Sustainability Related Disclosures
Sustainability Risk Policies
Pursuant to Article 3 of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the “Sustainable Finance Disclosure Regulation” or the “SFDR”), Prologis Management II S.à.r.l. (the “Management Company”) is required to publish information about its policies on the integration of sustainability risks in its investment decision-making process.
"Sustainability Risk" means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment.
Before any investment decisions are made on behalf of the funds managed by the Management Company that are not feeder funds (the “Managed Master Funds”), the Management Company will identify the material Sustainability Risks associated with the proposed investment. These risks and the assessment of the risks form part of the overall investment proposal reviewed and approved by the relevant authorized individuals of the Management Company prior to being submitted to the investment committee. The investment committee further assesses the identified risks alongside other relevant factors set out in the proposal. Following its assessment, the investment committee makes relevant investment decisions having regard to the Managed Master Fund’s investment policy and objectives. During this process, Sustainability Risks are identified and assessed using the same process as is applied to other relevant risks affecting the Managed Master Fund.
The identification and assessments of risks, including Sustainability Risks, will take place on an investment-by-investment basis for each Managed Master Fund in accordance with the policy described above. Further information on Sustainability Risks will be disclosed in the offering memorandum of each Managed Master Fund.
The Management Company manages certain feeder funds which invest substantially all of their investable assets into a master fund (each such master fund, a “Relevant Master Fund”), including the Managed Master Funds; as Sustainability Risks are integrated into the investment decisions of each such Relevant Master Fund, they are not integrated at the level of investment decisions of each such feeder fund.
No consideration of adverse impacts of investment decisions on sustainability factors
The Management Company does not consider the adverse impacts of its investment decisions on sustainability factors at the entity level within the meaning of Article 4 of the SFDR, as the availability and reliability of principal adverse impact (PAI) indicator data cannot be reasonably ascertained across all Relevant Master Funds, particularly considering the geographical focus of some of the Relevant Master Funds. However, the position will be kept under review as the availability of reliable data increases over time, and in the meantime, certain of the Relevant Master Funds do consider principal adverse impacts on sustainability factors within the meaning of Article 7 of the SFDR, as explained in the fund-specific pre-contractual disclosures of such Relevant Master Funds.
Remuneration Policy
Pursuant to Article 5 of the SFDR, the Management Company is required to publish information on how its remuneration policies are consistent with the integration of Sustainability Risks.
The Management Company pays its employees a combination of fixed remuneration (salary and benefits) and variable remuneration (including bonus). Variable remuneration for relevant employees takes into account compliance with all policies and procedures, including those relating to the integration of Sustainability Risks in the investment decision-making process. In this regard, the Management Company’s remuneration policy does not encourage risk-taking which is inconsistent with its internal risk limits or with the risk profile of the funds that the Management Company manages, and this includes Sustainability Risks.
Further Information
To access the Fund-specific information under the Sustainable Finance Disclosure Regulation, please visit the links below:
Prologis European Logistics Fund (PELF) - dated 1 Jan 2023