2223
ESG
ReportCEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

AppendixContents
Letter from our Co-Founder,
Chairman and CEO

3

Overview of Our Business
Prologis at a glance
Goals and progress
Net zero update
Awards and recognitions

4
5
8
9
10

Ahead of What’s Next
What makes us different?
GovernanceSupply chain responsibility

11
12
15
19

Sustainable Logistics
Climate strategy
Driving sustainability for our customers
Green building design and construction

20
21
23
26

Our Inspired People
Employee engagement
Diversity, equity, inclusion and belonging
Employee health and safety

30
31
33
35

Resilient Communities
Stakeholder engagement
Economic and social impact

36
37
38

Community health and safety
Community involvement

40
41

Appendix
Performance data
Assurance statement
GRI index
SASB disclosure
TCFD disclosure
GHG emissions rebaseline
Forward-looking statements
Glossary and definitions

42
43
44
46
51
54
59
60
61

About this report
This report describes the 2022 performance of all Prologis-owned and -managed assets (exclusions are noted). It covers our two public co-investment
vehicles, FIBRA Prologis (FIBRA) and Nippon Prologis REIT, Inc. (NPR), and the seven private funds1 in our Strategic Capital business. Data is as ofDecember 31, 2022, except where noted.
This report was prepared in accordance with the Global Reporting Initiative (GRI) Universal Standards 2021 and covers the topics identified by our mostrecent materiality assessment. It aligns with the Sustainability Accounting Standards Board (SASB) 2018 Real Estate Standards and with the Task Force on
Climate-related Financial Disclosures (TCFD). LRQA, Inc. has provided limited assurance using the AA1000 AccountAbility Principles (AA1000AP 2018).
Please email esg@prologis.com with any questions or suggestions.

1.

Prologis Targeted U.S. Logistics Fund (USLF), Prologis U.S. Logistics Venture (USLV), Prologis European Logistics Fund (PELF), Prologis
European Logistics Partners (PELP), Prologis China Core Logistics Fund (PCCLF), Prologis China Logistics Venture (PCLV) and Prologis
Brazil Logistics Venture (PBLV).

On the cover:

Solar installation and electric truck charging stations
at Torrance Distribution Center, Torrance, California.
2CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Some forty years ago,
my partners and I had a vision for asustainable business. This was before anyone
had heard terms like “corporate responsibility”
or “ESG.” Our idea was to build longterm partnerships with our customers andcommunities. Our business would be basedon mutual value creation, trust and respect.
Our 2022-23 ESG report describes how far
we’ve come.
Customer centricity and net zero
Today, Prologis has the highest-quality
logistics real estate portfolio in the world,with 1.2 billion square feet in 19 countries. We
build, own and operate modern facilities in themost desirable locations and are seen as abusiness partner that is continually focused on
our customers’ needs.

Our Inspired People

Resilient Communities

Appendix

An engaged local partner
For four decades, Prologis has been acommitted community partner. Our local
teams work closely with local government andcommunity groups in both the development
and ongoing operation of our properties.
They are also active in a wide variety ofbusiness and nonprofit organizations.
Our commitment includes unique programs
like our Community Workforce Initiative,
where we provide workforce training, andSpace for Good, where we donate logistics
space to local nonprofits.

Through Prologis Essentials, a uniquesuite of solutions, we’re able to address
customers’ pain points in operations, energy +sustainability, mobility and workforce.

Leading for the future
Our employees are the foundation of our
success. We challenge them, invest inthem and help grow their skills. In return,they demonstrate high engagement witha score of 87%, according to our latest
engagement pulse survey. Our work indiversity and inclusion continues to drive
results: 49% of our global workforce are
women, and people of color account for
32% of our U.S. workforce.

When we decide to take on a challenge,
we set ambitious goals. That’s why we’ve
committed to achieving net-zero emissions
in our operations by 2030, and across ourvalue chain by 2040. Importantly, this work
supports our customers in their transition toclean energy and sustainable operations.

As we look to the future, we remaincommitted to innovation, transparency andleadership. We invite you to join us on thisjourney—to stay engaged and ask the toughquestions that will push us to the next level.
Your ideas and input will help us stay aheadof what’s next.

Sincerely,

Hamid R. Moghadam
Co-Founder, Chairman and CEO

3

CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Overview of Our Business

Prologis Global Headquarters,
San Francisco, California.
4CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Prologis at a glance
Prologis is the global leader in logistics real estate. Every day, all over the world, we help growing businesses scale their supply chains and tackle the
obstacles of time and space. Our innovative solutions cover many aspects of the logistics value chain, addressing customer needs in operations, energy +sustainability, mobility and workforce. Our approximately 5,500 logistics facilities are primarily located in high-quality global and regional markets to enable
more efficient supply chain networks. We serve 6,600 customers across two major categories: business-to-business and retail/online fulfillment.

Our global portfolio1
U.S.

Europe782 MSF
3,803 Buildings

240 MSF
1,087 Buildings

By thenumbers1

6,600

$196B

2,400+

1.2 BSF

9 funds

A3/A#73

B2B and retailcustomers

assets undermanagement (AUM)of space in 19 countries
6,600 B2B and retailcustomers

credit ratings

Other
Americas

80 MSF
332 Buildings

1.
2.
3.
4.

Asia

111 MSF
273 Buildings

2.8%

2

of the world’s GDP
flows through ourbuildings each year3

employees aroundthe worldcomprise ourStrategic Capitalbusinesson the S&P 500 Index

58

net promoter
score (a customer
satisfaction metric)4

As of December 31, 2022.
A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
Based on 2022 data per Oxford Economics report
Net promoter score (NPS) is an indicator of customer loyalty, ranging from -100 to +100. A higher score is desirable.

5CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Vision, mission and values
Our vision is “enduring excellence.” We arededicated to creating the next evolution oflogistics facilities and services to support
our customers’ growth. Our mission is to be
the leading logistics real estate company asmeasured by customer service, employee
engagement, financial performance andbalance sheet strength. Our core values are
Integrity, Mentorship, Passion, Accountability,
Courage and Teamwork (IMPACT).
Diversity, equity, inclusion and belonging(DEIB) are vital aspects of our work. We
describe our approach in Inspired People.
Strategy
We own, manage, lease and develop
properties with a focus on high-barrier, highgrowth markets. Our portfolio is focused on
the world’s most vibrant centers of commerceand our scale across these locations allows us
to better serve our customers’ needs.
With respect to sustainability and ESG, ourstrategy is to improve the resilience andefficiency of the global supply chain, creating
significant value for communities, customers
and individuals. Additional benefits to ourcompany include reduced risk, differentiationof our brand and increased revenue andtalent-recruitment opportunities. As partOur Inspired People

Resilient Communities

Appendixof our approach, we engage with industry
organizations to advance ESG best practices,
both in the REIT sector and in the broader
business community.
Real estate operations
Real estate operations include our rental anddevelopment operations as well as capital
deployment. With these capabilities, we build
logistics facilities to our customers’
requirements (build-to-suit) or to meetthe expected needs in a particular market(speculative). In 2022, we achieved a record$4.86B of development starts. Our
unparalleled land bank brings additional value
to the business and allows us to continuallydevelop in the world’s most desirable markets.
Strategic capital
Prologis is the only public logistics REIT witha significant strategic capital business. This
gives many of the world’s largest institutional
investors an opportunity to co-invest with us.
We operate nine co-investment vehicles:
three funds open to future investment, four
private funds and two Prologis-sponsoredpublicly traded funds, each focusing ondelivering industry-leading, risk-adjusted
returns with a superior investor experience.
At year-end 2022, nearly half of Prologis’
assets under management (AUM) were in
the funds.

Using a data-driven
and integrated
approach to ESG has
helped us to create
greater value for ourcustomers, investors
and communities.
Suzanne Fallender
Vice President, Global ESG

Prologis Essentials
With our Essentials platform, Prologis
has a unique ability to provide end-toend solutions in operations, energy +sustainability, mobility and workforce. With
Essentials, our customers can maximize
the value of the warehouse from day one.
Solutions include warehouse efficiency,
renewable energy, electric vehicle (EV)charging and workforce training.

6CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

AppendixYear in Review
Record revenue

We earned a company record of $5.97 billion
in revenue in 2022, driven by the strength of
our portfolio and business model.

Targeted growth

Global impact

We commissioned a study by the independent
advisory firm Oxford Economics, which found that
$2.7 trillion in goods pass through our distribution
centers each year. This represents 2.8% of the world's
gross domestic product (GDP) and 4% of the GDP in
the 19 countries where we do business.

Renewable energy

We completed the acquisition of Duke Realty Corporation,
expanding Prologis’ presence in key U.S. markets. Valued
at approximately $23 billion, the acquisition included
144 MSF of high-quality operating properties and 7 MSF
under development. We also closed the 1.59-billion-euroacquisition of the “Urban Spaces” portfolio on behalf of
Prologis European Logistics Fund (PELF): 128 buildings (12MSF) and six developments in key urban gateway locations.

Net zero

We increased our climate ambitions by announcing a goalto achieve net-zero emissions across our operations by
2030 and across our value chain by 2040. This goal isaligned with the Science Based Targets initiative’s (SBTi)
Net-Zero Standard and is supported by interim targets.

By year-end 2022, we surpassed 400 megawatts(MW) of solar generating capacity across our portfolio
and achieved the #2 spot for onsite solar in the U.S.,
according to the Solar Energy Industries Association.

Thought leadership

Community service

To showcase the incredible innovation taking place acrossthe global supply chain, we hosted our signature thought
leadership event, GROUNDBREAKERS, which featured
an array of forward-thinking supply chain leaders and wasviewed by more than 15,000 people around the globe.

Our employees donated more than 14,500 hours tocommunity organizations, including more than 8,500
hours on IMPACT Day, our annual global day of service.

7

CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Goals and progress
Our goals demonstrate our ambition, create accountability and drive alignment with our business strategy. They are influenced by our stakeholders andby frameworks such as the UN Sustainable Development Goals (SDGs). We increased our emissions-reduction and renewable energy goals in 2022, andannounced a new workforce inclusion goal in 2023.
SDG

1.
2.
3.
4.
5.
6.
7.

GOAL

STATUS

2022 PROGRESS

Net-zero emissions. Achieve net-zero emissions across our operations(2030) and value chain (2040) from a 2019 baseline. This goal is alignedwith the Science-Based Targets initiative’s (SBTi’s) Net-Zero Standard.1

On track

Reduced2 year-over-year Scope 1 and 2 emissions
by 53% (64% from our 2019 baseline) and Scope 3
emissions by 6% (20% from our 2019 baseline).

Carbon Neutral Construction. Achieve 100% carbon neutral construction
by 2025.

On track

Offset 40% of estimated construction-related
greenhouse gas (GHG) emissions.

Renewable energy. Install 1 gigawatt (GW) of solar capacity supported bystorage by 2025 (800 MW solar, 200 MW storage).

On track

Achieved 405 megawatts (MW) of installedcapacity. 3

Building certifications. Achieve a sustainable certification for every eligible
new development and redevelopment.4

On track

Achieved, or in progress of achieving, sustainablebuilding certifications for 100% of eligible projects.

LED lighting. Install 100% LED lighting in all warehouse and office spaceacross our portfolio by 2025.

On track

Achieved LED lighting across 71% of thewarehouse and office space in our portfolio. 5

Workforce inclusion. Achieve two DEIB certifications by 2025:
Management Leadership for Tomorrow’s “Black Equity at Work” and“Hispanic Equity at Work.”

On track

Established a new goal in 2023.

Community engagement. Achieve 75,000 hours of volunteer time
supporting our local communities around the globe by 2025 (2019 baseline).

On track

Donated more than 14,500 hours in 2022, bringing
our total to approximately 38,000 hours donatedsince 2019.6

Logistics workforce training. Train 25,000 people in logistics by 2025
(2018 baseline) through our Community Workforce Initiative.

On trackTrained 10,119 people in 2022, bringing the total toapproximately 21,000 people since 2018.7

Ethics. Ensure 100% of employees complete ethics training each year.

Achieved

Ensured that 100% of our employees completed
ethics training.

Details of our emissions re-baseline, completed in 2022, can be found in the report appendix. Validation that our current net-zero goal is aligned with SBTi’s Net Zero Standard is pending. Prior (validated) SBTi goals were: Reduce Scope 1 and 2
GHG 21% from a 2016 baseline by 2025 and reduce Scope 3 GHG 15% from a 2016 baseline by 2025.
Following the Duke acquisition, we consolidated direct operations (divested from Duke-occupied offices and sold mobile assets) and then, as required by the GHG Protocol, re-baselined GHG emissions to determine what they would have been ha dthe portfolios been combined in 2019, 2020 and 2021. Our 2022 consolidation of direct operations results in a 53% year-over-year decrease (64% from our 2019 baseline) in our 2022 reported Scope 1 and 2 emissions.
Within our owned and managed portfolio. Does not include properties from the Urban Spaces acquisition.
A project may receive a certification once built and stabilized. Due to customer requirements and/or the limitations of certain co-development agreements, a small number of projects are ineligible to receive a sustainable certification.
Within our owned and managed operating properties. Does not include properties from the Duke and Urban Spaces acquisitions.
Historical data, including cumulative total, has been updated. Previously reported data included staff time to support community programs.
Historical data has been updated. 2018-2019 data is not included in cumulative total. 2020-2022 data includes participants in the online program only.

8CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Net zero update
In June 2022, we announced a goal toachieve net-zero emissions across ouroperations and value chain (Scopes 1, 2
and 3) by 2040. This goal is aligned with
the SBTi’s Net-Zero Standard. It makes us abetter partner to our customers, who are also
working to reduce their carbon footprints.
At year end, we reported progress against
several interim targets:− 1 GW of solar, supported by storage, by2025. At year end, we had 405 MW ofsolar, up from 285 MW at year-end 2021.
− Carbon-neutral construction by 2025. We
purchased carbon offsets for approximately
40% of our 2022 construction-related GHG
emissions, an increase from 20% in 2021.
We also completed life cycle assessments
for six distribution centers to improve ourunderstanding of our construction-related
emissions.
− Net zero for operations by 2030. In 2022,
we are reporting a year-over year decreaseof 53% (64% from our 2019 baseline) in our
Scope 1 and 2 (operational) emissions.1
We also updated our design standards for
new buildings and retrofits: Every eligible
development or redevelopment will berooftop-solar ready. In addition, where feasible,
we require the installation of more efficient
lighting and the electrification of onsite
equipment. For new construction, a lifecycle
1.

