TRIPLE LETTER SCORE TRIPLE LETTER SCORE DOUBLE LETTER SCORE DOUBLE LETTER SCORE TRIPLE LETTER SCORE DOUBLE LETTER SCORE TRIPLE LETTER SCORE DOUBLE LETTER SCORE DOUBLE LETTER SCORE DOUBLE LETTER SCORE ® 2007 Sustainability Report TRIPLE LETTER SCORE TRIPLE LETTER SCORE DOUB LETTE SCOR DOUB LETTE SCOR DOUB LETTE SCOR DOUBLE LETTER SCORE DOUBLE LETTER SCORE DOUBLE LETTER SCORE At ProLogis, sustainability is a business approach that balances environ- mental, societal and economic objectives. We engage key stakeholders, such as customers, employees, investors and the local communities in which we operate, to solicit feedback and further our understanding of the sustainability issues that are most relevant to them. have established what we believe is a core competency in sustainable design and construction and have already achieved some notable successes in delivering high- performance properties to key customers. Company wide, we have made significant strides toward meeting the goals and objectives outlined in last year’s report. Among the recognition we have received: (cid:129) Ranked No. 1 “Most Admired Real Estate Company” by Fortune magazine for the second year in a row with top scores across all performance categories, including social responsibility and innovation (cid:129) Received multiple top awards from the National Association of Industrial and Office Properties for the development of LEED-certified space (cid:129) Presented with the Urban Design Award for 2007 by the South Bedfordshire District Council in the United Kingdom. The former brownfield site is now ProLogis Park Dunstable, which also received the BREEAM ‘Excellent’ rating for environmental performance (cid:129) Received CASBEE Osaka ‘A’ grade certification for two distribution centers in Japan; ProLogis Parc Maishima II and ProLogis Parc Osaka II ProLogis is focused on becoming the global leader in environmental best practices. We consider sustainability and climate change to be fundamental issues and understand the importance of actively managing the impact of both our day-to-day operations as well as our development business. The creation of our first report was an illuminating experience. Not only did we begin to monitor our global activities, we furthered our existing sustainability objec- tives by implementing industry-approved methods for It has been gratifying to see how ProLogis associates future data collection. worldwide have embraced our programs and have Our efforts have also helped us gain a better under- become ambassadors for change – communicating the standing of potential impacts of climate change and how importance of our efforts throughout their local markets the depletion of resources can disrupt world economies. and to others within their communities. We welcome Consumers catch a glimpse of this dynamic when they your feedback and look forward to sharing additional fill their gas tanks or pay their utility bills. At the same results with you in next year’s report. time, real estate developers are noting more stringent building codes and minimum energy performance standards that have led to higher construction costs. In addition, our reporting helps us stay focused on progressing our CSR initiatives – such as installing renewable energy systems or requiring minimum envi- Jeffrey H. Schwartz ronmental construction standards. We are fortunate to Chairman and Chief Executive Officer 2 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T S U S T A I N A B I L I T Y M I S S I O N Our mission with regard to sustainability is straightforward: to be the leading global provider of sustainable distribution facilities and to create an optimal balance between shareholder value, the environment and corporate social responsibility. To ProLogis, sustainability is a business approach that recognizes economic, environmental and social objectives. It defines who we are and how we operate. We strive to retain the trust and support of our investors, customers, employees and the communities in which we operate and to manage our business in a way that benefits all of our stakeholders. R E P O R T G U I D E I N D E P E N D E N T A S S U R A N C E S TAT E M E N T S U P P L E M E N T This is the second corporate sustainability report OpinionOn the basis of the method and scope of work produced by ProLogis. It is global in scope and covers our undertakenand the information provided to us by ProLogis: activities in North America, Europe and Asia for the full MaterialityNothing came to our attention to suggest year ended December 31, 2007, unless otherwise noted. that significant material issues for the company have The basis for reporting on other matters specific to been omitted from the scope of the Report. We recom- the operations of our business, including joint ventures, mend that ProLogis consider discussing the following subsidiaries, leased facilities, outsourced operations areas in more detail in future reports: health and safety and other entities that can affect comparability from performance indicators, the implications of the Foreign period to period, can be found in ProLogis’ Annual Corrupt Practices Act and issues around labor standards Report on Form 10-K, which is filed with the Securities for suppliers and contractors in emerging markets. and Exchange Commission. CompletenessWe are not aware of any material This report is intended to provide information about reporting units which have been excluded from the the most significant sustainability-related impacts that consolidated data, beyond those specified in the scope arise from our business activities and is focused on of the Report. Nothing has come to our attention that those for which we have the greatest degree of control causes us to believe that the data have not been properly or influence. By identifying and reporting on the most collated from information reported at operations level. material issues to ProLogis and our