PIIMA & GRESB: Performance Component [English]

February 2021
PIIMA & GRESB Webinar Series Part 2 of 3
“How to Measure What Matters and the GRESB Performance Component”

© 2021 GRESB BV
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This presentation and the statements made in the participant training event (the “training”) that it accompanies reflect the opinions of GRESB and not of our
members. The information in the presentation and training has been provided in good faith and is provided on an “as is” basis. We take reasonable care to check
the accuracy and completeness of materials prior to their publication. However, the information in the presentation has not been independently verified. In addition,
the statements in the presentation and in the training may provide current expectations of future events based on certain assumptions. The variety of sources from
which we obtain the information in the presentation and training means that we make no representations and give no warranties, express or implied as to its
accuracy, availability, completeness, timeliness, merchantability or fitness for any particular purpose.
The presentation and training are not provided as the basis for any professional advice or for transactional use. GRESB and its advisors, consultants and sub-
contractors shall not be responsible or liable for any advice given to third parties, any investment decisions or trading or any other actions taken by you or by third
parties based on information contained in the presentation and/or training.
2

3
 12:00 to 12:05 – 1. Welcome and Introduction (Dan Winters, Head of Americas, GRESB)
 12:05 to 12:15 – 2. ESG Real Estate Performance background (PIIMA)
 12:15 to 12:30 – 3. Performance Component (Victor Fonseca, Analyst, GRESB)
 12:30 to 12:45 – 4. Success case study Prologis (Ethan Gilbert, ESG Program Manager, Prologis)
 12:45 to 12:50 – 5. Conclusions and recommendations
 12:50 to 13:00 – 6. Q&A
A g e n d a

4
 DAN WINTERS, Head of Americas, GRESB
1 . W e l c o m i n g a n d I n t r o d u c t i o n
1. Welcoming and

Assess and benchmark ESG
performance of real asset portfolios,
providing standardized and validated
data to capital markets.

Fase I Fase II Fase III
2009 – 2014 2015 – 2019 2020+
Market
development
Adoption of the
industry
Performance
metrics
G R E S B : 1 0 y e a r s o f i m p a c t

7
Annual ESG Performance Benchmarking and Disclosure for Real Asset Portfolios
|
GRESB Reporting Framework
2009
Assesses the
ESG performance of
property companies,
fund managers and
developers
2016
Assesses the
ESG performance of
infrastructure assets
and portfolios
2020+

Industry Supporters
Data / Service Providers
Real Estate
Associations
Institutional
Investors
ESG framework tailored to real estate
Access to non-financial data
Improved risk management / due diligence
Engagement tool  investment managers
Impact metrics / data
Understand ESG risks/opportunities
Identify industry best practices
Inform internal improvement plans
Communicate metrics [internal/external]
ESG expertise
Industry leadership
Global alignment
Regulatory navigation
90
25
150
1230
Business development
Market transformation
Industry leadership
Brand affiliation
Private Equity Firms
Listed Property Companies

9
Aspectos a la medida
GRESB
Management
Components
GRESB
Performance
Components

private equity | REITs cotizados | JVs | fondos soberanos de inversión | directo | gobiernos
1,230 [2020]
# Funds by Manager
CBRE Investors = 42
Aberdeen = 29
Nuveen = 23
Aviva = 19
PGIM = 17
UBS = 16
LendLease = 16
Charter Hall = 15
Greystar = 15
DWS = 15
AXA = 14
Credit Suisse = 14
Invesco = 13
Frasers = 12
Legal & General = 12
Prologis = 10
AEW [US+EU] = 10
Tishman = 10
M&G = 10
Blackrock = 9
LaSalle = 9
Goodman Group = 8
Grosvenor Group = 8
Hermes = 7
Harrison Street = 6
Manulife = 6
Brookfield = 5
Clarion = 5
JPMorgan = 5
Blackstone = 4
P a r t i c i p a c i ó n g l o b a l : B e n c h m a r k i n g A S G
private equity | listed REITs | JVs | direct | government

12
Enfoque ISO
PLAN
DO
CHECK
ACT INDICATOR

location data [required] | consumption data [as available]
Asset Data : Required for GRESB Performance Score
Property Manager
Asset Operator
Asset
Owners
Global REITs
Private Equity
Asset
Capital Markets
Investors
Lenders
ESG
Data
Company
Fund Manager
Portfolio Manager
13

