PROLOGIS 2018 ESG IMPACT REPORT

Staying ahead ofcustomer needs

Prologis Capelin Distribution Center, Torrance, California. This LEED-Certified infill
distribution center produces one megawatt of solar power, enough to power 141 homes.

Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

CEO LETTER

Long-standing commitment
Dear Stakeholders,Since the company’s inception, our forward-looking
vision has pushed us to seek ways that keep us
ahead of the evolving supply chain. Taking the longview, we have built a portfolio of strategically locatedassets that meet our customers’ needs and help
to solve their pain points around location, energy
and labor. The rise of e-commerce and demand forshorter delivery times have led customers to seek
locations closer to end consumers. With increased
customer interest in automation, we continue toidentify and implement solutions to maximize energy
efficiency. As these influences continue to shape ourbusiness strategy, they also continue to demonstrate
the importance of environmental, social andgovernance (ESG) within that strategy.
Our future-focused approach to ESG not only
enables us to be resilient in a dynamic world, but also
demonstrates leadership across the global business
community. This year, we were the top-ranked U.S.
company and sixth overall on the 2019 Global 100
Most Sustainable Corporations in the World list
published by Corporate Knights, announced at theWorld Economic Forum in Davos.
We are committed to demonstrating alignment
on matters such as climate change, which areimportant to our customers, employees, investors andcommunities. In 2018, we became the first logistics
real estate company with an approved Science
Based Target (SBT) to reduce greenhouse gas (GHG)
emissions. In our innovation center, Prologis Labs,
we partner with our customers to test cutting-edge

I know our long-standing
commitment to ESG is acompetitive differentiator that helps
us better serve our customers,deliver value to our business andstay ahead of what’s next.
technologies. These new technologies, such as motion
sensors and smart meters, improve the operating
efficiency of our buildings while advancing ourprogress toward meeting our SBTs.
In 2018, we became the first logistics real estatecompany in the world to have a logistics buildingreceive WELL Certification, which uses building design
to further promote customer health and well-being.
We also launched the Community Workforce Initiative(CWI) in three major markets (Los Angeles, Miami,
Chicago). We are partnering with local workforce
development organizations to provide training and job
placement to underserved communities, while helping
our customers build a talent pipeline in logistics. By
bridging our customer needs with community needs
through CWI, we generate value, growth and goodwill
in communities strategic to our business.
At Prologis, ESG is good business—a part of ourstrategy since our beginning. A fundamental starting
block is strong governance that provides oversight

Hamid R. Moghadam, chairman and CEO

at all levels. As a testament to this, our governanceprogram has been recognized by Green Street as thebest in the REIT industry for 16 years in a row.
We are uniquely positioned. No other real estatecompany has the portfolio, scale or infrastructure toserve customers the way we can. Taking this vision
forward, building on all that we have built, is what
energizes me and our team around the world everyday. I am excited for our future. As I look ahead, I
know our long-standing commitment to ESG is acompetitive differentiator that helps us better serve
our customers, deliver value to our business andstay ahead of what’s next.
Sincerely,

Hamid R. Moghadam
Chairman and Chief Executive Officer

Prologis 2018 ESG Impact Report2

Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

2018 IN REVIEW

A year of firsts

LEED Gold-certified Prologis Huizhou
Huiyang Logistics Center, Huizhou, China

LightSmart in Prologis Park Kaiser, Fontana, California

Prologis CWI facilities tour, Aurora, Illinois

First in U.S., sixth globally in Corporate
Knights’ Global 100

First logistics real estate company with anapproved Science Based Target (SBT)First logistics real estate company to launch
workforce initiative

The Global 100 is one of the leading authorities
for sustainability assessments. This most recent
recognition was Prologis’ 10th time in this selectgroup, benchmarking our performance among otherindustry leaders.

SBTs are greenhouse gas (GHG) reduction goals thatare approved by SBTi, an internationally recognizedassessor of GHG goals. Since exceeding our original
carbon emissions reduction goal in 2016, four years
ahead of schedule, our SBT deepens our commitment
to reduce our global carbon footprint.

The Prologis Community Workforce Initiative(CWI) addresses customers’ labor needs byproviding logistics career training and job placement
opportunities with our customers.

First U.S.-based WELL-Certified logistics facility
at Prologis Park Tacoma, Tacoma, Washington

Prologis International Parkof Commerce, Tracy, California

BREEAM-certified Prologis
Park Moissy, Moissy Cramayel,
France in PELF green bond portfolio

First logistics real estate company in theworld to achieve WELL-Certification

First logistics real estate company to receive
the Gold-Level Green Lease Leader award

First green bonds issued by a logistics realestate company

The WELL Building Standard, administered by theWell Building Institute, focuses on enhancing building
design for occupant health and well-being, which
can help customers attract and retain talent in a tightlabor market.

Green Lease Leaders are chosen based on theircommitment to increased performance andsustainability in buildings and best practices in leasing.
This award recognizes our partnership with ourcustomers in reaching shared ESG goals.

Green bonds fund projects designed to reduce
environmental impacts. The strength of our sustainablebuilding program allows us to tap into green financing
and attract environmentally conscious investors.

