Prologis Raises the Bar for the Real Estate Industry. 2019 ESG Report
Prologis, the global leader in logistics real estate, raised standards in environmental stewardship, social responsibility and governance (ESG) across its global platform in 2019, which helped the company exceed a number of its stated ESG objectives according to its annual ESG Impact Report.
Among the European projects that contributed to the company’s improved performance are its Gold-Standard certified WELL building in Tilburg, the Netherlands, its purpose-built, carbon-neutral facility in Muggensturm Germany, developed for L’Oreal, and its newly constructed building in Daventry in the UK, which received a BREEAM Excellent certification. The WELL building in Tilburg is the first logistics project in the world to receive this certification. The report also highlights the role of its Cool Earth partnership, which was recently expanded across Europe from its roots in the UK.
In 2019, Prologis also:
- Added LED lighting to 50 million square feet of distribution and warehouse space;
- Surpassed its goal of 200 megawatts (MW) of installed solar capacity by 2020, 1.5 years ahead of schedule, and set a new target of 400 MW by 2025;
- Became the first real estate company on the S&P 100 to achieve operational carbon neutrality.
Ben Bannatyne, President Prologis Europe said: “We have long recognised that strong ESG performance creates value beyond real estate. By working with our customers, we can help to reduce the environmental impact of their operations and not only provide the workspace and services which enhance their employees’ wellbeing, but benefit our park communities as a whole. The role that Europe plays in helping Prologis remain a global leader in the field of ESG is underpinned by the real progress we are making on these fronts, including through our PARKLife initiative.”
Prologis’ carbon strategy is focused on emissions reduction across the business, both direct and indirect, which includes decreasing emissions from energy use in offices and customer spaces. Since 2017, the company has more than doubled its LED coverage and expects to accelerate its transition to 100% LED lighting across the global portfolio through its Prologis Essentials LED program which offers customers the opportunity to upgrade their lighting without upfront capital costs, but with reimbursement throughout the duration of their leases.
In 2019, Prologis had 456 sustainable building certifications in 18 countries and was awarded 8 out of 8 Green Stars by GRESB (Global Real Estate Sustainability Benchmark). GRESB also ranked four Prologis funds industrial sector leader in four of its operating regions including Northern Europe, the Americas, the U.S. and Asia.
In response to the COVID-19 pandemic, the company reported that the Prologis Foundation has established a $5 million global relief fund to support not for profit organisations, hospitals and organizations focused on public health and safety, as well as those dedicated to food access and economic recovery. Through its Space for Good program, the company has offered unoccupied buildings and yard space to government agencies in the U.S. and to hospitals and relief organizations throughout the world to support in coronavirus relief efforts. To date, Prologis has donated 1.2 million square feet in 13 markets and $4.9 million in in-kind rent.
Prologis chairman and CEO Hamid R. Moghadam said: “Amidst a global pandemic, Prologis took meaningful action to help those in need and reaffirmed our commitment to our employees, customers and communities around the world. Due to our portfolio scale and infrastructure, we are uniquely able to position our ESG programs to both serve our customers and support people and organizations through crises.”
In 2020 Corporate Knights Global 100 ranked Prologis as the #1 most sustainable real estate company in the world, #6 most sustainable corporation in the U.S. and 26th overall in its listings.
Hamid R. Moghadam added: “Never has it been more important that, during these trying times, we maintain our dedication to ESG, which has been recognized globally: on the Corporate Knights Global 100 Most Sustainable Corporations in the World list; and by inclusion in the Dow Jones Sustainability World Index, which placed us among the top 10% of global companies.”