2016 Sustainability Report

An Integrated Approachto Sustainability

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Table of Contents
Prologis Overview
A Message from our CEO
The Year in Review from our Head of Sustainability
An Integrated Approach
Three Complementary Lines of Business
Drive Enduring Value
Creating Sustainable Value for our Stakeholders
Materiality and Stakeholder Engagement
Stakeholder Priorities and Engagement
Awards and Recognition
Environmental Stewardship
Environmental Goals and Objectives
High-Quality, Resilient Design
Innovations in Energy
Energy Efficiency
Water and Waste
Operations and Supply Chain
Corporate Carbon Footprint Reporting
Social Responsibility
People at Prologis
Employee Volunteerism and Giving
Employee Benefits and Well-Being
Ethics and GovernanceActing with Integrity
GRI Materials
Memberships and Associations
External Assurance Statement
GRI Standards Content Index
Data Snapshot
Engage With Us

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All data in this report is as of 12/31/2016.

Cover photo: Prologis team members, Denver, Colorado.
Table of contents: LED light installation

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About Prologis
Prologis is the global leader in logistics real estate. We own,
manage and develop high-quality properties in the world’s
most vibrant centers of commerce. Our 3,322 buildings in
20 countries serve 5,200+ of the world’s best brands andbusinesses. Customers turn to us because they know anefficient supply chain will make their operations run betterand more sustainably, and that a strategic relationship with
Prologis will create competitive advantage.
Our platform includes nine private and two public coinvestment vehicles which invest in high-quality logistics
real estate properties with specific risk profiles. Each vehicle
supports the company’s sustainability goals, values andinitiatives. Prologis is committed to alignment of interests,
proactive risk management and unwavering transparency.
We see growth and prosperity for our company inthe years ahead. Much of the world’s supply chain ispoised for modernization. The global consuming class is
growing. Long-term trends in urbanization, consumption
and e-commerce encourage demand for efficientlogistics facilities.
Above all else, Prologis is a place that cares. Teamwork,
courage and impact matter. Every day, at every level,
we work together to deliver the best possible outcomesfor our customers, communities, the environment andour business.

Prologis team members, Denver, Colorado.

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A Message from our CEO
Dear Stakeholders,
Welcome to our 2016 Sustainability Report.
Each year, this report reasserts our enduring commitment tosustainability and shows the progress we’ve made toward
our goals. We also share new ways we’ve learned to improvethe environment, the communities where we do business,
the well-being of our talented employees and the strength of
our corporate governance.
The details of our accomplishments change from year toyear as we embrace new technologies and learn from bestpractices, but our motivations and underlying assumptions
are consistent. Regardless of short-term shifts in policy,
macroeconomics or industry conditions, sustainability will
always be a core component of our long-term businessstrategy. Our approach to sustainability is holistic andsystemic. We build the principles of sustainability andresilience into our buildings, our processes and ourorganizational DNA.
Over the decades, the team at Prologis has learned that asingular focus on logistics real estate is a smart long-termbusiness decision. Around the world, powerful structural
factors are driving demand for our services—among themrising consumption, the rapid growth of e-commerce and anincreasing emphasis on supply chain efficiency.
When this consistent demand meets our well-located,
modern, highly functional supply, the results are compelling.
In 2016, Prologis delivered excellent financial and operating
outcomes, which are a testament to the hard work of ouremployees, whose concern for our customers and ourcommunities is unwavering.
As the industry continues to grow, we will continue to lead byfacilitating the movement of even greater volumes of goods
to consumers while minimizing impacts on the environment,
improving quality of life in the communities in which we
operate and promoting the welfare of our employees.

Continuous improvement
In 2016, we continued to collaborate with stakeholders
across the globe to make progress toward our ambitious
long-term goals.
After adding over 18 megawatts of solar capacity to ourroofs, we are on track toward our goal of 200 MW ofcapacity by 2020. In the Americas, every development
project we initiated last year was designed to comply withindustry sustainability standards. We continued to transition
to our new LED lighting standard and added more coolroofs, which help reduce greenhouse gas (GHG) emissions.
We approach sustainability with the mindset that we canalways do better than we did before. As an example, in2016 our Space for Good program, which helps nonprofitsand nongovernmental organizations (NGOs) in timesof crisis, provided 82 months of rent-free space to 12
nonprofit organizations totaling $900,000 of in-kind rent.
Although our occupancy rates are at record levels and wehave less vacant space than ever before, I believe we still
have the capacity to provide short-term help to even moreorganizations in need.
We are heartened by the many new technologies that enable
us to gain a deeper understanding of how our customers
use our facilities. We know that if we invest to improve thesustainability and resilience of our operations and thenscale those investments, we will deliver greater value forour customers and stronger returns for our shareholders. At
Prologis, we are taking steps to become more involved withtechnologies that can be applied to serve our customers andstrengthen our operations.

“Our approach tosustainability is holistic
and systemic. We build theprinciples of sustainability
and resilience into ourbuildings, our processes andour organizational DNA.”

Sustainability is built into our business strategy. We aim tolocate buildings near metropolitan areas to minimize thedistances people and goods must travel. We design our
offices and employee benefits programs to make our people
healthier, more engaged and more productive.

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Throughout our history, I have advocated for integrity,transparency and responsible stewardship of resources in
the real estate industry and beyond. We are deeply gratefulfor the recognition that industry and third-party groups
have given to our efforts. Prologis is a member of the Dow
Jones Sustainability Indices in both North America and Asia
Pacific. For the 14th straight year, Green Street Advisors
named Prologis the REIT industry’s corporate governanceleader—while I am pleased with our sustainability
achievements, I am particularly proud of this recognition.
At Prologis, we are convinced that taking a long-term viewon everything we do, from the impact our facilities have on
the environment to the quality of our corporate governance,translates into improved long-term financial performanceand investor returns. These efforts stand as guideposts tothe people who are joining Prologis today and who will leadit tomorrow, ensuring enduring excellence.

Sincerely,

Hamid R. Moghadam
Chairman and Chief Executive Officer

Prologis Park 70, Denver, Colorado.

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MATERIALSThe Year in Review from our Head of Sustainability
I am proud to report that 2016 was another year ofsignificant sustainability accomplishments, both in termsof the progress we made toward our sustainability goals
and the continued engagement with our stakeholders. I am
humbled by and grateful for the terrific work and dedicationof my colleagues at Prologis, who work tirelessly tominimize our impacts and engage in our communities.
Highlights of 2016 include expansion of ISO 14001
certification from Europe to North America, innovative
design in rainwater and stormwater harvesting,incorporating beehives into our facilities in France,
and a greater number of employees volunteering intheir communities. We also expanded our rooftop solar
installations, launched an LED mandate and increased
building certifications globally.
We have started to place more emphasis on quantifying
the economic, social and environmental benefits that result
from our sustainability investments and initiatives. We wereat the forefront of our industry in the development of asustainability impact economic model, and we look forward
to using the results to communicate with our stakeholders.
Although we have made great progress, there is always
more to do. As we work to achieve our goals andcommitments, we also need to keep looking for the next
innovative technologies and initiatives that will continue
to move the needle—for us and for our industry. We
envision what the industry will look like in 10 or 20 years,
and think systematically about resilience. How will we deal
effectively with challenges related to energy, transportation,water and waste? If we want our operations and people
to be maximally responsive to changes in the external
environment, we must anticipate the future needs of ouremployees and communities. Then, we must determine thenecessary design specifications in our buildings that willallow us to meet the expectations of all stakeholders. As
we consider design features, community engagement andwellness programs, we keep the health and well-being of
our employees—and of the customers inside our facilities—
front and center.

We will continue to monitor global risks and trends that
may affect our business and work diligently to ensure ourresilience in the face of complex and interrelated challenges
such as extreme weather events, water scarcity, waste
management, pollution control, demand for clean energy,transportation, air quality and health and well-being.
Our integrated approach to sustainability means that we
think broadly about our business and global impacts.
Prologis’ comprehensive environmental, social andgovernance (ESG) program exemplifies our efforts andour results.
I hope you enjoy our 2016 Sustainability Report, and I lookforward to reporting on our progress next year.

Sincerely,

Jeannie Renné-Malone, LEED AP BD+C,
Vice President, Sustainability“These efforts andaccomplishments reflect
our ongoing commitment tosustainability as well as thehard work and collaboration
across our departments
and regions.”6

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An Integrated Approach
At Prologis, sustainability is not a box to be checked.
Sustainability is embedded into our strategy, our operations
and our mindset. It is central to what we do.
Because we invest in logistics real estate for the long term,
we consider the impact of our activities on the communities
where we do business, the environment, our teammembers, customers, investors and suppliers. Our global
footprint gives us the ability—and the responsibility—toapproach sustainability in a systemic manner. Wherever we
conduct business, we do so responsibly and sustainably.
Our holistic approach to sustainability builds upon the
ESG framework. We integrate environmental, social andgovernance and ethics goals into our business strategies;
this allows us to deliver value for our stakeholders
across all ESG dimensions—from conserving energy toboosting human health and wellness, and from building
resilient operations to ensuring adherence to the highest
ethical standards. We believe our strong long-term
performance is directly attributable to our employees’
personal commitment to ensuring a better future for theircustomers, investors, colleagues and communities.

