SUSTAINABILITY REPORT | 2017

A Culture of ResilienceA Cultureof Resilience

Environmental
Stewardship

SocialResponsibility

Governance

GRI
Materials

Table of contents
A Culture of Reslience

The global leader in logistics real estate
CEO Letter
VP Sustainability perspective
A culture of resilience
A straightforward business model
Sustainability at a glanceMateriality assessment and alignment with GRIAwards and recognition

Environmental Stewardship

Building a resilient world
Leading through action
Resilient and sustainable by design
Energy-saving innovations
Pioneering green technologies
Programs for energy savings
Efficient with water and waste by design
Driving efficiency through scale
Sustainability at work
Corporate carbon footprint reporting
Promoting biodiversity

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4
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8
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10
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12

13
14
15
17
18
19
20
21
22
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24

Social Responsibility

A good neighbor
Inclusion and diversity
Socially engaged
Committed to giving backA positive work environment
Wellness initiatives

GovernanceHigh standards
A culture of integrity
ESG in action

GRI Materials

About this report
Stakeholder engagement
Aligned with United Nations sustainable development goals
Memberships and associations
External assurance statement
GRI standards content index
Data snapshot
Engage with us
Forward-looking statements

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31

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36

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42
43
46
49
50

All data in this report is as of 12/31/2017 unless otherwise specified.

Prologis Park iPort, Carteret, New Jersey

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Prologis Shanghai Qingpu Logistics Center, Shanghai, China

The global leader in logistics real estate
Prologis owns, manages and develops high-quality
properties in the world’s most vibrant centers ofcommerce. Our 3,282 buildings in 19 countries serve
5,000 of the world’s best brands and businesses, andmore than 800,000 people come to work under ourroofs each day1. Customers turn to us because theyknow that a strategic relationship with Prologis will
make their operations more efficient and sustainable,
creating competitive advantage.
Through our six private and two public co-investment
vehicles, the world’s leading institutional investors
invest shoulder-to-shoulder with us in properties thatare reliable, efficient, desirable for customers, beneficial
for communities and the environment, and built towithstand the test of time.
$1.3 trillion in goods representing 1.7 percent of theworld’s GDP flow through our buildings each year1.
Global consumption is growing; much of the world’s
supply chain is poised for modernization; and long-term
trends in urbanization and e-commerce are driving
demand for efficient logistics facilities. Our balance
sheet is strong, and our debt is rated “A-”2 /“A3”3. Our
employees work in a culture that advances talent andrewards adaptability. They are committed to doing theright thing for our customers, investors, communities
and other stakeholders—consistently.
In a world changing at speed, Prologis is forward
looking, nimble and resilient. We foresee growth andprosperity for our company in the years ahead.
1.	Data gathered as part of an audit performed by Oxford Economics. For more information, visit our
Future Flow of Goods website.
2.	Rating provided by Standard & Poors. A securities rating is not a recommendation to buy, sell or
hold securities and is subject to revision or withdrawal at any time by the rating organization.
3.	Rating provided by Moody’s. A securities rating is not a recommendation to buy, sell or holdsecurities and is subject to revision or withdrawal at any time by the rating organization.

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Environmental
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CEO LETTERGood business
Dear Stakeholders,
Every year in our sustainability report, we share ourefforts and the progress we’ve made toward ourenvironmental stewardship, social responsibility andgovernance (ESG) objectives.
When I reflect on years past, I note that while our
ESG strategies, tactics and technologies evolve overtime, our reasons for pursuing these efforts have held
constant for decades.
Our ESG program is good business—benefiting ourcustomers, investors, communities and employees.
Good ESG practices support our corporate commitment
to enduring excellence and advance our longstanding
focus on exemplary customer service. We have been
and will continue to be forward looking when it comesto ESG, as this is key to helping ourselves and ourcustomers stay ahead of what’s next.
While ESG is a topic of increasing interest to ourstakeholders and the business community at large, oursights are set on the long term and our commitment
to ESG is longstanding. We have worked hard to builda resilient balance sheet that enables us to invest in
capital-intensive, future-focused projects like lighting
upgrades and clean energy. Prologis was among thefirst in our industry to invest in rooftop solar. Today,
solar capacity in our portfolio is 175 megawatts, whichis enough clean energy to power 26,000 average U.S.
homes each year. We have been developing buildings
to recognized sustainability standards for well overa decade. We were timely adopters of cool roofs,
resilient landscaping and efficient lighting. Giving backto the communities where we live and work has beena hallmark of our culture throughout our more than

Governance30-year history. Green Street Advisors has named
us the REIT industry’s corporate governance leader
for 15 years running. For all of our employees acrossthe globe, ESG is embedded in our daily businesspractices and our corporate culture. It is a fundamental
component of who we are and what we believe in.

GRI
Materials

Our ESG programis good business—benefiting ourcustomers, investors,
communities andemployees.

Our ESG program serves our 5,000 customers aroundthe world. Because sustainability is increasingly central
to their brands and business models, our sustainablebuildings give us an edge in attracting and retaining
top companies.
Meanwhile, energy-efficient buildings lower ourcustomers’ operating costs, which strengthens ourrelationships with them. Our resilient buildings help
our customers withstand natural disasters. Whenhurricanes and earthquakes hit North America andtyphoons struck Japan last year, our buildings stoodstrong while our teams mobilized immediately—
keeping our customers in business or putting them backin business quickly.
We know that the design and development decisions
we make impact the communities we serve for
decades to come. That’s one reason our buildings arebuilt to last. We further strengthen our presence in key
markets with social impact programs. These initiatives
forge relationships that facilitate our development
activities and ensure the communities in which we
operate remain receptive to our plans for future growth.
Maintaining market-leading governance translates
directly into positive relations with our investors. The
sharper and clearer the lens investors have on our
performance, the better they can gauge risk and value
when assessing our stock.

continued

Prologis CEO and Chairman, Hamid Moghadam

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Essential to our enduring value, as competition for
talent heats up across the globe, our leadership in ESG
helps us recruit and retain top candidates. As proudas I am of our past accomplishments, I’m even moreenergized about the efforts we have planned for theyears to come. We are always thinking about how we
can do better—this year, next year and next decade—sothat we and our stakeholders will grow and prosper.
To ensure our ESG program continues to evolve andthrive, we’ve recently aligned it under Ed Nekritz, ourchief legal officer and general counsel, who leads manyof our strategic initiatives. Under new leadership, our
ESG innovations and investments will continue to focus
on generating value for our stakeholders in line withour corporate strategy. We’re centralizing procurement

Prologis International Park of Commerce, Tracy, California

Environmental
Stewardship

SocialResponsibilityof building components, which will enable us to drive
ESG measures into our supply chain more effectively.
We are launching programs to help our customers meettheir labor needs while boosting local employment.
Our offices are designed to help our employees beboth healthy and productive. Our scholarship programis aimed at attracting women and underrepresented
groups to real estate, increasing diversity of talent forour company and our industry.

Governance

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Materials

Sincerely,

Hamid R. Moghadam
Chairman and Chief Executive Officer

At Prologis, we look back on 2017 as a year ofsignificant ESG accomplishments. We’re pleased toshare our progress with you, highlight the areas inwhich we can still improve, focus on the connection
between good ESG practices and good business, andpoint the way forward to a more resilient future.

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VP SUSTAINABILITY PERSPECTIVE

Resilient by design
One word defines 2017 for me: resilience. Throughout
the year, communities across the globe withstood theenvironmental, social and economic costs of weatherrelated disruptions and disasters. When September andOctober brought damaging hurricanes, earthquakes andfires to North America and a typhoon to Japan, Prologis
mobilized to assist impacted communities and keep ourcustomers up and running.

Environmental
Stewardship“

SocialResponsibility

Governance

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Materials

Prologis is taking
a forward-looking
approach toclimate issues.

Because we design high-quality buildings and use resilientroofing and other building materials, our buildings suffered
minimal damage. Our emergency response protocols
put our customers back in service quickly, minimizing
disruptions to their businesses. Although we had $2
billion in assets in regions impacted by 2017’s extreme
weather events, our structures stood strong incurring
negligible damage, and our customers experienced nosignificant business interruptions.
This demonstrates the connection between cultivating
a culture of sustainability, contributing to the health andwell-being of our communities, and running a profitableglobal business.
We know the weather events of 2017 are part of abroader pattern. The recently released “National Climate
Assessment” reveals that we are likely to continue
to experience extreme weather events. The World
Economic Forum’s “Global Risks Report” consistently
ranks climate change—including extreme weather
events and natural disasters—among the top five risks.
Prologis is taking a forward-looking approach to climate
issues. In 2017, when we signed our name tocontinued

Prologis VP of Sustainability, Jeannie Renné-Malone

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We Are Still In, we joined influential leaders fromgovernment, education and industry in a coalition toreaffirm our commitment to the goals of the Paris
Climate agreement and support climate action in the
U.S. We continue to align with the United Nations’Sustainable Development Goals, and we are now
setting science-based targets to address climatechange proactively.

I am optimistic that the resilience of our people, ourbusiness and our buildings will keep us strong in theface of future extreme weather events and other
unforeseen global disruptions.

The initiatives you’ll read about in this report relating
to ESG are essential to our strategy and businessmodel. We actively pursue new technologies, businesspractices and policies with the objective of making
our enterprise more resilient. While these efforts
contribute to efficient buildings, strong relationships
with our communities and a healthy workforce, thewhole is bigger than the sum of its parts. Combined,
these activities help to ensure the enduring strengthof our company.

Jeannie Renné-Malone, LEED AP BD+C,
Vice President, Sustainability

Prologis Cologne DC2, Cologne, Germany

Governance

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Sincerely,

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A culture of resilience
Resilient companies face the future head onwith strategies and tactics designed to meet theneeds of stakeholders across cycles, challenges
and opportunities.

Hallmarks of our culture of resilience include:

At Prologis, our ESG programs are designed toaugment resilience—on behalf of our own business andthe businesses of our customers.

• A culture that advances talent through inclusionand diversity; learning, development and leadershiptraining; excellent benefits; and robust health andwellness programs.

Groundbreaking at Prologis Park Grande, Mexico City, Mexico• Adaptability to rise to new opportunities--in ourcustomers’ businesses and our own, and in the
broader marketplace.

• Committed employees who go above and beyond
to do the right thing for our customers, communities
and other stakeholders--consistently.
• Quality properties that are durable, reliable,
efficient to operate, desirable for customers,
beneficial for communities and the environment,
and built to withstand the test of time.
• Financial strength that, combined with disciplined
planning, positions the company to respond tochanges and opportunities in the marketplace.

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GovernanceA straightforward business model
Real Estate Operations

Strategic Capital

Development

Leading customer service to theworld’s best brands across 684
million square feet in 19 countries

Diversifying capital sources
through partnerships withinstitutional investors

A track record of success developing
well-located land into incomegenerating logistics facilities

OUR GLOBAL LEADERSHIP1

Scale augments efficiency.

Global reach increases opportunity.
2,323

788

171

buildings in
the Americas

buildings in
Europebuildings in
Asia

Commitment drives sustainability.

$79B

684MSF

3,282

in assets undermanagement (AUM)

owned, managed
or under development

industrial
properties

Partnership ensures enduring value.

175 MW

304

11,200of solar energy
installations

sustainable building
certificationsin 17 countries

volunteer hours

5,000

729

97.2%

customers

multi-site
customers

occupancy
rate (global)

1.	Owned and managed portfolio.

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Governance

Sustainability at a glance
Our forward-looking approach to sustainable design, development, operations and culture delivers long-term value for our stakeholders.

