According to the “2017 Prologis Sustainability Report,” the company made significant progress last year toward achieving its sustainability goals, with resilience playing a paramount role. For another consecutive year, the report was prepared in accordance with the Global Reporting Initiative (GRI) and Construction and Real Estate (CRE) guidelines for sustainability in the construction and real estate sector.
In 2017, societies around the world grappled with the environmental, social, and economic impacts of disruptions and natural disasters. Although Prologis has $2 billion in assets in several regions that were particularly exposed to this year’s extreme weather events, these buildings were highly durable and sustained minimal damage, meaning customers experienced no major disruptions.
Prologis’ environmental, social, and governance (ESG) programs collectively contribute to the long-term sustainability of the company’s projects worldwide, ensuring the aforementioned durability. Sustainability is part of Prologis’ DNA, and delivering the long-term value that stakeholders expect is only possible through an active pursuit of developing new technologies and forward-looking business practices.
– Our ESG program is a positive activity that benefits our customers, investors, local communities, and employees. We approach ESG with a forward-looking perspective, because only such an approach enables us and our customers to stay one step ahead of what the future brings – stated Hamid Moghadam, Chairman and CEO of Prologis.
ESG is an integral and overarching part of Prologis’ business. To advance responsible environmental stewardship, the company provides customers with modern and sustainable buildings.
In the 2017 report, Prologis detailed the progress made toward achieving its sustainability goals:
• 10 megawatts of solar installations were added to the portfolio, increasing total generating capacity to 175 megawatts, meaning the company is on track to reach 200 megawatts of solar power capacity by 2020;
• by the end of 2017, energy-efficient lighting had been implemented in 82% of the operating portfolio, bringing it closer to the goal of 100% energy-efficient lighting across the entire portfolio;
• currently, 40% of the operating portfolio has roofs with cool or reflective coatings;
• the 2020 corporate greenhouse gas emission reduction target was achieved four years ahead of schedule, and Prologis is on track to meet science-based targets.
Projects based on durability and sustainability
In its buildings, Prologis combines technologies that reduce energy and water consumption, focusing on brownfield and infill development, and seeking building certifications whenever possible. Among the successes achieved in 2017, it is worth mentioning the highest “Outstanding” rating awarded under the BREEAM certification for a build-to-suit facility located at Prologis Park Prague-Rudna. This is the first logistics facility with such a result in the Czech Republic and the second building of this type in all of Central and Eastern Europe.
Energy efficiency innovations
Through innovative solutions in energy generation, consumption, storage, and measurement, Prologis provides its customers with the ability to test and expand new sustainability solutions.
Consumption monitoring: Using energy monitoring and management tools, Prologis reported that in 2017, 3,604 of the company’s global assets saw an 8.9% decrease in consumption, which translated into a 4% reduction in emissions.
Smart meters: Based on a successful pilot project in Central and Eastern Europe, Prologis is introducing smart electricity, gas, and water meters in parks around the world, collaborating with software developers to create measurement technologies. In 2017, smart utility metering was implemented across the entire Prologis portfolio in the Czech Republic and Slovakia.
Solar energy: Prologis was one of the first companies in the logistics sector to invest in rooftop solar panels. In 2017, another 10 megawatts of solar power were added to the Prologis portfolio, bringing the total to 175 megawatts across nine countries. For comparison, this amount of clean energy can power 26,000 average American homes annually.
Pioneering green technology activities
Prologis’ achievements in leading industry innovation are most visible in its global portfolio of green technologies and business process projects. One of these is a pilot project at Park Budapest-Harbor, carried out in partnership with Platio, a Hungarian startup producing sidewalk solar panel systems. Green energy initiatives help Prologis and its customers stay one step ahead of what the future brings.
Promoting biodiversity
Biodiversity is an inherent element of sustainability, which is why Prologis implements activities aimed at ensuring the health of plants and animals in and around its parks. By focusing on infill development, where problems such as legacy contamination often occur, biodiversity is supported in two main ways: removing potentially harmful pollutants from ecosystems and land recycling. Consequently, all new developments undergo rigorous permitting processes that consider environmental issues, including assessments of sensitive habitats and protected species. An example of biodiversity protection can be seen at four Prologis facilities near Paris, where beehives produced about 600 jars of honey that were given to customers in the summer of 2017.
A good and socially engaged neighbor
Prologis strives to be a good neighbor, because strong ties in the places where employees live and work increase social willingness to grow and develop, allowing the company to improve its services for customers. During the global Prologis IMPACT Day in 2017, where employees take action for the communities in which they live and work, 1,304 employees volunteered a total of 8,383 hours for 36 non-governmental organizations.
Inclusion and diversity
Respecting diversity and striving for inclusion are fundamental elements of Prologis’ strategy. The company maintains a firm belief that recruiting and developing the best talent is the way to conduct business effectively and achieve continuous growth. In 2017, Prologis changed its compensation structure to include inclusion and diversity efforts as a basis for awarding bonuses. At the board level, the compensation committee was renamed the Talent and Compensation Committee. Furthermore, as a result of changes to its charter, greater emphasis is placed on inclusion and diversity. Prologis also appointed recruitment ambassadors to promote its inclusion and diversity policies among potential employees.
In 2017, for the ninth consecutive year, Prologis was included in the Corporate Knights ranking of the 100 most sustainable corporations in the world, placing in the top half – at 44th place, up from 83rd in 2016. Remaining in the ranking for nine years and achieving higher ratings in such a competitive environment confirms Prologis’ ongoing commitment to sustainable design and responsible development. Prologis intends to continue strengthening its position as a global industry leader.
– On one hand, I am proud of our achievements to date, and on the other, I am even more excited about the actions we have planned for the coming years. We are constantly thinking about how to improve our business – this year, next year, and in the next decade – admitted Moghadam.