Creating Value Beyond Real Estate2019 Prologis ESG Impact Report

Prologis Park Osaka, Osaka, Japan

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Creating value beyond real estate
Fellow Stakeholders,Communities around the world are struggling under thesocial and economic weight of the COVID-19 pandemic,
while at the same time expressing pent-up frustrations
over centuries-old systemic social and racial injustices.
First, please know that our hearts go out to everyone
affected, as does our gratitude to those on the frontlines
working to address these challenges every single day.
Also know that Prologis is not simply supporting fromthe sidelines. In fact, the demonstrated resiliency of
our global platform has put our company in a position offinancial and operational strength, which has allowed us
to deploy a variety of resources to help.
Specific to COVID-19, we established a $5 million
global relief fund to support nonprofits, hospitals andorganizations that are focused on public health andsafety, as well as access to food and economic recovery.
We also donated 1.2 million square feet of space,equal to $4.9 million of in-kind rent, in Prologis facilities
across 13 global markets through our Space for Good
program, which we stood up to assist municipalities
and relief organizations. Furthermore, we made an initial
donation of $250,000 to the Equal Justice Initiative, witha total of $1 million committed to support racial equality
causes. We also made a public statement reinforcing
our continued commitment to focus on inclusion anddiversity, and speak out against racial injustice.
Importantly, we view our response to these challenges
as a meaningful extension of our historical leadershipand ongoing commitment to environmental stewardship,social responsibility and governance (ESG). To guide us
through our next phase of growth, in 2019 we launchedthe 3Cs: Customer Centricity, Change Through Innovation
and Operational Excellence, and Culture & Talent. We
believe our ESG initiatives further and embolden the 3Cs,
and create value for our stakeholders—value that reaches
beyond the walls of our real estate.

Customer Centricity has always been at the coreof our business, and on the ESG front this past year
we expanded our approach to improve the customer
experience even further. For example, we madesignificant strides to enhance the Community Workforce
Initiative (CWI), which we launched in 2018 to address
our customers’ pain points around labor. To that end,
we developed a cutting-edge, digital logistics training
curriculum and formed direct partnerships with global
customers to develop solutions to address their specifictalent needs, such as virtual reality training tools forsupervisors and employee engagement platforms forfrontline workers. In addition, through our Prologis
Ventures investment into WorkStep, an industrial talenthiring and retention platform, we delivered customers amore efficient and cost-effective way to meet their talentneeds. In fact, in one case, a global third-party logistics
customer leveraged WorkStep to hire during its peakseason while significantly improving their retention.
Change Through Innovation& Operational Excellence isabout embracing new challenges
and using our global footprint
and expertise to offer innovative
solutions to our customers. As
an example, we leveraged ourscale to establish a dedicatedmanufacturing line of LED light fixtures that we caninstall through our Prologis Essentials LED program,which resulted in procurement cost savings of $15
million in 2019. Also, as our customers come to us forour expertise in sustainable real estate solutions, weare always looking for ways to help them tap into theenvironmental and economic benefits of renewableenergy. For example, we helped our customer L’Oréal
achieve carbon-neutral operations in Muggensturm,
Germany, with a facility that featured a 2 megawatt(MW) solar installation and the procurement of certified
renewable energy from the local electric grid.

Culture & Talent has always
been the driving force behind
our success. Our commitment
to a philosophy of inclusion anddiversity is critical to our future
as a company. This ranges
from our focus on diversity inhiring practices to ensuringthat we establish the right tone
from the top. Along those lines, we announced that Ms.
Avid Modjtabai, a 27-year Wells Fargo veteran and one ofAmerican Banker’s “Most Powerful Women in Banking,”
joined the Prologis board of directors in February 2020.
We are thrilled to be able to gain from her perspective.
Her extensive finance and technology expertise, coupledwith her focus on customer experience, is an enormous
asset to our company.
Never has it been more important than during thesetrying times that we maintain our dedication to ESG,
which has been recognized globally: on the Corporate
Knights Global 100 Most Sustainable Corporations in theWorld list, we were named the #1 real estate company,#6 in the U.S. and #26 overall; and we were includedin the Dow Jones Sustainability World Index, placing
us among the top 10% of global companies. We arecontinuing to shape a model for real estate that delivers
tangible solutions and value to all of our stakeholders andextends past our net asset value. In the pages that follow,
we hope you will see that this value was further propelledin 2019 by our ESG leadership, not just within the realestate industry, but in the global business community.
Sincerely,

Hamid R. Moghadam
Chairman and Chief Executive Officer2

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ESG trends requiring stakeholder solutions
Customers
Customers faceongoing challenges
in attracting andretaining qualified
labor.

120%
turnoverreported by
e-commercecustomers in
2019.1

Our experiential learning lab in Miami, Florida,prepares high school students for jobs in thelogistics industry.

