2014
C O R P O R AT E R ES P O N S IB IL I T Y R EP O R T

AUGUST 2015

An overview of2014 progress andaccomplishments,
plus objectives andplans for 2015

16 Awards

23 Building Certifications

25 Solar Installations

43 Donated Space

Our efforts have beenrecognized worldwide

Our projects are built to recognizedsustainable building certification
rating systems

Our goal is to install 15 MW ofrooftop solar each year

Our in-kind donation programprovides rent-free space tononprofit organizations

2014

Corporate Responsibility Report

Prologis is the global leader in industrial realestate and the world’s foremost provider ofsustainable logistics facilities. Our position
is guided by our longstanding commitment
to minimizing the environmental and social
impacts of our operations and development
activities in ways that deliver long-termvalue to our customers, shareholders,
employees and communities.

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

03 Our Approach
How we think about corporate responsibility

17 Environment

The innovative methods we use to manage
our portfolio and operations

37 Social

How we extend our efforts to colleagues,
communities and suppliers

46 Governance

The practices we employ to support a businessenvironment of enduring integrity

55 GRI G4 Content Index

How we report within this framework inaccordance with the Core option

1

2014

OUR APPROACH

Corporate Responsibility Report

Facts andFigures
Our shared andenduring commitment
to the environment,social responsibility, andcorporate governancehas a direct and positive
impact on the healthof our communities.
We are proud of
our accomplishments
in 2014.

2,853

400

Properties and projects in our portfolio,
totaling 590 million square feet (SF)(55 million square meters [m2])in 21 countries

Million kWh of energy savings fromenergy-efficient lighting and renewableenergy systems

927

Million SF (836,127 m2) of sustainablebuilding certifications acrossnine countries

New sustainablebuilding certifications

ENVIRONMENTSOCIAL

GOVERNANCE

85
Percent customer retention rate acrossthe globe

130
Months of rent-free space provided
to 19 nonprofits through Space for
Good, our in-kind donation program

68
Percent of our portfolio
equipped with energy-​
efficient lighting, up from64 percent in 2013

7,000
Hours Prologis employees volunteered
to 63 different nonprofit organizations
on IMPACT Day, our global dayof service

2

2014

OUR APPROACH

Corporate Responsibility ReportOUR
APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

We strive for excellence, working
diligently to minimize our environmental
impact, support our colleagues acrossthe globe, bring value to our communities
and conduct business to the highest
ethical standards.
We track our progress for the following
dimensions of sustainability:
Environment: The global impact of ourportfolio and operations
Social: Our relationships with employees,
customers, investors and communities
Governance: Our commitment toorganizational policies, proceduresand practices

Krekelenberg, Belgium

3CEO Letter

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Hamid R. Moghadam,
Chairman and CEO

Dear fellow stakeholders,
I am pleased to present our 2014 corporate
responsibility report. This report highlights theefforts of our dedicated colleagues around the world
who work together to make Prologis an exemplarycompany year after year.
Our shared and enduring commitment to theenvironment, social responsibility and corporate
governance has a direct and positive impact on
the health of our communities, the strength of
our reputation and our financial performance.
Prologis continues to be the world leader insustainable distribution and logistics facilities. We
implement sustainable design and construction
standards in our new developments globally anddesign our facilities with the intent to seek
certification with widely recognized and respectedsustainable building standards, including LEED,BREEAM, CASBEE, DGNB and HQE. In 2014,
we certified 27 projects (more than 9 million SF/​
836,127 m2) in nine countries, bringing our totalsustainable building certifications to 53 million SF(4.9 million m2) across 128 projects in 14 countries.
Additionally, we are proud to be the first industrial
developer approved by the U.S. Green Building
Council (USGBC) for the LEED Volume program.
Our renewable energy program continues to ensure
the long-term sustainability of our properties while
creating lasting value. As of year-end 2014, ourrooftop solar installations represent 113 megawatts ofgenerating capacity, enough to power 15,000 averagehomes each year in the six countries where our
projects are located.
Our social responsibility enhances the communities
where we work and live. In 2014, Prologis and thePrologis Foundation donated $1.6 million to nonprofit
organizations working in the areas of education, humanwelfare and disaster relief. Our colleagues received
support for the organizations they personally careabout through our Matching Gifts and Dollars for Doers
programs. Further, our Space for Good initiative provided
19 nonprofits with a total of 130 rent-free months to use
our distribution centers for their short-term needs.
In June 2014, we launched Breakthrough, a companywide network that promotes the retention andadvancement of women at Prologis. Breakthrough isgathering momentum around the globe, with more than
50 active volunteers supporting 13 regional chapters in
12 countries. The network has sponsored presentations
and panel discussions with senior leadership andindustry thought leaders. Areas of focus include
leadership skills, coaching, personal career planningand development, work/life balance, networking andnegotiating.
In May, we held our second IMPACT Day, our global
day of service. In a single 24-hour period, colleagues

4

CEO Letter

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Woodbridge, New Jersey

around the world donated more than 7,000 volunteer
hours to 63 organizations in their local communities.
These volunteer hours supported the company’s
focus areas of education, human welfare and theenvironment, reflecting our core values of Integrity,
Mentorship, Passion, Accountability, Courage andTeamwork (IMPACT).

We are proud of our accomplishments in 2014, andyet each day brings the challenge to do better. In
2015 and beyond, we will continue to find ways toextend our reach, grow our business and makea greater difference in the communities where we
operate and live.

We invite you to review our 2014 annual
report for an in-depth look at our strong
business and financial performancethroughout the year.

Sincerely,
We have worked hard to become the leading global
owner, operator and developer of logistics real estate
and are honored to be recognized for our commitment
to sustainability. We were listed among the Global
100 Most Sustainable Corporations in the World forthe seventh consecutive year and recognized by Green
Street Advisors as the REIT industry’s corporate
governance leader, topping the list for the 12th year
in a row.

Hamid R. Moghadam
Chairman and Chief Executive Officer
August 2015

5

Company Overview

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Nové Mesto, Slovakia

As of December 31, 2014,
our portfolio comprised 2,853
properties and development
projects totaling 590 million SF(55 million m2) in 21 countries,
up from 569 million SF(53 million m2) in 2013.
Global occupancy at the end of 2014 was
96 percent. Our properties were leased to morethan 4,700 customers, including third-party logistics
providers, e-commerce businesses, transportationcompanies, retailers and manufacturers. Assets undermanagement totaled $52.8 billion at the end of 2014,
with revenue for the year of $1.76 billion.

GRI G4-4, G4-6, G4-8

Prologis is a self-administered and self-managed
real estate investment trust (REIT). Rent is collectedfrom our customers under operating leases, including
reimbursements for the majority of our operating
costs. We invest with partners and investors
through private and public ventures, which may beconsolidated or unconsolidated. We tailor industrial
portfolios to investors’ specific needs, with a focus on
long-term ventures and open-ended funds. We also
access alternative sources of equity through publicly
traded vehicles that we sponsor. Capital is also
deployed for the development, redevelopment andacquisition of industrial properties. Information on thecompany’s business, including financial performance,
dividends and market capitalization, can be found on
our Investor Relations page at ir.prologis.com.

Our corporate headquarters are in San Francisco,California. Altogether, we occupy 73 offices
throughout the Americas, Asia and Europe.
As of December 31, 2014, we employed
1,505 employees worldwide.

6

Portfolio Map

Our 2,853 properties and development projects
across 21 countries were leased to more than
4,700 customers, including third-party logistics
providers, e-commerce businesses, transportationcompanies, retailers and manufacturers.

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

4,700
Global customers

7About This Report

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Left: Dartford, United Kingdom
Right: Amsterdam, The Netherlands

Our corporate responsibility
report provides an overview ofour company’s environmental,social and governance (ESG)
initiatives and summarizes
the progress we’ve madetoward meeting our goals andtargets across our portfolio
and operations.

GRI G4-32

GRI G4-33

This report marks our eighth consecutive yearof reporting to the Global Reporting Initiative’s(GRI) Sustainability Reporting Guidelines andthe Construction and Real Estate (CRE) Sector
Disclosures. It is our second year reporting inaccordance with the GRI G4 Guidelines—Core
option. A GRI G4 Content Index is included on page55, and these disclosures are noted throughout.

This report has been externally assured by DNV GL
using the AA1000 Assurance Standard (2008). DNV
GL interviewed members of the Prologis executive
committee and senior management to ensure that
this report complies with the principles of inclusivity,
materiality and responsiveness. DNV GL also assessed
the reliability of specified sustainability performance
information. DNV GL’s sister company, DNV (U.S.A.)
Inc., verified our 2014 greenhouse gas inventory
using version 2.0 of the Climate Registry’s General
Verification Protocol. Our complete AssuranceStatement is found on page 51.

As in the past, this report is global in scope andaddresses our activities in the Americas, Europe andAsia in 2014. We include data from earlier years
and progress before publication in 2015 when
information is available and relevant.

8Material Aspects and Boundaries

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Błonie, Poland

Prologis has applied GRI’s
Reporting Principles for Defining
Report Content.
GRI G4-18

These principles include GRI’s guidance on defining
material aspects and boundaries to identify the most
relevant environmental, social and governance impacts
as they pertain to our business and stakeholders.
The basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations and otherentities that can affect period-over-period comparability
is detailed in our 2014 Annual Report and in our
Form 10-K, which is filed with the U.S. Securities
and Exchange Commission and is also available
in the SEC Filings section of Prologis’ website at
http://ir.prologis.com/financial-results/sec-filings.

In late 2013, working with internal stakeholders,
we conducted a materiality assessment to ensure
the environmental, social and governance issues
we believe are most material to our business andstakeholders are adequately addressed in oursustainability programs and reporting. We used theresults of that assessment to inform the direction ofthis report. In 2015, we plan to expand on our internalmateriality assessment by engaging with a broader
range of stakeholders to ensure that the issues they
deem most material to our business are addressed.
In our 2015 report, we expect to provide a materiality
matrix, detail our methodology for determining ourmost material issues and document our modes ofengagement with stakeholders around environmental,social and governance issues.
GRI G4-19

The issues most material to Prologis, according to our2013 assessment, include the following:• Employee satisfaction• Anticorruption• Portfolio energy use• Sustainable building certifications,ratings and labeling
GRI G4-20, G4-21

Each of these issues is material and addressed inthis report. We also provide data — ​where it isavailable — ​for our corporate operations and for thefacilities we own and lease to our customers.
Limitations include occupant operations on Prologis
properties. Although we strive to work with ourcustomers to enhance their sustainability measures,
their business activities fall outside the scope of
Prologis’ operational control and thus fall beyond
the boundary of our performance-data reporting. In
addition, we do not report on the business activities
of entities over which we do not exercise direct
operational control, including our co-investment andjoint venture partners, service providers, customers,
contractors, suppliers and vendors.

• Customer satisfaction

9Supply Chain

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Atlanta, Georgia

Prologis’ supply chain comprises
professionals, contractors andsuppliers who support both ourdevelopment and operations.
GRI G4-12

We routinely use locally sourced materials and locally
based contractors. The two largest componentsof our buildings, concrete and steel, are typicallyprocured from local suppliers. Other materials
used in construction include roofing materials andlighting equipment.