Prologis 2018 ESG Impact Report3Environmental Stewardship

THE BUSINESS CASE FOR ESG

It was important toprove our commitment
to sustainability throughactions, rather thanwords—that’s why wechose to locate our main
distribution center in a
Prologis building.
Adam Hall, Head of
Sustainability, Internet Fusion

1. Solar average and average square footage forsustainable building certifications based on available
information in latest sustainability reports of REITs
within the S&P 500
2. Source: https://www.reit.com/data-research/reitindexes/reits-sp-indexes
3. Average over the five-year period 2014-2018
4. For developed buildings certified through our LEED
Volume Program
5. Compared to a market base case per LEED
certification methodology
6. Based on data for the calendar year 2018
7. Based on research from BranchPattern, our third-party
LEED Volume program consultant—estimate indoor
operational water savings: 30 percent; estimatedoutdoor operational water savings: 60 percent
8. Ratings by Moody’s and S&P, respectively. A
securities rating is not a recommendation to buy,sell or hold securities and is subject to revision orwithdrawal at any time by the rating organization.

Governance

ESG Impact Report microsite

THE PROLOGIS ESG MODEL

ESG creates value
As an industry leader, we show that not
only does ESG benefit our communities
and the environment, but it createsvalue for our customers, investors andother stakeholders and, in turn, grows
our business.

Social Responsibility

Prologis
ESG Value Creation
Growth

Productivity

Resilience

Growth in brand value, customer
loyalty and satisfaction, investor
confidence, and employee andcommunity relationships

Cost savings and value preservation
through modern, efficient building
design—staying ahead of ourcustomers’ needs

Smart governance of financial,
operational and reputationalrisk, building trust among
stakeholders

CASBEE “A”-rated Prologis Osaka 5,
Osaka, Japan

LEED-certified Prologis Park Bonneuil,Bonneuil-sur-marne, France

OSHA safety procedures at Prologis I-17
Logistics Center, Phoenix, Arizona

OUR MODERN, SUSTAINABLE
BUILDING DESIGN AS A BRAND
DIFFERENTIATOR

ENERGY, WASTE AND
WATER SAVINGS
BENEFITING OUR
CUSTOMERSFINANCIAL RESILIENCE

Up to 42%OPERATIONAL RESILIENCE

Sustainable Building Certifications

162% growth
53 MSF in 2014 to 139 MSF in 2018

13x greaterthan S&P 500 REIT industry average1,2
Solar

65% growth
113 MW in 2014 to 186 MW in 2018

26x greaterthan S&P 500 REIT industry average1,2

Top REIT balance sheet (A3/A- credit
rating)8

estimated energy cost savings on
average to customers3,4,5

79%
of construction waste (6,880 tons)
recycled and diverted from landfills 4,630-60%
average operational water savings

4,5,6,7

Leveraging scale and innovation todevelop proprietary data modeling andtools, assessing risk, natural catastrophe
factors and future disrupters impacting
our industry
REPUTATIONAL RESILIENCE
Creating a culture where ESG is owned
by everyone and all are empowered to
do the right thing through company-widecommunications and training on strategy,
risk management and ethics
Prologis 2018 ESG Impact Report4Environmental Stewardship

OUR CUSTOMER-FOCUSED BUSINESS MODEL IS WORKING

Social Responsibility

Governance

ESG Impact Report microsite

OUR SUSTAINABILITY AT A GLANCE
Our forward-looking approach to sustainable design, development, operations and culture
delivers long-term value for our stakeholders.

Real estate operations

Development

Strategic capital

Employees

Customers

leases prime logistics
facilities in global infill
markets where ourcustomers want to bebuilds the modern assets
in centers of global
trade—assets that are
scarce and in demand by
our customers

enables responsible
growth in global
markets, while earning
asset management andincentive fees

98%

88%

of employees completed engagement survey
versus external benchmark of 70-80%4

of our top 25 customers rent our sustainability
certified space, and 76% of our top 25
customers align with us in supporting the UN
Sustainable Development Goals

100%
of employees have access to career training
and education

OUR GLOBAL LEADERSHIP

4

Scale augments efficiency.

Partnership ensures enduring value.

$87B

5,100

in assets under m anagement (AUM)

customers

768MSF800

owned, managed or under development

multisite customers

19

97.2%

countries

global occupancy rate

3,690
buildings

Business model delivers results.

87.4%

131%

five-year TSR1

increase in net earnings per share overthe last five years

558 bpsoutperformance over MSCI US REIT Index
over past five years

57%

61%
increase in Core FFO per share overthe last five years3

business days per employee annually tovolunteer with charitable organizations

8.4%
higher retention rates with our top customers(covering 30% of our total square footage) thatengage with us through our outreach programs

Environment5

Communities6

186 MW

50,000+of total solar energy g enerating capacity

volunteer hours

374$13 Million

sustainable building certificationsin 18 countries

in charitable contributions from thePrologis Foundation

42%$5 Millionof total operating portfolio has cool orreflective roofing

of in-kind rent donated to local nonprofit
organizations through the Space forGood Program

88%

greater dividend CAGR than REIT average2of total operating portfolio has efficient lighting

All data is as of December 31, 2018.
1. Total stockholder return (“TSR”) is calculated based on the stock price appreciation and dividends paid to show the total
return to a stockholder over a period of time. TSR assumes dividends are reinvested in common stock on the day thedividend is paid.
2. Includes REITs in the RMZ as of 12/31/2018 with data for every year in each respective period. Compound Annual Growth
Rate (CAGR) weighed on market cap as of December 31, 2018, and measured over the past five years.

3. Core FFO per share is a non-GAAP measure. Please see our annual report filed on Form 10-K with the Securities andExchange Commission for a discussion and reconciliation to the most directly comparable GAAP-measure.
4. Survey completed in 2017, administered every two years.
5. Environmental totals across the portfolio as of December 31, 2018.
6. Figures calculated under the Communities section are aggregated from five years of data (2014-2018).