Achieve Net Zero by 2040
Deploy 1 GW
of onsite solar

Committed to
net zero andlaunched key
partnerships

supported bystorage

Scopes1, 2 & 3

Net zero for
operations
Scopes 1 & 2

Submitted target
to Science Based
Targets initiative
for validation

2022

Net zerofor value
chain

Carbon neutral
for construction
and operations

2025

analysis of the GHG impacts of the building
must be completed and the building must be
made EV-charging ready.
Collaboration and innovation will be key toachieving net zero. In 2022, we continued toparticipate in MIT’s Climate & Sustainability
Consortium. We are identifying additional
partnerships where we can drive innovationin construction methods and materials. We
also piloted solutions such as vertical solar,
which expands generation capacity, andself-healing concrete.

2030

2040

To better understand both impact andopportunities, we engaged a third party
to review our carbon emissions. This
included a review of our method of
calculating our emissions, the inclusionof recently acquired properties and theestablishment of 2019 as our new baseline
year for measuring progress toward our
GHG emissions reduction goals.
For more detail on our emissions dataand climate strategy, please see
Sustainable Logistics.

Following the Duke acquisition, we consolidated direct operations (divested from Duke-occupied offices and sold mobile assets) and then, as required by the GHG Protocol, re-baselined GHG emissions to determine what they would have been
had the portfolios been combined in 2019, 2020 and 2021. Our 2022 consolidation of direct operations results in a 53% year-over-year decrease (64% from our 2019 baseline) in our 2022 reported Scope 1 and 2 emissions. Additional detail on the
re-baseline may be found in our report appendix.

9CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

AppendixAwards and recognitions
The following is a selection of recent ESG-related awards and recognitions.

2022

2022

2022

2022

2021

S&P Global – Dow Jones
Sustainability World Index(top 10% globally) –Prologis andNippon Prologis REIT

Green Star recognition
for all Prologis and all Prologis
funds (7th consecutive year

U.S. Green Building Council
Leadership Award

Industrial“Leader in the Light”(11th consecutive year)

HRH The Prince of Wales
Terra Carta Seal(one of only 45
global companies)

2022“AA” Rating1

All-America Executive Team
Rankings REIT Sector(#1 CEO, CFO, IR Professional,
Investor Relations, ESG, andCommunication and Crisis
Management during COVID-19)

1.
2.

Regional Sector Leader
in the Americas

Investor CARE Award(Gold)

2022
A leading REIT in
Corporate Governance(20th consecutive year)

ISS Corporate
ESG Rating of “Prime” 2

2023
10 Most Sustainable REITs

As of December 7, 2022.
As of April 4, 2022.

10

CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Ahead of What’s Next
Staying ahead of what’s next is in
our company’s DNA. Every day, weleverage the scale of our global realestate portfolio and our key positionin the supply chain to advanceinnovation and demonstrate ESG
leadership in our industry and beyond.

$180M

Prologis Ventures has
invested more than $180M
in nearly 40 companies since2016, including to support
ESG-related solutions.

20 years

We’ve been named
a leading REIT in
corporate governancefor 20 consecutive
years (Green Street).

Top 10%

Prologis was included in the
Dow Jones Sustainability
Index – World for ESG
performance among the top
10% of companies globally.

10%of our employee
bonus scorecard islinked to quantitative
ESG metrics.

Bermudez Industrial Center,
Juarez, Mexico.
11

CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

What makes us different?
Prologis has the spirit of a startup andthe resources and experience of a maturebusiness. We have the scale and resources
to identify, test and implement a wide rangeof solutions for our customers. As a longterm owner, we ensure that our teams arepart of the fabric of the communities where
we operate.

The next evolution in logistics real estate

Our customers are at the center of all we do. We innovate to provide them with data- andtechnology-driven solutions in real estate and beyond.

We strive to stay ahead of what’s next.
We encourage employees to “simplify andsprint” and “fail fast.” It is not uncommon tohear company leaders say, “We might not
get it right the first time, and that’s OK.”
This culture of innovation helps us toconstantly experiment. Our “3Cs” describe
what we value and how we work:− Customer Centricity− Change through Innovation andOperational Excellence− Culture and Talent
We take the time to say “thank you” toour customers. Our customer appreciation
efforts in 2022 included nearly 100 events
across our portfolio: a children's day in
Poland (giant inflatables, face painting andsports games), tea and cookies in Japan(plus fundraising to support those impacted
by the war in Ukraine) and a catered Italianlunch in Los Angeles.

12CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

We take our role as an industry leader seriously. Our annual
GROUNDBREAKERS thought leadership forum provides anopportunity for robust discussion of key trends and new ways ofworking and thinking. At our most recent forum in October 2022,
a range of visionary leaders shared their ideas on transforming the
global supply chain with more than 15,000 viewers.
Our Global Insights and Research group provides ongoing andthoughtful analysis on worldwide market dynamics and key demand
drivers for logistics real estate. The team uses proprietary data, thirdparty data and key internal partnerships to:− Establish a dependable and comprehensive view on the economy
and the real estate market.
− Develop methodologies that can put markets and properties in a
global context to facilitate comparisons and investment decisions.
− Provide guidance as to how changes in market trends may affectfund performance.
− Forecast future operating conditions, including critical market
inflection points.
− Produce white papers, trend reports and outlooks to informcurrent and potential investors on factors that influence real estate
performance.
According to the group’s latest supply chain predictions report,
demand for warehouses with sustainable features, such as rooftop
solar and EV truck charging, will continue to increase. Contributing
factors include energy price volatility and the increasing number ofcompanies with net-zero targets. The report also predicts notable
increases in warehouse demand in Mexico (driven by a preference fornearshoring) and Texas (driven by economic growth and high barriers
to development in other states).

A culture of innovation and learning“I like to remind myself and others
that we don’t always have all theanswers, so we need to make thebest decision with what we know
and move forward.”
Lori Palazzolo, Managing Director,
Chief Accounting Officer“I prioritize helping our teams
accelerate the pace of internalinnovation to grow our green
energy footprint and develop
unique external partnerships
to create more value forour customers and advancecommunity solar projects.”
Vibhu Kaushik, Global Head ofEnergy, Utilities and Storage“I spend a lot of time thinking
about and reflecting on things
like, 'How do I enable others
to succeed? How do I create aculture where it feels comfortabletaking risks and innovating?’”“I focus on embracing change
as we create global standards
and procedures. This improves
building construction quality andspeeds up scheduling, which
ultimately provides a lot of value
to a customer who can get into
their space even more quickly.”
Forrest Etter, Design andConstruction Innovation Director“Prologis has given me theopportunity to grow faster thanany other company in terms ofknowledge and responsibilities—
and to leave my comfort zone
and embrace constant learningin an enriching, multiculturalenvironment.”
Begona Sordo, Marketing &Communications Manager

Steven Hussain, Vice President
and Head of Government andCommunity Affairs

13CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Since its launch in 2016, Prologis Ventures
has invested more than $180 million
in nearly 40 early- and growth-stage
companies across three main verticals:
supply chain transformation; digital buildings
and infrastructure; and real estate andconstruction. Recent Ventures investments
have included:
Altana, a supply chain intelligenceplatform that partners withgovernment and private sector
institutions to identify risk
throughout the supply chain.
Logiwa, a warehousemanagement software (WMS)
company purpose-built tomanage the complexities of highvolume e-commerce fulfillment
operations.
Pandion, a purpose-built shipping
platform for one- and two-day
e-commerce delivery, poweredby intelligence and data.
SITE Technologies, an asset
management and data analytics
platform built for enterpriseproperty managers.
SOLARCYCLE, Inc., a solar panel
recycling company that uses a
proprietary process to extract up
to 95% of the materials in a solar
panel, addressing both end-of-lifeand supply chain challenges.

Innovation at Prologis takes many forms, from bolts to bots.
When the storage racking in a distribution
center needs to be removed, standard anchor
bolts can damage the concrete floors, whichleads to delays and customer concerns.
An idea submitted to our European Innovations
Group led to the widespread use of a special
kind of bolt called the “Hilti bolt.” Although Hilti
bolts are more expensive, they are reusable;
don’t damage floors; and are quicker to remove
and install.
The result? Projected cost savings of €31 million
across our European portfolio, quicker move-intimes and improved customer satisfaction.

Another example of innovation comes fromthe world of robotics. In 2020, Prologis
Ventures invested in Locus Robotics, a robotic
automation process company focusing on
warehouses. The idea was to make the mostof every square foot in a distribution center
through the use of robots that work withpeople, improving efficiency.
Just two years later in 2022, Locus Robotics’technology has been adopted across dozens
of our customers’ distribution centers, andis well on its way to becoming the standard
against which other logistics robotics
technologies are measured.

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CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

GovernanceOur culture, policies, systems and processes
guide how we do business: We focus onserving our customers and encourage
integrity, accountability and sound decisionmaking across our company. Wherever
possible, we set goals and base decisions on
data—a continuing area of focus.
Board oversight
The Prologis board of directors serves ourstockholders’ best interests; sets company
strategy; and provides independent andexperienced oversight. The board has fourstanding committees:− Audit Committee− Board Governance and Nomination
Committee− Talent and Compensation Committee− Executive Committee
Ninety-one percent of the members of theboard nominated for election at our 2023
annual meeting of stockholders qualified
as independent, according to the principles
and standards established by the New York
Stock Exchange. Our latest Proxy Statement
describes the rights and responsibilities of
our lead independent director and provides
detail on each board member’s qualifications
and experience.

1.

By committee charter, the Board Governanceand Nomination Committee oversees ESG
matters and updates the full board on
ESG developments, such as our process
for assessing climate change risks andour performance against our ESG goals(including our net-zero goal). Other board
committees provide oversight on relevant
ESG topics:− Our Audit Committee oversees thedevelopment of data systems anddisclosures to comply with emerging
regulation.
− Our Talent and Compensation Committee
oversees human capital development and
DEIB performance, initiatives and relatedrisks.
The Prologis board believes that diversity
promotes robust discussion and theconsideration of a range of viewpoints. Ourboard governance guidelines state:
In any formal search for new directors,
the Board Governance and Nomination
Committee will consider, and will
instruct any third-party search firm
to include, candidates from diverse
backgrounds, including in its initial list
both gender and racial/ethnic diversity.

Board diversity1
Gender
Women
27%

Men
73%

Ethnic/Geographic
West
Asian
18.2%

AfricanAmerican
9.1%

White/Caucasian
72.7%

Number of Directors(by years of tenure)
0-6
6-12
12+

6 new directors
in the last eight years

Directors nominated for election at our 2023 annual meeting of stockholders. One director has self-identified as African American and two directors have selfidentified as West Asian/Middle Eastern/Asian American—as a result, 27% of our board is ethnically diverse.

15CEO Letter

Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Ethics, compliance and human rights
We hold our employees and board members
to the highest ethical standards and seek to
do business with customers and business
partners who share our values. We describe
our expectations for suppliers in Supply Chain
Responsibility.
Our ethics and compliance program reflects
our commitment to integrity. Each year,
every active employee completes training
on topics covered in—and acknowledges
their understanding of—our Code of Ethics
and Business Conduct (referred to as “TheCode”). The Code has been translated into
15 languages and covers company policies,
including our Anti-Corruption and FCPA
Policy and our Insider Trading Policy. It also
includes language on equal employment;
nondiscrimination; antitrust and fair dealing;
political activities and contributions;conflicts of interest; bribery; retaliation; anddiscrimination and harassment. Non-U.S.
employees receive special training on the
FCPA and our internal audit group conducts
an annual audit of FCPA compliance.
Employees and other stakeholders mayreport any ethical issue or concern via our
ethics helpline, or they may contact theirsupervisor, their supervisor’s supervisor,
human resources, the ethics and complianceteam or any member of the Ethics Committee.
The helpline gives stakeholders the option toreport online or via phone (1-888-359-6331
from the U.S. and Canada; instructions forcalling from other countries are available

here). It is administered by a third party and isavailable 24 hours a day, seven days a week.
Prologis maintains a policy of anti-retaliation
against anyone who reports a concern ingood faith or participates in an investigation.
In 2022, Prologis received and investigatednine helpline inquiries and took appropriate
corrective action. One of these inquiries, sinceresolved, was unresolved at year end.
Prologis’ chief legal officer and general
counsel, chief human resources officer, chief
financial officer and chief compliance officer sit
on our Ethics Committee. In addition to other
responsibilities, this committee provides ethicsrelated advice and guidance to employees andinvestigates any reported incidents of potential
noncompliance. Any significant concerns arereported to the Audit Committee of our boardof directors in accordance with The Code andthe Audit Committee Charter.

We are committed to operating ourbusiness in an ethical manner that protects
human rights. Our Global Human Rights
Policy outlines our commitment to:− Fair hiring, compensation andpromotion.
− Prevent the use of child and indentured
or forced labor, including in our supply
chain.
− Maintain a safe and healthy work
environment.
− Follow all applicable laws andregulations that govern working hours,
guarantee fair and equal compensation,and protect the right to collective
bargaining and freedom of association.
Our Ethics and Compliance and ESG
departments are responsible for this policy
and for tracking emerging issues andregulations. We had no significant humanrights issues In 2022.

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Our Inspired People

Resilient Communities

Appendix

Risk management
Effective risk management can help us achieve strong businessoutcomes. Our risk assessment processes include scenario testing, audit
controls, probabilistic modeling and input from third-party experts. Risk
assessment findings are reported to the executive committee, audit
committee and board of directors.
We use a global risk management framework to identify, assess andmanage risks facing our company and industry. Examples include:− Investment Committee: All material capital deployment(development, acquisitions and dispositions) is subject to review
by our Investment Committee (IC), which evaluates investment
considerations as well as environmental matters; natural hazard
exposures; and legal and regulatory considerations. Our CEO andchairman, vice chairman, president, COO, CFO, chief customer officer(CCO) and several other senior leaders serve on this committee.
− Cybersecurity: We use robust and constantly changing measures
to defend against emerging cyber risk scenarios. We review ourcybersecurity posture through regular participation in a third-party
security benchmarking survey. Our IT infrastructure is externallyaudited as part of our Sarbanes Oxley audit process, and our controls
include information security standards following the NIST Framework.
Our Information Security Policy includes mandatory annual training for
all employees. To our knowledge, no material information security or
privacy incidents occurred in 2022.
− Climate Risk: In 2022, across our portfolio, there were 34 instances
when natural hazard events resulted in insurance claims. These
included windstorms, severe storms and extreme cold weather. Our
planning and risk mitigation measures protected our customers’
business continuity: Only two of these events led to businesscontinuity-insured damage in excess of $500,000. Additional detailon how we manage climate risk may be found in the report appendix.
More Information on risk can be found in the “Risk Factors” section of
our 10-K.