98%

of employees completed
engagement survey versus
external benchmark of 70-80%

100%
4

82%

of total operating portfolio
has efficient lightingof employees have accessto career training and education

35%

more energy efficient byusing LED versus traditional
warehouse lighting

business days per employee
per year to volunteer withcharitable organizations140%

of total operating portfolio
has cool or reflective roofing

Employees

Customers

175MW

of total solar energy
generating capacity

10MW

of solar installationsin 2017

225+

304

sustainable building
certifications

650,000

Environment

Communities

11,200volunteer hours to
local communities
nonprofits benefited by
Prologis charitable contributions
square feet provided
to local nonprofits

1. Number includes IMPACT Day, Prologis’ global day of service, two days of company-sponsored volunteer time and one day of personal volunteer time.

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Materiality assessment and alignment with GRI
In defining our sustainability strategies, initiatives
and metrics, we balance issues of importance to ourbusiness with priorities defined by our stakeholders. We
engage with stakeholders to understand their needs,
deepen relationships and strengthen our business.
Every two years, starting in 2013, we have completed
a materiality assessment. In our 2017 assessment, we
engaged internal and external stakeholders to ensure abroad range of perspectives inform our understandingof Prologis’ impacts on the environment, economy andsociety. In past assessments, we have engaged internal
stakeholders only, focusing on the environmental,
economic and social impacts to Prologis’ business.
Four material topics emerged from our 2017 materiality
assessment: emissions, energy, employment and anticorruption.

GRI Principles for Defining Report Content
In designing this report, the Global Reporting Initiatives’(GRI) Principles for Defining Report Content guided ourcontent, design and structure.
In the past year, there have been two important
clarifications to GRI’s materiality principle:• The first pertains to the meaning of “impact,” whichrefers to the effect an organization has on theeconomy, the environment and society. It does notrefer to an effect on an organization.
• The second guides companies to consider two
dimensions of the materiality principle:

A topic can be material if it ranks highly for one orboth dimensions.
In addition to the materiality assessment
described in this section, the Prologis board
conducts consistent and recurring enterprise risk
assessments. These assessments cover many
key governance issues for the company and drive
strategies to ensure we meet requirements and act
responsibly. Risk and governance items identified in
the enterprise risk assessment align with material
topics identified in the materiality assessment.
To better align with international standards, GRI has
updated its guidance on boundaries for material topics.
For each material topic, boundaries are defined by
two factors: (1) where the impacts occur and (2) theorganization’s involvement with the impacts.
We manage our material topics through commitments
and organizational memberships, stakeholder
engagement, internal HR, ethics and sustainability
policies, goal setting, and instilling in our employees asense of personal and professional responsibility to thecommunities where they live and work.
The basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations and otherentities that can affect period-over-period comparability
is detailed in our 2017 annual report and in our Form
10-K, which is filed with and available through the U.S.
Securities and Exchange Commission. It can also beseen at our Investor Relations website.

1. The significance of the organization’s economic,
environmental and social impacts; and2. Their substantive influence on the assessments
and decisions of stakeholders.

Prologis International Park ofCommerce, Tracy, California

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Environmental
Stewardship

SocialResponsibilityAwards and recognition
Prologis has been widely recognized for our sustainability
achievements and the way we do business.
In the 2017 Global Real Estate Sustainability Benchmark(GRESB) survey, each of our 10 entries—for Prologis,
Nippon Prologis REIT, FIBRA Prologis and our
coinvestments in Europe and the United States—earned
a Green Star, the highest distinction. All three of ourpublicly listed companies (Prologis, FIBRA Prologis andNPR) earned an “A” in Public Disclosure, the highest
possible grade for a new metric added by GRESB in 2017.
For the tenth straight year, Prologis was selected as
a component of the Dow Jones Sustainability Index,
which tracks the leading sustainability-driven companies
worldwide. NPR has been listed on the DJSI Asia Pacificindex for three consecutive years, and FIBRA Prologis islisted on the newly created DJSI MILA Pacific Alliance.

GRI
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Governance

Prologis earned a perfect 10 in 2017sustainability benchmark
In its annual rankings, determined by the votes ofanalysts, Institutional Investor recognized Prologis chief
financial officer Tom Olinger and the Prologis Investor
Relations team in the categories of Best CFO, Best
Investor Relations Program and Best Analyst Day within
the REIT industry.

In the 2017 Global Real Estate Sustainability
Benchmark (GRESB) assessment of 850 property
companies, REITs, funds and developers,
Prologis, FIBRA Prologis and Nippon Prologis
REIT (NPR) each earned an “A” in disclosure
while Prologis earned a clean sweep of GreenStars once again. Prologis participated in 10
GRESB surveys, one each for Prologis, FIBRA
Prologis, NPR, four European funds and three
U.S. funds. All 10 earned Green Stars. The
Green Star is GRESB’s highest distinction foroutstanding performance in ESG.

At the tenth annual Corporate Secretary Corporate
Governance Awards, Prologis was a finalist in theBest Proxy Statement category—the only real estatecompany nominated for the last two years.
The company also received the National Associationof Real Estate Investment Trusts (NAREIT) Industrial
Leader in the Light Award for the sixth year running.

2017 GRESB INDUSTRIAL SECTORLEADER IN ALL OPERATING REGIONS
2017 AWARDS• Dow Jones Sustainability Indices: North America (Prologis), Asia Pacific (NPR) and MILA Pacific Alliance (FIBRA)ENTITYREGIONRANK ANDNUMBER OF PEERS• FTSE4Good Constituent

PrologisNorth America

1st of 12• Green Street Advisors: REIT Industry’s Corporate Governance Leader



NPR

Asia

1st of 6



PEPFII

Europe

2nd of 14



FIBRA

North America

2nd of 12• Colorado Environmental Leadership Program: Gold Level



PELP

Europe

3rd of 14• Commercial Property Executive’s 2017 Executive of the Year—Hamid Moghadam



NAIF

United States

3rd of 8• Corporate Knights Global 100 Most Sustainable Corporations in the World



PTELF

Europe4th of 14

USLV

United States

4th of 8

USLF

United States

5th of 8



ELV1

Europe7th of 14• GRESB Green Stars (10): Sector leader in North America and Asia
• Harvard Business Review: Best-Performing CEOs in the World—Hamid Moghadam• NAREIT: 2017 Industrial Leader in the Light Award• World at Work: Work-Life Seal of Distinction

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Building a resilient world
Prologis demonstrates conscientious environmental
stewardship by developing and maintaining resilient andefficient buildings that enable our customers to operatecost effectively and without disruption.
Across our own operations, we focus on two key
drivers of environmental stewardship: (1) continuous
improvement, always striving to do more with less; and(2) resilience, adaptation in response to disruptive forces.
Our focus on environmental stewardship aligns with
the interests of our customers and their customers—
the end consumer. We establish goals and objectives,

Prologis Park Pineham, Northampton, UK

including science-based targets; align with international
commitments; track emerging trends; emphasize
resilient design and construction; invest in renewableenergy and energy-efficiency projects; and implement
measures to reduce water use and carbon emissions.
We use our scale to support environmental stewardship
across our supply chain. Then we share our successes
and opportunity areas by reporting progress toward ourgoals—including our corporate carbon footprint, in atimely and transparent manner.

Prologis is proud to stand with other corporate andinstitutional leaders committed to combatting climatechange. In June 2017, when we signed We Are Still In,
we joined a diverse group of U.S. governors, mayors,businesses, investors and universities to reaffirm our
promise to work collaboratively to pursue and meet thegoals of the Paris Agreement.

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GovernanceLeading through action
Prologis sets environmental goals and objectives basedon a combination of careful planning and thoroughunderstanding of the latest developments in technology
and climate science. We explicitly link our environmental
goals and objectives with our broader business goals andobjectives. High-quality, resilient design and construction;
innovations in renewable energy and energy efficiency;
reducing water use, waste and carbon emissions—all ofthese give us a competitive advantage in attracting andretaining customers. As we work with our supply chain
partners to support their sustainability objectives, we
strengthen our relationships with them.
We set goals and continuously raise the bar, building
on past successes to further improve our businessprocesses and practices. In 2017, for example, we added
a commitment to deploy cool roofs in 100 percent of
new development and property improvement projects
where feasible, given climate restrictions. In 2018, we
are working with our customers to gain access to theirutility and usage data for benchmarking and GRESB
reporting purposes, and we are augmenting our customer
onboarding processes to promote energy efficiency andother sustainable practices in our buildings.
As the graphic to the right shows, by December 31,
2017, we had made significant progress toward oursustainability goals:• We added 10 megawatts of solar installations to ourportfolio, increasing our total generating capacity to
175 megawatts and keeping us on track to achieve
200 megawatts of solar capacity by 2020.
• Eighty-two percent of our operating portfolio hadenergy-efficient lighting as of year-end 2017, moving
us closer to our goal of 100 percent energy-efficient
lighting throughout our portfolio.5• Forty percent of our operating portfolio has cool orreflective roofing.

Commit to Action, the UN’s Sustainable Development
Goals and the Paris Climate Agreement.

• We met our 2020 corporate GHG emission reduction
target four years early, and we are in the process of
finalizing our science-based target.

We will continue to monitor global environmental issues
and trends, adapt the latest processes and technology
innovations to our business operations, set challenging
and meaningful sustainability goals for Prologis beyond
2020, and track and report our performance in a timely
and transparent manner.

We actively participate in broad-based global efforts toimprove the environment and combat climate change,
adding our voice and resources to support the CDP’s

Sustainable
Building
Certifications

GOAL

RESULTS100%

112 MSFof newdevelopment1

304 projects
17 countries

Corporate
GHG Reduction3,4

20%

by 2020

27%

since 2011

PROGRESS

112
MSF

68
20152

2017

7,061

6,305

MtCO2e20152

Energy-EfficientLighting5

100%

82%

82%

Solar Power
Generation

200 MW

175 MW

87.5%

Cool Roofs

100%

40%

40%

across ouroperatingportfolio

by 2020of newdevelopment7

of our operating
portfolio.
14% is LED.6

total capacityof our operating
portfolio

2017

1. Goal is to design to sustainable building certification standards or with sustainable design features as appropriate and in line with customer specifications.
2. Chart shows three years of data; refer to prior reports for additional data.
3. Based on 2011 baseline, for Prologis corporate offices only.
4. Scope 1 and Scope 2 emissions figures were updated for 2015 and 2016 to account for refrigerant gases at sites that Prologis manages. 2017 accounts forthese refrigerant gases as well.
5. Prologis defines efficient lighting as T5 or T8 fluorescent and LED.
6. Based on 96 percent of the portfolio surveyed.
7. Goal is to build 100 percent cool roofing in new development and property improvements where feasible, given climate restrictions.

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BUILDING CERTIFICATIONS

Resilient and sustainable by design
TOTAL

Added
in 2017

Cumulative
since 2006

SF

7.7M

1.6M

0.7M

0

8.7M

19M

SQM

0.7M

0.15M

0.06M

0

0.8M

1.7M

Projects

29

1

3

0

30

63

MSF

29.7

27.4

4

0.93

50

112

SQM

2.8M

2.5M

0.4M

0.09M

4.6M

10.4M

Projects

112

36

12

3

141

304

We integrate energy and water reduction technologies
into our buildings, develop brownfield and infill sites, andpursue certification for our buildings where available.
These strategies ensure the resilience and enduring
value of our buildings, creating value for our customers
and our company.
Added

SF / SQM (000)3,300 / 309

in 2016
Buildings
constructed to the highest sustainability design
18
standards haveProjects
features that minimize use of energy
and water, reducing operating costs for our customers
19,900ventilation/ 1,850 andand for Prologis.
insulation,
SF Higher-quality/ SQM (000)Cumulative
lighting
cut costs and promote employee wellness andsince 2006
75 theirproductivity. AsProjects
our customers continue to automate
warehouse operations, energy efficiency technologies
become more valuable. Designed for resilience, ourbuildings are more likely to withstand natural disasters
than conventional buildings, enabling operational
continuity for our customers and continuous employment
for their employees. These factors combine to encourage
extended occupancy among our customers.

for Prologis because we can secure certifications quickly
and efficiently.
Prologis has established a global Environmental
Management System that is implemented, maintained
and continuously improved in accordance with therequirements
2,400 / 227of ISO 14001:2015.
41.5Prologis’/ 3.9 development–/–
management activities have been certified under ISO–
14001 in the 3UK and EU since 2008 and4in North America
since 2016. In 2018, Prologis’ Japan operations will pursue
26,400/ 2,460
1,300 / 122
930 / 86
ISO 14001
certification.
Our strategic focus on the consumption end of the
37
10
supply chain is well-aligned with our commitment tosustainability. Our Last Touch™ and multistory buildings
shorten the distance goods travel to reach consumers,
thereby reducing supply chain-related carbon emissions.