Communities
When selecting
development partners,
urban communities seek
long-term contributors
to sustainability, transit
and labor solutions.

56%of 2019
investment indevelopment was
based in urban
core.2

We collaborated with a UK county council
to conduct an electric bus pilot around our
Prologis Dartford project as a potential
solution countywide.

1. Prologis Research.
2. Based on Total Expected Investment (TEI) of 2019 Development Starts as reported in 2019 10-K.
3. https://www.thinkadvisor.com/2018/10/25/institutional-investors-warm-to-esg-investing-rbc-study/.
4. Gallup, May 2019.

Prologis Ports Carteret,
Woodbridge, New Jersey.

Investors
Investors increasingly
call for more disclosureof ESG data andalignment with climate
risk frameworks.

77%

of institutional
investors use
ESG in theirinvestment
approach. 3This report and the associated microsite
provide information on Prologis’ alignment
with TCFD, SASB and PRI frameworks.55. Prologis aligns with the frameworks developed by the Task
Force on Climate-related Financial Disclosures (TCFD), theSustainability Accounting Standards Board (SASB), and thePrinciples for Responsible Investment (PRI).

Employees
Potential and existing
employees want towork for companies
that give back.

67%

of millennials
factor in social
responsibility
when evaluating
employers.4

Since 2013, Prologis employees havevolunteered nearly 54,000 hours through
IMPACT Day, the company’s annual dayof global service. Additionally, we makesignificant financial contributions to ourcommunities on an annual basis andespecially during times of need.

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Customer-centric building design solutions
Prologis worked with the International WELL Building Institute (IWBI) to set thestandard for WELL building certifications with an eye toward measuring how
our buildings can accommodate the health and well-being of the people working
within our walls. Our WELL-Gold certified facility in Tilburg, the Netherlands, is thefirst logistics project in the world to receive this certification. Health and wellness
features include walking trails, fitness amenities, common dining areas and indoor
greenery to enhance air quality while at the same time promoting connections withnature. These features make our buildings more operationally efficient, as well as
more enjoyable for our customers’ workforces, which is important to attract andretain talent.

WELL-Gold Certified Prologis Tilburg, The Netherlands

70%
more energy
efficient1

Building design for well-being in mind
We are focused on creating logistics parks where businesses, employees and local
communities can flourish.

Mind & Community
Building design that facilitates health andwellness.
Comfort & Sound
Visual and physical ergonomics.
Light
Visual lighting design to boost productivity.

Walking trails and fitness areas promote
employee and community well-being in the UK.

Canteen for customer employees at
Prologis Chiba 1, Chiba, Japan.

Air
Enhanced air quality through ventilation andindoor landscaping.

Smart Wall
The Smart Wall in the Tilburg facility gives a
profile of the building’s sustainability features,
as well as real-time information on thebuilding’s energy performance and indoor air
quality and climate.

Water
Focus on water quality and hydration.

1. Compared to local Dutch energy benchmark for industrial buildings.

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Customer-centric building design solutions
Our build-to-suit facility in Muggensturm, Germany, which wasdeveloped to meet the needs of L’Oréal, sets an example forachieving operational carbon neutrality through the production anduse of renewable energy sources.

120%of emissions neutralized through renewableenergy procurement and a solar installation tobuffer against future changes in energy use

Carbon neutral operations at Prologis Park Muggensturm, Germany

ADB

A 30,000 square meter
green roof

Energy use reduction and monitoring

B LED lighting andlow-emissionbuilding materials

C

C 7,400 solar panels generating 2.0 MW(enough capacity to power more than
510 average homes for a year)

D Partially powered by windturbines offsite

In Japan, our team partnered with an LED
manufacturer to develop a motion-sensing LED light
fixture that reduces customer energy use by 82%
when compared to fluorescent lighting. In recognitionof this innovation our team received the 2018 Good
Design Award from the Japan Institute of Design
Promotion and the 2019 Energy Conservation Award
from the Energy Conservation Center, Japan.

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Labor solutions
Prologis’ customer-centric labor solutions include industry-specific virtual and remote trainings to secure a steady and qualified labor force. These solutions range frominvestments by Prologis Ventures in workforce technology applications, to building designs that promote health and well-being. Addressing our customers’ pain points associatedwith their need for a qualified workforce furthers the customer experience and deepens our community relationships. Together, these efforts generated solutions to drivecomplex development projects to completion, while also strengthening our presence in critical locations.

