For Business Partners|ESG|Nippon Prologis REIT, Inc.

Nippon Prologis REIT, Inc.ESG

For Business Partners

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Basic Policy

As the provider of well-located, modern, efficient logistics facilities, Prologis is a component in our customers' supply chain, and we can serve to help them make progress toward their own sustainability goals. This includes working with customers to gather data on building performance that is used for reporting and to prioritize investments to improve building efficiency. Our procurement team is positioning the company to better leverage our data, scale and spend on construction, operations, capital and administrative expenses. We are working to ensure consistent standards and practices across our platform, achieve cost savings and share the resulting benefits with our customers.

We hold our suppliers and contractors to high standards. We do this initially through our Supplier Code of Conduct. Furthermore, Prologis engages with a global supply chain risk management evaluator to conduct prequalification assessments of potential suppliers to ensure they meet our standards.

READ SUPPLIER CODE OF CONDUCT

Sustainable Supply Chain Management

Prologis commits to supply chain management based on it’s the expectations of our Supplier Code of Conduct and this creates a standard known as the “Prologis Way”. Prologis defines critical suppliers based on disruption and impact to the business and customer. We actively manage our supply chain, mitigating environmental and social risks at the same time.

Supply Chain Risk Management

Prologis Japan requires suppliers to adhere to our Environmental Management System (EMS) that is verified to align with the ISO14001 international standard. More specifically, Prologis Japan establishes the following conditions in procurement.

  • Submit the ISO14001 related documents including the below before groundbreaking
    • Environmental targets setting
    • EMS organization chart with emergency contact system
    • Legal compliance check-list during construction
    • Business continuity management including feedback system in emergency
  • Report in each case of amendment of environment-related laws and regulations during contract work
  • Embed EMS items in construction process chart
  • Report the progress towards environmental targets and risks concerning complaints from communities and both natural/human-caused disasters at periodic meetings

ESG Integration in Procurement

KPIs are specified in terms of efficient use of resources as follows.

  • In applying recycled materials, list the corresponding items including their category and quantity. Target 20 percent of materials come from recycled materials and report the results upon completion of construction.
  • Recycle more than 75 percent of industrial waste from construction.
  • Procure sanitary appliances that have water-saving features with automatic sensors.