Prologis: Public Sector, Investors and Consumers Expect Corporate Interest in Sustainability

Nearly nine out of ten consumers experience the impacts of climate change first-hand in their daily lives and more than 40% of Europeans consider environmental aspects when making purchasing decisions. Managers of large investment funds are focusing on ESG strategies and the public sector in Western Europe is initiating 'green procurement'. Sustainability is thus becoming an essential factor for growth, regardless of sector, business strategy and target group. This is according to the findings of the Prologis 2025 Supply Chain Outlook Report.

The topic of ESG has permeated virtually all industries in recent years and is being actively addressed by companies of all sizes. "This is due in large part to new EU regulations that require and will continue to require more and more companies to submit ESG reports, but also to market expectations. Adapting to ESG principles and an increased focus on sustainability should therefore, at a minimum, be considered even by those companies not affected by regulatory requirements. For example, the recent Prologis 2025 Supply Chain Outlook Report found that 85% of senior executives at global companies see a focus on sustainability as an opportunity to gain a competitive advantage," says Martin Balazs, head of asset management at Prologis Central Europe.

According to McKinsey, the logistics sector accounts for around 7% of global emissions, with 80% of this coming from transport and 20% from warehousing. "From a company perspective, it pays to choose buildings that meet the highest energy efficiency standards in an effort to reduce the environmental impact of its own operations. For example, our latest projects are BREEAM certified and automatically incorporate the latest green solutions and technologies. This also applies to the DC3 building in Chrášt'any, which was completed last summer," explains Martin Baláž, adding: "In addition, choosing the right premises can also help reduce emissions outside the warehouse operation itself. A great example of this is the electric vehicle charging facility on site, which helps to reduce emissions during transport of goods and commuting of employees."

Prologis is making long-term investments to upgrade its existing portfolio and implement sustainable projects as part of its ambitious goal to achieve carbon neutrality by 2040. One example of a local initiative is the installation of high-efficiency heat pumps at DHL's largest distribution centre in the Czech Republic - a 100,000 m² facility at Prologis Park Prague-Jirny, which was completed last year. This installation completed a long-term project to increase the building's energy efficiency and overall sustainability, and significantly contributed to reducing its dependence on natural gas heating.

Consumers want to be greener

Sustainable and environmentally friendly solutions are also of interest to the general population. The results of a survey conducted by the consumer organisation dTest show that eight out of ten Czechs strive for an environmentally friendly lifestyle, most often through waste sorting and energy conservation. According to the PwC Voice of the Consumer 2024 survey, almost nine out of ten people (85%) feel the impact of climate change first-hand in their daily lives and prefer to consume in a sustainable way. As a result, consumers are willing to pay on average 9.7% more for goods that are produced or sourced sustainably.

Although the Consumer Conditions Scoreboard 2025 shows that the influence of environmental considerations on Europeans' purchasing decisions is declining, mainly due to economic pressure and the rising cost of living, almost half of consumers (43%) still took them into account in their decision-making in 2024. Younger generations - especially Generation Z and millennials - show a stronger orientation towards sustainability, suggesting a possible resurgence in environmentally conscious behaviour.

Prologis has also been registering a real growing interest in sustainability and ecology among its customers for some time. "Companies that lease warehouse space are increasingly demanding sustainable solutions. We offer them this both as standard in the construction process and through our Essentials platform," explains Martin Balazs.

Sustainable procurement

The World Economic Forum reports that the global public sector spends approximately $11 trillion annually, with direct and indirect greenhouse gas emissions from purchased goods accounting for 15% of global emissions. In the EU, the figure is around 10%. To support the achievement of climate targets, Member States encourage their public institutions to include carbon footprint and other sustainability factors among the criteria in their public procurement. In the Czech Republic, for example, public institutions are legally required from 2021 to take into account social and environmental aspects (environmental impact, sustainable development, life cycle of the product or service, etc.) when awarding public contracts, thus prioritising the purchase of products and services under the so-called "green procurement".

Investors allocate capital to ESG

In addition to consumers and the public sector, investors are also increasingly focusing on sustainability. A study by Morningstar Indexes shows that around 67% of fund managers, including pension managers, report that ESG principles have become a key factor in their investment decisions over the past five years. All respondents then indicated that they allocate at least a portion of their portfolios to ESG-focused strategies. According to EY data, 72% of institutional investors then conduct a structured ESG analysis when making allocation decisions.

"Whether a company is looking to raise capital, attract individual customers or win a public sector tender, investing in sustainability is clearly an investment in future growth," Martin Balazs emphasises.

Photo: Prologis Prepared by: systemylogistiky.cz