Community Workforce Initiative (CWI)
Goal

In 2019

25,0007

individuals
trained by 2025

markets withCWI partnerships

Workforce Technology Investments→ Talent sourcing and retention platform for warehousing,trucking and/or production operations in the U.S.
ChicagoTracy, CA

New Jersey
OaklandLos Angeles

Miami

In 2020

Mexico City→ We are scaling CWI programs in the U.S.
and expanding to the UK and other global markets.
→ We have partnered with JFF, a leading workforce development nonprofit, tocreate a 21st century approach to logistics education and training that builds basic
workforce skills and provides targeted logistics training, such as OSHA safety andforklift training. In partnership with JFF, we launched an online training platformthat deploys the latest technologies, including virtual reality enhanced sessions.
This online curriculum, with Prologis-branded industry certification, will further
expand CWI’s global reach.

VR training
Strivr
Virtualdemonstration
Reality System
by logistics training partner StriVR→ Delivers faster and more cost-effective ways to hire andretain high-quality labor.
→ On-demand staffing platform that that connects Japanesebusinesses with workers.
→ Reduces the time and cost to source temporary labor.
→ Immersive learning platform for training and upskilling
American frontline workers.
→ Delivering faster, more scalable, and more engaging
training programs that leverage VR and unique data
analytics to elevate workforce performance.

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Our carbon strategy: reduced carbon impact is good for business
Prologis’ carbon strategy hits the sweet spot between
creating business value and reducing our carbon
impact. It also furthers our efforts toward achieving ourscience-based target (SBT) for reducing greenhouse gas(GHG) emissions. Prologis’ carbon emissions footprint
covers emissions from our direct operations (Scope
1 and 2) and all other indirect emissions stemmingfrom our global portfolio/construction activities/
other aspects of our business (Scope 3). We focus
on emissions reduction across our whole business,both direct and indirect, which includes decreasing
emissions from energy use in our offices and customer

spaces. Subsequently, we purchase carbon offsets
and renewable energy credits (RECs) to neutralize theremaining operational emissions (Scope 1 and 2). We
also are exploring other carbon mitigation opportunities,
such as the use of low-carbon building materials andpartnerships, like our carbon mitigation partnership with
Cool Earth that preserves critical rainforests.
Our carbon reduction efforts are driven by our customercentric initiatives. For example, through Prologis
Essentials LED, we unlock energy cost savings forour customers, while reducing our indirect emissions(Scope 3). Through other collaborations, such as ourCustomer Sustainability Advisory Council (CSAC), weare identifying solutions that help Prologis and ourcustomers reduce our collective carbon impacts. The
CSAC forum goes beyond the norm to strengthen
customer relationships, while also providing insight into
their evolving needs on topics like renewable energy andelectric vehicles, among others.

Prologis is the first real estate company on the
S&P 100 to achieve operational carbon neutrality.1

PROLOGIS’ CARBON STRATEGY
Energy Emissions Reduction

Carbon Offsets and Renewable Energy Credits

Other Mitigation

Increase operational efficiency
and lower energy costs

Neutralize remaining emissions after reduction efforts

Further reduction of carbon impact positions
us as the partner of choice70%

energy and cost savings
from LED lighting
benefit package

45%

average energy savingsin Prologis LEED
buildings2

LED installation at LEED Gold-certified Prologis Park
Cheyenne, Las Vegas, Nevada.

90%

We seek to create and invest
in REC/offset opportunities toadvance joint efforts with ourcustomers to meet mutualcarbon reduction goals.

Carbon mitigation partnerships save us compliancecosts while supporting our global communities.
Our Cool Earth partnership, for example, helped
satisfy emissions regulations required for our
DIRFT UK project.

Solar installation at LEED Silver-certified Prologis Park
Redlands, California.

BREEAM “Excellent” accredited Prologis RFI DIRFT,
Daventry, UK.

of our top 25
customers havecarbon reduction goals

1. Operational carbon neutrality relates to our carbon emissions from our corporate offices and long-term leased vehicles (Scope 1 and 2).
2. Average over the five-year period (2015-2019) for developed buildings certified through our LEED volume program compared to a market base case per LEED certification methodology.

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Energy solutions powered by Prologis scale and experience

LED lighting installation at Prologis Park Kaiser, Fontana, California.

Solar panel installation at Prologis Park Capelin, Van Nuys, California.

Prologis Essentials LED

Prologis SolarSmart

Prologis led the charge to establish LED lighting asa standard in logistics real estate. In 2019 alone,an additional 50 MSF of our portfolio realized the
productivity benefits of LEDs. Through Prologis’
procurement and dedicated manufacturing of LED
lighting fixtures, an additional 50 MSF of LED lighting
coverage resulted in a $15 million savings compared towhat the fixtures would have cost without our scaleenabled procurement.

Prologis has been an industry pioneer and a global
leader in solar development for decades. Recently,
we were ranked #3 among U.S. corporate solar
installers by the Solar Energy Industries Association(SEIA). After surpassing our initial goal of 200 MW
of installed solar capacity by 2020, some 1.5 years
ahead of schedule, we set an ambitious new goalof 400 MWs of installed capacity by 2025. As ourcustomers pursue their own environmental goals
and carbon-reduction targets, deploying Prologisinstalled solar energy at our warehouses is an
example of shared value creation made possible byour experience, scale and core business strength.