3This past year saw significant gains in building
certifications. In 2017, we added 19 million square feet
(1.7 million square meters) of building certifications
2016
Since 2006
2016
Sinceacross
2006
Since
2006
2016
Since 2006
63 projects, 2016
bringing
ourtotal certifications
In 2014, Prologis became the first warehouse developerin accordance with internationally recognized rating
toSFparticipate
in the LEED
VolumeProgram which 2,400 26,400(000’s)
3,300
19,90041.5 totaling
1,300112 million square -feet 930
systems to 304 projects
streamlines certification, creating a competitive advantage(10.4 million square meters) in 17 countries.
SQM (000’s)

309

1,850

227

2,460

3.9

122

-

86

Notable certifications in 2017

TOTAL

A build-to-suit facility in Prologis Park PragueRudna became the first logistics facility in
11,400 / 1,060
17,300 / 1,600
the Czech Republic to receive BREEAM“Outstanding” accreditation,
the agency’s highest
2954
rating. A 1.7 million square foot warehousewith sustainable design feature in Osaka, Japan
38,800 / 3,600
87,300 / 8,100
received a CASBEE “S” accreditation, thehighest level for CASBEE.
A 483,990 square233
foot108
warehouse outside of Allentown, Pennsylvania,
received LEED “Gold” certification, the secondhighest level for LEED.

TOTAL
2016

Since 2006

2016

Since 2006

11,400 38,800

17,300 87,300

1,060

1,600

3,600

8,100
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Resilient buildings. We recognize the potential impact of
extreme weather events and natural disasters, including
seismic activity, on our facilities. To protect our customers’
operations and adapt to climate change across the globe,
we invest in the latest innovations designed to ensure
the resilience of our buildings. Resilient buildings provide
value for our stakeholders because they withstandextreme weather and natural disasters more effectively,
and they reduce the cost and waste associated withdamage and reconstruction.
We maintain detailed emergency response andcommunications plans for each building in our global
portfolio, and we have construction crews and supplies on
standby in areas where natural disasters are more likely.
In earthquake-prone areas, such as Japan, our buildings
have seismic isolation systems that function as shock
absorbers during earthquakes. In addition, many of ourbuildings in Japan include early warning systems andbackup energy and water supplies.
Brownfield and infill. Our location decisions are driven
primarily by customer needs and preferences. As ourcustomers look to reduce transit times and associatedcarbon emissions and meet their customers’ expectations
for next-day and same-day delivery, we have theopportunity to invest in development on brownfield andinfill sites. Today, more than a third of our global portfolio
comprises infill assets, many of which are positioned toenable Last TouchTM delivery to consumers. These projects
often shorten delivery routes and spur local economic
development. We target buildings and development
opportunities in locations close to major transportation
hubs, such as ports, airports, railways and highways,
and seek sites in busy centers of commerce andconsumption. As necessary, we remediate environmental
contamination, put abandoned land to higher and better
use, and enhance or build new infrastructure.

Prologis Park Tres Rios, Mexico City, Mexico

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Energy-saving innovations
Innovative solutions in the areas of production,
consumption, storage and measurement of energy
afford Prologis opportunities to test and scale new,sustainable solutions for our customers. Across ourportfolio and our operations, we continually assessand deploy energy-related innovations, including those
designed to produce renewable energy, reduce energyuse, and measure and manage energy consumption.
Consumption monitoring. Tools to monitor andmanage energy consumption are essential forcustomers seeking to become more energy efficient.
Where we have access to whole-building data, weenter and track energy, GHG emissions and water andwaste data through the Urban Land Institute Greenprint
Center for Building Performance’s environmental
management platform: Measurabl. In our corporate
offices, we monitor energy consumption to better
understand our own energy-related GHG emissions
and work toward our goal of minimizing our impacts
on climate change. Prologis reported 2017 energy
data for 3,604 of our global assets, including 678
properties for which we had consistent year-over-year
information. Energy use decreased by 8.9 percent,Powering the future
DIRFT III DC115, completed in October 2017,
showcases what is possible. The facility,
which received BREEAM ‘Excellent’ (DesignStage) certification, includes a 56kWp rooftop
solar photovoltaic array and three 14kWh
Tesla Powerwall batteries, which eliminate theneed to draw power from the grid on summerdays and reduce operating costs for thebuilding’s occupiers.

which in turn decreased emissions by 4 percent from937,911 MTCO2e in 2016 to 900,380 MTCO2e in 2017.
Efficiency upgrades and changes in customer mix likely
influenced these values. (Data extracted May 1, 2018,from Measurabl.)
Smart meters. Gradually around the world, existinggas, electric and water meters are being replacedwith smart meters, which increase visibility into usage
patterns and create opportunities to boost efficiencies.
Building on a successful pilot in Central and Eastern
Europe, Prologis has begun to introduce smart metersin Prologis parks across the world while partneringwith software developers to increase the relevanceand viability of emerging technologies. Beyond
improving the ability to analyze energy consumption,
smart meters improve customer service by reducing
reliance on annual energy estimates and minimizing
unanticipated year-end reconciliation payments.
Solar power. Prologis has long been ahead whenit comes to placing solar-generating arrays on ourrooftops. In 2017, Prologis added 10 megawatts of solar
capacity to our portfolio in four countries, bringing thetotal to 175 megawatts in nine countries. Together,
these installations produce enough emissions-freeenergy to power approximately 26,000 average-size
U.S. homes annually. Our efforts have put us on track
to surpass our goal of 200 megawatts of solar across
our portfolio by 2020 and earned us third-place ranking
among corporate solar installers in the U.S. from theSolar Energy Industries Association (SEIA).

SOLAR
FOOTPRINT(MW)EQUIVALENT HOMES
POWERED PERREGION PER YEAR*

120

13,000

ASIA

33

6,000

EUROPE

22

7,000

TOTAL

175

26,000REGIONNORTHAMERICA93 MW / 113%

175
MW

increase in solar
generating capacityfrom 2011 to 2017

10 MW

increase in solar
footprint from2016 to 2017

82
2011

2017

Economic analysis: We are working with a consultant
on pilot projects to analyze the long-term financial,environmental and social benefits of a typical Prologis
building for Prologis, Prologis customers and thebroader community in dimensions ranging from watersavings to improved ventilation.
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Pioneering green technologies
Prologis’ track record of industry-leading innovation is
nowhere more apparent than in our global portfolio ofgreen technology and business process projects. In
buildings and in partnerships with customers acrossthe globe, we test new technologies and develop newprocesses that advance the sustainability goals andcapabilities of our company and our customers. These
efforts help to ensure that our company, customers andindustry stay ahead of what’s next.

Our recent refurbishment of 372,284 square foot Prologis Park Pineham DC3 in Northampton, UK, upgraded thebuilding so it exceeds current energy efficiency regulations by 29 percent.

Prologis Park Marston Gate DC9 in Milton
Keynes, UK, is testing Fabriq to measure energy
consumption. The building’s occupier uses thesystem to identify inefficiencies in building
operations and reduce costs.

In eight Prologis buildings in the Netherlands, Hello
Energy combines data sensors and narrowcasting
to provide energy consumption information to thebuilding’s occupiers.

Upgrading to cool roofs entails disposal of inplace roofing, which is often held in place withstone ballast. Our Chicago, Illinois, maintenancetechnicians are using recycled stone ballast to
shore up waterways, enhance landscaping andpave roadways.

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Programs for energy savings
Efficient lighting
Lighting is one of the main drivers of electricity
consumption in distribution centers. In recent years,
lighting technology has evolved rapidly, first withefficient fluorescent bulbs and then with light-emitting
diodes (LEDs). Installing LEDs can reduce energy
consumption and electric bills by more than 35 percent,yielding a rapid investment payback. In addition, thelong lifespan of LED fixtures reduces lighting-related
maintenance needs, thereby simplifying operations
and producing savings that we can pass on to
our customers.
By the end of 2017, 82 percent of our global operating
portfolio had efficient lighting,1 up from 78 percent at
the end of 2016. As technology improves, we continue
to experiment and work toward adoption of more
efficient lighting across the portfolio.

Cool roofs
Installing white or reflective roofing materials, known
as cool roofs, is a proven way to reduce energy
consumption inside buildings in certain climates. The
white, reflective surface of a cool roof reflects more
sunlight and absorbs less heat than a standard roof.
Cool roofs produce a range of benefits: energy savingsfor customers, reduced cost of roof maintenance andreplacement for building owners, and a reduction in theurban heat island effect—the warming of the air that
occurs as the sun’s heat is absorbed by roads, buildings
and rooftops. What’s more, cool roofing materials
cost essentially the same to purchase and install as
traditional roofing materials.
Prologis is an industry leader in cool roofs. In 2017, we
set a goal of installing cool roofing at 100 percent of
new developments and property improvements, where

LED STANDARD: A COMPETITIVE ADVANTAGE
Prologis has moved to an LED standard, resulting in the benefits enumerated below.

• At least 35% more energy-efficientthan traditional warehouse lighting• Long fixture life
with low light-level
degradation• Longer, better
product warranties• Enhanced sensing andcontrols can increaseenergy savings• Exterior LEDs
reduce common area
electricity costs• Fixtures free oflead and mercury• Significant
maintenance savings• Better light quality
and color rendition• Improved controllability
and instant on-off-on• Reduced electricalinfrastructure costs• Lowered radiated heat
• Reduced GHG
emissions

Minimum

35%

more energy-efficientfeasible considering climate restrictions. At the endof 2017, 40 percent of our global portfolio had cool orreflective roofing.

5-7xlonger life

1.	Prologis defines efficient lighting as T5 or T8 fluorescent and LED.

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Efficient with water and waste by design
Logistics facilities do not consume much watercompared with other building types. Even so, we
recognize the environmental and business gains thatcan be realized by adopting an integrated approach to
how we use and manage resources. Where possible,
we design landscaping that doesn’t require muchwater or which captures and recycles runoff. Many ofour buildings are equipped with water-saving features,such as low-flow toilets, motion-activated faucets andsystems to capture rainwater for irrigation.

Minimizing our use of materials and maximizing thequantity of materials we recycle is an important partof our culture. During the construction phase of every
certified development project, we set up dedicatedareas for collection and storage of recyclable materials
to divert waste from landfills. When possible, we use
materials that are either recycled or contain a high levelof recycled content. In addition, 25 to 30 percent ofbuilding material is locally sourced and manufactured for
new development projects.

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Governance

WASTE DIVERTED FROM LANDFILLSDURING CONSTRUCTION OF CERTIFIED BUILDINGS(2017)

95%

99%

78%

Construction waste diverted for the year sums to
3,300 tons for LEED-certified projects, 3,000 tonnes
for BREEAM-accredited projects and 2,800 tons for
CASBEE-assessed projects.

