Can you talk about how Prologis decided to take leadership in the industry and your personal background that led you to this space?
A bit of context to start with—I spent 16 years at Schneider Electric, a company known for its work in decarbonization and energy management. Schneider was focused on energy efficiency long before sustainability became the hot topic it is today. I developed a perspective that sustainability is common sense—use fewer resources, leverage data to drive decisions, and the outcome benefits both the world and the profitability of the company. For me, climate change is real, and as someone who follows science, I understand the real costs and disruptions and extreme weather associated with rising temperatures.
When I started working at Prologis, with its 1.2 billion square feet of space and growing, I saw an opportunity. How could we help decarbonize the company and its impact on supply chain? Our CEO, Hamid, was fully on board with the idea of leading the industry in this effort, not only because it was the right thing to do but also because it made business sense.
It is not enough to just want to be sustainable; it has to be a business differentiator, creating new revenue streams that drive the desired outcomes. That is the innovative thinking we need—deploying capital efficiently in green technology and finding ways to make sustainability work for both the business and the environment.
Prologis has committed to achieving net-zero emissions by 2040, and you’re working towards one gigawatt of solar and storage capacity on your buildings. Can you tell me more about these goals and your progress?
When we decided to lead in decarbonizing the supply chain industry, we began by analyzing where our emissions were coming from.
We found that 99.8% of our emissions came from Scope 3, with 69% related to customer energy use in our premises and 31% from the embodied carbon in the construction of our buildings. Scope 3 is the hardest to decarbonize because it’s not fully within our control—we need to collaborate with customers and suppliers.
We set an ambitious goal to achieve net-zero emissions across our value chain by 2040. We are well on track to meet this goal. We previously set a goal to achieve 100% carbon-neutral construction by 2025, but we know that simply aiming for carbon neutrality doesn’t remove emissions from the atmosphere. To generate meaningful emissions reductions and, ultimately, reach net zero, we need to fundamentally change how we build . We are adopting new materials, designing roofs to support energy systems from the start, and optimizing electrical systems for renewable energy and fleet electrification. We have already achieved a 25% reduction in Scope 1 emissions, a 99% reduction in Scope 2, and a 29% reduction in Scope 3 from our 2019 baseline.
You’ve mentioned how essential collaboration is in achieving your sustainability goals. Can you expand on how you’re working with customers, suppliers, and policymakers?
Collaboration is absolutely critical because we cannot solve this problem alone. We work closely with our customers by developing and operating renewable energy systems that provide them with access to clean energy at grid prices. This not only reduces our Scope 3 emissions but also helps them achieve their Scope 2 targets. We are collaborating with large multinational customers like Maersk, Pepsi, as well as smaller companies, to help them integrate sustainability into their operations.
We are also working with policymakers and utilities to drive decarbonization. For instance, we have been in discussions with the Department of Energy and the Department of Transportation about building green corridors, leveraging our facilities to enable a lower-carbon logistics network. Collaboration with suppliers is another key aspect—whether it is steel from ArcelorMittal or cement from Holcim, we partner with companies that have a clear path to reducing emissions in their materials.
We also engage with academic institutions like MIT and Stanford, testing new materials in their labs before deploying them at pilot sites. And through our venture arm, we invest in early-stage technologies like SolarCycle, which deals with the end-of-life management of solar panels, ensuring that we are prepared for the full lifecycle of the technologies we deploy.
In terms of logistics and supply chain development, what are some of the challenges you face, and how are you addressing them?
One of the biggest challenges is the varying levels of awareness and commitment to sustainability among our customers. Some are eager to decarbonize their energy use, while others don’t see the immediate benefit, which requires ongoing education and dialogue. Another challenge is the added cost. As we push to build lower emission warehouses, the construction costs are higher , which can create tension when it comes to maintaining competitiveness.
That said, we are looking to build the new standards at a cost that is better than others in the market can due to our scale and are future-proofing ourassets. Customers and investors want assets that are resilient, built to Prologis’ standard and compliant with regulations, so we need to look at this from a long-term value perspective. And yes, it is a constant process—bringing people along on the journey, evaluating cost and benefits, and aligning business strategies with sustainability goals. We are also exploring alternate technologies like hydrogen, fuel cells, small modular reactors (SMR) and other innovative solutions that can transform how we think about energy in the future.
Prologis offers a range of innovative energy solutions. Can you highlight some of the key ones?
We are doing a lot in this space. First, we generate renewable energy, which we provide to our customers and local communities, particularly those that are disadvantaged and often pay the highest energy costs. By generating solar power on our rooftops, we can offer this energy at a lower cost to communities that need it most.
We also provide energy storage solutions, both for our customers and grid scale for utilities. Storage is essential for ensuring energy resiliency, especially as we transition to more renewable energy sources. Additionally, we are investing heavily in fleet charging infrastructure. As our customers are transitioning to electric trucks at our facilities, or third-party locations, these facilities need charging, and we have created charging solutions that can handle high volumes. For example, our Denker charging depot in Southern California can charge 300 trucks per day, with 96 trucks charging simultaneously. It’s an incredible feat of engineering, especially given the grid limitations, currently powered by a 9 MW microgrid.
We are also excited about our carbon-neutral certified warehouse in Eindhoven, Netherlands. It is the first of its kind. We’ve been deploying cutting-edge technologies, and it is a great example of where the future of logistics buildings is headed.
How is ESG integrated into Prologis' overall strategy, and how are your stakeholders involved?
ESG and sustainability is embedded in everything we do at Prologis. Our ESG team reports to me, and our Energy, Mobility, and Sustainability divisions also report to me. Every investment decision goes through an ESG review, where we assess emissions, community benefits, and how we can make each project better from both a decarbonization and social impact perspective.
Our ESG metrics are tied to performance bonuses, ensuring that the entire company is aligned with our sustainability goals. Community service and volunteerism are also core parts of our ESG strategy—we give employees the time and resources they need to contribute to their communities. Our commitment is recognized externally as well. We are in the top 10% of global ESG companies and have been on the Dow Jones Sustainability Index for five consecutive years. For us, ESG isn’t a marketing tool—it is a business imperative, and we always strive to follow through on our promises.
On a more personal note, you’ve had an impressive career leading sustainability initiatives. How has your experience shaped your leadership at Prologis?
I have always been driven by the desire to leave things better than I find them, whether it’s my home or the environment. I am deeply affected by issues like biodiversity loss and climate change, and this passion has guided my career. Early on, I learned that while I can have personal convictions, I need to leverage my skills and experience to make meaningful change on a larger scale with economics in mind.
Throughout my career—whether it was leading P&Ls, driving energy efficiency, or driving decarbonization using technology—I developed skill sets that are uniquely suited to the challenge of decarbonizing the built environment. When I came across Prologis, with its focus on logistics and real estate, I saw an opportunity to apply everything I have learned.to make an impact.
