Transforming Warehouses Towards a Sustainable Future

Abstract

Climate change is a global problem, and CO2 emissions are the primary cause of rising temperatures. Many companies, including our capstone sponsor Maersk, have committed to reaching net zero emissions by setting decarbonization targets. In this project, our goal was to identify specific actions that could be taken at the warehouse level to reduce greenhouse gas emissions and help companies achieve their decarbonization goals. Our approach involved identifying sources of emissions, shortlisting technologies that could be adapted based on their applicability to the operations of Maersk warehousing and distribution subsidiary companies in the United States and developing a methodology to evaluate each solution's key performance indicators: payback and environmental impact. The result was a set of recommendations prioritizing each solution's implementation and scaling to other facilities. Our analysis revealed that some solutions, such as solar energy, could reduce Scope 2 carbon emissions by 100% due to eliminating supply of electricity from the grid while also decreasing electricity costs by 39%. Finally, to evaluate the different sustainable solutions in an integrated way, we developed a framework that identifies the key factors and patterns affecting the attractiveness and further implementation of each solution. Our findings suggest that combining initiatives such as the electrification of moving assets with renewable-energy generation systems can significantly improve the payback period further, reducing it by almost 9%.