A tool for evaluating climate risk

We’ve developed a climate risk tool for evaluating risk across
our portfolio.
The tool uses data from a leading global reinsurer, including a range ofnatural hazard factors and three GHG emissions trajectory scenarios.
A proprietary dashboard helps Prologis leaders assess the potential
impacts of more extreme climate conditions, including more frequentand intense natural disasters. Through our use of this tool, we canbe more strategic in how we improve our assets to make them more
resilient.
In the coming years, the United States Securities and Exchange
Commission (SEC) may require material assessment of the positive andnegative impacts of climate change and natural hazards. Our approach
to climate risk, including our use of this tool, helps us to prepare forthese disclosure requirements.

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ESG governanceOur integrated approach to ESG reduces risk,
improves efficiency, differentiates our brandand expands revenue and talent-recruitment
opportunities. This includes our work tominimize construction impacts, manage
buildings more efficiently and provide services
such as renewable energy, EV charging andworkforce development—all activities that
benefit our customers and the communities
we serve. In the last year, we made significant
investments in ESG data management,
including adding new data systems andautomation tools and conducting a thirdparty review of our emissions data. Our ESG
Policy provides additional detail on our overall
approach to ESG. Stakeholder Engagement
outlines our approach to interacting withdifferent stakeholders. This includes
the periodic completion of a materiality
assessment to focus our ESG efforts, including
ESG reporting, on topics most relevant to ourcompany and our stakeholders.
In 2022, ESG performance represented
10% of our bonus scorecard. Environmental
metrics included MW of solar and amount of
LED lighting installed. Social metrics included
culture, talent and inclusion scores and thenumber of new participants in our Community
Workforce Initiative. Governance metrics
included third-party assessments of ourcorporate governance performance. In 2023,
we will continue to tie ESG performance to
our annual bonus scorecard. Please see ourlatest Proxy Statement for more detail.

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Appendix

ESG governance creates accountability and drives action

Board of Directors

The Governance and Nomination Committee oversees ESG.
As appropriate, senior leaders provide ESG updates to thefull board or to a specific committee of the board based on
the ESG topic.

Our chief energy and sustainability officer, reportingto the chief operations officer, oversees the teams
responsible for ESG and sustainability. Our Investment
Committee assesses the ESG profile of every investment.

Executive Team

Global ESG OfficeThis group is responsible for the development andintegration of our global ESG strategy, which includes
collaborating across departments to improve systems
and processes that drive improved ESG-related results.

Delivering on our ESG aspirations is everyone’s business

Global Leaders

Regional ESG Leadersand Committees

Prologis Employees

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Appendix

Supply chain responsibility
We depend on our suppliers for the goods and services essential to theoperation of our business. We work to maximize the positive impact–
and minimize any negative impact–of our procurement. Procurement
categories include, but are not limited to:− General contractors− Steel joists and decking− Electrical and lighting− Roofing systems− Heating and cooling systems
Our domestic and global scale allows us to procure goods and services
in a strategic, competitive and responsible manner. We pass this value
on to our customers when we deliver high-quality goods and services at
reduced costs and impacts. In the U.S., as an example, we purchase themajority of our steel for new construction from a company that produces
this commodity using at least 80% recycled content, while also securing
best-in-class pricing and lead times.
Our Supplier Code of Conduct outlines our expectations for supplier
practices, including the use and conduct of subcontractors. Suppliersmust:− Prohibit the use of involuntary and child labor.
− Provide a safe and healthy work environment, free of discriminationand harassment.
− Reduce energy and water consumption and implement wasteminimization programs.
An independent third party evaluates potential suppliers to ensure theymeet our standards. As part of our supplier screening process in theAmericas, we collect information about several ESG topics, including
diversity and safety.

Vendor performance optimization
In 2022, we developed a scorecard for our operating-expense vendorsthat includes four metrics: customer satisfaction, Prologis satisfaction(including adherence to our Supplier Code of Conduct), responsivenessto customer tickets and compliance with service-level agreements.
Each quarter, we review vendor performance and contact those whoscore below 80% to develop a plan for improvement.

Procurement
Team

RECX
Team

Preferred
VendorReviews quarterly
vendor score
and makes
recommendations
for low-performing
vendors.

Meets with vendor
to develop plan
to make needed
improvements.

Improves
performance oris removed from“preferred” list.

For information on our approach to supplier diversity, please see"Procurement" in Diversity, equity, inclusion and belonging.

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Sustainable Logistics
Our approach to sustainable logistics
is customer-centric. We help ourcustomers reduce their energy use
and emissions—and provide them withon site energy generation, energy
storage and mobility solutions.

2040

We have committed toachieve net-zero emissions
in our operations (by 2030)
and across our value chain(by 2040).

#2

In 2022, we were ranked#2 for onsite solar in the
U.S., according to the
Solar Energy Industries
Association.

$9.27B

Since 2018, we’ve
issued 27 green bonds
worth $9.27B to help
fund green building
design and innovation.

71%

We have installed
LED lighting across
71% of our operating
properties, by area.

Prologis Park Palmer Lakes
Airport East, Miami, Florida
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Appendix

Climate strategy
As the global leader in logistics real estate, we must act with urgency tohelp mitigate the impact of climate change.
Our climate strategy is driven by our focus on customer centricity. Our
customers want to reduce their impact and emissions. We help themdo this by operating our facilities as efficiently as possible. This includes
providing a suite of sustainability, renewable energy and mobility solutions.
In many cases, this work supports local communities by providing the local
utility with additional energy and energy storage to support grid resilience.
We also site our buildings in the urban cores of many of the world’s largest
population centers, shortening delivery routes, cutting delivery times andreducing supply chain-related emissions.

Customers today are looking for a partner
who can help them achieve their sustainability
goals in innovative new ways and support themin running their businesses as effectively as
possible. This is my focus every day.
— Susan Uthayakumar, Managing Director, Chief Energy andSustainability Officer

In 2022, we set a goal to achieve net-zero emissions across ouroperations by 2030 and across our value chain by 2040. This industryleading goal is aligned with SBTi’s Net-Zero Standard, an importantdifferentiator. We provide a status update on progress toward this goalin Net zero update.

Sustainability solutions: Solar installation, Prologis Park Cranbury, Cranbury, New
Jersey (top); EV charging at Prologis Torrance 1, Torrance, California (bottom
left); Carbon reduction technology for concrete (bottom right).

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Appendix

GHG emissions1
In consultation with an independent third party, we have updated our 2019-2021 greenhouse gas emissions to reflect changes to our business (recent acquisitions), improvements to our emissions methodology and a new baseline year for our science-based net-zero target. Additional detail may be found in the report appendix and on
our ESG Data page.

Scopes 1 and 2

0.1%

Scope 1 and 2 Emissions

2022 Sources

Metric tons CO 2e

8207

Scope 1Natural gas – stationary

Scope 2Market-based w/o RECs

7671

11.6%

35.9%

5815

Scope 1
Motor gasoline – mobile

29.6%

3898
2651

2349

2444

2019

20

21

Scope 1

Scope 1
Diesel fuel – mobile

Scope 1
Jet fuel – mobile

3.4%

22

Scope 2

19.5%

Scope 1 emissions are from mobile fuels and stationary fuels. Scope 2 emissions are from purchased electricity (neutralized
through our purchase of renewable energy certificates). Following the Duke acquisition, we consolidated direct operations(divested from Duke-occupied offices and sold mobile assets) and then, as required by the GHG Protocol, re-baselined
GHG emissions to determine what they would have been had the portfolios been combined in 2019, 2020 and 2021. Our
2022 consolidation of direct operations results in a 53% year-over-year decrease (64% from our 2019 baseline) in our 2022
reported Scope 1 and 2 emissions. Additional detail on the re-baseline may be found in our report appendix.

Scope 399.9%2022 Sources

Scope 3 Emissions
Million metric tons CO 2ePurchased Goods
and Services

6.18
5.44

5.22

15%

4.92
Capital Goods

21%

2019

20

21

Downstream
Leased Assets

64%

22

Scope 3 emissions are from customer/tenant energy use (downstream leased assets), embodied carbon in construction(capital goods, based on construction-related spend) and purchased goods and services (procurement spend to support
existing operations). The 6% decrease in our Scope 3 emissions (20% from our 2019 baseline) was primarily due to our
updated methods for estimating and accounting for downstream leased assets, as well as the reclassification of some spend
categories and the associated GHG emissions to further align with the definitions from the GHG Protocol. Additional detailon our emissions re-baseline may be found in our report appendix.
1.

Our prior science-based target, set in 2018, was to reduce 2016 scope 1 and 2 emissions 21% – and scope 3 emissions 15% – by 2025. Our current emissions
goal – to achieve net-zero emissions from a 2019 baseline by 2040 – will be validated by the Science Based Targets initiative under its Net Zero Standard.

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Appendix

Driving sustainability for our customers
We drive customer sustainability throughthe Prologis Essentials platform, the Prologis
Clear Lease® and implementation ofsustainable building practices.
Through the Prologis Essentials platform, we
provide a suite of customer solutions beyond
those of a traditional warehouse. These
include renewable energy, sustainability,
mobility and energy efficient operations.
These solutions can reduce customer
emissions, costs and environmental impact—
and can help our customers achieve their own
sustainability goals.
The Prologis Clear Lease plays an importantrole in driving customer sustainability. It
includes language that supports our efforts
to receive customer utility data which, in turn,creates opportunities to install sustainablebuilding features such as rooftop solar.
Our work in green building design andconstruction also supports customer
sustainability.
Energy + Sustainability
Prologis began installing rooftop solar in 2007.
With onsite rooftop solar and energy storage,
we can, in many cases, meet 100% of acustomer’s onsite energy needs. At year-end
2022, we had more than 400 MW1 of solar
generating capacity across our portfolio, with
1.
2.
3.

a goal of 1 GW of solar and storage by 2025.
As we plan for the future, we are evaluatingpurchasing offsite renewable energy to meet
additional energy demand from automation,
electrification and EV charging. Our Energy +Sustainability solutions include:− SolarSmart and StorageSmart: We build,
operate and maintain rooftop solar systems
and energy storage to generate and store
energy for customers in markets where“behind the meter”2 solar is allowed. In
2021 and 2022, more than 100 customers(including five of our 25 largest customers)
participated in this program.
− SolarX and StorageX: We provide clean
energy to local communities across ourportfolio. As an example, in 2022 weannounced plans to install more than
5 MW of solar panels on five existingbuildings in Southern California, then sellthis renewable electricity to the local utility
provider, Clean Power Alliance. Eventually,
these solutions may have the scale toimprove grid reliability and local air quality.
− LED Essentials: We help our customers
upgrade to LED lighting with no upfront
capital costs. They can reduce theirlighting-related energy use by 60-80%
and enjoy the benefits of LEDs: improved
safety, productivity and employee
satisfaction. At year-end 2022, we had
installed LED lighting across 71% of
the warehouse and office space in our

Solar capacity

MW, including projections
1000

1000

500

0

186

212

252

285

2018

19

20

21

405

22

23

24

25

portfolio. 3 By 2025, we intend toreach 100%.
− Smart metering: We provide sensorcontrolled smart meters linked to a mobile
app. Customer benefits include better
management of utility consumption,
analysis of facility operations (which can
improve energy efficiency and reduce
costs), access to utility financial data and,in many scenarios, the ability to control
temperature, humidity and pressure levels.

Within our owned and managed portfolio. Does not include properties from the Urban Spaces acquisition.
Electricity generation that does not feed into the local utility’s grid.
Within our owned and managed operating properties. Does not include properties from the Duke and Urban Spaces acquisitions.

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Mobility
Government mandates in California, New
York, New Jersey and other markets are
creating pressure for our customers totransition their fleets to zero-emissions
vehicles. By partnering with Mobility
Essentials, our comprehensive mobility
solutions platform, our customers canpower their EV fleets at our logistics
facilities. This helps our customers
minimize route deviations (which would beneeded if they had to charge elsewhere)

Our Inspired People

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Appendix

and make better use of dwell time
(when a vehicle is loading or unloading).
By supporting the transition to EV
fleets, Mobility Essentials also helps ourcustomers make progress toward theirsustainability goals. Services include EV
charging and alternative fueling (hydrogen);autonomous yard trucks; last-milerouting solutions; and fleet management
services. We design, deliver, finance andoperate these projects as a service to ourcustomers and their logistics partners.

Our portfolio includes EV charging operations
across four continents, providing charging
to our customers’ employees’ personal EVs
as well as commercial vehicles. In 2022,
we activated two electric truck charging
installations that together can charge 38
Volvo VNR Electric Class 8 battery-electrictrucks simultaneously. In 2023, we committed
that every eligible new development will bebuilt to be EV ready. By year-end 2023, we
expect to be managing approximately 20 EV
charging facilities across our portfolio.

EV Truck Chargers, Santa Fe Springs, California.

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Appendix

Operational efficiency
We improve the way we manage ourbuildings on an ongoing basis. This includes
installing LED lighting and using cool roofs toreduce summertime energy use. Our internalinnovation committee recently launched apilot program in Chicago to use batterypowered robotic lawn mowers to assist withlandscaping, addressing a labor challenge
while also reducing emissions.
Our design standards require theinstallation of more efficient lighting and theelectrification of onsite equipment. As local
utilities decarbonize the electric grid, we cando our part by eliminating emissions-intensive
natural gas-powered heating systems. We
also generate solar electricity on site to
reduce emissions and improve resilience.
Please see Net zero update and Energy +Sustainability for more detail.