IMPACT Day 2016, Mexico City, Mexico.

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Three Complementary Lines of Business Drive Enduring Value
CURRENT REVENUEEFFICIENT FUNDING

FUTURE GROWTH

Real Estate Operations

Strategic Capital

Capital Deployment

Leading customer service to the world’s
best brands across 676 million square
feet in 20 countries

Access to Prologis’ world-class capabilities
in operations and deployment for
institutional investors

Expertise and a track record of excellencein development and value creation

Global Reach Creates
Perspective

Scale Augments
Efficiency

Engagement Drives
Sustainability

Partnership Ensures
Enduring Value

1,582

$66 B

165 MW

5,200+

2,382

676 MSF

233

700

owned, managed or under development

sustainable building certificationsin 16 countries

787

3,322

10,420153

6,600

employees in 20 countries working
in 14 languages

buildings in the Americas

buildings in Europe

buildings in Asia

in assets under management (AUM)
and $25B in third-party AUM

industrial properties

acres

+

of solar energy installations

customers

multi-site customers

97.1%

occupancy rate (global)

volunteer hours

82

79.8%

customer retention

months of rent-free space to
12 nonprofits

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Creating Sustainable Value for our Stakeholders
Our forward-looking approach to sustainable design,development, operations and culture delivers long-termvalue for our stakeholders.

98
100
4

% of employees completed

engagement survey versus
external benchmark of 70-80%%

Employees

Customersof employees haveaccess to career training
and education

business days per employee per
year to volunteer with charitableorganizations

165
18

MW

MW

233

building certifications

Environment

Communities

of total operating portfolio has
efficient lighting% more energy efficient byusing LED versus traditional
warehouse lighting%of total solar energy
generating capacityof solar installationsin 2016

78
35
36

%

of total operating portfolio has
cool or reflective roofing

10,420$1.6
82
M

volunteer hours to
local communities

in grants and donations to
support local causes andnonprofits

months of rent-free spaceprovided to local nonprofits

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Materiality and Stakeholder Engagement
At Prologis, dialogue is essential to understanding how
the complex forces at work in the world today interact with
one another and with our business. That’s why we actively
engage with our stakeholders, seek their input and opinions
and address any concerns they raise. Our definition of“stakeholders” is broad: any group that may directly impact
the company and its business operations, as well as those
who may be affected by our operations and actions.

GRI Principles for Defining Report Content

We connect to our stakeholders through a wide array ofchannels. The topics we engage on are similarly broad,encompassing the full range of environmental, social andgovernance issues material to our company.

For each of our four material topics, we cover business
operations, development activities and relevant
stakeholders. We manage these topics throughcommitments and organizational memberships, internalHR, ethics and sustainability policies, goal-setting, andinstilling in our employees a sense of personal andprofessional responsibility toward the communities where
they live and work. To maximize positive impact, we focus
on creating an energy-efficient, low-emissions property
portfolio, providing a positive work environment andon-the-job-training for our employees, and acting withintegrity in all our business transactions. We capture data
annually to measure changes and implement corrections
as needed.

Prologis team members are meaningfully engaged
in sustainability efforts every day—supporting ourcommunities, volunteering for those in need, working toensure employee engagement and wellness and leading theindustry in sustainable design.
Our formal materiality assessment process began in 2013.
Material topics were identified through a comprehensive
review of guidelines and sector supplements produced by
the Global Reporting Initiative’s (GRI) industry-related topics
and sustainability related surveys. In 2013, we conducted
extensive one-on-one interviews with senior leaders toelicit their observations, opinions and insights on material
topics. In 2015, we fielded a two-part materiality assessment
survey to refine the focus of our sustainability initiatives. We
combined results from these surveys with input gatheredfrom other stakeholder groups and engagement methods to
update our material topics lists. Our 2016 report focuses onthese four topics:

GRI Principles for Defining Report Content guided ourdecisions about what to include in this report. GRI provides
guidance on selecting material aspects and defining
boundaries to ensure our report includes the environmental,social and governance impacts most relevant to ourbusiness and stakeholders.

ETHICS AND
GOVERNANCE

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As part of the Carbon Disclosure Project (CDP)
Commit to Action campaign, Prologis committed to
the following:• Set a science-based target for corporate offices
in 2018• Set up audit processes for all activities that
influence climate policy• Implement strategic projects consistent withcommitment• Communicate with stakeholders

The basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations and other entities
that can affect period-over-period comparability is detailed
in our 2016 Annual Report and in our Form 10-K, which isfiled with the U.S. Securities and Exchange Commission.

• Energy• Emissions• Training and education• Anti-competitive behavior
Our materiality assessment process takes place every two
years. We plan to conduct our next assessment in 2017.

Prologis team members, Denver, Colorado.

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Stakeholder Priorities and Engagement
We actively engage with our stakeholders to define
priorities and establish modes of engagement that ensurealignment. Priorities listed encompass material topics
identified during our 2015 Materiality Assessment.

STAKEHOLDERSEXPECTATIONS& INTERESTSENGAGEMENT• Employee empowerment• Benefits and compensation• Workplace efficiencies

Global employee
engagement survey

Global employee
intranet, The Hub

Quarterly town hallmeetings

IMPACT Day, Prologis’
global day of service

CUSTOMERS••••

Relationships
Operational efficiency
Location
Supply chain efficiencies

Annual Customer
Advisory Board meetings
in the U.S. and Europe

Dedicated relationshipcontacts

Biannual customer
satisfaction surveys

One-on-one
conversations
with customers

High-quality assets
Income and diversification
Transparency
ESG issues

Quarterly earnings calls

INVESTORS••••

Investor forums andmeetings

Proprietary research
reports

Global Real Estate
Sustainability
Benchmark (GRESB)

Meetings before, during
and after developmentof properties

Employee volunteerism

COMMUNITIES• Job opportunities• Local partnerships• Involvement in the community• Infrastructure improvements

Donations to nonprofit
organizations• Compliance• Zoning• Permits and entitlements

Collaboration on projects

Regular meetings
during permitting
processes• Business relationships• Development opportunities

Project development

One-on-one meetingsand calls

EMPLOYEESGOVERNMENT

SUPPLIERS

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Awards and Recognition
Prologis has been widely recognized for our achievements
and for the way we do business. For the sixth straight
year, Prologis was selected as a component of the Dow
Jones Sustainability Index (DJSI), which tracks theleading sustainability-driven companies worldwide. We
are listed on both the North America and Asia Pacificindices. The company was ranked as one of Corporate
Knights’ Global 100 Most Sustainable Corporations in
the World for the eighth straight year and also received
the National Association of Real Estate Investment Trusts(NAREIT) Industrial Leader in the Light Award for the fifth
year running.

In the 2016 Global Real Estate Sustainability Benchmark(GRESB) survey, each of our nine entries—for Prologis,
Nippon Prologis REIT (NPR) and our funds in Europe
and the United States—earned a Green Star, the highest
distinction. Prologis was recognized for outstanding
performance in the areas of environmental stewardship,social responsibility and governance. We were also named
the sector leader in all the regions where we operate.

2016 GRESB INDUSTRIAL SECTORLEADER IN ALL OPERATING REGIONS
Fund

RegionRank andnumber of peers

NPR

Global Industrial

1st out of 51*

PEPFII

Europe

1st out of 17

PrologisNorth America

1st out of 11

NAIF

United States

1st out of 8

NPR

Asia

1st out of 6

ELV1

Europe

2nd out of 17

USLVUnited States

3rd out of 8

PTELF

Europe4th out of 17

USLF

United States

4th out of 8

• Newsweek: Top Green Companies in the U.S.

PELP

Europe5th out of 17• WorldatWork: Work-Life Seal of Distinction*NPR ranked first among all industrial respondents globally

2016 AWARDS• Colorado Environmental Leadership Program: Gold Level• Corporate Knights Global 100 Most Sustainable Corporations in the World• CR Magazine: Top 10 Industry Sector Best Corporate Citizens for the Financials/Insurance/Real Estate Sector• Dow Jones Sustainability Indices: North America and Asia Pacific• FTSE4Good Constituent• Green Street Advisors: REIT Industry’s Corporate Governance Leader• GRESB Green Stars: Sector leader in North America, Asia and Europe• Harvard Business Review: Best-Performing CEOs in the World – Hamid R. Moghadam• Inbound Logistics: G76 Green Supply Chain Partner• NAREIT: Industrial Leader in the Light Award

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Environmental
Stewardship
Sustainable by design
At Prologis, we understand that the logistics real estateindustry has a meaningful impact on the environment andcan contribute to a more sustainable global distribution
system. We design our properties and business processes tominimize our environmental impacts. Our buildings enable
our customers to operate more efficiently andcost-effectively.
We establish goals and objectives, focus on resilient design,invest in renewable energy and energy-efficient projects,
and work to reduce water usage. We use our scale to drive
environmental stewardship through our supply chain. Then,
we share our successes and the areas in which we still needto make progress by reporting our carbon footprint in atimely and transparent manner.