REDUCED WATER USE ATTRIBUTABLE
TO EFFICIENT FIXTURES INCERTIFIED BUILDINGS(2017)

61%
28%

As water becomes an increasingly precious
resource, efficient fixtures yield substantial
usage savings.

Prologis Mid Counties Distribution Center, Santa Fe Springs, California

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Driving efficiency through scale
Large global organizations use their scale torealize efficiencies and set standards through theirprocurement policies. Our procurement team ispositioning the company to better leverage our data,scale and spend on construction, operations, capitaland administrative expenses. We are working to ensure
consistent standards and practices across our platform,
achieve cost savings and share the resulting benefits
with our customers.

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World’s longest-range zero-emissions
electric buses produced at Prologis
facility in Industry, California

Buying local
We typically ensure that the two largest material
components of our facilities, concrete and steel,are purchased from local suppliers. Whether we arebuilding in China, Brazil or Belgium, we strive to workwith local and regional contractors. Partnering withlocal businesses allows us to invest in the communities
where we operate, spurs local employment
opportunities, and reduces shipping and transportation
costs and their associated environmental impacts.

Proterra’s buses travel up to 350 miles on asingle charge. The company’s grand opening
at Prologis Industry Distribution Center #4
coincided with delivery of its first Californiamade bus. The company has added 150 new
jobs to California’s economy.

FOCUSED ON THE CONSUMPTIONEND OF THE OVERALL SUPPLY CHAIN

ProductionRawmaterials
suppliers

Consumption

Retailcenters

International
manufacturing/
Order consolidation

Import/national
distribution center

Regional distribution
centerLast
Touch™
CustomerRaw materials
suppliers

Domestic
manufacturing/
Order consolidation

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Sustainability at work
Office sustainability programs
We implement strategies for reducing GHG emissions
across our business operations—from the energy
consumed in our offices to the way we travel to work.
Our sustainability programs are designed to engage
employees in sustainable practices through thecourse of their daily work. Employees representing
each of our offices globally interact regularly with oursustainability team to promote best practices andmake environmental stewardship part of our mindset.
Our employees’ actions help reduce our corporate
GHG emissions and advance our progress towards ourscience-based targets.

The Denver office’s commuter program provides
every employee with a mass transit pass to reduce
commuting expenses, travel time and the office’s
carbon footprint.

Sixty percent of our Amsterdam employees
take advantage of the company’s 100 percent
commuter subsidy to travel from home to workand back again.

Prologis parks across the UK facilitate ride sharing
among park workers to reduce our customers’
carbon footprints and help their employees
save money.

A new car-sharing website at three parks in
Hungary helps workers form carpools to build
relationships and reduce environmental impacts.

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GovernanceCorporate carbon footprint reporting
Corporate carbon footprint reporting is a business
imperative. Stakeholders, from customers to investors,
expect access to companies’ emissions data.
Since 2006, Prologis has reported our annual corporate
GHG inventory to CDP, a voluntary, leading registrythat helps businesses measure, track and report GHG
emissions. Understanding the impact our operations haveon climate change has led us to set, pursue and achievesignificant climate-related goals. In 2016, we beat our2020 goal of a 20 percent reduction in Scope 1 and 2 GHG
emissions from a 2011 basis by 2 percent. In 2017, we
continued to advance, delivering a 27 percent reductionin Scope 1 and 2 GHG emissions from a 2011 basis.
As a result, we are setting new goals to ensure
continued leadership and positive impacts. We havejoined other major companies in setting sciencebased targets (SBTs) through the Science-Based
Target Initiative (SBTi)—a collaboration between CDP,
World Resources Institute, the World Wide Fund for
Nature and the United Nations Global Compact. SBTsalign with the latest climate science for reducing
GHG emissions to levels that could keep the global
temperature increase versus a pre-industrial baseline
below 2 degrees Celsius. They give companies apathway to sustainable growth by specifying how
much and how quickly to reduce their GHG emissions.
Prologis is using SBTs to ensure we’re reducing our
impacts in a measured and effective manner. We havesubmitted our SBTs to the SBTi for acceptance.
To measure our progress, we calculate annual corporate
GHG emissions for our corporate and regional offices as
defined by the GHG Protocol:• Scope 1: Direct emissions from sources owned orcontrolled by Prologis• Scope 2: Indirect emissions associated with
consumption of purchased electricity and gas• Scope 3: All other indirect emissions not includedin Scope 2

track actual refrigerant gas leakage rates at companymanaged sites.

To meet our new goal, we will continue to identify andimplement sustainable business practices, involve
employees in environmental stewardship initiatives
and emissions reduction strategies, including lighting
upgrades, occupancy sensors, insulation, powering
down unused equipment and optimizing officetemperatures. In addition, we employ carbon offsets
and renewable energy credits (RECs). Carbon offsets
invest in projects, such as landfill gas to energy,
anaerobic digestion or fuel switching that would not
move forward without such financing. RECs are amechanism for purchasing renewable energy that iseither added to or pulled from the grid.

We report our operational carbon footprint to CDP,
and our Scope 1, 2 and 3 emissions are verified
independently by Lloyd’s Register Quality Assurance.
See page 42 for our external assurance statement.

In 2017, we offset 100 percent of our Scope 1 GHG
emissions with carbon offsets from the JB HuntIntermodal carbon offset project, which is industry
relevant because it works to improve the efficiency
of intermodal freight transport. We purchased RECs
through our partner, Renewable Choice Energy, tooffset 96.15 percent of our 2017 purchased electricity
from locally sourced projects in each region where ourcorporate offices are located.
For the past four years, we have partnered with
Anthesis Mosaic to calculate and track our carbon
footprint data. The results of our 2017 GHG inventory
reveal a year-over-year decrease in Scope 1 and 2 GHG
emissions of 5 percent and a corresponding decreasein emissions intensity per employee from nine to eight
metric tons. These figures include estimated fugitive
emissions for refrigerant gases at company-managedsites. Estimated fugitive emissions for refrigerant
gases are likely to exceed actual emissions associatedwith operation and maintenance of cooling equipment.
Prologis is continuing to evaluate opportunities to

GHG CHANGES
2015-2016 MtCO2e

2016-2017 MtCO2e

Scope 1

+227

+238

Scope 2

MB: -1986
LB: -656

MB: +13
LB: -565

Scope 3

MB: +340
LB: +461

MB: -1426
LB: -1497

Total

MB: -1419
LB: +32

MB: -1175
LB: -1823

0–1

MtCO2e*/FTE
MB=market-based, LB=location-based

GHG EMISSIONS SUMMARY
2015

2,307
7,835

14,896

Total MtCO2e*

4,754

9

MtCO2e*/FTE

2016

2,534

14,928

Total MtCO2e*

8,297

4,098

9

MtCO2e*/FTE

2017
Scope 1
Scope 2

2,772
6,800

3,533

Scope 3

13,105

Total MtCO2e*8

MtCO2e*/FTE*Metric Tons of Carbon Emissions (MtCO2e)23

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Promoting biodiversity
Biodiversity is integral to sustainability, so we work toensure the health of plants and wildlife in and aroundthe built environment.
By focusing on infill redevelopment, often with legacy
contamination issues, we promote biodiversity in
two key ways: (1) we clean up potentially harmful
ecosystem contaminants; (2) we recycle land.
Similarly, by building multistory warehouses in supply
constrained markets, we discourage sprawl and redirect
development to urban cores.
All new developments are subject to rigorous
environmental permitting processes, including
evaluation of sensitive habitats and protected species.
In our development processes, we adhere to local
codes and guidelines, including those governing
biodiversity, and we incorporate landscaping andbioswales designed to protect flora and fauna anddecrease contaminants in storm water runoff.
There’s a clear business case for biodiversity. Being agood and sensitive neighbor gives us the social license todevelop and operate in communities around the world.

The Hive Mind
A growing number of our facilities in France arebuzzing with apian activity. Bees are vital to a healthy
ecosystem, contributing to more than 80 percent ofplant and crop reproduction. As a first for our industry,
four Prologis facilities near Paris have beehives in theirgreen spaces. Collectively, they produced about 600
jars of honey that we distributed to our customers
in the summer of 2017. These initiatives support ourefforts to ensure local communities welcome Prologis
and remain receptive to our future plans for growth.
Beekeepers maintain hives at Prologis Park Moissy, Paris, France.

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A good neighbor
We strive to be a good neighbor because strong
relationships where we live and work increase
communities’ receptivity to growth and development,
which enables us to continue to serve our valued
customers. At Prologis, our vision for social
responsibility stretches beyond the walls of ourbuildings. While our primary business is ensuring theefficient movement of goods from manufacturers tomarkets on behalf of our customers, we never lose
sight of the fact that we impact peoples’ lives. Ourcommitment to social responsibility encompasses
all our stakeholders—employees, customers,
communities, suppliers and investors. We endeavor
to use our strength to help others become more
resilient—able to weather change, thrive in the faceof adversity and grow. Our employees demonstrate
their commitment by investing time and resources into
organizations that promote education, the environment,social progress and well-being.

Prologis volunteers take a walk with their physically challenged
neighbors on IMPACT Day 2017, Amsterdam, the Netherlands.

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GovernanceInclusion and diversity
Prologis has valuable properties around the world, but
our most valuable assets go home every night. They
are our team of 1,606 employees, and they are thefoundation for our success. Every employee at every
level in every location plays a vital role in ensuring
enduring value for our company. We set goals andobjectives for sustainability at the corporate level, but itis the actions of each employee that bring these goals
to life.
We demonstrate our commitment to our employees
by being a responsible and supportive employer. As
an equal opportunity employer, we uphold consistentand fair policies that respect cultural differences,recognize performance based on merit and reward
team members for their contributions. In 2017, Prologis
received the Seal of Distinction from WorldatWork, anonprofit HR association and compensation authority,
which recognizes organizations with strong total
rewards and positive workforce experiences.
At Prologis, inclusion and diversity (I&D) are core to
our strategy. To run and grow our business effectively,
we must recruit, develop and grow the best available
talent. Our customers and the communities in which
we operate are remarkably diverse, and a workplacethat mirrors our diverse customers and communities
will help ensure that the full breadth of ideas andperspectives are available to address challenges andpursue opportunities. We know that people achieve
their maximum potential when they can be themselves,
so we are working to ensure that our culture is open to
and inclusive of everyone.
In 2017, Prologis changed its compensation structure toinclude I&D as a bonus metric. At the board level, thecompensation committee was renamed the Talent andCompensation Committee, and its charter amended toinclude an emphasis on I&D.
We are committed to increasing our success with I&D.
To that end, in 2017 we created recruiting ambassadors
to reflect our diversity to potential new hires. We
also partnered with Urban Land Institute’s Women’s
Leadership Initiative and the Forte Foundation, anonprofit consortium of leading companies and top
business schools working together to launch women
into fulfilling careers through access to education,
opportunities and a network of successful mentors.
Our European operations signed on to the Real Estate
Balance commitment to diversity, an organizationcommitted to seeing 33 percent of the industry’s senior

GLOBAL WORKFORCE IN 2017
BY REGIONBY CATEGORY (PERMANENT)

Americas

EuropeAsia

Full TimePart TimeTOTAL EMPLOYEES

Women

498

196

124

794

24

818

Men

463

170

155

785

3

788

*Data has been compiled by Human Resources. Please note that interns are not included in this count to be consistent with otherannual reports/surveys. Number includes personnel in our China platform, including those under Wholly Foreign-Owned Enterprises.