LED Lighting% owned and managed operating properties,
including projections
100

100

71
57
50

27

0

33

42

LED lighting installation, Prologis Ports Newark, New Jersey.
2018

19

20

21

22

23

24

25

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Green building design and construction
By 2025, Prologis aims to achieve carbonneutral construction in every building webuild or redevelop. (Construction-related
activities represent approximately 21% of
our GHG emissions footprint.) To achievethis, we minimize construction waste; use
smart building design, new construction
technologies and lower-impact materials;
and purchase carbon offsets. In the U.S., as
an example, we purchase the majority of oursteel for new construction from a company
that produces steel using at least 80%
recycled content.
Once a building is occupied, we manage it
as efficiently as possible. This is importantbecause we expect that energy consumption
at modern distribution centers will continue
to increase as facilities are electrified andautomated.
All of this work benefits our customers
by reducing a building’s operating costs,
emissions and impact.
Building certifications
In June 2021, we committed that every
eligible1 project approved by our investmentcommittee will achieve a sustainable
certification. In 2022, this included 33
projects, five of which achieved a certificationand 28 of which were in the process of1.

achieving a certification. A building canachieve a sustainable certification once it isbuilt and substantially occupied.
Some 19.41%, or 235 MSF, of our 1.2
BSF portfolio has received a sustainable
certification. These sustainable
certifications (including LEED, BREEAM,
CASBEE, DGNB and WELL) drive
decisions related to site selection; building
materials; biodiversity; energy and water
efficiency; and indoor environmental
quality. A sustainably certified building
provides a healthier work environment,
efficient and lower-cost operation andcarbon emissions reduction. Nearly 30%of the space leased by our 25 largest
customers is sustainably certified.
Our focus on achieving sustainable
certifications does not limit our acquisition
strategy—we do not let the fact that anexisting building may not be certified
impact our decision to acquire thatbuilding. Rather, we manage the newly
acquired building efficiently and lookfor opportunities to make sustainable
upgrades. If we redevelop the property, we
seek a sustainable certification at that time.

Green financing:Integrating ESG into financing
is a sustainability best practice.
To fund projects that enhancesustainability and minimize environmental
impact, Prologis and our co-investment
ventures in Europe, Japan, Mexico andthe U.S. have issued 27 green bonds and
12 green private placements of debt overthe past five years. These bonds andprivate placements attract environmentallyconscious investors from around the world.
Our Green Bond Framework guides how
we select projects and manage proceeds.
Our green financing efforts also include
our global line of credit (GLOC), our Yen
revolver and additional sustainability linked
lines of credit and term loans that support
the operations of the FIBRA, PELF
and USLF. Our GLOC key performanceindicators include sustainably certified
space and onsite solar generation/storage
capacity. At year-end 2022, these figures
were 235 MSF and 405 MW, respectively.
As an additional example of ourcommitment to sustainable investing,
Prologis is a signatory of the UN Principles
for Responsible Investment.

For additional building certification data,
please see our ESG data page.

Due to customer requirements and/or the limitations of certain co-development agreements, a small number of projects are ineligible to receive a sustainable certification.

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Ahead of what’s next: Sustainable Distribution Centers
Prologis distribution centers showcase a wide range of sustainable features. As we continue toward net-zero emissions by 2040, we expect an increasing percentage of ourportfolio will include these features.

Rooftop Solar

Support for Biodiversity

Across 10 sites in Mexico in 2022, we added 1.4 MW of solar generation
capacity. This included 125 kW at our Independencia 2 DC, 92 kW at
our Independencia 3 DC and 189 kW at our Independencia 4 DC. In the
coming years, we plan to expand our solar capacity in Mexico to morethan 70 MW.

Prologis RFI DIRFT in the UK includes a Prologis-funded 193-acre nature
reserve with extensive wetland habitat that supports a wide range of birds,
including short-eared owls, little ringed plovers, curlews and wigeons; great
crested newts; a population of bats; and a rare breed of sheep.

Geothermal Energy

Electric Heat Pumps

Prologis Park Moissy II DC1 in Paris was built with no gas connection.
The building relies on design efficiencies, rooftop solar, purchased
renewable energy and borehole geothermal energy storage forheating, cooling and power.

At our Perris DC 6 and Perris DC 8 buildings in Southern California, we use
zero-emissions electric heat pumps for heating and cooling instead of natural
gas-powered climate control systems.

Lower-carbon Construction Materials

EV Charging

We used mass timber for the construction of the mezzanine portionof our Northwest Logistics Center 1 in Portland, Oregon. In Ontario,
Canada, we are using mass timber instead of steel in the constructionof the internal structure of Highway 50 DC3. The use of these materials
reduces embodied carbon emissions.

Our Prologis Commerce Transport Center in Southern California includes 22
ports for EV truck charging. By year-end 2023, we expect to be managing
approximately 20 EV charging clusters across our portfolio.

Construction Circularity

Sustainable Building Certificates

Our Prologis Park Waalwijk DC3 distribution center in the Netherlands
was built using 30% circular, bio-based or cradle-to-cradle (C2C)
materials, with all materials cataloged in a digital materials passport tofacilitate future reuse. Some 95% of the waste from the construction of
our Dutra RJ Building 100 in Brazil was reused or recycled.

Prologis Irwindale Distribution Center I in Southern California is the first U.S.
property in our portfolio to achieve LEED Platinum certification. This property,
which was part of the recent Duke acquisition, features a 600 kW photovoltaic
system that can reduce energy costs by 90%. Prologis Park Nieuwegein DC2/
Unit BC in the Netherlands is the first WELL Platinum industrial building in Europe.
Certification factors include seven people-oriented factors: air, water, nutrition,light, fitness, comfort and well-being. Through the purchase of renewable energy
and the use of LED lighting, heat pumps and insulating exterior metal “sandwich”
panels, Inagawa I is the first Japanese property in our portfolio to be ZEBcertified (zero emissions).

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Construction waste and circularity
We are increasing our incorporation of circular design principles (e.g.,reuse, refurbish, recycle) into new construction. In some cases, we use
a digital material passport to catalog materials and components used,making it easier to reuse them at the end of the building’s life. Where
feasible, we use new construction technologies and materials, including
mass timber; flexible office walls; lower-carbon concrete and steel; andNexiite (a sustainable alternative to conventional concrete). We intend
to increase our use of these materials—and hope that our significant
purchasing power will encourage the market to scale quickly.

Resilient Communities

Appendix

Carbon offsets
At Prologis, as part of our “measure-reduce-invest” approach tocarbon management, we purchase high-quality third-party verified
offsets for construction-related emissions that we cannot yet eliminate.
We purchase these offsets based on criteria that include:− Additionality (mitigation or removal would not otherwise haveoccurred).
− Co-location (in same geographic region as our operations).
− ESG co-benefits (local social and environmental benefit beyond
emissions reduction).
We only purchase offsets that have been verified through at least oneof the following registries/standards:− Gold Standard− Voluntary Carbon Standard(VCS)/Verra− Climate Action Reserve− American Carbon Registry

Prologis Park Waalwijk, Waalwijk, the Netherlands.

We can look to our 26,000 square meter Prologis Park Waalwijk DC3
distribution center in the Netherlands as a good example of a best-inclass approach to circularity. We built the facility using approximately 30%
circular, bio-based or cradle-to-cradle (C2C) materials, with all materials
cataloged in a digital materials passport to facilitate future reuse.

These four registries/standards have been accepted by independent
third parties, including ILFI, The Task Force on Scaling Voluntary
Carbon Markets and/or California’s Cap and Trade program.
We retired offsets for approximately 40% (approximately 830,000
metric tons of carbon dioxide equivalent, or CO2e) of our 2022
construction-related GHG emissions. These offsets included forest
conservation in Brazil, Canada, Mexico, China and the U.S.; landfill
gas and other clean energy projects in the U.S., China and Brazil; andrefrigerant reclamation and reduction projects in the U.S.

For a limited (contractor-reported) subset of waste data, please see our
ESG data page.

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Responsible water use
The operation of a typical distribution center has a negligible impact
on water availability and quality. Although we do not face significant
water risks, we remain committed to responsible water use andmanagement practices.

Biodiversity
The construction and operation of a typical Prologis distribution centerhas a minimal impact on biodiversity. This is related to our corporate
strategy of locating distribution centers close to urban centers, where
biodiversity is not normally a significant concern.

During development, when significant water impacts could occur, surface
water runoff is managed according to local regulations (in the U.S., it isgoverned by a Stormwater Pollution and Prevention Plan). We require
general contractors, by contract, to reduce waste; to reduce energy andwater consumption; and to comply with federal, state and local laws andregulations, including those related to water quality and availability.

Although we have minimal impact, we support biodiversity where
feasible. This includes landscaping with native plants to support local
wildlife. We have also enhanced the habitat adjacent to our distribution
centers to support a wide range of wildlife, including hedgehogs, bees,
bats, insects, newts and several types of birds (including short-earedowls, little ringed plovers, curlews and wigeons). Through a partnershipwith Cool Earth, we help protect biodiversity-rich rainforest equivalent to
31 times the area of our new development projects in Europe.

Once a building is complete, surface water runoff flows throughsystems designed to applicable civil engineering standards. Customers
are responsible for their use of water during their lease. This includes
maintaining any discharge permits that may be required. To help themminimize their water use, we install low-flow toilets, motion-activatedfaucets and, in some buildings, native plants that require limited additional
watering. Prologis Labs, a testing ground for customer-led innovation,
developed smart pump kits that can collect and transmit data on watertemperature, pump activity (vibration) and leaks. The kits have been
installed in more than 2,000 buildings across the U.S. and Canada.

The habitat adjacent to our distribution centers supports a wide range of wildlife,
including bees.

Office water consumption
limited data, million gallons1
7.50

5.00

2.50

0

1.

2018

19

20

21

22

All new construction is subject to local environmental permitting,including evaluation of sensitive habitats and protected species throughan Environmental Impact Assessment (EIA) or similar assessment,
generally conducted during the land procurement and entitlement
process. Some developments also promote environmental health andbiodiversity by removing historic contaminants from the soil and waterthat might negatively impact biodiversity.

Based on limited data: 21/88 offices in 2018; 17/87 offices in 2019; 22/96 offices in 2020; 24/84 offices in 2021; and 25/85 offices in 2022. We have updated historical data following a review of previously reported water data that identified
significant inconsistencies, including the inclusion of “water discharged” in “water consumed” data at some sites.

29CEO Letter

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Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Our Inspired People
Our employees are the foundation of our business.
Every day, they create value for our customers andinvestors. They are active and engaged membersof their local communities. They work towards an
inclusive workplace; listen, question and commit;
and innovate to create the future.

87%

5 ERGs44%

7,400+

We achieved an
87% employee
engagement pulse
survey score.

of our manager
positions are held
by women.

advance inclusion for our
African American, Asian
American, Hispanic/Latinx,
LGBTQIA+ and women
employees.

In 2022, more than 2,000
employees completed
approximately 7,400 hours
of company-provided orcompany-sponsored learningand development training.

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Resilient Communities

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Employee engagement
We see our culture as a differentiator for Prologis as an employer.
Engaged and challenged employees constantly find new ways to better
serve our customers and help us stay ahead of what’s next.
We create a world-class employee experience that includes competitivecompensation and performance-based incentives; support for diversity,
equity, inclusion and belonging (DEIB); challenging professional
development opportunities; and best-in-class collaborative office space.
Every permanent employee receives two performance reviews every
year, aligned with career development.
Our biennial employee engagement survey, last completed in 2021,
indicated that 88% of our employees are engaged based on their
response to the five questions that comprise our engagement driverindex, including “I am proud to work for this company.” Our engagement
pulse survey, completed in 2022, indicated that 87% of our employees
are engaged. Both scores compare favorably with financial services
sector averages of 76% (2021, full survey) and 75% (2022, pulse survey).
Our strong Glassdoor ratings provide additional validation: As of January2023, our CEO approval rating was 99%, and 88% of our employees said
they would recommend Prologis to a friend. In 2022, we had regrettable
turnover of 1.3% and non-regrettable turnover of 9.9%.1
Once engagement survey results are available, leaders across thecompany create and incorporate employee engagement action plans into
their business goals. In early 2023, we set a goal to improve engagement
survey results in each of the three lowest-scoring areas by three
percentage points. These included how we share knowledge acrossbusiness lines (68%); manageable workload (67%); and feeling rewarded
for performance (64%).

1.

Employee engagement—2022
Prologis
Score

Engagement
Pulse Survey

87%
+12

Financial Services
Sector Score(average)Engagement
Pulse Survey

75%

Regrettable turnover is defined as “eligible for rehire in the same role.” Non-regrettable turnover is defined as“ineligible for rehire in the same role.”

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Our Inspired People

Resilient Communities

Appendix

We offer a range of benefits (depending on location): Paid time off,
bereavement time off, parental and partner leave and companysponsored volunteer time.
− Life, medical, disability, dental, vision and identify theft insurance.
− Telemedicine, including virtual exercise and physical therapy services.
− An employee assistance program that includes mental health services.
− Fertility/surrogacy and adoption assistance and counseling.
− Flexible spending and health savings accounts.
− Backup childcare assistance.
− Health and financial wellness coaching.
− Pension and/or 401(K) benefits.
− Continuing education assistance.
Learning and development
We provide a range of learning and development resources to help
employees keep their skills and knowledge on the cutting edge. These
include training and support on:− Prologis’ core competencies and traits.
− Business fundamentals, including the fundamentals of real estate.
− Leadership, presentation skills, effective communication and time
management.
− HR-related skills, including performance management, careerdevelopment, mentoring and diversity, equity, inclusion andbelonging (DEIB) in a workplace setting.
In 2022, more than 2,000 employees completed more than 7,400
hours of company-provided or company-sponsored learning anddevelopment training.

Recent office remodels support a world-class employee experience: El Segundo,
California (top), Warsaw, Poland (bottom left) and Paris, France (bottom right).

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Appendix

Diversity, equity, inclusion and belonging
Diversity, equity, inclusion and belonging (DEIB)
is central to the Prologis culture of innovationand to our mission of being the leading
logistics real estate company. Consistent
with our DEIB mission, we leverage a diverse
workforce and inclusive business practices todrive innovation and excellence by focusingon people, procurement and philanthropy. We
have a dedicated DEIB budget and increased
DEIB staffing, and our CEO is a signatory
to CEO Action for Diversity & Inclusion. We
share our DEIB strategy with employees andwelcome their ideas for improvements.
PeopleAs the world leader in logistics real estate,
representation is crucial: Prologis must reflect
the diversity of the markets where we operate.
We partner with organizations—including
Urban Land Institute, NAIOP (previously the
National Association for Industrial and Office
Parks), NAREIT (the National Associationof Real Estate Investment Trusts), Project
Destined and Management Leadership for
Tomorrow—to stay informed of workforce
trends and broaden our pool of candidates.
At year-end 2022, 49% of our global
workforce were women, and 32% of our U.S.
workforce were people of color. There is stillwork to be done, particularly with respect
to representation at our senior leadershiplevel. This remains a strong focus in 2023. For
additional information, please see our EEO-1
report and our ESG Data and Assurance page.