50 million
additional square feet
illuminated with LED
lighting in 2019

Since 2017, we have more than doubled our LED coverage. We expect toaccelerate our transition to 100% LED lighting across our global portfolio
through our Prologis Essentials LED program. This program offers customers
the opportunity to upgrade their lighting without upfront capital costs, but withreimbursement throughout the duration of their leases.
Prologis Essentials LED allows all customers, of all sizes and in all markets, toenjoy the benefits of LED lighting. LEDs foster a better work environment byenhancing safety and boosting employee productivity. Another upside is that well-lit
and appealing workspaces promote greater employee satisfaction and decrease
turnover—a definite plus for our customers.

HARNESSING
THE SUNWe added 67 megawattsof solar generating capacity
to our portfolio in the last
five years, a 46% increase.
212 MW
145 MW

2015

2019

Responding to emerging customer interest in
renewable energy solutions, our customer-focusedsolar program is being elevated by our Prologis SolarSmart program. The solar
system installations are sized to meet the specific energy demands of customers,
enabling them to power a significant portion of their operations from the clean
energy generated by the Prologis solar system.
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Culture of innovation
Throughout 2019, Prologis embraced
the challenge of thinking in new
and innovative ways. Our focus on
Culture & Talent, as well as Change
Through Innovation and Operational
Excellence (two parts of our 3Cs), gave
rise to several initiatives, including
Prologis Talks, which are hosted by our
Chairman and CEO Hamid Moghadam
Prologis Talks interview with Scott Cook,and feature key leaders from otherco-founder of Intuit
industries who share their experiences
around embracing change. We arefocused on building and nurturing an innovative mindset that unlocks solutions forour customers, while creating a culture of inclusion and diversity of ideas.

Technology
The future will be built by those who harness
the power of technology and data. To remainon the cutting edge, we enhanced ourtechnological infrastructure, including:→ Data Lake – Across our portfolio of
nearly 4,000 buildings we have accessto vast amounts of data. Our data lake
is a repository from which we derivevalue-adding analytics.

→ Prologis Labs – Leveraging our technical expertise and appetite for innovation, ourlab in San Leandro, California conducts experiments in logistics technologies, suchas autonomous forklifts, working directly with customers to create solutions.

Operations

Customer

In 2019, we looked into further streamlining
our processes and identifying innovative
methods to make our operations evenmore efficient. Here are some examples:

Further strengthening our commitment toCustomer Centricity, our team established
new ways to support our customers,
including:→ Lighting Sensors – Motion anddaylight sensors that dim and adjust
based on available daylight to create
energy savings for our customers
are added to each Prologis-branded,directly manufactured LED light fixture.

→ Customer Sustainability Advisory
Council (CSAC) – Our CSAC ties
our business initiatives with the ESG
targets of key customers.

Installation of energy-efficient fixtures fromour Prologis Essentials LED lighting program→ Design Optimization Workshops – In the building development planning period,
these workshops serve as a cross-functional, collaboration to explore ideas anddiscuss insights to reduce risk and create additional value from our buildings.
Prologis holds these workshops for new developments globally — above andbeyond the industry standard.

Forklift simulator technology at Prologis
Labs in San Leandro, California

Prologis Customer Advisory Board
meeting, Brooklyn, New York, 2019

→ Net Promoter Score (NPS) – Prologis
initiated a NPS program in 2019 tomeasure customer satisfaction and loyalty. Ranking among the best brands in theworld, our NPS score is about 67% higher than the B2B average, which is a goodstart, but through our customer-centric efforts we aim to drive this number higher.
→ New customer-focused departments include: Customer Led Developments,
Customer Led Innovation and Customer Led Solutions.

→ Prologis Essentials – Launched the Prologis Essentials application, an online
marketplace of customer solutions.
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Creating an inclusive culture that gives back to our communities

Employees renovating a community garden on IMPACT Day 2019.

Quarterly town hall at our San Francisco headquarters.

Community Engagement and Volunteering

Inclusion and Diversity (I&D)

Time and again, new employees report that Prologis’ focus on community
engagement is one of the most compelling reasons behind their choice to join
Prologis. An employee favorite is our annual day of global service, IMPACT Day.

Culture & Talent (one of our 3Cs) at Prologis is built on acommitment to leverage I&D to inspire innovation—and it isa tremendous competitive advantage. We continue to makeprogress on I&D, but we know that our work is not done.
Our 2019 I&D survey revealed an opportunity for us to focus
even more on hiring diverse candidates, supporting employee
development and clarifying criteria for recognition and promotion.

