Prologis Commits to Net Zero Emissions by 2040
- Sets interim targets of 1 GW solar by 2025 and net zero for operations by 2030
- Builds on company's leadership in green building, solar and more
- Publishes 2021-22 ESG Report
SAN FRANCISCO, June 22, 2022 /PRNewswire/ -- Prologis (NYSE: PLD), the global leader in logistics real estate, today announced its commitment to achieve net zero emissions across its value chain by 2040. The company also released its annual environmental, social and governance (ESG) performance report.
"Prologis has always been ambitious in our sustainability efforts, and our new net zero goal is no exception," said Prologis Co-founder, CEO and Chairman Hamid R. Moghadam. "We're proud of the support we're providing our customers in achieving their sustainability goals. Prologis continues to be an industry leader in finding innovative ways to decarbonize our operations."
The company has been carbon neutral for its scope 1 and 2 emissions since 2019. Its 2040 goal encompasses scope 1, 2 and 3 emissions and includes several interim targets to support its progress. These include:
- 1 GW of solar generation capacity (supported by storage) by 2025
- Carbon neutral construction by 2025
- Net zero for operations by 2030
The company has submitted a letter of commitment regarding its net zero goal to the Science Based Targets initiative (SBTi) for validation. In addition, Prologis has committed to partnering with leading external groups to drive decarbonization across the industry value chain, including sustainable building materials innovation.
Prologis works closely with its customers to understand their environmental goals and programs. The company has been investing in energy-related lines of business, including EV charging and onsite solar, as additional value-add services for its customers. Prologis currently has approximately 200 EV charging stations and 325 MW of rooftop solar (as of April 2022).
"We are putting our 1 billion square foot portfolio to good use for our customers every day," said Prologis Chief Energy and Sustainability Officer Susan Uthayakumar. "Prologis is working with our customers to develop and implement advanced energy and climate solutions. These actions will enable us to deliver on our commitment to net zero ten years ahead of the target set by the Paris Accord."
In its 2021-22 ESG report, the company outlines its progress toward its environmental, social and governance goals. Highlights include:
- Became the first logistics REIT with an approved SBTi emissions reduction target in 2018
- Issued 16 green bonds between 2018-2021, and its global line of credit and additional lines of credit are linked to sustainability metrics
- Achieved 325 MW of solar generation capacity as of April 30, 2022
- Installed LED lighting across 57% of the company's portfolio
- Trained 13,000 people in logistics through the Prologis Community Workforce Initiative since 2018 (goal: train 25,000 people by 2025)
- Achieved employee engagement score of 88% (12 points above financial services sector average)
- Separated ESG metrics into a standalone category on the company's bonus scorecard. ESG now represents 10% of the bonus scorecard, a percentage similar to that of other core business functions
- Invested $150 million in nearly 40 companies through Prologis Ventures since 2016, including those focused on innovation in ESG and sustainability. Investments include technology to reduce food waste in grocery delivery systems, software to calculate GHG emissions associated with third-party shipments, and solutions for workforce safety and productivity
The full report and an executive summary are available at https://prolo.gs/esg2022.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of March 31, 2022, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.0 billion square feet (93 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,800 customers principally across two major categories: business-to-business and retail/online fulfillment.
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates," including variations of such words and similar expressions, are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) maintenance of real estate investment trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to the current coronavirus pandemic; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
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SOURCE Prologis, Inc.
Released June 22, 2022