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Commitment at thehighest level
For Prologis CEO Hamid Moghadam, I&D ispersonal. When he graduated from businessschool in 1980, he had difficulty finding a job.
“It was a time that it was really bad to be an
Iranian-American in this country, because wewere in the throes of the hostage crisis,” hesaid. “And I’m sure that I suffered from somediscrimination at that point in time. So, I made ita point where if I could ever get in a position to
make a difference, I would.”

positions occupied by women by 2020.
Since the 2014 launch of Breakthrough, the company’s
global grassroots gender-diversity network, Prologis
has updated its parental leave policy in the U.S. andlaunched Bias in Decision-Making training acrossthe organization. Breakthrough was recognized
as a Promising Practice by the 2017 Gender
Equality Challenge.
Externally, Prologis encourages gender diversity in thereal estate industry by partnering with the Urban Land
Institute’s Women’s Leadership Initiative to sponsor 10
emerging women leaders in real estate. This programis designed to increase gender diversity across theindustry, not just at Prologis.

1,606
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Socially engaged
At Prologis, our culture is characterized by a genuine
spirit of caring and a deep commitment to giving
generously. In 2017, Prologis was named one of the
100 largest Bay Area Corporate Philanthropists by the
San Francisco Business Times. Around the world, as
individuals, as teams and as a company, Prologis acts
to give people, institutions and communities the tools
and resources to improve lives. Beyond giving our
employees pride in the company, these efforts enhance
our reputation as a responsible and caring presence inthe communities in which we operate.

Employee volunteer programs
Every year, each employee is fully sponsored by
Prologis to volunteer for four business days: two atcompany-sponsored events, one at an organizationof the employee’s choice and one on IMPACT Day.
IMPACT Day, our global day of service, is the company’s
signature event. Every year on a Friday in May, the entire
Prologis community spends a full day giving back inpartnership with charities in our local communities. From
Guangzhou to Denver, from Sao Paolo to Paris, our teammembers anticipate and take pride in this special day.
In an example of Prologis’ enduring commitment tothe communities in which we operate, three Prologis
property managers in Los Angeles volunteered in
the International Trade Education Program (ITEP)
for high school students in Carson, California. ITEP
connects local high school students to potential career
opportunities in the logistics industry through career
exploration activities, mentoring and scholarships. The
three property managers taught students about setting
goals, interviewing techniques and how to craft awinning resume.

Prologis Foundation
Established in 2001, the Prologis Foundation provides
financial support to charitable organizations focusedon education, the environment and human welfare.
The foundation has a matching gift program todouble employee contributions to 501(c)(3) nonprofit
organizations, schools and universities, and the Dollars
for Doers program pairs employee donations of timewith funds from the Prologis Foundation.

Space for GoodIMPACT Day 2017, Paris, France

Prologis developed the Space for Good program toprovide temporary rent-free space in our distribution
facilities to help charitable organizations address
seasonal and short-term needs and provide disaster
relief—to the extent we have vacancies in a relevantmarket. Space for Good demonstrates Prologis’commitment to corporate citizenship and willingness toform meaningful public/private partnerships in service
to our communities.

IMPACT DAY: GLOBAL DAY OF SERVICE

1,304

IMPACT Day 2017, Madrid, Spain

Employees volunteered

8,383
Total volunteer hours

36
Nonprofit organizations served

IMPACT Day 2017, Shanghai, China
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Committed to giving back

225+
36,383650,000

nonprofits supported by
the Prologis Foundation
hours donated by Prologis
employees over the course of
five IMPACT Days since 2013square feet provided
to local nonprofits

Prologis raised more than $100,000 for Junior
Achievement Rocky Mountain, donating more thanany other participating company in 2017. Prologis
Denver employees also volunteer with Junior
Achievement. Since 2001, they have taught 423
classes on work-readiness, entrepreneurship andfinancial literacy.

In March 2017, seven team members from our
Amsterdam office working through Friendsof Volunteers Initiative Nepal built latrines for
Nepalese families, improving living conditions forsome of the 57 percent of Nepal’s rural population
without sanitary facilities.

After Hurricane Harvey and other storms damaged
cities across North America, the Prologis
Foundation donated $150,000 to the American
Red Cross, matched up to $50,000 in employee
contributions and donated 400,000 square feet tononprofits assisting with recovery efforts.

In July 2017, 2,500 riders from around the world
participated in the 28th annual Courage Classic,
a two-day cycling event and fundraiser forChildren’s Hospital of Colorado. Prologis was
the event’s presenting sponsor for the eighthyear running. Prologis team members, 109 in all,raised $153,000 in donations and $300,000 from29 corporate sponsors. Since 2010, Prologis has
raised more than $2.1 million for the hospital.

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A positive work environment
At Prologis, we encourage our employees to bring theirwhole selves to work and view the office as a place
where they can develop as people and professionals. To
that end, we invest in initiatives that encourage learningand development, offer competitive and progressive
pay and benefits, and support employee wellness
programs. Our culture promotes diversity of thought,
and we are committed to developing an engaged andresilient workforce who will fuel our future growth.

Learning and development
Investing in our employees’ education and development
isn’t just a good human resources policy, it’s a goodbusiness policy. When employees augment theirskills and deepen their professionalism, they solve
problems more readily, work more effectively withothers, better adapt to change and increase business
impact. We promote lifelong learning and encourage
lateral assignments, so our employees broaden theirknowledge of our business and enrich their ability tounderstand the perspectives of our stakeholders.
Prologis’ Learning and Development team has built an
extensive curriculum focused on five areas:
1. Career enrichment: Helping all employees build
basic business competencies critical to success,such as presentation skills, effective communicationand time management
2. Leadership development: Preparing future leaders,
expanding overall leadership capacity and cultivating
leadership skills in high-potential employees
3. Real estate training: Giving all employees theopportunity to better understand our industry andensuring ongoing enrichment for those involved inreal estate operations
4. Systems and technical: Facilitating understandingof core systems

5. HR and talent management: Focusing on topics
that include performance management, compliancewith local laws and onboarding
Training is delivered through a combination of classes
at Prologis offices, virtual classes and a library of selfpaced online classes available anytime and anywhere.

Governance

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Prologis recognized as an Employer
of ChoiceIn 2017, Prologis again earned the World at Work
Seal of Distinction, which is awarded every year
to companies across North America that set thestandard for employee engagement, which is a
key driver of business success.

Compensation and equal pay
Prologis employees receive a benefits package that
includes time off and holiday pay, health coverage,
parental leave, retirement savings plans, life anddisability insurance, continuing education opportunities
and wellness programs. We target compensation tomarket benchmarks that do not factor in gender, so ourcompensation is equitable and competitive for eachmarket and position.
Our comprehensive benefits package is designed
to improve quality of life, financial security and thebalance of work and home responsibilities. Standard
benefits include:• Medical, dental and vision insurance• Paid time off• Flexible spending accounts• Health savings account• Adoption assistance• Wellness program

Prologis team members, Denver, Colorado• Telemedicine• Parental leave• Life and disability benefits• 401K retirement plan with employer matching• Continuing education and reimbursement• Employee assistance program

The benefits listed to the left are available for all U.S.-based, fulltime employees. U.S.-based part time employees receive paid time
off on a prorated basis and are eligible for the Prologis 401k andEmployee Assistance Program. Because more than 50 percent of
Prologis employees are U.S. based, the U.S. is deemed Prologis’
most “significant location of operations.” Because no other country
qualifies as a “significant location of operations,” data from othercountries is not included here per GRI Standards.

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Updates to parental leave and adoption
assistance
Building on a strong, existing foundation, Prologis
expanded parental benefits starting in 2018. Previously,
Prologis provided up to eight weeks of maternity
leave at 70 percent of salary, and up to two weeks of
100-percent paid parental leave to all eligible parents
following a birth, adoption or surrogacy, as well as
up to $5,000 in reimbursements for eligible adoption
expenses. Effective in 2018, we provide up to 10 weeksof 100-percent paid parental leave following the birth ofa child, and adoption reimbursement up to $10,000.

Employee engagement
In August, we completed our fourth global employee
engagement survey, achieving an outstanding
98-percent participation rate. Among the key findings:• Employees have confidence in company leadership,highly favorable perceptions of their immediate
supervisors, are committed to the company’s
success and understand how their work aligns with
Prologis’ strategy.
• Employees are proud of Prologis’ focus on ourcustomers, our IMPACT values and how we work
together to improve the communities where wework and live.
• Employees are energized by their jobs, feel
challenged and would recommend Prologis as agreat place to work.
• By reducing bureaucracy and administration, we canincrease productivity and strengthen employees’
focus on strategic business objectives.

Prologis team member David Huajardo, Oakland, California

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Wellness initiatives
Prologis believes that promoting health and well-being
encourages higher productivity at work and helps
people maintain a happy, healthy lifestyle overall. That’s
why we incorporate wellness into the design andoperations of our facilities. We have ergonomic desks
and computer equipment. Some of our offices feature
workout rooms and acoustical and indoor air quality
comfort controls. Managers have the option of green
cleaning supplies and healthy snacks.
We are also mindful of the well-being of our customers
and their employees. Our facilities have excellent
ventilation, daylighting, efficient lighting and otherfeatures that promote wellness. In 2017, we launched
two WELL Building Standard pilots—one in the U.S.
and the other in the EU—and initiated a project with
the International WELL Building Institute to definecertification standards for logistics buildings.
Prologis sponsors and participates in charitable events,
such as the Courage Classic bicycle tour, and holds

company-wide health challenges. The annual Healthy
Steps Challenge encourages colleagues across theglobe to take 10,000 steps per day. Prizes are awarded
to individuals and the team with the most steps.
Prologis works with a leading health management
service provider to give employees the latest health andwellness content, educational programs and an online
community for motivation. A health assessment andbiometric screening evaluate participating employees’
lifestyles and potential health risks. Individual
counselors help employees maintain or improve healthand well-being. Whether an employee’s goal is abetter health score, more energy, weight loss, stress
reduction or an improved diet, the Prologis wellness
program can help.
Prologis demonstrates its concern for employee
financial wellness by offering one-on-one financial
coaching to all employees at no cost.

Prologis women spring into action for Courage Classic, an annual fundraiser for the Children’s Hospital of Denver.

In 2016, GRESB piloted a module that measures realestate companies on their leadership and actions
related to the health and well-being of their employees,
customers and surrounding communities. Prologis has
ranked first among industrial real estate respondents forthe past two years.

HEALTHY STEPS FIFTH ANNIVERSARY

520
employees354
employees averaged the 10,000 steps

336,241,480
steps in eight weeks

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High standards
Prologis is committed to upholding the strictest ethicalstandards and compliance in all our business dealings.
Our governance structure includes built-in checks andbalances to ensure accountability and transparency.
The following section describes how we ensuretransparency and openness of reporting; manage
corruption, bribery and non-compliance risks; andsafeguard the integrity of our supply chain.

Prologis’ Peggy White and Erin Straight review plans in Charlotte, North Carolina.

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A culture of integrity
Corporate governance sets the framework for
how we manage our global business and how wecommunicate with investors and the public. Our
corporate governance practices create a culture of
enduring and uncompromising integrity. We maintainstrong oversight, collect and share vital information withexternal stakeholders and devote significant resources
to ensure we comply with all relevant laws, regulations
and standards. We take a comprehensive and proactive
approach to risk management. For example, Prologis
reports on our climate risk approach, aligned with
the new Task Force on Climate-Related Financial
Disclosures (TCFD) structure, through our Dow Jones
Sustainability Indices and CDP responses. We are proudthat our efforts have been recognized by third parties,
including Green Street Advisors, who has named us
the REIT industry’s corporate governance leader for 15
years running.