Prologis 2018 ESG Impact Report5Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

REDUCING OUR CARBON FOOTPRINT

Implementing a new Science Based Target
We have demonstrated leadership setting an
example in our industry through early adoption ofgreenhouse gas (GHG) emission reduction goals.
Science Based Targets (SBTs) are GHG reduction
goals approved by the Science Based Target
Initiative (SBTi), an internationally recognizedconsortium that applies methodology developed
and accepted by the scientific community.
Prologis’ accepted SBT is shown in the graphic

below illustrating how we plan to reduce the twocategories of GHG emissions in order to meet ourgoals. Our SBT will also drive greater operational
efficiency throughout our business as we pursue
advanced technologies and other means to
reduce energy usage. Additional information about
Prologis’ efforts to reduce our carbon footprint
and reach our SBT can be found on our 2018 ESG
Impact Report microsite.

As of year-end 2018, nearly

40% of our top 25 customers
had committed to setting their own SBTs.

GREENHOUSE GAS EMISSIONS REDUCTION ROADMAP
Roadmap to achieve Prologis’ Science Based Target
SCOPE

ACTIONTARGET*

Scope 1 and 2 Emissions
Employee Engagement and Greater Use of Renewable Energy Electricity

Examples include:– Appliances– Gas and electric-operated devices and equipment– Electricity consumption in offices

Scope 3 Emissions

Examples include:– Customer energy usage– Employee commuting– Business travel• Implement money-saving, emissionreducing technologies in our offices:– efficient lighting– motion and light sensors– HVAC maintenance– Other high-efficiency technologies• Utilities providing electricity
increasingly derived from renewableenergy sources (e.g., solar, wind, etc.)

21%

56%

15%

40%

reductionby 2025

reductionby 2040

Sustainable Design and Internal/External Stakeholder Engagement• Encourage customers and suppliers
to set SBTs
• Partner with customers on tenant
improvements– Increase efficiency through LED
lighting, cool roofing and HVAC
upgrades• Engage with Prologis employees
on ESG initiatives– GHG emission-reduction
strategies related to employee
commute and business travel

reductionby 2025

reductionby 2040

Science Based Targets (SBTs) are GHG emissions reduction goals that align with the current scientific understanding of climate change to keep global warming below 2 degrees Celsius.
*Percent reduction targets above are based on a 2016 baseline

Prologis 2018 ESG Impact Report

6Environmental Stewardship

Social Responsibility

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ESG Impact Report microsite

ESG GOALS AND TARGETS

Aligned with business and customers
Prologis’ ESG program is guided by ambitious goals
and targets that advance our business imperative.
Our goals demonstrate our industry leadership tocustomers and investors by aligning with them inpursuit of initiatives, such as the UN Sustainable
Development Goals (SDGs), which are committed
to overcoming global ESG challenges. Prologis’ ESG
goals promote our business strategy by improving
the operational efficiency of our buildings, leading to
reduced costs through sustainably certified buildings,

efficient lighting and cool roofs. Our solar energy
program has been recognized continuously by the
Solar Energy Industries Association (SEIA), mostrecently as third among all U.S. companies for installed
solar capacity. Each year, we continue to grow our
reputation as a renewable energy leader as weapproach our 200-megawatt-by-2020 goal. Prologis
has a long history of engaging with local communities,
strengthening our partnerships in markets key to ourbusiness. Finally, within our organization we ensurethat we maintain a culture of strong governance byengaging with 100 percent of employees globally
through such initiatives as our annual ethics training.

Third among all U.S. companies
for installed solar capacity
recognized by the SEIAPROLOGIS ESG GOALS
Aligned with United Nations Sustainable Development Goals (SDGs)
SDG

INITIATIVE

GOAL

Solar Power Generation

200 MW by 2020

PROGRESSSDG

INITIATIVE

GOAL

Cool Roofs

100% new development andproperty improvement3

93%

Hours Spent Benefiting
Local Communities Globally

Increase hours 20% by 2025

Sustainable Building
Certifications

100% designed to sustainablebuilding certification
standards1

Energy-Efficient Lighting

100% (includes LED, T5/T8)

PROGRESS

42%

Baselineyear is2018

GHG Emissions Reduction,
Scope 1 and 2 (Science
Based Targets)

21% reduction in Scope 1 and
2 GHG emissions by 2025

SBT
approved in
2018

162%

GHG Emissions Reduction,
Scope 3 (Science Based
Targets)

15% reduction of Scope 3
GHG emissions by 2025

SBT
approved in
2018

Employee Ethics Training

100% Annually

increase over
5 years2

88%

100%

1. The goal is to design to sustainable building certification standards or with sustainable design features as appropriate and in line with customer specifications.
2. Certifications can be secured after the development has stabilized; therefore, we are showing 5-year progress to capture certifications received over such period.
3. As appropriate given local climate factors.

Prologis 2018 ESG Impact Report

7

Environmental Stewardship

ENVIRONMENTAL STEWARDSHIP

Social Responsibility

Governance

ESG Impact Report microsite

THE DEMONSTRATED BENEFITS OF EFFICIENT BUILDING DESIGN FEATURES

Customer-focusedbuilding design
Our modern, efficient and resilient
building design saves money for ourcustomers and minimizes impacts on
our communities. Our focus on urban
locations allows our customers tomeet consumer expectations around
expedited delivery, while also reducing
overall transportation emissions fromshortened delivery distances. We
continue to explore innovative design
features to improve our customers’
experience and minimize our impact on
the environment.

