2013
corporate
responsibility
reportPrologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Environmental Stewardship.
Social Responsibility.
Ethics and Governance.
As the global leader in industrial real estate, Prologis is focusedon building the most sustainable logistics and distribution platformin the industry.
With a long-standing commitment to corporate responsibility,
we continue to achieve success through formal programs within
three areas of focus.

Cover:
Prologis Park Chanteloup 8
HQE Certified

2

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index
Hamid R. Moghadam
Chairman and Chief Executive Officer

To our fellow stakeholders

For us, being a leading corporate citizen includes inspiring others to

We have long believed that doing the right thing is good for

get involved as a force for positive change. As part of this, Prologis

business – it helps us attract talent, deepens our connection withmade important strides forward in 2013, holding our first global day

our customers and builds goodwill with the communities in whichof service on May 17. Our colleagues contributed more than 7,000

we operate.

hours of service in their local communities during this single 24-hour

In 2013, we further advanced our sustainability efforts. We reduced
our environmental impact, launched a global day of service andstrengthened our governance standards.
Last year, 20 of our new development projects totaling 5.7 million
square feet (530,000 square meters) across seven countries received
sustainable building certifications, bringing our total certified
projects to 43 million square feet (4 million square meters) globally
since 2006. Approximately 64 percent of our operating portfolio has
been upgraded with energy-efficient lighting, up from 51 percent in2012. We also made progress with our rooftop solar initiative andhave now developed more than 100 megawatts of renewable energy

period. We partnered with 55 nonprofit organizations and schools
around the world to support the causes of education, human welfare
and the environment. The event gave our employees the opportunity
to demonstrate our core values of Integrity, Mentorship, Passion,
Accountability, Courage and Teamwork. IMPACT Day was such a
success, it will now be held annually.
We also launched our Supplier Code of Conduct, which defines
the ethical standards to which we hold our suppliers. We strive
to improve upon ethical, environmental and social standards
throughout our supply chain. We continue to work with our
suppliers to promote healthy and safe working environments.

in six countries since 2007.

3

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Over the years, we have worked hard to become the global leader

Environmental Stewardshipin industrial real estate. We are proud to be recognized for ourSocial Responsibility

commitment to corporate responsibility. We were included in the

Ethics and Governance

Global 100 Most Sustainable Corporations in the World list for

GRI Content Index

the sixth consecutive year. Prologis is also named the leader in
corporate governance in the REIT industry by Green Street Advisors,
topping its list for the 11th straight year. We are also recognizedin 2014 as one of Fortune Magazine’s World’s Most Admired
Companies, and were cited as the top real estate company for social
responsibility on this prestigious list.
The reputation we enjoy today for our high-quality facilities, strong
performance and corporate integrity reflects the commitment of thePrologis team to do the right things for our business – in the rightway. We’re proud of our achievements this year, and we value yoursupport as we strive for enduring excellence in global real estate.

Sincerely,

Hamid R. Moghadam
Chairman and Chief Executive Officer
May 30, 2014

6x

Named to the Global
100 Most Sustainable
Corporations in the World

43 MSFof certified sustainable
development projects
4Prologis’ global corporate headquarters is located in San Francisco. We
have 72 offices in 21 countries around the world.

Prologis2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Company Overview

Our corporate headquarters is located in San Francisco, California,

Prologis is the global leader in industrial real estate across theand our operational headquarters is located in Denver, Colorado.

Americas, Europe and Asia. As of December 31, 2013, the company

Other principal office locations include Amsterdam, Luxembourg,

had 2,921 properties and development projects totaling 569 million

Mexico City, Shanghai, Singapore and Tokyo. As of December 31,

square feet (52.9 million square meters) in 21 countries, up from 554

2013, we employed 1,456 individuals worldwide.

million square feet (51.5 million square meters) in 2012. Occupancy
at the end of 2013 was 95.1 percent. Our properties were leased tomore than 4,500 customers, including third-party logistics providers,transportation companies, retailers and manufacturers. Assets undermanagement totaled $48.2 billion at the end of 2013, with revenue
for the year of $1.75 billion.

Our investment strategy focuses on providing distribution andlogistics space to customers whose businesses are tied to global
trade and depend on the efficient movement of goods. Our markets
are segmented into two main categories: global and regional.
Global markets comprise roughly 30 of the largest, most liquidmarkets tied to global trade. These are defined by large population

Prologis is a self-administered and self-managed real estate

centers with high per capita consumption rates and feature major

investment trust (REIT). As a REIT, we are required to distribute a

sea ports, airports and other transportation infrastructure. Regional

minimum of 90 percent of our taxable income to investors annuallymarkets serve local consumption and are less supply constrained.

in the form of dividends. Information on the company’s financial
performance, dividends and market capitalization can be found byvisiting http://ir.prologis.com.

4,500

Customers across a diverse
range of industries$48.2B
Total assets undermanagement

Our business strategy is composed of two operating segments:
Real Estate Operations and Investment Management.

569

Million square feet

2,921

Industrial properties across theAmericas, Europe, and Asia
5

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Real Estate Operations

REPORT PROFILE

Environmental Stewardship

Rental Operations – We collect rent from our customers underThis is our seventh corporate responsibility report incorporating

Social Responsibility

operating leases, including reimbursements for the vast majority

the Global Reporting Initiative (GRI) framework. This report is in

Ethics and Governanceof our operating costs. We expect to generate long-term internal

accordance with the GRI G4 Sustainability Reporting Guidelines and

GRI Content Index

growth in rental income by maintaining a high occupancy rate,

Construction and Real Estate Sector Supplement (CRESS) at the Core

controlling expenses and increasing rental rates.

level. The report has been externally assured by DNV GL (formerly

Capital Deployment – This includes development, redevelopment
and acquisition of industrial properties that lead to rental operations
and are therefore included with that line of business for segment
reporting. Within this line of business, we capitalize on:

Two Tomorrows) using the AA1000 Assurance Standard (2008).
Two Tomorrows has provided external assurance for our corporate
responsibility and sustainability reports since 2006. As part of theassurance process, members of the Prologis executive committee
and senior management were interviewed to ensure the report

1. our land bank;

was prepared using the principles of inclusivity, materiality and2. t he development expertise of our local teams;

responsiveness. The assurance statement can be found on page 43.

3. o ur global customer relationships; and4. t he demand for high-quality distribution facilities in key markets.

Investment Management
We invest with partners and investors through our ventures, bothprivate and public. We tailor industrial portfolios to investors’
specific needs and deploy capital with a focus on larger, longduration ventures and open-ended funds with leading global
institutions. We also access alternative sources of public equity
through publicly traded vehicles such as the Nippon Prologis
REIT, Inc. These private and public vehicles provide capital for

G4 Material
Disclosure: G4-23

The report, published annually, is global in scopeand covers our activities in the Americas, Europe

and Asia during calendar and fiscal year 2013. Our last report was
published in April 2013 and covered calendar year 2012. The scopeof this report is consistent with the 2012 report. If you havequestions or feedback, please contact Prologis’ Investor Relations
Department at +1 415 394 9000.
G4 Material
Disclosure: G4-22

Since our last report, we have recalculated our2011 operational carbon footprint, which is detailed

distinct portfolios across our global platform. We hold a significant

in the Environmental Stewardship section of this report. Thisownership interest in these ventures that ranges from 15 to 55

recalculation was the result of an analysis conducted by The Climate

percent. We believe this provides a strong alignment of interests

Registry (TCR). When TCR reviewed the third-party verification ofwith our partners.

our 2012 footprint, they compared our 2011 and 2012 footprints.

For more information on our business, please refer to our 2013
Annual Report, available online at www.prologis.com.

The TCR analysis determined that our 2011 Scope 1 emissions wereoverstated by approximately 75 metric tons due to an incorrect unitof measure applied to the final calculations.

6

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

MATERIAL ASPECTS AND BOUNDARIES
G4 Material Disclosure:G4-17 & G4-18

Prologis has applied GRI’s Reporting Principles
for Defining Report Content and Defining

Material Aspects and Boundaries to identify topics that reflecteconomic, environmental and social impacts that we believe
are relevant to our business and our stakeholders. The basis forreporting on other matters specific to the operations of our business– including joint ventures, subsidiaries, leased facilities, outsourced

The materiality assessment concluded that theissues most material to Prologis include:
Customer satisfaction

Employee satisfaction

Anti-corruption

Portfolio energy use

G4 Material
Disclosure: G4-19

Sustainable building certifications,ratings and labeling
G4 Material Disclosure:G4-20 & G4-21

Each of these issues is material within theboundaries of our operational control andoperations and other entities that can affect comparability from

included in the report. We also provide data, where reasonably

period to period – can be found in Prologis’ 2013 Annual Reportavailable, for facilities that we own and lease to our customers.

and Form 10-K, which is filed with the United States Securities

Limitations include the occupants’ operations of our properties,

and Exchange Commission and is also available in the SEC Filings

which are outside of Prologis’ control. We strive to work with oursection of Prologis’ website at http://ir.prologis.com/sec.cfm.

customers on sustainability matters, but their activities fall outside

In late 2013, we conducted a materiality assessment to ensure thesustainability and corporate responsibility issues that we believe
are most material to our business and our stakeholders would be
adequately covered in this report. Our corporate responsibility teamdeveloped a survey listing more than 40 items for consideration

our boundary for performance-data reporting. We do not reporton the business activities of entities where we do not have direct
operational control, which include our co-investment partners,
joint venture partners, service providers, customers, contractors,
suppliers and vendors.

and reviewed it with members of our executive committee, regionalpresidents and heads of departments to determine which issues
in the survey had a significant, moderate or minimal impact to ourbusiness. Many of the individuals who interact directly with our
key stakeholders, including members of the investor relations,investment management, global customer solutions and humanresources departments, were surveyed to determine the degree towhich these issues influenced our stakeholders’ assessments anddecisions about Prologis. More than 30 Prologis executives andsenior managers completed the survey. The survey results were thenplotted on a graph to prioritize the issues that are most important toour business and our stakeholders.

