to demonstrate their commitment to sustainability. However, concerns about the upfront costs of implementing sustainable measures remain. Nonetheless, as awareness grows and regulatory support strengthens, the demand for sustainable warehousing solutions is expected to rise.
Key trends shaping the future of sustainable warehousing in India include:
- Increased Green Certifications: More warehouses will seek certifications such as LEED that validate their sustainability efforts, providing a competitive edge in the market.
- Development of Green Materials: There will be a greater focus on using environmentally friendly and locally sourced materials that have a lower environmental impact.
- Technological Adoption: The use of advanced technologies, such as IoT for energy management and smart logistics systems, will enhance the sustainability and efficiency of warehousing operations.
- Government Support: Initiatives like the Energy Conservation Building Code (ECBC) and tax incentives for green buildings are expected to boost the adoption of sustainable practices.
Conclusion: Addressing Challenges and Embracing the Future of Sustainable Warehousing
Despite the promising growth of sustainable warehousing in India, several challenges still remain, including high initial investment costs, lack of awareness, and limited access to advanced green technologies. Additionally, the need for regulatory support and industry-wide adoption of sustainable practices continues to be a hurdle. However, the urgency to mitigate environmental impact and reduce operational costs makes sustainable warehousing not just a choice but a necessity for the future.
As businesses increasingly recognize the long-term benefits of green warehousing—such as energy savings, enhanced brand reputation, and compliance with environmental standards—the adoption of sustainable practices will become more widespread. By overcoming these challenges and committing to sustainable development, the warehousing sector can significantly contribute to India’s green goals, ensuring a resilient and responsible path forward. Embracing sustainable warehousing today is essential to secure a greener, more efficient, and economically viable future
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About the contributor
Anjanakshi is an architect and a valued team member at Rightspaces. With a passion for design and branding, she stays curious, loves reading, writing, and keeping up with market insights in the industrial real estate space.