When Automation Meets Energy Transition: Financing the Future of Sustainable Logistics

Logistics and supply‐chain companies are under relentless pressure to meet sustainability focused regulations. Stakeholders – from investors and regulators to customers and tenants – demand rapid decarbonisation and improved sustainability practices. For example, a recent survey found that 94 percent of C-suite executives feel pressure to prioritise environmental, social and governance (ESG) initiatives.

Similarly, a JLL study reports two-thirds of top industrial and logistics occupiers have committed to lowering emissions through energy upgrades, EV fleets, and renewable energy procurement. By combining energy-transition measures (solar, storage and charging) with intralogistics upgrades (automation, racking and telematics), companies can reduce carbon outputs and operating costs simultaneously.

In practice, this means warehouse, transport, and last-mile operations must radically reduce carbon outputs while remaining profitable.

Scope 1, 2, & 3 Emissions – What Logistics Operators Need to Know

Why it Matters for Logistics:

• Some large retailers like Tesco explicitly include “third-party logistics” as a Scope 3 category and asks all carrier partners to disclose emissions data in order to qualify for its supplier programmes.
• Walmart’s Project Gigaton engages suppliers – including transport firms – to cut a gigaton of greenhouse gases from its global value chain by 2030, with Scope 3 at the core of its ambitions.

To stay competitive, carriers and third-party logistics (3PLs) must measure emissions across all three scopes, set reduction targets, and adopt low-carbon solutions – ranging from fuel-efficient routing to electrified fleets and renewably powered depots.

Marco Wagner, Global Head of Intralogistics

Upgrading warehouse infrastructure

Today, warehouse operators are retrofitting and rebuilding facilities with sustainability front of mind. Many are modernizing existing buildings and planning new greenfield sites with energy efficiency as a goal.

Companies are installing LED lighting, solar panels, and better insulation to meet sustainability objectives and boost performance, while new warehouses are often designed to stringent environmental standards from the ground up.

In fact, research shows almost two-thirds of logistics occupiers tie future space needs to carbon reduction targets, creating a demand for energy-smart buildings to drive operational excellence. Upgrading a warehouse with rooftop solar photovoltaic (PV), LED lighting, and smart heating, ventilation, and air conditioning (HVAC) can significantly cut energy use and emissions, helping tenants comply with tightening building codes and ESG mandates without sacrificing space or functionality.

For instance, at Westbrook Industrial in Warrington, England, a 21-kW rooftop solar PV array now supplies over 40 percent of the site’s annual electricity demand – cutting grid consumption and CO₂ emissions substantially. Industry data from JLL further shows that retrofitting a 100,000 square foot distribution centre with solar panels and LED lighting can reduce overall energy costs by 10–35 percent, equating to US $22,000–78,000 in annual savings for warehouse and distribution properties.

Automation and Energy Efficiency in Warehousing

Automation technologies themselves can contribute to a leaner carbon footprint. By optimizing processes and resources, systems like robotics, automated storage/retrieval systems (AS/RS), and smart racking minimise idle time, eliminate redundant movement, and reduce waste in distribution centres.

Studies find that industrial robots and high-density automated storage systems can significantly minimize energy consumption and reduces waste because they cut out extraneous travel and keep operations tight. For example, upgrading conveyor drives to high-efficiency motors can reduce kilowatt usage by up to twenty five percent, while warehouse execution software synchronizes picking and packing to avoid bottlenecks and idle equipment. Sensor-driven controls also pay dividends: automated forklifts, automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) operate only as needed, and smart LED lighting adjusts illumination to activity levels, preventing wasted power.

Energy Transition Solutions for Logistics

Alongside automation, logistics operators are rapidly deploying renewable energy infrastructure. Rooftop solar PV, battery energy storage systems, and microgrids are becoming integral to warehousing. These installations can generate or store onsite renewable power to offset grid use. At the same time, companies are electrifying their fleets and installing EV charging at depots and last-mile hubs.