Inclusion and diversity performance
Women
2022

People of Color (U.S.)
2022

49%

44%

20%

32%

27%

9%

All Employees

Managers

Senior Leaders

All Employees

Managers

Senior Leaders

2018-22
52%

51%

47%

47%

2018-22

50%

50%

45%

46%

49%

44%

27%

28%

29%

23%

23%

24%

20%
17%

16%

17%

17%

6%

2018

19

20

21

22

2018

8%

19

32%

25%

6%

6%

20

21

32%

27%

9%

22

Please see our EEO-1 report and ESG Data and Assurance page for additional information.

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Our Inspired People

Our annual pay equity analysis, which includes base salary, bonus andlong-term incentives, is reviewed by our executive committee and boardof directors. Our most recent analysis was completed in the first quarterof 2023. It found that women and people of color were paid within +/-3%of their male and white peers, respectively, in the same job and labormarket.1 If we find differences in compensation not explained by relevant
job factors, we adjust compensation if appropriate.

Resilient Communities

Appendix

Philanthropy
Giving back to the communities where we work is an integral part ofour social responsibility. The Prologis Foundation is developing a new
giving strategy that will include DEIB-focused initiatives and increasedtransparency. More detail will be available in our next ESG report.

An inclusive work environment fosters innovation and allows everyone todo their best work. Our DEIB offerings strengthen employee engagement
and success. These include training resources, cultural awarenesscampaigns and celebrations of special days and months (e.g., Black
History, Women’s History, Pride). Prologis provides dedicated funding
and staffing resources to help our five employee resource groups (ERGs)
cultivate a culture of inclusion. These groups include the Asian Leadership
Network, the Black Industrial Leadership Network, Hispanic/Latinx
Organization for Leadership and Advancement, Leadership Empowerment
Alliance at Prologis (women) and the Prologis Pride Network. We measure
our progress in building an inclusive work environment through specificquestions in our employee engagement surveys.
Procurement
A world-class procurement program requires effective planning,strategic sourcing, execution and management. At Prologis, we work tounderstand our economic impact and build strong relationships with our
suppliers. In 2023, we intend to invest in the growth of Minority/Womenowned Business Enterprises (MWBEs) through increased partnership
opportunities. This will include setting a baseline for direct and indirectspending with MWBEs to inform the development of a supplier diversity
strategy and supplier capacity-building programs. We plan to reporton this work in more detail in our next ESG report. For additional
information, please see Supply Chain Responsibility.

1.

Our DEIB resources include DEIB training, cultural awareness campaigns andcelebration of special days and months.

Pay equity analysis included women in our global workforce and people of color in the U.S.

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Our Inspired People

Resilient Communities

Appendix

Employee health and safety
A safe work environment, whether an office
or a building and development site, is a highpriority at Prologis. We educate employees
and contractors about our global safety
standards. We provide safety-focusedtraining, and we verify compliance throughsafety observation checklists, completedby Prologis project safety managers, andperiodic third-party safety audits.

Employee lost time
injury frequency

Number of injuries per 1 million hours worked

For building construction and renovation,
our design guidelines require safety features,such as anchor points, railings and skylightscreens. Each development project musthave a qualified safety inspector who is freefrom any other project responsibilities.
Prologis employees, contractor employees
and anyone else may report a job-site
safety concern using our anonymous thirdparty-administered safety helpline, which
has options for reporting via the web andphone (1-833-SAFE-PLD in the U.S. andCanada; additional numbers are listed on ourcompany intranet). In 2022, we received nocalls to the safety helpline.

5.00
4.00
3.00
2.00

1.10

1.00
0

1.

2018 1

19

0.94

20

1.34
0.68
21

Our safety program is overseen by a global
safety committee, composed of senior
executives from relevant global functions.
This committee, which meets quarterly,
identifies and implements best practices
and standards and facilitates employee andcontractor training.

Prologis educates employees and contractors
about our global safety standards and provides
safety-focused training.

22

No data was reported in 2018.

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Our Inspired People

Resilient Communities

Appendix

Resilient Communities
By improving the efficiency of local
supply chains, we create value, drive
economic development and build resilient
communities. We work in partnership withlocal leaders and organizations to provide
job training programs; promote community
health and safety; and enhance park andtransit infrastructure.

$315B

Prologis has $315B
in direct, indirect andinduced economic
impact per year,
according to a study by
Oxford Economics.

21,000We’ve trained
21,000 people inlogistics through our
Community Workforce
Initiative since 2018.

$6.5M

In 2022, Prologis andthe Prologis Foundation
made $6.5 million
in contributions tocommunity organizations
around the world.

14,500Our employees donatedmore than 14,500
hours to community
organizations in 2022.

Poland team members
on IMPACT Day 2022.
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Resilient Communities

Appendix

Stakeholder engagement
We can accomplish more when we
incorporate ideas and input from ourstakeholders.
We engage with our employees throughtopic-specific webinars, intranet storytellingand quarterly town hall meetings where
our leaders can share what’s on theirminds and answer employee questions.
We aim to create a people-first culture thatprioritizes well-being and connects Prologis
employees around the world.
We are engaged and active community
members. During project planning anddevelopment, we communicate withelected officials, community groups andother businesses. Depending on the
project, this can include face-to-facemeetings, presentations and community
workshops. Local feedback helps us create
value beyond that of a typical distribution
center. Members of our local teams
participate in community organizations,
volunteer with local nonprofits and raise
their families in the communities where we
do business.
Our maintenance technicians, customerfocused managers and regional leaderslisten to customers and try to anticipate
their needs. They work to understandand exceed expectations though onsite

1.

visits, emails, phone calls and an online appthat allows customers to submit requests
for service. They also propose sustainable
solutions to help our customers reduce theircosts, emissions and impact. For more on
customer centricity, please see What makes
us different.
We educate policymakers about how
our distribution centers support both local
economies and the global supply chain. Key
topics include sustainable development andland use; the impact of our investments inrenewable energy, mobility and workforce
training; how public-private partnerships
can accelerate change in our industry; andhow certain tax policies might impact ourbusiness and our shareholders. We analyze
proposed policies and share our perspectivewith relevant decision-makers. At the local
level, we work to align our projects withlocal planning documents, such as a city’s
general plan.
In 2022 and the first quarter of 2023,
we engaged with 71%1 of our top 100
shareholders, representing 43% of total
outstanding shares. In response to their
feedback over the years, we have madeenhancements or adjustments to our
executive compensation and corporate
governance. For more detail, please see
our most recent Proxy Statement.

Increasing politicaltransparency
In 2022, Prologis was named one of
the “most improved” companies on the
CPA-Zicklin Index of Corporate Political
Disclosure and Accountability with ascore of 78.6.
Our political participation policy
prohibits the use of corporate funds or
assets to support U.S. federal or statecandidates or political parties.
We engage with policymakers throughour membership in trade associations,
including NAREIT and NAIOP. We
post annual lobbying expenditures,
including the total amount paid intrade association membership fees, toour website. We do not allow thesemembership fees to be used to support
any U.S. federal or state candidate
or political party. The governancecommittee of our board of directors
receives an annual update on our public
policy priorities, lobbying expendituresand payments to trade associations.

Calculated by outstanding shares of common stock of our top 100 stockholders. Our top 100 stockholders hold 80% of our outstanding shares.

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Economic and social impact
Logistics real estate can have a significant
positive impact on the surrounding community.
We commissioned a study by the independent
advisory firm Oxford Economics in 2022 thatfound that $2.7 trillion in goods flows throughour distribution centers each year.

Prologis is committed to openness andtransparency regarding taxes. Our global
head of tax is responsible for our tax
policies and procedures. We comply withall applicable rules and regulations andreport current and deferred domestic andEconomic impact
We commissioned a study by the independent advisory firm Oxford Economics in 2022, which
describes our economic impact.

2.8%

of global GDP

3.5M

jobs (direct, indirect and induced);nearly 1.1M people work under a
Prologis roof each day

4.0%

of GDP for the 19 countries
where we do business$315B

in economic impact (direct,
indirect and induced) each year

24.3%

of global goods consumption
in those 19 countries$66B

in global tax impact

international tax liabilities in our Form 10K. Our
tax planning is aligned with our commercial
business activities.
We create additional benefit by locating ourlogistics facilities close to urban centers: We
shorten delivery routes, reduce delivery times
and reduce related emissions. Our customers
and our customers’ customers enjoy nextday or even same-day delivery of the goods
and services they need. (Thanks to logistics
real estate, three-week shipping is a thingof the past.) Additional benefits include
plentiful logistics jobs, shorter commute times
for logistics workers and, in some cases,
reclamation and remediation of abandoned orbrownfield sites.
As a long-term owner, we value longterm relationships with the people in thecommunities where we do business. Our goalis always to be the logistics facility providerof choice by creating value not only for ourcustomers, but also for the communities
where we operate. As an example, in the
United Kingdom, the Social Value Portal
determined that two Prologis projects would
provide more than $35 million of local socialand economic value, including 82 construction
and logistics jobs.

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Community Workforce Initiative
Our Community Workforce Initiative (CWI)
is a digital training platform that builds atalent pipeline for our customers and creates
economic opportunity in the communities
where we do business. CWI includes courses inareas such as equipment training; inventory andwarehouse management; and environmental
impact. The Association of Supply Chain
management has certified CWI in “logistics
training,” the first certificate of its kind.
Since 2018, we have trained approximately
21,000 people and helped place more than

Our Inspired People

Resilient Communities

Appendix

3,400 of them in logistics jobs. We are on
track to exceed our goal of training 25,000
people by 2025.
PARKlife™
At some of our logistics centers, we create
green spaces, onsite sports facilities, fitness
trails, murals and other artwork, job training
centers and other community features.
PARKlife provides value beyond a typicalwarehouse and supports our customers’
top priority: attracting and retaining labor by
improving the quality of life in the community.
− In the UK, the Prologis team incorporated

wellness and recreational features at
DIRFT. (DIRFT also offers logistics training
in partnership with CWI.)− The team in Lodi, Italy, introduced its first
open-air museum within a logistics park.
The work of eight internationally renowned
Italian urban artists is further enhancedwith green spaces, ping pong tables andoutdoor dining areas throughout theproperty.
− The Prologis team in Spain regularly hosts
PARKlife events such as a community
blood donation drive, a running club andactivities focused on food, fitness and fun.
− In Mexico, our team is creating mini libraries
and building soccer fields.
Space for Good
Through our Space for Good program,
we donate temporary, rent-free space inunoccupied parts of our logistics buildings tocharitable organizations that provide disaster
relief or address short-term community
needs. In 2022, in response to a rangeof crises around the world, we donatednearly 500,000 square feet of space worth$2.48 million in in-kind rent to 17 charities.
As an example, following the devastating
earthquake that struck Turkey and Syria
in early 2023, Prologis Spain provided acustomer with warehouse space in Prologis
Park Coslada to receive, classify and palletize
goods for delivery to the disaster zone.

Mural installation at Prologis Park Lodi, Somaglia, Italy as part of Prologis' PARKLife program.

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Sustainable Logistics

Our Inspired People

Resilient Communities

AppendixCommunity health and safety
Protecting health and safety is a top priority and a key part of our longterm commitment to the communities where we operate. This includes
our generation of renewable energy to support community solar and ourwork to build EV-charging infrastructure to enable the electrification of
our customers’ fleets.

We develop disaster preparedness
and recovery plans to support thecommunity through hard times.
Our leases require tenants to comply with all applicable laws andregulations in their operations and occupancy. We conduct financial due
diligence on a tenant before entering into a lease agreement, and wework closely with our tenants throughout their leases. Once leased, ourtenants have exclusive possession and control of the premises under
the terms of the lease as well as under tenant-landlord law. When we
become aware of conditions that might impact community safety, we
notify relevant authorities and take appropriate action, including seeking
to evict the tenant if warranted by the circumstances and permitted byapplicable law. When a community safety incident occurs at or near a
Prologis property, we work with our tenants to mitigate and minimize thecommunity impact as part of our commitment to being a good neighbor.
We also develop disaster preparedness and recovery plans to maintainbusiness continuity and support the community through hard times. In
2022, across our nearly 5,500-facility portfolio, there were 34 times
when natural hazard events resulted in insurance claims. Only two of these
events led to business-continuity-insured damage in excess of $500,000.

Disaster preparedness in Japan
Because of its climate and topography, Japan is particularly vulnerable
to natural disasters. During the Great East Japan Earthquake of 2011,
many customers used Prologis facilities as shelter. This experience
prompted our Japan team to create agreements with local authorities in
11 cities to better prepare for the next disaster.
These agreements include disaster relief support and both indoor andoutdoor space and emergency resources. Some of the agreements also
ensure supplies, such as food, bedding and other goods, are stockpiled
for those taking shelter at a Prologis park.
Local teams work with tenants on disaster prevention measures,
business continuity plans and resources, such as:− Emergency earthquake alerts and satellite phones− Power supplies that can maintain power for up to 72 hours in theevent of a disruption− Well water purification systems
Evacuation drills and training help ensure customers and employees knowwhat to do—and how to use crucial safety equipment if a disaster occurs.

40CEO Letter

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Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

AppendixCommunity involvement
We focus our community giving and volunteering in three areas:
education, the environment and community support.
On IMPACT Day, our annual global day of service, we close our offices
and encourage every employee to participate in a local volunteer
event. In 2022, Prologis employees gave more than 8,500 hours toorganizations such as the Alameda County Community Food Bank
(California), Pane Quotidiano (Italy), The Morton Arboretum (Chicago),
Habitat for Humanity (19 projects around the world), Saint Gabriel School(France), Singapore Community Development Council and 3V Paralympic
Sport Association (Sweden). In addition to IMPACT Day, each employee
receives an allocation of 32 paid hours per year to volunteer with
nonprofit organizations in their community, subject to manager approval.
In 2022, Prologis and the Prologis Foundation made $6.5 million incontributions to community organizations around the world. In early
2022, in response to the invasion of Ukraine, employees donatedapproximately $250,000 to organizations responding to thishumanitarian crisis. Combined with a double match from the Prologis
Foundation, our contribution to this cause totaled more than $750,000.
The Prologis Foundation also supports employees who participate incommunity-based organizations by providing matching gifts as well as
Dollars for Doers, where support is based on the number of volunteer hours.