Solar installation at Prologis Park Kaiser, Fontana, California.

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Environmental Goals and Objectives
Prologis sets environmental goals and objectives basedon a combination of careful planning and thoroughunderstanding of the latest developments in technology
and climate science. We link our environmental goals andobjectives with our broader business goals and objectives,
focusing on high-quality, resilient design, innovations inenergy, energy efficiency, reducing water and waste, working
with our supply chains and measuring our carbon footprint.

Goal

Progress

Results100%

By December 31, 2016, we had made significant progress
toward our sustainability goals:of new development isdesigned with a goal ofcertification whererecognized sustainability
rating systems areavailable• We added 18 MW of solar installations, pushing our total
to 165 MW of total generating capacity and keeping us
on track to achieve 200 MW of solar capacity by 2020.

100%• 78 percent of our operating portfolio had energy-efficient
lighting as of the end of 2016, moving us closer to ourgoal of 100 percent.

energy-efficient lighting
across our operating
portfolio

87
MSF

70
54

MSF

MSF

2014*

2015

2016

233 projects
16 countries
78%
of our operating
portfolio has energy
efficient lighting(based on 97% of theportfolio surveyed)78%• We achieved our corporate GHG reduction goal of 20
percent by 2020 four years ahead of schedule.
We demonstrated our long-term dedication to climate action
by signing the CDP’s Commit to Action. In addition, we alignwith several of the UN Sustainable Development Goals.

87

MSF
of sustainable building
certifications

200MW

165MW

solar by 2020of total solar generating
capacity

82.5%

Goal 7: Ensure access to affordable, reliable, sustainable
and modern energy for all
Goal 9: Build resilient infrastructure, promote inclusive andsustainable industrialization and foster innovation
Goal 13: Take urgent action to combat climate change andits impacts
We will continue to set challenging and meaningfulsustainability goals for Prologis beyond 2020, and track andreport our performance.

20%

7,822

22%

MtCO2ereduction of corporate
GHG emissions by 2020
from a 2011 baseline

7,018
MtCO2e6,588

reduction in Scope 1
and 2 GHG emissions
since 2011

MtCO2e

2014*

2015

2016

*Chart shows 3 years of data; refer to prior reports for additional data.

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High-Quality, Resilient Design
TOTAL
Added
in 2016SFSQM
PROJECTS
MSF

Cumulative
since 2006

SQM
PROJECTS

3.3 M
308,592
18
19.9
1.85M
75

2.4M
227,401
3
26.4
2.46M
37

41,5553,861
4
1.3
122,17110

0.93
85,9683

Prologis is the global leader in logistics real estate, with
3,322 buildings comprising 676 million square feet (62.8
million square meters) of high-quality facilities in the world’s
most vibrant centers of commerce. Given the scale andscope of our operations, we have an opportunity to leadthe industry in planning, designing and constructing ourbuildings in a sustainable way. We’ve seized that opportunity
by pursuing sustainable building certifications, designingresilient buildings and placing new construction on
brownfield sites and infill land in dense urban areas.

Notable certifications in 2016 include:

Buildings constructed to the highest sustainability standards
are more efficient to operate, reducing costs for customers
and encouraging extended occupancy.

• All four buildings in Prologis Huizhou Huiyang Logistics
Center Phase 1 in Huizou, China were granted LEED
Silver certification.

Prologis has established an Environmental Management
System (EMS) for its European and North American
development management activities that is implemented,
maintained and continually improved in accordance with therequirements of ISO 14001:2004. Prologis’ UK and European
development management activities have been certified
under ISO 14001 since 2008, and in 2016, Prologis completed
ISO certification for its North American development
management activities. Starting in 2017, Japan will be
included in the global EMS and ISO 14001 certification.
In 2016, we added 17 MSF (1.6 MSQM) of building
certifications in accordance with internationally recognized
ratings systems across 54 projects; this brought our totalsustainable building certifications to 233 projects totaling
87 MSF (8.1 MSQM) in 16 countries.

• Nippon Prologis REIT, Inc. received Development Bank ofJapan’s highest commendation, a Five Star Green Building
Certification for three properties—Prologis Park Ichikawa 1,
Prologis Park Zama 1 and Prologis Park Zama 2.
• Prologis CCP Cajamar 1 near São Paulo became the firstlogistics park in Brazil to receive the Nucleo de Real
Estate’s coveted AAA rating. The facility also achieved
LEED Gold certification.

• Several projects in Mexico received LEED certification,
including Prologis Park Izcalli Building 4 in Cuautitlán,which achieved LEED Silver.

Resilient buildings
We recognize the potential impact of severe weather
and seismic activity on our facilities. To ensure we are aconsistently reliable link in our customers’ global supply
chains, Prologis has led the industry in innovation designed
to ensure the resilience of our buildings. In addition to being
able to withstand traumatic events more effectively, resilient
facilities reduce the cost and waste associated with damage
and reconstruction.

11.4M
1.06M
29
38.8
3.6 M
108

17.3M
1.6M
54
87.3
8.1M
233

When severe hail storms caused extensive damage toroofs in Juárez and San Antonio in 2015 and 2016, ourteams’ swift response minimized operational downtime forour customers. From our experiences in Juárez and San
Antonio, we gained new insights into roof performance,
which we have applied to our construction specifications.
We maintain detailed emergency response andcommunications plans for each building in our global
portfolio, and we have construction crews and supplies on
standby in areas prone to natural hazards. In Japan, ourbuildings have seismic isolation systems that function as
shock absorbers during earthquakes. In addition, our Japanbuildings include early-warning systems and backup energy
and water supplies.

Brownfield and infill
Our location decisions are driven primarily by whether they
can help our customers streamline their supply chains and run
their businesses more efficiently. This often leads us to build
on brownfield and infill locations, which can shorten delivery
routes and help drive local economic development. We target
buildings and development opportunities in locations close
to major transportation hubs, such as ports, airports, railways
and highways, and seek sites in busy centers of commerce andconsumption. We are focused on remediating environmental
contamination, putting abandoned land to higher and better
use and enhancing and/or building new infrastructure.

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Innovations in Energy
The technological revolution surrounding the production,
consumption, storage and measurement of energy gives
Prologis opportunities to innovate and scale sustainable
solutions. We continue to assess technologies to measure
our consumption, explore battery storage opportunities andinstall solar panels on our rooftops around the world.

Consumption monitoring
Where we have access to whole-building data, we enterand track energy, GHG emissions and water and waste
through the Urban Land Institute (ULI) Greenprint Center
for Building Performance’s environmental management
platform: Measurabl. We monitor energy consumption
to better understand our energy-related GHG emissions
and to work toward our goal of minimizing our impacts
on climate change. Prologis reported 2016 energy datafor 743 properties, including 416 properties for which we
had consistent year-over-year information. Energy use
increased 4.9 percent, which in turn increased emissions
by 2.1 percent from 361,988 to 369,645 MtCO2e. Increases
in occupancy from 95.6 percent in 2015 to 97.4 percent
in 2016, and a change in customer mix, likely led to thisincrease. (Data extracted May 1, 2017, from the Measurabl
Environmental Management Platform.)

Battery storage
An established leader in rooftop solar, Prologis continues
to look for ways to use our properties and resources tohelp contribute to a low-carbon future. Most recently,
Prologis has been investigating battery storage systems as apromising clean energy innovation. Battery storage systems
have the potential to deliver substantial benefits to ourcustomers, investors and the environment. We are targeting2017 to implement our first battery storage project.

Solar power
As the price of solar installations continues to fall, Prologis
is demonstrating that clean, renewable power can be an
important component of an efficient business focused onserving customers and communities. In 2016, Prologis
added 18 megawatts of solar capacity to our portfolio,
bringing the total to 165 MW in nine countries. Together,
these installations produce enough emissions-free energy to
power approximately 24,500 average-sized homes annually.
Our efforts have put us on track to meet—and surpass—ourgoal of 200 MW of solar across our portfolio by 2020.