14
 VANESSA SILVA CASTRO, Sustainability and Risk Management
Manager, PIIMA
2 . E S G P e r f o r m a n c e I n d i c a t o r B a c k g r o u n d
2. Performance Indicators

15
B a c k g r o u n d
“I believe that the pandemic has presented such an existential crisis – such
a stark reminder of our fragility – that it has driven us to confront the global
threat of climate change more forcefully and to consider how, like the
pandemic, it will alter our lives.” - Larry Flink –BlackRock Chairman & CEO
• ESG is now clearly a measure that’s being looked at in deals across
the board, not just certain industries or verticals.
• ESG negative businesses with high carbon footprints will be looking
to spin out those businesses, but may struggle to find buyers

Transformational Path – Real Estate decarbonization & Climate forecasts
KPIs asset level
(energy, water,
waste, GHG
emissions):
• Owner
• Tenant
KPIs Portafolio
Level
• Comparison Vs
Company and
peer level
• Establish ESG
changes within
assts and
portfolio
Resilience and
Climate Forecasts
• Financial
Impacts
• New technology
opportunities
(Net Zero/Net
Positive)
• Resilience
Programs
VULNERABILITY RISK VALUE
1.
2.
3.
B a c k g r o u n d

Operations
• Energy and water costs
• Asset level adaptation
• Employee health
Supply change
• Interruption
• Costs
Indirect Impacts
• Rent value
• Liquidity
• Assurance
VULNERABILITY RISK VALUE
Income balance
• Loss of capital
• Operational costs
• Labor costs
• Legal costs
• Insurance costs
Transition
• Carbon costs
• Litigation
• Reputation
• Technology
B a c k g r o u n d

18
P e r f o r m a n c e I n d i c a t o r s D e f i n i t i o n s
Indicator: data or set of data that allow an
objective measurement of the evolutions of a
process or an activity.
Performance: result of a comparative
measurement.
Energy
Water,
Waste &
GHG
New KPIs
Financial Risks
due to Climate
Change
Measure,
analyze,
improve,
report
 Saving
 Aligment
 Mitigation
 Transparency
 Responsibility
 Resilience
 Opportunities

19
B a c k g r o u n d
https://gresb.com/performance-targets-metrics-measures/
SDG 13 Climate
Action
Strengthen resilience
and adaptive
capacity to climate-
related risks
SDG 7 Afordable
and clean energy
Improve energy
efficiency and
increase the
percentage of
renewable energy

20
 VICTOR FONSECA, Analyst Real Estate, GRESB
3 . P e r f o r m a n c e C o m p o n e n t G R E S B

21
Agenda
 GRESB Real Estate Assessment Structure
 Performance Component
o Entity level and asset level reporting
 Targets Aspect
o T1.1 – Portfolio improvement targets
 Tenants & Community Aspect
o TC2.1 – Tenant satisfaction survey
 Data Monitoring & Review Aspect
o MR1 – External review of energy data
 Asset-level reporting
o Asset Spreadsheet
R e a l E s t a t e A s s e s s m e n t

The GRESB Real Estate Assessment is the
global standard for ESG benchmarking and
reporting for listed property companies,
private property funds, developers and
investors that invest directly in real estate.
22

The Performance Component measures the entity’s asset portfolio performance, composing of
information collected at the asset level and fund level. It is suitable for any real estate company
or fund with operational assets.
PERFORMANCE COMPONENT
23

MANAGEMENT COMPONENT DEVELOPMENT COMPONENT
Real Estate Benchmark (standing investments)
Development Benchmark (new buildings)
24

ASSESSME
NT
MANAGEMENT
DEVELOPMENT
PERFORMANCE
Leadership
Policies
Risk Management Reporting
Risk Assessment
Targets
Stakeholder
Engagement
Tenants & Community
GHG
Energy
ESG Requirements
Water
Waste
Building Certifications
Energy
A s s e s s m e n t c o m p o s i t i o n
Materials
Stakeholder
Engagement
Water
Waste
Data Monitoring &
Review
COMPONEN
TS
ASPEC
TS
25

P e r f o r m a n c e C o m p o n e n t
Structured in nine aspects, information submitted at fund level and asset level
Aspects
Risk Assessment
Targets
Tenants & Community
GHG
Energy
Water
Waste
Data Monitoring & Review
GHG
Energy
Water
Waste
Risk Assessment
Asset level
Targets
Tenants & Community
Fund level
26
9
2
11
14
7
7
4
10.5
5.5
Poiints

