Prologis

Sustainability starts at home

By Erica Rascón on Oct 8, 2015 in News

Prologis, the global leader in industrial real estate, is a master of sustainable growth. With more than $56.0 billion in assets under management and 670 million square feet of real estate, the Yardi client has never been stronger.

Prologis has consistently focused on delivering quality products and exemplary service to its global customer base. The company has earned international accolades for sustainable business practices, smart management and global competitiveness.

I recently sat down with Arthur Nelson, VP Global Business Systems, for insight into their success.

Progress on a global scale

Corporate Knights Global 100 has named Prologis one of the World’s Most Sustainable Corporations for seven consecutive years. Prologis outperformed its international peers across 12 key performance indicators, demonstrating that the company’s enduring focus on sustainability is working.

“We place high value on being a responsible corporate citizen,” Nelson explained. “One key element of that commitment is developing to internationally recognized sustainable building standards including LEED, BREEAM, CASBEE, HQE and DGNB, with the goal of certification.”

In 2014, the company achieved sustainable building certifications for 27 new projects totaling 9 million square feet. The Prologis platform now boasts more than 53 million square feet of sustainable building certifications.

Resource reductions are a consistent corporate priority. By the end of 2014, 68 percent of the company’s global operating portfolio had been upgraded to energy-efficient lighting. Prologis’ rooftop solar initiative has interconnected over 112 megawatts of renewable energy since 2007. In total, energy savings from energy-efficient lighting and renewable energy systems is equivalent to 400 million kWh. Cool roofing covers more than 31 percent of the company’s rooftops, reducing energy use by up to five percent in air conditioned spaces.

In addition, Prologis has set goals to:

• Reduce energy consumption across the global portfolio 20 percent by 2020 compared to a 2011 baseline
• Connect 15 megawatts of rooftop solar each year, with a long-term goal of connecting 200 megawatts by 2020
• Reduce its operational carbon footprint 20 percent by 2020 compared to a 2011 baseline

Starting at the home office

Nelson noted that strides in sustainability go beyond the company’s industrial tenants. Prologis practices environmental responsibility in its own offices which are designed to minimize impact on the surrounding environment, from building structures to cafeteria forks.

Nelson added, “Many Prologis offices have in-house cafeterias where composting is practiced, and cups, plates and utensils are biodegradable. These details translate into real reductions of non-biodegradable waste going into landfills.”

Supplies are evaluated for quality and sustainability. The company’s recently launched “Supplier Code of Conduct” defines ethical, environmental and social principles for all supply chain partners. These standards encourage healthy working environments and safe practices for Prologis and its partners.

The firm’s comprehensive approach to sustainability and quality has led to international respect. In 2014, Prologis was ranked among Fortune’s World’s Most Admired Companies. The firm’s leading attributes include:

• social responsibility
• innovation
• global competitiveness
• financial soundness

Business management software

To stay competitive and manage its assets, Prologis relies on Yardi Voyager and its Advanced Budgeting & Forecasting and Valuations platforms. The software has improved efficiency and quality of reporting.

“Yardi’s Advanced Budgeting and valuations platforms have enabled us to manage our global portfolio with greater agility and clarity,” Nelson said. “These platforms helped us tighten up business processes and sharpen management insights, enabling us to make important decisions with greater speed and confidence.”

The company plans to upgrade to Yardi Voyager 7S to further improve its budgeting, forecasting, and valuation processes. Nelson has identified a number of benefits associated with the upcoming conversion.

“It’s going to put our users in a position where they can more efficiently do their work. That’s important because we manage more than 4,000 properties and 20,000 plus leases,” Nelson explained.

Process improvement

Before Yardi, the global commercial revenue projection process took at least seven business days. Yardi has reduced that to two and a half days. Upgrading to Yardi 7S will further cut reporting time.

“Today, we can confidently solve budgets for all of our 4,000 properties over a weekend. That’s a very big win for us,’” Nelson said.

With smarter systems in place, Prologis continues to grow while maintaining consistent standards of excellence, delivering superior deliver value to clients, and developing and managing a world-class portfolio of sustainable, high-quality facilities. To learn more about Prologis’ award-winning practices, visit prologis.com.