Logistics REIT Prologis, Inc. (NYSE: PLD) doesn’t view its sustainability efforts as a separate initiative or program, rather they are woven seamlessly into its corporate fabric. From strategy and processes to key performance indicators, Prologis ensures that sustainability drives decision-making at every level.
Susan Uthayakumar joined Prologis as chief energy and sustainability officer in 2022. As a member of the company’s executive committee, Uthayakumar guides the company’s sustainability strategy, including energy and charging infrastructure.
Uthayakumar says, “As a customer-centric organization, Prologis strives to understand and serve our customers’ needs as they grow their businesses. We not only design and operate efficient and sustainable logistics centers, but we also are making significant renewable energy and mobility investments to help our customers achieve their goals.”
Prologis’ commitment to impact and sustainability has earned the company Nareit’s Leader in the Light Award in the Industrial category for 14 years in a row, most recently in November 2024. The annual Leader in the Light Awards recognize REITs that demonstrate leadership in carrying out sustainable and socially responsible investment and operating practices, good governance, and transparency.
In terms of transparency, Prologis publishes a detailed report each year that highlights successes and challenges.
“Our open reporting reflects our progress and lessons learned from challenges, building trust with all of our stakeholders,” says Suzanne Fallender, vice president of global impact and sustainability at Prologis.
For example, in the last edition, Prologis reported it had boosted solar and storage capacity from 405 megawatts in 2022 to 506 in 2023—even as Scope 1 and 2 greenhouse gas emissions, which represent just 0.2% of Prologis’ total greenhouse gas emissions, went up during the same period. Prologis also reported that it reduced its Scope 3 emissions, which represent approximately 99.8% of its total emissions, by 29% compared to its 2019 baseline. The progress is part of Prologis’ goal to achieve net-zero greenhouse gas emissions by 2040.
Prologis is taking concrete actions to reach its net-zero goal, including:
- Installing rooftop solar panels and energy storage systems.
- Conducting lifecycle assessments to forecast the emissions for each new development.
- Working to electrify the Prologis fleet, with a goal of 100% by year-end 2030.
- Embracing net-zero-ready building design standards, such as including solar-ready roofs, energy-efficient LED lighting, and replacing electric heat pumps with natural gas-fired heating systems.
- Purchasing renewable energy certificates to cover all the electricity used at the REIT’s offices.
Diving deeper into sustainability, Prologis’ investment committee considers risks from extreme weather—including storms, floods and heat—before buying or developing properties, ensuring long-term resilience.
Meanwhile, Prologis is focused on being a strong partner in the communities where the company has local teams and properties. A 2022 study by advisory firm Oxford Economics determined that $2.7 trillion goods flow through Prologis distribution centers each year, and about 1.1 million people work under a Prologis roof per day.
“As a long-term owner, our goal is to be the logistics facility provider of choice,” Uthayakumar says. “By situating logistics facilities close to urban centers, we create economic and social value. This includes shorter delivery routes, reduced greenhouse gas emissions, and next-day or even same-day delivery of the crucial goods and services—including food and medicine—that communities need.”
“At Prologis, sustainability is everyone's business,” Fallender says. “We work hard to ensure employees are engaged and empowered to drive change in whatever role they play in the company.”
Looking ahead, Prologis plans to continue its investments and focus on sustainable business practices.
“With 1.3 billion square feet of real estate across 20 countries and nearly 3% of the world’s GDP flowing through our facilities each year, we recognize the impact we have to positively influence communities and the environment,” Uthayakumar says. “We’re proud of the investments we’re making and the leadership role we’re playing to help the industry move to a cleaner way of operating.”