7Prologis
2013 Corporate
Corporate
Responsibility Report
Responsibility
Reportharbor park
Green Path
Stakeholder Engagement
Budapest, Hungary

Corporate Overview
Environmental Stewardship
Environmental
Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index
Prologis Park Budapest-Harbor“The development
provided a unique
opportunity to makethe green space
both educational
and usable.”
Robert Koncz,
Director of Property Management,
Prologis Hungary and Romania

Prologis first launched the global

The park also includes a recreation area equipped with a soccer“Green Path” program in 2009

field, water feature and barbecue pit for customer events and leisure

to help our employees focus on

activities. In the community garden, customers are able to plantusing the best green practices

trees and grow vegetables. Irrigation for the grounds and garden

in the areas of energy, water,

comes from a nearby sustainable wastewater treatment plant.

procurement and waste. In
September 2013, the program
expanded outside the company when we hosted a tree-planting
ceremony to open the first “Green Path” educational, recreationaland sports area in Prologis Park Budapest-Harbor.
“We had the idea to make ‘Green Path’ a physical concept fromthe development site plan,” said Robert Koncz, director of property
management for Prologis in Hungary and Romania. Mr. Koncz also
oversees the Sustainability Practice Group for the company’s Central“We’re organizing soccer tournaments for customers this year,” said
Laszlo Kemenes, Prologis’ market officer for Hungary and Romania.
“In Europe, most companies have their own soccer teams. Fiege,
one of our customers in this development, fields two and they’ve
already booked the park to play on Sundays.”
The “Green Path” is just one example where we are working toachieve exceptional customer satisfaction while maintaining our
focus on environmental sustainability.

and Eastern Europe Region. The park includes a path where signs
detail information about our “Green Path” program and encouragecustomers to take a more sustainable approach to resource
consumption, waste reduction and transportation.

2009

Launched the first global“Green Path” program

240

Average number of monthly
visitors to the Green Path
8

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

STAKEHOLDER ENGAGEMENT

Stakeholder Engagement Mechanisms

Environmental StewardshipWe strive to provide transparent and industry-leading reporting. We

Customers

Social Responsibility

also endeavor to engage in candid dialogue with our stakeholders

Ethics and Governanceand incorporate actionable feedback into our business. We

GRI Content Index

recognize that our operations may impact and are impacted byothers, so working proactively with our stakeholders is of vital
importance to Prologis.
Framework & Approach
G4 Material Disclosure:G4-24 & G4-25

We identify our stakeholders as any individual
or group who may directly affect or be affectedby Prologis’ business operations. These include: customers,
employees, investors, contractors, local communities, associations,brokers, governments, vendors and suppliers.
We use a variety of means to communicate with our stakeholders,
including: customer satisfaction surveys, group and one-on-one
meetings, industry forums and events, media interviews, quarterly
earnings calls, employee town hall meetings, public planningmeetings and meetings with vendors and suppliers. A list of
stakeholder engagement mechanisms by stakeholder group can be

G4 Material
Disclosure: G4-26

Shareholders − Public

Annual customer advisory board
meetings in the United States andEuropeQuarterly earnings calls including
Q&A with senior management

Biannual customer satisfaction
surveys at the property level

Dedicated Prologis colleagues
who respond to investor requests

Dedicated Prologis colleagues
who respond to needs andrequests of our focus customers

Frequent opportunities to interact
with senior management at
investor events

Customer-focused marketing
materials about sustainability andother topics

One-on-one investor meetings
to gather real-time feedback

Speaking engagements at
customer-attended conferencesand events
Informal discussions to share bestpractices
Regional customer events anddirect customer visits

Regular investor forums

Property tours to better
understand our properties andmarket conditions
Proprietary research reports
Surveys from socially responsible
investment funds and indexes,
such as the Dow Jones
Sustainability Index

Publication of timely research
reports on business activity andvarious market topics

found at the right.
G4 Material
Disclosure: G4-27

Our stakeholders regularly contact us to seek more
information about our corporate responsibility

practices. Our institutional investors often inquire about ourapproach to corporate responsibility and the environmental
performance of properties in our co-investment ventures throughthe Global Real Estate Sustainability Benchmark (GRESB) survey andthrough individual meetings. Current and potential customers areinterested in understanding the energy efficiency and green building
features of our properties. Our employees primarily inquire about
our volunteering and charitable giving efforts.
9

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Investors—Investment Management

Employees

Quarterly reports on fundperformance

Periodic global employee
engagement survey

Quarterly investor calls covering
fund performance and future
outlook, including Q&A withfund teams and investment
management senior management

Quarterly all-hands meeting andglobal webcast with CEO andsenior management

Dedicated Prologis investment
management relations team to
respond to investor requests
One-on-one investor meetingsand conferences
Regular investor forums
Property tours to better familiarize
investors with market conditions
and the properties in which thefunds are invested
Questionnaires and surveys frominvestors and their consultants
regarding environmental, socialand governance practices
Regular written correspondence
on issues such as contributionagreements and distribution
notices of return on capital
Research-focused local andregional events to educate
investors on global industrial realestate, the current climate andfuture trends

Training programs and support
Annual performance reviews
Intranet site for internal
communications
In-person sustainability andcorporate responsibility
presentations
Brokers
Annual broker summit
appreciation event
Quarterly broker update
newsletter to keep brokers
informed of relevant Prologis
news
Attendance at and sponsorship ofnational broker conferences
Attendance at and hosting ofvarious broker meetings at themarket level

Nongovernmental
Organizations (NGO)NGO information requests andsurveys such as CDP
Attendance at conferences andmeetings
Governmental Agencies
Close collaboration on projects
ranging from brownfieldredevelopment to new
developments
Engagement during the permitting
process for renewable energy
projects and new developments
Suppliers
Contract development andinteraction throughout term ofcontract
One-on-one meetings and calls
Preferred vendor list
Industry Associations
Participation on committees andleadership teams

Communities
Interaction with communities
before, during and after
development
Employee volunteerism
Donations to nonprofit andcharitable organizations
Media
Press releases distributed
regularly announcing significant
business activity
Proactive engagement on topics
important to specific media
outlets, including Prologis’
approach to sustainability
Press events hosted to engage
with media on significant
announcements
Interviews conducted regularly
with Prologis spokespersons andsubject matter experts
Dedicated Prologis colleagues to
respond to media inquiries on adaily basis

Active participation at conferences
and meetings

Broker satisfaction surveys related
to specific broker events

Proprietary research reports

10Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governanceprologis China
Road SAFETY PROGRAM
Road safety is one of the top

GRI Content Index

social issues in China and is
an important issue for ourcustomers. For this reason,
the Prologis team in Shanghai

by safe driving training at the Prologis Jiuting Logistics Center, an
infill facility in Shanghai. By request of our customers, the secondroad safety program was held at the Prologis Chengdu Airport
Logistics Center in September. That event was supported by thecenter’s three tenants: Deppon Logistics, Geodis and Walmart, as
well as Chengdu Shuangliu Traffic Police Administration. Each of the
100 drivers who completed the training was given a safe driving kit
packaged by Prologis China employees.

created the Prologis Road Safety

In 2014, Prologis China plans to host safe driving seminars in

Program. “We feel we’re in afour locations across the country. While the program started as

unique position to join efforts with our customers, whose dailya corporate responsibility initiative to promote awareness about

operations involve a team of truck drivers, to promote awarenesssafe driving, it has evolved into an effective engagement tool forabout safe driving and ultimately create a safer community for all of

stakeholders. “It’s great to see more joining of hands,” said Davidus,” said Ben Cornish, president, Prologis China.

Yu, COO, Prologis China. “As the program expands into more cities,

In a joint effort with customers, employees, communities, local
governments and other stakeholders, Prologis organized a series ofseminars targeting truck drivers to improve driving skills and roadwe will continue to reach out, both internally and externally, to ouremployees, customers, governments and communities, in supportof safer roads in China.”

safety awareness. The May 2013 launch of the program included aceremony attended by customers and government officials, followed2013

Launched the
China Road Safety Program

100

Drivers trained in 201311

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Customers

We also engage with our customers on a more strategic level

Environmental Stewardship

Our customers are integral to our business. We serve more than

through our Customer Advisory Board (CAB). The CAB meetsSocial Responsibility

4,500 customers globally, including third-party logistics providers,annually in North America and Europe. These two-day, in-person

Ethics and Governancetransportation companies, retailers, assemblers and manufacturers.

meetings include representatives from a dozen customers,

GRI Content Index

Prologis has a customer solutions team dedicated to serving our
focus customers. We develop long-term relationships with ourcustomers and strive to understand their businesses and current
and future needs, serving as their strategic partner for real estate ona global basis.
Understanding the satisfaction of our customers is of paramountimportance. We have been conducting biannual surveys with ourcustomers at the property level since 1999. In 2013, we completed
an Americas Customer Satisfaction Survey through Kingsley &Associates, an independent third-party provider. Nearly 4,900
individuals representing our customers were surveyed, andapproximately 47 percent replied. Areas of focus included: Overall

representing a diverse mix of industries. The meetings coverindustry trends, challenges our customers face and ways Prologis
can improve our service level. Sustainability is also a regular topic
of discussion, especially as it relates to new technologies, building
certifications and renewable energy. These discussions present aunique opportunity for us to share best practices on topics related
to sustainability and corporate responsibility and to ensure that ourprograms in these areas are in alignment with our customers.
These meetings have provided important feedback from ourcustomers. Following each CAB meeting, action items are assigned
to members of the global customer solutions team to ensure wefollow up on our commitments.