24%

increase in hours
benefiting thecommunity between
2018 and 201915,270hours benefiting thecommunity in 2019*

7TH ANNUAL IMPACT DAY – May 18, 2019

9,323

70 projects

volunteer hours

around the globe

50 organizations
focused on:→ human welfare→ environment→ education*Includes volunteer hours, such as IMPACT Day, and time invested by our teams in community programs, such as CWI.

93%

participation
in I&D survey

In 2019, we deployed the following action-oriented I&D strategies:→ Talent Acquisition – Added more objectivity and structure to hiring process,as well as ensured I&D alignment with staffing agencies, to attract diverse
candidates.
→ Leadership Development – Created strategies to improve leadershipdevelopment and enhance organizational communication.
→ Learning & Development – Started pilots of training courses (e.g. Unconscious
Bias Training, Crucial Conversations, DiSC, etc.) to provide strategies to engage inmore inclusive discourse.
→ Talent Management – Created a framework to create greater transparency forour employees on job growth.
→ Reward & Recognition – Developed the ‘Traits of the Prologis team’ toemphasize employee abilities and how they are rewarded and recognized.
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Supporting our
stakeholders during
the pandemic
Prologis has closely monitored COVID-19 since late 2019*, making the safety and wellbeing of our employees and their families our top priority. We have been fortunate to
be in a position to provide resources and support to our communities and customers,
while also being transparent and available to our investors.

Food bank operating in Space for Good
program warehouse in Texas

Warehouse space donated for
pandemic response in Texas

Employees

Communities

Customers

Investors

Support benefits$5 million

24/7 support

to ensure employees have ample accessto IT support and other benefits such as
Teledoc, digital fitness classes and mental
health resources.

global relief fund launched by the Prologis
Foundation, providing financial support
to nonprofits and community-basedorganizations on the frontlines of the response.

provided by Prologis maintenancetechnicians, supporting business continuity
for our customers throughout the pandemic.

Frequent outreach withpublic/private investors

Weekly video messages
from executive committee leaders to individual
departments and the company-wide audience,as well as the establishment of a portal on theintranet with resources for employees aroundthe world regarding the pandemic.

COVID-19 task force
meets regularly to oversee the risk
management business continuity plan.

0% interest loans
for non-management employees whose
household incomes were impacted by the
pandemic.

Care packages
that included non-medical masks, handsanitizer and other home necessities.

~1.2 million sq. ft.
$4.9 million in 13 markets
of in-kind rent donated to municipal
governments, hospitals and relief organizations
through our Space for Good program.

8.5 million meals
funded by Prologis’ donations to Feeding
America and the European Food Bank
Federation for people in need across the U.S.
and Europe.

50,000 medical masks +5,000 sets

PPP Toolkit
made available within days of legislation to
help customers understand the resources
available to them by the Paycheck
Protection Program (PPP).

Rent deferral
offered to customers who demonstrated
legitimate need and showed they weresignificantly impacted by the pandemic.

Pandemic necessities

to share information on our financial
resilience, as well as near- and long-termplans for responding to the pandemic.

6 reports
published by the Prologis Research team toprovide insights on the pandemic’s impact on
the logistics real estate industry for investors,
customers and public.

Business update callhosted for public investors on April 6,
2020, as well as interim updates to private
investors to demonstrate our commitment totransparency and upfront communication.

and services available to customers throughthe online Essentials Marketplace.

of protective clothing donated to Chinese
hospitals during early stages of the response.

*COVID-19 contributions have been made since the end of 2019 through present day in 2020.

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Strategically identifying and responding to risk
At Prologis, we take a comprehensive
view of risk management. All of ourassets must be able to weather thechallenges and changes we face inthe marketplace. Our focus on ESG
resilience has always gone hand inhand with risk management.
Through preventive measuresand detailed response planning,
we promote business continuity
in our customers’ operations incase of storms, natural disasters,
emergencies and other factors facing
our portfolio now and in the future.

ALIGNMENT WITH THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURESIn our stakeholder outreach programs, we listen to our stakeholders’ needs. Investors and other stakeholders
identified the Task Force on Climate-related Financial Disclosures (TCFD) as a guiding framework forcompanies to show how they are responding to climate change. In response, we created a mapping tool
to demonstrate our program’s alignment with the TCFD core elements, as outlined below and explained infurther detail on our ESG microsite.

Governance→ Prologis board oversees climate-related risk

Strategy→ Evaluate material, physical and transition risks and opportunities under short-, medium- and longterm timeframes→ Prologis chief legal officer oversees Risk Management and ESG teams→ Risks: severe weather, flooding, coastal risk, etc.
→ Opportunities: energy efficiency, renewable energy, etc.

Prologis meets with developers fromaround the world to discuss safety
standards and develop risk management
best practices during the second annual
GC Safety Summit in Denver, Colorado.