stakeholders, we In the future, ProLogis should consider explicitly linking ensure that our reporting remains relevant and useful. its identification of material issues to stakeholder feed- We are pleased to report that as of December 31, back to ensure that concerns from all stakeholders are 2007, there have been no re-statements of information being addressed by the company. The introduction of provided in previous sustainability-related disclosure. a systematic approach to giving and reporting on chari- In addition, the scope of reporting related to our total table donations and community support activities at carbon footprint has been expanded to include interna- corporate and operations level should be a priority for tional data; in 2006, we only reported on the CO2 the coming year. We found evidence that appropriate emissions resulting from our U.S. business operations. systems are in place for monitoring and gathering To the extent possible, we have included data from information on relevant management arrangements internal resources or with the help of our business and consolidated performance. partners. When original data was not available, we ResponsivenessWe reviewed evidence of a variety of relied on third-party sources for estimates. We also mechanisms in place for responding to key stakeholders have engaged a third-party assurance provider to assist such as investors, employees and customers at group in expanding the scope and level of detail included, level and some examples of engagement mechanisms as well as in developing and refining data collection for additional stakeholders at the operational level. methodologies for this and future reports. We note ProLogis’ strength in conducting systematic This report incorporates the most recent G3 dialogue with customers and believe that this example Guidelines as released by the Global Reporting Initiative could be used to develop more systematic engagement (GRI) as a general framework for this report. GRI is mechanisms with other stakeholders. Looking forward, an international, multi-stakeholder network through we recommend setting group-wide targets around which a recognized sustainability reporting framework social aspects of performance, particularly with regard has been developed. This report has been externally to employee development, community interaction assured and GRI-checked as meeting the requirements and supplier standards. for GRI’s Application Level “B+”. Questions or feedback? Please contact ProLogis’ Investor Relations department at 1-800-566-2706. csr network ltd U.K. March 2008 Jon Woodhead, Director Todd Cort, Project Manager 4 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T This 2007 ProLogis Sustainability Report has been S T A K E H O L D E R C O M M U N I C A T I O N F R A M E W O R K subjected to independent assurance by csrnetwork. We communicate openly and in good faith with our In conducting the assurance, csrnetwork evaluated stakeholders and encourage honest feedback from the Materiality, Completeness and Responsiveness of them. This is obtained through active outreach including the Report in line with the guidelines of the AA1000 customer satisfaction surveys, group and one-on-one Assurance Standard as well as the requirements for investor meetings, industry forums, media interviews, reporting at the B+ level for the Global Reporting quarterly earnings calls, employee training sessions, Initiative G3 guidelines. The full draft of this assurance public planning meetings and meetings with vendors and statement, including the scope of the assurance suppliers. Additionally, we provide departmental contact process, responsibilities, findings and recommendations, information on our corporate website, www.prologis.com can be found at: http://ir.prologis.com/investors/sustainability.cfm csr network ltd U.K. April 2008 K E Y S T A K E H O L D E R E N G A G E M E N T We also respond to incoming inquiries. They can originate from local communities seeking volunteers, from third-party organizations looking for information about ProLogis’ plans to address climate change, such as the Carbon Disclosure Project and KLD Analytics, and from individual or institutional investors trying to better understand our business operations. These efforts have helped us understand and address the needs of our stakeholders. Taking this a step fur- ther, we actively publicize our sustainability goals and We identify our key stakeholders as any person or group achievements and have completed a number of strategic of people who may affect, or be affected by, ProLogis’ stakeholder engagement activities, including: business operations. This includes customers, investors, planners, non-governmental organizations, governmental agencies, suppliers, employees and the communities in which we operate. All of these entities have an inter- est in ProLogis’ sustainability efforts and are therefore expected to find value in this report. As the ultimate beneficiaries, stakeholders’ priorities were the key driver for determining report content. In order to define the content for our 2007 sustain- ability report, ProLogis associates who interact with various stakeholders met with external consultants to establish a framework for determining the most important topics. The group then assessed which of those topics we have some degree of control over, since those are the areas where our resources can best be deployed for bringing about the desired results. • Specific investor targeting analysis via Thomson Financial, a leading global financial information company, to identify U.S.