Satisfaction, Property Management, Service Assessment, Property
Assessment, Leasing & Tenant Improvements, Leasing, Renewal
Intentions, Value for Amount Paid and Referrals. We were pleased
with the results; our customers indicated that we provide solid
customer service and that the overall satisfaction of customers is inline with or better than our industry peers. More than 75 percent of
the Prologis Americas markets received a score of four or higher inCustomer Overall Satisfaction (on a scale of 1 to 5, with 1 being poorand 5 being excellent).

12

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Employees

Investors

Environmental Stewardship

Our employees are essential to our business. They sustain day-to-

We remain committed to providing timely, relevant information toSocial Responsibility

day operations, generate new business, build relationships and areboth our public and private investors. Our investor relations andEthics and Governancethe face of the company to our external stakeholders.

investment management teams responded to requests as needed

GRI Content Index

Prologis provides employee education on corporate responsibility
and sustainability topics throughout the year. On-site, in-personpresentations in our local offices provide a forum for educatingcolleagues and promoting the company’s goals.
To measure employee engagement, a companywide survey
was conducted in August 2013. The survey focused on strategic
leadership, engagement, continuous improvement, supervisor

and met with investors in one-on-one meetings and at investor
conferences throughout the year. Additionally, Prologis hosted a
global Investor Forum in San Francisco in September 2013. This
forum provided an opportunity for investors to learn about trends
in industrial real estate, receive an update on our views of market
conditions and gain a better understanding of our business and ourstrategic priorities. Attendees also had the opportunity to meet withsenior management and attend a property tour.

actions, collaboration, customer focus, execution, talent,achievement and corporate responsibility. We had an unprecedented
97 percent participation rate for the employee engagement survey.
Upon extensive review of the survey results, senior management
identified three global themes to focus on: process efficiency,
collaboration and communication, and career advancement anddevelopment. We will report on our progress in our 2014 corporate
responsibility report.

83%

Employees globally agreed withthe statement: I am proud of mycompany’s involvement in thecommunity and social causes

82%

Employees globally agreed withthe statement: It is important to
me to work for an environmentally
responsible company

80%

Employees globally agreed withthe statement: I am proud to workfor Prologis
13

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Prologis is a member of numerous
industry associations and tradegroups, including:Asia Pacific Real Estate
Association (APREA; Japan,
Singapore)
Association of Industrial Real
Estate Brokers (AIRE)
Boston College Center for
Corporate Citizenship (BCCCC)
Building Owners and Managers
Association (BOMA)
German Association for
Sustainable Construction (DGNB)

National Brownfield Association
Pension Real Estate Association(PREA)
Real Estate Roundtable (RER)
Retail Industry Leaders
Association (RILA)The Climate Registry (TCR)
The European Association for
Investors in Non-Listed Real
Estate Vehicles (INREV)
U.K. Green Building Council(UKGBC)

Institute for Sustainability (U.K.)

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

Institute of Real EstateManagement (IREM)

U.S. Green Building Council(USGBC)International Facility Management
Association (IFMA)

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

Japan Institution of Logistics
Systems

Awards Prologis received
in 2013 include:
Global 100 Most Sustainable
Corporations in the WorldNAREIT Industrial Leader in theLight Award
Top Ten Best Corporate Citizens
for the industry sector Financials/
Insurance/Real Estate as ranked by
CR Magazine

Prologis is a member of several
socially responsible investment
indexes, including:
Dow Jones North America
Sustainability Index (DJSI)FTSE4Good
Maplecroft Climate Innovation
Indexes (CII)

Global Real Estate Sustainability
Benchmark (GRESB) Sector Leader
Award for Prologis North America
Industrial FundEY Entrepreneur of the Year
National Award to Chairman and
CEO Hamid R. Moghadam

National Association of Industrial
and Office Properties (NAIOP)
National Association of Real
Estate Investment Trusts (NAREIT)

14

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Prologis strives tolead the industry insustainable development,
renewable energy andenergy efficiency.

Environmental
stewardshipPrologis
2013 Corporate
Responsibility Reportsustainability
policyPrologis is committed to minimizing
environmental impacts of ouroperations and development activity
in ways that benefit our customers,
our business and the communities

where we operate. This policy istranslated into a series of objectives
and goals that Prologis has adopted
for sustainable development,
operations and renewable energy.

Corporate Overview

ENVIRONMENTAL STEWARDSHIPIn 2013, our ongoing investments in energy efficiency upgrades,

Environmental Stewardship

Prologis is dedicated to leading the industry in sustainable

sustainably-certified construction and renewable energy reduced

Social Responsibility

development, renewable energy and energy efficiency. By linking

electricity demand in our global portfolio by 687 million kilowatt-

Ethics and Governancethese efforts to our business activities, we create and capture

hours. This amount of energy would be sufficient to convert 22

GRI Content Index

greater value.

percent of our global portfolio into zero-net-energy buildings.

	Provide industry-leading energy-efficient buildings that reduce

This report lays the foundation for how these investments willsustainability
objectives

customer operating costs	
Meet and exceed recognized sustainable development standards

to deliver best-in-class projects that enable more efficientcustomer operations and enhance the local community	Engage associates in every office to reduce energy, water andwaste in ways that enhance our profitability and reduce ourenvironmental footprint
sustainability
goals

deliver even greater value to our customers and investors in
the coming years. To monitor progress toward these goals, we
continue to enhance our data-gathering capabilities and improve
internal communication regarding our efforts. We provide updates
on our performance relative to these goals through our corporate
responsibility report, our website and through surveys andquestionnaires.

	Register 100 percent of new development projects with a goalof certification where recognized rating systems are available	
Achieve a 10 percent annual rate for energy-efficient lighting

upgrades in the global portfolio	Reduce energy consumption in the global portfolio 20 percent

by 2020 compared to a 2011 baseline	Increase the number of solar megawatts developed 300 percent

by 2016 compared to a 2010 baseline	Reduce our operational carbon footprint 20 percent by 2020

compared to a 2011 baseline

16

Prologis
2013 Corporate
Corporate
Responsibility Report
Responsibility
ReportCorporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governanceprologis ports
jersey city
distribution
centerRedevelopment Focus
Jersey City, New Jersey

GRI Content Index
A well-located site and a sustainable master plan deliver lasting benefits

Prologis acquired the property

The distribution center contains innovative technologies, such as

for our planned Ports Jersey City

LED lighting, clerestory windows to enhance natural lighting, state-

Distribution Center in 2008. The

of-the-art systems for energy management and environmental

site, part of a former industrial

systems to mitigate issues related to the former site use as a landfill.

waste landfill located in the heart

Extensive areas of the site have also been restored to a naturalof Jersey City, New Jersey, stoodriparian waterfront habitat, creating a public amenity of waterfront

empty for over 30 years. Prologis

access that did not previously exist in this area. The building ispartnered with the New Jersey Department of Environmental
Protection and the U.S. Environmental Protection Agency toredevelop the property and return it to productive use.

expected to receive LEED certification in 2014.
The work to close, clean up and restore the landfill is an important
example of a transformative public-private partnership that involved

The newly-developed, 878,254 square foot (81,000 square meter)

Prologis, the local community and state and federal agencies. The

facility is fully leased, providing critical distribution space in alandmark brownfield restoration project was also the recipient of

supply-constrained market that is located in the heart of the nation’s

N.J. Urban Transit Hub and Grow New Jersey Assistance Tax Credits.

largest population center, three miles from Manhattan and four
miles from the Port of New York / New Jersey.

878,254
Square feet of space

800

Jobs being created17

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Ports Jersey City in Context

Environmental Stewardship

In 2013, we added 20 sustainably-certified projects totaling 5.7

Social Responsibility

million square feet (530,000 square meters) across seven countries

Ethics and Governanceto our portfolio. There were several notable firsts, including the

GRI Content Index

first LEED-certified project in Brazil for Prologis, Prologis ParkSUSTAINABLE
DEVELOPMENTIN GERMANY

Cajamar Building 100, and our first BREEAM-certified project in the

The 200,000 square foot (18,000

Czech Republic, Prologis Park Jirny 7. To date, we have developedsquare meter) Prologis Park

43 million square feet (4 million square meters) of certified

Eifeltor 5 in Cologne, Germany,buildings across 12 countries and expect to see continued successreceived Gold certificationin this area as development activity continues in 2014.

from the German Associationfor Sustainable Construction

Cumulative Sustainable Building Certifications(DGNB). The project combines aby rating system

number of innovative, sustainable features. Constructed using low-2013

pollutant materials and FSC-certified wood from sustainable forests,

2012

heating system. As a result, the facility’s energy use is expected to

the facility was built with additional insulation and a highly-efficientbe 35 percent below German construction regulations. To contributeto sustainable operations beyond the shell of the building, Prologis

2011

provided an electric car and charging station at the property for2010

the customer to use for the 16 mile (25 kilometer) trip between ourfacility and its corporate office.

