The business leader's guide to sustainable warehousing
Transform your warehouse into a sustainable, high-performance asset. Learn how to save costs, meet ESG goals, and drive long-term value with Unipart.
Get in touchWarehousing contributes up to 11% of the logistics sector’s greenhouse gas emissions, making it a vital focus for sustainability efforts. With the global sustainable logistics market valued at $1.3 trillion in 2022 and expected to reach $2.9 trillion by 2032, sustainable warehousing presents a clear challenge, and a significant opportunity, for business leaders to reduce impact, meet rising consumer sustainability expectations, and drive long-term value.
In this guide, Unipart leaders share practical strategies for UK businesses to begin or enhance their sustainable warehousing journey. They discuss the importance of strong leadership, detailed sustainability audits, clear goals, and innovative systems. These include Warehouse Management Systems (WMS), such as Unipart’s Digital Enterprise System (UDES), a warehouse management tool designed to optimise inventory, picking, and replenishment. They also highlight the EI. Energy Control System, which turns energy data into actionable insights, improving operational efficiency and reducing waste, energy use, and emissions.
Why a sustainable warehouse operation is crucial
Running facilities in an environmentally conscious way involves minimising energy consumption, reducing waste, conserving water, and improving space and transport efficiency. This approach supports broader sustainability goals while enabling more responsible and efficient operations.
Here’s three key reasons for businesses to act now:
- Responding to rising pressures: Consumers and investors increasingly expect brands to demonstrate environmental responsibility. Nearly 80% of investors now factor ESG (Environmental, Social, and Governance) performance into their decisions. Furthermore, tightening UK regulations, including net-zero commitments, mean that an environmentally sound sustainable warehouse is no longer optional.
- Achieving cost savings: Sustainable warehousing practices offer significant financial benefits. Energy-efficient solutions, renewable power, and water-saving technologies help reduce utility costs. Adopting circular economy principles cuts waste, lowers disposal fees, and reduces the need for raw materials, improving overall operational efficiency.
- Building a competitive advantage: Sustainability enhances brand reputation, builds customer loyalty, and helps attract and retain talent. Nearly 40% of younger workers prefer to work for environmentally responsible employers. Companies with strong sustainability credentials are better positioned to grow and secure top talent.
Review your current situation
According to Chris Dixon, Managing Director of Supply Chain Consulting, businesses must first have a clear understanding of their current sustainable warehousing operations. “Effective sustainability strategies start with clear, standardised reporting and thorough emissions analysis, ensuring businesses can measure. Keep it simple and act on what truly matters,” he says.
Here are the key steps Chris recommends businesses take to assess their operations and identify areas for improvement:
1. Leadership and clear vision
A successful sustainable warehousing strategy requires strong leadership and a clear vision. Leaders must set measurable targets, such as reducing emissions or energy use, that are aligned with overall business objectives. Sustainability should be embedded in all activities, from responsible procurement to energy-efficient equipment and eco-friendly practices.
2. Sustainability auditing
Understanding current environmental performance is essential for effective facility sustainability. Key auditing steps include:
- ESG reporting: Use established frameworks like the Global Reporting Initiative (GRI) to transparently communicate your environmental performance to stakeholders.
- ISO 14001 gap analysis: Auditing your Environmental Management System (EMS) against ISO 14001 standards helps identify areas for improvement and ensure regulatory compliance.
- Scope 1, 2, and 3 emissions analysis: Understand your greenhouse gas (GHG) emissions across your value chain to set meaningful decarbonisation targets. This includes direct emissions (Scope 1), emissions from purchased energy (Scope 2), and wider supply chain emissions (Scope 3).
Ben Williamson, Head of Business Development, explains how Unipart’s EI. Energy Control System can enhance this process: “By automating energy data capture and integrating with ESG dashboards, EI. removes the need for reactive meter readings or manual spreadsheet calculations. Businesses gain a live, accurate view of energy-related emissions, enabling faster action to reduce costs and improve environmental performance across operations and the supply chain.”
3. Setting SMART goals
Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals helps warehouse teams focus on impactful actions. Examples include reducing energy use by a specific percentage, achieving zero waste to landfill, or upgrading to low-carbon equipment.
4. Engaging your team
People are central to achieving sustainability ambitions. Involving employees at all levels, from the warehouse floor to management, builds awareness and ownership of environmental goals. This can include providing sustainability training, communicating targets, and empowering individuals to suggest and implement improvements. Engaged employees are more likely to support change and contribute to a culture of continuous improvement.
