Engagement Through Customer Sustainability Advisory Council and Customer Advisory Board
Our partnerships with customers helps align our ESG strategy and enable our customers to achieve their own goals—both at the Customer Sustainability Advisory Council (CSAC) and our Customer Advisory Board (CAB). We engage in these forums to better understand our customers and how we can use our ESG program to better serve them, identify shared ESG goals, target specific projects or initiatives, and promote cross pollination of ideas and information sharing.
CSAC promotes open communication lines with key customers to help us use our programs, such as LightSmart and our Community Workforce Initiative, to best provide them with solutions they need. Through the CSAC’s quarterly meetings, the group has identified innovative technologies and ways to enhance building resilience, promote greater data gathering and address climate-related initiatives, such as Science Based Targets. For example, CSAC customers have shared their approaches for integrating the guidelines of the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD) requirements in CDP reporting, which has reinforced our own efforts around these frameworks to ensure alignment with customer needs.
Community Workforce Initiative
At Prologis, we use our scale to demonstrate our commitment to 5,100 customers across 19 countries. In 2018, we launched our Community Workforce Initiative (CWI) in several pilot markets in the U.S. The program emerged as the Prologis leadership team heard from our customers that the lack of a sufficient workforce was one of their greatest challenges. Customers are competing for limited workers in an expanding market pushing for rapid fulfillment of e-commerce purchases.
Leveraging our unique position as a leader in the logistics industry, we created CWI to connect our customers with our communities. We partner with community organizations to provide training, skills development and job placement with an aim to help our customers build a talent pipeline in the booming logistics field. We launched the program in Los Angeles in September of 2018 with EXP, a nonprofit workforce development organization. We extended the program in December to partner with Miami-Dade Public Schools, as well as the Quad County Urban League in Chicago, and will expand to a number of international and U.S. markets in 2019 and beyond.
CWI is a benefit to customers and our communities. As long-term owners of properties, we are long-term members of these communities. We have a vested business interest in being a good citizen and helping these communities thrive. Through CWI, we leverage our unique position as a leader in the logistics industry to connect our customers with our communities. Our CWI launch in Southern California exemplifies what these connections can do. At this event, participants seeking a career path heard directly from our customers about the possibilities and needs of the growing logistics industry. Our customers met participants who could fill their workforce needs. The mayor and other community leadership in attendance heard the needs of the local business community and imparted how CWI fit in their vision for growth. The power of these connections was so impactful that one of our customers doubled involvement in CWI on the spot. Participants have shared how impactful CWI has been on their lives, resulting in jobs with Prologis customers. Through CWI, we create opportunities that benefit all community stakeholders.
Creating opportunities for students to expand their skill capacity and broaden their base of knowledge is paramount to preparing them for success after graduation, and our partnership with Prologis will allow us to expand this important work.Aberto M. Carvalho, Miami-Dade County Superintendent of Schools
positioned for internships in Southern California through our CWI partnership with EXP
Graduated first class
from our Chicago CWI pilot program. Prepared by CWI with hands-on training and job-shadowing opportunities, Prologis CWI graduates have found jobs with our customers to start a new career path in logistics
to be reached through our Prologis Trade and Logistics Lab career development program launched in partnership with Miami-Dade County Public Schools
Global Volunteerism and Giving
CWI helped reinforce our long-standing commitment to community engagement, which also includes our Space for Good Program, IMPACT Day and employee volunteerism. Being a good neighbor in the communities where we operate is instrumental in providing the foundation for our customers to succeed.
Community engagement and volunteerism are key elements of our Social Responsibility program, which strengthens our connection with our stakeholders. It is important to our customers and investors that we reflect their values and, in turn, the values of their constituencies. Creating a workplace where employees are proud to volunteer for opportunities that Prologis sponsors is tightly bound in our strategy to be good partners in the communities in which we and our customers operate.
Our employees express pride and enthusiasm for the volunteer programs Prologis sponsors, including our annual IMPACT Day. On May 18, 2018, Prologis employees around the world engaged in the sixth annual IMPACT Day. More than 1,250 employees in all 72 offices and 19 countries contributed to their communities, making a difference in the lives of others. Through IMPACT Day, Prologis teamed up with 48 different organizations, donating more than 8,000 hours in support of human welfare, environmental and educational causes, including our global partnership with Habitat for Humanity.