2009
CASBEELEEDBREEAM
HQE
DGNB

2008

2007

2006
0

5

10
Million Square Feet

15

20

“Sustainability is very important for us.
By leasing a modern, efficient facility from
Prologis, we are already on the right track.
Placing an electric car at our disposal gives us
the chance to go even further.”
Stephan Wolff, CEO, Objectflor

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Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Prologis U.K. Green
Travel Program
To help our customers’ employees in the United Kingdom
minimize their environmental footprint and save money, Prologis
implemented a Green Travel Program (GTP). The GTP, firstlaunched in 2010 at Prologis Park Kettering, matches employeesof participating companies with others traveling to and from thepark. By sharing transportation, employees are able to lower theirtransportation expenses, reduce roadway congestion and reduce theimpact of their commute on the environment.
The GTP at Kettering has been replicated at other Prologis parks,
including Bradford, Pineham, Ryton and Wellingborough, andnow has more than 500 participants. Prologis U.K. is now
implementing the GTP as a standard feature of future logistics
park developments and is evaluating potential expansion of the
program to existing parks.
The GTP demonstrates how Prologis goes beyond simply
developing and operating sustainable buildings to supporting
customers’ efforts to address their environmental impact. Prologis
has long recognized that well-located buildings proximate toGreenhouse Gas Emissions
Portfolio Carbon Emissions
Prologis monitors energy and carbon emission performance ofour buildings where we have access to whole-building energy
data through the Urban Land Institute (ULI) Greenprint Center for
Building Performance’s environmental management platform.
The ULI Greenprint Center is a worldwide alliance of leading realestate owners and investors who are committed to improving
the environmental performance of the global real estate industry,
focusing on emissions and energy reductions.
Prologis reported 2012 energy data for 432 properties to Greenprint,
including 124 properties with consistent year-over-year information.
This is a limited sample of our portfolio due to constraints on ourability to gather energy data from customers in our triple-net leased
portfolio. It does, however, give us a baseline for measuring energy
and carbon emissions. For those 124 properties, the 2012 building
energy intensity was 73 kWh/m2/year, and the 2012 greenhousegas emissions intensity was 33 kg CO2e/m2/year. We will report2013 energy data to Greenprint in 2014. We expect to report on agreater number of buildings in our portfolio in the coming years
and ultimately use this data to target properties for energy
efficiency upgrades.

population centers help minimize the distances trucks and workers
travel each day. The GTP takes this knowledge a step further andenables a more efficient commute to and from Prologis parks forour customers.

19

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Corporate Carbon Emissions

Environmental Stewardship

Prologis reports our operational carbon footprint, as well as risksSocial Responsibility

and opportunities related to climate change, to the nonprofit

Ethics and Governanceorganization CDP. In 2012, we also began reporting our operational

GRI Content Index

carbon footprint through The Climate Registry. Our 2011 North
American footprint and 2012 global operational footprint (Scopes
1 and 2) were independently verified by SCS Global Services.
Our 2013 global operational footprint (Scopes 1 and 2) was

Prologis Operational Carbon Footprint in CO2e

Scope
2

5,574
5,827
6,299

0

9,837**

3,991
3,985
3,854

Scope
3

independently verified by DNV (U.S.A.), Inc.
1,000

2,000

Prologis’ Scope 1 emissions include those related to burning fuels,
such as natural gas used by our offices and gasoline used in vehicles

2013
2012
2011

2,262
1,907*
2,143

Scope
1

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000Metric Tons
* Emissions offset** Includes employee commute

driven by our field personnel. Our Scope 2 emissions include
those related to electricity used by our offices. We include businesstravel in our Scope 3 emissions. For the first time, in 2013, we areincluding emissions related to employee commute in Scope 3.
Through energy efficiency and energy reduction measures, weare making progress toward our goal of reducing our absoluteemissions 20 percent by the year 2020, using 2011 as the baseline.
We also see value in purchasing carbon offsets to show our support
for a voluntary carbon offset market. In 2013, Prologis chose topurchase carbon offsets through the Colorado Carbon Fund, avoluntary carbon fund managed by The Climate Trust that supports
emissions reduction projects in the state of Colorado. Prologis
purchased offsets equivalent to 1,907 metric tons CO2e, which isequal to our 2012 Scope 1 emissions. The offsets supported an
innovative transportation project that moved freight from trucks
to rail transportation. Prologis is currently researching options forpurchasing further offsets in the coming years.

20

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship

Cool Roofing

Social Responsibility

White and reflective roofing,

Ethics and Governanceoften referred to as cool roofing,

GRI Content Index

helps manage indoor air
temperatures that can affect ourcustomers’ work environment
and productivity. Cool roof
surface temperatures remain
as much as 50 degrees Fahrenheit cooler than a traditional blackor dark-colored roof. This reduces not only temperatures inside thebuilding, but also the contribution to the heat-island effect outside
the building in the surrounding community. Heat-island effect is thephenomenon whereby air temperatures are increased by the sun’sheat when it is absorbed by roadways, structures and rooftops inurban areas.

The buildings in our global portfolio have more than 12,000 acres(4,800 hectares) of rooftops. We routinely install light-colored andenergy-efficient roofing when roofs need to be replaced or when a
new building is constructed, particularly in warm climates, in orderto help keep our distribution centers cool and comfortable for ourcustomers.
Energy-efficient roofing has the additional benefit of reducing
energy use up to 5 percent in air-conditioned spaces. This
contributes to lower customer energy bills. At the end of 2013,
Prologis had 177 million square feet (16 million square meters) offacilities with energy-efficient light-colored roofing, which represents
33 percent of our global operating portfolio. We expect this total togrow in proportion with our roof replacement activities, especially inwarm climates.

Cumulative Reflective Roofing
2013
2012
2011
135

140

145

150

155

165

170

175

180

Million Square Feet21

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Resiliency During
New Jersey’s
Superstorm Sandy

crews and materials on standby dedicated to each specific building.

“I cannot thank you enough for getting ourfacility back in working condition as quickly
as you did. The two weeks after [Superstorm
Sandy] were the most stressful and challenging
time of my career. Having Prologis as a partner
was instrumental in getting through that toughtime and getting back to shipping our productto customers.”

Teams assessed immediate needs and prioritized responses to thoseNicholas Gadaleta, VP Distribution, Maggy London

While Superstorm Sandy damage affected only a small portionof our properties in the region, we were prepared for this event.
We had emergency response procedures in place, emergency
communication plans, advance coordination with construction

most impacted, relocating some customers to temporary spaces atother buildings to minimize interruptions to their business.

procedures helped to limit the scope and severity of water damage,A prime example of our rapid response was with one of ourthereby reducing the amount of demolition waste and subsequentsignificant customers, Maggy London, a women’s apparel company.

construction materials needed to restore the facilities. Prologis

Power loss and an interior water surge threatened to cripple

applies comparable preparedness and recovery procedures

operations. Prologis restoration teams coordinated a massive effort

throughout our global portfolio to support customer operations

to reinstate the ability to meet the company’s tight delivery times.

and employs sustainable practices to minimize the impact of theWithin two weeks, local operations were up and running while

repair work. Our customer assistance following the October 2012tenants of other owners had yet to see an owner’s representative.

superstorm continued well into 2013. This experience has helped

Extensive preparations, a focus on ongoing maintenance and aswift response minimized damage and enabled nearly all repairs to

us to expand our emergency response plan and will allow us to be
increasingly effective in the future.

be completed within 60 days. Fast and well-coordinated recovery

22

Prologis
2013 Corporate
Corporate
Responsibility Report
Responsibility
ReportPier 1upgradeEnergy Efficiency and Renewable Energy Focus
San Francisco, California

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index
Pier 1, San Francisco

Decorative industrialstyle pendant light
fixtures in the Prologis
lobby were upgradedwith more energyefficient bulbs anddimming ballasts.
Fixtures are now
controlled by aphotocell that dims
the lamps when there
is ample daylight.

In 2013, Prologis completedpart of the project reduced energy use while increasing light levels

a comprehensive energy

by 33 percent in the Prologis office. A brighter work environment

efficiency upgrade and solar

has improved the workplace satisfaction of the team.

rooftop project at its corporate
headquarters on Pier 1, a multitenant historic building in
San Francisco. The projectis estimated to reduce electricity consumption by more than
20 percent.

The project was funded through an innovative funding mechanism
for sustainable upgrades known as Property Assessed Clean Energy(PACE) financing. This funding solution, the first of its kind in San
Francisco and one of the first in the world, enabled Prologis to planand implement a project that benefited all occupants of the building
by reducing energy costs and supplying clean solar energy.