-based socially responsible investors • Registering for the report alert service through CorporateRegister, the world’s largest online directory of company-issued CSR, Sustainability and Environmental reports • Developing a “Sustainability Champion” program, wherein each ProLogis office will have a designated individual charged with helping to implement ProLogis’ environmental initiatives in that office, collecting information on sustainability efforts and participating in quarterly conference calls to share ideas with other Sustainability Champions P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 5 GRI Content Index DMA EC EC1 EC2 EC6 EC7 EC8 DMA EN EN1 EN3, EN4 EN6, EN7 p16 p18 p16 p18 p18 Disclosure on management approach Direct economic value generated and distributed Financial implications, risks and opportunities due to climate change Policy, practices and proportion of spending on locally based suppliers Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation Development and impact of infrastructure investments and services provided primarily for public benefit Disclosure on management approach Materials used by weight or volume p15 p8 p8 p8, 11 Direct and indirect energy consumption by primary energy source p8 –11 Use of energy-efficient or renewable energy initiatives to achieve direct and indirect energy reduction requirements; reductions achieved Total direct and indirect greenhouse gas emissions by weight Total number and volume of significant spills EN13, EN14 p9, 11 Strategies, current actions and future plans for managing impacts on biodiversity; habitats protected or restored p11 EN16 p9 EN23 p8, 10 Initiatives to mitigate environmental impacts of products and services EN26 p9 EN28 p13 DMA LA p13 LA1 p13 LA2 LA3, LA4 p14 LA10, LA12 p14 p13 DMA HR p14 HR4 p13 DMA SO p14, 15 Programs to assess and manage the impacts of operations on communities SO1 SO3, SO4 p14 Significant fines or sanctions for non-compliance with environmental laws and regulations Disclosure on management approach Total workforce by employment type, employment contract and region Total number and rate of employee turnover by age group, gender and region Benefits provided to employees; percentage of employees covered by collective bargaining agreements Average hours of training per year; performance and career development reviews Disclosure on management approach Total number of incidents of discrimination and actions taken Disclosure on management approach Total number of employees trained in organization’s anti-corruption policies and procedures; any incidents and actions taken Total number of legal actions for anti-competitive behavior, anti-trust and monopoly practices and their outcomes Significant fines or sanctions for non-compliance with laws and regulations Disclosure on management approach Product and service life cycle assessments Customer satisfaction measurement Marketing and communications compliance; any incidents and actions taken Statement from the CEO about relevance of sustainability to ProLogis and its strategy, including a description of the organization’s key impacts, risks and opportunities Name of organization, primary products and services; operational structure, location of headquarters Countries of operation Nature of ownership; legal form Markets served Scale of organization: employees, net sales, capitalization and products Significant changes during reporting period regarding size, structure, or ownership Awards received during reporting period Reporting period, cycle and date of previous report Contact point for questions regarding report Process for defining report content; boundary and limitations of report Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability from period to period Data measurement techniques and the bases of calculations p4 3.9 3.10 – 3.11 p4, 17 Re-statements or significant changes from previous reports 3.12 – 3.13 p4, 6 4.1 – 4.4 GRI Standard Disclosures table; policy and practice with regard to seeking external assurance for report p16, 17 Governance structure; indication if chairman is also executive officer; independence of members; mechanism for direction to the highest governance body 4.5 – 4.6 p16, 17 Linkage between compensation and organizational performance; processes in place to avoid conflicts of interest among members of the highest governance body 4.7 – 4.10 p3, 16 Processes for determining the highest governance body’s qualifications and expertise on economic, environmental and social topics; internal mission statements; codes of conduct; management, evaluation and assessment frequency Explanation of whether/how the “precautionary approach” is addressed Externally developed economic, environmental or social charters, principles, or other initiatives; organizational membership in associations or advocacy organizations List of stakeholder groups engaged by the organization; key topics and concerns raised, explanation of response 4.11 p17 4.12 – 4.13 p17 4.14 – 4.17 p5 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 6 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 6 SO7 SO8 DMA PR PR1 PR5 PR6, PR7 p14 p14 p18 p18 p18 p18 GRI Profile Indicators 1.1 – 1.2 p2 2.1 – 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3.1 – 3.3 3.4 3.5 – 3.7 3.8 p7 p19 p7 p19 p7 p17 p2 p4 p4 p4, 5 p4 C O M P A N Y O V E R V I E W ProLogis is the world’s largest owner, manager and developer of distribution facilities, with operations in 118 markets across Asia, Europe and North America. ProLogis is headquartered in Denver, Colorado, and I N V E S T M E N T M A N A G E M E N T employs more than 1,500 people worldwide. The com- Our investment management segment represents pany had $36.3 billion of assets owned, managed and the long-term management of unconsolidated property under development, comprising 510.2 million square funds, and the properties they own, with the objective feet (47.4 million square meters) in 2,773 properties of generating a high level of returns to us and our fund as of December 31, 2007. partners. Along with the income recognized under the Our customers include manufacturers, retailers, equity method from our investments in the property transportation companies, third-party logistics providers funds, we include