ENOUGH FOR A LARGE NEIGHBORHOODELECTRIFYING GROWTH IN CHINAWASTE NOT, WANT NOT

Prologis has long been a leader in promoting
the growing solar energy industry. An
example of the significance of our solar
program can be found in New Jersey, wherea solar installation on our roof produces
enough energy to power the equivalent of
more than 770 average homes (>9 million
kilowatt hours) in the New Jersey area.

Our electric vehicle charging stations at
our facilities in China have delivered a totalof 331,540 kilowatt hours of electricity forvehicles. This equates to avoiding more than
834,000 pounds of carbon dioxide emissions
per year, the equivalent of removing 80
passenger cars from the road.

In the New York market, we have realized
significant cost savings by recycling oldasphalt onsite, thereby eliminating the
GHG emissions that would be createdfrom trucking the material offsite. A recent
project saved 40 percent on the cost of
new asphalt and reduced downtime for thefacility.

BeforeAfter

COOL ROOFS, COOLER TEMPERATURESSHINING A NEW LIGHT

RAIN IS OUR GAIN IN THE UK

Cool roofs have the ability to reducethe inside temperature of a building
significantly. For example, at Prologis Park
Pharr Bridge #7 in Reynosa, Mexico, a coolroof reduced internal temperatures by
20 degrees Fahrenheit.

Prologis LightSmart program is accelerating
the transition of our portfolio to more efficient
LED fixtures. Not only did LED lights create
brighter working conditions at Prologis
Park San Jose 3 in San Jose, California (asdemonstrated in the before and after photos),
they reduce annual energy use in thebuilding by 84 percent.

In the UK, rainwater harvesting
systems have been standard for all new
developments since 2009. These systems
store rainwater for non-potable uses onsite.
For example, Prologis Marston Gate DC4
in Dunstable has demonstrated significant
water savings with the rainwater systemproviding an average of 1,600 liters of
rainwater per week in 2018. This cut
water use in half in the building, resulting
in an annual savings of 83,200 liters.
Prologis 2018 ESG Impact Report8

Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report online

BUILDING OF THE FUTURE

Prologis Labs
Prologis Labs, our 13,000 square foot innovation center
located in the heart of the San Francisco Bay Area,
focuses on five categories of projects that benefit
Prologis, our customers and the logistics sector:•

Digital supply chain/digital warehouse•

Labor and well-being•

Next-generation warehouse•

Transportation•

Urban fulfillment

Everything that
Prologis Labs
is doing isrelated to ESG
in some way.

Core product development takes place at our homelab in Northern California and at interim pop-up labs
around the globe. At these sites, we are working withkey customers to explore options that could help them
improve operations. The team is conducting a numberof experiments that support worker safety and wellbeing, energy efficiency and sustainability.

Gary Bruns, VP,
IT Architecture& Emerging
Technologies

Employee Health and Well-Being
A top concern for Prologis customers is sourcing
and retaining employees. Prologis Labs is exploring
design features, such as modular smart living walls,
to create a visually inviting space that introduces air
purification, humidity and color into the warehouse.
Creating an inviting environment inside our buildings
can improve employee retention for our customers.

Prologis Labs team, San Leandro, California

SafetyEnergyWorker safety is another top concern for Prologis
customers. Prologis Labs is experimenting withflexible barriers and bumper systems. The systems
provide safety for personnel as they enter active areasof the warehouse and are designed to flex and absorb
the impact of a fork truck or other material handlingequipment, protecting the operator, equipment,
workers and the building from damage.

Prologis Labs also focuses on energy use. The team ispursuing several circuit-level electricity monitoring
solutions. Circuit-level monitoring provides a detailed
picture of how electricity is used in a building and canidentify opportunities to conserve energy. The datacollected through these platforms can give customers
visibility into energy consumption, cost and building
occupancy patterns.

At the end of 2018, there were 63 experiments in thepipeline at Prologis Labs. All experiments are analyzed
for potential revenue generation, customer benefits,risk management gains and cost savings that canbe passed on to customers, investors, partners andcommunities.

Prologis 2018 ESG Impact Report9Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

BUILDING OF THE FUTURE

Future-proofing our global portfolio

Tesla battery storage at Prologis DIRFT, Daventry, UK

WELL Gold-Certified facility at Prologis Park Tilburg,
Tilburg, the Netherlands

Reduced Joint Slab flooring at Prologis Park
Interstate, South Brunswick, New Jersey

ELECTRIC BATTERY STORAGE

REDUCED JOINT SLAB

The 116,000 square foot, state-of-the-art, rail-accessedlogistics building at DIRFT in the UK will help customers
realize energy and cost savings through a combinationof skylights that provide natural daylighting and a rooftop
solar installation, paired with three 15kWH Tesla Powerwall
battery storage units.

Our efforts to deploy Reduced Joint Slab concrete improvebuilding resilience, structural integrity and human wellbeing. This concrete reduces the number of joints to repair
and maintain. It creates a smoother work surface for forklift
operators and workers in the building, and ensures a surface
ideal for increased automation.

Drone tests with Prologis team in Chicago

Trucks unloading at
Prologis Park Izcalli, Mexico City, Mexico

REAL-TIME ENERGY AND HEALTH DATADRONE INSPECTIONSDWELL TIME REDUCTION

At one of our newest properties in Tilburg in the Netherlands,
we employ “Internet of Things” (IoT) sensors to collect andanalyze information that visualizes key building data on aninteractive smart wall and additional displays throughout thefacility. Monitoring and sharing real-time data informs customers
about the climate and air quality of their working environment.
This gives them a better understanding about the health andwell-being benefits from our buildings, as well as helping
conserve electricity and reduce energy costs.