Fund level:Target Aspect – 2 indicators
Aspects
Targets
Tenants & Community
27

Aspects
Targets
Tenants & Community
28

Aspects
Targets
Tenants & Community
Intent – T1.1 guide entities and their employees
towards measurable improvements and are a key
determinant to integrate ESG into business
operations. GRESB assesses the existence of credible
targets, not the ambition level of these targets.
29

Fund level:Tenants & Community– 9 indicators
Aspects
Targets
Tenants & Community
Data Monitoring & Review Intent – TC2.1 examines whether and to what
extent the entity engages with tenants regarding
their satisfaction. Tenant satisfaction surveys help
entities understand critical issues within the
portfolio, engage with their tenants, and increase
tenant satisfaction, which may contribute to
improving retention rates and productivity.
Using widely applied tenant satisfaction surveys
should be translated into easily interpretable
metrics that can help analyze and compare
outcomes, despite the many variations between
tenants.
30

Fund level:Tenants & Community– 9 indicators
Aspects
Targets
Tenants & Community
31

Fund level: Data Monitoring & Review– 4 indicators
Aspects
Targets
Tenants & Community
32

Fund level: Data Monitoring & Review– 4 indicators
Aspects
Targets
Tenants & Community
33

Asset-level data collection
GHG
Energy
Water
Waste
Risk Assessment
Aspects
34

A s s e t S p r e a d s h e e t O v e r v i e w
<Efficiency Measures>
 Technical assessment
 Energy
 Water
 Waste
 Efficiency measures
 Energy
 Water
 Waste
<Energy>
 Reporting Level
 Data Availability
 Energy data
 Renewable Energy
<Building Certifications>
 BuildingCertifications
 Energy Ratings
<GHG>
 GHG data
 Scope 1/2/3
 GHG offsets
<Water>
 Water data
 Reused and Recycled
<Waste>
 Waste data
 Proportion by disposal
route
Asset-level data required for the following sections
35

R e p o r t i n g A p p l i c a t i o n
Reporting
Characteristics
Data Availability WHOLE BUILDING
Reporting Year From
(in the reporting
To
(in the reporting
Do not edit Mandatory Mandatory Fuels District Heating & Cooling Electricity
Date Date
Consumption
(kWh)
Floor Area Covered
(m2/sq.ft.)
Maximum Floor Area
(m2/sq.ft.)
Consumption
(kWh)
Floor Area Covered
(m2/sq.ft.)
Maximum Floor Area
(m2/sq.ft.)
Consumption
(kWh)
Floor Area Covered
(m2/sq.ft.)
Maximum Floor Area
(m2/sq.ft.)
2019
2020
Instructions Data Dictionary Asset Characteristics Building Certifications Reporting Characterisitcs Waste
Efficiency Measures Energy GHG
GHG Water
Asset Spreadsheet – Energy reporting
36

G R E S B R e a l E s t a t e B e n c h m a r k
GRESB Real Estate Score composition
37

38
 ETHAN GILBERT, ESG Program Manager, Prologis
4 . S u c c e s s C a s e S t u d y – P e r f o r m a n c e P r o l o g i s
4. Success Case Study - Prologis

Prologis Latin America and the GRESB Assessment
GRESB-PIIMA PERFORMANCE COMPONENT
Ethan Gilbert
February 24, 2021
Prologis Apodaca Building Crew, Apodaca, Mexico

