Letter s  Overview   Ahead of What’s Next  Sustainable Logistics   Our Inspired People  Resilient Communities   Appendix Risk management risk scenarios. We review our cybersecurity posture A Tool for Evaluating Climate Risk Effective risk management can help us achieve strong through regular participation in a third-party security Our climate risk tool helps us evaluate risks and opportunities business outcomes. Our risk assessment processes include benchmarking survey. Our IT infrastructure is externally across our portfolio. scenario testing, audit controls, probabilistic modeling and audited as part of our Sarbanes Oxley audit process, The tool uses data from a leading global reinsurer and includes input from third-party experts. Risk assessment findings are and our controls include information security standards a range of natural hazard factors and three GHG emissions reported to the executive committee, audit committee and following the NIST Framework. Our Information Security trajectories. It helps Prologis leaders assess the potential board of directors. Policy includes mandatory annual training for all impacts of more extreme climate conditions, including more employees. To our knowledge, no material information frequent and intense natural disasters. Through our use of this We use a global risk management framework to identify, security or privacy incidents occurred in 2023. tool, we can be more strategic in how we improve our assets to assess and manage risks facing our company and industry. make them more resilient. Examples include: − Climate risk : Before we acquire land or buildings, we In 2023, we incorporated assessment of future climate risk − Investment Committee : All material capital deployment evaluate vulnerability to natural hazards and climate risks hazards into our investment committee process. This expands as part of our due diligence process. In 2023, across our on the current assessment of natural hazards already being (development, acquisitions and dispositions) is subject portfolio, there were 73 instances when natural hazard performed by looking at storm, flood and heat exposures at a to review by our Investment Committee, which evaluates events resulted in insurance claims. These included timeframe of 2050 using IPCC's RCP4.5 scenario as our base investment considerations as well as environmental case. This assessment increases awareness among our capital matters; natural hazard exposures; and legal and windstorms, severe storms and extreme cold weather. deployment teams of possible future hazards and allows us to regulatory considerations. Our CEO and chairman, Our planning and risk mitigation measures protected consider potential risk mitigation measures in conjunction with president, CFO, chief investment officer (CIO), chief our customers’ business continuity: Only three of these our investment decisions. customer officer (CCO) and other senior leaders serve on events led to business-continuity-insured damage in this committee. excess of $500,000. − Cybersecurity : We use robust and constantly More Information on risk can be found in the “Risk Factors” changing measures to defend against emerging cyber section of our 10-K and in the Appendix of this report. 18