Solar
footprint

Equivalent homes
powered per
region per year*

North
America

112MW

11,836

Asia

32MW

6,294

Europe

21MW

6,354

Total

165 MW

24,484

Region18 MW

increase in solar footprint from 2015 to 2016

112%

increase in generating capacity from 2011-2016

83 MW

increase in generating capacity from 2011-2016
165MW

78MW

2011

2016

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Energy Efficiency
Efficient lighting
A principal driver of electricity consumption in a warehousecomes from lighting. That means the advent of affordable,highly efficient LED bulbs gives us an opportunity to drive
sustainability at scale. While most of our facilities alreadyhave efficient fluorescent lighting, in early 2016 Prologis
made LED lighting standard in all new development projects
and lighting retrofits. By the end of the year, 78 percent
of our global operating portfolio had efficient lighting,up from 73 percent at the end of 2015. We estimate our
global portfolio to be 20 percent more lighting-efficientper operating hour than prevailing U.S. codes dictate, andwe pass associated savings on to our customers. These
efforts improve operational efficiency for our customers
and diminish environmental impacts and the effects ofclimate change.
Our LED specification and procurement program delivers
high-quality, flexible lighting solutions for Prologis andour customers that materially reduce electricity andmaintenance costs. We leverage Prologis’ scale to securefavorable pricing from suppliers, making efficient lighting
even more sustainable.

Cool roofs
Installing reflective roofing materials, known as cool roofs,
is a proven way to reduce energy consumption insidebuildings. The white, reflective surface of a cool roof isdesigned to reflect more sunlight and absorb less heat thana standard roof. Because cool roofs lessen the intensity of
the urban heat island effect—the warming of the air that
occurs as the sun’s heat is absorbed by roads, buildings androoftops—they benefit the communities in which we operateby helping to lower ambient temperatures.

LED STANDARD: A COMPETITIVE ADVANTAGE
By moving to an LED standard, Prologis is leading the industry and providing the benefits enumerated below.

Minimum

35

5-7x

%

more energy-efficient

longer life

• At least 35% more energy-efficientthan traditional warehouse lighting• Enhanced sensing andcontrols can increaseenergy savings• Long fixture life
with low light-level
degradation• Significant
maintenance savings• Exterior LEDs
reduce common area
electricity costs• Improved controllability
and instant on-off-on• Better light quality
and color
rendition
Rae imillac ilicitation
corem
ditiam debis
imporpo reptionse commolo repuda• Longer, better
voluptas perundis product warranties• Reduced electricalinfrastructure costs• Lowered radiated heat

• Fixtures free oflead and mercury• Reduced GHG emissions

Customers

Environment

Prologis

Communities

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Water and Waste
Logistics facilities do not consume much water comparedwith many other types of buildings. Nor do they produce
large streams of waste. Even so, we recognize theenvironmental and business gains that can be realized
by adopting an integrated approach to how we use andmanage resources. Where possible, we design landscapingthat doesn’t require much water or which captures andrecycles run-off. Many of our buildings are equipped withwater-saving features like low-flow toilets, motion-activatedfaucets and systems to capture rainwater for irrigation.
Minimizing our use of materials and maximizing thequantity of materials we recycle is an important part of ourculture. During construction, we set up dedicated areas forcollection and storage of recyclable materials and divert
waste from landfills. We aim to use materials that are either
recycled or which contain a high level of recycled content.

On average, our LEED-certified projects have awater reduction rate of 35 percent and a waste
diversion rate of 75 percent. These projects
diverted more than 125 tons of waste fromlandfills in 2016.

Prologis Park Hamburg Hausbruch, Hamburg, Germany.

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Operations and Supply Chain
Large global organizations like Prologis can use their scale
to drive efficiencies. We apply that logic to integrating
sustainability into our operations and supply chain. When
we develop new facilities, we take care to ensure that thematerials and methods used produce buildings that arefunctional and visually appealing to our customers andexemplify our commitment to sustainability. Whether we areusing locally sourced materials in construction or promoting
sustainable behaviors in our offices, Prologis drives
sustainability best practices across our entire organizationand through our vendor and supplier networks.

Buying local
We typically ensure that the two largest components ofour new facilities, concrete and steel, are purchased fromlocal suppliers. Whether we are building in China, Brazil
or Belgium, we strive to work with local and regional
contractors. Partnering with local businesses not only
enables us to invest in the communities in which we operate
but also reduces shipping and transportation costs and theirassociated environmental impacts.

Goods aredesigned andmanufactured

GRI
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CASE STUDY: LUXEMBOURG

Office sustainability programs
We are implementing strategies for reducing GHG
emissions across our business operations—from theenergy consumed in our offices to the way we travel towork. We take many of our cues from our employees. Oursustainability programs are designed to engage employees
in sustainable practices through the course of their daily
work. Employees representing each of our offices globallyinteract regularly with our sustainability team to propagate
best practices and make environmental stewardship aneveryday event.

Prologis’ supply chain comprises
professionals, contractors and suppliers who
support our development and operations.

Finished items
are transported to
distribution centers

ETHICS AND
GOVERNANCE

Pallets and parcels
are readied for
distribution

Employees engage to improve
environmental impacts
The actions of our Luxembourg team highlightthe positive impact of our approach. In November
2016, the team finished replacing all the lights
in the Luxembourg office with LEDs, reducing
electricity consumption by 20 percent. A coffee
machine that used individual plastic pods
was swapped out for one that grinds wholebeans, eliminating waste and saving money.
Several older printers were replaced by asingle machine that can print on both sides ofthe paper. Employees are encouraged to use
public transportation when traveling from the
Luxembourg office to the airport. While eachof these efforts is small, they add up to makea difference. If they can be replicated at scale,like our LED lighting initiative, they will make adifference globally.

Goods are transported
to retailers andconsumers

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Corporate Carbon Footprint Reporting
In 2016, we exceeded our corporate GHG
reduction goal ahead of the 2020 deadline.
Prologis has been reporting our corporate GHG inventory
annually since 2006 to The Climate Registry and to CDP.
These widely recognized, voluntary and leading GHG
registries help businesses measure, track and report annual
GHG emissions. We understand our impacts in the broader
context of sustainability and their direct causal impact on
climate change. We have made several climate change
related commitments, including our goal to reduce ourcorporate GHG emissions 20 percent by 2020 from a 2011baseline. In addition, we are a signatory to CDP’s Commit
to Action.
In 2016, we met and exceeded our GHG reduction goal
ahead of the 2020 deadline. Our 2011 baseline included
fewer emission sources, and therefore we track ouremission reduction goal based on the most complete data
since that year (Scope 1 and Scope 2).
To measure our progress, we calculate annual GHG
emissions for our corporate and regional offices as definedby the GHG Protocol:
1. Natural gas
2. Refrigerants

We turn to carbon offset projects and Renewable Energy
Credits (RECs) only after we have done everything we can toreduce our GHG emissions. We recognize the importance of
these programs to make up for impacts we cannot currently
mitigate. Therefore, we offset 100 percent of our 2016 Scope
1 GHG emissions with carbon offsets from the JB Huntcarbon offset project, which is industry-relevant because its
mandate is to improve the efficiency of intermodal freighttransport. We also purchased RECs through our partner,
Renewable Choice Energy, to offset 97 percent of our 2016
purchased electricity from locally sourced projects in eachregion where our corporate offices are located. It should
be noted that market-based emissions take into accountpurchased RECs, while location-based emissions do not.

2014-2015

2015-2016

MtCO2e

MtCO2eScope 1

-197

+227

Scope 2-607

MB: -1970
LB: -656

Scope 3

-1,999

MB: +340
LB: +461

Total-2,803

MB: -1402
LB: +32

MtCO2e*/FTE

-3

0

MMARY

• Scope 1: Direct emissions from sources owned orcontrolled by Prologis• Scope 2: Indirect emissions associated with
consumption of purchased electricity and gas• Scope 3: All other indirect emissions not includedin Scope 2
5,361

MB=market-based, LB=location-based

2,461
Total

17,6562014

MtCO2e*/FTE

12
7,835

5,361

2,264

Total

14,863
MtCO2e*/FTE

GHG CHANGES

6. Employee commute

2,461

9,834

2015

4. Purchased electricity

7. Electricity consumption from data centers

GHG EMISSIONS SUMMARY

For the past two years, we have partnered with Anthesis
Mosaic to calculate our carbon footprint and track annual
data. The results of our 2016 GHG Inventory reveal a0.22 percent increase in location-based emissions from2015 to 2016. Scope 1 emissions increased 10 percent,while Scope 2 emissions decreased 14 percent. In 2016,
Scope 3 emissions increased due to addition of data centeremissions to our inventory and variability of response to
our employee commute survey from the previous year.

3. Vehicle fleet

5. Business travel

We report our operational carbon footprint to the CDP, and
our Scope 1, 2 and 3 emissions are verified independently
by LRQA. See page 31 for our Assurance Statement.

9

8,297

4,754

2,491

Total

2016

14,885
MtCO2e*/FTE

9

4,098
Scope 1
Scope 2
Scope 3
*Metric Tons ofCarbon Emissions(MtCO2e)20

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Social Responsibility
At Prologis, our vision of social responsibility extends
beyond the four walls of our buildings. While ourprimary business is helping our customers movegoods around the world, we don’t lose sight of thefact that we are consistently interacting with people.
Our commitment to social responsibility extends
to all our stakeholders—employees, customers,
communities, suppliers and investors. We strive to
be a good neighbor and endeavor to strengthen thecommunities where we work and live. Our employees
demonstrate their personal commitment by putting
time and resources into organizations that promote
educational, environmental and social well-being.