In Chicago, Prologis partnered with technology providers
to analyze pavement conditions with autonomous drone
missions for Prologis sites. In addition to the data-gathering
benefits of drone-enabled pavement inspections, drones
reduce inspection costs by 30 percent compared to traditional
in-person inspections, while enhancing site resilience andsafety through this technology. Thanks to our scale and market
density, Prologis is able to bundle work for cost efficiency.

Prologis is partnering with technology providers to gain
insights into reducing “dwell time,” the duration a truck or
carrier spends waiting to load or unload goods at a facility.
A longer dwell time translates to more fuel consumption,
greater emissions and higher transportation costs in ourcustomers’ supply chain operations. The tools we generate
will help increase our customers’ operational efficiency andreduce GHG emissions.

Prologis 2018 ESG Impact Report10Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

INFILL STRATEGY ADDING VALUE

Locations ideal for our customers, consumers
and the environment
Our location strategy, focused at the core of urban
consumption, not only addresses our customers’
need for speedier delivery times, but also positively
impacts communities and the surrounding
environment. Locations closer to the end consumer

reduce drive times and thereby reduce resulting
emissions. According to the Environmental Defense
Fund, if every 1,000 customer trucks reduces theirjourney by 10 miles, we can avoid more than
37,000 pounds of carbon dioxide emissions.1

OUR PROPERTIES AT THE HEART OF URBAN DENSITY = LESS CARBON EMISSIONS 

View this map online

Mural painted by local artists Tats Cru
at Prologis Park Bronx, Bronx, New York171 buildingsin the greater LA area2

76%

Los Angelesof our buildings arewithin 0.5 miles of public
transportation stops

Nearly 90%of the LA population
is within a 20 minutedrive time of Prologis
properties

BROWNFIELD REDEVELOPMENT— A COMMUNITYCOLLABORATION

AnaheimHigh

POPULATION DENSITYLong Beach

Low

Santa Ana

Prologis partnered with neighborhood mural artists
to paint the exterior wall for one of our properties in
the Bronx, New York, which celebrates local culture,
reduces vandalization and minimizes repainting costs.

Nearly 20 million square feetof brownfield industrial area redevelopment into
Class-A real estate and infrastructure since 2007

PLD ASSET

1. EDF, Green Freight Handbook, Pg. 11
2. The greater Los Angeles area includes the Inland Empire and is visible on the expanded map on the ESG Impact Report microsite.
Prologis 2018 ESG Impact Report11Environmental Stewardship

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ESG Impact Report microsite

CONNECTING CUSTOMERS WITH COMMUNITIESCommunity Workforce Initiative creates opportunities
In 2018, we launched our Community Workforce
Initiative (CWI) in several pilot markets in the U.S.
The program emerged as the Prologis leadershipteam heard from our customers that the lack ofa sufficient workforce was one of their greatest
challenges. Customers are competing for limited
workers in an expanding market pushing for rapid
fulfillment of e-commerce purchases.
Leveraging our unique position as a leader in thelogistics industry, we created CWI to connect ourcustomers with our communities. We partner with
community organizations to provide training, skills
development and job placement with an aim to
help our customers build a talent pipeline in thebooming logistics field. We launched the programin Los Angeles in September of 2018 with EXP, anonprofit workforce development organization. We

Powered by Prologis Internship Program
kicks off with EXP in Southern California

extended the program in December to partner with
Miami-Dade Public Schools, as well as the Quad
County Urban League in Chicago, and will expand toa number of international and U.S. markets in 2019and beyond.

Creating opportunities for students
to expand their skill capacity andbroaden their base of knowledge
is paramount to preparing them forsuccess after graduation, and ourpartnership with Prologis will allow
us to expand this important work.
Alberto M. Carvalho, Miami-Dade County
Superintendent of Schools

Facilities tour for CWI trainees in
Propel by Prologis program in partnership with
the Quad County Urban League in Chicago, Illinois

171 participants
positioned for internships in Southern California
through our CWI partnership with EXP

Graduated first classfrom our Chicago CWI pilot program.
Prepared by CWI with hands-on training andjob-shadowing opportunities, Prologis CWI
graduates have found jobs with our customers
to start a new career path in logistics

300 students
to be reached through our Prologis Trade andLogistics Lab career development program
launched in partnership with Miami-Dade
County Public Schools

Ribbon cutting at the Prologis Tradeand Logistics Lab in Miami, Florida

Prologis 2018 ESG Impact Report12Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

GLOBAL VOLUNTEERISM

FOCUS ON INCLUSION AND DIVERSITY

Long-term partner to communities
around the world

Inclusion and diversity (I&D), which encourages the free flow of ideas and innovation fromall perspectives, is one of our primary strategic initiatives that we call our Five Drivers ofCompetitive Advantage. This business objective enables us to further reflect the diversityof our customers, investors, and the communities in which we live and work.

As long-term owners of properties, we havea vested interest in helping our communities
thrive. It is important to our customers andinvestors that we reflect their values and,in turn, the values of their constituencies.
Community engagement and volunteerism
are key elements of our social responsibility
program, which strengthens our connection
with stakeholders. This includes our longstanding Space for Good program, thePrologis Foundation, IMPACT Day (our global
day of volunteerism) and other companysponsored volunteer projects. Our Space forGood program provides temporary spacein our distribution centers for disaster relief,
as well as helps charitable organizations
address seasonal and short-term needs.

In 2018, we began paving the way to strengthen I&D throughout our organization. We
continued to include I&D as part of our bonus metrics for all employees. In addition tolaying the groundwork for a global employee I&D survey for 2019, our chief executive
officer and other members of our executive team routinely visited offices around theglobe to engage with employees and encourage open communication.