fees and incentives earned for services and other enterprises with large-scale distribution needs. performed on behalf of the property funds (primarily In addition to our core industrial business, we are active property and asset management services) and interest in retail and mixed-use development in Europe and earned on advances to the property funds, if any, in Asia, and throughout North America as Catellus this segment. Development Group, a ProLogis company. ProLogis is organized under Maryland law and is taxed C D F S B U S I N E S S as a Real Estate Investment Trust under the Internal Our CDFS business segment primarily encompasses Revenue Code of 1986, as amended. Our European our development of properties that generally are either headquarters are located in the Grand Duchy of contributed to a property fund or sold to third parties. Luxembourg with our European customer service Additionally, we acquire properties with the intent to headquarters located in Amsterdam, the Netherlands. rehabilitate and/or reposition those properties in the Our regional offices in Asia are located in Tokyo, CDFS business segment prior to being contributed to a Japan, and Shanghai, China. property fund. We also engage in commercial, mixed-use Our business is currently organized into three development activities generally with the intention of reportable business segments: (1) property operations, selling the land or completed projects to third parties. (2) investment management and (3) CDFS business. Additionally, we have land positions, including land P R O P E R T Y O P E R A T I O N S owned by the CDFS joint ventures and land controlled through contracts or options, for future development Our property operations segment represents the of industrial distribution properties or other commer- direct, long-term ownership of industrial distribution cial development. and retail properties. P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 7 environmental ProLogis is committed to continuously improving the environmental performance of our global portfolio. Through state-of-the-art design and construction, innovative customer programs, active engagement with suppliers and benchmarking our performance, we strive to be the world leader in environmental best practice in our industry. G O A L S / R E S U L T S (cid:129) Reduction of potable water usage for landscape irrigation In 2006, ProLogis adopted a series of multi-year, by 50% in accordance with methodology established quantifiable waste and renewable energy goals for all under the U.S. Green Building Council’s (USGBC) LEED new development in its global portfolio to be achieved (Leadership in Energy and Environmental Design) program by 2010. They are as follows: ProLogis continued to make progress toward these goals (cid:129) Utilization of 20% recycled content, based on cost, during 2007. By building to BREEAM (Building Research in all new warehouse developments Establishment Environmental Assessment Method) (cid:129) Diversion of 75% of construction debris from disposal standards we will achieve the first, second and fourth in landfills and incinerators on all new projects of these goals on all new development in the United (cid:129) Installation of renewable energy sources that have Kingdom, while under LEED standards, we are making a combined generation capacity of over 25 million progress toward these objectives. For example, in kWh per year across the company’s global property Minooka, Illinois, over 90% of the waste related to the portfolio construction of an 800,000-square-foot facility leased to Kraft Foods was diverted from landfills. U.S. and U.K. Sustainable Warehouse Initiatives Early in 2008, ProLogis announced two important not only provide options for our customers that are sustainable development initiatives. We pledged to interested in furthering their own sustainability initia- develop all new warehouses in the United States to envi- tives and reducing energy consumption, but we believe ronmental standards developed by the USGBC and to that as customer demand grows, these high-performance register each building with the USGBC for certification buildings will lease more quickly and generate higher under LEED, the U.S. national standard for environmen- rents and greater return on investment. tally responsible construction. Additionally, we plan Presently, we have 5.7 million square feet of to develop all new warehouses in the United Kingdom warehouses in the United States under design or con- to BREEAM standards developed by BRE Global. struction for which we are pursuing LEED certification. These initiatives impact all new development currently In addition, Catellus has submitted two projects – in the design or planning stage, as well as future projects Alameda Landing in California and Mueller in Texas – in the United States and the United Kingdom. that were accepted into the USGBC’s LEED Neighborhood In an increasing number of global markets, regulators Development pilot project. In the United Kingdom, we are adopting policies that provide preferential permit- have 3.7 million square feet of facilities either completed, ting treatment for those development projects that will under development or in planning that have received comply with leading environmental standards, creating BREEAM ratings, with another two million square feet an advantage for the frontrunners. Our facilities will of space that is eligible to be rated in the future. 