We work with local or regional contractors to build
our facilities, except when necessary resources
are not readily available. Our goal, and one that will
receive greater focus in 2015, is to support local
businesses wherever possible. This in turn will enable
us to invest in the communities where we operate.
Using local suppliers can reduce shipping andtransportation requirements, thereby reducing
environmental impacts.
We require accident and incident data from our generalcontractors in the U.S. We evaluate this data alongsidesuch factors as cost and prior project experience
before we make contracting decisions.
Suppliers for our property management businessinclude firms that provide landscaping, maintenanceand custodial services. In our offices, primary procured
items are office supplies and IT and communications
support systems.

10Central to Our Customers’
Supply Chain

OUR APPROACH

Prologis is the leading global owner, operator anddeveloper of logistics real estate. We serve
manufacturers, retailers, e-commerce businesses,
transportation companies and third-party logistics
providers with facilities that support both regionaland global trade.

INTERMODAL
TRANSPORTATION
Our buildings are located close
to transportation infrastructuresuch as railways, airports,
highways and ports.

ENVIRONMENTSOCIAL

GOVERNANCE

4,700

53

Prologis customers
in 2014

Million SF of sustainablebuilding certifications

OUR PORTFOLIOSAMPLE CUSTOMERS

By integrating sustainability measures into our portfolio, we
help our customers realize environmental and cost savings intheir supply chain.

We work with some of theworld’s largest companies.
AmazonL’OréalEnergy Savings

Water Savings

Cost Savings

BMW

PepsiCo

Rooftop solar andnatural lighting

Low-flow plumbing

Decreased
distances traveled

Crate & Barrel

Under Armour

Reducedoperating costs

DHL

UPS

FedEx

Wal-Mart

Energy-efficientbuilding insulation

Drought-tolerant ​landscaping

11

Stakeholder Engagement

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Denver, Colorado

We recognize that effective
and transparent dialogue andengagement with our
stakeholders, which informs
our business operations
and decision making, is vitalto our success.
GRI G4-24, G4-25, G4-26

We define our stakeholders as any group that may
directly affect or be affected by Prologis’ business
operations. We include customers, investors,
employees, local communities, suppliers,
governments, nongovernmental organizations(NGOs), trade associations, brokers and media.

We use a variety of engagement approaches, varying
our mode of engagement to meet the needs of eachstakeholder group and issue.
Our most common practices include:• Customer satisfaction surveys• Group and one-on-one meetings• Industry forums and events• Media interviews• Quarterly earnings calls

GRI G4-27

Engagement withMajor Stakeholder Groups
Employees
Prologis conducts regular, comprehensive employee
engagement surveys. For our most recent survey,
completed in late 2013, we achieved a 97 percent
participation rate. Three key themes emerged:• Employee town hall meetings• Process efficiency• Public planning meetings• Collaboration and communication• Meetings with vendors and suppliers• Career advancement and development

We provide more details on our stakeholders andengagement mechanisms on page 15.

Please see the Employees section of this report on
page 38 for a discussion of our progress on these
themes. We will field our next employee engagement
survey in 2015.

12

Stakeholder Engagement

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Shanghai, China

Customers
Prologis engages with customers in a variety of ways.
Our customer satisfaction survey, which we undertakeat 18-month to 2-year intervals, is one importantmechanism. Through it, we seek input on topics
related to leasing, facility improvements, customer
service and green initiatives. In our most recent
survey, completed in the summer of 2013, more than
50 percent of responding customers said theywould be interested in equal cost solar energy and30 percent said they placed a priority on the use ofgreen practices, such as energy-efficient lighting,water-saving technologies and sustainable building
certifications. We recently completed the 2015
customer survey and are in the process of analyzing
our results.
We leverage strong relationships with key customers
to produce white papers on relevant and timely topics.
For example, in July 2014 we issued a white paper

titled Inside the Global Supply Chain: E-commerce anda New Demand Model for Logistics Real Estate,
which examined the global shift toward e-commerce
and its impact on operations for retailers andlogistics providers.
Our Customer Advisory Boards (CABs) from North
America and Europe meet annually. These two-day
in-person meetings bring customer representatives
from diverse industries together with Prologis seniorleadership. CAB meetings cover trends in the industry
and economy; study challenges and opportunities
specific to our customers; prompt conversations about
how Prologis can better serve current and emerging
customer needs; and are an excellent forum for sharing
sustainability strategies and best practices. The
topics that emerge from these meetings have a direct
influence on Prologis programs and processes. For
example, at our 2014 CAB meetings, we discussed
our energy-efficient lighting initiatives and asked ourcustomers to share their top sustainability priorities.

Investors
We offer timely and relevant information on current
and anticipated trends in global industrial real estate
to our public and private investors through multiple
channels, including quarterly conference calls and oneon-one and group meetings at investor conferences.
Additionally, the U.S. Industrial Business Indicator™
(IBI), our proprietary survey of industrial activity andlogistics facility utilization, delivers valuable, actionableinsights into U.S. industrial real estate trends.
In 2015, we plan to expand our interactions withstakeholders by:• Creating a stakeholder map and formalizing ourglobal engagement strategy• Forming a sustainability advisory board ofcustomers and investors• Establishing a supplier engagement strategy thatbuilds on our Supplier Code of Conduct

13

Case Study

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Prologis RFI DIRFT

Partnering with the Local
Community to Preserve
the Environment
In July 2014, after more than a decadeof planning and consultation that led to
U.K. government approval, we began
development of the third phase of the
Daventry International Rail Freight Terminal(DIRFT III) in partnership with Rugby Radio
Station Limited Partnership. This stateof-the-art expansion of the U.K.’s leadingrail freight interchange brings businesses
closer to key U.K. and European markets,
strategic interchanges at deep-sea ports
and the Channel Tunnel. DIRFT III will morethan double the size of the existing Class-A
logistics park to approximately 14 million SF(1.3 million m2).

9,000

193

Jobs created during
development of the newrail terminal

Acres dedicated toan ecology zone

The U.K.’s Nationally Significant
Infrastructure Project legislation mandated
that Prologis work closely with thecommunity — ​a process we embraced
wholeheartedly. Between 2010 and2013, we reached out to hundreds ofpublic officials and community members.
We also set up a dedicated telephoneline and a website to receive comments
and feedback.
Our presentations included provisions topreserve and enhance the natural habitat.
We recommended the preservation of a
wildlife area protected by a landscaped
screening ridge. Together, the preserveand the screening ridge significantly
reduce impacts on the nearest village. In
response to the environmental importanceof the area, we are working with the local
Wildlife Trust and will engage with a teamof ecologists for the life of the project.
To address concerns about the safety ofnearby road junctions, we surveyed local
residents and presented our findings to
Highways England, along with a proposal
to improve the junctions. Highways England
accepted our proposal, and we aim tounilaterally complete the recommended
enhancements. We are implementing trafficcalming strategies to address the concernsof residents in two other communities.
Descriptions of our activities from October
2012 and February 2013 are publishedon the U.K. government’s planning portal.

Northamptonshire, United Kingdom

14

Stakeholder Engagement
Mechanisms

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCEGRI G4-27

Redlands, California

Communities•••

Community meetings before, during and after development of properties
Employee volunteerism
Donations to nonprofit and charitable organizations

Customers••••

Annual Customer Advisory Board meetings in the U.S. and Europe
Dedicated relationship contacts
Biannual customer satisfaction surveys
Meetings with top customers

Employees••••

Global employee engagement survey
Global employee intranet, The Hub
Quarterly town hall meetings
IMPACT Day

Governmental Agencies••

Collaboration on projects
Regular meetings during permitting processes

Industry Associations••

Participation on committees and leadership teams
Attendance at conferences and meetings

Media

•
•

Press events around significant announcements
Interviews with Prologis spokespersons and subject matter experts

Nongovernmental
Organizations (NGOs)••

Information requests and surveys, such as those from CDP
Attendance at conferences and meetings

Shareholders and Investors

•
•
•
•
•

Quarterly earnings calls
Investor forums and meetings
Proprietary research reports
Global Real Estate Sustainability Benchmark (GRESB) survey
Surveys from SRI funds and indexes, such as DJSI

Brokers•••

Broker Update newsletters
Annual broker summit appreciation event
Broker satisfaction surveys

Suppliers••

Contract development and interaction during term of contract
One-on-one meetings and calls

15

Awards and Recognition

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

Proud to be recognized globally by:
Capital Eye

Industrial Agents Society (U.K.)

Best Issuer of 2013 for Nippon

Developer of the Year

Prologis REIT

CEE Real Estate Quality Awards
Gala 2014
Developer of the Year

Corporate Knights
Global 100 Most Sustainable
Corporations in the World (#54)

CoStar Industrial Deal of the Yearfor the West Midlands 2014
Prologis Euro Car Parts deal at Tamworth

Estates Gazette
Property Company of the Year 2014 —Industrial and Distribution (U.K.)

FORTUNE Magazine
World’s Most Admired Companies 2014
(top real estate company for social
responsibility)

Industrial Agents Society Awards
2014 (IAS 2014)
Developer of the YearNAREIT
Industrial Leader in the Light award

Newsweek
America’s Greenest Companies
2014 (#15)

San Francisco Business Times andSilicon Valley Business Journal
Healthiest Employers

Shanghai Municipal Government
Magnolia Gold award to Prologis China
president Ben Cornish for contributions
to the city

Thomson Reuters DealWatch
Awards 2013
J-REIT Issuer of the Year for Prologis
Nippon REIT

World Finance Real EstateAwards 2014
Best Socially Responsible Developer —Europe 2014

16

2014

OUR APPROACH

Corporate Responsibility Report

ENVIRONMENTSOCIAL

GOVERNANCEENVIRONMENT
We are dedicated to finding and putting
into action the most sustainable ways
to manage our portfolio. We work tominimize our environmental footprint
and operating costs; contribute to local
infrastructure enhancements; ensure
quality across our supply chain; build
partnerships with local and global
stakeholders; proactively address climatechange; and use our scale and expertise
to develop sustainable buildings inmarkets where standards are emerging.
Saitama, Japan

17

OUR APPROACH

Portfolio

ENVIRONMENTSOCIAL

GOVERNANCE

Krekelenberg, Belgium

Our location strategy helps
our customers reduce theircarbon footprints.
We provide distribution facilities to customers whosebusinesses are tied to global trade and who dependon the efficient movement of goods through the global
supply chain.
We are located within easy reach of the world’s mostvibrant centers of commerce, where commercial
infrastructure — ​major seaports, airports and groundtransportation — ​is robust. Our customers can operate
more efficiently when they are closer to their customers.
In some cases, the distance goods travel can be
decreased by up to 25 percent, which results insignificant environmental benefits.

Goals and Objectives
Prologis’ environmental goals are designed toboost and benchmark the company’s performance.
Our environmental goals and targets include:• Design 100 percent of new development projects forcertification where recognized sustainable building
certification systems are available

In 2015, we will assess the feasibility of establishingadditional metrics such as:• Benchmarks for current greenhouse gas (GHG)
emission reduction goals versus science-based targets• Goals for smart meters, energy storage and lowcarbon technologies• Goals for water and waste reduction• Upgrade to 100 percent energy-efficient lighting
across our portfolio• Reduce energy consumption in our portfolio
20 percent by 2020 (compared with a 2011 baseline)• Install 15 megawatts of rooftop solar each year, withthe goal of 200 megawatts by 2020
• Complete the ISO 14001 certification process for
the United States and Japan

18

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

L’OréalHelping Our Customers
Meet Their GHG
Reduction Goals
Many of our customers strive to besustainability leaders in their sectors, sothey choose supply chain partners withthe expertise and ability to help them
reduce their environmental impacts.