Risks &
Opportunities→ Use internal (i.e. Geographic Information System team) and external tools for scenario analysis

Targets &Metrics→ Science-based target for greenhouse gas emissions reductions→ Local property management teams ensure asset resilience→ Prologis’ dynamic risk oversight framework includes climate-related risks and opportunities→ 100% LED lighting across global portfolio by 2025
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Setting the tone from the top
Responsible Investment with ESG Focus

Board Oversight and Outreach

Prologis takes a long-term view to all investment decisions, including developments, acquisitions and dispositions.
Our Investment Committee, comprised of senior leaders (including ESG leadership), conducts this review process.
They conduct a multilayered evaluation of all investments, considering the ROI from all angles, including ESG.
The many checks and balances for each investment decision ensure that capital is allocated responsibly, thereby
preserving Prologis’ financial strength and resilience. By incorporating ESG into the Investment Committee’s
evaluation and maintaining a strong focus on ESG within our business, Prologis aligns with the six Principles for
Responsible Investment (PRI). See a map of our alignment to PRI.

Prologis’ Board of Directors has final oversight over
our ESG program through the Governance andNomination committee.

INVESTMENT COMMITTEE EVALUATION WITH ESG FOCUS

BOARD COMPOSITION AND DIVERSITY1

Opportunity

Criteria

Initial
Evaluation

Final
Approval

In 2019, our directors joined our senior management
team to participate in outreach efforts through our
Governance and ESG Roadshow, engaging more than
70% of our public investors.

5

new directors in
the last five years

27%

female (3 directors)

41–72
year age range

Distribution of Tenure2
Department input fromglobal platform provides
analysis of investment
criteria→ Market Officers→ Capital Deployment→ O perations/Property
Management→ Development→ L egal→ Tax→ Accounting→ Risk Management→ Essentials
Plus others

Environmental Risks &Opportunities→ LED/solar opportunities→ Climate/weather-relatedrisk→ Environmental
remediation
Social Responsibility→ Municipal requirements→ Workforce proximity
Governance andResilience→ Financial Resilience(e.g. IRR, cap rates, tax
considerations)→ Operational Resilience(e.g. building features
meet customer needs)→ Customer business
continuity

Highest executives androtating members that
ensure the inclusionof new, diverse
perspectives
Committee consists of:→ Permanent investmentcommittee members(i.e. CEO, CFO, CIO,
COO, CCO)→ 5 rotating members
from Europe/Americas→ 4 rotating members
from Asia

Ensure the responsible
allocation of capitalto maintain Prologis’
financial resilience
Initial IC feedback
implemented andresubmitted for final
approval, as necessary

0–5 Years

6–11 Years

12+ Years

1. Directors nominated for election at our 2020 annual meeting ofshareholders.
2. Although the entire Board was rebuilt at the time of the AMB-ProLogis
Merger in 2011 and the tenure of the rebuilt Board started at that time, we
include four members in the 12+ year category as they were directors of
the legal acquirer prior to the Merger.

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Aiming high – and delivering
Our ESG goals reflect our commitment to create
value across our core business and serve as acompetitive differentiator.
Labor. In 2019, we set a new goal to train 25,000
individuals (external to Prologis) through our
Community Workforce Initiative (CWI), partneringwith local nonprofits and the development of ouronline curriculum.

PROLOGIS ESG GOALS AND METRICS
SDG1

INITIATIVEGOAL

PROGRESS

200 MW by 2020 (achieved in 2019)106%; 212 MW

400 MW by 2025

Set goal in 2019

Solar Power Generation

LED. We set a new goal of 100% LED coverage
across our global portfolio by 2025. Having
pioneered our industry in efficient lighting, weare now exclusively focusing our efforts on theevolution of LED lighting technology. Installing
LEDs can reduce electricity consumption andassociated costs by up to 70% compared to
traditional warehouse lighting.

Community Workforce
Initiative

25,000 individuals trained by 2025

Set goal in 2019

Hours Spent Benefiting Local
Communities Globally 2

75,000 hours by 2025

Set goal in 2019

Sustainable Building
Certifications

100% designed to sustainablebuilding certification standards 3

169 MSF

Solar. We set a new target of 400 MW by 2025
after surpassing our goal of 200 MW by 2020.