Risk management
At Prologis, risk management isn’t simply a corporate
function. It’s a mentality that is woven into every
aspect of our operations. Whether we are working
with customers and employees to deal with weather
disruptions or defining disaster recovery protocols, wetake pains to measure and mitigate all risks that might
affect our business and our stakeholders. Assessing,appreciating and preparing for risks of all kinds is crucial
to a culture of resilience.
We proactively manage financial, operational,organizational, external and macroeconomic risks througha competitive risk oversight framework that includes:

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Prologis named finalist for bestproxy statement• Executive management committee meetings
focused on strategic risks• A structured approach to capital deployment vetted
through weekly investment committee meetings• One of the strongest balance sheets in the REIT
industry• A dedicated and empowered cybersecurity teamcharged with dealing with the rising challenges ofdata protection and security

Prologis was a finalist in the Best Proxy
Statement category at the 10th annual
Corporate Secretary Corporate GovernanceAwards on November 9, 2017. Across 15
categories, Prologis was the only real estatecompany nominated as a finalist. Prologis’
second consecutive nomination was a greathonor and testament to our focus on strong
corporate governance.

• Rigorous internal and third-party audits that assess
the company’s controls and procedures• A centralized team, closely aligned with theircounterparts in each market, dedicated to managing
risk globally

Board oversight
In 2017, our board comprised 10 annually elected
members, nine of whom were independent, including
our lead director. Oversight of sustainability resides withthe board’s Governance and Nomination Committee. We
apply the same standards for performance, diversity andengagement to our board as we do to our broader team.
We use our board evaluation process to ensure that wehave the appropriate skill sets and board composition.
Board members take their responsibilities seriously andare actively engaged with the company. The board visits afield office every year to meet local employees, receives
regular reports from departments and interacts with arange of employees in informal settings.

• Board engagement with executive and risk
management teams, including risk assessment
mapping and one-on-one interviews between eachdirector and our risk management team.
FIBRA Prologis property tour at Prologis
Park Tres Rios, Mexico City, Mexico

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In 2017, the lead director and the head of thecompensation committee together with senior
management conducted outreach meetings withinvestors representing 70 percent of our publicstockholders. For a complete description of Prologis’
corporate governance practices and our approach to risk
management, please refer to our Proxy statement andour 2017 Form 10-K, or visit the Investor Relations pageon our corporate website.

Proxy access
We balance the interests of shareholders, directors
and management, ensuring that shareholders’considerations are fully and consistently represented.
In 2016, we adopted proxy access, which gives
shareholders the right to include their director
candidates in our proxy alongside those nominatedby the board. We are using the 3/3/20/20 market
standard for proxy access, wherein a group of up to
20 shareholders who have held at least 3 percent of
Prologis stock for at least three years may nominate up
to 20 percent of the board, which is two directors.

Proxy recognition
For the second consecutive year, Prologis was a finalist
for the Corporate Secretary Corporate GovernanceAwards best proxy statement. This national recognition
for strong governance was the culmination of an initiativethat started with outreach to Prologis shareholders andresulted in carefully orchestrated improvements thatfurther strengthened the Prologis proxy statement.

Executive compensation
We continue our focus on industry-leading and responsible
compensation practices, assessing and strengthening ourprograms in response to shareholder feedback. Recently,
we amended our plan to limit award size and added longterm vesting (seven years), increased vesting in annual
grants and promote plan awards. We also added inclusionand diversity as a bonus metric.
Prologis Park Torrance, Torrance, California

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External reporting
We report regularly on ESG issues to a number ofwidely recognized sustainability reporting organizations,
including CDP, the Dow Jones Sustainability Indicesand the Global Real Estate Sustainability Benchmark. In
addition, we provide comprehensive public disclosuresthrough our annual sustainability report.

Global compliance
We conduct business fairly and in an ethical mannerthat is in full compliance with all laws and regulations.
The Prologis board of directors has adopted a Codeof Ethics and Business Conduct and a Global AntiCorruption and Foreign Corrupt Practices Act Policy,
which is applicable to all employees and the board. Every
Prologis employee certifies, acknowledges and accepts
our Code of Ethics and Business Conduct. All new hires
receive extensive ethics training at the commencementof their employment. And the company provides regular
ethics training in every country where we do business– in person, via video conference, and through regular
updates on our intranet. In 2017, 100 percent of ouremployees participated in such training, in their local
language where appropriate. Our Code of Ethics andBusiness Conduct and our Global Anti-Corruption andForeign Corrupt Practices Act Policy have been translated
into 16 languages and are posted on our intranet toensure these documents are well understood by Prologis
employees around the world. For more information,
see the 2017 Prologis Annual Report and our Prologis
Proxy Statement.

Standards and integrity
Corruption is an obstacle to trade and undermines fairbusiness practices. Prologis has a zero-tolerance policy
for bribery and corruption. We act with professionalism,
fairness and integrity in all our business dealings andrelationships. Our employees and board members
receive regular training—in their local language where

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appropriate—on our Code of Ethics and BusinessConduct, information security, global fraud prevention
and the Global Anti-Corruption and Foreign Corrupt
Practices Act policy to ensure they remain current on
ethical issues and corporate expectations.
In 2017, Prologis received inquiries directly throughour internal Ethics Helpline, a confidential third
party-administered hotline for reporting suspected
Code of Ethics and Business Conduct violations.
Prologis received additional inquiries for suspectedviolations through regular communication channels
with management. Of 14 total inquiries, six were
unsubstantiated and one remains an ongoinginvestigation. For each of the seven substantiatedinquiries, appropriate action was taken and the matters
are considered resolved. We had no breaches ofantitrust in 2017:

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Training for compliance
Prologis provides regular ethics training in every
country where we do business and in local
languages where appropriate, and the Prologis
Code of Ethics and Business Conduct has beentranslated into 16 languages to promote global
understanding of our ethical obligations.

• 100% of global operations are assessed for risks
related to corruption.
• Our internal control processes assessed ouroperations for risks related to corruption, including
risks related to documentation for competitive
bidding of contract work, the proper monitoringof actual costs against budgets and forecasts, thecomprehensiveness of corruption policies andtraining and rigor of investigations and enforcementof policy violations, the sufficiency of the “toneat the top” to combat corruption and the conductof proper third-party due diligence. After the risk
assessment, it was determined that Prologis does
not have any significant risks related to corruption.
• Regarding legal actions for anti-competitive behavior,anti-trust and monopoly practices, there were no
legal actions in 2017, pending or completed, andtherefore no outcomes to report.

Prologis team members in San Francisco, California

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ESG in action
At Prologis, ESG is integral to our business. To advance environmental stewardship, we provide our customers with the modern, sustainable buildings they prefer; to supportsocial responsibility, our employees partner with customers and investors; to ensure strong governance, we work continuously to identify and mitigate risks, and communicate
with transparency.
The Board Governance and Nomination Committee has direct oversight over ESG and our ESG team, comprising an SVP and VP who report to Prologis’ Chief Legal Officer.
The ESG team aligns and advances ESG strategies and tactics across the organization. Our strong ESG practices support our corporate commitment to enduring excellence,advance our longstanding focus on exemplary customer service and impact every level of our organization.

Board of Directors
Executive Committee
ESG TeamAccounting

Investors

Communications

Legal

Development

Marketing

Funds

Operations

Human Resources

Procurement

Information
Technology

Property
Management

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Human rights, affirmative action andequal opportunity
Prologis’ policies include a commitment to protecting
human rights. We have adopted responsible workplace
practices and endeavor to conduct business operations
in a manner free from complicity in human rights
abuses. In particular, Prologis’ core values and culture of
integrity (I), mentorship (M), passion (P), accountability(A), courage (C) and teamwork (T)—IMPACT—embody
a commitment to ethical business practices andstrong corporate citizenship. It is Prologis’ policy andpractice to provide equal employment opportunities
to all individuals, free of discrimination regardless ofrace, gender, gender identity, creed, religion, sexual
orientation, marital status, national origin or ancestry,sex, age, physical or mental disability, medical conditionor veteran status.

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our requirements, including insurance coverage, safety
programs, financial stability, quality systems, terms andconditions, sustainability, Supplier Code of Conduct andregulatory compliance. The partner’s platform ensurestransparent, effective supply chain management
through a rigorous prequalification process to improve
supplier performance, validate safety data, increase
operational efficiencies and reduce risk.

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For a complete description of Prologis’ corporate
governance practices and approach to risk
management, please refer to our Proxy statement
and 10-K or visit the Investor Relations page on our
corporate website.
1.	Avetta is Prologis’ global supply chain risk management auditor.

Supply chain integrity
Prologis practices vigilant environmental stewardshipand provides employees a safe and healthy working
environment. We expect our partners and suppliers toadhere to these same principles. Our Supplier Code of
Conduct, launched in 2013, has been translated into four
languages. Prologis will continue to develop systems
for monitoring and reviewing supplier adherence to thecode of conduct and report our findings.
Prologis general contractors globally are required toprovide accident and incident data, as well as reports
on any workplace safety or environmental violations
as part of the prequalification process for working
with Prologis. We plan to improve our processes
by automating prequalification documentation foreasier access to data and more consistent trackingof suppliers.
Prologis partners with a global supply chain risk
management auditor1 to ensure our suppliers meet all

Prologis team members in Beijing, China

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About this report
Prologis’ 2017 Sustainability Report provides acomprehensive overview of our company’s ESG
initiatives and summarizes the progress we’ve madetoward meeting our goals and commitments across ourportfolio and operations. The report is global in scope
and addresses our 2017 activities in the Americas,
Europe and Asia.
This report marks our 10th consecutive year ofreporting to Global Reporting Initiative’s (GRI)
Sustainability Reporting Guidelines and theConstruction and Real Estate (CRE) Sector Disclosures.
As a GRI Standards Pioneer, we are among the firstto adopt the new GRI Standards: global best practicefor sustainability reporting. In doing so, we aredemonstrating our full support for GRI’s mission toempower decisions that create social, environmental
and economic benefits for everyone. A GRI Standards
Content Index is included on page 43, and specificdisclosures are included throughout the report.
Information and data for years prior to 2017 have been
included where available and relevant.

Prologis Park 70, Denver, Colorado

Prologis has applied GRI’s Principles for Defining Report
Content. These principles include GRI’s guidance on
defining material aspects and boundaries to identify
the most relevant ESG impacts as they pertain to ourbusiness and stakeholders. The basis for reporting on
joint ventures, subsidiaries, leased facilities, outsourced
operations and other entities that can affect periodover-period comparability is detailed in our 2017 Annual
Report and in our Form 10-K, which is filed with the
U.S. Securities and Exchange Commission and is alsoavailable in the SEC Filings section of Prologis’ website
at http://ir.prologis.com/ financial-results/sec-filings.
We provide data for our corporate operations and forthe facilities we own and lease to our customers.
Limitations include occupant operations on Prologis
properties. Although we strive to work with ourcustomers to enhance their sustainability measures,
their business activities fall outside the scope of
Prologis’ operational control and thus beyond theboundary of our performance-data reporting. In addition,
we do not report on the business activities of entities

over which we do not exercise direct operational
control, including our co-investment and joint venture
partners, service providers, customers, contractors,
suppliers and vendors.
This report has been externally assured by Lloyd’s
Register Quality Assurance (LRQA) using the AA1000
Assurance Standard (2008). LRQA interviewed membersof the Prologis executive committee and senior
management to ensure that this report complies with theprinciples of inclusivity, materiality and responsiveness.
LRQA also assessed the reliability of specified
sustainability performance information and verified our2017 GHG inventory using the World Resource Instituteand World Business Council on Sustainable Development
Greenhouse Gas Protocol. Our complete External
Assurance Statement is found on page 42.