60

274,480

Percent GHG reduction
goal for L’Oréal’s plants
and distribution centersby 2020SF expected to be
BREEAM “Very Good”
accredited in mid-2015

L’Oréal aims to reduce GHG emissionsat its plants and distribution centers
60 percent by 2020 (compared witha 2005 baseline). L’Oréal’s innovative
274,480 SF (25,500 m2) Vémars facility,
delivered by Prologis in May 2014,
incorporates a variety of environmental
features that deliver measurable energy
and carbon emissions savings. The
building is expected to receive BREEAM“Very Good” accreditation in mid-2015.
Lighting often represents the mostsignificant energy use in distribution

buildings, sometimes accounting for
more than 80 percent of total energy
consumption. Prologis installed highefficiency LED lighting in the Vémars
facility. LED lighting is rated to last up to
five times longer than traditional fixtures
while consuming 50 percent less energy
and reducing yearly electricity costs
by 50 percent when compared with lowenergy T5 fluorescent lighting.
During building design, we implemented
a computerized process, new to thelogistics property market, called Dynamic
Energy Simulation. This system reduces
energy consumption and associated costsby more than 25 percent compared withstandard buildings. The Vémars facility
also allows L’Oréal to monitor and optimize
energy and water consumption fromoperations. In addition, Prologis createdan Internet-based car-sharing programfor L’Oréal employees who work at thepark. We plan to extend this car-sharing
program to other Prologis parks in France.

Paris, France

19

OUR APPROACH

Sustainable Design

Prologis is staffed by thebest talent in the business,with expertise in sustainablebuilding design, efficient
lighting technologies andrenewable energy.

Key features include:

This deep knowledge and experience allows us todevelop best-in-class facilities that lead in performance,life span and reduced environmental impact.

Energy-Efficient Lighting

Low-Impact Features
Prologis integrates environmental features into our
new and existing buildings. We factor in feasibility,
the capacity to reduce energy use or lower emissions
and the opportunity to deliver incremental value toour customers.

• Skylights and clerestory windows, which bring in
natural light and decrease electricity use, reducing thebuilding’s operational carbon footprint• Dedicated parking for bicycles and hybrid andcarpool vehicles• Low-water (drought-resistant) landscaping, motionactivated faucets, low-flow toilets, waterless urinals
and rainwater capture for irrigation

Lighting is often the largest electrical load in ourfacilities, responsible for up to two-thirds of theelectricity consumption in a typical distribution center.
High-efficiency lighting is a proven way to conserve
energy and reduce the environmental impact of ourbuildings. In a retrofit, for example, traditional lighting
is replaced with new, highly efficient lighting systems
such as T5 fluorescents and LEDs, which are often
coupled with controls such as photocells and motion
sensors to link usage to actual demand.

ENVIRONMENTSOCIAL

GOVERNANCE

68

400

Percent of ourportfolio has energyefficient lighting

Million kWh ofenergy savings fromenergy-efficient
lighting and renewableenergy systems

GRI G4-EN7

By year-end 2014, approximately 68 percent of ourportfolio used energy-efficient lighting, up from64 percent in 2013. Cumulative efforts in efficient
lighting and renewable energy installations eliminatedthe need for 400 million kWh of energy production.
This is the equivalent of 47 times the amount ofelectricity needed to power our 73 corporate andregional offices in 20 countries.
As our business and portfolio evolve and change,
the rate at which we deploy lighting upgrades willfluctuate from year to year as we continue to work
toward our goal of upgrading 100 percent of ourfacilities to efficient lighting. Looking ahead, we
anticipate higher rebates from utilities to support a
growing volume of cost-effective upgrades. We lookforward to expanding our use of these emerging andevolving technologies.

20

OUR APPROACH

Sustainable Design

ENVIRONMENTSOCIAL

GOVERNANCE

Fontana, California

Cool Roofs

Materials, Waste and Recycling

White and reflective roofing, or cool roofing, helps toreduce roof surface temperatures by as much as 50°F
compared with traditional black rubber membranes.
Cooler roof temperatures can lower a building’s
indoor air temperature and reduce energy use in airconditioned spaces by as much as 5 percent. Coolroofs also help mitigate the urban heat-island effect,
wherein air temperatures rise as the sun’s heatis absorbed by roadways, structures and rooftops.

Prologis exceeds all minimum requirements
for materials, waste and recycling outlined in thesustainable building certifications we pursue.
Minimizing the materials we use is an important partof our culture. During construction, we strive to:As of year-end 2014, we have added 8.4 million SF(780,386 m2) of cool roofing to our portfolio.
This means that approximately 28 percent of ourglobal facilities have cool roofs — ​an increaseof 5 percent over 2013.

2011

151.2
2012

154.9
2013

• Provide dedicated areas for the collection and storageof recyclables• Divert construction waste generated on-site awayfrom landfills

158.6
2014

167.0

• Use recycled materials and materials with highrecycled content• Use locally and regionally sourced materials• Ensure, when appropriate, that wood-based building
materials are certified in accordance with theprinciples and criteria of the Forest StewardshipCouncil (FSC)

COOL ROOFS
Cumulative SF in
millions. Data is as of
year-end and excludes
sold buildings.

21

OUR APPROACH

Resiliency andEmergency Response

ENVIRONMENTSOCIAL

GOVERNANCE

Energy-efficient
lighting installation

Prologis works to restore
normal operations as
quickly as possible if an
unforeseen event
threatens to disrupt a
customer’s business.
Every building in our global portfolio has a detailed
emergency response and communications plan,
as well as construction crews on standby and a
supply of building repair materials at hand. In manymarkets, our preferred contractors are consistently
ready to respond to our emergency maintenanceneeds. Our teams assess immediate requirements
to ensure that those most affected are helped first.
We often have the capacity and flexibility to relocate

our customers to temporary spaces at other buildings
as needed. Even in our repair and recovery efforts,
we use sustainable building practices to minimize theenvironmental impacts and ensure the resilience of all
emergency fixes.
Prologis is a leader in the use of design solutions
and technological advancements that increase theresiliency of our facilities in areas of high-seismic
activity and weather-related hazards. This approach
minimizes material, energy and water consumption — ​critical in drought-prone locations such as Brazil and
California. Resilient facilities can reduce waste
associated with damage or loss following a natural
disaster, as well as the environmental costs andimpacts associated with repairing or rebuilding adamaged facility.

22

OUR APPROACH

Sustainable Building
Certifications

ENVIRONMENTSOCIAL

GOVERNANCE

Sendai, JapanWe are committed to bestpractices in sustainable designand construction. We focus
on minimizing our environmental
impacts and maximizing theenergy efficiency of our buildings.
We continue to expand our portfolio of sustainablebuilding certifications to:• Meet the needs of our customers• Provide best-in-class facilities that enhance thesustainability of our customers’ operations• Derive competitive advantage by providing energyefficient facilities at competitive rates

HQE

GRI G4-CRE8

We have more than 53 million SF (4.9 million m2)
of sustainable building certifications. Many of ourdevelopments are certified in accordance with thefollowing rating systems:• LEED ®: Leadership in Energy and Environmental
Design (United States, Canada, Brazil, Mexico,
Italy, France)

DGNB

0.66 0.99
BREEAM

10.82
CASBEE

20.50
TOTAL

• BREEAM: Building Research Establishment
Environmental Assessment Method(U.K., the Netherlands, Germany, Poland, Hungary,
Czech Republic, Slovakia)

53.04
2014

9.16

• DGNB: Deutsche Gesellschaft für Nachhaltiges
Bauen (Germany)• HQE: Haute Qualité Environmentale (France)• CASBEE: Comprehensive Assessment System
for Built Environment Efficiency (Japan)

LEED

BY RATING SYSTEM

20.07

SF in millions

23

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

LEED Volume

Collaborating with
the U.S. Green
Building Council to
Lead the Industry
We certified our first building to LEED
(Leadership in Energy and Environmental
Design) standards in 2006. By year-end
2014, our LEED certifications had grown
to 61 projects. LEED standards inform thedesign of all of our new developments in
the Americas.

individual certification. This streamlined
process gives us a competitive advantage
as we deliver significant value to ourcustomers and investors faster than othercompanies can.
Prologis was the first and only industrial
real estate company to use LEED Volume
as of the end of 2014. By the first quarterof 2015, we had completed five projects
with another 28 projects registered in
the U.S., Canada and Mexico. Together
these facilities comprise 65 percent of our
13.2 million SF under construction in theseregions. In 2015, we plan to expand LEED
Volume to Brazil.

In 2014, we partnered with the U.S.
Green Building Council (USGBC) and M.E.
Group, a U.S.-based consulting firm that
“We are pleased that Prologis
specializes in high-performance buildings,
has become active in LEED
to design a streamlined process to reduce
Volume certification. This type ofthe time and cost associated with LEED
collaboration helps to promote thecertification of Prologis facilities. Using
economic, social and environmental
LEED Volume certification, the USGBC
benefits of sustainable building
pre-approves a Prologis building design
design. We applaud their efforts
and construction process that we replicate
as the first industrial real estateacross new developments in the U.S.,
company to engage in LEED Volume
Canada, Mexico and Brazil. When we build certification and look forward to ain compliance with pre-approved design
successful partnership.”and building-material specifications,—Doug Gatlin, Senior Vice President,
our buildings do not have to undergo
Global Service Delivery, USGBC

28
LEED Volume registeredprojects in developmentin the U.S., Canada
and Mexico

Ontario, Canada

24

OUR APPROACH

Renewable Energy

ENVIRONMENTSOCIAL

GOVERNANCE

Tokyo, Japan

Prologis is one of the world’s
largest owners of rooftops, withmore than 590 million SF(55 million m2) of logistics anddistribution space worldwide.

As of year-end 2014, Prologis had implemented
solar projects on the roofs of more than 35 million
SF (3.2 million m2) of buildings. Those systems havea total generation capacity of 113 megawatts withan expected electricity production of 139 million
kilowatt hours — ​that’s enough energy to power
15,000 average homes in the six countries where
our projects are located.

In 2007, we formed the Prologis Energy Group to
maximize the value our portfolio generates fromrenewable energy and energy storage solutions.

Our solar installations increase revenue from ourproperties, reduce demand from traditional energy
sources and help meet state renewable portfolio
goals and standards.

We use our rooftops to support solar energy systems
and form partnerships with utilities and investors toprovide renewable energy to their customers. In 2014,
Prologis installed solar energy systems on 15 rooftops
comprising more than 6.8 million SF (631,970 m2) ofbuilding space in the U.S. and Japan.

2014

12.5 MWTOTAL

113 MW

SOLAR DEVELOPMENT
Cumulative MW includes
sold properties

25

OUR APPROACH

Renewable Energy

ENVIRONMENTSOCIAL

GOVERNANCE

Inland Empire, California

We anticipate that our rooftop solar installations
will continue to expand as we partner with power
providers and investors in the U.S. to maximize
our use of federal tax incentives and other rebates
designed to promote the growth of alternativeand clean energy power sources.
Prologis is the number one REIT deploying rooftop
solar energy in the U.S., outpacing other U.S. REITs
nearly two-to-one in solar installations and five-to-one
in cumulative kilowatt hours. Prologis is second only
to Wal-Mart Stores Inc. in U.S. rooftop solar capacity.*“Our customers are focused on renewableenergy and our installation at Prologis reflects
Dominion’s commitment to understanding
how solar power can fit into our generation
mix. We’re excited to partner with a company
like Prologis, which clearly understands theimportance of supporting renewable energy
growth in the Commonwealth of Virginia.”—Brett Crable, Director, New Technology &Energy Conservation, Dominion Virginia Power

U.S.

