Best Practice: Prologis & Boston Properties committing to Net Zero targets on scope 1-2-3

Prologis & Boston Properties: U.S. leaders in decarbonisation commitment  

Prologis and Boston Properties are two well-known names in the real estate industry and aspire to be considered a leader with respect to sustainability.  

Good practice: committing to Net Zero on Scope 1-2-3 

Both companies have successfully included Scope 3 into their Net Zero Commitment, based on the pathways used in the Science Based Targets initiative (SBTi). They include material scope 3 emissions in their target, specifically those that relate to: 

• Downstream leased assets: energy use purchased by tenants 
• Capital goods: emissions involved in construction or redevelopment of buildings 

The necessity of setting Net-zero targets including scope 3 might seem obvious to some, but US companies have been hesitant to commit to Net Zero, with only a fraction of companies committing to these goals. From a global point of view setting a scope 3 Net Zero target is not a best practice, but specifically in the US it is. 

Why it matters? 

It is imperative for REITs to incorporate scope 3 emissions into Net Zero targets, as Scope 3 frequently constitutes the majority of greenhouse gas emissions. By addressing scope 3 emissions, REITs can comprehensively assess and mitigate their entire carbon footprint. 

Engagements help fostering data sharing 

The challenge lies in the difficulties of collaborating with suppliers and customers to obtain the necessary Scope 3 measurements. Often, external shareholders are hesitant or unable to share their data due to a variety of reasons. Engagements play a pivotal role in overcoming these barriers by fostering open communications, building trust and emphasizing the mutual benefits of data sharing.