Efficient Lighting4,5

100%

88%

LED Lighting

100% by 2025

Set goal in 2019

Cool Roofs 4

100% new development andproperty improvement6

46%

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

2,160 MTCO 2E by 2025, a 21%
reduction in Scope 1 and 2 GHG
emissions

4,842 MTCO2E (+77%)7 2,682
MTCO2E to be reduced before goal isreachedGHG Emissions Reduction,
Scope 3 (Science-Based
Targets)

4,904,815 MTCO 2E by 2025,
a 15% reduction in Scope 3 GHG
emissions

5,038,778 MTCO2 E (-13%)8 133,963
MTCO 2E to be reduced before goalis reached

Employee Ethics Training

100% annually100%

1. The UN Sustainable Development Goals (SDGs) guide the UN’s global
agenda for sustainable development by 2030.
2. Includes volunteer hours, such as IMPACT Day, as well as the time
invested by our teams in community programs, such as CWI.
3. The goal is to design to sustainable building certification standards
and with sustainable design features as appropriate and in line withcustomer specifications.
4. Percentage based on percent of global portfolio by area.
5. Includes LED and T5/T8 fluorescent. Going forward, Prologis will reportprogress toward converting the portfolio to 100% LED.
6. As appropriate given local climate factors.
7. Increase above the 2016 baseline emissions.
8. Decrease from the 2016 baseline emissions.

14

2019 Prologis ESG Impact Report

GLOBAL REACHSUSTAINABILITY AT A GLANCE

Scale and scope

Employees

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Customers

$118B

814

3,840

19

93%

100%

80%

68%

in assets undermanagement (AUM)

MSF owned,
managed o r under
developmentbuildings

countriesof employees
completed Inclusion &Diversity engagement
survey versus externalbenchmark of 70-80%

of employees haveaccess to career
training andeducationof our top 25
customers rent
our sustainability
certified spaceof our top 25
customers align with
us in supporting
the UN Sustainable
Development Goals

4

8.9%

business days annually per
employee to volunteer withcharitable organizations

higher retention rates with our global
customers (covering 35% of our total square
footage) that engage with us through ouroutreach programs

Business model delivers results

Environment 4

Communities

142.7% 12.37% 16.5%

212

456

12,000 $2.3M

five-year TSR

outperformance over
MSCI US REIT Index
past five years1

MW of total solar
energy generating
capacitysustainable building
certifications in 18
countries

volunteer hours in
2019

14.7%

12%

46%

88%

$1.1M+

net earnings per
share five-year
compound annual
growth ratecore FFO 3 per sharecompound annual
growth rateof total operating
portfolio has cool orreflective roofing

of total operating
portfolio has
efficient lightingof in-kind rent donated to 15 nonprofit
organizations through the Space for Good
ProgramPartnership ensures enduring value

5,000

1,200

96.5%

customers

multisite customers

global occupancy rate

1

greater dividend
CAGR than REIT
average2

in charitable
contributions from thePrologis Foundation

All data is as of December 31, 2019.
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 the dividend is paid.
2. Includes REITs in the RMZ as of 12/31/2019 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 and Exchange Commission for a discussion and reconciliation to the most directly comparable GAAP-measure.
4. Cumulative figures through December 31, 2019.

15

2019 Prologis ESG Impact Report

Full Report Online

AWARDS/RECOGNITION

Corporate Knights

Americas

EuropeAsia

Prologis was the #1 real estate company,#6 in the U.S. and 26th overall among the2020 Corporate Knights Global 100 Most
Sustainable Corporations in the World.

→ NAREIT – Leader in the Light Award,
Industrial→ The Logistics Real Estate Initiative –2019 Logix Award, Prologis Park
Muggensturm, Germany→ Great Place to Work – Best Workplaces
in Japan 2019

→ Carbon Clean200 – 2019
→ PERE – Latin American Firm of the YearGRESB→ First WELL-Gold logistics facility –Prologis Park Tilburg, the Netherlands→ Prologis Park Blonie – Warehouse of theYear 2019 at the Eurobuild CEE Awards Gala

8 out of 8 Green Stars for all
Prologis entities→ Energy Conservation Center – Energy
Conservation Prize, Prologis Japan→ Habitat for Humanity – Global Housing
Hero, Prologis China

2019 Industrial Sector Leader in four
operating regions→ Prologis – top industrial real estatecompany in the Americas→ Nippon Prologis REIT (NPR) – topindustrial real estate company in Asia
→ UK Logistics Venture (UKLV) – top private
capital/industrial real estate fund in
Northern Europe→ US Logistics Venture (USLV) – top private
capital/industrial real estate fund in the US

Dow Jones
Sustainability Indices→ Prologis has been selected as an index
component of the DJSI World Index(recognizing the top 10% of global
companies) and on the North America
DJSI Index for the 12th consecutive year.
→ FIBRA Prologis is listed on the MILA
Pacific Index for the 3rd consecutive year,
and NPR is on the Asia Pacific Index forthe 5th consecutive year.

CDP
Prologis once again received an “A–” scorewithin the CDP assessment (among top 5%
globally), which is also a critical measurementof our alignment with the Task Force on
Climate-related Financial Disclosures (TCFD).