84.9
JAPAN

18.8
SPAIN

4.9
BELGIUM

2.9
FRANCE

Strategic partnerships drive solar installations acrossthe globe. For example, Dominion Virginia Powerwill install more than 3,000 solar panels capable ofgenerating 800 kW of electricity — ​enough topower nearly 200 average U.S. homes — ​at Prologis’
Concorde Distribution Center in Sterling, Virginia.

0.9
GERMANY

0.6*Solar Means Business 2014: Top U.S. Commercial Solar Users,
Solar Energy Industry Association, 2014.

SOLAR BY COUNTRY
Cumulative MW includes
sold properties

26

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

Los Angeles Department of Water and Power

Harnessing the Sun
in Los Angeles
Early in 2015, we announced the completionof four new solar projects in Los Angeles
as part of our multiyear solar energy
development strategy. Approximately
1.1 million SF (102,000 m2) of rooftop
solar has the capacity to feed a combined
4.2 megawatts (MW) of power directly
into the Los Angeles Department of Water
and Power (LADWP) electrical grid as partof the utility’s feed-in tariff (FiT) program.
Energy produced by this installation
is expected to power approximately
1,100 homes each year in the Los Angeles
area. Prologis developed and built the solar
installation, which is owned and operated

4.2
MW of energy produced
from approximately
1.1 million SF of rooftop
space in Los Angeles

by D.E. Shaw Renewable Investments
and Bright Plain Renewable Energy.
Prologis is one of LADWP’s largest FiT
participants to date.
Since 2007, Prologis has installed solar
panels with the capacity to generate
113 MW of renewable energy on morethan 35 million SF (3.2 million m2) ofbuildings in six countries. Our projects
generate revenue by developing solar
arrays and leasing rooftops under longterm contracts with major utilities andrenewable energy investors.
The energy produced by the LADWP
installation is expected to power
approximately 1,100 average U.S. homes
each year in the Los Angeles area.

Torrance, California

27

OUR APPROACH

Monitoring Our Portfolio

ENVIRONMENTSOCIAL

GOVERNANCE

Tokyo, Japan

G4-EN7GRI G4-CRE1, G4-CRE3, G4-EN5, G4-EN7, G4-EN18

Energy consumption and GHG emissions data is criticalto making informed investment decisions across ourportfolio. Because the majority of our U.S. leases
are triple net, our customers are responsible for theirown energy use, and we do not have the data to fully
understand their energy consumption. In Europe andAsia, we have better access to customers’ energy
usage data. We continue to explore opportunities
to improve access to energy usage data across ourportfolio to benchmark performance and inform ourinvestment decisions.

Although our 341 reporting properties with year-overyear information represent a limited sample, they doprovide us with a baseline for measuring energy use
and carbon emissions. For these properties, 2013
building energy intensity was 83 kWh/m2 /year and
GHG emissions intensity was 32 kg CO2e/m2 /year.
This represents a 3 percent decline from 2012, theequivalent of taking 1,500 cars off the road for a year.
We plan to report 2014 energy and emissions data in
our 2015 report. Looking ahead, we expect to reporton a greater number of buildings in our portfolio, as
well as capture water use and waste generation data.
In future years, we intend to use data normalized forweather and occupancy to improve our ability to trackenergy use and associated emissions. Ultimately,
we will use this data to identify and prioritize facilities
for sustainability upgrades.

Where we have access to whole-building energy data,
we are entering and tracking it through the Urban Land
Institute (ULI) Greenprint Center for Building
Performance’s environmental management platform.
Using the Greenprint platform, we are able to monitor
the energy and carbon emission performance of ourbuildings. Prologis reported 2013 energy data for
552 properties to Greenprint, including 341 properties
for which we had consistent year-over-year information.

83
kWh/m2 /yr of building energy
intensity for the 341 properties inour portfolio for which we haveyear-over-year energy data

32kg CO2e/m2 /yr of GHG emissions
for the 341 properties in our
portfolio for which we have yearover-year GHG data

28

OUR APPROACH

Impact Assessments
and Remediation

ENVIRONMENTSOCIAL

GOVERNANCE

Left: Jersey City, New Jersey
Right: Osaka, Japan

Infill and Brownfield Investments
Prologis’ investment strategy targets well-locatedbuildings and development opportunities in urban infill
locations close to transportation infrastructure suchas ports, airports and highways. Buildings in theseareas bring our customers closer to their customers,in the process reducing transportation costs andenvironmental impacts. Our internal research indicatesthat distribution from infill industrial centers can bringa 21 percent reduction in costs and up to a 25 percent
reduction in carbon emissions and air contaminants
compared with buildings on greenfield sites beyond
urban boundaries.

GRI G4-SO1, G4-CRE5

Impact Assessment and Remediation
Although urban infill properties are highly desirable,
their development often involves remediationor management of sites that have a legacy ofenvironmental contamination. Prologis has a trackrecord of methodically and thoughtfully returning
underused and environmentally impaired properties
to valuable and productive use.
Redeveloping an environmentally impaired siteentails two key steps: clearly understanding thenature and scope of the remediation at hand andthoroughly assessing how much it will cost. Prologis
applies ASTM and other applicable environmental
standards specific to each country when evaluatinga brownfield site. Remediation plans are consistent
with regulatory requirements to protect human healthand the environment. We work closely with regulatory
agencies to develop and implement these plans.
In each country, we contract with qualified third-party
consultants, engineers and contractors to carry out
this work.
We conduct an Environmental Impact Assessment(EIA) or related assessment as required to determine
the impact of our plans. For known impacts, we workin partnership with relevant agencies and organizations
to manage and mitigate. For every Prologis projectacross the globe, we operate in material compliancewith all applicable environmental laws and regulations.

29

OUR APPROACH

Operations

ENVIRONMENTSOCIAL

GOVERNANCE

San Francisco, California

Our focus on reducing theenvironmental impact of ouroperations extends to ourown supply chain.
We routinely use locally sourced materials and local
contractors. This approach can reduce transportationand shipping requirements and in turn further reduce
our environmental impacts.
Prologis Green Path is our internal program forengaging with employees around sustainability issues
and encouraging them to support our environmental
efforts on a daily basis. Green Path members
represent every office globally. They interact regularly
with our Sustainability Team to gather information
about energy use in our offices, understand thecurrent trends in the study of climate change anddevelop strategies for GHG management. Prologis
Green Path helps to make environmental stewardshipan everyday event.
We also recognize the need to minimize theenvironmental impact of our operations. In 2011, we
joined The Climate Registry, a voluntary GHG registrythat helps organizations measure, manage and reduceenergy use and GHG emissions.
Our commitment to mitigating our environmental
impact across all areas of our business is reflected in
the following goals and objectives:• Reduce our operational carbon footprint 20 percent by
2020 (compared with a 2011 baseline)• Encourage our colleagues around the world to reduceenergy, water and waste in ways that enhance our
profitability and reduce our environmental footprint

30

OUR APPROACH

Energy and GHG Emissions

ENVIRONMENTSOCIAL

GOVERNANCE

Portland, Oregon

Prologis has been measuring,
managing and reporting
our greenhouse gas (GHG)
emissions since 2006 in
accordance with the GHG
Protocol, the global standard
published by the World
Resources Institute and theWorld Business Council for
Sustainable Development.

A carbon footprint is a way to measure and quantify
the environmental impact of human activity expressedin terms of GHG emissions in metric tons of carbon
dioxide equivalents (MTCO2e).
We report our operational carbon footprint to CDP
and The Climate Registry, and our Scope 1 and2 emissions are verified independently by DNV GL.
See page 51 for our Assurance Statement.
An annual GHG inventory allows us to identify
the largest sources of GHG emissions across ouroperations, establish a basis for defining ourenvironmental strategies, set goals and targets for
future reductions and track progress toward awide range of sustainability goals, including energy
and cost savings.

To measure our progress, we calculate annual GHG
emissions from our corporate operations for our
corporate and regional offices, which total 604,000 SF(56,113 m2), across six categories of emission sources
identified in GHG Protocol’s Scopes 1, 2 and 3:• Scope 1: Direct emissions from sources owned orcontrolled by Prologis, such as natural gas used toheat our offices, fugitive emissions from refrigerants
and the gasoline used in our vehicle fleet• Scope 2: Indirect emissions associated with
consumption of purchased electricity• Scope 3: All other indirect emissions not included in
Scope 2, such as business travel (air travel, rental
cars and public transportation), personal vehicle use
for business travel and employee commutes

31

OUR APPROACH

Energy and GHG Emissions

ENVIRONMENTSOCIAL

GOVERNANCE

San Francisco, California

GHG Emission Summary (MTCO2e)

GRI G4-EN15, G4-EN16, G4-EN17, G4-EN18, G4-EN30, G4-CRE3

2011

2012

2013

2014

2,143

1,907

2,159

2,461

Stationary Combustion

320

374

341

Mobile Combustion

1,550

1,709

2,021

Fugitive Emissions

37

75

99

5,827

5,574

5,097

5,827

5,574

5,097

222

264

222

264

Scope 1

Scope 2

6,299

Purchased Electricity
Optional Scope 2*
Stationary Combustion
Scope 3
Employee Commute
Business Travel
Total
MTCO2e/FTE,
including Optional
Scope 2 emissions

3,854

3,985

8,231

9,834

**

**

4,240

4,307

3,854

3,985

3,991

5,527

12,296

11,71916,186

17,656

9

8

11

12

* TCR recommended adding a category of Optional Scope 2 emissions.
** We started tracking emissions related to employee commute.

The results of our 2014 GHG inventory reveal a
9 percent increase in emissions from 2013 to 2014.
Scope 2 emissions decreased from 2013 to 2014,
while Scopes 1 and 3 emissions saw increases.
Scope 2 emissions reductions related to officeenergy use were driven primarily by our data center
consolidation project. As we discussed in our 2013
report, the energy efficiency and renewable energy
upgrades at our U.S. corporate headquarters at Pier 1
in San Francisco contributed to the decrease in Scope
2 emissions. In addition, we saw the positive effectsof employees taking simple steps to save energy,
such as turning off lights and monitoring building
temperatures. Scope 3 emissions for business travelincreased; this is in part because the company saw
a 3.3 percent increase in the number of full-time
employees (FTE). We also saw a slight increase inemissions related to commuting to and from work,
which could be attributed to the increase in FTE.
When normalizing the average annual GHG emission
intensity by FTE, our emissions increased slightly
from 2013 to 2014.

These increases reflect our efforts to continue to add
emissions sources and data each year as we work
toward a more complete and accurate GHG inventory.
Aside from adding new Scope 1 data in 2014 in thevehicle fleet category, we also reviewed new guidancefrom The Climate Registry’s (TCR) General Reporting
Protocol, and decided to separate out a portion of ourstationary combustion emissions as Optional Scope 2
for 2013 and 2014. These emissions are included in
our total emissions but now are categorized differently.
TCR defines Optional Scope 2 emissions for cases
in which we do not exercise operational control overheating units not metered separately.
To meet our 20 percent reduction target by 2020,
we will continue to identify and implement sustainablebusiness practices and enhance awareness ofsustainability initiatives. In 2015, we will conduct a
more in-depth analysis to identify and prioritize ways
to reduce emissions as we work toward our target.