Actionable strategies
Once you have a clear understanding of your current situation, you can apply practical strategies to reduce your environmental impact. Every improvement, from energy efficiency to water use, contributes to a more sustainable warehouse operation.
Energy efficiency
Improving energy efficiency is often the fastest and most cost-effective way to reduce emissions.
- Lighting: Switch to LED lighting, which uses up to 80% less energy, and integrate smart controls to further reduce energy consumption.
- HVAC: Optimising heating, ventilation, and air conditioning systems and improving insulation helps save energy. Use smart controls and efficient fans to reduce costs and carbon emissions.
- Equipment: Use energy-efficient electric forklifts with eco-modes and perform regular maintenance to cut emissions and long-term costs.
- Renewable energy: Install solar panels or switch to certified UK renewable tariffs to reduce energy costs and your carbon footprint.
These measures, when combined with real-time monitoring and data-driven insights, can deliver significant, tangible results in a warehouse setting.
At a UK-based returns logistics centre, deploying the EI. allowed the site to gain real-time visibility across HVAC and heating zones. By identifying overnight energy waste and implementing AI-guided corrective actions, the facility reduced heating energy consumption by 87%, achieved £16,693 in annual savings, and significantly cut Scope 2 carbon emissions, while fostering a culture of energy accountability among staff. This demonstrates how combining these energy efficiency measures with the right technology can quickly deliver measurable savings, cut emissions, and improve operational performance.
Waste reduction and management
Reducing waste supports a circular economy, cutting costs and keeping materials in use for longer.
- Reduce: Minimise packaging through right-sizing and lightweighting. Digitise paper processes and collaborate with suppliers to adopt returnable transit packaging.
- Reuse: Prioritise durable, reusable pallets and crates. Extend the life of materials and equipment through scheduled maintenance and refurbishment.
- Recycle: Establish clearly labelled collection points for materials like cardboard, plastic, and metals. Work with reputable waste contractors who provide auditable data on recycling rates.
- Responsible disposal: Ensure hazardous waste and WEEE (waste electrical and electronic equipment) are managed in compliance with UK regulations.
A real-world example of circular economy in action is our partnership with a leading media and entertainment company. Jen Hunt, Sustainability Director explains: “By embedding the Rs into operations, from rethinking how processes work, redesigning packaging, and reducing and reusing every component in the supply chain to implementing robust recycling processes and more, the company achieved a 99% recycling rate and refurbished one million devices annually. In addition, 127 tonnes of single-use plastic were eliminated, 610 tonnes of CO₂ were cut from distribution, and £500,000 was saved over two years.”
Water conservation
Reducing water use is often overlooked but offers significant benefits. Targeted measures can help facilities cut costs and conserve resources.
- Auditing: Audit water use across the site, focusing on wash bays, welfare facilities, and landscaping.
- Efficiency measures: Install low-flow toilets, waterless urinals, and sensor taps to cut water use.
- Rainwater harvesting: Capture rainwater from large roofs for non-potable use to reduce reliance on mains water.
- Leak detection: Leaks can waste up to 5,500 litres of water per year. Use smart meters and conduct regular checks to detect leaks early and save water and money.
Sustainable logistics
Sustainable warehousing decisions can significantly impact emissions across the wider supply chain.
- Layout: An efficient sustainable warehouse design reduces unnecessary movement of materials handling equipment, lowering energy use and improving productivity.
- Route optimisation: Use smart planning tools and load configuration techniques to reduce mileage, emissions, and cost.
- Sustainable transport: Transition to electric vehicles (EVs) or alternative fuels. An EV can save around 1.5 million grams of CO₂ per year.
- Collaborative partnerships: Work with hauliers and third-party logistics providers (3PLs) who share sustainability commitments and invest in cleaner technologies.
Technology and innovation
Innovative technologies are key to building a smarter, eco-friendly operation. James Simester, Technology Director, highlights how a combination of tools can drive more sustainable warehouse performance.
- Digital twins: Creating digital replicas of your operations enables simulation and planning without disrupting the live environment.
- Automation and robotics: Automated systems reduce manual handling, cut energy use, and boost consistency.
- Sensors and IoT: Real-time monitoring of lighting, HVAC, and equipment energy usage allows for dynamic control, reducing waste.
- Data Science and AI: Advanced algorithms can optimise warehouse workflows, resource allocation, and scheduling, while AI and analytics track metrics such as energy use per order or carbon per shipment. This enables businesses to target improvements and detect inefficiencies early.
