Goals, Performance & Data
Aligned with Business and Customers
Prologis’ ESG program is guided by ambitious goals and targets that advance our business imperative. Our goals demonstrate our industry leadership to customers and investors by aligning with them in pursuit of initiatives, such as the UN Sustainable Development Goals (SDGs), which are committed to overcoming global ESG challenges. Prologis’ ESG goals promote our business strategy by improving the operational efficiency of our buildings, leading to reduced costs through sustainably certified buildings, efficient lighting and cool roofs. Our solar energy program has been recognized continuously by the Solar Energy Industries Association (SEIA), most recently as third among all U.S. companies for installed solar capacity. Each year, we continue to grow our reputation as a renewable energy leader as we approach our 200-megawatt-by-2020 goal. Prologis has a long history of engaging with local communities, strengthening our partnerships in markets key to our business. Finally, within our organization we ensure that we maintain a culture of strong governance by engaging with 100 percent of employees globally through such initiatives as our annual ethics training.
Prologis ESG Goals
Aligned with United Nations Sustainability Development Goals (SDGs)
Science Based Targets
Implementing a new Science Based Target
In 2018, Prologis became the first logistics real estate company with an approved Science Based Target (SBT). After exceeding our original GHG reduction goal four years early in 2016, we committed to leading the industry by setting updated, impactful goals. SBTs are GHG reduction goals approved by SBTi, an internationally recognized consortium that applies methodology developed and accepted by the scientific community. Setting SBTs aligns our interests with those of our customers. As of year-end 2018, nearly 40 percent of our top 25 customers had committed to setting their own SBTs. Our SBT will also drive greater operational efficiency throughout our business as we pursue advanced technologies and other means to reduce energy and minimize our environmental impact to meet our SBT goals.
Our SBT goal is ambitious yet attainable: Prologis commits to reduce absolute scope 1 and 2 GHG emissions 21 percent by 2025 and 56 percent by 2040 from a 2016 base-year. Prologis also commits to reduce absolute scope 3 GHG emissions 15 percent by 2025 and 40 percent by 2040 from a 2016 base-year.
- Science Based Targets (SBTs) are GHG emissions reduction goals that align with current scientific understanding of climate change to keep global warming below 2 degrees Celsius.
- Examples of Downstream Leased Assets include the emissions from our customers using energy within our portfolio properties. This category is applicable to lessors (i.e., companies that receive payments from lessees).
We have already begun taking actions to meet these targets:
- Prologis headquarters, offices and properties will continue to incorporate new technologies and building design features to increase efficiency.
- Prologis will continue to work with customers to help them minimize their impacts by engaging in best practices and technologies, offering programs such as LightSmart LED retrofits and installing rooftop solar energy panels.
- The company’s ESG team will continue to engage with Prologis employees globally on long-term environmental stewardship initiatives and GHG-reduction strategies.
Our emission reduction strategies can also serve as a resource for our customers who are looking to reduce the emissions of their own supply chains. Our many avenues of customer engagement, including CSAC, are used to discuss global goals and strengthen business partnerships.
Carbon Footprint Reporting
Carbon footprint reporting is critical to measure our performance in reducing emissions year over year. Our stakeholders, from customers to investors, typically expect access to our carbon emissions data.
Since 2006, Prologis has reported our annual corporate GHG inventory to CDP, a voluntary leading registry that helps businesses measure, track and report GHG emissions. Understanding the impact our operations have on climate change has led us to set, pursue and achieve significant climate-related goals. In 2016, we exceeded our 2020 goal of a 20 percent reduction in Scope 1 and 2 GHG emissions from a 2011 basis by 2 percent. In 2017, we delivered additional reductions in emissions resulting in a total reduction of 27 percent in Scope 1 and 2 GHG emissions from a 2011 basis. In 2018, Prologis set a Science Based Target (SBT) that covers scope 1, 2, and 3 emissions.
SBTs align with the latest climate science to reduce GHG emissions to levels that could keep the global temperature increase, compared to a pre-industrial baseline, below 2 degrees Celsius. They give companies a pathway to sustainable growth by specifying how much and how quickly to reduce their GHG emissions. We are using science-based targets to ensure we’re reducing our impacts in a measured and effective manner.
To measure our progress, we calculate annual GHG emissions for our business as defined by the GHG Protocol:
- Scope 1: Direct emissions from sources owned or controlled by Prologis
- Scope 2: Indirect emissions associated with consumption of purchased electricity and natural gas
- Scope 3: All other indirect emissions relevant to our business not included in Scope 2
To meet our new goal, we will continue to identify and implement sustainable business practices, involve employees in environmental stewardship initiatives and emissions-reduction strategies, including lighting upgrades, occupancy sensors, insulation, powering down unused equipment and optimizing office temperatures. In addition, we employ carbon offsets and renewable energy credits (RECs). Carbon offsets invest in projects, such as landfill gas to energy, anaerobic digestion or fuel switching that would not move forward without such financing. RECs are a mechanism for purchasing renewable energy that is either added to or pulled from the grid.
In 2018, we offset 100 percent of our Scope 1 GHG emissions with carbon offsets from the JB Hunt Intermodal carbon offset project, which is industry relevant because it works to improve the efficiency of intermodal freight transport. We purchased RECs through our partner, Schneider Electric, to offset 86 percent of our 2018 purchased electricity from locally sourced projects in each region where our corporate offices are located.
For the past 4 years, we have partnered with Anthesis Mosaic to calculate and track our carbon footprint data. In 2018 Prologis, calculated Greenhouse Gas (GHG) emissions using the new methodology outlined in our approved Science Based Target. The inclusion of multiple scope 3 categories prompted a recalculation of 2016 and 2017 data, to be consistent with 2018 data. In 2018, Prologis scope 1 and 2 emissions decreased one percent since the 2016 baseline, and decreased eight percent since 2017. Scope 3 emissions increased slightly by two percent since the 2016 baseline.
We report our operational carbon footprint to CDP, DJSI and GRESB, and our Scope 1, 2 and 3 emissions are verified independently by Lloyd’s Register Quality Assurance. Please see our External Assurance Statement and Verification Statement for more detail.
2018 Global Portfolio Data
Prologis reported 2018 energy data for 3,658 of our global assets, including 504 properties for which we had consistent year over year information. Energy use increased by 1.56 percent, due to Prologis' acquisition of DCT in August 2018 (Data extracted May 15th, 2019 from Measurabl).