Additional Awards→ Harvard Business Review 100 BestPerforming CEOs in the World –Hamid R. Moghadam, ranked #17, 4thconsecutive year, 30 percent of the CEO
rating was based on ESG performance→ FTSE4Good – Included in exclusive ESG
index since 2011
→ Commercial Property Executive –Industrial Property Executive of the Year,
Hamid Moghadam→ Institutional Investor – #2 ESG/SRI
Metrics, #2 for CFO, Investor Relations
and Corporate Governance→ Institute for Market Transformation andthe U.S. Department of Energy’s Better
Buildings Alliance – Gold-level Green
Lease Leader→ CXPA Innovation Award – Finalist→ NAIOP – Diversity Champion of the Year,
Bay Area→ NAIOP – Developer of the Year,
Las Vegas Team
→ Civic 50, Colorado - Among the top
50 corporate citizens in Colorado
recognizing volunteer time andcommunity engagement→ DMCAR – Landlord of the Year16

2019 Prologis ESG Impact Report

About this report

Forward-looking statements

Prologis’ 2019 ESG Impact Report, andour 2019 ESG Impact Report microsite,
describe the significant achievements
and relevant initiatives that have furthered
our progress toward our ESG goals andtargets. This report and microsite cover
our efforts across our global portfolio of$118 billion in assets under managementin 19 countries serving more than 5,000
customers.

All data in this report is as of December
31, 2019, unless otherwise specified.
The statements in this release that are
not historical facts are forward-looking
statements.

Prologis conducts its global business onfour continents—the Americas, Europe
and Asia—through one common operating
platform that governs all entities in the
Prologis group. This includes our eightprivate funds. It also includes our two public
co-investment vehicles—FIBRA Prologis(FIBRA) and Nippon Prologis REIT (NPR)—
through which we conduct our operationsin Mexico and Japan, 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 andmonitoring systems.1
This report marks our 14th consecutive
year of ESG reporting. We report to
the Global Reporting Initiative (GRI)
Standards. You can find more information
about GRI, including the GRI content
index, as well as other detailed ESG
information on our 2019 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 2020 Proxy Statementand 2019 Annual Report and Form 10-K,
which are available in the Annual Reports
section of Prologis’ IR website.

The statements in this document thatare not historical facts are forwardlooking statements within the meaningof Section 27A of the Securities Act of
1933, as amended, and Section 21E of
the Securities Exchange Act of 1934,as amended. These forward-looking
statements are based on current
expectations, estimates and projections
about the industry and markets in which
we operate as well as management’s
beliefs and assumptions. Such statements
involve uncertainties that could
significantly impact our financial results.
Words such as “expects,” “anticipates,”“intends,” “plans,” “believes,” “seeks,”and “estimates,” including variationsof such words and similar expressions,
are intended to identify such forwardlooking statements, which generally are
not historical in nature. All statementsthat address operating performance,
events or developments that we expect
or anticipate will occur in the future —including statements relating to rent andoccupancy growth, development activity,
contribution and disposition activity,
general conditions in the geographic
areas where we operate, our debt, capital
structure and financial position, our ability
to form new co-investment ventures andthe availability of capital in existing or new
co-investment ventures — are forwardlooking statements. These statements
are not guarantees of future performanceand involve certain risks, uncertainties andassumptions that are difficult to predict.
Although we believe the expectations
reflected in any forward-looking
statements are based on reasonable

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External assurance
assumptions, we can give no assurance
that our expectations will be attained
and, therefore, actual outcomes andresults may differ materially from what isexpressed or forecasted in such forwardlooking statements. Some of the factorsthat may affect outcomes and results
include, but are not limited to: (i) national,
international, regional and local economic
and political climates; (ii) changes
in global financial markets, interest
rates and foreign currency exchange
rates; (iii) increased or unanticipatedcompetition for our properties; (iv) risks
associated with acquisitions, dispositions
and development of properties; (v)maintenance of real estate investment
trust status, tax structuring and changes
in income tax laws and rates; (vi)availability of financing and capital, thelevels of debt that we maintain andour credit ratings; (vii) risks related toour investments in our co-investment
ventures, including our ability to establish
new co-investment ventures; (viii)
risks of doing business internationally,
including currency risks; (ix) environmental
uncertainties, including risks of natural
disasters; (x) risk related to the current
coronavirus pandemic; and (xi) thoseadditional factors discussed in reports
filed with the Securities and Exchange
Commission by us under the heading“Risk Factors.” We undertake no duty to
update any forward-looking statements
appearing in this document except as may
be required by law.

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 are part of our Science Based Target (SBT) for reducing greenhouse gas (GHG)
emissions and also inform our sustainable supply chain initiatives.

This report has been externally assured
by Lloyd’s Register Quality Assurance(LRQA) using the AA1000 AssuranceStandard (2008). Our complete ESG
Report Assurance Statement can befound here, as well as our Greenhouse
Gas Assurance Statement here.

Engage with us
We value your feedback and welcome 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

17