32

OUR APPROACH

Energy and GHG Emissions

ENVIRONMENTSOCIAL

GOVERNANCE

Sendai, JapanGRI G4-EN27

In 2014, Prologis purchased 3,377 MTCO2e of offsetsfrom Renewable Choice Energy to support the J.B.
Hunt Intermodal Transportation Project and to offset
100 percent of Scope 1 and 20 percent of Scope 2
emissions from Prologis’ 2013 carbon footprint. This
purchase was part of an ongoing program that uses
carbon offsets to support emissions-related projects
around the world and mitigate our GHG footprint.
The goal of the J.B. Hunt project is to use intermodal
ground transport to optimize the best of truck andrail transportation modes. More about the project canbe found at www.coloradocarbonfund.org.
We are currently researching carbon offset projects
that are meaningful to our industry and will make apurchase to offset our 2014 Scope 1 and a portion of
Scope 2 emissions in 2015.

Methodology
The accuracy of our inventory is built into themethodologies provided by the GHG Protocol and
TCR. We have been able to obtain high-quality data
to calculate the majority of our emissions, including
exact electricity and natural gas use, documented
vehicle miles driven and airline miles flown. For
those offices in leased spaces for which we did nothave direct utility bills, we estimated electricity andnatural gas consumption based on square footage andcalculated GHG emissions using appropriate emissions
factors from the EPA eGRID and TCR databases.
To calculate commute-generated emissions, Prologis
conducted a company-wide employee commute
survey. More than 800 Prologis employees participatedin the survey — ​a 55 percent response rate. Thissurvey gave us a significant amount of data with which
to calculate our commute-generated emissions.
Data from nonresponders was extrapolated based ona percentage of each vehicle type taken to work andaverage distances.

Ongoing Improvement of Our GHG Inventory for
Accuracy and CompletenessWe aim to make our GHG inventory more accurate
and complete by adding emissions sources as data
becomes available and by tracking new emissions
sources. To illustrate, for the first time in 2013,
we began tracking emissions related to employee
commuting. In 2014, we estimated stationary
combustion emissions from offices in leased spaces(for which we do not receive direct utility bills).
The more information and data we have about theemissions that result from our operations, thegreater our opportunity to identify ways to reduce
those emissions. Given the amount of new data
added in 2014, and because our inventory is now
more complete, we may consider changing ourbaseline year to 2014 to improve the accuracy of
our year-on-year reporting.

33

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

Prologis Data Centers

Saving Energy witha New Approach
to Information
Technology Services
Over the past several years, our IT
department moved to managed services
and cloud solutions, delivering major
improvements in speed and reliability forthe company’s core technology services.
In the process, we saw substantial
operational and energy savings.

80
Percent reduction in
owned and operated
system hardware

We consolidated formerly distributed
services into three central data centers
in Denver, Amsterdam and Tokyo, andretired data centers in San Francisco
and Shanghai.

A few examples of ourcloud-​first strategy:•

Global email system moved to Microsoft
Office 365•

Yardi (our portfolio database) transitioned
to managed services•

Disaster recovery outsourced•

Cloud-based single sign-on and global
backups implemented

These initiatives resulted in an 80 percent
reduction in owned and operated system
hardware (62 server racks to 12; hardware
recycled), and significant energy andcost savings. Our managed services andcloud solutions strategies have helped todecrease our Scope 2 emissions since
the program began, and have contributed
to our progress toward meeting our GHG
emission reduction target. In our Denver
office, these efforts contributed to a
reduction of 189 MTCO2e of Scope 2
emissions from 2013 to 2014.

34

OUR APPROACH

Engaging Employees
in Sustainability

ENVIRONMENTSOCIAL

GOVERNANCE

Mexico City, Mexico

Our global Green Path program,launched in 2009, helps our
employees understand and put
into action sustainable bestpractices in the areas of energy,
water, procurement and waste.
We are constantly looking for ways to make ouroperational supply chain more sustainable, and wework with suppliers that encourage sustainability
throughout their supply chain.

Office Supplies
Staples is working to source and sell more ecoconscious products as part of its sustainable businesspractices. Because of the availability of these types of
products, we have been able to customize an officesupplies shopping list of environmentally friendly
products; this list is available at all U.S. offices. The
copy paper we buy has 50 percent post-consumer
recycled content, and our janitorial services use theSustainable Earth brand. In addition, all consumable
paper wares are made of recycled materials. Each
year, Staples gives us an environmental report thatdetails the energy and water saved by using ecofriendly products. In 2014, we saved 94,680 gallons
of water and enough energy to heat four average U.S.
homes for a year.

35

OUR APPROACH

Engaging Employees
in Sustainability

ENVIRONMENTSOCIAL

GOVERNANCE

Cerritos, California

Engaging Employees in Sustainability
Since 2009, our Green Path and Corporate
Responsibility Champions programs have allowed
employees to participate directly in our sustainability
efforts. In 2014, our Champions implemented avariety of projects in their local offices to reduceenergy use. Examples include:
Mexico: One of our Mexico City offices switchedexterior lighting to LED lamps, resulting inenergy and cost savings while providing superiornighttime visibility
U.S.: Our Indianapolis team fine-tuned the placementof motion sensors for optimal performance andestablished system controls for heating and lighting

All of our offices are encouraged to purchasesustainable business products and offer recycling
bins throughout. IMPACT Day is yet anotheropportunity to engage employees in sustainability
initiatives in our communities.

COMMERCIAL

1.23
RECYCLED

1.46

Water
We have begun to collect and analyze water data fromour operational headquarters in Denver with the intent
of creating a company-wide baseline in 2015 andsetting goals related to water consumption. We havealready implemented water-efficient landscaping in
Denver. The site is irrigated by 100 percent non-potable,
recycled water provided by the City of Denver. This
strategy reduces our withdrawals from reservoirs andhelps conserve water in a drought-prone environment.

DENVER OFFICEWATER USE
Millions of gallons
used in 2014

36

2014

Corporate Responsibility Report

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE

SOCIALWe work hard to be a good neighbor. Ourcommitment to social responsibility
extends to our colleagues, communities
and suppliers. We demonstrate thiscommitment by:• Creating a dynamic and diverse
business culture that encourages
professional development• Partnering with community
organizations to support educational,
environmental and social causes• Engaging with suppliers around ourSupplier Code of Conduct37

OUR APPROACH

Employees

ENVIRONMENTSOCIAL

GOVERNANCE

Male

FemaleAmericas430469Europe

173

186

Asia

143

100

TOTAL

746

755

Permanent Full Time

741

737

Permanent Part Time

3

16

Temporary (interns)

2

2

746

755

San Francisco, California

Our employees are thefoundation of our success.
We believe that having
employees with a broad rangeof backgrounds, experiences
and perspectives gives us
an advantage in understanding
and meeting the needs ofour stakeholders.

We seek to attract diverse employees, build an
inclusive workplace and create ways for our people
to contribute and develop their full potential.
We communicate our corporate strategy toemployees to foster a culture of accountability andempowerment and to give all employees a “lineof sight” that illustrates how their roles contributeto the company’s global goals. Various tools andprocesses help us implement policies and programs
across the organization that are consistent andefficient and that recognize and respect culturaldifferences. These are the priorities our employees
identified in our 2013 engagement survey andthat we embraced in our 2014 workplace initiatives.

GRI G4-10

Global Workforce in 2014

TOTAL

In this section, we describe our new initiatives
for workplace diversity, leadership and careerdevelopment and the ways in which we contributeto our communities.

38

OUR APPROACH

Diversity and Inclusion

ENVIRONMENTSOCIAL

GOVERNANCE

San Francisco, California

We want every employee tofeel that he or she contributes
directly to the success of ourorganization.
We are an equal opportunity employer, and we
recruit, hire, train, promote and compensate without
regard to race, color, age, religion, gender, disabilityor sexual orientation.

with colleagues in Amsterdam to address the trending
topic of unconscious bias.
“Breakthrough strengthens our global team bysupporting the advancement of womenand partnering with men to benefit all. We’recommitted to closing the gender gap in realestate and beyond.”—Tracy Ward, SVP, Investor Relations &Corporate Communications, and memberof the Breakthrough Advisory Council

In 2014, we introduced two programs to build employee
diversity and inclusion across our operations. The firstis Breakthrough, a network that supports the retention
and advancement of women throughout our company.
You can read more about Breakthrough in the casestudy on page 40. We also piloted a training program

39

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

BreakthroughGrowing and Thriving
in Real Estate
Breakthrough is the company’s global
grassroots network, championed by
Prologis’ senior-most women. Its mission
is to strengthen the Prologis team bysupporting the retention of women andidentifying and removing barriers toadvancement. Our goal is to create agender-diverse work environment where
women feel connected and empowered,and a business culture that offers
opportunities for success and recognizes
the value of a gender-diverse workforce.
The Breakthrough model — ​leading,developing, mentoring, networking andengaging in candid dialogue — ​encourages
the formation of local and regional
networks, and fosters cross-functionaland global relationships between womenat all levels. Mentorship and sponsorshipefforts are designed to provide strong
female performers with visibility to
our senior leaders; this is an important
aspect of Breakthrough.
Introduced in June 2014, Breakthroughhas expanded to our corporate offices
in San Francisco, Denver and Amsterdam,
and across our regional operations.
Our goal is to create a gender-diverse
work environment where womenfeel connected and empowered,and a business culture that offers
opportunities for success.

40

OUR APPROACH

Training, Benefits
and Compensation

ENVIRONMENTSOCIAL

GOVERNANCE

Northampton, United Kingdom

We take a global approach tolearning and development. Our
program is all-inclusive; there’s
something for everyone ateach level in the organization.

more than 300 training modules that cover everythingfrom business fundamentals to language training.
We also introduced a five-module learning program in
real estate basics called “Prologis Foundations.”
GRI G4-LA2

Specifically, we offer programs for career enrichment,
talent management, leadership development, realestate training and technical training.

Prologis employees receive a benefits package that
includes time off and holiday pay, medical, vision anddental insurance, retirement plans, life and disability
insurance, continuing education opportunities andwellness programming.

GRI G4-LA10

GRI G4-LA13

In 2014, we expanded our talent management system,
SuccessFactors, which allows our employees to work
closely with their supervisors to create and manage
career development plans. As a complement to
the program, we improved our learning management
system, which features 18 new custom courses andRelative compensation among women and men at
Prologis is currently consistent. We continue to build
our data analytics capabilities so that in the future wecan provide ratios of relative compensation thattake into account company tenure, career experienceand performance.

33

2 to 25

Hours of e-learningand in-person training
per Prologis employee
per year

Growth in the number ofcustom training courses at
Prologis since 201241

OUR APPROACH

Talent and Wellness

San Francisco, California

We are committed tothe health and well-beingof our employees.

Recruitment Program

TalentOur outreach in 2014 focused on universities withrobust real estate curricula. These included the MBA
programs at Wharton, Harvard Business School,
University of California at Berkeley and University ofColorado at Boulder, and undergraduate programs
at Virginia Tech and Rutgers.

Talent management supports the company’scommitment to employee engagement anddevelopment with an integrated program of targeted
talent acquisition, performance planning, goal setting
and individual development. In 2014, we expanded
our efforts to attract high-level talent to our growing
business. Our aim is to strengthen global capacity,
create best-in-class development programs for young
professionals and be the workplace of choice forMBA students and recent college graduates seeking
careers in real estate.

A new internship and recruitment program, piloted
in the U.S., designed to attract undergraduates andgraduate-level business students.

