Letter s  Overview   Ahead of What’s Next  Sustainable Logistics   Our Inspired People  Resilient Communities   Appendix Supply chain responsibility We work to manage and mitigate risk in our supply chain. Our Vendor Optimization team evaluates opex vendor performance in the U.S. across four metrics: customer Our procurement spend is divided into three categories: satisfaction, Prologis satisfaction (including adherence opex, capex and development. Opex (operational to our Supplier Code of Conduct), responsiveness to expenses) includes the services we need to operate our customer tickets and compliance with service-level distribution centers and offices. Capex (capital expenses) agreements. In 2023, based on these metrics, we includes expenses related to maintaining and improving reviewed and refined this vendor pool to improve quality our properties. Development includes the goods and and achieve significant operational cost savings. services we need to grow our business — to develop and build properties. Our Supplier Code of Conduct outlines our expectations for supplier practices, including ESG-related practices and We purchase goods and services directly from our tier the use and conduct of subcontractors. Suppliers must: 1 suppliers who, in turn, purchase goods and services − Prohibit the use of involuntary and child labor. from our tier 2 suppliers. Language in our purchasing and − Provide a safe and healthy work environment, free of engineering, procurement and construction agreements discrimination and harassment. Significant Procurement Categories states that suppliers must not procure, incorporate or utilize any part or equipment that is manufactured from − Reduce energy and water consumption and implement − General contractors – the companies that build and upgrade any country or region suspected of using — or known waste-minimization programs. our distribution centers. (We select general contractors to use — forced or child labor. Tier 1 suppliers are based on competitive pricing, past performance and responsible for tier 2 supplier compliance. An independent third party evaluates and screens safety performance. All our contractors are required to be potential suppliers based on their adherence to our approved in Avetta, a third-party safety prequalification and standards, including their responses to ESG questions on compliance program.) Our procurement team leverages Prologis’ scale to secure topics such as sustainable sourcing and human rights, in − Steel joists and decking – crucial to warehouse favorable pricing and lead times while mitigating supply our standard RFP. construction chain risk. We pass this value on to our customers. As − Electrical and lighting – used in both construction an example, in 2023 we selected a new vendor for dock For our approach and performance on employee and and operations equipment to reduce costs, increase the availability of contractor safety, please see Employee health and safety . − Roofing systems – our new construction standards specify For information on our approach to supplier diversity, that roofs be solar ready replacement equipment and improve lead times. Also in − Heating and cooling systems – including the maintenance 2023, we sourced 30-year solar-ready roofing, switchgear please see Diversity, equity, inclusion and belonging . of these systems and heat pumps at below-market prices and improved − Facilities management services – landscaping, snow lead times, in support of our net-zero goal. removal, paving, painting and more 20