Burges Salmon has launched a new report in which it asks industry experts about the major energy challenges being faced by industrial and logistics developers, investors and occupiers, in the context of ensuring energy resilience and achieving the UK Government’s Net Zero targets.

Industrial and logistics buildings are playing a key role in the running of the post-pandemic economy. The boom in ecommerce has seen distribution centres become the backbone of the economy, acting as intermediaries in the supply chain. This extra demand has brought about increasing pressures on energy supply.

Due to their sheer size, buildings can often expend huge amounts of energy due to heating, lighting and general operation. Whilst previously, energy costs formed a low proportion of overall running costs and energy provenance was less of a concern, spiralling prices and mounting public awareness of environmental issues has led to increased worry about energy security, affordability and sustainability. For continued success, the industrial and logistics sector must manage these concerns, whilst futureproofing its assets to meet tenant demand and achieve the UK’s 2050 Net Zero targets.

Burges Salmon’s report addresses the challenges faced by the sector and also uncovers the opportunities in onsite generation and how developers and investors can adapt their strategies to benefit from this. The insights from the firm’s interviewees show that while there is no magic formula to enable energy resilience, onsite generation can play a key part in futureproofing such sites, so that they meet the expectations of future tenants and increasing energy regulation.