Prologis Fellowship
A year-long fellowship at the Massachusetts Instituteof Technology (MIT) available to an MBA student inreal estate.
In its inaugural year, the Prologis Fellowship will fund a
student pursuing a Master’s of Science in Real Estate
Development (MSRED), with a specific interest in
Industrial Real Estate and Logistics Industries for the
2015–2016 academic year.

ENVIRONMENTSOCIAL

GOVERNANCE

17,000322

Steps per day walked
by 24 employees,
totaling more thana million steps eachover eight weeks

Million steps walked by
619 Prologis employees
during the company’s
2014 Healthy
Steps challenge

The Fellow will work as a research assistant on
industrial real estate and logistics issues and spend
a month interning at Prologis.
Wellness
We are committed to the total well-being of ouremployees. Prologis’ wellness programs supportand motivate our colleagues across the globe in theirpursuit of a healthy lifestyle.
In 2014, we conducted our second Healthy Steps
challenge. The program was a success — ​more than
600 employees walked together and tracked theirsteps with company-issued pedometers for eight
consecutive weeks. Each participant had the goal ofan average of 10,000 steps per day, in addition to
special weekly challenges. Over the course of thechallenge, 281 people achieved or surpassed our
10,000-step average daily goal, and 76 went on toachieve every weekly challenge goal.

42

OUR APPROACH

Communities

ENVIRONMENTSOCIAL

GOVERNANCE

Prologis IMPACT Day

Being a good neighbor means
using our company-wide
resources to make a difference.
We work closely with local organizations and tap
into the time and talent of our employees to enhancetheir communities. We also partner with community
leaders on development projects around the world — ​from California to China.
Our efforts are most effective when community
members respond to our invitations to share
their concerns and ideas with us — ​specifically,
ways that we can minimize the impact of ourdevelopment projects.

GRI G4-SO1

Other practices include purchasing brownfieldsites to remediate and redevelop; improving local
infrastructure to accommodate increased truck
traffic and expand access to local utilities; working
with local suppliers and contractors; creating jobs
at Prologis and for our customers; and providing
training to community stakeholders on road safety.
In 2015, we plan to conduct a study to captureand quantify these benefits.
Prologis supports hundreds of activities and social
causes. By leveraging our financial and physical assets
to advance community interests — ​including education,
human welfare and the environment — ​we build
enduring relationships and deliver tangible benefits to
our neighbors. In 2014, Prologis and the Prologis
Foundation donated more than $1.6 million in cash
and in-kind to nonprofit organizations.

Space for Good
Our presence in 21 countries gives us the unique
opportunity to open up available distribution space tononprofit and nongovernmental organizations working
in our communities. Nonprofits use Prologis space
on a temporary basis for seasonal needs and disaster
relief efforts. In 2014, we provided 130 monthsof rent-free space to 19 different organizations.
Organizations included Feed My Starving Children,
Girl Scouts, Habitat for Humanity, National Multiple
Sclerosis Society, The Salvation Army and Toys
for Tots.

43

OUR APPROACH

Communities

ENVIRONMENTSOCIAL

GOVERNANCE

Prologis IMPACT Day

Disaster Relief

IMPACT Day

We strive to respond immediately to disasters that
affect our employees and communities. Our goal
is to provide a financial gift from the corporate
foundation augmented by a matching gift opportunity
for employees who choose to participate. We partnerwith the disaster relief organizations best positioned toreach and serve affected communities. Partners haveincluded the American Red Cross and Mercy Corps.

On May 16, 2014, we held our second annual IMPACT
Day, our global day of service. Launched in 2013,
IMPACT Day gives our employees the opportunity
to demonstrate Prologis’ core values of Integrity,
Mentorship, Passion, Accountability, Courage andTeamwork (IMPACT).

Volunteering
We encourage our employees to volunteer, not only
because it contributes to our communities but also
because giving back is fundamental to our company
culture. Our employee volunteer program gives
employees four days each year to volunteer during
regular business hours. This includes three days tovolunteer at company-sponsored events, including
one for IMPACT Day and one to volunteer at theorganization of the employee’s choice.

Beginning in Tokyo and following the sun across
53 cities in Asia and Europe before concluding in San
Francisco, approximately 1,400 Prologis employees
volunteered 7,000 hours in support of 63 nonprofit
organizations. Activities ranged from environmental
cleanup efforts in the U.S. to student mentorship in
Europe and road-safety education programs in Asia.

welfare. In 2014, the Prologis Foundation donatedmore than $1.2 million to nonprofit organizations
through grants and matching gifts.
In addition to gifts directed by the foundation,
we sponsor two U.S. employee programs
through the Prologis Foundation. Our matching
gifts program matches employee contributions
to 501(c)(3) nonprofit organizations and toschools and universities. Our Dollars for Doers
program gives grants to organizations where our
employees volunteer outside of business hours.

Prologis Foundation
We formed the Prologis Foundation in 2001 to
support nonprofit organizations working within our
focus areas of environment, education and human

44

OUR APPROACH

Case Study

ENVIRONMENTSOCIAL

GOVERNANCE

Donations

Exceptional Community
Service Award

830
Desktops, laptops,
monitors and printers
donated across Europe

Eva van der Pluijm, a research analyst in
our Amsterdam office, received the 2014
Walter C. Rakowich Award for Exceptional
Community Service, the highest
philanthropic honor bestowed by Prologis.
Named in honor of former Prologis CEO
Walt Rakowich, the award recognizes
the individual, team or office that best
demonstrates a deep commitment to thecommunity. Eva is the primary contact
for numerous nonprofits supportedby Prologis. She is a key organizer of
employee volunteer events and is the
manager for a number of donation
programs. Through these programs, shehelps to steer excess foreign currency
that employees bring home from vacation
to Stelvio for Life and Right to Play,and donates used printer cartridges to
the Rare Disease Foundation.
In 2014, Eva joined with colleagues at
our Amsterdam office to put our goodneighbor philosophy to work when

computer upgrades created a surplus ofcomputer hardware no longer needed by
the company. Rather than relegate usedequipment to the landfill, the Prologis
team devised a sustainable solution that
also supported community organizations.
A specialty firm securely wiped clean the
hardware which was then delivered to theSalvation Army for re-use or disassemblyand sustainable recycling. Through thisprogram, more than 830 desktop andlaptop computers, monitors and printerswere collected from eight offices acrossEurope, with many realizing an extended
life within community organizations
supported by the Salvation Army.

45

2014

OUR APPROACH

Corporate Responsibility Report

ENVIRONMENTSOCIAL GOVERNANCE

GOVERNANCE
We are committed to corporate governance practices
that support a business environment of enduring
and uncompromising integrity. Our board comprises
ten annually elected members, nine of whom are
independent, including our lead director. Of the ten,
two are women.
The board’s Governance and Nomination Committee
oversees sustainability. The committee receives
annual updates on Prologis’ sustainability and corporate
responsibility programs.

46

OUR APPROACH

Risk Management

ENVIRONMENTSOCIAL GOVERNANCE

Budapest, Hungary

We take a holistic approachto managing risk across thecompany. The concept ofrisk mitigation is woven into
every function at Prologis.
Risks to our business include but are not limited
to the following:• Financial risks (fluctuations in stock price,
liquidity/debt ratings, customer credit, taxes andcurrency-related risks)• Operational risks (human capital, processes,
technology and disaster recovery)

GRI G4-14

Before we commit capital to an investment, we
complete a thorough due diligence process andpresent our findings in a formal investment memo
to Prologis’ internal Investment Committee. The
Investment Committee consists of 13 voting members
and one associate member. Nine of the committee
members are permanent voting members andfour are rotational, representing cross-functional
senior leadership.
The Investment Committee undertakes an economicrisk analysis and considers the environmental conditionof a property before approving proposed investments.

Our analysis may include:• Environmental assessments and development plans
to minimize impacts to surrounding communities fromincreased traffic, light or glare and storm water runoff• Biodiversity studies to determine impacts on wetlands
or endangered plant and animal species and mitigation
via adjusted development plans

For a complete description of Prologis’ corporate
governance practices and our approach to risk
management, please refer to our 2014 Proxy
Statement and 10-K, or visit our Investor Relations
page on our corporate website.

• Organizational risks (reputation, competition,
culture and governance)• External risks (natural disasters andgeopolitical factors)• Macroeconomic factors (supply and demand)

47

OUR APPROACH

EthicsENVIRONMENTSOCIAL GOVERNANCE

San Francisco, California

Acting responsibly is integral
to our company culture. It
strengthens the connection we
have with our stakeholders,makes Prologis a more desirable
place to work and helps us
attract the very best andbrightest to our global team.
It builds goodwill in the communities in which we
operate and provides the trusted platform from which
we can inspire others to build a better tomorrow. Our
enduring commitment to responsible actions creates
the foundation that ensures Prologis’ continued
growth and success.

GRI G4-SO4Prologis has a zero-tolerance policy for bribery andcorruption. We are committed to acting professionally,
fairly and with integrity in all business dealings andrelations globally. We believe success springs from aculture of the highest ethical standards. To that end,
our employees, officers and board members receive
regular training to ensure that they remain current on
ethical issues and corporate values. Annual training
is offered for employees on our Code of Ethics andBusiness Conduct, information security, global fraud
prevention and the U.S. Foreign Corrupt Practices Act,
focusing on anticorruption and antibribery.
GRI G4-56

for all company relationships, including those withcustomers, suppliers and communities as well as
among employees. The highest standards of ethicalbusiness conduct are required of Prologis employees.
Employees will not engage in conduct or activity
that may raise questions about the company’s
honesty, impartiality or reputation or otherwise cause
embarrassment to the company. The Prologis board of
directors has adopted a Code of Ethics and BusinessConduct, which is applicable to all employees and theboard. The Code can be viewed on our website. It isalso available on our company’s intranet.
At the beginning of their tenure with Prologis, allemployees formally certify their acknowledgment
and acceptance of our Code of Ethics andBusiness Conduct.

Code of Ethics and Business Conduct
Prologis strives to be known for integrity and highethical standards. We conduct business fairly,
impartially, in an ethical and proper manner andin full compliance with all laws and regulations. In
conducting our business, integrity is the foundation48

OUR APPROACH

EthicsENVIRONMENTSOCIAL GOVERNANCE

Atlanta, Georgia

Our Ethics Committee includes our chief legal
officer and general counsel, chief human resources
officer and chief financial officer. The Committee’s
responsibilities involve setting and updating ethics
policy, overseeing employee ethics training, providing
guidance and advice to employees, and investigating
reported incidents of ethics noncompliance.
GRI G4-58

We have clearly defined and communicated processes
for reporting incidents or situations that may violate
our Code of Ethics and Business Conduct. Ourinternal audit department ensures that all reports areinvestigated and appropriate management action istaken when necessary. Periodic reports are made to
the board’s Audit Committee.

GRI G4-57

GRI G4-LA14

In 2014, Prologis received eight ethics inquiries to our
Ethics Helpline, a confidential, third-party-administered
hotline for reporting suspected Code of Conduct
violations. Of these, two were unsubstantiated. For
each of the six substantiated inquiries, appropriate
action was taken.

Supplier Code of Conduct
We launched our Supplier Code of Conduct in 2013.
This Code is written into contracts we sign with our
suppliers. To deepen engagement with our suppliers
on our Code, we are creating stakeholder engagement
forums that we will host and document in 2015.

Global Compliance Policy
GRI G4-SO9

Our Global Compliance Policy reinforces our corporate
prohibition against bribery and corruption in all
countries. The policy combines best practices fromthe U.S. Foreign Corrupt Practices Act, U.K. Bribery
Act and other similar laws applicable to the regionsin which we operate.
Our Code of Ethics and Business Conduct and our
Global Compliance Policy have been translated into
16 languages for Prologis employees around the world.