IMPACT DAY 2016, Beijing, China.

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People at Prologis

ETHICS AND
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CASE STUDY: JAPANJapan culture initiative

Our employees are the key to our success. Every employee
at every level in every location plays a vital role in creating
value for our stakeholders. The actions of each of these
individuals bring our sustainability goals to fruition.
We promote diversity and reward and recognize employees
for their skills, commitment and performance. Around theworld, we invest in programs and initiatives that encourage
our team members not only to develop but also to thrive—
personally and professionally.
Prologis is a global company. Our workplaces are inclusive,
open and diverse. We seek to create an environment inwhich every employee feels they can contribute freely tothe success of the organization. As an equal opportunity
employer, our goal is consistent and fair policies that
respect cultural differences, recognize performance basedon merit and reward team members for their contributions.

Diversity and inclusion
To ensure enduring excellence, Prologis is focused on
creating an environment that attracts, develops and retains
the best available talent.
In 2014, Prologis launched Breakthrough, an internal
network designed to attract, advance and retain womenacross the globe with leadership training, mentoring,

networking and talent development. Since Breakthrough’s
launch, Prologis has updated its parental leave policy in
the U.S. and deployed unconscious bias training globally.
In 2016, the San Francisco Department on the Status of
Women, through its Gender Equality Challenge, recognized
Breakthrough as a promising practice demonstrating
positive impact.

In June 2016, 117 associates in Japan gathered at a
newly completed facility as the culmination of a twoyear effort to redefine and interpret the company’s
core values in a way that would align and resonate
with Japanese language and culture.

Building on Breakthrough’s strength, Prologis has expanded
its diversity and inclusion efforts to focus on building aculture of belonging in which all employees are engaged
and comfortable expressing their individuality regardlessof race, ethnicity, gender, age, sexual orientation, socioeconomic status, religious beliefs or physical ability, andtalent employed mirrors the communities we serve. Actions
include broadening organization-wide understanding of thebusiness case for diversity and inclusion, ensuring a diverse
slate and interview panel for every open position, andincreasing internal mobility to develop existing talent.
To build a more diverse talent pipeline, Prologis partners
with Urban Land Institute’s Women’s Leadership Initiative;
the Forte Foundation, a non-profit consortium of leading
companies and business schools; Direct Employers
Association, a non-profit that connects employers withdiverse talent, and the Professional Diversity Network,
which pairs diverse members with prospective employers.

GLOBAL WORKFORCE IN 2016
By Region

By Category (Permanent)

Americas

EuropeAsia

Full-TimePart-Time

Total Employees

Women

475

201

115

772

19

791

Men

456

176

159

789

2

791

*Data has been compiled by Human Resources. Please note that interns are
not included in this count to be consistent with other annual reports/surveys

1582
Prologis team members, Japan.

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Employee Volunteerism and Corporate Giving
A spirit of volunteerism and corporate giving is deeply
engrained in Prologis’ culture.

Employee volunteer program
Every year, each employee is allocated four business days
to volunteer: two at company-sponsored events, one at anorganization of the employee’s choice and one at IMPACT
Day. IMPACT Day has evolved into a signature event. Every
year, on a Friday in May, the entire Prologis community
spends a full day volunteering with charities in our local
communities. From Shanghai to Denver, from Mexico City
to Prague, our team members look forward to this day
dedicated to giving back.

Prologis Foundation
The Prologis Foundation, established in 2001, provides
financial support to charitable organizations focusedon education, the environment and human welfare. The
foundation has a Matching Gift program to match employee
contributions to 501(c)(3) nonprofit organizations, schools
and universities, and a Dollars for Doers program to match
employees’ personal donations of time with funds from thePrologis Foundation.

Space for Good

Highlights for 2016
• Prologis and the Prologis Foundation made $1.6
million in donations and matching gifts to nonprofit
organizations working in the areas of education, humanwelfare and disaster relief.
• On IMPACT Day, Prologis employees volunteered 7,000
hours to benefit 60 different nonprofit organizations.
Employees volunteered an additional 3,420 hours tovarious organizations throughout the year.
• Our Space for Good program, which provides
warehouse space at a free or reduced rental rate
to nonprofits and nongovernmental organizations(NGOs), gave 82 months of rent-free space to 12 nonprofits, totaling $900,000 in donated rent.

New Jersey team paints the
US map for kids at Patterson,
New Jersey Public School #8.

Denver team builds hiking
trails for Outdoor Colorado.

IMPACT DAY:GLOBAL DAY OF SERVICE

1,400

7,000

60

Employees
volunteered

Total
volunteer hours

Nonprofit
organizations
benefitedTokyo team member plants atree at a local nature preserve.

Prologis developed Space for Good to provide temporary
space in our distribution facilities rent-free to help charitableorganizations address seasonal and short-term needs
and provide disaster relief. Space for Good demonstrates
Prologis’ commitment to corporate citizenship andwillingness to form meaningful public/private partnerships
on behalf of our local communities.

San Antonio team landscaping
at the Mitchell Audubon
Center.

Las Vegas team cleans up
Red Rock Canyon National
Conservation Area.

San Antonio team member
makes a friend at the Mitchell
Lake Audubon Center.

UK Solihull team works on aplayground at Exhall Grange
School.

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Employee Benefits and Well-Being
At Prologis, we encourage our employees to bring theirwhole selves to work, and to view the office as a place
where they can develop as people and professionals. To
that end, we invest in initiatives that encourage learningand development, offer competitive and progressive
pay and benefits, and support employee wellness
programs. Our culture promotes diversity of thought,
and we are committed to developing an engaged andresilient workforce that is well-positioned to ensure ourcontinued growth.
We are proud that WorldatWork awarded Prologis its
Work-Life 2016 Seal of Distinction in recognition of ourcomprehensive human resources efforts.

Learning and development
We believe that investing in our employees’ education anddevelopment isn’t just a good human resources policy, it’sa good business policy. When employees are equippedwith deeper and broader skills and have access to learning
opportunities, they are more in tune with the complex andinterconnected issues affecting our business and the greatercommunity. Our lifelong learning programs offer courses
of interest and benefit to our employees, including career
enrichment, talent management, leadership development
and real estate and technical training. We encourage
employees to pursue lateral assignments so they cangain broader exposure to the business. Employees areencouraged to seek out formal mentoring relationships andexternal training, for which they have an annual budget.
Prologis is committed to the professional growth of all
employees. In collaboration with employees, managers andhuman resources business partners, Prologis’ Learning andDevelopment team has developed an extensive curriculum
focused on five areas:

1. Career enrichment:
Helps all employees build basic business competencies
critical to success, such as presentation skills, effective
communication and time management.
2. HR and talent management:
Focuses on topics that include performance
management, compliance with local laws andonboarding.

ETHICS AND
GOVERNANCE

GRI
MATERIALS

Benefits
Our comprehensive benefits package is designed
to improve quality of life, financial security and thebalance of work/home responsibilities.

Standard benefits, which may vary byregion, include:• Medical, dental and vision insurance• Paid time off

3. Leadership development:
Prepares future leaders, expands overall leadershipcapacity and cultivates leadership skills inhigh-potential employees.

• Flexible spending accounts

4. Real estate training:
Gives all employees the opportunity to better
understand our industry and ensures ongoingenrichment for those involved in real estate operations​.

• Wellness program

5. Systems and technical:
Facilitates understanding of core systems such as
Microsoft Office, SuccessFactors and PeopleSoft.

• Life and disability benefits

Training is delivered through a mix of live face-to-faceclasses hosted at Prologis offices around the world, live
virtual classes and a library of self-paced online classes
available anytime and anywhere.

• Employee assistance program• Health savings account• Adoption assistance• Telemedicine• Parental leave• Retirement plan with employer matching• Continuing education and reimbursement

Prologis uses an outplacement firm to provide transition
assistance to help ensure the continued employability
and manage career endings for retiring or terminatedemployees. These services include but are not limited tojob search essentials, career coaching, job leads, market
connections and interviewing and networking techniques.

Compensation and equal pay
Prologis employees receive a benefits package that
includes time off and holiday pay, health coverage,
retirement savings plans, life and disability insurance,
continuing education opportunities and wellness programs.
Compensation for women and men in comparable roles at
Prologis is consistent.