Notice to recipients
• Forward-looking statements. The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, management’s genuinely held beliefs and reasonable assumptions. Such statements involve uncertainties
that could significantly impact our financial results. Words such as “expects”, “anticipates”, “should”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, variations of such words and similar expressions are intended to identify such forward-looking statements
which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes
in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial positions, returns on investments and dividends, our ability to form new co-investment ventures and
the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Some of the factors
that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic and political climates, (ii) changes in global financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated
competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring and changes in income tax laws and rates, (vi) availability of financing
and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures, (viii) risks of pandemics, including escalations of outbreaks and
mitigation measures imposed in response thereto, (ix) risks of doing business internationally, including currency risks, (x) environmental uncertainties, including risks of natural disasters, and (xi) those additional factors discussed in reports filed with the Securities and
Exchange Commission by Prologis under the heading “Risk Factors,” and (xii) if applicable, those additional risk factors set forth in the confidential private placement or offering memorandum (the “Memorandum”) of the venture or fund (“venture” or “fund”). Although we
believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations
• Third Party Information. The statements in this document incorporate third party information from sources believed to be reliable however the accuracy of such information (including any assumptions) has not been independently verified and Prologis cannot
guarantee its adequacy, accuracy, completeness or reasonableness.
• Not Investment or Financial Advice/Illiquid Investment. This document is not intended to constitute legal, tax or accounting advice or opinion or to be used as the basis for making an investment decision. Investors have no assurance of liquidity. Real estate is
relatively illiquid and redemption queues can develop. There is no guarantee that the venture will have sufficient cash to fund redemptions. The right to transfer units in the venture is subject to restrictions.
• Past Performance/Future Performance. Past performance is not indicative of future results and a risk of loss exists. There can be no assurance that the targeted returns or results will be met or that the venture will be able to implement its investment strategy and
investment approach or achieve its investment objective. Actual returns on investments will depend on many factors which are subject to uncertainty. The results realized by the venture will depend on numerous factors, which are subject to uncertainty. There can be
no assurance that the venture will achieve results comparable to those described herein or that the venture’s return objectives will be achieved.
• Non-solicitation. This document does not constitute an offer to sell or the solicitation of an offer to buy securities in any existing or to-be-formed issuer. If applicable, such offer or solicitation will only be made by means of a complete Memorandum and definitive
documentation in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended. The information contained in this document does not purport to be complete and is qualified in its entirety by the information that will be set forth in the
Memorandum, including, without limitation, information in a section titled “Risk Factors” in the Memorandum. Neither we, nor any of our advisors, agents, affiliates, partners, members or employees, makes any representation or warranty as to the accuracy or
completeness of the information herein or assumes responsibility for any loss or damage suffered as a result of any omission, inadequacy or inaccuracy contained herein. An investment in the venture would be speculative and involve substantial risks. Only investors
who can withstand the loss of all or a substantial part of their investment should consider investing in the venture. Any securities discussed herein or in the accompanying document have not been registered under the Securities Act of 1933, as amended, or the
securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws.
• Financial Conduct Authority-regulated Ventures. This document is only made available to Professional Clients or Eligible Counterparties as defined by the Financial Conduct Authority and to persons falling within the Financial Services and Markets Act 2000
(Promotion of Collective Investment Schemes) (Exemptions) Order 2001. An investment in the venture should only be made by persons with professional experience of participating in such ventures. This document is exempt from the general restrictions in Section 21
of the Financial Services and Markets Act 2000 as it is aimed solely to persons to whom the document can legitimately be communicated. Prologis Private Capital UK Limited is authorized and regulated by the Financial Conduct Authority. FRN 530724. The use of this
document in certain jurisdictions may be restricted by law. You should consult your own legal and tax advisers as to the legal requirements and tax consequences of an investment in the venture within the countries of your citizenship, residence, domicile and place of
business.
• Confidentiality. The information contained in this document is highly confidential and may not be reproduced by or distributed to any other person and may only be used to evaluate the venture described herein
• Other. Gross venture level return is net of venture level expenses but gross of venture asset management fees, acquisition fees, cash management fees and similar fees as may be applicable under the venture’s documents and incentive compensation, which will
reduce returns to the investor.
• References to market or composite indices, benchmarks or other measures (each, an “Index”) of relative market performance over a specified period of time are provided for your information only. The composition of an Index may not reflect the manner in which a
portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time. Indices are not managed by us.
• We are not a registered municipal advisor and do not provide, or intend to provide, advice with respect to investment strategies that are plans or programs for the investment of the proceeds of municipal securities. The venture does not accept “proceeds of municipal
securities” (within the meaning of Rule 15Ba1-1 of U.S. Securities Exchange Act of 1934) and if a municipal investor’s assets include proceeds, the investor will be required to make representations sufficient to support that the proceeds are excluded from the definition
of Rule 15B1a-1.
• Unless stated otherwise, all information in this document is as of 31 December 2020.
• In conjunction with all information presented in this document, you should review and consider carefully this Notice to Recipients and all applicable footnotes, definitions and assumptions in this document, including the general assumptions and performance notes in the
Appendix, as applicable. The receipt of this document by its recipients implies their full acceptance of the above statements.

