Prologis includes supply chain emissions in net-zero by 2040 target

Along with its net-zero by 2040 target, Prologis has environmental goals to:

• Reach net-zero emissions from operations (scope 1 and 2) by 2030.
• Achieve 100% carbon neutral construction by 2025.
• Install 100% LED lighting in all warehouses and office spaces by 2025.
• Deploy 1 gigawatt of solar energy and supporting battery storage by 2025.

Prologis surpassed 325 gigawatts of solar power in April 2022 globally, making the company the “third-largest on-site producer of solar energy in the U.S.,” said Susan Uthayakumar, chief energy and sustainability officer at Prologis.

The report said 57% of the company’s 1 billion square feet of warehouse and office space is currently lit by LED lighting. There are also 200 electric vehicle charging stations among Prologis’ many locations.

“We are putting our 1 billion-square-foot portfolio to good use for our customers every day,” Uthayakumar said in a release. “Prologis is working with our customers to develop and implement advanced energy and climate solutions. These actions will enable us to deliver on our commitment to net-zero 10 years ahead of the target set by the Paris Accord.”

More specific emission-reduction targets

Some companies use the terms “carbon neutral” and “net-zero emissions” interchangeably. It’s generally accepted that a company can achieve carbon neutrality by purchasing enough carbon offsets even if it makes no attempts to reduce its carbon footprint. But the SBTi’s net-zero emissions standard has rigorous requirements in line with the Paris Agreement’s pathway for limiting average global temperature rise to below 1.5 degrees Celsius. 

Prologis said its scope 1 and scope 2 emissions have been carbon neutral since 2019. 

The company has been using motion-detecting LED lighting, carbon offsets, renewable energy credits, solar power and wind turbines to reduce and offset its scope 1 and 2 emissions, Prologis told FreightWaves.

But to reach net-zero operational emissions by 2030 in accordance with the SBTi, the company will have to reduce those emissions by at least 90% compared to the baseline year of 2016 before offsetting the rest.

On the path to net-zero for scope 1 and 2 emissions, Prologis set an interim target to reduce them by 21% by 2025, using 2016 as the baseline year. The company has also reduced scope 3 emissions by 38% compared to 2016, according to the report.

Many companies have set net-zero emissions targets for 2040 or 2050. However, it is less common to see companies set short- and medium-term targets with realistic pathways and strategies to reach those long-term goals.

Click here for more FreightWaves articles by Alyssa Sporrer.

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