$13 million donated to
nonprofits
through the Prologis Foundation in
the past five years

86 months donatedthrough Space for Good tononprofits in 2018

8,000 volunteer hours
to 48 charitable organizations at
2018 IMPACT Day

50,000 volunteer hours
sponsored by Prologis over the past
five years

Prologis team members on 2018 IMPACT Day, Paris, France

Outside of Prologis, we worked with the Urban Land Institute (ULI) by sponsoring
women in commercial real estate to attend ULI’s annual conference and encouragethem to pursue opportunities in ULI’s Product Councils. We sponsor scholarships
through NAIOP, supporting under-represented minorities and women to obtaincredentials in real estate development and deployment. These scholarships not only
help grow greater I&D within our industry, but enable us to identify and integrate
highly qualified, diverse leaders into our own business. NAIOP recognized us asDiversity Champion of the Year at the NAIOP Best of the Bay Awards for our many
positive contributions promoting diversity in commercial real estate.
More information about these programs and initiatives can be found on the 2018 ESG
Impact Report microsite.

Prologis managing director Gayle Starr leading panel discussion
at ULI/Women’s Leadership Initiative, San Francisco, California

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Environmental Stewardship

Social Responsibility

Governance

ESG Impact Report microsite

UNDERSTANDING CUSTOMER NEEDSThe first WELL-Certified logistics facility
Given the tight labor market, our customers’ needs are
evolving to focus on proximity to labor and facilities
that accommodate employees. Our building features
can help our customers by enhancing health andwellness. In 2018, we became the first logistics realestate company with a WELL-Certified facility at
Prologis Park Tacoma, Washington. In 2019, our facility
at Tilburg, the Netherlands was the first WELL Gold
Certified building in the logistics real estate industry.
We coordinated with the International WELL Building
Institute (IWBI) to help set the standard for WELL
building certifications in logistics and distribution realestate. At Park Tacoma, eight murals were completed
inside the building that were painted by a local
artist, promoting a connection with the outdoors.
Our customers have repeatedly told us how theiremployees enjoy the murals and walking trails.
Additional information about our efforts to promote
employee and customer health and well-being canbe found on our 2018 ESG Impact Report microsite.

Mural inside Prologis Park Tacoma, Tacoma, Washington

LEED Silver Certification and
WELL Building Certification-Silver
Prologis Park Tacoma Building D

35% estimated energy cost savings
when modeled against base case

96% of construction waste diverted
from landfill, as well as significant use of local andrecycled building materials

Chairman and CEO Hamid Moghadam at CAB

31% operational water use savings
from water-conserving components

Natural daylight
coupled with energy-efficient lighting

Outdoor walking trail and garden

Natural light fills the interior at
Prologis Park Tacoma, Tacoma, Washington

ENGAGEMENT THROUGH CUSTOMER SUSTAINABILITY
ADVISORY COUNCIL AND CUSTOMER ADVISORY BOARD

Our partnerships with customers helps align our ESG
strategy and enable our customers to achieve their own
goals—both at the Customer Sustainability Advisory
Council (CSAC) and our Customer Advisory Board(CAB). We engage in these forums to better understandour customers and how we can use our ESG program
to better serve them, identify shared ESG goals, target
specific projects or initiatives, and promote crosspollination of ideas and information sharing.
CSAC promotes open communication lines with key
customers to help us use our programs, such as
LightSmart and CWI, to provide them with solutions
they need. Through the CSAC’s quarterly meetings,
the group has identified innovative technologies andways to enhance building resilience, promote greater
data gathering and address climate-related initiatives,
such as SBTs. Growing out of the quarterly meetings
have been new deals with our LightSmart program,the piloting of new water saving technologies andincreased CWI participation, just to name a few.

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ESG Impact Report microsite

GOVERNANCE

Strong oversight preserves value
Integrated oversight across all levels of the company
helps preserve value and proactively mitigate
risk. It supports financial, structural, operationaland reputational resilience to our business. The
resilience and dependability of our business makes
us a reliable partner for our customers, investors,
employees and communities.
Prologis’ ESG program is overseen by our board
governance and nomination committee. The ESG
team reports directly to our chief legal officer andgeneral counsel who reports directly to our chief
executive officer. Keeping an “ear to the ground,”our directors meet with employees and visit our
properties to ensure that the vision, strategy andculture of the company is aligned and embraced at alllevels. Our director, Bill Zollars, for example, goes into
the field, giving presentations to provide insight fromhis years of business experience–focusing on what
is important strategically to ensure the resilienceof our company. This gives him insight and a keen

As a long-standing member of the Board
Governance Committee, I have witnessedand supported Prologis’ steadfast
commitment to ESG­— as a value add tothe business and a brand differentiator.
Bill Zollars, Prologis Board of Directors

Prologis Board Member
Bill Zollars, San Francisco, California

perspective that he brings to his decision-making asa director and a member of the board governanceand nomination committee and the talent andcompensation committee.
Beyond the board, we are committed to rigorous
oversight at all levels. We have an active investmentcommittee that performs diligence over every capitaldecision to ensure that the company’s financial assets
are protected. This committee is regularly refreshedwith new, diverse perspectives from a rotation ofsenior members throughout the organization. Our
property managers are on the ground in all ourmarkets, keeping close watch over our customers
and our facilities so they can quickly respond to theirneeds. Our risk management team actively evaluates
our portfolio exposure to ensure that we havesufficient coverage and protection of our facilities andare prepared for whatever changes may come.