- WMS: A Warehouse Management System optimises inventory, picking, and replenishment processes, helping reduce waste, improve accuracy, and streamline operations.
Unipart’s Digital Enterprise System (UDES) takes this further by providing real-time visibility and control, helping clients reduce stock waste, optimise energy use, and improve efficiency. With mobile interfaces, cloud scalability, barcode scanning, and full traceability, UDES enables warehouses to work faster, more accurately, and continuously improve processes.
“UDES provides our clients with actionable insights that make warehouse operations smarter and more sustainable,” says James. “It helps reduce waste, optimise energy use, and continuously improve performance.”
Ensuring long-term success
Sustainability is an ongoing journey that requires embedding practices into daily operations, engaging people, and staying ahead of changing regulations.
Addressing initial cost concerns
While upfront costs can be a barrier, many sustainable warehousing initiatives offer long-term savings. Ben adds, “When you can see exactly where energy is being wasted and what changes will deliver the quickest ROI, it’s far easier to justify the spend and keep momentum going. EI. gives that clarity, turning data into decisions that stick.”
UK government grants, tax incentives, and sustainable financing options can also help fund implementation. Starting with high-impact, low-cost actions enables early wins and builds confidence.
Building a pro-sustainability culture
Embedding sustainability in warehouse operations relies as much on people as on technology. Clear, consistent communication helps explain the ‘why’ behind initiatives to all stakeholders, from leadership to the shop floor, fostering a shared sense of purpose and trust, which drives engagement.
Chris notes, “Providing thorough training and ongoing support ensures smooth adoption of new processes aligned with sustainability goals, maximising benefits such as waste reduction and energy efficiency.” Recognising and celebrating successes, whether emissions reductions or improved compliance, maintains momentum and reinforces a culture of continuous improvement across the business.
A similar approach has already delivered a significant impact in aerospace manufacturing. Unipart partnered with a leading aerospace company to conduct a Life Cycle Assessment (LCA), helping them understand the environmental impact of their production processes. By implementing targeted mitigation strategies for carbon reduction, the company could have achieved a £2-3 million inventory reduction per supplier, £20-50k in annual energy savings, and up to a 30% improvement in operational excellence, as well as improved production capacity, efficiency, and use of space.
Chris says, “The same principle applies in warehousing. When sustainability is embedded into day-to-day operations, it not only strengthens compliance but also drives long-term performance and resilience.”
Staying ahead of regulations and best practices
To remain compliant with evolving UK environmental regulations like the new Simpler Recycling rules, warehousing leaders should proactively consult government guidance and industry experts. Staying ahead of these changes reduces compliance risk, builds trust with stakeholders, and provides a competitive advantage.
Measuring, reporting, and communicating
To drive real change, sustainability efforts must be measurable, transparent, and well-communicated.
- Tracking KPIs: Monitoring Key Performance Indicators (KPIs) like energy use and CO₂ reductions allows teams to focus on actions with tangible impact.
- Sustainability reporting: Transparent reporting is essential for guiding internal strategy, identifying improvement opportunities, and keeping teams focused on high-impact initiatives. It also demonstrates commitment to customers, investors, and regulators, aligns with SECR and ESG frameworks, and strengthens credibility.
- Communicating sustainability credentials: Effectively sharing your sustainable warehousing journey and achievements strengthens your reputation, attracts talent, and fosters a culture of continuous improvement.
The future of sustainable warehousing
Sustainable warehousing is no longer about ticking boxes. It is about shaping operations that are resilient, efficient, and prepared for the future. By reducing environmental impact, improving processes, and enhancing credibility, organisations can create meaningful value for customers, employees, and investors.
The impact extends beyond individual sites. Sustainable warehousing strengthens the wider UK supply chain and supports national net-zero goals. Early adoption helps organisations manage risk and sets a benchmark in a market where sustainability increasingly influences competitiveness.
For business leaders, the message is clear. Acting now allows organisations to embed resilience, encourage innovation, and support long-term growth. With a strategic approach, sustainable warehousing becomes more than a set of practices, it becomes a cornerstone of future-ready operations.
Unipart works with organisations to support this journey, through energy optimisation, circular economy initiatives, and practical expertise that turns sustainability goals into tangible outcomes. Together, businesses can develop warehousing operations that are efficient, low-impact, and prepared for what’s ahead.