What do you want first, the good news or the bad news? Blogs aren’t really a call and response medium, so we’ll have to decide for you. Let’s do… good news!
The good news
Two of our biggest warehouses are in the process of installing solar panels on their roof! While our goal is that our warehouses be totally net neutral when it comes to the energy they generate and use on site, this is our first step in producing as much energy as possible via solar. We’re thrilled to be partnering with these logistics innovators to break the industry’s reliance on non-renewables.
The bad news
It’s pretty rare to have warehouses powered by solar. It’s unfortunate – supply chains, or the how stuff gets made and distributed, accounts for a lion share of a product’s carbon footprint.
Supply chains use resources at a large scale – huge warehouses that require light and temperature control, making deliveries all around the world. In 2016, data shows greenhouse gas emissions from consumer packaged goods (a fancy way of saying the things people buy) are responsible for roughly 33 gigatons of CO2. Gigaton! When you start talking in numbers that sound fake, you know it’s bad.
We’ve been actively working to reduce our carbon footprint as a company (our shipping is now carbon neutral!), so addressing our warehouses seemed like the next logical step.
“We should all be adopting more carbon conscious practices. If we can provide industrial solar solutions here in the UK where the weather is not perfect, greener solutions can be adopted anywhere.”
How it all happened
First, we had to figure out how much energy our warehouses were using. We gathered data and shared it with a solar provider that sent over quotes for the cost of the panels, installation and upkeep.
We were shocked by how much economic sense it all made. It’s an upfront cost, yes, but the solar panels last for over 20 years. Using Melbourne as an example, the average savings on electricity pays for the panels after 4.5 years and, after that, they are essentially producing electricity for free.
We immediately offered to pay for the panels in our Melbourne warehouse and have our partners pay us back of the energy savings over the first few years. But when we told them about our research, they were totally on board and decided to pay for it themselves.
We also have some amazing warehouse partners in the UK, who simultaneously had done their own research as part of their carbon conscious solutions. They believe in us and our mission and delivered a solution for our UK warehouse to us too.
This isn’t to say that it’s been a totally smooth process. Permits, landlords, management firms – there are a lot of moving parts to make this happen. As we continue on our solar journey, we’re starting to compile our learnings in the hope that we can share with other businesses looking to make this change.
“We’re hoping that if we can overcome any challenges, we’ll know enough to share with others how they too can get solar on their industrial rooftop”
How we make this the norm
Supply chains are responsible for a disproportionately large share of the world's carbon emissions – being strategic about the energy used in the making and delivery of products and looking for ways to eliminate or reduce energy usage is a huge opportunity.
It’s also a huge economic opportunity! The payback on installing and using renewable energy are better than ever. The “Aha” in our own small journey was that installing solar on industrial rooftops made total commercial sense, even in cloudy places like the UK where we were surprised by how much energy could be generated.
We spoke to Luke Fermor, Head of Fulfilment for Woodland Group, our UK warehousing partner and the one spearheading all the sustainable development across the Woodland fulfilment sites about how to encourage this shift amongst other warehouses.
What do you think it will take for this to be standard among warehouses?
It’s a team effort between the logistics industry, brands and consumers. There need to be thought leaders in our industry who say, "We are providing carbon-conscious solutions as part of our core offering,” and encourage brands to see this is an accessible, viable solution to want.
We should be explaining through content, through good data, why we're doing it and how it's helping– not only the environment but the business.
It also takes the right client. You need a company that will invest their own time and energy into finding solutions and working with partners to make a difference. Brands like Who Gives A Crap are actually, truly, authentically looking into solutions and putting their money where their mouth is.
We've seen a lot of companies that are interested in the topic, but they're not necessarily all charging ahead...yet. There’s still more education and a wider adoption of greener practices needed. It’s great to join Who Gives A Crap in their aim to make the supply chain greener. We are proud to be able to be part of a change in awareness and encourage more brands and industry partners to engage in this.