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Wellness initiatives
Prologis believes that promoting health and well-being
encourages higher productivity at work while maintaining
a happy, healthy lifestyle outside the office. We incorporate
wellness into the design and operations of our facilities
with features such as workout rooms, ergonomic desks,
acoustical and indoor air quality comfort controls, green
cleaning supplies and healthy snacks.
Prologis sponsors and participates in charitable events andholds company-wide health challenges. The annual Healthy
Steps Challenge encourages colleagues across the globe
to compete to take 10,000 steps per day. Pedometers are
distributed to every participant to track progress, and prizes
are awarded to the team with the most steps.
Prologis partners with Viverae, a leading healthmanagement services provider, to give employees the latest
health and wellness content, educational programs andan online community for motivation. A health assessment
and biometric screening assess participating employees’
lifestyle and potential health risks. Individual counselors
help employees maintain or improve health and well-being.
Whether an employee’s goal is an improved health score,
more energy, weight loss, stress reduction or an improved
diet, Activate, the Prologis wellness program, has options
that can help.

303

M
steps walked by 515 Prologis employees during
the company's 2016 Healthy Steps Challenge

10,506average number of steps walked per day by
employees during the eight-week Healthy
Steps Challenge in 2016

In 2016, Global Real Estate Sustainability Benchmark(GRESB) piloted a module that measures real estatecompanies on their leadership and actions related to thehealth and well-being of their employees, customers andsurrounding communities. Prologis ranked first amongindustrial real estate respondents.

Prologis team members, Denver, Colorado.

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Ethics and Governance
At Prologis, building an organization that has consistentcharacter and integrity everywhere we operate is a bedrock
principle. Prologis is committed to upholding the highest
ethical standards and compliance in all business dealings.
Our governance structure includes built-in checks andbalances to ensure accountability and transparency. The
following sections describe how we ensure transparency
and openness of reporting, and manage risks associatedwith corruption, bribery and non-compliance.

Prologis team members, Denver, Colorado.

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Acting with Integrity
Our corporate governance practices create a culture of
enduring and uncompromising integrity. We maintainstrong oversight, collect and share vital information withexternal stakeholders and devote significant resources
to ensure we comply with all relevant laws, regulations
and standards. We take a comprehensive and proactive
approach to risk management, and are grateful that ourefforts have been recognized by third parties.

Risk management
At Prologis, risk management isn’t simply a corporate
function. It’s a mentality that is woven into every aspectof our operations. We proactively manage financial,
operational, organizational, external and macroeconomic
risks through a comprehensive risk oversight framework,
which includes:• Board engagement with executive and risk management
teams including risk assessment mapping and oneon-one interviews between each director and our risk
management team.
• Executive management committee meetings focused on
strategic risks.
• A structured approach to capital deployment vetted
through weekly investment committee meetings.
• One of the strongest balance sheets in the REIT industry,achieved by lowering our financial risk and foreign
currency exposure.
• Rigorous internal and third-party audits that assess thecompany’s controls and procedures.
• Centralized team dedicated to managing risk globallyand closely engaged with Prologis teams at theindividual market level.

Board oversight
Our board comprises 10 annually elected members, nineof whom are independent, including our lead director.
Oversight of sustainability resides with the board’s
Governance and Nomination Committee.

For a complete description of Prologis’ corporate
governance practices and approach to risk management,
please refer to our 2016 Proxy Statement and 10-K or visit
the Investor Relations page on our corporate website.

our carbon footprint), the Dow Jones Sustainability Indices(DJSI) and the Global Real Estate Sustainability Benchmark(GRESB). In addition, we provide comprehensive public
disclosures through our annual Sustainability Report.

Proxy access

Global compliance

We balance the interests of shareholders, directors andmanagement, ensuring that shareholders’ considerations
are fully and consistently represented. In 2016, we adopted
proxy access which gives shareholders the right to propose
director candidates alongside those nominated by theboard. We are using the 3/3/20/20 market standard wherein agroup of up to 20 shareholders who have held three percent
of Prologis stock for three years or more may nominate up
to 20 percent of the board, which is two directors.

We conduct business fairly, in an ethical manner that is infull compliance with all laws and regulations. The Prologis
board of directors has adopted a Code of Ethics andBusiness Conduct and a Global Anti-Corruption and Foreign
Corrupt Practices Act (FCPA) Policy, which is applicable to all
employees and the board. When each new employee joins
Prologis, they read and sign their acknowledgment andacceptance of our Code of Ethics and Business Conduct. Our
Code of Ethics and Business Conduct and our Global AntiCorruption and FCPA policies have been translated into 16
languages and posted on our intranet to ensure that these
documents are well-understood by Prologis employees
around the world. For more information, see the 2016
Prologis Annual Report and 2016 Prologis Proxy Statement.

Proxy recognition
Prologis was a finalist for the best proxy statement at theninth annual Corporate Secretary Corporate GovernanceAwards in November of 2016. This national recognition
for strong governance was the culmination of an initiativethat started with outreach to Prologis shareholders andresulted in carefully orchestrated improvements that further
strengthened the Prologis proxy statement.

Executive compensation
We continue our focus on industry-leading and responsible
compensation practices, assessing and strengthening
our programs in response to shareholder feedback. In
2016, we amended our outperformance plan to make its
performance hurdles even more rigorous. We also added
a provision to restrict the sale of all equity received under
our Prologis Outperformance Plan for three years after
the end of the applicable three-year performance period.
These adjustments serve to further strengthen alignment ofmanagement and shareholder interests.

Top Marks
In 2016, for the 14th straight year, Green Street
Advisors, the leading independent REIT research
and advisory firm, recognized Prologis’ corporate
governance efforts. In every year of its publishedrankings, Green Street has placed Prologis at the topof its list for best corporate governance in the industry.

External reporting
We report regularly on environmental, social andgovernance issues to a number of widely recognizedsustainability reporting organizations, including CDP (for27

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Standards and integrity

Supply chain integrity

On Climate Change

Corruption is an obstacle to trade and undermines fairbusiness practices. Prologis has a zero-tolerance policy
for bribery and corruption. We act with professionalism,
fairness and integrity in all our business dealings andrelationships. Our employees and board members receive
regular training on our Code of Ethics and BusinessConduct, information security, global fraud prevention and
the Global Anti-Corruption and FCPA policy to ensure theyremain current on ethical issues and corporate expectations.

Prologis practices vigilant environmental stewardship andcommits to providing employees a safe and healthy working
environment. We expect our suppliers to adhere to thesesame principles. In 2013, we launched our Supplier Codeof Conduct, which has been translated into four languages.
We will continue to develop systems for monitoring andreviewing supplier adherence to the code of conduct andreport our findings.

The effects of climate change are already evident inmany of our regions and communities. For Prologis,
the effects aren’t theoretical. Extreme weather events,
including storms, floods, droughts and wildfires,
have the potential to impact our facilities anddisrupt the global supply chains of which we are a
crucial component.

In 2016, Prologis received three inquiries directly throughour internal Ethics Helpline, a confidential third-partyadministered hotline for reporting suspected Code of
Ethics and Business Conduct violations. Prologis received
an additional 11 inquiries for suspected violations throughregular communication channels with management. Of
these 14 inquires, eight were unsubstantiated. For each of
the six substantiated inquiries, appropriate action was taken
and the matters are considered largely resolved. We had nobreaches of antitrust in 2016.

Human rights, affirmative action andequal opportunity
Prologis is committed to protecting human rights within
the company’s sphere of influence. To that end, Prologis has
adopted responsible workplace practices and endeavors
to conduct its business operations in a manner that is
free from complicity in human rights abuses. In particular,
Prologis’ core values and culture of integrity (I), mentorship(M), passion (P), accountability (A), courage (C) andteamwork (T)—IMPACT—embody a commitment to ethicalbusiness practices and strong corporate citizenship. It is
Prologis’ policy and practice to provide equal employment
opportunities to all individuals free of discrimination
regardless of race, color, creed, religion, sexual orientation,
marital status, national origin or ancestry, sex, age, physicalor mental disability, medical condition or veteran status.

Prologis general contractors globally are required toprovide accident and incident data, plus reports on any
workplace safety or environmental violations as part ofthe prequalification process for working with Prologis. We
plan to improve our processes in the future by automatingprequalification documentation for easier access to data andmore consistent tracking of suppliers.

We must be prepared not only to ensure the long-term
viability of our facilities, but also to comply with andanticipate changing standards, rules and regulationsin the many jurisdictions in which we operate. As partof our holistic, systemic efforts to measure, anticipate
and reduce risk across our operations, we proactively
assess and mitigate the impact of climate change.

Prologis works with Avetta, a global supply chain risk
management auditor. This partnership is designed to ensure
our suppliers meet all of Prologis’ requirements, including
insurance coverage, safety programs, financial stability,
quality systems, terms and conditions, sustainability,
Supplier Code of Conduct and regulatory compliance. The
Avetta platform ensures transparent, effective supply chain
management through a rigorous prequalification process toimprove supplier performance, validate safety data, increase
operational efficiencies and reduce risk.