For our Americas suppliers, we have an annual
prequalification process that requires future suppliers
to disclose Lost Time Injury (LTI) rates, health andsafety policies, any potential OSHA violations, andany potential environmental violations. In 2015,
we are automating our prequalification documentation
so that we can pull reports and track LTI rates for allof our suppliers.

49

OUR APPROACH

Industry Associations

ENVIRONMENTSOCIAL GOVERNANCEGRI G4-16

Prologis is a member of numerous industry associations and trade groups, including:

Swindon, United Kingdom

Asia Pacific Real Estate Association (APREA)

National Association of Real Estate Investment Trusts(NAREIT)

Association of Industrial Real Estate Brokers (AIRE)

National Brownfield Association

Boston College Center for Corporate Citizenship (BCCCC)

Pension Real Estate Association (PREA)

Building Owners and Managers Association (BOMA)

Real Estate Roundtable (RER)

Council on Foundations (COF)

Retail Industry Leaders Association (RILA)

German Association for Sustainable Construction(DGNB)

Solar Electric Power Association (SEPA)

Global Real Estate Sustainability Benchmark (GRESB)The Climate Registry (TCR)

Global Reporting Initiative (GRI)
Organizational Stakeholder

The European Association for Investors in Non-Listed
Real Estate Vehicles (INREV)

Institute for Sustainability

U.K. Green Building Council (UKGBC)

Institute of Real Estate Management (IREM)

U.S. Department of Energy’s Better Buildings Challenge

International Facility Management Association (IFMA)

U.S. Green Building Council (USGBC)Japan Institution of Logistics Systems

Urban Land Institute (ULI) and the ULI Greenprint Center
for Building Performance

National Association of Industrial and Office Properties(NAIOP)

50

OUR APPROACH

Independent AssuranceStatement
Scope and Objectives
DNV GL Business Assurance USA, Inc. (DNV GL) was
commissioned by Prologis Inc. to conduct independent
assurance of its 2014 Corporate Responsibility
Report (‘the Report’), as published on the company’s
website at www.prologis.com/cr and to carry out an
independent verification of its 2014 greenhouse gas(GHG) assertions (Scope 3) for reporting to the CDP
in 2015.
The assurance process was conducted in accordancewith the AccountAbility 1000 Assurance Standard[AA1000AS (2008)] between December 2014 andJune 2015. We were engaged to provide Type 2
assurance to a moderate level, which covers:• Evaluation of adherence to the AA1000APS(2008) principles of inclusivity, materiality, andresponsiveness (the Principles)• The reliability of specified sustainability performance
information along with related claims in thereport including:–– Green Building Certifications;–– Warehouse Portfolio Energy Efficiency;–– Results of employee training initiatives relating
to material issues;–– Employee engagement;–– Customer satisfaction;–– 2014 greenhouse gas (GHG) assertions for
Scope 3 emissions (category 6 — ​business travel
and category 7 — ​employee commute) for reportingto the CDP in 2015.

Information presented in the Report, with the
exception of financial information presented in the
Corporate Overview, was included in the scope of
our assurance engagement. We used the Global
Reporting Initiative (GRI) Quality of Information
Principles (Balance, Clarity, Accuracy, Reliability,
Timeliness and Comparability) as criteria for evaluating
performance information. The verification of GHG
emissions was conducted using the World BusinessCouncil for Sustainable Development (WBCSD)/World Resources Institute (WRI) greenhouse gas
protocol and the organizational boundaries are all
global sites under Prologis’ operational control. All data
was verified for the period between January 1st to
December 31st, 2014.
Responsibilities of Prologis Inc. and of the
Assurance Providers
Prologis has sole responsibility for preparation of theReport. DNV GL, in performing our assurance work, is
responsible to Prologis management. Our statement,
however, represents our independent opinion and isintended to inform all Prologis stakeholders.
DNV GL was not involved in the preparation or datacollection process of any part of the Report. Thisis our ninth year of providing assurance for Prologis.
In addition, our sister company, DNV (U.S.A.), Inc. has
been retained by Prologis to provide verification of2014 Corporate Greenhouse Gas Inventory Scope 1
and 2 emissions using The Climate Registry’s General
Verification Protocol version 2.0. We adopt a balanced

ENVIRONMENTSOCIAL GOVERNANCE

approach toward all stakeholders when performing
our evaluation.
Our team comprised: Dave Knight, Shyla Girvetz,
Natasha D’Silva, and Shruthi Poonacha. Further
information, including individual competencies
relating to the team, can be found at:www.dnvglsustainability.com
Basis of our opinion
Our work was designed to gather evidencewith the objective of providing assurance as
defined in AA1000AS (2008). We undertook thefollowing activities:• We conducted interviews with a selection of thesenior officers and managers based in San Francisco,California and Denver, Colorado who are responsible
for areas of management and stakeholder relationships
covered by the Report. The objective of these
discussions was to understand top level commitment
and strategy related to corporate responsibility and
Prologis’ governance arrangements, stakeholder
engagement activity, management priorities,
and systems;• We visited one site in development in São Paulo,
Brazil. During the site visit, we met with Senior Vice
President and Country Manager, Brazil; Senior Vice
President and Head of Construction and Development,
Americas; local management and employees as wellas the General Contractor responsible for construction
management at the site;

51

OUR APPROACH

Independent AssuranceStatement• We conducted a general review of issues that could
be relevant to Prologis’ operations and policies toprovide a check on the appropriateness of statements
made in the Report;• We assessed documentation and evidence that
supported and substantiated claims made in
the Report;• We reviewed the specified data collated at thecorporate level, including that gathered by otherparties, and statements made in the Report.
We interviewed managers responsible for internal
data validation, reviewed their work processes,
and undertook sample-based audits of the processes
for generating, gathering, and managing thequantitative and qualitative sustainability data;• We provided feedback on the report based on our
assurance scope.

Additional activities related to verification of GHG
Scope 3 emissions• We assessed GHG information systems andcontrols, including:–– Selection and management of all relevant GHG
data and information;–– Processes for collecting, processing, consolidation
and report GHG data and information;–– Systems and processes that ensure the accuracyof GHG data and information;–– Design and maintenance of the GHG
information system;–– Systems and processes that support the GHG
information system;• We examined the GHG data and information
to develop evidence for the assessment of the
GHG assertions;• We evaluated whether the evidence and data aresufficient and support Prologis’ GHG assertions.

Findings
On the basis of the work conducted, nothing came toour attention to suggest that the Report does notproperly describe Prologis’ adherence to the Principles
of Inclusivity, Materiality, and Responsiveness.
Moreover, nothing came to our attention to suggestthat the data and claims made in the Report are
not accurate and complete.

ENVIRONMENTSOCIAL GOVERNANCE

Observations
Without affecting our assurance opinion, we havenoted the following areas of strong practice aswell as opportunities for Prologis to further improve
its adherence to the Principles and reporting of
performance information:
Inclusivity: the participation of stakeholders indeveloping and achieving an accountable andstrategic response to sustainability.
Prologis has demonstrated a commitment to ongoingengagement with internal and external stakeholders
across the business systematically. As a result of
this structured approach, it is evident that stakeholder
insight and expectations have informed the reportcontent as well as influenced decision-making within
the company. Through the Customer Advisory Board(CAB) Prologis has developed a successful modelfor engaging with customers on the sustainability
impacts that occur throughout property development
stages as well as during customer use of properties
and provided an avenue for ongoing dialogue. Prologis
has demonstrated good practice in increasing
customer awareness on innovative sustainability
aspects of its buildings. Prologis aims to leverage
this model and is exploring other opportunities
for cross-sector engagement to inform the focus ofits sustainability strategy.

52

OUR APPROACH

Independent AssuranceStatement
We commend Prologis for its ongoing efforts tocommunicate and demonstrate to stakeholders thatsustainability is a key part of the company’s value
equation. We encourage Prologis to report on how it isusing this dialogue to help breakdown some barriers tosignificant sustainability challenges such as increasing
uptake of renewables.
An area of growing emphasis for the company is
responsible sourcing as reflected by the increased
reporting on the company’s management approachand performance in this area. In order to ensure
consistency across the business regions, werecommend that Prologis continue to develop andreport on systems for monitoring and reviewing
supplier adherence to the code of conduct to support
increased accountability and demonstrate a clear linkto business decisions and sustainability priorities. For
example, we recommend reporting on the number oflanguages the Code of Conduct is translated into in
relation to total languages spoken by suppliers as wellas introducing a mechanism to confirm understanding
and implementation of the code.
Materiality: identification of those issues which
are necessary for stakeholders to make informed
judgments concerning Prologis and its impacts.
The report addresses the most material environmental
and social issues facing the company and its
stakeholders and lists the top five. As per ourrecommendation last year, we recommend that itprovide further detail of the outcome and the relative
prioritization of these and other issues.
Prologis used the outputs of its first formal materiality
assessment, conducted in 2013, to confirm the topics
covered in the report. In addition, corporate functions
including the sustainability and enterprise risk
management have either participated in or conductedperiodic benchmarks of the REIT sector which haveprovided further input into the key sustainability issues
and trends which is included in the report.
We recommend that Prologis should build on the 2013
materiality process to include external stakeholder
viewpoints, which we understand is planned for next
year. This should enable Prologis to analyze feedback
systematically, identify current and emerging issuesof greatest significance to the company and its
stakeholders, effectively balance potentially divergent
stakeholder priorities and hone report content.
Responsiveness: the extent to which anorganization responds to stakeholder issues.
Prologis engages and responds to stakeholders
throughout the company’s operations. In particular,
the company is committed to sustainability andprioritizes initiatives when there is a clear businesscase, including return on investment, mitigated risk,
or competitive advantage. In our opinion, this further
integrates sustainability into formalized decisionmaking processes.