Giving and volunteering totals
2018

2019

2020

2021

2022

Total charitable contributions
benefiting the community(Million USD)

$2.60

$2.30

$8.20

$4.70

$6.48

Hours of employee
volunteer time1

10,625

11,872

4,428

7,324

14,5571.

2022 IMPACT Day. Houston, Texas (top); Gothenburg, Sweden (bottom left);
Denver, Colorado (bottom right).

We have updated historical data to only include employee volunteer hours. We had previously included employee
time related to the management of Prologis' community programs.

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Appendix

Appendix

Prologis Port Reading, Carteret, New Jersey.
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Appendix

Performance data
2018

2019

2020

2021

2022

Revenue (dollars in billions)

$2.80

$3.33

$4.44

$4.76

$5.97

Assets under management (dollars in billions)$86.70$118.40$148.30$215.10$195.81

Square footage of real estate portfolio (MSF)

768

814

984

1,001

1,213

Number of buildings (owned and managed portfolio)

3,690

3,840

4,703

4,735

5,495

Number of customers

5,100

5,000

5,500

5,800

6,600

Global occupancy rate

97%

97%

96%

98%

98%

Global customer retention rate

76%

79%

77%

74%

78%

Number of employees

1,617

1,713

1,945

2,053

2,466

4,045

10,85810,020

8,259

3,898

6,024,262

6,178,348

5,442,664

5,216,848

4,917,155

7,867

18,70622,785

20,662

9,905

Total renewable energy purchased or generated for our operations (MWh)

72

72

72

214

346

Onsite solar generating capacity installed (in MW)

Our Business

Environment
Scope 1 and 2 GHG emissions (mtCO2e—market based w/ RECs)1
Scope 3 GHG emissions (mtCO2e—location based)

1

Energy consumption (MWh)

186

212

252

285

405

Area of sustainably certified space (million square feet)

117

145

170

195

235

LED lighting (% of owned and managed operating properties)3

27%

33%

42%

57%

71%

52%

51%

50%

50%

49%

27%

28%

29%

32%

32%

134

597

4,036

6,809

10,11910,625

11,872

4,428

7,324

14,557

Charitable giving (dollars in millions)

$2.60

$2.30

$8.20

$4.70

$6.48

Employee ethics training completed

100%

100%

100%

100%

100%

—

1.10

0.94

1.34

0.68

2

Social & Governance
Women in global workforce
People of color in U.S. workforce
People trained through Community Workforce Initiative
Employee volunteer hours

4

5

Employee lost time injury frequency rate (per 1 million hours worked)
1.
2.
3.
4.
5.

In consultation with an independent third party, we have updated our 2019-2021 greenhouse gas emissions to reflect changes to our business(recent acquisitions), improvements to our emissions methodology and a new baseline year for our science-based net-zero target.
Within our owned and managed portfolio. Does not include properties from the Urban Spaces acquisition.
Within our owned and managed operating properties. Does not include properties from the Duke and Urban Spaces acquisitions.
Historical data has been updated. 2018-2019 data is not included in cumulative total. 2020-2022 data includes participants in the online program only.
Historical data has been updated. Previously reported data included staff time to support community programs.

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Appendix

Assurance statement
Independent assurance statements for our ESG report and our GHG emissions are available on the Supplemental Information page of our website.

LRQA Independent Assurance Statement

This Assurance Statement has been prepared for Prologis, Inc. (Prologis) in accordancewith our contract but is intended for the readers of this Report.

Note: The extent of evidence-gathering for a moderate assurance engagement is lessthan for a high assurance engagement. Moderate assurance engagements focus onaggregated data rather than physically checking source data at sites. Consequently, thelevel of assurance obtained in a moderate assurance engagement is substantially lower
than the assurance that would have been obtained had a high assurance engagement been
performed.

Terms of Engagement

LRQA’s Approach

LRQA was commissioned by Prologis to provide independent assurance on its 2022
Environmental, Social and Governance (ESG) Report (the report) to a moderatelevel of assurance and materiality of the professional judgement of the verifier using
AccountAbility’s AA 1000AS (v3), where the scope was a Type 2 engagement.

LRQA’s assurance engagements are carried out in accordance 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 raisedby stakeholders were captured correctly. We did this through interviews with senior
management and a review of procedures and processes in place to manage stakeholder
engagement.
• Reviewing Prologis’ process for identifying and determining material issues to confirm
that the right issues were included in their Report. We did this by independently
reviewing Prologis’ internal materiality process, benchmarking reports written
by Prologis and its peers to ensure that sector specific issues were included forcomparability, referencing the Global Reporting Initiative (GRI) Universal Standards andTopic-specific Standards and referencing Sustainability Accounting Standards Board(SASB) real estate sector standard.
• Auditing Prologis’ data management systems to confirm that there were no significant
errors, omissions or mis-statements in the Report. We did this by:– sampling specific source and aggregated data points referenced in the Report– speaking with key people responsible for compiling the data and drafting the Reportand– interviewing members of the executive committee, senior management, and various
other roles within the company by virtual meetings.

Relating to Prologis’ Environmental, Social and Governance Report
for Calendar Year 2022

Our assurance engagement covered Prologis’ global operations and activities andspecifically:• verified conformance with AA1000 AccountAbility Principles (AA1000AP 2018); and• evaluated the accuracy and reliability of data and information.
Our assurance engagement excluded the data and information of Prologis’ suppliers,
contractors and any third-parties mentioned in the report.
LRQA’s responsibility is only to Prologis. LRQA disclaims any liability or responsibility
to others as explained in the end footnote. Prologis’ responsibility is for collecting,aggregating, analysing and presenting all the data and information within the report and formaintaining effective internal controls over the systems from which the report is derived.
Ultimately, the report has been approved by, and remains the responsibility of Prologis.
LRQA’s corresponding Greenhouse Gas Verification Assurance Statement should bereferred to in conjunction with this Assurance Statement.
LRQA’s Opinion
Based on LRQA’s approach nothing has come to our attention that would cause us tobelieve that Prologis has not, in all material respects:• Met the requirements above;• Disclosed accurate and reliable performance data and information as no errors oromissions were detected; and• Covered all the issues that are important to the stakeholders and readers of this report.
The opinion expressed is formed on the basis of a moderate level of assurance and at themateriality of the professional judgement of the verifier.

Observations
Further observations and findings, made during the assurance engagement, are:• Stakeholder inclusivity:
We are not aware of any stakeholder groups that have been excluded from Prologis’
stakeholder engagement process. Prologis refreshed the 2017 stakeholder engagement
process in 2019 and LR encourages further engagement of external stakeholders
to support results. The process is biennial and was expected to be completed again
in 2021. Due to limited resources, Prologis conducted the 2021 review by engaging
internal stakeholders including those who have direct contact with Prologis external
stakeholders. Prologis plans to improve the process and conduct a more comprehensive
review. It was schedule for 2022 and is now planned for later in 2023.

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Our Inspired People

Materiality:
We are not aware of any material issues concerning Prologis’ sustainability
performance that have been excluded from the Report. The Report covers a rangeof ESG performance. The published annual PDF report provides highlights of key
accomplishments and initiatives. The addition of the Data Disclosure Table in 2020,
which Prologis has continued to develop in 2021, provides comprehensive ESG dataspanning the last five years. Reporting is also consistent with GRI and SASB Real Estate
reporting.
Responsiveness:
Prologis engages regularly with internal and external stakeholders, with an emphasis on
customers. Specific examples of responsiveness in 2021 include:– continued expansion of access to green energy through solar and reduced energy
consumption through LED lighting and cool roofs– installation of battery storage and electric vehicle stations and programs forcommunity buy back of excess solar electricity– continuing to support the concept of circular building, reducing waste and GHGs
across the life cycle of the asset.
In 2022 an example includes reporting metrics on pay equity.
These goals are supportive of the United Nations Sustainable Development Goals(UN SDGs) and align with Prologis, customer, local community and global community
sustainability goals.

••

Reliability:
We believe that the criteria applied are appropriate and sufficient to produce consistent,
unbiased, understandable content for the end user.
Impact:Prologis goals and strategies are mature and in line with ESG philosophy. Impacts acrossthe property life cycle are considered, improvements are committed to, progress ismeasured and metrics are reported. Two prominent life cycle examples include solar andLED. Continuation in this strategy is seen in growing prominence of EV charging stations
and expanding solar beyond what the building tenant can utilize.

Resilient Communities

Appendix

The verification assessment along with GHG verification is the only work undertaken by
LRQA for Prologis and as such does not compromise our independence or impartiality.

SignedDated: May 16, 2023

Andrea M. Bockrath
LRQA Lead Verifier
On behalf of Lloyd’s Register Quality Assurance, Inc.
2102 City West Blvd., Houston, Texas 77042
LRQA reference: UQA00000496

LRQA Group Limited, its affiliates and subsidiaries, and their respective officers, employees oragents are, individually and collectively, referred to in this clause as 'LRQA'. LRQA assumes noresponsibility and shall not be liable to any person for any loss, damage or expense caused byreliance on the information or advice in this document or howsoever provided, unless that person
has signed a contract with the relevant LRQA entity for the provision of this information or advice
and in that case any responsibility or liability is exclusively on the terms and conditions set out inthat contract.
The English version of this Assurance Statement is the only valid version. LRQA assumes noresponsibility for versions translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may
only be reproduced in its entirety.
Copyright © LRQA, 2023

LRQA’s Standards, Competence and Independence
LRQA ensures the selection of appropriately qualified individuals based on their
qualifications, training and experience. The outcome of all verification and certificationassessments is then internally reviewed by senior management to ensure that the approach
applied is rigorous and transparent.

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Appendix

GRI index

This report was prepared in accordance with the Global Reporting Initiative (GRI) Universal Standards 2021 and covers the topics identified in our mostrecent materiality assessment completed in 2021. We plan to complete an updated materiality assessment in 2023.
Materiality Assessment

MATERIALITY MATRIXTOPICSOCIAL

Importance to Stakeholder (3-5)

3
4

7
2

12

13
1

6

11
10

5
8

ENVIRONMENTAL

9

GOVERNANCE
14

Relevance to the Business (3-5)

1Diversity and Equal Opportunity

2

Health & Safety

3

Employment & Labor Relations

4

Customer Privacy

5Community/Local Economic Development

6

Energy7

Green Building Certifications

8

Emissions9Construction Materials & Waste

10

Green Financing

11

Corporate Governance

12

Resilience

13

Ethics and Compliance

14

Procurement Practices

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GRI index
GRI MATERIAL TOPICDISCLOSURE

LOCATION

LINKED RESOURCES

GRI 2: General
Disclosures

2-1

2-1 Organizational details

Prologis Inc.

What We Do

2-2

2-2 Entities included in the organization’ssustainability reporting

About Prologis

Prologis ESG

2-3

2-3 Reporting period, frequency and contact ESG Report: About this report
point

2-4

2-4 Restatements of information

ESG Report: Climate strategy; GHG emissions
rebaseline
Assurance Statement

Assurance Page

2-5

2-5 External assurance

Assurance Statement

Assurance Page

2-6

2-6 Activities, value chain and other business ESG Report: Sustainable Logistics
relationships

2-7

2-7 Employees

ESG Report: Inspired People; Inclusion anddiversity performance
Proxy Statement

Human Rights Policy

2-8

2-8 Workers who are not employees

ESG Report: Inspired People

Human Rights Policy

2-9

2-9 Governance structure and composition

ESG Report: Ahead of What's Next
Proxy Statement

SEC Filings

2-10

2-10 Nomination and selection of the highest Proxy Statement
governance body

SEC Filings

2-11

2-11 Chair of the highest governance body

Proxy Statement

SEC Filings

2-12

2-12 Role of the highest governance body inoverseeing the management of impacts

Proxy Statement

SEC Filings

2-13

2-13 Delegation of responsibility for
managing impacts

ESG Report: Ahead of What's Next; Governance SEC Filings

2-14

2-14 Role of the highest governance body insustainability reporting

Proxy Statement

2-15

2-15 Conflicts of interest

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct
Code of Ethics and Business Conduct

2-16

2-16 Communication of critical concerns

ESG Report: Health and Safety
Code of Ethics and Business Conduct

Code of Ethics and Business Conduct

2-17

2-17 Collective knowledge of the highest
governance body

Proxy Statement
Annual Report

SEC Filings

Reports and Resources

ESG Policy

SEC Filings

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GRI MATERIAL TOPICDISCLOSURE

LOCATION

LINKED RESOURCES

GRI 2: General
Disclosures

2-18

2-18 Evaluation of the performance of thehighest governance body

Proxy Statement

SEC Filings

2-19

2-19 Remuneration policies

Proxy Statement

SEC Filings

2-20

2-20 Process to determine remuneration

Proxy Statement

SEC Filings

2-21

2-21 Annual total compensation ratio

Proxy Statement

SEC Filings

2-22

2-22 Statement on sustainable development
strategy

ESG Report: Letter from our Co-Founder,
Chairman and CEO
Annual Report

ESG Policy

2-23

2-23 Policy commitments

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct

2-24

2-24 Embedding policy commitments

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct

2-25

2-25 Processes to remediate negative
impacts

ESG Report: Ahead of What's Next; Risk
management

2-26

2-26 Mechanisms for seeking advice andraising concerns

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct

2-27

2-27 Compliance with laws and regulations

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct

2-28

2-28 Membership associations

ESG Report: Stakeholder engagement

2-29

2-29 Approach to stakeholder engagement

ESG Report: Stakeholder engagement

2-30

2-30 Collective bargaining agreements

ESG Report: Ethics, compliance and human rights Code of Ethics and Business Conduct

GRI 203: Indirect
Economic Impacts
2016

203-1

203-1 Infrastructure investments andservices supported

ESG Report: Economic and social impact

Human Rights Policy

203-2

203-2 Significant indirect economic impacts

ESG Report: Resilient Communities; Economic
and social impact

Human Rights Policy

GRI 204: Procurement
Practices 2016

204-1

GRI 204: Procurement Practices 2016

ESG Report: Supply chain responsibility

ESG Data

301-1 Materials used by weight or volume

ESG Report: Green building design andconstruction

ESG Data

301-2

301-2 Recycled input materials used

ESG Report: Green building design andconstruction

ESG Data

301-3

301-3 Reclaimed products and theirpackaging materials

ESG Report: Green building design andconstruction

ESG Data

GRI 301: Materials 2016 301-1

ESG Policy

Memberships and Associations

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GRI MATERIAL TOPICDISCLOSURE