Customers attending risk
management workshop, Denver, Colorado

Another critical aspect of risk management at Prologis
is safety. Prologis focuses on providing exceptionalcustomer service with state-of-the-art, Class-A realestate and maintaining high safety standards within ourconstruction practices to actively ensure the safety of
our employees, customers, suppliers and contractors.

Risk Management and
Safety Highlights• One-on-one director interviews to update risk map

Risk management ensures resilience and safety
Effectively identifying and managing risk is criticalto maintaining business resilience and operational
continuity. At Prologis, ESG has always gone hand inhand with risk management. We take preventative
measures to improve the resiliency of our buildings
to promote business continuity in our customers’
operations. In the last several years, we have been
fortunate to avoid catastrophic losses caused bynatural disasters, but we always seek to be better
prepared for the next major event. Because of thescale of our business, we are able to negotiate reduced
rates and priority status with nationally recognizedservice providers. For example, in 2018 several of ourproperties in Texas were in the path of hail storms thatdamaged a number of our rooftops and skylights, but
the disaster recovery vendors we already had undercontract were able to respond within hours to assessthe damage and begin repairs. The quick response
prevented loss to the interior of the buildings and ourcustomers’ property.

• Proprietary risk assessment models focusing on
financial, real estate and enterprise risks, as well as
risks relating to climate change, flood, earthquakes
and wind• Comprehensive insurance infrastructure thatleverages our scale to cover potential damage• Best-in-class research team monitoring the markets• Proactive storm preparation and emergency
response for business continuity (e.g. emergency
response plans, seismic isolators/gas shutoffs,
emergency power and water, equipment andresponse personnel on standby, etc.)• Safety hotline established in 2018
• More than 25,000 preventative skylight fall safety
devices installed in 2018 (will double installationsin 2019)• A general contractor safety summit hosted
to identify additional construction safetyenhancements• Increased safety audits to further reinforce highstandards for safety compliance

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ESG Impact Report microsite

ETHICS AND SUPPLIER COMPLIANCE

Ethical culture drives strong partnerships
Integrity is the cornerstone of every action we take.
Our word is our bond. This forms the critical foundationof the partnerships we establish with our customers,
investors, employees and communities. Stakeholders
trust that we conduct business fairly, ethically and in fullcompliance with all laws and regulations.

policy and practice is to provide equal employment
opportunities to all individuals, free of discrimination
regardless of race, gender, gender identity, creed,
religion, sexual orientation, marital status, national
origin or ancestry, sex, age, physical or mental
disability, medical condition or veteran status.

Prologis’ policies also include a commitment toprotecting human rights. We have adopted responsible
workplace practices and endeavor to conduct business
operations in a manner free from complicity in humanrights abuses. In particular, Prologis’ core values andculture of integrity (I), mentorship (M), passion (P),accountability (A), courage (C) and teamwork (T)—IMPACT—embody a commitment to ethical businesspractices and strong corporate citizenship. Prologis’

Responsible supply chain
We hold our suppliers and contractors to highstandards. We do this through our Supplier Codeof Conduct. Furthermore, we engage with a global
supply chain risk management evaluator to conduct
prequalification assessments of potential suppliers
to ensure they meet our standards for insurance
coverage, safety programs, financial stability, quality

Building maintenance procedures at
Prologis Park West London, Uxbridge, UK

systems, terms and conditions, sustainability,
compliance with our Supplier Code of Conduct andregulatory compliance. This prequalification processes
ensures that we work with suppliers and contractorsthat reflect our values and and will deliver exceptional
products to our customers.

Code of Ethics & Business Conduct
and Global Anti-Corruption & Foreign
Corrupt Practices Act (FCPA) Policy

VP and Prologis global compliance officer Jan Kneisel leads ethics
training for new team members in Denver, Colorado•

Reviewed by board governance committee
annually•

100% participation by global employees in2018 in ethics training•

In-person FCPA training in Mexico, Brazil,
China and Europe in 2018•

Policies underpinned by a 24-hour,anonymous ethics helpline and Ethics
Committee that addresses all reported
concerns•

Our Code of Ethics and Business Conduct
can be found here

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AWARDS AND RECOGNITIONS• Corporate Knights’2019 Global 100​—Top-ranked in the U.S.,
sixth in the world• Green Street Advisors—
REIT Industry’s Corporate
Governance Leader, 16th
consecutive year

• Harvard Business Review—
Best-Performing CEOsin the World, Hamid
Moghadam, ranked #17• Dow Jones Sustainability Indices—Awarded to the top 20% of invitedcompanies ranked in sustainability:
North America Index (PLD), Asia
Pacific Index (NPR) and MILA
Pacific Alliance Index (FIBRA)

Americas• NAREIT—Leader in theLight Award, Industrial• First Industrial WELL Buildingin the U.S.—Prologis Park
Tacoma, Building D• Carbon Clean200—2019• Commercial Property Executive—
Industrial Property Executive of theYear, Hamid Moghadam

ESG Impact Report microsite

2018 GRESB INDUSTRIAL SECTORLEADER IN ALL OPERATING REGIONS
8 of out of 8 Green Stars

PROLOGIS
ENTITYREGIONRANK ANDNUMBER OF
PEERS



FIBRA

Industrial/North America

1st of 15



NPR

Industrial/Japan

1st of 9

UKLV

Industrial/United Kingdom

1st of 6

PELF

Industrial/Europe

2nd of 18



USLF

Industrial/United States

2nd of 10

Prologis

Industrial/Global

3rd of 16

EuropeAsia• MIPIM Award—Best Industrial& Logistics Development,
Prologis Benelux• Great Place to Work—Best
Workplaces in Japan 2019