ENVIRONMENTSOCIAL GOVERNANCE

To support its customers in achieving their own
sustainability goals, Prologis emphasizes its ability todesign and build facilities with low impact features andenergy-efficient lighting that enable its customers tohave more efficient and responsible operations. We
recommend it extends its tenant engagement program
at regional levels to both educate and enter into
dialogue with customers on how it can best respondto their needs in context of sustainability performance.
The biggest challenge for Prologis is to take its goodsustainability performance and increasingly bringcustomers and investors along so this is aligned
to the context and science of where sustainability
performance needs to be, e.g., getting out of fossil
fuels by mid-century. We recommend increased
reporting on how it is approaching this.
Performance Information
The specified data presented in the report areconsidered to be reliable and accurate as minimal
technical errors have been identified based on our
sampling. The goals and performance are presented
in a clear manner and in a way that trends areevident. We recommend, as per last year, all targets
are time-bound.
There are opportunities for some process
improvements such as establishing corporate
guidelines to ensure consistent data retention anddocument control, particularly as related to suppliers
and subcontractors (e.g., recording of working hours)
across business regions. Prologis should also consider

53hese are forclarifiedin futurereporting.
The inclusion
objectives,these
are clarified
in future reporting. The inclusionor performance
whereperformance
available, alongsideof peerdata,or sector
data, where available, alongsideay
thats illustrating
Prologis’performance
trajectory
the infographics illustrating Prologis’will
performance trajectory will
icular,rability andenablecomparability
users to moreeasilyunderstandsupportandenableusers to more easily understand

OUR APPROACH

Independent Assurancend the implicationsof performancetrends. of performance trends.
performanceand the implications
Statement
in,

ENVIRONMENTSOCIAL GOVERNANCE

ata presented
in the reportconsidered
to report are considered toandThe specified
dataarepresented
in theaccurateas minimal
technical
errors
have
been
on
of
be
reliableandaccurateas minimal
technical
haveoperations.
been
Based on the processes and procedures
including
suppliers
in periodic
trainings
around errors
its

d on our sampling.
to to
improveits
identified
based
oncontinues
our policies
sampling.
Prologis
continues to improve
its with a moderate assurance, there isconducted
safetyand Prologis
environment
ensureawarenesses data system
we recommend
thatandas partofnopartevidencethat these GHG assertions are nothumanandresources
data
systemwemonitoring
recommend
of
among
its
suppliersof thecompany’s
andthat as
mprovement,
it
improvetheeffective
trackingofallmateriallycorrect
and are not a fair representation
reportingrequirements
in
these
area.
For
example,this ongoing improvement, it improve the effective tracking of alls
GHG data and information, and have not been
training
canthat
suppliers
understandthe 2013 ofves as wethe
wereunabletoensure
fully
2013
numbers
training
initiatives
as verify
we
were
unableto fully verify
numbersedpreparedin accordance with the calculation methodofreportingandevaluating
near
miss
e review requirement
andEthicsChallenge
trainings.
Suchfor performance review and Ethics Challenge trainings. Suchisreferenced
incidents
in
order
to
prevent
futuresafetyincidents.
will provide
accuracy andreliability
this data
inreliability for this data in above.
improvements
willprovidefor
accuracy
anddfuture reports.
DNV GL Business Assurance USA Inc.
Prologis’ GHG assertions are that 9,834 metric tons
rket
Oakland, California
COCertificatione for Scope Inc.
3 (Business Travel and Employee
on Inc. of
DNV
2June 2015
Commute)wereemitted
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2014
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such,

its

ational
ShylaKnight
Girvetz
Dave
Dave
KnightSeniorConsultant
Project Director
Project
Director

NatashaD’Silva
Shyla
Girvetz
NatashaD’Silva
Consultant
SeniorConsultant
Project
Consultant

NatashaD’SilvaTom
Gosselin
Consultant
Technical Reviewer

The purpose of the DNV GL group of companies is to promote safe and sustainable futures. The USA & Canada Sustainability team is part of DNV GL Business Assurance,
a global provider of certification, verification, assessment and training services, helping customers to build sustainable business performance. www.dnvglsustainability.com

45

45

54

OUR APPROACHGRI G4 Content Index

General Standard Disclosures

Response/Page #ENVIRONMENTSOCIAL

GOVERNANCE

External Assurance

Strategy & Analysis
G4-1

CEO Letter

CEO Letter — page 4

Organizational Profile
G4-3

Organization name

Prologis, Inc.

G4-4

Primary brands, products and services

Company Overview — page 6

G4-5

Headquarters location

San Francisco, CA

G4-6

Where the organization operates

Company Overview — page 6

G4-7

Nature of ownership and legal form

2014 Form 10-K — page 3

G4-8

Markets served

Portfolio Map — page 7

G4-9

Scale of the organization2014 Form 10-K — pages 3, 14–15

G4-10

Total number of employees by type

Employees — page 38
Performance data spreadsheet — Social

55

OUR APPROACHGRI G4 Content Index

ENVIRONMENT

Response/Page #G4-11

Collective bargaining agreements

Our employees are not represented by collective
bargaining agreements with the exception of thosein France, where the country’s workforce falls undera collective labor agreement. Our employees inFrance account for approximately 3 percent of ourglobal workforce.

G4-12

Supply chain description

Supply Chain — page 10

G4-13

Organizational changes during the reporting period

G4-14Precautionary principle

Risk Management — page 47

G4-15

External charters, principles or other initiatives

GRI Organizational Stakeholder

G4-16

Membership associations

Industry Associations — page 50

SOCIAL

GOVERNANCE

External Assurance

Material Aspects & Boundaries
G4-17

Entities included in financial statements

Prologis, Inc.

G4-18

Process for defining report boundaries and content

Material Aspects and Boundaries — page 9

Yes, pages 51–54

G4-19

Material aspects included in the report

Material Aspects and Boundaries — page 9

Yes, pages 51–54

G4-20

Descriptions of material aspect boundaries within the organization

Material Aspects and Boundaries — page 9

Yes, pages 51–54

G4-21

Descriptions of material aspect boundaries outside the organization

Material Aspects and Boundaries — page 9

Yes, pages 51–54

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OUR APPROACHGRI G4 Content Index

ENVIRONMENT

Response/Page #G4-22

Restatements

Changes were made to our corporate GHG inventory
reported on page 32 due to: an error in 2013 employee
commute data which affected total Scope 3 emissions
as well as total emissions for 2013; and guidance from
TCR’s General Reporting Protocol which led to theinclusion of an Optional Scope 2 emissions category forboth 2013 and 2014.

G4-23

Significant changes

None

SOCIAL

GOVERNANCE

External Assurance

Stakeholder Engagement
G4-24

Stakeholder groups

Stakeholder Engagement — page 12

Yes, pages 51–54

G4-25

How stakeholders were identified

Stakeholder Engagement — page 12

Yes, pages 51–54

G4-26

Approach to stakeholder engagement

Stakeholder Engagement — page 12

Yes, pages 51–54

G4-27

Topics raised during stakeholder engagements

Stakeholder Engagement — page 12

Yes, pages 51–54

Stakeholder Engagement Mechanisms — page 15

Report Profile
G4-28

Reporting period

January 1, 2014 – December 31, 2014

G4-29

Date of most recent report

2013

G4-30

Reporting cycle

Annual

G4-31

Report contact

sustainability@prologis.com

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Response/Page #ENVIRONMENTSOCIAL

GOVERNANCE

External Assurance

G4-32“In accordance” option, GRI Index and report assurance

About This Report — page 8

G4-33

Policy regarding report assurance

About This Report — page 8

G4-34

Governance structure of the organization

Governance — page 46

G4-38

Composition of the board and its committees

2015 Proxy Statement — pages 22–25

G4-39

Whether the chair of the board is also an executive officer

Yes

G4-40

Nomination and selection processes for the board andits committees

2015 Proxy Statement — pages 11–12

G4-46

Board role in reviewing risk management processes forsustainability topics

Governance — page 46

Yes, pages 51–54

G4-47

Frequency of the board’s review of sustainability impacts, risks
and opportunities

AnnualYes, pages 51–54

G4-48

Highest committee or position that formally reviews and approves
the organization’s sustainability report

Governance — page 46

G4-51

Remuneration policies for the board and senior executives

2015 Proxy Statement — pages 25–29

G4-52

Process for determining remuneration

2015 Proxy Statement — pages 25–26

Governance
Yes, pages 51–54

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ENVIRONMENTSOCIAL

GOVERNANCE

Response/Page #External Assurance

Yes, pages 51–54

Ethics & Integrity
G4-56

Code of conduct

Ethics — page 48

G4-57

Helplines or advice lines for employees

Ethics — page 49

G4-58

Mechanisms for reporting concerns about unethical or
unlawful behavior

Ethics — page 49

Yes, pages 51–54

Response/Page #External Assurance

Specific Standard Disclosures
Economic
ECONOMIC PERFORMANCE

G4-EC1

Economic value

2014 Form 10-K — pages 45–87

G4-EC2

Climate change risks

Environment — page 17
2014 Form 10-K — page 13

Environmental
ENERGY

G4-EN3

Energy consumption (Scopes 1 + 2)

Performance data spreadsheet — Environment

G4-EN4

Energy consumption (Scope 3)

Performance data spreadsheet — Environment

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OUR APPROACHGRI G4 Content Index

ENVIRONMENT

Response/Page #G4-EN5

Energy intensity

SOCIAL

GOVERNANCE

External Assurance

Monitoring Our Portfolio — page 28
Performance data spreadsheet — Environment

G4-EN6

Energy reductions

Portfolio with energy-efficient lighting — 68%

Yes, pages 51–54

Performance data spreadsheet — Environment

G4-EN7

Energy reductions in products and services

Cumulative savings from efficient lighting andrenewable energy installations — 400 million kWhYes, pages 51–54

Sustainable Design — page 20
Monitoring Our Portfolio — page 28

G4-CRE1

Building energy intensity

Monitoring Our Portfolio — page 28

Water withdrawals by source

Total water withdrawal for the Denver office(commercial and irrigation) — 2,691,000 gallons

GHG emissions (Scope 1)

Energy and GHG Emissions — page 32

WATER

G4-EN8EMISSIONS

G4-EN15

Performance data spreadsheet — Environment

G4-EN16

GHG emissions (Scope 2)

Energy and GHG Emissions — page 32
Performance data spreadsheet — Environment

G4-EN17

GHG emissions (Scope 3)

Energy and GHG Emissions — page 32

Yes, pages 51–54

Performance data spreadsheet — Environment

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ENVIRONMENT

Response/Page #G4-EN18

GHG emissions intensity

SOCIAL

GOVERNANCE

External Assurance

Monitoring Our Portfolio — page 28
Energy and GHG emissions — page 32
Performance data spreadsheet — Environment

G4-EN19

Reduction of GHG emissions

Energy and GHG Emissions — page 32
Performance data spreadsheet — Environment

G4-CRE3

Building greenhouse gas (GHG) intensity

Monitoring Our Portfolio — page 28
Energy and GHG emissions — page 32

LAND DEGRADATION, CONTAMINATION AND REMEDIATION

G4-CRE5

Land remediated and in need of remediation for the existingor intended land use.

Impact Assessments and Remediation — page 29

PRODUCTS & SERVICES

G4-EN27

Mitigation of environmental impacts of products and services

Energy and GHG Emissions — page 33

Environmental impacts from product distribution andemployee travel

Energy and GHG Emissions — page 32

TRANSPORT

G4-EN30EMPLOYMENTG4-LA1

Number and rate of new employee hires and turnover

Performance data spreadsheet — Social

G4-LA2

Benefits provided to full-time employees

Training, Benefits and Compensation — page 41

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ENVIRONMENT

Response/Page #SOCIAL

GOVERNANCE

External Assurance

TRAINING & EDUCATION

G4-LA9Average hours of training for employees

Training, Benefits and Compensation — page 41

G4-LA12Composition of Governance bodies and employees

Performance data spreadsheet — Social

Society
LOCAL COMMUNITIES

G4-SO1

Local community engagement, impact assessments anddevelopment programs

Impact Assessments and Remediation — page 29
Communities — page 43

ANTICORRUPTION

G4-SO4

Communications and training on anticorruption

Ethics — page 48

Yes, pages 51–54

SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

G4-SO9New suppliers screened for impacts on society

Ethics — page 49

Product Responsibility
PRODUCT & SERVICE LABELING

G4-CRE8Type and number of sustainability certification, rating andlabeling schemes for new construction, management, occupation
and redevelopment

Sustainable Building Certifications — page 23

Yes, pages 51–54

Performance data spreadsheet — Environmental

62

2014

Corporate Responsibility
ReportPrologis Corporate
Headquarters
Pier 1, Bay 1
San Francisco, California 94111 USA
Prologis.com+1 415 394 9000
Publication date: August 2015
For more information, please contact Jeannie Renné-Malone, VP Sustainability,
at sustainability@prologis.com

OUR APPROACH

ENVIRONMENTSOCIAL

GOVERNANCE