LOCATION

LINKED RESOURCES

GRI 302: Energy 2016

302-1

302-1 Energy consumption within theorganization

ESG Report: Climate strategy
ESG Data Microsite

ESG Data

302-2

302-2 Energy consumption outside of theorganization

ESG Report: Climate strategy
ESG Data Microsite

ESG Data

302-3

302-3 Energy intensity

ESG Report: Climate strategy
ESG Data Microsite

ESG Data

302-4

302-4 Reduction of energy consumption

ESG Report: Climate strategy

ESG Data

302-5

302-5 Reductions in energy requirements ofproducts and services

ESG Report: Climate strategy

ESG Data

401-1

401-1 New employee hires and employee
turnoverESG Report: Inspired People

ESG Data

401-2

401-2 Benefits provided to full-time
employees that are not provided totemporary or part-time employees

ESG Report: Inspired People

ESG Data

401-3

401-3 Parental leave

ESG Report: Inspired People

403-1 Occupational health and safety
management system

ESG Report: Employee health and safety;
Community health and safety

GRI 401: Employment
2016

GRI 403: Occupational 403-1
Health and Safety 2018
403-2

403-2 Hazard identification, risk assessment, ESG Report: Employee health and safety;
Community health and safety
and incident investigation

403-3

403-3 Occupational health services

ESG Report: Employee health and safety;
Community health and safety403-4 403-4 Worker participation, consultation,and communication on occupational healthand safety

ESG Report: Employee health and safety;
Community health and safety

403-5

ESG Report: Employee health and safety;
Community health and safety403-5 Worker training on occupational
health and safety403-6 403-6 Promotion of worker health

ESG Report: Employee health and safety;
Community health and safety

403-7

ESG Report: Employee health and safety;
Community health and safety403-7 Prevention and mitigation ofoccupational health and safety impacts
directly linked by business relationships

Human Rights Policy

403-8 403-8 Workers covered by an occupational
health and safety management system

ESG Report: Employee health and safety;
Community health and safety

Human Rights Policy

403-9

ESG Report: Employee health and safety
ESG Data Microsite

ESG Data

ESG Report: Employee health and safety
ESG Data Microsite

ESG Data

403-9 Work-related injuries

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GRI MATERIAL TOPICDISCLOSURE

LOCATIONGRI 405: Diversity
and Equal Opportunity
2016

405-1

405-1 Diversity of governance bodies andemployees

ESG Report: Ahead of What's Next; Governance;
Diversity, equity, inclusion and belonging

405-2

405-2 Ratio of basic salary and remuneration ESG Report: Diversity, equity, inclusion andbelongingof women to men

GRI 413: Local
Communities 2016

413-1

413-1 Operations with local community
engagement, impact assessments, anddevelopment programs

ESG Report: Economic and social impact

Human Rights Policy

413-2

413-2 Operations with significant actualand potential negative impacts on local
communities

ESG Report: Economic and social impact

Human Rights Policy

418-1

418-1 Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data

ESG Report: Ahead of What's Next; Risk
management
Proxy Statement

Code of Ethics and Business Conduct

GRI 418: Customer
Privacy 2016

LINKED RESOURCES

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SASB disclosure
Prologis supports the mission of the Sustainability Accounting Standards Board (SASB), which creates industry-specific sustainability accounting standards
that help companies disclose financially material, decision-useful environmental, social and governance (ESG) information to investors. This is the fourth yearthat Prologis is disclosing data using SASB’s 2018 Real Estate Standard. The following table contains our disclosure on the topics included in that standard.
Activity metrics that may assist in the accurate evaluation and comparability of disclosure may be found throughout the Prologis 2022-23 ESG Report.
CODE

ACCOUNTING METRICPROLOGIS INFORMATION

IF-RE-130a.1

Energy consumption data coverage as apercentage of total floor area, by property
subsector

Energy consumption data coverage from the global Prologis operating portfolio as apercentage of floor area was equal to 44% in 2022.

IF-RE-130a.2(1) Total energy consumed by portfolio area withdata coverage, (2) percentage grid electricity, and(3) percentage renewable, by property subsector

From the portfolio with available energy data coverage from 2022, the following details
pertain to energy:(1) The total energy consumption: 11,209,190 MWh(2) Percentage grid electricity: 53%(3) Percentage of electricity that is renewable (Logistics/Distribution Warehouse): 8%

IF-RE-130a.3

Like-for-like percentage change in energy
consumption for the portfolio area with data
coverage, by property subsector

Like-for-like change in energy consumption for the global Prologis operating portfolio
was a 3% decrease from 2021 to 2022. Fluctuations in occupancy, hours of operation andchanges in customer mix could have led to this decrease.

IF-RE-130a.4

Percentage of eligible portfolio that (1) has anenergy rating and (2) is certified to ENERGY
STAR, by property subsector

Prologis has a goal to certify 100% of eligible new developments and redevelopments
to sustainable building certification standards. These sustainable building certification
standards incorporate energy efficiency features, as well as other features for water
efficiency, waste reduction, and others that promote tenant health and well-being, to namea few. Given our asset class and building type, we do not typically submit for EnergyStar
certification. However, in certain regions like Europe, where Energy Performance
Certificates (EPCs) are required to be maintained by various country requirements, wemanage the EPCs in an effort to maintain local compliance. In 2022, we engaged a third
party to complete an analysis of our EPC records across our European portfolio andestablished enhanced processes for managing EPCs moving forward.

IF-RE-130a.5

Description of how building energy management
considerations are integrated into property
investment analysis and operational strategy

Prologis integrates energy and water reduction technologies into our new buildings as partor our goal to have 100% of new development and redevelopment achieve sustainablebuilding certification. These strategies ensure the resilience and enduring value of ourbuildings, creating value for our customers and our company. In addition, Prologis has acustomer-centric approach focused on helping further the operational efficiency of ourcustomers. We have energy, mobility and sustainability solutions available through our
Essentials marketplace, which were significantly expanded in 2022. We also allocate a
portion of our capital expenditure for existing buildings to LED lighting retrofits and otherenergy-saving technologies, water-saving features, cool roofing technology and solar
installations.

ENERGY INFORMATION

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ACCOUNTING METRICPROLOGIS INFORMATION

IF-RE-140a.1, IF-RE140a.2, IF-RE-140a.3(a.1) Water withdrawal data coverage as apercentage of (1) total floor area and (2) floorarea in regions with High or Extremely HighBaseline Water Stress, by property subsector.
(a.2) Total water withdrawn by portfolio area withdata coverage and (2) percentage in regions withHigh or Extremely High Baseline Water Stress, byproperty subsector (a.3) Like-for-like percentagechange in water withdrawn for portfolio area withdata coverage, by property subsector

Water withdrawals from logistics facilities are typically lower compared to other types ofbuildings, and thus less material than energy and emissions. (1) For 2022, we report on
data available on water consumption across a portion of our global offices. In 2022, we
had water consumption reporting from 25 of our global corporate offices, with 1.73 million
gallons consumed. We continue to work to improve data coverage. Like-for-like change
in water consumption was available for 12 offices that had both 2021 and 2022 data.
From the water data provided by the 12 offices with like-for-like data, there was a 33%
decrease in water withdrawals from 2021 to 2022. (2) At this time, we have not completed
a full mapping of water stress, but Prologis is using third-party data and internal tools formapping and evaluating physical climate risk exposure at the asset level through sciencebased climate scenarios. Based on the data of our physical climate risk assessments, we
can proactively implement mitigation strategies that further the resilience of our global
portfolio. This includes implementing site-specific mitigation measures, such as raisinga property out of the base flood elevation, raising the height of dock doors and othermeasures to ensure the long-term resilience of our assets.

IF-RE-140a.4

Description of water management risks anddiscussion of strategies and practices to mitigate
those risks

Even though logistics facilities typically have a lower water footprint compared to othertypes of buildings, we have adopted various sustainable water management practices andtechnologies to minimize water use and the impact of our assets on water quality. Manyof these efforts are a result of pursuing sustainable building certifications for 100% of new
developments and redevelopments globally. All of our water-related actions are project
specific, taking into account the site's soil conditions, rainfall patterns, topography andinfrastructure. Inside our buildings, we install low-flow toilets and motion-activated faucets
to reduce consumption. Outside, we landscape using native plants that are adapted to the
local climate and require limited additional watering. Many of our buildings also capture
rainwater that is used when irrigation is required. We continually monitor the evolution ofwater-management technologies, seeking to pass cost savings on to our customers

WATER MANAGEMENTMANAGEMENT OF TENANT SUSTAINABILITY IMPACTS
IF-RE-410a.1(1) Percentage of new leases that contain a cost
recovery clause for resource efficiency-related
capital improvements and (2) associated leased
floor area, by property subsector

Within the Prologis Clear Lease, we have adopted green lease language that seeks tobetter collaborate with our customers in sharing data, as well as providing options to installsystems that can help our customers to operate more efficiently and sustainably, such as
solar. In the future, we may have more quantifiable metrics on the coverage of our portfoliowith leases that specifically contain cost recovery clauses for resource efficiency-related
capital improvements. At the end of 2022, approximately 31% of total leases globally were
the Prologis Clear Lease, as measured by area.

IF-RE-410a.2

Percentage of tenants that are separately
metered or submetered for (1) grid electricity
consumption and (2) water withdrawals, byproperty subsector

Prologis is in the process of expanding our global data gathering systems and evaluating
various solutions, including submeter systems for our various tenant spaces. Within
the Prologis Clear Lease, we have adopted green lease language that seeks to bettercollaborate with our customers in sharing data, as well as providing options to installsystems that can help our customers to operate more efficiently and sustainably. In the
future, we may have more quantifiable metrics on the coverage for spaces that are using
these types of metering systems.

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ACCOUNTING METRICPROLOGIS INFORMATION

IF-RE-410a.3

Discussion of approach to measuring,
incentivizing, and improving sustainability impactsof tenants

Prologis works with a third-party data collection consultant to track customer energy
consumption for our global portfolio. Prologis' LED Essentials program is dedicatedto collaborating with customers to accelerate LED lighting upgrades that improve theoperational efficiency of our customers' businesses and decrease customer energy
consumption and associated emissions. 71% of our owned and managed operating
properties, excluding properties from the Duke and Urban Spaces acquisitions, had LED
lighting at the end of 2022. Our modern, efficient and resilient building design saves
money for our customers and minimizes impacts on our communities. Our focus on urban
locations allows our customers to meet consumer expectations around expedited delivery,
while also reducing overall transportation emissions from shortened delivery distances. By
incorporating ESG concepts into our lease agreements, deploying sustainability solutions
through the Prologis Essentials Marketplace and providing our customers with information
packets that include sustainable practices, Prologis improves the sustainability impacts ofour customers. We monitor local benchmarking ordinances and work with our property
management team to educate customers on how utility data collection can be automated.

IF-RE-450a.1

Area of properties located in 100-year floodzones, by property subsector

Using third-party data and internal tools for mapping and evaluating physical climate risk
exposure at the asset level through science-based climate scenarios, we can proactively
implement mitigation strategies that further the resilience of our global portfolio. This
includes implementing site-specific mitigation measures, such as raising a property out of
the base flood elevation, raising the height of dock doors and other measures to ensure thelong-term resilience of our assets. Disclosing a metric on the area of properties within 100year flood zones would need additional context to understand the site-specific mitigation
measures that have been put in place to lower the associated risk from the flood zone.
We will continue to explore additional disclosure of this data in response to stakeholder
feedback.

IF-RE-450a.2

Description of climate change risk exposure
analysis, degree of systematic portfolio exposure,and strategies for mitigating risks

Prologis takes a proactive approach to assessing natural hazards and climate exposuresacross our portfolio, including earthquakes, storms, floods and coastal exposure. Prologis’
Risk Management team is actively evaluating our portfolio exposure to ensure that wehave sufficient coverage and protection for our buildings, as well as using third-party data
to look ahead and evaluate climate scenarios that may impact our properties in the future.
These assessments allow us to determine the appropriate risk mitigation measures for our
portfolio and plan for longer term trends. We take preventative measures to improve theresiliency of our buildings to promote business continuity in our customers’ operations. As
a result of our long-term planning, resiliency measures implemented and diverse portfolio
footprint, we believe impacts to our portfolio arising from climate change are well managed.

CLIMATE CHANGE

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Appendix

TCFD disclosure
Prologis’ approach to identifying and managing climate-related risks
and opportunities in line with the recommendation of the Task Force on
Climate-related Financial Disclosures (TCFD) encompasses:− Dynamic risk management strategy focused on resiliency− Evaluating physical climate risk exposure at the asset level using
science-based climate scenarios− Following a Science Based Target (SBT) for determining GHG
emissions reduction targets across Scope 1, 2 and 3 emissions
Prologis has an established track record of ensuring its portfolio remains
resilient for its customers and stakeholders. This commitment not only
focuses on acute, near- term risks such as hurricanes and flooding, butalso considers longer-term trends resulting from the changing climate.
We develop assets with a long-term ownership horizon in mind and have
preparedness plans in place that have consistently differentiated our
response and helped us to deliver business continuity to our customers.
Looking forward, we are working with third parties on climate-related
scenario analysis to evaluate the exposure of our global assets to physical,
natural hazards across our portfolio, and to ensure we continue to beprepared for changes in frequency and severity of extreme weather
events. In addition to being a listed TCFD supporter and having TCFDaligned public disclosures, we have strong engagement from our
executive team and board members in evaluating climate-related risks
through briefings by the ESG and Risk Management groups, and a robust
program to track our efforts through metrics and targets. For our SBT
we are in the process of updating our target through the Science Based
Targets initiative’s validation process to align with the 1.5 degree Celsius
scenario as part of our commitment to net zero across our value chain by
2040. Our updated SBT will guide our transition to a low-carbon future
by reducing GHG emissions across our operations, portfolio of assets andthroughout our value chain.

Governance
The organization’s governance around climate-related risks andopportunities.
− Risk, including climate-related risks, are part of the Prologis board’s
oversight responsibility. Board updates have focused on Prologis’
climate-related physical risk assessments, coastal risks, as well as ESG
progress on GHG reductions and the expansion of our sustainability
offering for customers (e.g., solar installations, etc.).
− Our chief legal officer and general counsel oversees the Risk
Management team and our chief operating officer oversees ourEnergy, Mobility, Sustainability and ESG teams with broad supportand engagement across the entire organization. One example isour structured Investment Committee process, overseen by our
Executive Committee, that requires risks and ESG considerations be
evaluated for every investment decision. Furthermore, Prologis’ newchief energy and sustainability officer reports directly to our chief
operating officer and leads the sustainability program that will help ourcustomers transition to a low-carbon future.

