This case study was published in the 2022 REIT Industry ESG Report, which details the REIT and publicly traded real estate industry's environmental, social, and governance (ESG) performance and features 32 case studies showcasing REIT leadership and ESG innovation from a variety of sectors. The report serves as a practical tool for shareholders and stakeholders to assess the scale and impact of the REIT industry's ESG commitments and initiatives. Applicable footnotes and/or citations for this case study are available in the full report.
Establishing Portfolio-Wide Innovations to Achieve Decarbonization
Prologis, Inc. takes an innovative approach to accelerating carbon reductions across its building portfolio by designing to sustainable building standards, applying cutting-edge energy solutions, and implementing renewable energy programs for customers. The company’s decarbonization initiatives and integrated approach to ESG have garnered recognition from top global organizations, including a place in the top 10% of the largest 2,500 companies in the S&P Global BMI recognized by the Dow Jones Sustainability™ World Index 2021.
In 2021, Prologis committed to achieving certifications for all future development and redevelopment projects, pursuing best-in-class standards, such as LEED, BREEAM, WELL, CASBEE, DGNB, and HQE. These standards help to structure Prologis’ sustainable building approach, driving innovation in areas like site selection, energy and water efficiency, building materials, and biodiversity conservation.
The company also uses low-carbon building products and techniques that reduce the embodied carbon footprint of its buildings. In the Netherlands, Prologis has implemented circular design principles into some of its new construction projects. The company also aims to use building materials which contain a high level of recycled content as well as reduce emissions from transportation by sourcing 25% to 30% of building materials locally. Prologis is dedicated to reducing the emissions associated with the life cycle of its buildings—its goal to achieve carbon-neutral construction by 2025 is an important part of this ambition.
Prologis also identifies innovative technologies to further reduce the carbon footprint of its buildings. A recent building development in France uses borehole thermal energy storage, which stores heat underground during warm months and pumps it back into the building during the winter months to meet heating demands. The building also produces renewable energy from a solar photovotalic (PV) array on the roof while also sourcing off-site renewable energy. Prologis is working to further implement similar technologies across its global building portfolio to improve energy efficiency and further decarbonize its operations.
“By advancing sustainable building standards and implementing energy solutions to support our customers’ needs, we are helping to address the urgent climate-related challenges we face today, while also driving greater value for our stakeholders.”
-Suzanne Fallender, VP of Global ESG, Prologis, Inc.
Lastly, Prologis supports customers efforts in reducing carbon emissions with its SolarSmart program, launched in 2020. The program helps customers access the financial, operational, and environmental benefits of solar power without the upfront costs or long-term financial commitments. Through the program, Prologis builds, operates, and maintains rooftop solar systems which typically cover 80% of the customers’ electricity needs. With SolarSmart installations, customers pay only for the solar energy they use and are free to focus on their businesses. This initiative will support the company’s goal of installing 400 MW of solar capacity across its building portfolio by 2025.
Prologis, Inc. is a multinational logistics REIT with a portfolio consisting of over 1 billion square feet in 19 countries.