Climate Change

Prologis’ Carbon Management Approach

Prologis’ Carbon Management Approach hits the sweet spot between creating business value and reducing our carbon impact. It also furthers our efforts toward achieving our science-based target (SBT) for reducing greenhouse gas (GHG) emissions. Prologis' carbon emissions footprint covers emissions from our direct operations (Scope 1 and 2) and all other indirect emissions stemming from our global portfolio/construction activities/other aspects of our business (Scope 3). We focus on emissions reduction across our whole business, both direct and indirect, which includes decreasing emissions from energy use in our offices and customer spaces. Subsequently, Prologis purchases carbon offsets and renewable energy credits (RECs) to neutralize the remaining operational emissions (Scope 1 and 2). Prologis is also exploring other carbon mitigation opportunities, such as the use of low-carbon building materials and partnerships, like our carbon mitigation partnership with Cool Earth that preserves critical rainforests. In 2021, Prologis established the new goal to have 100% carbon neutral construction globally by 2025.

Prologis’ carbon reduction efforts are driven by our customer-centric initiatives. For example, through Prologis Essentials LED, we unlock energy cost savings for our customers, while reducing our indirect emissions (Scope 3). Through other collaborations, such as Prologis’ Customer Sustainability Advisory Council (CSAC), we are identifying solutions that help Prologis and our customers reduce our collective carbon impacts. The CSAC forum goes beyond the norm to strengthen customer relationships, while also providing insight into their evolving needs on topics like renewable energy and electric vehicles, among others.

Alignment with TCFD

Governance Strategy Risks & Opportunities Targets & Metrics

Prologis REIT Management K.K. (PLDRM), the asset manager for NPR, has signed on as an official supporter of TCFD in September 2021. NPR is aiming to sooner provide disclosure on an alignment with its four core elements as outlined above.

Renewable Energy

Beyond identifying ways to consume less energy, Prologis is contributing to a low-carbon future by using our properties as a platform to generate large volumes of clean electricity. Over the past decade, Prologis has emerged as a leader in corporate solar deployment. In the middle of 2019, the Prologis Group surpassed its 2020 global goal of installing 200 MWs of solar capacity across the global portfolio. Achieving this goal a year and a half early with more than 201 MWs of installed capacity is a further testament of Prologis' leadership as a global solar developer. Our emphasis on renewable energy puts us in alignment with the United Nations Sustainable Development Goal 7 (affordable and clean energy), and we set an ambitious new goal of 400 MWs of installed capacity by 2025. As our customers pursue their own environmental goals and carbon-reduction targets, deploying Prologis installed solar energy at our warehouses is an example of shared value creation made possible by our experience, scale and core business strength. As of year-end 2020, Prologis had 252 MWs of installed solar capacity globally, with 40 MWs coming from solar installations across the NPR portfolio.

Initiatives for Energy Efficiency

In cooperation with building management companies, property managers of Prologis Japan periodically analyze monthly energy consumption by usage in our customer’s leased area and provide energy saving advice to our customers, which include reducing or dimming lighting fixtures, switching to intermittent operation of ventilation fans, and turning on heat recovery features of ventilators. We also recommend using window blinds and setting the temperature of air conditioners at 28 degrees Celsius for summer and 20 degrees Celsius for winter.