Prologis Adopts LEED v4 Volume Program

Prologis is launching the first LEED v4 for Core and Shell Volume Program for the US logistics real estate sector.

The company says that this program includes more rigorous standards than the previous LEED Volume Program, launched in 2014. Prologis was the first logistics real estate developer to participate in that program.

Prologis will implement strategies for achieving high performance in sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality for its projects in the US, Latin America, Canada and Italy under the LEED v4 for the Core and Shell Volume Program.

Edward S. Nekritz, Prologis chief legal officer and ESG head, says the company’s long term focus on sustainability will give it “a first-mover advantage,” which will enable it to deepen relationships with customers and partners and attract and retain the industry’s most talented professionals

“The Volume Program streamlines the certification process at a substantially lower cost than would be possible with individual building assessments,” Nekritz said in a prepared statement. “Since our initial participation in the 2014 program, we have saved $24 million when compared to the costs for non-Volume certification.”

Prologis has a history of pursuing sustainable practices. In 2008, it designed all new construction to certification standards where recognized sustainability rating systems were available. In 2020, it set a goal that 100% of new developments and redevelopments will achieve sustainable building certification each year.

Prologis had 143 million square feet of sustainably certified space across 397 projects in 18 countries at the end of 2019. 

While financial considerations may make it more difficult for smaller companies to produce sustainable properties, Matt Root, a senior project manager at the environmental consulting firm Integrated Eco Strategy thinks wider adoption of sustainable services and products will drive costs down. “As newer technologies gain a foothold and become more popular and see a greater market demand, the manufacturers find ways to make them more efficiently and less expensively,” he says.

Environmental investing can pay off in many ways. Research from Realty Mogul says investors are more likely to target and commit to real estate ventures that have a positive social or environmental impact.

The report surveyed the crowdfunding platform’s community of investors, with more than 850 responding to the survey. According to the results, 70% of investors are more likely to invest in strategies that include sustainable technology upgrades, and 46% of investors are even willing to accept a lower return if the investment includes a positive environmental impact.