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Stakeholder engagement
Sustainability is increasingly central to the business models and brands of leading companies worldwide. About 70 percent of our top 25 customers report their progress to one ormore of the major sustainability indices. Our stakeholder engagement model ensures mutual alignment around priorities and fosters ongoing dialogue that serves as the foundationfor enduring relationships.
STAKEHOLDERSEXPECTATIONS & INTERESTSENGAGEMENT

Employees• Employee empowerment• Benefits and compensation• Workplace efficiencies• Global employee
engagement survey• Global employee
intranet andquarterly town
hall meetings• IMPACT Day,
Prologis' global
day of service• Inclusion and diversity(I&D)• Learning and development(L&D)

Customers• Location• Supply chain efficiencies• Operational efficiency• Business partnerships• Alignment with end consumer• Annual customer
advisory meetings
in U.S. and Europe• Quarterly customer
sustainability advisory
council meetings• Dedicated business
partner contacts
in local offices• Programs
addressing labor
shortages• Semi-annual customer
satisfaction surveys• Sustainability
information andguidance included in
on-boarding process• In-house property
managers• Global customer
experience team innovating
to meet needs

Investors• Long-term value creation• Income and diversification• High-quality assets• Transparency• ESG• Quarterly
earnings calls• Investor forums,
regular meetings
with top executive
management,
conferences andproperty tours• Proprietary
research reports• Global Real Estate
Sustainability
Benchmark (GRESB)• Quarterly fund reports

Communities• Minimize environmental impacts• Economic growth• Job opportunities• Local partnerships• Investment in the community• Infrastructure improvements• Establishing relationships
with local communities• Meetings before, during
and after developmentof properties• Investing long termin critical locations• Employee
volunteerism inlocal communities• Donations to
nonprofit
organizations

Government• Compliance• Zoning• Permits and entitlements• Collaboration
on projects• Regular meetings
during permitting
processes• Partnering withlocal government

Suppliers• Business relationships• Development opportunities• Project development• High standards for
suppliers and safetycompliance• One-on-one meetingsand calls• Procurement opportunities

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Aligned with United Nations sustainable development goals
Established in September 2015, the UN Sustainable Development Goals (SDGs) are an international agenda to achieve sustainable development by 2030.
AFFORDABLE AND CLEAN ENERGY

INDUSTRY, INNOVATION AND INFRASTRUCTURE

CLIMATE ACTION

SDG CATEGORY

7

9

13

SDG TARGET

By 2030, increase substantially theshare of renewable energy in the
global energy mix.

Develop quality, reliable, sustainable and resilient infrastructure, including
regional and transborder infrastructure, to support economic development
and human well-being, with a focus on affordable and equitable access for all.

Strengthen resilience and adaptive capacity to climate-related
hazards and natural disasters in all countries.

TargetProgress

TargetProgress

TargetProgress

200 MWsolar by 2020

175 MW ofgenerating capacity
in nine countries,
equating to clean
power for 26,000
average homes
each year

100 percent of new development projects
with a goal of certification1

112 MSF of sustainablebuilding certifications across
304 projects in 17 countries

20-percent reductionof corporate GHG
emissions by 2020
from 2011 baseline

Exceeded 2020 goal in 2016
and continued the trend topost a 27-percent reduction
as of year-end 2017

100 percent cool roofing in new
development and property improvements
where feasible, given climate restrictions2

40 percent of operating
portfolio has cool orreflective roofing material

Science-based target

Committed to and inprocess of setting ascience-based target

100 percent energy-efficient lighting
across our operating portfolio

82 percent of portfolio has
efficient lighting

Resilience

Reduce vulnerability ofbuildings to extreme
weather events3

PROLOGIS TARGET& PROGRESS

1. Goal is to design to sustainable building certification standards or with sustainable design features as appropriate and in line with customer specifications.
2. Goal is to build 100 percent cool roofing in new development and property improvements where feasible, given climate restrictions.
3. As evidence of the resilience of our buildings and the strength of our risk management program and emergency response procedures, we incurred nocustomer business interruption loss in the 2017 Florida and Houston hurricanes and Mexico City earthquakes.

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Memberships and associations• Asia Pacific Real Estate Association (APREA)• Institute for Sustainability UK Green Building Council(UKGBC)• Real Estate Roundtable (RER)• Institute of Real Estate Management (IREM)• Society of Industrial & Office Realtors (SIOR)• Building Owners and Managers Association (BOMA)• International Facility Management Association(IFMA)• The European Association for Investors in NonListed Real Estate Vehicles (INREV)• Council on Foundations (COF)• Japan Institution of Logistics Systems• German Association for Sustainable Construction(DGNB)• National Association of Industrial & Office Parks(NAIOP)• U.S. Department of Energy’s Better Buildings
Challenge International Facility• Global Real Estate Sustainability Benchmark(GRESB)• National Association of Real Estate Investment
Trusts (NAREIT)• Global Reporting Initiative (GRI) Organizational
Stakeholder• National Brownfield Association• Association of Industrial Real Estate Brokers (AIRE)• Boston College Center for Corporate Citizenship(BCCCC)• Retail Industry Leaders Association (RILA)• U.S. Green Building Council (USGBC)• ULI Greenprint Center for Building Performance• Urban Land Institute (ULI)• Pension Real Estate Association (PREA)41

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External assurance statement
This report has been externally assured by Lloyd’s
Register Quality Assurance, Inc. (LRQA). Conclusions
and observations can be found in the full Report
Assurance Statement and Greenhouse Gas Emissions
Assurance Statement on Prologis’ website.

Report Verification - LRQA’s approachsummary
LRQA was commissioned by Prologis to provide
independent assurance on its 2017 Sustainability
Report to a moderate level of assurance and materialityof the professional judgment of the verifier using
AccountAbility’s AA1000AS (2008).
LRQA’s assurance engagements are carried out inaccordance with our verification procedure. The following
tasks though were undertaken as part of the evidence
gathering process for this assurance engagement:• Assessing Prologis’ approach to stakeholder
engagement to confirm that issues raised bystakeholders were captured correctly.
• Reviewing Prologis’ process for identifying anddetermining material issues to confirm that the rightissues were included in the Report.
• Auditing Prologis’ data management systems
to confirm that there were no significant errors,omissions or mis-statements in the Report.
• Interviewing members of the executive committee
and senior management in charge of Funds(FIBRA), Procurement, Human Resources, Risk
Management, Property Management and Legal.

GHG Verification - LRQA’s approach summary
Our verification has been conducted in accordancewith ISO 14064–3:2006, “Specification with guidancefor validation and verification of greenhouse gas
assertions” to provide reasonable assurance that
direct and indirect GHG emissions data and limited
assurance for the other indirect GHG emissions dataas presented in the Report have been prepared inconformance with the World Resources Institute/World Business Council for Sustainable Development
Greenhouse Gas Protocol: A corporate accounting
and reporting standard, revised edition (otherwise
referred to as the WRI/WBCSD Protocol).
The following tasks were undertaken as part ofthe evidence-gathering process for this verification
engagement:• Visiting Prologis’ office in Denver, Colorado,United States, and headquarters in San Francisco,California, United States, and reviewing processes
related to the control of GHG emissions data andrecords,• Interviewing relevant staff of the organization
responsible for managing GHG emissions data andrecords,• Verifying direct and indirect GHG emissions data andrecords back to source for the calendar year 2017,and• Verifying other indirect GHG emissions frombusiness travel and employee commuting at an
aggregated level for the calendar year 2017.

• Sampling specific source and aggregated data points
referenced in the Report.

Groundbreaking at
Prologis Park Grande,
Mexico City, Mexico

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GRI standards content index
DISCLOSURE

LOCATION IN REPORT OR URL

EXTERNAL ASSURANCEPAGEOMISSION

GRI 102: GENERAL DISCLOSURES 2016

102-1

Name of the organization

Prologis, Inc.

42

102-2

Activities, brands, products, and services

A straightforward business model

42

102-3

Location of headquarters

San Francisco, CA

42

102-4

Location of operations

A straightforward business model

42

102-5

Ownership and legal form

2017 Form 10-K

42

102-6

Markets served

A straightforward business model

42

102-7

Scale of the organization2017 Form 10-K

42

102-8

Information on employees and other workers

Inclusion and Diversity

42

26

102-9

Supply chain

Driving efficiency through scale

42

21

102-10Significant changes to the organization and its supply
chain

We had no significant changes to the organization’s size, structure, ownership or supply chain in
2017.

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102-11

Precautionary principle or approach

A culture of integrity

42

102-12External initiatives

CDP, CDP Commit to Action, DJSI, GRESB

42

102-13

Membership of associations

Memberships and Associations

42

41

102-14

Statement from senior decision-maker

CEO Letter

424102-15Key impacts, risks and opportunities

CEO Letter

424102-16

Values, principles, standards and norms of behavior

A culture of integrity

42

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102-18Governance structure

A culture of integrity
2018 Proxy Statement42

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102-40

List of stakeholder groups

Materiality assessment and alignment with GRI Stakeholder Engagement4211102-41

Collective bargaining agreement

Our employees are not represented by collective bargaining agreements with the exception of
those in France, where the country’s workforce falls under a collective labor agreement, and in
Brazil, where employees are covered under a collective bargaining agreement. Our employees inFrance and Brazil account for approximately 3 percent of our global workforce.

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102-42

Identifying and selecting stakeholders

Materiality assessment and alignment with GRI
Stakeholder Engagement

42

11
39

102-43

Approach to stakeholder engagement

Materiality assessment and alignment with GRI
Stakeholder Engagement

42

11
39

102-44

Key topics and concerns raised

Materiality assessment and alignment with GRI
Stakeholder Engagement

42

11
39

102-45

Entities included in the consolidated financial
statements

Prologis, Inc.

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102-46

Defining report content and topic boundaries

Materiality assessment and alignment with GRI
About this report

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9

9

9

33

11
38

All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.

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DISCLOSURE

LOCATION IN REPORT OR URL

EXTERNAL ASSURANCE

PAGE

102-47

List of material topics

Materiality assessment and alignment with GRI
Material Topics:• Energy• Emissions• Employment• Anti-corruption

4211102-48

Restatements of information

There are no restatements of information from previous reports.

42

102-49Changes in reporting

We performed a materiality assessment during 2017.

42

102-50

Reporting period

January 1, 2017 - December 31, 201742

102-51

Date of most recent report

Published June 201742

102-52

Reporting cycle

Annual42102-53

Contact point for questions regarding the reportsustainability@prologis.com

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102-54Claims of reporting in accordance with GRI
standards

This report has been prepared in accordance with the GRI Standards: Core option.

42

102-55GRI Content Index

GRI Content Index4243102-56External Assurance

External Assurance

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42

OMISSION

GRI 205: ANTI-CORRUPTION 2016, GRI 103: MANAGEMENT APPROACH 2016

103-1

Explanation of the material topic and its boundary

Materiality assessment and alignment with GRI

42

11

103-2

The management approach and its components

Materiality assessment and alignment with GRIGRI Content Index

42

11

103-3

Evaluation of the management approach

Materiality assessment and alignment with GRIGRI Content Index

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11

205-1

Operations assessed for risks related to corruption

a.
b.

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100% of global operations are assessed for risks related to corruption.
Our internal control processes assessed our operations for risks related to corruption, including risks
related to documentation for competitive bidding of contract work; the proper monitoring of actual
costs against budgets and forecasts; the comprehensiveness of corruption policies and training andrigor of investigations and enforcement of policy violations; the sufficiency of the “tone at the top”
to combat corruption; and the conduct of proper third-party due diligence. After the risk assessment,
it was determined that Prologis does not have any significant risks related to corruption.