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Strategy and risk management
The actual and potential impacts of climate-related risks andopportunities on the organization’s businesses, strategy and financial
planning. The processes used by the organization to identify, assess andmanage climate-related risks.
− Prologis is a long-term owner of logistics real estate. This requires
us to evaluate material risks and opportunities that may arise overthe short- (out to 2030), medium- (2030-2040) and long-term(2040-2050) time horizons, as well as risks that are acute or chronic,
including those associated with climate change. Evaluating risks
and opportunities and the potential financial implications ensure
the resilience of our assets and our customers operations, while
also identifying opportunities to deliver sustainable solutions to ourcustomers.
Our process for identifying and prioritizing risks & opportunities: Prologis
utilizes a dynamic risk oversight process to identify, evaluate and manage
risks across our enterprise, including ESG-related risks such as climatechange.
By embedding ESG and risk management throughout the organization,
Prologis evaluates the material risks and opportunities associated withclimate change. This can include risks from potential severe weather,flooding or coastal risk, and opportunities with enhanced energyefficiency products, renewable energy development, just to name a few.
We also account for these risks and opportunities in our Investment
Committee process.
− Prologis takes a proactive and customer centric approach to mitigate
our exposure to risks and create sustainable solutions that benefit ourcustomers:− Products and services− Examples include the Prologis Essentials LED lighting programthat helps our customers to lower energy costs and have more
efficient operations by upgrading to highly efficient LED lightingthat can lower energy costs by 60%-80%.

Resilient Communities

Appendix− Supply chain and/or value chain− Our SolarSmart program enables our customers to utilize onsite
renewable energy for their operations, lowering the emissions
from their supply chain, as well as from our value chain. Solar
installations on our rooftops are also adding more renewableenergy into the local utility grids of regions we operate in.
− Prologis is supporting its customers in the transition to electricvehicles by incorporating EV infrastructure into our new
developments. We are also developing a turnkey solution to
help customers transition to EVs within our existing buildings,
while also establishing collaborative partnerships with local
utilities.
− Operations (including types of operations and location of facilities)− Responsible investment practices advance green designprinciples and mitigate environmental, climate and other ESG
risks.
− Our portfolio is diversified across multiple geographies in 19
countries minimizing the material risk to our portfolio from any
one asset being exposed to a particular physical climate-relatedrisk.
− Using third-party data and internal tools for mapping andevaluating physical climate risk exposure at the asset level
through science-based climate scenarios, we can proactively
implement mitigation strategies that further the resilience of ourowned and managed portfolio. This includes implementing site
specific mitigation measures, such as raising a property out of
the base flood elevation, raising the height of dock doors, andother measures to ensure the long-term resilience of our assets.
− Adaptation and mitigation activities− Local and regional teams are equipped with disaster responseplans and take various risks into consideration when developingor maintaining our assets to make sure that they are resilient toclimate-related risks like flooding or extreme weather events.

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Our Inspired People− We implement site specific mitigation measures, some examples
include: raising properties out of the base flood elevation andraising the height of dock doors; increasing the thickness of roofmaterials in hail prone areas; and other measures to ensure thelong-term resilience of our assets to various natural hazards.
− For various acute risks including storm damage and flooding,
Prologis has a comprehensive insurance program in place totransfer risk.
− Investment in research and development− The Prologis Ventures group is making investments in various
startups that are helping our customers to address ESG-related
needs, including tools to help track and report the related
emissions from fleet vehicles in their operations.
− Our Risk Management team has sourced third-party data fromone of the world’s largest (re)insurers, Munich RE, that allows us
to map, score and evaluate the exposure of our assets to current
natural hazards and climate-related physical risks under thefollowing climate-related scenarios:

Resilient Communities

Appendix

Representative concentration pathways (RCP)effort-outcomes model

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Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Examples of climate-related risks and opportunities
TIME
HORIZONS

CLIMATE-RELATEDPHYSICAL RISKS

CLIMATE-RELATEDTRANSITION RISKS

CLIMATE-RELATEDOPPORTUNITIESShort-Term (Out to 2030)

Increased severity andfrequency of floods andstorms (Acute)Enhanced emission reporting and energy
benchmarking requirements (Policies &Laws)

Opportunities from increased customer focus on sustainablebuilding practices and efficiency solutions (Markets); LED
upgrades (Resource Efficiency; Products & Services); Solar
installations (Energy Sources; Products & Services); Highefficiency HVAC systems (Technology; Resource Efficiency;
Products & Services); Green Bonds tied to sustainability initiatives(Products & Services; Markets)

Medium-Term (20302040)

Increased heat stressrequiring more cooling(Chronic)

Building performance standards andother upgrade requirements (Policies &Laws; Resource Efficiency; Technology;
Products & Services)

Further renewable energy deployment (Energy Source);
Customer fleet electrification (Technology; Markets; Products &Services); Carbon storage in building materials (Technology)

Long-Term (2040-2050)

Sea level rise/coastal risk
(Chronic)

Net-Zero (Energy Positive) building
requirements (Policies & Laws; Resource
Efficiency; Energy Source; Technology;
Products & Services)

Building and supply chain electrification and resilience planning(Resource Efficiency; Energy Source; Technology; Products &Services)

Metrics and targets
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
− One of the primary metrics for assessing climate-related risks and opportunities is Prologis’ SBT for reducing Scope 1, 2 and 3 GHG emissions. For our
SBT we are beginning the process of updating the ambition of our target to align with the 1.5 degree Celsius scenario as part of our commitment to net
zero across our value chain by 2040.
− In addition to measuring progress toward our SBT, Prologis also has targets and measures efforts to enhance the efficiency and sustainability of ourassets. Metrics on numerous ESG-related initiatives are incorporated into our 2022 bonus targets for all Prologis employees and executives.
− We aim for 100% LED lighting across our owned and managed operating properties by 2025.
− We aim for 1 GW of installed solar capacity within our owned and managed portfolio, supported by storage, by 2025.
− We have a goal to achieve sustainable building certification on 100% of eligible developments and redevelopments globally approved after June
2021.
Further information on our progress toward these targets can be found in our 2022-23 ESG Report.

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Overview

Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Quantitative ESG bonus metrics in our 2022 bonus scorecard
In 2022, ESG metrics accounted for 10% of our bonus scorecard, including 4% for environmental/climate-related performance metrics summarized in the tablebelow. For 2023, ESG metrics will continue to comprise 10% of the bonus scorecard and will include targets for the same three environmental metrics.
PERFORMANCE
METRICTARGET PERFORMANCEFOR 2022

SUBMETRICWEIGHTING IN 2022

RATIONALE FORMETRIC

Solar MW installed

350 MW installed in 2022
(22% year over year increase)2%

Advances our solar program as a customer centric energy solution
and ancillary revenue source

Percentage of LED lighting
67% of owned and managed
installed across our entire owned operating properties using LED
and managed portfolio (by area) (10% more than year-end 2021)

1%

Advances our LED lighting program as a customer energy solution
and is critical to achieving our Science Based Target

Percentage of new
developments that are certified
sustainable (LEED or equivalent)1%

Obtaining third-party verification of our sustainable building practices
ensures accountability. The process is also a clear framework for
implementing green building features and systematic data collection
and meeting our carbon emissions and sustainability goals.

95% of new developments certified
sustainable58

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Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

GHG emissions rebaseline
In 2022, Prologis established a new SBT: We will achieve net-zeroemissions across our value chain by 2040 from a 2019 baseline. Our
baseline year of 2019 has more mature and complete emissions data—an
improvement from the baseline year (2016) for our prior SBT.
In addition to setting a new baseline year, we also updated our GHG
emissions reporting to reflect the following:− Business changes: We added assets from recent acquisitions,
including Liberty Property Trust, Industrial Property Trust, Crossbay’s
Urban Spaces portfolio and Duke Realty.
− Calculation process: We revised how we estimate emissions from
Downstream Leased Assets; how we evaluate outliers (which now
include y-o-y data variations of more than 20%); and how we use
CBECS values.
− Accounting choices: We reviewed and reclassified our GHG data tobetter align with GHG Protocol definitions and establish a materiality
boundary that includes our owned and managed operating anddevelopment portfolios.
Although we continue to calculate emissions from Purchased Goods &Services and Capital Goods based on the “dollar spend” methodology,
we are working to shift to the preferred “life cycle” approach.
Additionally, we have established a de minimis threshold of 5%, applied
separately to Scope 1 and 2 emissions and Scope 3 emissions, which,based on best available data, leads us to exclude the following categories
from our historical recalculations and our ongoing reporting:− Refrigerants1 (1.25% of Scope 1 and 2)− Chilled Water (0.08% of Scope 1 and 2)− District Heating (0.04% of Scope 1 and 2)− Business Travel (0.14% of Scope 3)− Fuel- and Energy-Related Activities (FERA) (0.04% of Scope 3)− Employee Commuting (0.15% of Scope 3)

1.
2.

Historical versus recalculated emissions
Market-based with RECs

Historical (old methodology and portfolio)

Recalculated (new methodology and portfolio) 2

12500
Historical (old methodology and portfolio)

Recalculated (new methodology and portfolio) 2

Scope 1 and 2, metric tons of CO2e
10858

10020

12500
10000

10858

8259

10020

10000
7500

8259
7500
5000

4842

5000
2500

4842

3841

3898

3011

3841

3898

3011

2500
0
2019

20

21

22

2019

20

21

22

0

Scope 3, million metric tons of CO2e
8.00

6.00

6.18
5.44

5.25
3.76

4.00

5.22

4.92

3.70

2.00

0
2019

20

21

22

Refrigerants were evaluated under normal operating conditions for comfort cooling. If there are any failures of refrigeration units during the reporting year, their impact on overall reporting will be evaluated.
Following the Duke acquisition, we consolidated direct operations (divested from Duke-occupied offices and sold mobile assets) and then, as required by the GHG Protocol, re-baselined GHG emissions to determine what they would have been had
the portfolios been combined in 2019, 2020 and 2021. Our 2022 consolidation of direct operations results in a 53% year-over-year decrease (64% from our 2019 baseline) in our 2022 reported Scope 1 and 2 emissions.

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Ahead of What’s Next

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Forward-looking statements
The statements in this report that are not historical facts are forwardlooking statements. These forward-looking statements are based on
current expectations, estimates and projections about the industry
and markets in which we operate as well as management’s beliefs
and assumptions. Such statements involve uncertainties that could
significantly impact our financial results. Words such as ”goal,”“commits,” “expects,” “anticipates,” “intends,” “plans,” “believes,”“seeks,” and “estimates,” including variations of such words and similar
expressions, are intended to identify such forward- looking statements,
which generally are not historical in nature. These statements are notguarantees of future performance and involve certain risks, uncertainties
and assumptions that are difficult to predict. Although we believe
the expectations reflected in any forward-looking statements are
based on reasonable assumptions, we can give no assurance that our
expectations will be attained, and therefore actual outcomes and results
may differ materially from what is expressed or forecasted in suchforward-looking statements.

Please refer to the “Risk Factors” set forth in our most recent Annual
Report on Form 10-K for a non-exhaustive list of factors that could
cause such forward-looking statements to differ from actual results.
The statements in this report are not intended to expand upon or
modify the regulatory disclosures of Prologis Management II S.à r.l.
or of our funds as found, for instance, in the SFDR Annex II templates
that are part of the pre-contractual documentation of said funds andwhich include, among others, what we define as environmental and/or social characteristics promoted for SFDR (EU 2019/2088) purposes.
Moreover, the statements in this report apply to Prologis as a whole andare not specific to our Strategic Capital business or to any one fund or
regulated entity.

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Resilient Communities

Appendix

Glossary and definitions
Acronyms and key terms
AUM: short for “assets under management,” which represents the estimatedfair value of the real estate we own or manage through both our consolidated
and unconsolidated entities.

GRESB: “Global Real Estate Sustainability Benchmark” assesses thesustainability performance of real estate and infrastructure portfolios andassets worldwide.
GRI: Global Reporting Initiative

Behind the meter: Electricity generation that does not feed into the local
utility’s grid.

ISO: International Organization for Standardization

Biodiversity: the variety of life in a particular habitat or ecosystem

LEED: Leadership in Energy and Environmental Design

Carbon neutral: When the carbon dioxide that is emitted is balanced by theremoval of an equivalent amount.

LGBT+: lesbian, gay, bisexual, transgender/transsexual +LED: LED stands for “light-emitting diode,” a type of energy-efficient lighting.

DEIB: diversity, equity, inclusion and belonging

Net zero: A greenhouse gas emissions target where a company reduces its
emissions by at least 90%, then neutralizes remaining emissions using removal
offsets. Prologis’ net-zero goal is aligned with the Science-Based Targets
initiative’s (SBTi’s) Net-Zero standard, a key differentiator.

Development portfolio: Includes industrial and non-industrial properties,
yards and parking lots that are under development and properties that aredeveloped but have not met stabilization.

Operating portfolio: industrial properties in our Owned and Managed
portfolio that have reached stabilization. Assets held for sale are excluded
from the portfolio.

DJSI: The Dow Jones Sustainability Indices are global sustainability indicesoffered by RobecoSAM and S&P Dow Jones Indices, tracking the stock
performance of companies in terms of economic, environmental and social
criteria.

Owned and managed portfolio: the consolidated properties owned by our
unconsolidated co-investment ventures, which we manage.

Carbon offset: an action intended to compensate for the emission of carbon
dioxide into the atmosphere.

EEO: equal employment opportunity
EHS: environmental, health and safety
EPS: earnings per share

REC: renewable energy credit (add definition)
REIT: real estate investment trust
SASB: Sustainability Accounting Standards Board
SBTi: Science Based Targets initiative

ESG: environmental, social and governance

Stabilized: For a newly constructed building, 90% occupied or completed for
one year, whichever comes first. Upon stabilization, a property is moved into
our operating portfolio.

GHG: greenhouse gas emissions

TCFD: Task Force on Climate-related Financial Disclosures

ERG: employee resource group

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Prologis
Pier 1, Bay 1
San Francisco, CA 94111
United States+1 415 394 9000
www.prologis.com© Prologis, Inc. 2023 All rights reserved.

Sustainable Logistics

Our Inspired People

Resilient Communities

Appendix

Prologis Tilburg Distribution Center 5,
Tilburg, Netherlands.