In more detail
During the webinar, our panel of legal experts from across EMEA examined a range of themes that can influence the strategic approach that may be taken to sustainability in warehousing and logistics projects. Our esteemed speakers from Prologis lent a practical flavor, sharing a keynote speech and case study on a warehouse retrofitting project.
Decarbonization strategy
Sara Jane Viereck, Vice President, ESG Europe at Prologis, explained the fundamentals of a decarbonization strategy, noting that there is no one-size-fits-all approach that will be effective across a portfolio of assets. Decarbonization must be tailored to the business to ensure success, steered by business fundamentals to be effectively incorporated into investment strategy. It must also be considered at every step of investment, from day one to exit. However, buy-in across the workforce is essential: in order to achieve successful outcomes, people must be empowered to effect change. Local knowledge and cultural context is important, as is ongoing learning and consistent feedback.
Impact of EU regulation
Daniel Bork, Partner in Baker McKenzie’s Dusseldorf office, explained and demystified the current regulatory position in the EU. He gave an overview of the EU Green Deal, which aims to achieve climate neutrality by 2050 through comprehensive sustainability measures. Binding targets require at least a 55% reduction in greenhouse gas emissions by 2030 across EU sectors.
The EU Green Deal is rapidly shaping the real estate industry. Sustainability is no longer optional. New legislation addresses energy efficiency, carbon emissions, sustainable construction and supply chain transparency:
- Fit for 55 Package: Introduces new emissions trading systems for buildings and transport, stricter CO2 standards, and extended carbon pricing, impacting logistics costs.
- EU Taxonomy Regulation: Defines environmentally sustainable economic activities, guiding investments and setting strict criteria for construction and renovation.
- Corporate Sustainability Reporting Directive (CSRD): Expands ESG reporting requirements for companies, including logistics developers and investors, with detailed disclosures on energy use, emissions, climate risks, and employee safety.
- Energy Performance of Buildings Directive (EPBD): Requires all new buildings in the EU to be zero-emission by 2030 and sets minimum energy performance standards for existing buildings, targeting upgrades for older assets.
The interplay of Fit for 55, the Taxonomy, CSRD, and EPBD forces transparency and is expected to lead to improved sustainability in the warehousing and logistics sector. To be compliant, investment costs are likely to increase, but conversely operating costs will decrease and assets will become more resilient.
Relevance of green building certifications
Ben Farnell, Partner in Baker McKenzie’s London office, gave an overview of green building certifications and their transactional relevance. He examined both corporate and asset-level expectations, and how these might influence the requirement for, and importance of, green certifications for warehousing and logistics assets.
Ben reported on a survey of Baker McKenzie real estate lawyers across EMEA conducted in October 2025 which, although not representative of wider practice, gives a snapshot of practical experiences across EMEA. This found that BREEAM was the most commonly-seen certification across EMEA logistics transactions. Standardization cross-jurisdiction and cross-portfolio does not seem to be a priority. Certification is more important to investors and developers than to occupiers, and therefore, occupiers are often restricted from making alterations that impact certification. Certification is important for developers and investors, but other factors compete for occupiers’ attention.
Case study: Green refurbishment
Jose Ignacio Gomez, Director and Head of Development Spain at Prologis, and Jose Antonio Perez Breva, Partner in Baker McKenzie’s Barcelona office, closed the webinar by sharing a case study of the refurbishment of a Prologis property in the UK. This was a full refurbishment of a vacant unit, with upgraded lighting, electrification of Heating, Ventilation, and Air Conditioning (HVAC), solar photovoltaics (PV), electric vehicle (EV) charging, and smart metering. The Energy Performance Certificate (EPC) was upgraded to an A, with an estimated emissions reduction of more than 80%.
Recording
The webinar recording is available here. If you would like to discuss any of the topics raised in this webinar, please contact any of the speakers, or your usual Baker McKenzie contact.
