Prologis, the global leader in logistics real estate, today announced its commitment to achieve net zero emissions across its value chain by 2040. The company also released its annual environmental, social and governance (ESG) performance report.
“Prologis has always been ambitious in our sustainability efforts, and our new net zero goal is no exception,” said Prologis Co-founder, CEO and Chairman Hamid R. Moghadam. “We’re proud of the support we’re providing our customers in achieving their sustainability goals. Prologis continues to be an industry leader in finding innovative ways to decarbonize our operations.”
The company has been carbon neutral for its scope 1 and 2 emissions since 2019. Its 2040 goal encompasses scope 1, 2 and 3 emissions and includes several interim targets to support its progress. These include:
- 1 GW of solar generation capacity (supported by storage) by 2025
- Carbon neutral construction by 2025
- Net zero for operations by 2030
The company has submitted a letter of commitment regarding its net zero goal to the Science Based Targets initiative (SBTi) for validation. In addition, Prologis has committed to partnering with leading external groups to drive decarbonization across the industry value chain, including sustainable building materials innovation.
New energy investments support net zero progress
Prologis works closely with its customers to understand their environmental goals and programs. The company has been investing in energy-related lines of business, including EV charging and onsite solar, as additional value-add services for its customers. Prologis currently has approximately 200 EV charging stations and 325 MW of rooftop solar (as of April 2022).
“We are putting our 1 billion square foot portfolio to good use for our customers every day,” said Prologis Chief Energy and Sustainability Officer Susan Uthayakumar. “Prologis is working with our customers to develop and implement advanced energy and climate solutions. These actions will enable us to deliver on our commitment to net zero ten years ahead of the target set by the Paris Accord.”
Leading the industry toward a cleaner future
In its 2021-22 ESG report, the company outlines its progress toward its environmental, social and governance goals. Highlights include:
- Became the first logistics REIT with an approved SBTi emissions reduction target in 2018
- Issued 16 green bonds between 2018-2021, and its global line of credit and additional lines of credit are linked to sustainability metrics
- Achieved 325 MW of solar generation capacity as of April 30, 2022
- Installed LED lighting across 57% of the company’s portfolio
- Trained 13,000 people in logistics through the Prologis Community Workforce Initiative since 2018 (goal: train 25,000 people by 2025)
- Achieved employee engagement score of 88% (12 points above financial services sector average)
- Separated ESG metrics into a standalone category on the company’s bonus scorecard. ESG now represents 10% of the bonus scorecard, a percentage similar to that of other core business functions
- Invested $150 million in nearly 40 companies through Prologis Ventures since 2016, including those focused on innovation in ESG and sustainability. Investments include technology to reduce food waste in grocery delivery systems, software to calculate GHG emissions associated with third-party shipments, and solutions for workforce safety and productivity
The full report and an executive summary are available at https://prolo.gs/esg2022.