Letter s  Overview   Ahead of What’s Next  Sustainable Logistics   Our Inspired People  Resilient Communities   Appendix Metrics and targets Quantitative ESG bonus metrics in our 2023 bonus scorecard The metrics and targets used to assess and manage In 2023, ESG metrics again accounted for 10% of our bonus scorecard, including 4% for environmental/climate-related performance metrics relevant climate-related risks and opportunities. summarized in the table below. For 2024, ESG metrics will continue to comprise 10% of the bonus scorecard and will include targets for the − One of the primary metrics for assessing climate-related same three environmental metrics. risks and opportunities is Prologis’ SBT for reducing Scope 1, 2 and 3 GHG emissions. For our SBT, we have SUB-METRIC received validation of our net-zero target by the Science PERFORMANCE METRIC TARGET PERFORMANCE WEIGHTING SCORED 2023 Based Targets initiative, aligning our commitment with Solar and Storage Megawatts (MW) the ambition of a 1.5 degree Celsius scenario through a installed 1 535MW 2% 535MW commitment to net zero across our value chain (Scopes 1, 2 and 3) by 2040. % LED installed Across O&M Portfolio − In addition to measuring progress toward our SBT, (by area) 75% 1% 74% Prologis also measures progress towards enhancing % of New eligible Developments Certified the efficiency and sustainability of our assets. Metrics Sustainable (LEED or equivalent) 2 95% 1% 97% on numerous ESG-related initiatives were again incorporated into our 2023 bonus targets for all Prologis 1. Within our owned and managed portfolio. This includes approximately 20 megawatts related to properties that have been disposed of after the time of installation or assets that have been decommissioned and an acquired battery energy storage system with approximately 10 megawatts of capacity. employees and executives. In 2023, these included: 2. Due to customer requirements and/or the limitations of certain co-development agreements, a small number of projects are ineligible to receive a sustainable certification. − Solar and Storage Megawatts Installed − Percentage of LED Lighting Installed across our owned and managed operating properties (by area) − Percentage of New Developments Certified Sustainable (LEED or equivalent) Further information on our progress toward these targets can be found in our 2023-24 ESG Report and 2024 Proxy Statement. 64