Industry research confirms occupiers are prioritizing emission cuts through energy upgrades, fleet electrification, and renewable energy procurement. By charging electric trucks with solar energy, or grid power at off-peak times, businesses shift fuel costs from transportation budgets into facility budgets – effectively making energy a controllable operational cost.

In fact, McKinsey projects a sixfold increase in commercial electric vehicle (EV) fleets by 2030, with charging infrastructure capitalising fuel savings. Moreover, onsite renewable power can generate revenue: some owners package solar and storage under energy as a service model, monetizing the power through leaseback arrangements.

Hiten Sonpal, Global Head of Business development, Energy Transition

Integrating Automation and Energy Investments

When you align automation upgrades with on-site clean energy, you unlock far greater operational and sustainability benefits than by pursuing each in isolation. Bundling intralogistics equipment – robotics, racking, and LED lighting – with renewable power systems maximises carbon reductions across both Scope 2 and Scope 3 emissions, streamlining capital planning and ESG reporting.

Rather than financing each asset separately, companies can combine them into a single, blended solution. One repayment schedule and one finance partner mean a consolidated view of cost, carbon savings, and performance, simplifying the business case and accelerating implementation.

Innovative Financing Models

New funding structures are emerging to unlock these capital-intensive, high-ambition projects. Traditional bank loans may not fit the bill for fast-moving tech upgrades or energy builds. Instead, solutions like operating leases and project finance help companies preserve capital and smooth cash flow by reducing upfront outlay. In many cases, lease payments can be treated as operating expenses, providing budget flexibility.

Tailored leases can include all project elements – not just hardware but also software, integration, training, and installation – so soft costs aren’t excluded. Companies can even align payments with seasonal revenues (paying more during busy months and less during quiet periods), which eases cashflow strain.

In addition, blended finance approaches combine public incentives with private capital. Governments routinely offer subsidies, tax credits, or value added tax (VAT) deferrals for green assets (for instance, reduced VAT on solar installations or grants for EV chargers). By stacking these incentives with bespoke finance, a business can effectively lower the net cost of deployment.

Similarly, emerging models like Energy-as-a-Service and pay-per-use allow companies to access the latest tech without owning it, further reducing financial risk. In all cases, the goal is scalability and flexibility: to enable multi-phase upgrades and cross-border projects that traditional single-asset loans might not support.

Strategic Partnerships and Tailored Finance Solutions

Working with the right finance partner can transform complex projects into seamless upgrades. By aligning expertise in intralogistics and energy transition, a single provider can understand the operational realities of warehousing alongside the technical nuances of renewables – simplifying planning and execution for customers.

Global reach and local adaptability are equally important. Whether navigating EU sustainability standards, tapping into national energy-transition subsidies, or meeting regional green-build codes, DLL – with a presence in more than 25 countries – can scale projects and optimize incentives across borders.

The real benefit comes when warehouse automation equipment and energy transition technology are financed under one umbrella. Customers avoid juggling multiple contracts, timelines, and repayment schedules; instead, they gain a consolidated solution that matches their cashflow patterns and ESG targets.

DLL’s blended finance solutions cover everything, from renewable energy systems and EV chargers to advanced automation and intralogistics equipment, all in one bespoke package. By aligning asset lifecycles and payback periods, DLL ensures maximum ROI for the combined project and removes the complexity of managing multiple loans or partners. This unified approach lets you electrify, automate, and decarbonize your supply chain swiftly and confidently.

Rather than simply providing capital, DLL’s integrated teams collaborate with manufacturers, system integrators, and sustainability consultants to blend leases, loans, and public incentives into the ideal package. This approach lets logistics operators focus on growth and service excellence, confident that financing complexity is handled on their behalf.

By treating automation and clean-energy investments as complementary, businesses unlock greater returns and faster carbon reductions. A tailored finance structure from DLL can align repayments with the project’s expected energy savings and efficiency gains to reflect realised savings, helping customers begin to see positive cash-flow impacts from day one after installation.

Ready to electrify, automate and decarbonise your logistics operations? Let’s build the future together. Contact DLL today for a partner who brings sector insight, international scale, and flexible funding models to your sustainability roadmap.

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