The project included HVAC system improvements, LED light fixtures,motion sensors and daylight harvesting. A 200 kilowatt rooftop solar
array consisting of more than 800 solar panels was installed on theroof to serve the entire building. Energy-efficient lighting installed as

200 kW

Rooftop solar array consists ofmore than 800 solar panels

33%

Increased lighting levels

23

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Pier 1 in Context

Environmental Stewardship

Prologis continues to pursue energy-efficient upgrades to our global

Social Responsibility

portfolio. As the primary driver of energy use in our buildings is

Ethics and Governancelighting, we have focused our energy conservation efforts in thisGRI Content Index

area. At the end of 2013, 64 percent of our property portfolio had

Pier 1 Upgrade: Composition of Energy Savings

energy-efficient lighting. This seemingly simple improvement
is having a profound impact on the energy profile of our global

Baseline Energy Use

platform. In 2013, cumulative efforts in lighting upgrades, as wellas building certifications and renewable energy, eliminated theneed for 687 million kilowatt-hours of energy to be produced. Thisis enough energy to meet the electricity needs of 59,000 average
American homes, or 22 percent of our global portfolio.
Looking forward, we expect positive changes in the availability of

26% Energy Use
Reductions

67% Post-Upgrade Energy

0%

10%

20%

30%

40%

50%

60%

70%

80%

7% Solar

90%

100%

rebates from utilities to support cost-effective efficiency upgrades.
As new, more efficient lighting solutions such as LEDs become
technologically-mature and cost-effective, we look forward to
expanding our adoption of these newer lighting technologies.

64%of the operating portfolio
has energy-efficient lighting

687M

kWh saved in 2013
across all key
sustainability initiatives
24

Prologis
2013 Corporate
Corporate
Responsibility Report
Responsibility
ReportCorporate Overview
Environmental Stewardship

Prologis
Japan’s Solar
Portfolio
Renewable Energy Focus
Japan

Social Responsibility
Ethics and Governance
GRI Content Index
Prologis Park Kawajima 1

In 2013, Prologis completed theToday, one in five buildings in the Prologis Japan portfolio has

installation of 10.3 megawatts

solar panels. This solar portfolio is expected to deliver 10.4 millionof rooftop solar photovoltaic

kilowatt-hours per year, or enough energy to power 2,000 Japanese

projects on eight buildings inhomes. These and other projects expand Prologis’ global solar

Japan. This initiative delivers

program to more than 100 megawatts, increasing revenue for the

benefits to the surrounding

host properties and reducing demand on the power grid.

community by freeing up gridelectricity at peak periods during the day and reducing the demandfor energy from distant power plants. It further demonstrates
our capabilities to customers and investors by delivering highquality, innovative improvements to our properties that reduce
environmental impact.

10.3 MW
Rooftop solar installedin Japan during 2013

In addition to solar projects in Japan, Prologis commissioned
nearly 7 megawatts in the United States in 2013. Our solar program
complements our ongoing efforts to address climate change in waysthat are profitable for investors and Prologis while enhancing thesustainability of our facilities in their local markets.

100 MWof solar developed globally25

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Solar Projects in Context

Environmental Stewardship

Prologis’ 100 megawatts of rooftop solar projects in six countries

Social Responsibility

have an expected electricity production capacity of 125 million

Ethics and Governancekilowatt-hours annually, enough energy to power 12,500 average

GRI Content Index

American homes. This program has deployed solar panels on

Cumulative Solar Projects (MW)
2013
2012

more than 28 million square feet (2.6 million square meters) of2011

our portfolio to deliver revenue-generating projects that produce

2010

clean energy.
2009
2008
2007
0

20

40

60

80

100

Megawatts Installed by Country

United States
Japan
Spain
Belgium
FranceGermany

125M

Killowatt-hours
produced annually

12,500American homes could
be powered with energy
produced by Prologis
26

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

At Prologis, social
responsibility means
excellence in how
we interact with ourcolleagues, suppliers
and local communities.

Socialresponsibility

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Social Responsibility

Foundation grants were given to organizations primarily focused

Environmental Stewardship

At Prologis, social responsibility is a commitment to our colleagues,in the areas of education and human welfare. The Matching Gift

Social Responsibility

local communities and suppliers. This includes providing a

program matched employee contributions to 501(c)(3) nonprofit

Ethics and Governancedynamic work environment to support our colleagues’ professionalorganizations, as well as schools and universities. Additionally, our

GRI Content Index

development, working to improve the communities where we live

Dollars for Doers program provided grants to organizations where

and operate and engaging with our suppliers to address relevant

employees volunteered their time outside business hours.

social issues pertaining to health and safety.

Some of the organizations that received financial support from the

COMMUNITIESPrologis Foundation in 2013 included American Red Cross, Boys

Supporting social needs in our communities not only benefits

and Girls Clubs, Habitat for Humanity, Junior Achievement andour neighbors but also enhances our business. By leveraging ourMercy Corps.

financial and physical assets to advance causes such as education,
human welfare and the environment, we build relationships in thecities where we operate. By supporting our employees’ community
interests, we stand out as an employer of choice.

Space for Good
Prologis developed the Space for Good program to provide
temporary vacant space in our distribution facilities to help
charitable organizations address seasonal needs and respond to

Employee Volunteer Program

disaster relief efforts. Space for Good is an example of a program

The Employee Volunteer Program at Prologis is an importantthat aligns our business with our charitable activities in a way

part of our culture that allows us to invest in our communities.

that directly benefits the needs of the local communities where

This program provides all employees with four days per year to

we operate.

volunteer during regular business hours. This includes two days tovolunteer with fellow employees at company-sponsored events, one
day per year to volunteer for organizations of their own choosing
and one day to volunteer on IMPACT Day, Prologis’ global day ofservice (see page 30).
Prologis Foundation
The Prologis Foundation was established in 2001 with the goal ofproviding financial support to charitable organizations. In 2013, thefoundation donated more than $650,000 to nonprofit organizations,schools and universities.

In 2013, Prologis donated distribution center space valued at morethan $640,000. Organizations that benefited included the Marine
Toys for Tots Foundation, Boy Scouts of America and Girl Scoutsof the United States of America.
Entering New Communities
We place a high importance on developing long-term relationships
with the communities in which we operate. When Prologis develops
in a community, we often take part in studies and engage directlywith local stakeholders to ensure our business decisions align with
the needs of local residents. This is an important part of bringing thecustomers that lease space from us closer to their own customers.

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Prologis
2013 Corporate
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Corporate Overview

This also ensures our operations balance the needs of each

Environmental Stewardshipcommunity with the economic and environmental requirements ofSocial Responsibility

our customers and business. As part of our due diligence, we often

Ethics and Governancecomplete development and environmental impact analyses thatGRI Content Index

enable us to do some or all of the following:
Estimate the total number ofjobs to be created and new tax
revenues to be generated
Conduct traffic studies to estimate
the total number of automobile
and truck trips for eachdevelopment
Develop traffic plans inconjunction with municipalities
to efficiently manage traffic flows
and minimize impacts to thesurrounding community
Minimize adverse impacts fromlight or glare
Attend community planningmeetings to address citizen
and government questions andconcerns

Develop stormwater management
plans to properly control runoff
Determine whether thedevelopment will impact
wetlands, and if so, apply
appropriate mitigation efforts
so there is no net decrease inwetland quality or quantity
Verify whether any endangered
plant and animal species will be
impacted by our development andadjust development plans whenpossible to mitigate impact

Partnering with
Logistics Schools
For the past eight years, Prologis
has partnered with the Poznań.

School of Logistics (Wyzsza
Szkoła Logistyki, or WSL) in
western Poland on the “Prologis
for the Best” competition. The
event provides scholarships tostudents who present the best master's theses on logistics issues.
“This project enables us to uncover new talent and to have apositive impact on the growth of logistics in Poland,” said Marta
Tesiorowska, vice president, marketing and communications,
Prologis Central and Eastern Europe.

Hire local contractors and service
providers“Thanks to Prologis, we can honor our most talented graduates,”

Source local construction
materials where feasible

Best’ has built a spirit of positive competition among our students.”

said Wojciech Zalewski of WSL. “Over the years, ‘Prologis for the
Zalewski also noted that former winners have gone on to become
entrepreneurs and senior managers in logistics companies.

In addition, when we establish a presence in a market throughdevelopment, we often improve local infrastructure, such as
expanding access to utilities and building roads to improve traffic
flow. Our facilities also become an integral part of a community’s
employment opportunities, as our customers create jobs in various
sectors, including warehousing and distribution.

In Tokyo, Prologis has been sponsoring the Waseda University
Graduate School of Commerce’s course called “Logistics Today”
since 2006. In addition to providing financial support for the course,
Prologis employees and customers lecture at a number of classes
throughout the semester. Prologis is proud to support the next
generation of logistics and supply chain management experts.

29

Prologis
2013 Corporate
Responsibility Report

Impactday

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index
Denver“I love that ourcompany allows us
to volunteer our timeand started IMPACT
Day. Being able tohelp others is sosatisfying, and it’s
great to work for
a company thatembraces thisphilosophy.”
Dolores Wild,
administrative assistant,
Prologis Seattle

SwedenSeattleEmployee volunteering has been an important partcompany, is operated locally on a global scale. This enables us toof our culture for many years, and in 2013, we took

leverage our global platform to make a long-lasting impact in the

our community involvement to the next level. We

communities in which we live and work.”

held our first global day of service on May 17, 2013,
partnering with 55 nonprofits and schools aroundthe world. The event, called IMPACT Day, gave our employees theopportunity to demonstrate the Prologis core values of Integrity,
Mentorship, Passion, Accountability, Courage and Teamwork(IMPACT). Over 1,400 Prologis employees contributed more than
7,000 hours of service in our communities, supporting the causes of
education, human welfare and the environment. As a result of thesuccess of our first IMPACT Day, the event will now be held annually.

