Strategic Estate Management

Speaker Notes

Slide 1: Title Slide

Slide 2: Introduction

A well-known logistics and industrial real estate firm, Prologis, has pledged to achieve net zero

emissions by 2040 in response to the urgent need for environmental sustainability. A

Comprehensive Net Zero Real Estate Transformation Strategy must be put into place in order to

fulfill this ambition. In keeping with Prologis's commitment to addressing climate change, the

strategy includes investments in renewable energy, energy-saving techniques, and cooperative

efforts with partners. In order to ensure a methodical and significant approach to achieving

Prologis's net-zero vision, this roadmap specifies essential elements, such as stakeholder

involvement, data collection for portfolio assessment, risk management, theoretical application,

evidence-based benefits, and realistic cost predictions.

Slide 3: Formulating the Strategy: Road Map

A strategic roadmap is necessary to develop Prologis' Comprehensive Net Zero Real Estate

Transformation Strategy. The first step in the process is to involve internal teams and highlight

the positive effects on work environments. Next, relationships for shared sustainability goals are

fostered through collaboration with suppliers, consumers, and local communities. Utilizing

already-existing sustainability data will help find easy connection points, and working with

suppliers and customers will guarantee that all emissions data is in line with Prologis's pledge.

Emissions audits for Scope 1, 2, and 3 will be carried out to evaluate the current property

portfolio. State-of-the-art modeling techniques will be employed to generate emission reduction

possibilities. This methodical strategy combines sophisticated modeling, data-driven decision-

making, and stakeholder cooperation to meet Prologis's challenging net-zero goal.

Slide 4: Stakeholder Analysis

The success of Prologis's Net Zero by 2040 strategy depends on a number of internal

stakeholders, including employees, operational teams, and executives. While operations teams

directly contribute to the adoption of sustainable practices, executives play a crucial role in

advocating for the initiative and assigning resources. Building a culture of sustainability within

the company requires engaged employees. Key stakeholders on the outside include local

communities, suppliers, and customers. Creating partnerships with suppliers and consumers

requires open and honest communication about common sustainability objectives that highlight

benefits for both parties. In order to achieve Prologis's net-zero ambition, it is necessary to

engage local communities by exhibiting positive environmental consequences, involving them in

sustainability projects, and gaining support.

Slide 5: Information Gathering

Prologis requires vital information on current energy use, property attributes, renewable energy

potential, energy efficiency prospects, and the costs of carbon reduction strategies in order to

develop and implement the Comprehensive Net Zero Real Estate Transformation Strategy. In

order to gather this data, one can consult government agencies and renewable energy developers

about the potential for renewable energy, conduct energy audits and studies to identify

opportunities for energy efficiency, work with contractors and energy service companies to

estimate costs, and leverage existing energy bills and records to track current consumption and

emissions. Building information models (BIMs) and property records can also be used to gather

information about the characteristics. This thorough approach to data collection guarantees a
solid basis for well-informed decision-making and efficient execution of Prologis's net-zero

project.

Slide 6: Assessing the Current Property Portfolio

The type, location, size, age, condition, energy consumption, and greenhouse gas emissions

(Scope 1, 2, and 3) of Prologis's existing property portfolio are crucial information for evaluating

the company's readiness for the Net Zero by 2040 project. Comprehensive evaluations using

building information models (BIMs), energy bills, property records, and emissions audits will be

used to collect this data. After that, high-impact properties will be prioritized for carbon

reduction initiatives based on the data gathered. In order to enable Prologis to strategically adopt

actions that are in line with the net-zero pledge and promote efficiency and sustainability across

its diversified real estate portfolio, the study seeks to identify properties that have the highest

energy usage and emissions.

Slide 7: Risk Analysis and Management

There are hazards associated with Prologis's Net Zero by 2040 plan that must be carefully

managed. The barrier of cost can be addressed by actively pursuing government incentives and

implementing a phased implementation plan. Working with reputable vendors and carefully

assessing new technologies can reduce technology risks. The risk associated with tenant buy-in is

mitigated by openly outlining the advantages and cooperating to create solutions that meet the

demands of the tenants. These risk management techniques guarantee a well-rounded strategy,

reducing monetary uncertainty and any technical failures. Prologis's proactive approach to

mitigating these risks is indicative of its unwavering dedication to surmounting obstacles and

facilitating a smooth transition to a fully net-zero real estate portfolio.

Slide 8: Theoretical Concepts and Modeling

The formulation of Prologis' Comprehensive Net Zero Real Estate Transformation Strategy

heavily relies on theoretical concepts and modeling. To forecast the possible energy savings and

greenhouse gas reductions connected to various carbon reduction strategies, energy modeling

tools will be used. For example, Prologis can use these tools to create a strategy that calls for

installing solar panels and energy-efficient lighting systems in its warehouses in order to reduce

the amount of energy they use. In order to steer decisions towards more sustainable options,

lifecycle assessment, or LCA, will also be used to evaluate the environmental impact of various

building materials and construction techniques. Prologis can maximize the environmental

performance of its real estate portfolio and make well-informed decisions thanks to the

quantitative insights provided by these theoretical frameworks and modeling tools.

Slide 9: Evidence-Based Benefits of CPS

Prologis may enjoy benefits based on empirical experience by putting the Comprehensive Net

Zero Real Estate Transformation Strategy into practice. Decreased greenhouse gas emissions are

in line with international sustainability initiatives and greatly aid in the mitigation of climate

change. Both the neighboring communities and employees may live in a healthier atmosphere

thanks to improved air and water quality. Energy-efficient actions lead to lower energy costs,

which have a favorable effect on operating expenses. Attracting environmentally concerned

customers and building a strong brand reputation are the results of a proven dedication to

environmental responsibility. As more and more workers recognize the value of working for

socially conscious companies, the effort also draws in and keeps top talent. Prologis may avoid

fines and legal ramifications by adhering to future environmental rules, which will establish it as

a proactive leader in the sector. These observable advantages highlight how a CPS helps Prologis

achieve its objectives in terms of sustainability, finances, and reputation.

Slide 10: Realistic Costs of Implementation

Realistic expenses are weighed against the long-term advantages of Prologis' Comprehensive Net

Zero Real Estate Transformation Strategy implementation. The initial outlay included costs for

staff training, adapting already-existing properties, and integrating technology. While these

initial expenses are required to meet sustainability targets, savings in the long run are expected in

the form of lower operating costs, increased property worth, and improved energy efficiency. In

addition, Prologis might gain from government funding, tax rebates, and other monetary benefits

that could offset startup costs. Prologis's commitment to achieving net zero by 2040 is financially

viable, as evidenced by the prudent budgeting and ongoing cost evaluation that promotes a

sustainable real estate portfolio.

Slide 11: Conclusion

In conclusion, Prologis is at the forefront of environmental responsibility thanks to the

Comprehensive Net Zero Real Estate Transformation Strategy. Prologis hopes to attain net zero

emissions by 2040 through risk management, careful data-driven evaluations, and stakeholder

involvement. The strategy's feasibility is emphasized by evidence-based benefits like as cost

savings and brand improvement, and decision-making precision is improved through the

integration of theoretical concepts and modeling. The reasonable prices highlight a sound

financial strategy and highlight Prologis's long-term viability of its commitment. This plan not

only helps Prologis achieve its sustainability objectives but also moves the company in the

direction of resilient, sustainable growth and environmental stewardship.

Slide 12: References

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