If we were a part of the James Bond series, our project finance motto might go something like: The strategy is bonds. Green bonds. While we are not starring in an action movie, we are taking action to drive sustainable and profitable business outcomes.
Our action is, in part, fueled by our Green Financing Framework, which serves as a blueprint to direct dollars to sustainability projects that drive meaningful impact. Our Green Financing Framework which we refreshed this year, fuses financial acumen with environmental responsibility. It also empowers the company, our public investment vehicles and any of our private funds to inject capital in initiatives that support our net zero action plan.
I’m proud to say that sustainable debt financing is not new to Prologis. We have a long track record of putting green dollars towards sustainable projects. In fact, we have issued 29 green bonds since 2018, worth $9.9 billion total to help fund green building design and innovation.
We’ve seen great results from our sustainable debt financing. In fact, our European Logistics Fund recently achieved an oversubscribed order book with high demand from fixed income, ESG-focused investors. The green bond issued in February 2023 generated €591,864,000, or about USD $651 million, in net proceeds in 2023, all of which was allocated to green projects. As investor demand has grown over the years, Prologis has been able raise multi-million-dollar finance deals to support green projects.
Our green financing framework supports investment in projects like:
- Sustainable buildings that lower energy usage and carbon emissions by at least 30%, and rank in the top 15% for energy efficiency or emission reduction within their respective regions.
- Renewable energy ventures and resilient power infrastructure including wind, solar, geothermal, and tidal power energy systems, energy storage, transmission, and distribution.
- Zero-carbon transportation infrastructure, like EV charging stations and transportation, as well as facilities tailored for cyclists and pedestrians.
- Procurement projects focused on utilizing recycled and low carbon building materials, including concrete, glass, steel, asphalt, and other composites.
Eligible projects undergo a rigorous evaluation process, which includes an internal committee review. That review helps ensure Prologis is investing in the right projects that deliver demonstrable environmental benefits.
Here’s how our green financing strategy works:
- The framework makes provisions for issuing bonds, notes and loans that support green initiatives.
- Investors buy our bonds, putting their money to work for projects that reflect their values and positive financial returns.
- Prologis commits the net proceeds from any Green Financing issued under the framework to design, develop and deploy eligible green projects, including green buildings, renewable energy, energy efficiency, clean transportation, and circular economy and pollution prevention & control initiatives.
Sustainable debt financing is a vital mechanism that supports our company’s ability to stay ahead of what’s next and help advance the transition to a more sustainable future. To learn more, read our 2024 Green Financing Framework.
