Key Takeaways
- • Prologis achieved 100% sustainable building certifications for eligible new logistics real estate development and redevelopment projects in 2025, with over 25% of its total portfolio now sustainably certified and 37% of space leased by its 25 largest customers meeting certification standards.
- • The company committed to net-zero greenhouse gas emissions across its full value chain (Scopes 1, 2, and 3) by 2040, becoming the first logistics REIT with an approved Science Based Targets initiative (SBTi) emissions reduction target in 2018.
- • Logistics real estate outperforms commercial property peers in energy efficiency; e-commerce distributed through optimized logistics networks generates 36% lower carbon emissions than traditional retail, with built-out networks delivering 50% reductions in transport-related greenhouse gas emissions.
- • Prologis integrates geographically tailored sustainable design features—including natural lighting to reduce electricity consumption and life cycle assessments applied during development—while applying an internal carbon price methodology to weigh emissions alongside cost and performance in design decisions.
- • The company is establishing portfolio-wide innovations and driving new industry standards through participation in initiatives such as the International Living Future Institute's net-zero building approach, positioning sustainability as a core growth strategy aligned with customer, investor, and community expectations.
Summary
Prologis is advancing decarbonization across the logistics real estate sector through comprehensive sustainability integration into its business model and portfolio. According to its 2025–26 Global Impact & Sustainability Report, the company achieved or was in the process of achieving sustainable building certifications for 100% of eligible new logistics real estate development and redevelopment projects in 2025. More significantly, over 25% of Prologis' entire logistics real estate portfolio now carries sustainable certifications, with 37% of space leased by the company's 25 largest customers meeting such standards—indicating substantial adoption among institutional tenant bases.
The company's decarbonization strategy is grounded in a long-term commitment announced in June 2022 to achieve net-zero greenhouse gas emissions across its complete value chain (Scopes 1, 2, and 3) by 2040. This commitment was formalized through Science Based Targets initiative (SBTi) approval in 2018, making Prologis the first logistics REIT to attain this validation. The pathway to net-zero relies on vertically integrated development capabilities that embed climate risk mitigation throughout the operational and construction lifecycle.
Prologis' approach leverages the inherent sustainability advantages of modern logistics infrastructure. Research shows e-commerce distribution through optimized logistics networks generates 36% lower carbon emissions than conventional retail models, while fully built-out logistics networks can deliver approximately 50% reductions in transport-related greenhouse gas emissions. The company capitalizes on these efficiencies by integrating geographically relevant sustainable design features into facilities—such as natural lighting to reduce electricity consumption and operational costs—and employing life cycle assessments early in the development process to model the carbon impact of building materials and operations.
To operationalize these commitments, Prologis implements an internal carbon pricing mechanism that allows development and operational teams to weigh emissions costs alongside traditional cost and performance metrics during design decision-making. This approach supports efficient capital allocation toward carbon reduction while maintaining asset competitiveness. The company is also active in driving new industry standards, participating in initiatives such as the International Living Future Institute's net-zero building approach, positioning itself as a standard-setter within logistics real estate. Collectively, these initiatives frame sustainability not as a compliance obligation but as a core growth strategy that addresses evolving customer demands for efficient, future-ready facilities; investor expectations for long-term asset performance; and community expectations for responsible development.
The company's decarbonization strategy is grounded in a long-term commitment announced in June 2022 to achieve net-zero greenhouse gas emissions across its complete value chain (Scopes 1, 2, and 3) by 2040. This commitment was formalized through Science Based Targets initiative (SBTi) approval in 2018, making Prologis the first logistics REIT to attain this validation. The pathway to net-zero relies on vertically integrated development capabilities that embed climate risk mitigation throughout the operational and construction lifecycle.
Prologis' approach leverages the inherent sustainability advantages of modern logistics infrastructure. Research shows e-commerce distribution through optimized logistics networks generates 36% lower carbon emissions than conventional retail models, while fully built-out logistics networks can deliver approximately 50% reductions in transport-related greenhouse gas emissions. The company capitalizes on these efficiencies by integrating geographically relevant sustainable design features into facilities—such as natural lighting to reduce electricity consumption and operational costs—and employing life cycle assessments early in the development process to model the carbon impact of building materials and operations.
To operationalize these commitments, Prologis implements an internal carbon pricing mechanism that allows development and operational teams to weigh emissions costs alongside traditional cost and performance metrics during design decision-making. This approach supports efficient capital allocation toward carbon reduction while maintaining asset competitiveness. The company is also active in driving new industry standards, participating in initiatives such as the International Living Future Institute's net-zero building approach, positioning itself as a standard-setter within logistics real estate. Collectively, these initiatives frame sustainability not as a compliance obligation but as a core growth strategy that addresses evolving customer demands for efficient, future-ready facilities; investor expectations for long-term asset performance; and community expectations for responsible development.
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