Prologis

Between 2016 and 2021, the company decreased its emissions intensity at a faster rate than that required by its 1.5°C pathway. The average historical annual decrease in emissions intensity was nearly 24%, while the company’s 1.5°C pathway requires an average annual reduction of 8%.The company has achieved this reduction by expanding rooftop solar capacity and implementing energy efficiency savings for the buildings in its portfolio.

Prologis has established a supplier code of conduct which includes criteria encouraging suppliers to comply with environmental laws and make efforts to reduce energy and water use. However, it does not specifically include emissions reduction requirements. Supplementing the code of conduct with quantified targets will provide clear direction for the whole supply chain and aid the company in making progress towards its scope 3 emissions reduction target. Additionally, the company can go further by encouraging suppliers to set science-based targets and developing joint low-carbon research and development (R&D) projects.

Prologis does not quantify commitments to reduce the in-use emissions intensity of its portfolio by undertaking renovations. As a result, it is not possible to provide a meaningful assessment of the company’s future emissions intensity trend or its alignment with its 1.5°C carbon budget. Renovation of its existing portfolio is likely to make a significant contribution to the company’s targeted reduction in its scope 3 emissions from tenants’ use of buildings. The lack of quantified commitments to renovation brings into question the credibility of the company’s targets.

Prologis has made commitments to engage with its clients to reduce emissions from the use of its leased properties. The company uses a third-party consultant to collect accurate emissions data for its portfolio, which it shares with clients and collaborates with them on energy saving initiatives. Prologis encourages the installation of solar panels through its SolarSmart scheme, where clients can have solar panels installed at no costs upfront and only pay for the energy they use. This scheme has allowed the company to significantly increase its solar capacity and therefore reduce its scope 3 emissions and is a major part of the company’s plans to increase its solar generation to 1 GW by 2030 (a 250% increase from 2021 levels).

Prologis has committed to achieving net-zero emissions for its own operations by 2030 and across its entire value chain by 2040. The company has set an interim target to install 1 GW of solar generation capacity by 2025.

Prologis is planning to achieve its target through energy efficiency improvements in its portfolio, and expansion of installed renewable capacity backed up by battery storage. Further, Prologis will use recycled materials and reduce waste to minimise construction emissions.

Prologis is significantly expanding its renewable capacity and is renovating its portfolio to improve energy efficiency. The company has also established a green bond framework and has issued USD 2.4 billion worth of these bonds since 2018.

Prologis has achieved significant reductions in its emissions over the period 2017-2021. The company’s in-use emissions intensity for its managed properties has reduced at a faster rate than required by its 1.5°C pathway. However, the company’s emissions intensity did increase between 2020 and 2021.Prologis has achieved significant reductions in its emissions over the period 2017-2021. The company’s in-use emissions intensity for its managed properties has reduced at a faster rate than required by its 1.5°C pathway. However, the company’s emissions intensity did increase between 2020 and 2021.

Prologis has set long-term targets, with interim targets for 2025 and 2030. The company has made significant steps to reduce its emissions and has integrated climate change into its business model. However, its transition plan lacks detail on long-term actions toward net zero.

No evidence was found of Prologis’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Prologis was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Prologis identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Prologis commits to respecting human rights. However, there is no evidence of the company having a commitment to respect the ILO fundamental rights at work, and it does not expect its business relationships to make this commitment either. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to raise human rights concerns.

Prologis commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company does not disclose the proportion of its direct workforce covered by collective bargaining agreements, and no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender of its board directors as well as the number of employees by geography. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to promoting gender equality and women’s empowerment.

Prologis commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in its individual tax jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Regardless, no relevant disclosure was found of the company’s expenditure on lobbying activities.