Over the past five years, Prologis and the Prologis Foundation have donated nearly $13 million to nonprofit organizations focused on education, the environment and human welfare. Furthermore, the company and the Foundation have sponsored more than 50,000 volunteer hours for our employees over the past five years. In 2018 alone, Prologis and the Prologis Foundation donated more than $2.5 million to nonprofit organizations.
The Prologis Foundation also has a matching gift program to double employee contributions to 501(c)(3) nonprofit organizations, schools and universities, and the Dollars for Doers program that pairs employee donations of time with funds from the Prologis Foundation. In 2018, these programs were streamlined and built into a user-friendly online platform called Prologis Gives. In 2018, Prologis employees volunteered 10,543 hours in their local communities.
Space for Good
Prologis’ Space for Good program provides temporary rent-free space in our distribution facilities to provide disaster relief and help charitable organizations address seasonal and short-term needs—to the extent we have vacancies in a relevant market. Space for Good demonstrates Prologis’ commitment to corporate citizenship and willingness to form meaningful public/private partnerships in service to our communities. Over the past five years, Prologis has donated almost $5 million in in-kind rent through this program, with nearly $850,000 donated in 2018 to 15 nonprofit organizations.
The First WELL-Certified Logistics Facility
Given the tight labor market, our customers’ needs are evolving to focus on proximity to labor and facilities that accommodate employees. Our building features can help our customers by enhancing health and wellness. In 2018, we became the first logistics real estate company with a WELL-Certified facility at Prologis Park Tacoma, Washington. In 2019, our facility at Tilburg, the Netherlands was the first WELL Gold Certified building in the logistics real estate industry.
We coordinated with the International WELL Building Institute (IWBI) to help set the standard for WELL building certifications in logistics and distribution real estate. At Park Tacoma, eight murals were completed inside the building that were painted by a local artist, promoting a connection with the outdoors. Our customers have repeatedly told us how their employees enjoy the murals and walking trails.
Prologis Park Tacoma Building D—LEED Silver Certification and WELL Building Certification-Silver
- 35% estimated energy cost savings when modeled against base case
- 96% of construction waste diverted from landfill and significant use of local and recycled building materials
- 31% operational water use savings from water-conserving components
- Natural daylight coupled with energy-efficient lighting
- Outdoor walking trail and garden
Employees, the Builders of our Business
Prologis has valuable properties around the world, but our most valuable assets go home every night. They are our team of 1,617 employees, and they are the foundation of our success. Every employee at every level in every location plays a vital role in ensuring enduring value for our company. We set goals and objectives for sustainability at the corporate level, but it is the actions of each employee that bring these goals to life.
We demonstrate our commitment to our employees by being a responsible and supportive employer. As an equal opportunity employer, we uphold consistent and fair policies that respect cultural differences, recognize performance based on merit and reward team members for their contributions.
Inclusion and Diversity (I&D) – A Driver of Competitive Advantage
At Prologis, bonus metrics include achievement of the company’s Five Drivers of Competitive Advantage: Inclusion & Diversity (I&D), Customer Experience, Advanced Analytics, Essentials and Continuous Improvement. The Five Drivers convey to our employees, customers and investors the value Prologis brings to our real estate operations through our scale, global reach, customer relationships, brand, business processes and talented team. To drive I&D throughout the organization, we intergrated it as the centerpiece of our Five Driver bonus metric for all employees. I&D is at the center of initiatives that push our business forward because we believe an inclusive culture supports the free flow of ideas that helps us accomplish the other drivers. The Prologis compensation committee also continues its focus on ensuring equitable pay practices and reviews succession with an emphasis on I&D, while also overseeing other initiatives.
We also promote I&D across our business. Demonstrating our commitment, we hired a VP of HR and I&D in 2018 to focus on how to incorporate I&D throughout our business and to lead our efforts from commitments to actions. To drive I&D throughout the organization, we integrated it as the centerpiece of our Five Driver bonus metric for all employees. We also laid the groundwork for a global employee I&D survey. In addition to the survey, we have formed focus groups that are driving intra-company discussion, manifesting our commitment to embrace diversity of opinion across our company culture. Our chief executive officer and other members of our executive team also routinely visited offices around the globe to engage with employees and encourage open communication.