Employees in each Prologis office organized their local
volunteer activity to ensure their project was meaningful to ouremployees and local community. “IMPACT Day has been themost professionally but above all the most personally rewarding
experience, as I was in charge of planning and organizing theactivity for the Italian team,” said Lisa Prendin, office manager inthe Milan office. “I met a great nonprofit foundation that helps thepoor and homeless and victims of substance abuse here in Milan.
Working together to help people in need was such an important“Community involvement and corporate citizenship are central toexperience for each one of us, and the smiles of the guests in thethe Prologis spirit and our way of doing business,” said Hamid R.

homeless shelter were the best reward ever!”Moghadam, chairman and CEO, Prologis. “IMPACT Day, like ourRepresentative Projects
Building homes with Habitatfor Humanity in Pennsylvania
and Hungary

Restoring beachfront andtransforming parks and woodlands
in California, Georgia and Japan

Planting gardens at schools in
California, Czech Republic andthe U.K.

Sorting and packing food at anumber of regional food banks
across the United States

Painting and renovating classrooms,
community centers, orphanages
and shelters in Texas, Mexico andGermany

Teaching students financial literacy
concepts with Junior Achievementin California and Colorado
30

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

EMPLOYEES

Learning and Development

Environmental StewardshipWe believe our success is dependent upon the integrity of our

Prologis is dedicated to the continual growth of our employees.

Social Responsibility

workforce. Prologis is an equal opportunity employer, dedicated to

The learning and development department at Prologis has four

Ethics and Governanceattracting and retaining exceptional talent by providing challenging

focus areas:

GRI Content Index

and rewarding professional opportunities matched with competitivecompensation packages. We recruit, hire, train, promote andcompensate without regard to race, color, age, religion, gender,

2.Leadership development, including programs developed to enhanceleadership ability, prepare leaders for the future and cultivate leadershipskills in high-potential employees.

disability or sexual orientation.
The following tables outline how Prologis’ 1,456 employees are
distributed by region and gender, as well as their employment typeand employment contract by gender. Employee statistics are as ofDecember 31, 2013.

RegionMale

FemaleAmericas409462Europe

190

186

Asia

111

98

Employment
Type andContract

1. On-boarding, including programs to help new employees gain relevant
knowledge and skills, understand their new role and maximize theirimpact.

3. Real estate training, including learning experiences designed to help all
employees better understand our industry and provide ongoing learning
for those in real estate operations.
4. Career enrichment, including learning opportunities that help all
employees build basic business skills to succeed, such as presentation
skills, effective communication and time management.

Male

FemalePermanent
Full-Time

703

727

Permanent
Part-Time217

Temporary5

2

In 2013, 168 managers and 454 employees completed Great People
Management, a training course to help our managers enhance theirsupervisory skills.
All Prologis employees receive an annual performance review. In
2013, we conducted training for all managers so they could deliver
effective performance reviews for their teams. Approximately 400

Our employees are not represented by collective bargaining
agreements with the exception of France, where the country’s
workforce falls under a collective labor agreement. These individuals
comprise approximately three percent of our global workforce.

managers participated in this training for a total of 400 hours.
Additionally, 107 employees attended a negotiation seminar fora total of 749 training hours. Including the Ethics Challenge training
detailed in the Ethics and Governance section of this report,
Prologis provided approximately four hours of training for each
employee in 2013.

31

Prologis
2013 Corporate
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Corporate Overview
Environmental Stewardship

Employee Wellness

Mountains of Colorado to benefit Children’s Hospital Colorado.
Prologis teams in three cities also ran in the J.P. Morgan Corporate

Social Responsibility

As part of an increasing focus

Challenge, the world’s largest corporate running series, benefiting

Ethics and Governanceon employee wellness, Prologis

nonprofits in Boston, San Francisco and Shanghai.

GRI Content Index

held the first global Healthy

Prologis colleagues in Mexico

Steps Fitness Challenge in 2013.

City organized the third annual

Employees were placed on teams

Prologis Race, a 3K walk andwith their colleagues around the

5K & 10K race. Close to 1,200

world, and they enjoyed friendly

people participated in the event,competition while encouraging every participant to log at least

including employees, their

10,000 steps per day. Participants tracked their daily steps with apedometer over eight weeks.

families and an assortment ofvendors and clients. The race was held in Mexico City’s Cuautitlan

Although participating in the challenge was voluntary, nearlyIzcalli neighborhood, near many Prologis properties. All of the funds

700 employees from 17 countries signed up. Throughout theraised were donated to two nonprofit organizations created to help

competition, employees motivated each other with videos andthe handicapped habitants of the neighborhood.

emails. Participants also shared photos taken during their walks on
Twitter. “Helping run this event has been extremely heartwarming,and I’m impressed with the people who work for Prologis aroundthe world,” shared Brenda Standke, executive assistant in the
Denver office. “It doesn’t matter where people are on the spectrumof fitness - they may run a marathon or just try to walk their dog to
try to make 10,000 steps - but everyone is reaping the reward.”
In addition to Healthy Steps, Prologis supported employees
throughout the year as they cycled, ran and walked to benefit
charitable organizations. Employees across the United States and
Mexico cycled over 150 miles in three days through the Rocky

1,200

Participants in third
annual Prologis Racein Mexico

Employees in Europe organized the fourth annual Prologis Cycle
Challenge, in which employees, brokers and customers cycled over
350 miles in four days throughout southern France. Employees fromthe U.K., the Netherlands and Germany participated in the event,which raised funds for Macmillan Cancer Support, Acorns Children’s
Hospice Trust and The MOVE Partnership.
By supporting employee involvement in these and other fitness
events around the world, Prologis encourages employees to live
healthy lifestyles while building relationships with their colleagues
and communities.

700

Employees participatedin Healthy Steps Fitness
Challenge32

Prologis
2013 Corporate
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Corporate Overview

SUPPLIERS

Environmental Stewardship

Prologis’ supply chain for our development business comprises

Supplier Code of Conduct

Social Responsibility

general contractors and subcontractors who build properties

In accordance with our core values, Prologis recognizes that ethical

Ethics and Governanceon our behalf. We routinely use local construction materials

business practices are critical to our long-term health as a public

GRI Content Index

and suppliers. The two largest components of our buildings,

company. In 2013, Prologis launched our Supplier Code of Conduct.

concrete and steel, are typically procured from local suppliers.

As a company that works closely with our suppliers, we have theAdditional materials used in the construction process include

opportunity to promote healthy and safe working environments. We

roofing materials and lighting equipment. We use local or regional

strive to improve upon ethical, environmental and social standards

contracting for the construction of our buildings, except where

throughout our supply chain.

necessary resources are not readily available. This effort supports
local businesses and keeps our investments within the local
community. Using local suppliers often reduces shipping andtransportation needs, further reducing the environmental impactof our development projects.

The Prologis Supplier Code of Conduct defines the standards towhich we hold our suppliers, defined as any firm or individual that
directly or indirectly provides a service to Prologis. Prologis also
encourages application of the code to all subcontractors engaging
in business relationships related to the company. The code covers

Our general contractors in the United States are required tosupplier expectations with regard to business, employment andprovide accident and incident data along with their businessenvironmental practices. It has been translated into the primary

information when proposing to work with Prologis. These data

language of each country where we operate, ensuring all suppliers

are evaluated along with factors such as cost and prior project

can easily understand and adhere to our expectations.

experience to assess contractor performance in our procurement
and contracting decisions.
Suppliers for our property management business include firmsthat provide landscaping, maintenance and custodial services forour properties. In our offices, the primary items procured are officesupplies and IT and communications support systems.

33

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

Trust and businessintegrity are criticalto the long-term healthof any company.
At Prologis, we recognize
this fundamental principle
and have formallyincorporated it into our
corporate governanceand our day-to-day
business operations.

Ethics andgovernancePrologis
2013 Corporate
Responsibility Report

Corporate Overview

ETHICS

Our Ethics Committee includes our chief legal officer and general

Environmental Stewardship

Prologis has zero tolerance for bribery and corruption. We arecounsel, chief human resources officer and chief financial officer.

Social Responsibility

committed to acting professionally, fairly and with integrity in all

The responsibilities of the committee include setting and updating

Ethics and Governanceour business dealings and relationships. We believe that to be

the ethics policy, overseeing employee ethics training, providing

GRI Content Index

successful and build upon a culture of the highest ethical standards,

guidance and advice to employees and investigating reported

our employees, officers and board members must receive regularincidents of ethics noncompliance.

training to stay abreast of ethical issues and our corporate values.

We also have institutional processes for reporting incidents orCode of Ethics and Business Conduct

situations that may be in violation of the Code of Ethics and

The Prologis Board of Directors has adopted a Code of Ethics andBusiness Conduct. Our internal audit department ensures all reports

Business Conduct, which is applicable to all employees and theare investigated, with appropriate management action takenboard. It is intended to help avoid conflicts and other issues. The

when necessary. Periodic reports are made to the board’s Audit

Code of Ethics and Business Conduct can be viewed on our website

Committee.

at http://ir.prologis.com/governance.cfm. The code is also available
on the Prologis intranet and has been translated into 16 languages
used in the countries where Prologis operates.

