Sustainability is more than a competitive advantage

Jamie Harding of Reuters Supply Chain (formerly eft) recently sat down with Simon Cox, Head of Sustainability at Prologis, to discuss the increasingly important topic of sustainability. Here’s what he had to say.

 

What is Prologis’ approach to sustainability?

Interest in sustainability has increased exponentially in recent years and will no doubt continue to in the years to come. We envisage that there will be an imminent regulatory requirement for zero carbon buildings. We want our buildings to not just excel in terms of legal standards today, but we want our ten-year-old buildings to be the best they can be in terms of energy efficiency and sustainability standards. We want our buildings to be future proof.

To illustrate this, on a recent building refurb, energy performance was discovered to be better than when the structure was originally built. This demonstrates our approach in terms of investing for the long term, and our aim to retain value in the long term.

 

To what extent do you feel sustainability is now commercial advantage?

Sustainability has moved beyond simply a commercial advantage; it is now essential… business critical. For Prologis specifically, it’s about the customer that the occupies our buildings and their experience. There are different aspects to the advantages gained from an approach that is sustainable by design.

On one level, operating costs reduce in a sustainable building as a result of lower energy demands. But what’s not always recognised is the impact on health and wellbeing. To serve as an example, one of the primary things you can do to reduce energy consumption in a warehouse, is to put in lots of roof lights. The increased daylight in the warehouse and in the associated office areas, makes the building a better place to work. In effect, there’s a clear and demonstrable link between sustainability and wellbeing, making sustainability an important factor in workforce motivation. As such, sustainability has an effect on both the top and bottom line.

In addition to this, there are a number of ways we help our customers deliver a culture that appeals to workers and helps to strengthen their employer brand. For instance, as part of our commitment to sustainability, one of the things we do as our customers’ property partner is make a donation to the charity, Cool Earth, helping them to protect the rainforest.

What we’re doing is reflecting the change in society. We build warehouses that are ready for the next generation, who want to work for companies that do the right thing. Globally, we are seeing a move towards purpose-based products. It’s no longer enough to simply make something that cleans the kitchen, for example, it’s got to have a broader purpose. It’s got to be environmentally responsible. It’s the same for us as a business that develops and owns sustainable buildings.

Beyond, identifying how to build a compelling business case around sustainability, Simon and I discussed how to define sustainability, what metrics to attribute to this concept, and how sustainability and employee wellbeing are positively correlated.

If you’re interested in learning more about logistics sustainability and the Prologis approach, you can access the full report here.