Outside of Prologis, we worked with the Urban Land Institute (ULI) by sponsoring women in commercial real estate to attend ULI’s annual conference and encourage them to pursue opportunities in ULI’s Product Councils. We sponsor scholarships through NAIOP, supporting under-represented minorities and women to obtain credentials in real estate development and deployment. These scholarships not only help grow greater I&D within our industry, but enable us to identify and integrate highly qualified, diverse leaders into our own business. NAIOP recognized us as Diversity Champion of the Year at the NAIOP Best of the Bay Awards for our many positive contributions promoting diversity in commercial real estate.
The Prologis Global Workforce
*Data has been compiled by Human Resources. Full time and part time Interns are included under the Temporary Category.
*14.7% turnover rate in 2018 (excludes interns & temporary workers)
*Zero lost time due to reportable injuries in 2018
The Benefits of Working at Prologis
We need talent to take our program to a level unprecedented among real estate companies; therefore, it is paramount that we have good relationships with our employees. Prologis provides a full range of benefits.
All global full-time employees receive the following benefits:
- Paid time off
- Maternity and parental leave
- Life and disability insurance
- Employee educational assistance and continuing education
- Company sponsored volunteer time
Most global full-time employees receive the following benefits:
- Medical, Dental, Vision insurance
- Local benefits, including meal, gym, and public transportation support
U.S.-based, full-time employees receive the following benefits*:
- Flexible spending accounts
- Health savings account
- Adoption assistance
- 401(k) retirement plan with employer matching
- Employee assistance program
*The above benefits are available for all U.S.-based, full-time employees. U.S.- based part-time employees receive PTO on a prorated basis, are eligible for 401k and are eligible for the Employee Assistance Program. The United States is considered the most “significant location of operations” since over 50% of all international employees are based there.
*$387M+ paid out in salaries, bonuses, and contributions world-wide in 2018 (US Dollars)
*$2.4M+ contributed to pensions plans in the United Kingdom and European Union in 2018 (US Dollars)
*Effective in 2018, Prologis provides up to 10 weeks of 100 percent paid parental leave following the birth of a child, and adoption reimbursement up to $10,000.
Investing in People Through Training
Prologis’ Learning and Development team has built an extensive curriculum focused on five areas:
- Career enrichment: Helping all employees build basic business competencies critical to success, such as presentation skills, effective communication and time management
- Leadership development: Preparing future leaders, expanding overall leadership capacity and cultivating leadership skills in high-potential employees
- Real estate training: Giving all employees the opportunity to better understand our industry and ensuring ongoing enrichment for those involved in real estate operations
- Systems and technical: Facilitating understanding of core systems
- HR and talent management: Focusing on topics that include performance management, compliance with local laws and onboarding
Training is delivered through a combination of classes at Prologis offices, virtual classes and a library of more than 600 self-paced online classes available anytime and anywhere.
The Importance of Health and Wellness
Prologis believes that promoting health and well-being encourages higher productivity at work and helps people maintain a happy, healthy lifestyle overall. That’s why we incorporate wellness into the design and operations of where we work, which can include ergonomic desks and computer equipment, workout rooms, acoustical and indoor air quality comfort controls, use of green cleaning supplies and offerings of healthy snacks. Prologis sponsors and participates in charitable events, such as the Courage Classic bicycle tour in the U.S., the Prologis Race in Mexico, the Stelvio for Life event in the Netherlands, as well as holding company-wide health challenges, such as our annual Healthy Steps Challenge.
In 2018, Prologis worked with a leading health management service provider to give employees the latest health and wellness educational programs and an online community for motivation. We offer a health assessment and biometric screening to evaluate participating employees' lifestyles and potential health risks. Individual counselors worked with individual employees to help them maintain or improve health and well-being. Whether an employee’s goal is a better health score, more energy, weight loss, stress reduction or an improved diet, the Prologis wellness program was there to help. Prologis also contributes to employee financial wellness by offering one-on-one financial coaching to all employees at no cost. Investing in the wellness of our employees is simply investing in the health and longevity of our greatest asset.