India’s warehousing sector goes green as MNCs demand sustainable logistics spaces

As companies aim to reduce supply chain emissions, green-certified warehouses are becoming essential. Consequently, India’s green warehousing stock is projected to quadruple by 2030, driven by the demand for energy-efficient assets and Net Zero strategies. The green warehousing sector in India is poised for exponential growth, with certified sustainable warehouse space expected to quadruple from current levels to approximately 270 million sq. ft by 2030, according to a report released by global real estate services company JLL on Wednesday.(16 July) India’s warehousing industry is witnessing a green transformation, driven not just by developers and investors but increasingly by multinational corporate occupiers whose global sustainability mandates are reshaping the market...“Sustainability features such as green certifications, energy-efficient architecture, and advanced water management systems are no longer optional—they’re essential for attracting and retaining high-quality, long-term occupiers. Global brands with ambitious ESG targets now prioritize assets that demonstrate strong environmental performance throughout their lifecycle, beyond mere location and cost.” said Mehul Shah, CEO, India of Singapore-headquartered logistics platform LO‑GOI Group.      The share of green-certified space is expected to rise substantially as institutional players prioritize globally recognized standards like LEED, IGBC, and GRIHA to attract and retain marquee tenants…

Institutional players have understood that to have Multi-National Companies (MNCs) as tenants, their warehouses need to be Green and it is non-negotiable. “India’s green warehousing transformation is driven not only by institutional investor-backed developers but also by corporate occupiers or tenants. The Net Zero Goals of most corporations are leading them to choose warehouses that are Green Certified,” said Yogesh Shevade, head – industrial & logistics, India, JLL…Institutional investors have responded by ramping up supply of certified assets to meet this evolving demand. Institutional-grade warehousing space has already tripled to 90 million sq ft in 2024 from 28 million sq ft in 2019. Of this, around 72% or 65 million sq ft is either green-certified or in the process of obtaining certification. The push towards green warehousing is also being supported by robust supply pipelines. The data shows a visible pipeline of around 260 million sq ft of institutional-grade supply by 2030, of which 80% is expected to be green-compliant. This reflects a fundamental shift in how warehousing is being developed, marketed, and occupied in India.

Post-pandemic, institutional investment in warehousing has doubled, with green certification increasingly seen as non-negotiable for securing leases with MNC tenants.

With India’s total warehousing stock projected to reach 885 million sq ft by 2030, and with institutional players contributing significantly to the green-certified share, the sector is well on its way to aligning with global sustainability benchmarks while future-proofing assets against evolving occupier expectations.