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GRI Materials
About this report
Prologis’ 2016 Sustainability Report provides an overview
of our company’s environmental, social and governanceinitiatives and summarizes the progress we’ve made towardmeeting our goals and commitments across our portfolio
and operations. The report is global in scope and addresses
our 2016 activities in the Americas, Europe and Asia.
This report marks our tenth consecutive year of reporting to
Global Reporting Intiative’s (GRI) Sustainability Reporting
Guidelines and the Construction and Real Estate (CRE)
Sector Disclosures. This is our first year reporting inaccordance with the GRI Standards—Core option. A GRI
Standards Content Index is included on page 32, andspecific disclosures are included throughout the report.
Information and data for years prior to 2016 have been
included where available and relevant.

This report has been externally assured by Lloyd’s Register
Quality Assurance, Inc. (LRQA) using the AA1000 AssuranceStandard (2008). LRQA interviewed members of the Prologis
executive committee and senior management to ensurethat this report complies with the principles of inclusivity,
materiality and responsiveness. LRQA also assessed
the reliability of specified sustainability performance
information and verified our 2016 GHG inventory using theWorld Resource Institute and World Business Council on
Sustainable Development Greenhouse Gas Protocol. Our
Assurance Statement is found on page 31.

Prologis has applied GRI’s Reporting Principles for Defining
Report Content. These principles include GRI’s guidanceon defining material aspects and boundaries to identify
the most relevant environmental, social and governanceimpacts as they pertain to our business and stakeholders.
The basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations and other entities
that can affect period-over-period comparability is detailed
in our 2016 Annual Report and in our Form 10-K, which isfiled with the U.S. Securities and Exchange Commission
and is also available in the SEC Filings section of Prologis’
website at http://ir.prologis.com/financial-results/sec-filings.
We provide data for our corporate operations and for thefacilities we own and lease to our customers. Limitations
include occupant operations on Prologis properties.
Although we strive to work with our customers to enhancetheir sustainability measures, their business activities
fall outside the scope of Prologis’ operational control
and thus beyond the boundary of our performance-datareporting. In addition, we do not report on the businessactivities of entities over which we do not exercise direct
operational control, including our co-investment and joint
venture partners, service providers, customers, contractors,
suppliers and vendors.

Prologis team members, Denver, Colorado.

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Memberships and Associations• Asia Pacific Real Estate Association (APREA)• Institute of Real Estate Management (IREM)• Society of Industrial & Office Realtors (SIOR)• Association of Industrial Real Estate Brokers (AIRE)• International Facility Management Association (IFMA)• Boston College Center for Corporate Citizenship (BCCCC)• Japan Institution of Logistics Systems• The European Association for Investors in Non-Listed
Real Estate Vehicles (INREV)• Building Owners and Managers Association (BOMA)• National Association of Industrial & Office Parks (NAIOP)• U.S. Department of Energy’s Better Buildings Challenge
International Facility• Council on Foundations (COF)• National Association of Real Estate Investment Trusts(NAREIT)• U.S. Green Building Council (USGBC)• German Association for Sustainable Construction(DGNB)• National Brownfield Association• Global Real Estate Sustainability Benchmark (GRESB)• Pension Real Estate Association (PREA)• Global Reporting Initiative (GRI) Organizational
Stakeholder• Real Estate Roundtable (RER)• ULI Greenprint Center for Building Performance• Urban Land Institute (ULI)• Retail Industry Leaders Association (RILA)• Institute for Sustainability UK Green Building Council(UKGBC)30

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

Report verification - LRQA’s
approach summary
Lloyd’s Register Quality Assurance (LRQA) was
commissioned by Prologis to provide independent
assurance on its 2016 Sustainability Report to a moderatelevel of assurance and materiality of the professional
judgment of the verifier using AccountAbility’s
AA1000AS (2008).
LRQA’s assurance engagements are carried out inaccordance with our verification procedure. The following
tasks were undertaken as part of the evidence gathering
process for this assurance engagement:• Assessing Prologis’ approach to stakeholder
engagement to confirm that issues raised bystakeholders were captured correctly.
• Reviewing Prologis’ process for identifying anddetermining material issues to confirm that the rightissues were included in their Report.
• Auditing Prologis’ data management systems to confirm
that there were no significant errors, omissions or misstatements in the Report.

GHG verification - LRQA’s
approach summary
Our verification has been conducted in accordance with ISO
14064–3:2006, ‘Specification with guidance for validationand verification of GHG assertions’ to provide reasonableassurance that direct and indirect GHG emissions data andlimited assurance for the other indirect GHG emissions
data as presented in the Report have been prepared inconformance with the World Resources Institute / World
Business Council for Sustainable Development Greenhouse
Gas Protocol: A corporate accounting and reporting
standard, revised edition (otherwise referred to as the WRI/WBCSD Protocol).
The following tasks were undertaken as part of the evidence
gathering process for this verification engagement:• Visiting Prologis’ operational headquarters in Denver,
Colorado, United States, and the Solihull office, United
Kingdom, and reviewing processes related to the controlof GHG emissions data and record.
• Interviewing relevant staff of the organization
responsible for managing GHG emissions data
and records.
• Verifying direct and indirect GHG emissions data andrecords back to source for the calendar year 2016.
• Verifying other indirect GHG emissions at an aggregatedlevel for the calendar year 2016.

• Visiting Prologis’ operational headquarters in Denver,
Colorado, United States, and the Solihull office and
Ryton Warehouse buildings, United Kingdom.
• Interviewing members of the executive committee andsenior management in charge of Human Resources,
Investor Relations, Risk Management, Energy, Design,
and Supply Chain Management.
• Sampling specific source and aggregated data points
referenced in the Report.

Prologis Park 70, Denver, Colorado.

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GRI
MATERIALSGRI Standards Content Index
GRI 102: General Disclosures 2016
Disclosure

Location in Report or URL

External Assurance

Disclosure 102-1 Name of the organization

Prologis, Inc.

31

Disclosure 102-2 Activities, brands, products, and services

Three Complementary Lines of Business Drive
Enduring Value

31

Disclosure 102-3 Location of Headquarters

San Francisco, CA

31

Disclosure 102-4 Location of Operations

Three Complementary Lines of Business Drive
Enduring Value

31

Page

Omission88Disclosure 102-5 Ownership and legal form

2016 Form 10-K

31

Disclosure 102-6 Markets Served

Three Complementary Lines of Business Drive
Enduring Value

31

Disclosure 102-7 Scale of the Organization

2016 Form 10-K

31

Disclosure 102-8 Information on employees and other workers

People at Prologis

31

22Disclosure 102-9 Supply Chain

Operations and Supply Chain

3119

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

We had no significant changes to theorganization’s size, structure, ownership, or
supply chain in 2016.

31

Disclosure 102-11 Precautionary Principle or approach

Ethics and Governance31

Disclosure 102-12 External Initiatives

CDP, CDP Commit to Action, DJSI, GRESB

31

Disclosure 102-13 Membership of associations

Memberships and Associations

31

30

Disclosure 102-14 Statement from senior decision-makerA Message from our CEO

31

4Disclosure 102-15 Key impacts, risks, and opportunities

A Message from our CEO

31

4Disclosure 102-16 Values, principles, standards, and norms of behavior

Ethics and Governance

31

26

8

26

Disclosure 102-18 Governance Structure

Ethics and Governance, 2016 Proxy Statement31

26

Disclosure 102-40 List of stakeholder groups

Materiality and Stakeholder Engagement
Stakeholder Priorities and Engagement

31

10
11

Disclosure 102-41 Collective Bargaining Agreement

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

31

Disclosure 102-42 Identifying and selecting stakeholders

Materiality and Stakeholder Engagement
Stakeholder Priorities and Engagement

31

10
11

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Disclosure

Location in Report or URL

External Assurance

Page

Disclosure 102-43 Approach to stakeholder engagement

Materiality and Stakeholder Engagement31

10Disclosure 102-44 Key topics and concerns raised

Materiality and Stakeholder Engagement31

10Disclosure 102-45 Entities included in the consolidated financial statements

Prologis, Inc.

31

Disclosure 102-46 Defining report content and topic boundaries

Materiality and Stakeholder Engagement
About this Report

31

10
29

Disclosure 102-47 List of material topics

Materiality and Stakeholder Engagement
Material Topics:• Anti-Competitive Behavior• Energy• Emissions• Training and Education

31

10Disclosure 102-48 Restatements of information

There are no restatements of information fromprevious reports.

31

Disclosure 102-49 Changes in reporting

We transitioned from G4 to GRI Standards

31

Disclosure 102-50 Reporting period

January 1, 2016 – December 31, 201631

Disclosure 102-51 Date of most recent report

July 201631

Disclosure 102-52 Reporting cycle

Annual31

Disclosure 102-53 Contact point for questions regarding the reportsustainability@prologis.com

31

Disclosure 102-54 Claims of reporting in accordance with GRI standards

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

31

Disclosure 102-55 GRI Content Index

GRI Content Index

31

32-35

Disclosure 102-56 External Assurance

External Assurance Statement3131Disclosure 103-1 Explanation of the material topic and its boundary

Materiality and Stakeholder Engagement
Acting with Integrity

31

10
27

Disclosure 103-2 The management approach and its components

Materiality and Stakeholder Engagement
Acting with Integrity

31

10
27

Disclosure 103-3 Evaluation of the management approach

Materiality and Stakeholder Engagement
Acting with Integrity

31

10
27

Disclosure 206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

There were no legal actions in 2016, pending orcompleted, and therefore no outcomes to report.