Global Compliance Policy
In 2012, Prologis released an updated version of our Global
Compliance Policy, which reinforces our corporate position against

Employees are responsible for abiding by the code in thebribery and corruption in all countries. The policy combines best

performance of their jobs and in their interactions with each otherpractices from the Foreign Corrupt Practices Act (FCPA), U.K. Bribery

and those outside of Prologis, including: customers, investors,

Act and other similar laws from the regions where we operate

suppliers, government officials and local communities. At thearound the world. All employees were notified of the improvements

start of their employment, employees must formally certify theirto the policy at the time of its release and can access it at any time

acknowledgment and acceptance of the Code of Ethics andvia the company intranet. The policy has been translated into 16

Business Conduct.

languages used in the countries where Prologis operates.

35

Prologis
2013 Corporate
Responsibility Report

Environmental Stewardship

Ethics challenge

Social Responsibility

Prologis recognizes that employees may be faced with ethical

Ethics and Governancedilemmas or other complex issues in the workplace. We believe

GRI Content Index

that to be successful and establish a culture of the highest ethicalCorporate Overview

standards, our employees, officers and directors must receive
semiannual training to stay abreast of new regulations and Prologis
beliefs and values.
The fall 2013 Ethics Challenge focused on the Prologis Code of Ethics
and Business Conduct, helping employees understand the policies
that govern Prologis, the laws that regulate our business and theethical principles that guide us when laws and policies do notprovide the answers. As a result of the training, employees learned
We continue to provide awareness training to all employees on theto evaluate ethical dilemmas more clearly and to better understandGlobal Compliance Policy. This training is managed by our global

how to get advice or report suspected problems through thecompliance officer. The Ethics Challenge training detailed in thisappropriate channels. Employees are encouraged to discuss ethics-

section also included content on anti-corruption and bribery. In fall

related questions or concerns with their supervisor. Additionally,

2013, every Prologis employee completed the Ethics Challenge,

the Prologis Ethics Committee maintains an independent hotline

along with a number of contractors. In total, 1,535 persons

with a 24-hour answering service and allows employees to sendcompleted the training, representing a total of 1,151 training hours.

anonymous written inquiries or report online.

36

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

CORPORATE GOVERNANCE

board members sit on this committee and take an active role inEnvironmental Stewardship

We are committed to corporate governance practices that supportconsidering how the corporate responsibility program is integrated

Social Responsibility

a business environment of uncompromising integrity. Our highest

into the company’s strategic plans and business activity. The

Ethics and Governancegovernance body is the Board of Directors, followed by our seniorcommittee receives updates on Prologis’ corporate responsibility

GRI Content Index

officers.

programs on an annual basis.

Our board committees include the following:

For a complete description of Prologis’ corporate governance

Audit Committee
Board Governance and Nomination Committee

practices, please visit http://ir.prologis.com/governance.cfm.

Compensation Committee

Risk Management

Executive Committee

Prologis takes a holistic approach to managing risk throughout

The board comprises 10 members who are elected annually, nineof whom are independent. Prologis CEO Hamid R. Moghadam ischairman and Irving F. Lyons III is the lead independent director.
Prologis requires that a majority of our board be independent inaccordance with the applicable provisions of the Securities Act of1934 and the standards adopted by the NYSE. Additionally, the Audit
Committee, the Board Governance and Nomination Committee

the company. While our risk management program includes the
traditional departments — legal, investment services and insurance/risk management— the concept of risk mitigation is woven into
every function at Prologis, from treasury and finance to leasing
and human resources. Each functional area has developed internal
metrics to track performance and guide decision making related torisk mitigation.

and the Compensation Committee consist entirely of independent
directors as required by law or under the rules of the New York Stock
Exchange. Of the 10 members of the board, two are women.
Our governance structure helps to enforce the culture of corporate
responsibility that has been fostered at Prologis. The board’s
Governance and Nomination Committee has specific oversightof corporate responsibility at Prologis. Three independent37

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index

The scope of risk within our business includes,
but is not limited to, the following:
External risks (hazards causedby fires, natural disasters or
geopolitical factors)

Organizational risks (reputation,competition, culture or
governance)

Financial risks (fluctuations instock price, liquidity/debt ratings,
customer credit, taxes or currencyrelated risks)

Macroeconomic factors (grossdomestic product, supply anddemand)Operational risks (human capital,
processes, technology or disasterrecovery)In order to evaluate, measure and manage risk on an integrated
basis across geographies and different aspects of our business,
we have developed the Prologis Integrated Risk Index (PIRI).
PIRI is a proprietary risk management model that provides realtime monitoring of total company risk as well as the individualcomponents of risk. PIRI evaluates external, financial and businessrisks, including real estate-related asset risks such as vacancy,
development, land, environmental, seismic and litigation.

We take precautionary measures to address risk in operational
planning and with new investments. We have operational controls inplace for emergency management, carry comprehensive insurance
coverage, maintain dedicated personnel to manage our assets,
conduct both standardized and consistent leasing practices andconduct a thorough underwriting process. In addition, throughour internal audit department, we perform regular, independent
assessments of our systems to ensure we are performing according
to Prologis’ objectives.
We are also committed to analyzing risks at the board level.
The board is responsible for evaluating the company’s businessperformance and is updated on Prologis’ major strategies, plans andinvestment activity at every meeting. The board’s Audit Committee
is charged with monitoring the quality and integrity of Prologis’
accounting and reporting practices. The Compensation Committee
periodically assesses whether the company’s compensation policies
and practices for employees are appropriately aligned with thecompany’s management of enterprise risk. The Board Governanceand Nomination Committee regularly reviews and develops

Before any capital is committed to a new investment, we perform

recommendations for the board regarding corporate governancethorough due diligence and present the findings in investment

matters and principles, as well as environmental stewardship andmemos to Prologis’ internal Investment Committee. The committeesocial responsibility matters.

conducts an economic analysis and considers social andenvironmental impacts before approving the proposed investment.

38

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

			External
General Standard Disclosures
Page	Assurance			External
General Standard Disclosures
Page	AssuranceSocial Responsibility

	Strategy & Analysis

G4-15	Externally developed economic,

Ethics and Governance

G4-1

Environmental Stewardship

GRI Content Index

Statement from the Chairman and CEO.		

3

principles to which the organization

	Organizational Profile
G4-3

Name of the organization.		

5

G4-4

Primary brands, products, and services.		

5

G4-5

Location of headquarters.		

5

G4-6

Countries of operation.		

5

G4-7

Nature of ownership and legal form.		

5

G4-8

Markets served.		

5

G4-9

Scale of the organization.		

5

G4-10	Number of employees by employment

31

contract, employment type, and gender.		
G4-11	Percentage of total employees covered

Organization’s supply chain.		

G4-13	Significant changes during the

G4-16

Memberships in associations.		

514	Identified Material Aspects
and Boundaries
G4-17	Entities in the organization's

7

43-45

financial statements.
G4-18

Process for defining report content.		

7

43-45

G4-19

Material Aspects.		

7

43-45

7

43-45

7

43-45

6

43-45

G4-20	Aspect Boundary within theorganization for each material Aspect.		

organization for each material Aspect.		
G4-22	Effect of any restatements of33

reporting period.
G4-14	Whether and how the precautionary

subscribes or endorses.		

G4-21	Aspect Boundary outside the31

by collective bargaining agreements.		
G4-12

14, 20environmental and social charters and

43-45

information provided in previous reports.		
G4-23	Significant changes from previous

6

43-45

reporting periods in the Scope and38

Aspect Boundaries.

approach or principle is addressedby the organization.

39

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

			External
General Standard Disclosures
Page	Assurance			External
General Standard Disclosures
Page	AssuranceSocial Responsibility

	Stakeholder Engagement

G4-33	Policy and current practice with

Ethics and GovernanceG4-24	List of stakeholder groups engaged byEnvironmental Stewardship

9

43-45

for the report.		

the organization.		

GRI Content Index

G4-25	Basis for identification and selection of

9

43-45

9

43-45

37

43-45

35

43-45

35

43-45

35-36

43-45

organization.

	Ethics and Integrity

engagement.		
G4-27	Topics and concerns raised throughGovernanceG4-34	Governance structure of the

stakeholders with whom to engage.		
G4-26	Organization’s approach to stakeholder

6

regard to seeking external assurance

9

43-45

G4-56	Organization’s values, principles,standards, and norms of behavior.		

stakeholder engagement.		
G4-57	Mechanisms for seeking advice on	Report Profile
G4-28

Reporting period.		

6

G4-29

Date of most recent previous report.		

6

G4-30

Reporting cycle.		

6

G4-31

Contact point for questions.		

6

G4-32	‘In Accordance’ option, GRI Content

Index, reference to External

ethical and lawful behavior.		
G4-58	Mechanisms for reporting concerns

about unethical or unlawful behavior.		

6,
39-42

Assurance Report.		

40

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship			External
Specific Standard Disclosures
Page	AssuranceSocial Responsibility

Environmental

Ethics and Governance

EnergyGRI Content Index

G4-DMA	Disclosure of Management Approach — Energy

16	G4-EN6	Reduction of energy consumption.		

23

	G4-EN7	Reductions in energy requirements of products and services.

24

CRE1

Building energy intensity.		