PELP

Industrial/Europe

3rd of 18• Energy Conservation Center—Energy Conservation Prize,
Prologis Japan



USLV

Industrial/United States

3rd of 10• Climate Bonds Initiative—Green
Bond Pioneer Award, PELF
• WELL-Registered Facility—
Prologis Park Tilburg DC5,
Tilburg, the Netherlands• Habitat for Humanity—Global
Housing Hero, Prologis China• CDP—Top 5% Globally, A– score• CXPA Innovation Award—Finalist• FTSE4Good—Included in exclusive ESG
index since 2011

• Corporate Secretary Magazine—
Finalist for Best ESG Reporting• NAIOP—Prologis Park Tacoma,
2018 Industrial Development of
the Year• Institute for Market Transformation and the
U.S. Department of Energy’s Better Buildings
Alliance—Gold-level Green Lease Leader• DMCAR—Landlord of the Year

• Institutional Investor— #1 ESG/SRI Metrics,
Best CFO and Investor Relations Program• NAIOP—Developer of the Year,
Las Vegas Team• PERE—Latin America Firm of the Year

Governance

Other• NAIOP—Diversity Champion of
the Year, Bay Area

• Tracy Chamber of Commerce —Business of the Year
• Best for Colorado—Inauguralhonoree, recognized as one of themost sustainable companies inColorado
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Environmental Stewardship

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ESG Impact Report microsite

ABOUT THIS REPORT

Prologis’ 2018 ESG Impact Report, andour newly-developed 2018 ESG Impact
Report microsite, describe the significant
achievements and relevant initiatives thathave furthered our progress toward our
ESG goals and targets. This report andmicrosite cover our efforts across ourglobal portfolio of $87 billion in assets
under management in 19 countries
serving more than 5,100 customers.
Prologis conducts its global businesson four continents—the Americas,
Europe and Asia—through one
common operating platform thatgoverns all entities in the Prologis
group. This includes our six private
funds. It also includes our two public
co-investment vehicles—FIBRA
Prologis (FIBRA) and Nippon Prologis

REIT (NPR)—through which we
conduct our operations in Mexico andJapan, respectively. For ESG initiatives,
Prologis uses its scale to provide one
common ESG platform that covers its
private funds, FIBRA and NPR, andincludes ESG principles, policies, goals
and monitoring systems.1

This report marks our 13th consecutive
year of ESG reporting. We reportto the Global Reporting Initiative(GRI) Standards. You can find more
information about GRI, including the
GRI content index, as well as otherdetailed ESG information on our 2018
ESG Impact Report microsite.

We also report progress on our ESG
initiatives, annual GHG emissions
and Task Force on Climate-related
Financial Disclosures (TCFD) climate risk
management through CDP, DJSI andGRESB. In addition, we discuss our ESG
program in our 2018 Proxy Statementand 2018 Annual Report and Form
10-K, which are available in the Annual
Reports section of Prologis’ IR website.
1. We do not report on the business activities of entities
over which we do not exercise direct operational
control—including service providers, customers,
contractors, suppliers and vendors. We do include
aggregated and anonymous customer energy data in
our Scope 3 carbon emissions calculations that arepart of our Science Based Target (SBT) for reducing
greenhouse gas (GHG) emissions and also inform oursustainable supply chain initiatives.

FORWARD-LOOKING STATEMENTS

All data in this report is as of December
31, 2018, unless otherwise specified.
The statements in this release thatare not historical facts are forwardlooking statements.
These forward-looking statements
are based on current expectations,estimates and projections about theindustry and markets in which Prologis
operates, management’s beliefs andassumptions made by management.
Such statements involve uncertainties
that could significantly impact Prologis
results. Words such as “expects,”“anticipates,” “intends,” “plans,”“believes,” “seeks,” “estimates,”variations of such words and similar
expressions are intended to identify
such forward-looking statements, which
generally are not historical in nature.
All statements that address operating

performance, events or developmentsthat we expect or anticipate will occur
in the future—including statements
relating to rent and occupancy growth,acquisition activity, development
activity, disposition activity, generalconditions in the geographic areas
where we operate, our debt andfinancial position—are forward-looking
statements. These statements are
not guarantees of future performanceand involve certain risks, uncertainties
and assumptions that are difficult
to predict. Although we believe theexpectations in any forward-looking
statements are based on reasonableassumptions, we can give no assurance
that our expectations will be attained,
and therefore actual outcomes andresults may differ materially from whatis expressed or forecasted in such

This report has been externally assured
by Lloyd’s Register Quality Assurance(LRQA) using the AA1000 AssuranceStandard (2008). Our complete
assurance statement can be found here,
as well as our verification statement here.

forward-looking statements. Some of
the factors that may affect outcomes
and results include, but are not limitedto: (i) national, international, regional andlocal economic climates, (ii) changes
in financial markets, interest rates andforeign currency exchange rates, (iii)increased or unanticipated competition
for our properties, (iv) risks associatedwith acquisitions, dispositions anddevelopment of properties, (v)maintenance of real estate investment
trust status and tax structuring, (vi)availability of financing and capital, thelevels of debt that we maintain andour credit ratings, (vii) risks related toour investments (viii) environmental
uncertainties, including risks of natural
disasters. Prologis undertakes noduty to update any forward-looking
statements appearing in this release.

Engage with us
We value your feedback andwelcome any questions, comments
or suggestions on this report and our
performance.
Please send your feedback to:Pier 1, Bay 1
San Francisco, California 94111 USA+1 415 394 9000
sustainability@prologis.com
For more information, contact us at:www.prologis.com
www.linkedin.com/company/prologis
www.facebook.com/Prologis

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