31

Omission

GRI 206: Anti-Competitive Behavior 2016
GRI 103: Management Approach 201633

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GRI 302: Energy 2016
GRI 103: Management Approach 2016
Disclosure

Location in Report or URL

External Assurance

Page

Disclosure 103-1 Explanation of the material topic and its boundary

Materiality and Stakeholder Engagement
Energy Efficiency
Innovations in Energy
Corporate Carbon Footprint Reporting

31

10
17
16
20

Disclosure 103-2 The management approach and its components

Materiality and Stakeholder Engagement
Energy Efficiency
Innovations in Energy
Corporate Carbon Footprint Reporting

31

10
17
16
20

Disclosure 103-3 Evaluation of the management approach

Materiality and Stakeholder Engagement
Energy Efficiency
Innovations in Energy
Corporate Carbon Footprint Reporting

31

10
17
16
20

Disclosure 302-1 Energy consumption within the organization

Corporate Carbon Footprint Reporting
Data Snapshot
Source of the conversion factors used: The
Greenhouse Gas Protocol and IPCC Fifth
Assessment Report

31

20
36-38

Disclosure 302-2 Energy consumption outside of the organization

Innovations in Energy
Energy Efficiency
Data Snapshot
Source of the conversion factors used: The
Greenhouse Gas Protocol and IPCC Fifth
Assessment Report

31

16
17
36-38

Disclosure 302-3 Energy Intensity

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

31

36-38

Disclosure 103-1 Explanation of the material topic and its boundary

Materiality and Stakeholder Engagement
Energy Efficiency
Innovations in Energy
Corporate Carbon Footprint

31

10
17
16
20

Disclosure 103-2 The management approach and its components

Materiality and Stakeholder Engagement31

10Disclosure 103-3 Evaluation of the management approach

Materiality and Stakeholder Engagement

31

10

Omission

GRI 305: Emissions 2016
GRI 103: Management Approach 201634

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Disclosure

Location in Report or URL

External Assurance

Page

Omission

Disclosure 305-1 Direct (Scope1) GHG emissions

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

31

20
36-38

305-1c Biogenic
CO2 emissions notapplicable to Prologis’
business (business
operations do not use
or combust biomass)

Disclosure 305-2 Energy indirect (Scope 2) GHG emissions

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

31

20
36-38

Disclosure 305-3 Other indirect (Scope 3) GHG emissions

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

31

20
36-38

Disclosure 305-4 GHG emissions intensity

Corporate Carbon Footprint
Data Snapshot

31

20
36-38

Disclosure 103-1 Explanation of the material topic and its boundary

Materiality and Stakeholder Engagement
Employee Benefits and Well-Being

31

10
24

Disclosure 103-2 The management approach and its components

Materiality and Stakeholder Engagement
Employee Benefits and Well-Being

31

10
24

Disclosure 103-3 Evaluation of the management approach

Materiality and Stakeholder Engagement
Employee Benefits and Well-Being

31

10
24

Disclosure 404-1 Average hours of training per year per employee

Employee Benefits and Well-Being
Data Snapshot

31

24
36-38

Disclosure 404-2 Programs for upgrading employees’ skills andtransition assistance programs

Employee Benefits and Well-Being
Data Snapshot

31

24
36-38

305-3c Biogenic
CO2 emissions notapplicable to Prologis’
business (business
operations do not use
or combust biomass)

GRI 404: Training and Education 2016
GRI 103: Management Approach35

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Data Snapshot
January 1, 2016 - December 31, 2016

Environmental
General
Topic

Data

Sustainable Building Certifications• 87 Million SF• 233 projects in 16 countries

Energy Efficient Lighting

78% of portfolio (based on 97% surveyed)

Solar Energy

165 MW of generating capacity in 9 countries

Cool Roofs

36% of portfolio has reflective roofing

Office Water Use

14 Prologis corporate offices reported total water usage of 5.26 million gallons

Office Waste and Recycling

5 Prologis corporate offices reported 376,000 total pounds of waste and recycling

LEED Waste Diversion

Our LEED certified projects have an average waste diversion rate of 75%, diverting more than 125 tons of waste from landfill in 2016

LEED Water Reduction

Our LEED certified projects have an average water reduction rate of 35%

GRI 302: Energy 2016
Topic

Question

Data

302-1

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

36,901,888

302-1

Total fuel consumption within the organization from renewable sources,in Megajoules. *

0

302-1

In Megawatt hours, the total*:i.
electricity consumption
ii. heating consumptioniii. cooling consumption
iv. steam consumption

i.
ii.
iii.
iv.

7,246
721
0
169

In Megawatt hours, the total*:i.
electricity soldii. heating soldiii. cooling soldiv. steam sold

i.
ii.
iii.
iv.

0
0
0
0

302-1

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Topic

Question

Data

302-1

Total energy consumption within the organization, in Megajoules.*

66,194,568

302-2

Energy consumption outside of the organization, in Gigajoules. **13,500,000

302-3Energy intensity ratio for total energy consumption inside the organization in
Megajoules. *41,842 Megajoules/FTE

GRI
MATERIALS*Anthesis Mosaic tool used for calculations/emission factors and EPA Ap 42: Appendix A used for conversions**Data extracted May 1, 2017 out of Measurable Environmental Management Platform and using EPA Ap 42: Appendix for conversions

GRI 305: Emissions 2016
305-1

2016 Gross direct (Scope 1) GHG emissions under operational control in metrictons of CO2 equivalent (CO2, CH4, HFCs, PFCs included). ***2,491 MtCO2e

305-2

2016 Gross location-based**** energy indirect (Scope 2) GHG emissions underoperational control in metric tons of CO2 equivalent. (CO2, CH4, HFCs, PFCs
included). ***4,098 MtCO2e

305-2

2016 Gross market-based**** energy indirect (Scope 2) GHG emissions underoperational control in metric tons of CO2 equivalent. (CO2, CH4, HFCs, PFCs
included). ***278 MtCO2e

305-3

2016 Gross location-based other indirect (Scope 3) GHG emissions underoperational control in metric tons of CO2 equivalent. (CO2, CH4, HFCs, PFCs
included). ***8,297 MtCO2e

305-4

2016 GHG emissions intensity ratio for the organization (under operational
control). (CO2, CH4, HFCs, PFCs included). ***7 MtCO2e/FTE (market-based)
9 MtCO2e/FTE (location-based)***Anthesis Mosaic tool used for calculations/emission factors****Location-based uses emission factors based on the local grid. Market-based uses emission factors based on the market (including RECs)

SocialTopic

Data

Volunteer Hours to Various
Organizations

Over 10,400 hours, including 7,000 hours on IMPACT Day that benefited 60 non-profits working in the areas of education, humanwelfare and the environment

Space for Good (warehouse space
donation to charitable organizations)• 82 months of rent-free space• 12 non-profits benefited• $900,000 in in-kind rent

Charitable Donations$1.6 million

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Employee Breakdown
Topic

Question

102-8

Total number of employees by employment contract, by gender.

102-8

102-8

Data
Permanent

Male
791

Female791

Americas
Europe
Asia
Total

Male
456
176
159
791

Female
475
201
115
791

Permanent Full-Time
Permanent Part-Time
Total

Male
789
2
791

Female772
19791

Employee Category
Top Management
Middle Management
Managers
Non-Management
Total

Male
10.0
10.1
8.3
4.6
7.9

Female
5.6
3.3
6.6
6.0
6.8

Total number of employees by employment contract, by region.

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

GRI 404: Training and Education 2016
404-1

Average hours of online training through Prologis’ Learning and Development
program by gender and employee category.

Governance
GRI 206: ANTI-COMPETITIVE BEHAVIOR 2016
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

There were no legal actions in 2016, pending orcompleted, and therefore no outcomes to report38AN INTEGRATEDAPPROACH

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Engage With Us
We value your feedback, and welcome any
questions, comments or suggestions on thisreport and our performance.
Please send your feedback to:sustainability@prologis.com
Stay up to date or for more information contact us at:www.prologis.com
www.linkedin.com/company/prologis
www.facebook.com/prologis

IMPACT Day 2016, São Paulo, Brazil.

39

Groundbreaking for Oakland Global Logistics Center, Oakland, California.

Prologis Corporate Headquarters

Prologis Operational Headquarters

Pier 1, Bay 1
San Francisco, California
94111 USA
Tel. +1 415 394 9000

1800 Wazee St. Suite 500
Denver, Colorado
80202 USA
Tel. +1 303 567 5000

40