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Environmental Stewardship, Social Responsibility & Governance (ESG) Policy Statement


Policy Scope


This policy applies to all Prologis-controlled operations globally.




This ESG Policy formalizes Prologis’ longstanding commitment to responsible business practices in the areas of:


• Environmental Stewardship.


• Social Responsibility.


• Governance, Ethics & Compliance.


It also memorializes our commitment to practice responsible investment by integrating ESG considerations into our investment decision and management processes.


Principles and Strategy

By embedding ESG into our operations and investment decisions, we create value for our business by driving innovation, expanding our value proposition, deepening relationships with our stakeholders, attracting and retaining top talent, and reducing our capital costs through ESG-related financing.


We maximize the positive impact of our ESG actions and the value they deliver for our business by following four strategic principles:


1. Business integration – Weave ESG into the fabric of our organization to inform decision-making from the boardroom to all corners of our global operations.


2. Customer-focused solutions – Pursue ESG initiatives that add value for our customers, Prologis and society.


3. Innovation – Unlock new technologies and approaches to solve sustainability challenges.


4. Culture & Talent – Offer a world-class employee experience and engage our employees in delivering on our ESG objectives. Oversight and Implementation


The Board of Directors, through the Board Governance and Nomination Committee, has direct oversight of Prologis’ ESG program. The ESG department reports to our Chief Legal Officer and General Counsel, who reports directly to our Chief Executive Officer and Chairman. We support our business strategy by establishing ESG goals that are informed by our stakeholder engagement efforts. Our ESG goals are approved and supported by senior management and the board of directors and are put into action by our global colleagues in the field. We annually track data and our progress to report on the outcomes of our efforts across our corporate operations and global portfolio for the three dimensions of ESG. ESG-related metrics such as progress on inclusion and diversity, solar and LED lighting inform the pay of all Prologis executives and responsible employees.


Environmental Stewardship


Our focus:

• Build a portfolio with modern, efficient assets in the right locations, staying ahead of our customers’ needs, while positively impacting the environment and addressing climate change risk.


Our actions:


• Achieve sustainable building certification for new developments globally and incorporate cutting-edge, efficient technology to benefit our customers.


• Within new developments and existing assets, enable more efficient customer operations, promote health and well-being of our customers’ employees, and deliver sustainability benefits that enhance profitability and reduce environmental footprints. Some measures can include responsibly sourced materials, decreased water and energy usage, lower carbon footprints and enhanced biodiversity that benefit our customers, our employees, our surrounding communities and the environment.

• Seek and deploy innovative technologies to future-proof and enhance the resilience of our buildings to unpredictable changes in the climate or the environment.


• Use a global Environmental Management System (EMS) that is implemented, maintained and continually improved in accordance with the requirements of ISO 14001:2015.


Social Responsibility

Our focus:


• Deepen relationships with our key stakeholders by investing in our employees and partnering with our customers, communities, investors and suppliers.


Our actions:


• Engage with our employees to provide a challenging, dynamic, inclusive and diverse work environment that supports their professional development, as well as promoting a good work-life balance that prioritizes their overall health and wellness.


• Support initiatives that benefit the environment, human welfare and education. This includes skills trainings that advance workforce talent pipelines for our customers and economic development in the communities in which we operate.


• Engage suppliers, customers and employees around safety, health, and wellness.


• Preserve and promote the protection of human rights and welfare within our own business activities, as well as those of our supply chain, in accordance with our Human Rights Policy, Code of Ethics and Business Conduct, Supplier Code of Conduct, and the UK Modern Slavery and Human Trafficking Policy.


Ethics & Governance


Our focus:


• Promote strong oversight, transparency and risk management at all levels of our organization, ensuring the resilience and longterm preservation of value for our business.


Our actions:

• Maintain strong corporate governance practices through exemplary board stewardship, management accountability, and proactive risk management.

• Mitigate risk exposure and build the resilience of our portfolio to climate change, earthquakes and other catastrophic events through smart design and sighting. • Maintain high ethical standards through a strong Code of Ethics and Business Conduct, ongoing ethics training, and executive leadership that promotes a culture of integrity. • Cultivate strong stakeholder relationships through transparency, open communications, and responding to stakeholder input. • Establish clear and effective governance for ESG, set goals and establish accountability. 3 Responsible Investment Our focus: • Integrate the fundamental principles of ESG, as stated in this policy, when considering investment decisions and managing our investments. Our actions: • Incorporate ESG principles into investment analysis and decision-making processes and ownership policies and practices in alignment with our core business practices. This includes the inclusion of ESG issues within our standard Investment Committee evaluation process for all developments, acquisitions, and dispositions. • Invest in efficiency measures to enhance the operational efficiency of established assets to help our customers achieve lower costs and lower environmental impacts. • Disclose ESG principles and opportunities and seek relevant and appropriate disclosure on ESG issues by the entities in which we invest. This includes the evaluation and disclosure of sustainability risks in accordance with Articles 3(1), 4(1)a and 5 of the EU Sustainable Finance Disclosure Regulation (2019/2088). • Promote acceptance and implementation of ESG principles within our industry. Monitoring and Enforcement • Prologis seeks to proactively prevent and mitigate instances of non-compliance with this ESG policy. – If an employee or external party has an ethics-related question or concern, they are encouraged to contact the Ethics Helpline, a confidential hotline with 24-hour answering service. More information can be found in our Code of Ethics and Business Conduct. – If an employee or external party has a safety-related question or concern, they are encouraged to contact the Safety Helpline

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