19

	G4-DMA	Disclosure of Management Approach — Emissions
Emissions20

	G4-EN15	Direct greenhouse gas (GHG) emissions (Scope 1).

20

	G4-EN16	Energy indirect greenhouse gas (GHG) emissions (Scope 2).

20

	G4-EN17	Other indirect greenhouse gas emissions (Scope 3).

20

CRE3	Greenhouse gas emissions intensity from buildings.

19

	G4-DMA	Disclosure of Management Approach — Land Degradation,
Land
Degradation, Contamination,
and Remediation

43-45

17

Contamination, and Remediation
CRE5	Land remediated and in need of remediation for the existing or

17intended land use.

Social		
	G4-DMA	Disclosure of Management Approach —Training and Education
Training
and Education

31

	G4-LA9	Average hours of training per year per employee.

31

	G4-LA10	Percentage of employees receiving regular performance31

and career development reviews.

41

Prologis
2013 Corporate
Responsibility Report

Corporate Overview
Environmental Stewardship
Social Responsibility
Ethics and Governance
GRI Content Index			
External
Specific Standard Disclosures
Page	Assurance
Local
Communities
	G4-DMA	Disclosure of Management Approach — Local Communities

28-29

	G4-SO1	Percentage of operations with implemented local community

28-29

engagement, impact assessments, and development programs.
Anti-Corruption
	G4-DMA	Disclosure of Management Approach — Anti-Corruption		

35

	G4-SO4	Communication and training on anti-corruption policies

36

43-45

and procedures.		
Product
and Service Labeling
	G4-DMA	Disclosure of Management Approach — Product and

12Service Labeling		
	G4-PR5	Results of surveys measuring customer satisfaction.		
CRE8	Type and number of sustainability certification, rating and labeling

12

43-45

18

43-45

schemes for new construction, management, occupation,and redevelopment.		

42

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

Prologis2013 Corporate
Responsibility Report

Corporate Overview

Independent Assurance Statement

been retained by Prologis to provide verification of 2013 Corporate

Environmental Stewardship

Scope and Objectives

Greenhouse Gas Inventory using The Climate Registry’s GeneralSocial Responsibility

DNV Certification Inc. (DNV GL) was commissioned by Prologis

Verification Protocol version 2.0. We adopt a balanced approach

Ethics and GovernanceInc. to conduct independent assurance of its 2013 Corporate

towards all stakeholders when performing our evaluation.

GRI Content Index

Responsibility Report (‘the Report’), as published on the company’s
website at www.prologis.com/cr
The assurance process was conducted in accordance with the
AccountAbility 1000 Assurance Standard [AA1000AS (2008)]. 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, and responsiveness (the Principles)
The reliability of specified sustainability performance information. This
included data relating to Green Building Certifications, Warehouse Portfolio
Energy Efficiency, results of employee training initiatives relating tomaterial issues, employee engagement survey, and customer satisfaction
survey as well as any claims in the report

Information presented in the Report, with the exception of financial
information presented in the Corporate Overview, was includedin 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.
Responsibilities of Prologis Inc. and of the Assurance Providers
Prologis has sole responsibility for preparation of the Report. DNV
GL, in performing our assurance work, is responsible to Prologis
management. Our statement, however, represents our independent
opinion and is intended to inform all stakeholders including Prologis.
DNV GL was not involved in the preparation of any part of theReport. This is our seventh year of providing assurance for Prologis
formerly as part of the Two Tomorrows group and now as part of
DNV GL. In addition, our sister company, DNV (U.S.A), Inc. has

Our team comprised: Dave Knight, Shyla Girvetz, and Natasha
D’Silva. 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 evidence with the objective ofproviding assurance as defined in AA1000AS (2008). We undertook
the following activities:
We conducted interviews with the Chairman of the Board of Directors andCEO, and a selection of the senior officers and managers based in San
Francisco, California and Denver, Colorado who are responsible for areasof 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 governancearrangements, stakeholder engagement activity, management priorities,
and systems;
We visited one warehouse site in Tracy, California, part of a Prologis
Park, where initial construction was completed in 2013 and a new phaseof construction was initiated in February 2014. During the site visit, we
met with Senior Vice President of Global Customer Solutions and theaccount leader for the customer based at the site, local management, andcontractor employees responsible for project management at the site-level;
We conducted a general review of issues that could be relevant to
Prologis’ operations and policies to provide a check on the appropriatenessof statements made in the Report;
We assessed documentation and evidence that supported andsubstantiated claims made in the Report;
We reviewed the specified sustainability data collated at the corporate
level, including data gathered by other parties, and statements madein the Report. We interviewed managers responsible for internal data
validation, reviewed their work processes, and undertook sample checks
on consolidated sustainability data;
We provided feedback on the report based on our assurance scope
43

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

Findings

Environmental StewardshipOn the basis of the work conducted, nothing came to ourSocial Responsibility

attention to suggest that the Report does not properly describe

The report addresses the most material environmental and social

Ethics and Governance

Prologis’ adherence to the Principles of Inclusivity, Materiality,

issues facing the company and its stakeholders.

GRI Content Index

and Responsiveness. Moreover, nothing came to our attention
to suggest that the data and claims made in the Report are notaccurate and complete.

Materiality: identification of those issues which are necessary for stakeholders to make informed judgments concerning Prologis and its impacts.

The organization has conducted a formal materiality assessment
for the first time which helped to confirm the topics covered in
the report. This was a recommendation made in our assurance

Observations

statement for the 2012 Report which Prologis has addressed. We

Without affecting our assurance opinion, we have noted therecognize that the process used to conduct the assessment was

following areas of strong practice as well as opportunities for

systematic and included input from internal stakeholders from

Prologis to further improve its adherence to the Principles andacross business operations and global regions, as well as thosereporting of performance information:

who have direct interaction with Prologis’ external stakeholders.

Inclusivity: the participation of stakeholders in developing and achieving an
accountable and strategic response to sustainability.

Prologis has an extensive ongoing engagement programs acrossthe company’s value chain that covers, amongst other things, how
the company’s values are embedded in management process. Thereare clear avenues for stakeholders to provide direct and indirect
feedback related to material and emerging issues for its operations.
There are strong examples of how Prologis has communicatedsustainability as part of its value equation and engaged customers,
employees, and investors in its material issues. We recommend that
Prologis more clearly detail the issues that are of interest to eachstakeholder group.
We commend Prologis for developing a Supplier Code of Conduct
in 2013. We recommend that the company begin to develop andreport on systems for monitoring and reviewing supplier adherence

The process included methodical selection of stakeholders so as to
avoid double-counting of a single perspective and responses were
weighted to support accurate representation of business impact.
Prologis highlights its top five material issues in the report. We
recommend that it provide further detail of the outcome andthe relative prioritization of the other issues. Additionally, we
recommend that Prologis continue to build on its materiality
process and expand it to include external stakeholders. This allows
the company to validate the outcomes and to determine theeffectiveness of its response and performance in the issue areas
deemed most significant. This will further support the company ineffectively identifying, prioritizing, and managing the issues that
impact the company and its stakeholders.
Responsiveness: the extent to which an organization responds tostakeholder issues

to the code of conduct to support increased accountability andStakeholder ideas and concerns influence decision making

demonstrate a clear link to business decisions and sustainability

throughout the organization. Further description in the sustainability

priorities.

report of the link between stakeholder engagement mechanisms,

44

Prologis
2013 Corporate
Responsibility Report

Corporate Overview

the issues raised, and key decision-making points related to

Performance Information

Environmental Stewardshipsustainability goals and objectives can indicate to users how

The goals and performance are presented in a clear manner. We

Social Responsibility

stakeholder considerations are integrated into the company’s

recommend that where there are not clear target dates or baselines

Ethics and Governancegovernance model.

for objectives, these are clarified in future reporting. The inclusion

GRI Content Index

We recommend that the company continue to formalize the way thatit uses engagement to further sustainability objectives. In particular,
it would be beneficial to understand more about the risks andimpacts in the construction phase and construction supply chain,of peer or sector performance data, where available, alongside
the infographics illustrating Prologis’ performance trajectory will
support comparability and enable users to more easily understandperformance and the implications of performance trends.

particularly in the emerging markets where Prologis is based, andThe specified data presented in the report are considered to

how the expectations of contractors play out during construction of

be reliable and accurate as minimal technical errors have been

new developments.

identified based on our sampling. Prologis continues to improve its

Meeting the next level of sustainability challenges requires acollaborative response as there are limitations to what Prologis
can achieve on its own. Stakeholders are increasingly interested
in how companies are creating systemic change. One example isthat Prologis’ development of roof-based solar energy is limited
by legislation, client and community acceptance as well as market

human resources data system and we recommend that as part ofthis ongoing improvement, it improve the effective tracking of all
training initiatives as we were unable to fully verify 2013 numbers
for performance review and Ethics Challenge trainings. Such
improvements will provide accuracy and reliability for this data infuture reports.

incentives and conditions. This could offer new commercial

DNV Certification Inc.

opportunities as well as lower carbon renewable energy sources for

Oaklandthe communities where facilities are operated, which may produce

May 2014

a range of benefits not only for Prologis but also for others. As such,		

we recommend that Prologis increase its disclosure related to its
current and planned collaborations about systemic, transformationalchange of the built environment.

Dave Knight
Project Director

Shyla Girvetz
Senior Consultant

Natasha D’Silva
Consultant

45