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 has committed to a 10-year program of activity that coincides with the United Nation’s call for a #decadeofaction to deliver global sustainability goals.

For 2019, Prologis has some exciting updates to our goals. 

  • LED: We set a new goal of 100% LED coverage across our global portfolio by 2025. In recent years, lighting technology has evolved rapidly with light-emitting diodes (LEDs) surpassing other lighting types in efficiency. Installing LEDs can reduce electricity consumption and associated costs by up to 70% compared to traditional warehouse lighting. Because of the technological advances in LEDs, this is the last year Prologis will report on efficient lighting versus LEDs specifically. 
  • Solar: We set a new target of 400 megawatts (MW) by 2025. In 2019, Prologis added 26 MW of solar, surpassing our goal of 200 MW by 2020 and bringing the total to 212 MW of generating capacity in nine countries. 
  • Labor: In 2019, we set a new goal to train 25,000 individuals (external to Prologis) by 2025, through our Community Workforce Initiative (CWI), partnering with local nonprofits and the development of our online curriculum.
2019 ESG Goals

1.The UN Sustainable Development Goals (SDGs) guide the UN’s global agenda for sustainable development by 2030.
2. Includes volunteer hours, such as IMPACT Day, and time invested by our teams in community programs, such as CWI.
3. The goal is to design to sustainable building certification standards and with sustainable design features as appropriate and in line with customer specifications.
4. Percentage based on percent of global portfolio by area.
5. Includes LED and T5/T8 fluorescent. Going forward Prologis will report progress towards converting the portfolio to 100% LED.
6. As appropriate given local climate factors.
7. Increase above the 2016 baseline emissions.
8. Decrease from the 2016 baseline emissions.

 

Science Based Targets

Our SBT goal is ambitious yet attainable: Prologis commits to reduce absolute Scope 1 and 2 GHG emissions 21% by 2025 and 56% by 2040 from a 2016 base-year. Prologis also commits to reduce absolute Scope 3 GHG emissions 15% by 2025 and 40% by 2040 from a 2016 base-year.

2019 SBT Infographic

Definitions

  • 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).
*Percent reduction targets above are based on a 2016 baseline

 

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 such programs as Prologis Essentials LED.
  • The company’s ESG team will continue to engage with Prologis employees globally on long-term environmental stewardship initiatives and GHG-reduction strategies.

Our emissions 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. In 2018, Prologis set a science-based target (SBT) that covers Scope 1, 2 and 3 emissions. SBTs align with 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 SBTs 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
  • Scope 3: All other indirect emissions relevant to our business not included in Scope 2

How carbon footprint is calculated:

To meet our goal, we will continue to identify and implement sustainable business practices, involve employees in environmental stewardship initiatives and partner with customers on 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 energy efficiency upgrades, 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 2019, we offset 100% of our Scope 1 emissions with carbon offsets, and purchased RECs/carbon offsets for our Scope 2 emissions. With 100% coverage of Scope 1 and 2, Prologis achieved operational carbon neutrality for 2019. Our carbon offsets come 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 our purchased operational electricity from locally sourced projects in each region where our corporate offices are located.

For the past five years, we have partnered with Anthesis to calculate and track our carbon footprint data. In 2019, inclusion of additional data regarding construction activities and goods and services (Scope 3 categories) prompted a recalculation of 2016-2018 Scope 3 data for these categories.

As of 2019, Prologis Scope 1 and 2 emissions have increased from the 2016 baseline due to an increase in mobile emissions stemming from our leased fleet. We are actively looking into electric vehicle and hybrid options to decrease these operational emissions. Scope 3 emissions have decreased from the 2016 baseline due to investment and implementation of energy efficiency technologies in our tenant spaces, such as LED lighting upgrades. We continue to work with our employees, customers and suppliers to work towards emissions reduction in all three scopes.

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 ESG Report Assurance Statement and Greenhouse Gas Assurance Statement for more detail.

2019 Greenhouse Gas Emissions

 

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