Letter s  Overview   Ahead of What’s Next  Sustainable Logistics   Our Inspired People  Resilient Communities   Appendix TCFD disclosure Prologis’ approach to identifying and managing For our SBT, we have received validation from the Science Dynamic Risk climate-related risks and opportunities aligns with the Based Targets initiative that our target to achieve net zero Oversight recommendations of the Task Force on Climate-related greenhouse gas emissions across our value chain (Scopes Process Financial Disclosures (TCFD) and encompasses: 1, 2 and 3) is aligned with a 1.5 degree Celsius scenario. Our − Dynamic risk management strategy focused on resilience updated SBT guides our transition to a low-carbon future by − Evaluating physical climate risk exposure at the asset reducing GHG emissions across our operations, portfolio of Board Risk level using science-based climate scenarios assets and throughout our value chain. Oversight Management Governance Framework − Following a Science Based Target (SBT) for determining The organization’s governance around climate-related risks GHG emissions reduction targets across Scopes 1, 2 and and opportunities. 3 emissions Prologis works to maintain portfolio resilience for its − Risk, including climate-related risks, are part of the Management customers and stakeholders. This commitment focuses Prologis board’s oversight responsibility. Board updates Executive Committee have focused on Prologis’ climate-related physical Oversight on acute, near-term risks such as hurricanes and flooding risk assessments, coastal risks, GHG reductions, the as well as longer-term risks resulting from the changing expansion of our sustainability offering for customers climate. We site, develop and maintain assets with a long- (e.g., solar installations, etc.), and new and emerging term ownership horizon in mind and a focus on delivering climate-related disclosure requirements. business continuity to our customers. Looking forward, we continue to work with third parties on climate-related Our chief legal officer and general counsel oversees the scenario analysis to evaluate the exposure of our global Risk Management team. Our chief energy and sustainability assets to physical, natural hazards across our portfolio, officer reports to the company president and oversees our and to ensure we continue to be prepared for changes Energy, Mobility, Sustainability and ESG teams, with broad in frequency and severity of extreme weather events. In support and engagement across the entire organization. addition to being a listed TCFD supporter and having TCFD- One example is our structured Investment Committee aligned public disclosures, we have strong engagement process, overseen by our Executive Committee, that requires from our executive team and board members in evaluating risks and ESG considerations, including the compliance climate-related risks through briefings by the ESG, of each proposed investment (above a certain threshold) Accounting and Risk Management groups, and a robust with our net-zero-ready building design standards for new program to track our efforts through metrics and targets. developments. 61