A holistic approach to ESG

Recent years have seen a rapid acceleration in Prologis’ climate initiatives, and things are about to move up another gear. Prologis knows that sustainability isn’t just morally right; it’s also good business, as it helps customers make the most of their logistics space while meeting their own ESG targets.

Prologis’ ESG report for 2022 lays out important new targets for the coming years. The company will make its global construction processes carbon neutral by 2025, and in the same year wants to deploy at least 1 GW of onsite solar power, supported by storage. Then, in 2030, Prologis aims to achieve net-zero for all operations, and a decade later, in 2040, to achieve net-zero emissions across its entire value chain.

Prologis has already taken the first steps down this road, submitting a letter of commitment to the Science Based Target initiative (SBTi) for validation and establishing key partnerships with leading external groups to drive the decarbonisation of its supply chain. Many of the required solutions are already being rolled out; Prologis has been working together with customers for years to decarbonise the construction and transportation industries, including the reduction of emissions from fleet operations, building construction, and onsite energy usage.

Focusing on renewables and finding efficiencies in energy consumption are vital aspects of its emissions reduction strategy. By 2025, Prologis plans to have installed high-quality, energy-saving LED lighting controlled with motion sensors across its entire global portfolio. Electric vehicle charging stations are meanwhile becoming a common feature at Prologis parks, and the company ranks no.3 in the USA for onsite solar capacity. In Central Europe, Prologis focuses on purchasing energy with guarantees of origin from renewable energy sources; partnership with Tauron means that as of 2022, its parks in Poland are 100 pct powered by electricity from renewables.

Prologis is under no illusions about the scale of the task to reach net-zero. After all, goods with a value of 2.5 pct of the world’s GDP pass through its warehouses each year. But it also knows that fighting climate change is also a priority for its customers. For that reason, Prologis partnered with the Cool Earth charity to fund activities protecting the world’s rainforests, which are of crucial importance in removing CO2 from the atmosphere. In the last year alone, the construction of Prologis warehouses in Central Europe saved 784 ha. of rainforest, compensating more than five times over for the CO2 emissions caused by construction work itself. Work with Cool Earth protects an area of rainforest in Papua New Guinea and Brazil equal to 31 times the footprint of each new Prologis building. As well as being powerful carbon sinks, these rainforests are home to millions of species of animals and plants.

Climate and environment goals form part of Prologis’ core offer to customers by providing value beyond real estate. By achieving emissions reduction and mitigation targets together with customers, the company wants to move together towards a cleaner and greener future.

Keeping promises

Prologis has a track record of delivering on commitments. It gave itself an initial target of generating 400 MW of solar capacity by 2025, but increased the target to 1 GW this year because of successes to date. It is on track to achieve a goal of 100 pct LED lighting by 2025, with 57 pct coverage worldwide as of this year. In a single year, from 2020 to 2021, Prologis reduced the emissions of its global operations by 22 pct. And between 2018 and 2021, it issued 16 green bonds to fund green building design and innovation projects, with global lines of credit linked to sustainability metrics.

Keeping track of progress is vitally important, so Prologis collects and analyses data about its performance. The company’s Global Insights and Research team carries out invaluable work to help define targets that are achievable, significant, and of real value to customers. The findings of their research are also at the disposal of customers, helping them work together with Prologis to collectively improve ESG performance.

The solutions of tomorrow, today

Customers expect Prologis to offer the latest sustainable solutions, and a focus on helping them meet their own ESG targets informs the entire cooperation, from designing their new space to continually helping them make the most of it after they move in.

All Prologis new-builds are submitted for BREEAM accreditation, often after a Build-To-Suit development process working closely with customers to create a space tailored to their needs. Using innovative Building Information Modelling (BIM) technology, development teams can take customers on a virtual tour of their future space, facilitating a dialogue on the best way to implement sustainable solutions.

Once they move in, customers receive ongoing support from Prologis Customer Experience Teams who ensure facilities run at maximal efficiency. And they feel real benefits from the company’s sustainable approach, as Prologis’ bulk purchasing power for energy from renewable sources ensures competitive prices. These benefits are long term, because for Prologis, a green warehouse space isn’t just a short-term bonus; it’s an investment for a cleaner and better future. The company always seeks to build long-lasting relationships with customers, knowing that the more time they spend working together, the more benefits Prologis can bring.

Putting customers, people, and communities first

Prologis’ ESG priorities are ingrained in its company culture. While going the extra mile for customers every day, its people bring the same commitment to the communities where they’re based. Since 2019, Prologis employees have devoted a total of 33,000 hours to charity and volunteering work supporting local communities through Impact Day, with initiatives ranging from supporting local sports events to helping clean up the natural landscape. The company also makes long-term commitments to good causes through its Space For Good programme, with 1.2 mln sqm of warehouse space leased for free to charities.

Prologis cares about making a difference for local people through skills training: last year, it helped develop skills and knowledge for over 13,000 people through its Community Workforce Initiative, and eventually placed 1,500 people in logistics jobs. And the company creates space for its own employees to flourish, with 46 pct of Prologis managerial positions currently held by women. A recent employee survey found that 88 pct of Prologis employees feel engaged with their work.

Another aspect of the company’s drive to help local communities is an emphasis on making its parks great places to work. The PARKlifeTM initiative is an example of this approach, creating amenities to boost quality of life and job satisfaction such as five-a-side football pitches, BBQ areas, green spaces, cross-fit zones, book boxes, electric car charging stations, and much more.

These amenities have become a hit with customers by helping them attract and retain the right workforce in competitive labour markets. They are also an embodiment of Prologis’ holistic approach to ESG, both in Central Europe and globally; an approach that aims to benefit local people and the planet in equal measure, in so doing creating an atmosphere in which customers can thrive.