GRI 302: ENERGY 2016, GRI 103: MANAGEMENT APPROACH 2016

103-1

Explanation of the material topic and its boundary

Materiality assessment and alignment with GRI
Leading through action
Programs for energy savings
Corporate carbon footprint reporting

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11
14
19
23

103-2

The management approach and its components

Materiality assessment and alignment with GRI
Leading through action
Programs for energy savings
Corporate carbon footprint reporting

42

11
14
19
23

103-3

Evaluation of the management approach

Materiality assessment and alignment with GRI
Leading through action
Programs for energy savings
Corporate carbon footprint reporting

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11
14
19
23

302-1

Energy consumption within the organization

Corporate carbon footprint reporting
Data snapshot
Source of the conversion factors used: The Greenhouse Gas Protocol and IPCC Fifth Assessment Report

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23
46

All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.

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DISCLOSURE

LOCATION IN REPORT OR URL

EXTERNAL ASSURANCE

PAGE

302-2

Energy consumption outside of the organization

Leading through action
Programs for energy savings
Data snapshot
Source of the conversion factors used: The Greenhouse Gas Protocol and IPCC Fifth Assessment Report

42

14
19
23

302-3

Energy Intensity

Data snapshot
Organization-Specific Metric for Ratio: MtCO2e/FTE

42

46

OMISSION

GRI 305: EMISSIONS 2016, GRI 103: MANAGEMENT APPROACH 2016

103-1

Explanation of the material topic and its boundary

Materiality assessment and alignment with GRI
Leading through action
Programs for energy savings
Corporate carbon footprint reporting

42

11
14
19
23

103-2

The management approach and its components

Materiality assessment and alignment with GRI

42

11

103-3

Evaluation of the management approach

Materiality assessment and alignment with GRI

42

11

305-1

Direct (Scope1) GHG emissions

Corporate Carbon Footprint Reporting
Data Snapshot
GWP Source: IPCC Fifth Assessment Report

42

23
46

305-2

Energy indirect (Scope 2) GHG emissions

Corporate Carbon Footprint Reporting
Data Snapshot
GWP Source: IPCC Fifth Assessment Report

42

23
46

305-3

Other indirect (Scope 3) GHG emissions

Corporate Carbon Footprint Reporting
Data Snapshot
GWP Source: IPCC Fifth Assessment Report

42

23
46

305-4

GHG emissions intensity

Corporate Carbon Footprint Reporting
Data Snapshot

42

23
46

Biogenic CO2 emissions
not applicable to Prologis’
business (business
operations do not use or
combust biomass)

Biogenic CO2 emissions
not applicable to Prologis’
business (business
operations do not use or
combust biomass)

GRI 401: EMPLOYMENT 2016, GRI 103: MANAGEMENT APPROACH 2016

103-1

Explanation of the material topic and its boundary

Materiality assessment and alignment with GRI
A positive work environment

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29

103-2

The management approach and its components

Materiality assessment and alignment with GRI
A positive work environment

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11
29

103-3

Evaluation of the management approach

Materiality assessment and alignment with GRI
A positive work environment

42

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29

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

A positive work environment
a. Benefits provided for U.S.-based employees:-- Medical, dental, and vision insurance-- paid time off: part-time employees receive PTO on a prorated basis-- flexible spending accounts for medical purposes-- life and disability benefits-- retirement plans and contribution: part-time employees (20 Hrs/week) are eligible for 401k-- parental leave-- continuing education and reimbursement-- employee assistance program: part-time employees are eligible for EAP
b. The United States is considered the most “significant location of operations” due to thefact that over 50% of all international employees are based there. Other countries are notconsidered “significant locations of operation” because employees are spread throughout
other countries, and are therefore not included in this data as per GRI Standards.

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29

All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.

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JANUARY 1-DECEMBER 31, 2017

Data snapshot
GENERAL

Charitable donations$2 million

Cool roofs

40% of portfolio

Energy efficient lighting1

82% of portfolio (based on 97% surveyed)

Office waste and recycling

376,000 total pounds of waste and recycling with five corporate offices reporting

Office water use

5.26 million gallons used with 14 corporate offices reporting

Solar energy

175 MW of generating capacity in nine countries

Space for Good (space
donated to charitableorganizations)• 84 months of rent-free space• 19 nonprofits benefiting• $1.3 million in in-kind rent
• 650,000 square feet donated to local nonprofits

Sustainable building
certifications1• 112 million square feet• 304 projects in 17 countries

Sustainable certification
waste diversion• LEED-certified projects diverted 78% of their construction waste, resulting in 3,300 tons spared from landfills.
• BREEAM-accredited projects in the UK diverted 95% of their construction waste, resulting in 3,000 tonnes ofwaste spared from landfills.
• CASBEE-assessed projects in Japan diverted 99% of their construction waste, resulting in 2,800 tons spared fromlandfills.

Sustainable certificationwater reduction• Fixtures installed in our LEED certified projects reduced water use by 28% versus standard fixtures, resulting inestimated savings of 1.5 million gallons.
• Fixtures installed in our UK BREEAM certified projects reduced water use by 61% versus standard fixtures

Volunteer hours

Over 11,200• Includes 8,383 hours on IMPACT Day, benefiting 38 nonprofits working in education, human welfare and theenvironment

Prologis Human Rights
Statement

For Prologis’ Human Rights statement, please see page 37 of the report.

1

1

GRI 102: GENERAL DISCLOSURES 2016

102-8

Total number of employees by employment contract (permanent and temporary), by gender.

Type
Permanent

Male
788

Female818

102-8

Total number of employees by employment contract (permanent and temporary), by region.

Region (all permanent)
Americas
Europe
Asia
Total

Male
463
170
155
788

Female
498
196
124
818

102-8

Total number of employees by employment type (full time and part time), by gender.

Type
Permanent Full Time
Permanent Part Time
Total

Male
785
3
788

Female794
24
818

All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.
1. Cumulative as of December 31, 2017.

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GRI 205: ANTI-CORRUPTION 2016

205-1

Total number and percentage of operations assessed for risks related to corruption and significant risks related tocorruption identified through the risk assessment.

100% of global operations are assessed for risks related to corruption.
Our internal control processes assessed our operations for risks related tocorruption, including risks related to documentation for competitive biddingof contract work; the proper monitoring of actual costs against budgets andforecasts; the comprehensiveness of corruption policies and training andrigor of investigations and enforcement of policy violations; the sufficiencyof the “tone at the top” to combat corruption; and the conduct of proper
third-party due diligence. After the risk assessment, it was determined that
Prologis does not have any significant risks related to corruption.

GRI 302: ENERGY 2016

302-1

Total fuel consumption within the organization from non-renewable sources, in joules or multiples, including fueltypes used*
Fuel types used: Natural Gas, Propane, Motor Gasoline, Distillate Fuel Oil No. 2/Diesel Fuel

302-1

Total fuel consumption within the organization from renewable sources, in joules or multiples, including fuel types
used*
Fuel types used: Natural Gas, Propane, Motor Gasoline, Distillate Fuel Oil No. 2/Diesel Fuel

302-1

In joules, watt-hours or multiples, the total*:i.
electricity consumption
ii. heating consumptioniii. cooling consumption
iv. steam consumption

8,081 MWh607 MWh
0 MWh
0 MWh

In joules, watt-hours or multiples, the total*:v. electricity soldvi. heating soldvii. cooling soldviii. steam sold

0 MWh
0 MWh
0 MWh
0 MWh

302-1

41,584,246 MJ

257,825 MJ

302-1

Total energy consumption within the organization, in joules or multiples*

70,674,472 MJ

302-2

Energy consumption outside of the organization, in joules or multiples**

13,073,000 Gigajoules

302-3

Energy intensity ratio for the organization*

44,007 MJ/FTE

305-1

Gross direct (Scope 1) GHG emissions under operational control in metric tons of CO2 equivalent (CO2, CH4, HFCs,
PFCs included)

2,772 MtCO2e

305-2

Gross location-based energy indirect (Scope 2) GHG emissions under operational control in metric tons of CO2
equivalent (CO2, CH4, HFCs, PFCs included)

3,533 MtCO2e

305-2

Gross market-based energy indirect (Scope 2) GHG emissions under operational control in metric tons of CO2
equivalent (CO2, CH4, HFCs, PFCs included)

274 MtCO2e

305-3

Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent (CO2, CH4, HFCs, PFCs included)

6,800 MtCO2e

305-4

GHG emissions intensity ratio for the organization (CO2, CH4, HFCs, PFCs included)

GRI 305: EMISSIONS 2016

Market-Based
Location-Based

6 MtCO2e/FTE
8 MtCO2e/FTE*Anthesis Mosaic tool used for calculations/emission factors and EPA Ap 42: Appendix A used for conversions.
**Data extracted May 1, 2018 out of Measurable Environmental Management Platform and using EPA Ap 42: Appendix for conversions.
All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.

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GRI 401: EMPLOYMENT 2016404-2

Benefits that are standard for full-time employees of the organization but are not provided to temporary or part-time
employees, by significant location of operation

Standard benefits include:• Medical, dental and vision insurance• Paid time off• Flexible spending accounts• Health savings account• Adoption assistance• Wellness program• Telemedicine• Parental leave• Life and disability benefits• 401k retirement plan with employer matching• Continuing education and reimbursement• Employee assistance program
The above benefits are available for all U.S.-based, full-time employees. U.S.based part-time employees receive PTO on a prorated basis, are eligible for401k and are eligible for the Employee Assistance Program.
The United States is considered the most “significant location of operations”
due to the fact that over 50% of all international employees are based there.
Other countries are not considered “significant locations of operation”
because employees are spread throughout other countries, and are therefore
not included in this data.

All data within this report is as of December 31, 2017 unless otherwise noted. GRI topic area headings as of 2016 refer to GRI reporting requirements published as of 2016. They do not indicate year of data reported.

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Engage with us
We value your feedback and welcome any
questions, comments or suggestions on thisreport and our performance.

Prologis team members celebrate IMPACT DAY 2017 in Solihull, UK.

Please send your feedback to:Pier 1, Bay 1
San Francisco, California 94111 USA+1 415 394 9000
sustainability@prologis.com

For more information, contact us at:www.prologis.com
www.linkedin.com/company/prologis
www.facebook.com/prologis

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Forward-looking statements
All data in this report is as of December 31, 2017 unlessotherwise specified. The statements in this release thatare not historical facts are forward-looking statements.
These forward-looking statements are based on
current expectations, estimates and projections about
the industry and markets in which Prologis operates,
management’s beliefs and assumptions made bymanagement. Such statements involve uncertainties
that could significantly impact Prologis results. Words
such as “expects,” “anticipates,” “intends,” “plans,”“believes,” “seeks,” “estimates,” variations of suchwords 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, acquisition activity, development activity,
disposition activity, general conditions in the geographic
areas where we operate, our debt and financial
position—are forward-looking statements. Thesestatements are not guarantees of future performanceand involve certain risks, uncertainties and assumptions
that are difficult to predict. Although we believe theexpectations in any forward-looking statements are
based on reasonable assumptions, we can give noassurance that our expectations will be attained, andtherefore actual outcomes and results may differ
materially from what is expressed or forecasted insuch forward-looking statements. Some of the factorsthat may affect outcomes and results include, but
are not limited to: (i) national, international, regional
and local economic climates, (ii) changes in financial
markets, interest rates and foreign currency exchange
rates, (iii) increased or unanticipated competition forour properties, (iv) risks associated with acquisitions,dispositions and development of properties, (v)maintenance of real estate investment trust status
and tax structuring, (vi) availability of financing andcapital, the levels of debt that we maintain and ourcredit ratings, (vii) risks related to our investments (viii)
environmental uncertainties, including risks of natural
disasters. Prologis undertakes no duty to update any
forward-looking statements appearing in this release.

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