Prologis ESG creates business value
Prologis Park Periferico Sur IP, San Sebastianito, Mexico
Strengthens relationships with customers, investors, employees and communities in
which we do business
MANAGING
UPSIDE
Drive revenues
• Meet customers’ needs
• Support sales and marketing
• Eco-innovation
NEAR-TERM /
MORE CERTAIN
Build reputation
• Trusted brand
• Investor value/reputation
• Employee and customer satisfaction
LONG-TERM /
LESS
CERTAIN
MANAGING
DOWNSIDE Cut costs
• Eco-efficiency
• Waste reduction
• Value chain efficiencies
Manage risks
• Regulatory risks
• Reputation/stakeholder risk
• Operational resilience

Prologis ESG creates business value
Prologis Park Periferico Sur IP, San Sebastianito, Mexico
Strengthens relationships with customers, investors, employees and communities in
which we do business
MANAGING
UPSIDE
Drive revenues
• Meet customers’ needs
• Support sales and marketing
• Eco-innovation
NEAR-TERM /
MORE CERTAIN
Build reputation
• Trusted brand
• Investor value/reputation
• Employee and customer satisfaction
LONG-TERM /
LESS
CERTAIN
MANAGING
DOWNSIDE Cut costs
• Eco-efficiency
• Waste reduction
• Value chain efficiencies
Manage risks
• Regulatory risks
• Reputation/stakeholder risk
• Operational resilience
Prologis’ environmental objectives
SDGS PROGRESS GOALS
Certifications1
143 MSF 100% (design standards)
Cool roofs2
46% globally 100% of portfolio
LED lighting 33% LED3 100% LED by 2025
Solar4
212 MW
(= power for 32,771 homes)
400 MW by 2025
Science Based Target
for GHG emission
(Scope 1, 2 & 3)
Scope 1 & 2: 4,842 MTCO2e
Scope 3: 5,038,778 MTCO2e
Scope 1 & 2: 2,682 MTCO2e to be
reduced
Scope 3: 133,963 MTCO2e to be
reduced
Note: All numbers are as of December 31, 2019 and cover the global portfolio
100% of new developments are designed with a goal of certification where appropriate and recognized sustainability rating systems are available.
Goal is to install cool roofing at 100 percent of new developments and property improvements, where feasible and appropriate, given climate factors
Percent of portfolio coverage based on floor area.
The generating capacity of solar installations is measured in megawatts (MW)
Prologis International Park of Commerce, Tracy, California

GRESB 2020 Assessment
FIBRA Prologis
#1 in the Americas / Industrial /
Listed / Tenant Controlled
Performance Component:
 Boosted by the addition of 17
BOMA Best existing building
certificates
 Focus and dedication by
regional property managers on
collecting performance data
Prologis Park Grande Bldg. 4
LEED Gold

GRESB 2020 Assessment
Prologis Brazil Logistics Venture
#1 in the Americas / Industrial:
Distribution Warehouse / Non-listed
/ Tenant Controlled
Performance Component:
 This is a joint venture partnership
with Ivanhoé Cambridge who
mirrors our strong commitment
to ESG
 Aligned with Prologis’ focus on
developing LEED certified assets Prologis Park Caxias Bldg. 200
LEED Gold

PIIMA & GRESB: Performance Component [English]

46
 Establish formal and solid protocols for the collection, analysis and continuous
improvement of data (common and leased areas)
 Develop communication, training and engagement tools with stakeholders to
improve data collection and analysis processes and create shared value
 Use the KPI as a basis for the transformation of zero carbon, of approaching the
strategies and objectives of:
o Reduction of carbon and water footprint
o Resilience and climate change
 Review the implementation of certifications to validate the asset performance
5 . C o n c l u s i o n s a n d r e c o m m e n d a t i o n s
5. Conclusions and Recommendations

Gracias / Thank you
Contact us at: https://gresb.com/contact/ www.piima.mx
Dan Winters, CRE
Head of Americas
d.winters@gresb.com
+1 202 997 3922– mobile
Jessica Díaz-Avelar
Sustainability Director
Jessica.diaz@piima.mx
+52 1 5541948584 – mobile

PIIMA & GRESB: Performance Component [English]

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