8 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T We also implemented waste diversion and potable E N E R G Y - E F F I C I E N T L I G H T I N G water reduction strategies at various global projects and In 2006, ProLogis embarked on a lighting program established a mechanism for tracking our progress on to install or upgrade the lighting systems in our North these initiatives during 2007. Additionally, we continue American portfolio to energy-efficient T5 and T8 to work on increasing our use of recycled materials fluorescent lighting systems, which can cut electricity and are focused on understanding the recycled content usage by 30 to 40%. To date, we have installed more of steel and concrete – two of the largest items used than 14.1 million square feet of high-efficiency lighting, in warehouse construction. ProLogis has never been which translates into roughly 15.8 million kWh saved fined for non-compliance with environmental laws and annually compared with standard systems. That is enough regulations and due to the nature of our business, we to power 1,489 U.S. homes for a year. In terms of carbon, have a very low risk of significant spills. the combined installations avoid approximately 9,694 In March 2008, we announced an initiative with metric tons of CO2 from being emitted annually. Southern California Edison (SCE) to provide rooftop space in one of our distribution parks for a solar panel W O R K I N G W I T H S U P P L I E R S installation pilot project. SCE will make the capital Through the building components and products we investment in the panels and harvest the energy purchase, we enhance the environmental attributes for their customers’ use in the region, while ProLogis of our warehouses. In 2007, we met with suppliers will install the panels and earn “roof rent” from SCE. to learn more about their sustainable offerings in order We anticipate the first installation will be made late to incorporate such products into our purchasing prac- in 2008 and will provide an update on the progress tices. One outcome included testing environmentally of this initiative in future reports. friendly paints and carpets during initial warehouse Finally, in order to improve our fluency in green construction and tenant improvements. Based on positive construction practices, we required our North American feedback, we plan to incorporate environmentally construction management team to undergo LEED preferred products into our standard offering for 2008. accreditation training. So far, 25 ProLogis employees have achieved LEED AP status. Lowest Carbon Footprint Warehouse in Europe In October 2007, we completed construction of a U.K. distribution warehouse for Sainsbury’s, one of the U.K.’s leading retailers, that has the lowest carbon foot- print of any such facility in Europe. The award-winning, 624,000-square-foot facility at ProLogis Park Pineham, Northampton, sets new standards for sustainable devel- opment with an ultra-low carbon design that exceeds U.K. building regulations by 40%. A carbon management system recorded the carbon footprint of every aspect of the construction process, including emissions associated with the production ProLogis Park Pineham of raw materials and construction components, carbon harvested from the roof and generates electricity for use associated with transport to the site and energy used on on the site. Air tightness levels exceed U.K. regulations site. The carbon footprint was further reduced through by 75%, while a solar wall and wall-mounted photovoltaic a waste management plan to reduce and recycle con- panels generate renewable electricity and provide passive struction waste. warehouse heating. Carbon credits were purchased The building also has significantly reduced opera- to offset the embodied carbon by 110%, creating a tional carbon emissions. A combined heat and power net reduction in emissions equivalent to that of more plant drives the refrigeration system, warms rainwater than 440 homes. P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 9 G L O B A L S T A N D A R D S C H E C K L I S T through energy-efficient practices and products. As a ProLogis is committed to delivering the most energy partner, we pledge to assess our current energy con- efficient, environmentally responsible buildings possible. sumption and operating and maintenance practices, as Green building rating systems, which can be found well as identify strategies that will continually improve in a number of regions across the globe, have proven energy performance enterprise wide. We are currently to be a credible way to communicate the sustainable developing a formalized operations and maintenance plan components of a building. for our headquarters that will be customized for our Where standards for green construction exist, we are field offices and will meet monthly to discuss progress. building projects that qualify for certification based on those criteria. Where green rating systems do not exist, C H I C A G O C L I M A T E E X C H A N G E we plan to utilize a global standards checklist we created In February 2007, ProLogis announced its membership in 2007 based on the requirements for environmental in the Chicago Climate Exchange (CCX), the world’s certification from the leading regional rating systems first voluntary, legally binding greenhouse gas emissions in the United States (LEED), in Japan (CASBEE) and reduction, registry and trading program. Membership in the United Kingdom (BREEAM). in the Exchange requires us to completely offset the As of December 31, 2007, we had 29 distribution “carbon footprint” associated with our business centers worldwide that had received, or were in the operations in the United States. process of receiving, LEED, CASBEE or BREEAM ratings. We were the first real estate developer to join We are currently tracking development projects using our CCX; at the time, CCX did not have energy-efficiency global checklist and will report on progress as appropriate. standards that could be applied to real estate. We are E N E R G Y S T A R collaborating with the Exchange on a protocol to pro- vide a way for CCX participants to earn carbon offsets In early 2008, ProLogis was accepted as a partner in for the energy performance of their buildings. Our ENERGY STAR, a joint program of the U.S. Environmental goal is for the protocol to be utilized by any member Protection Agency (U.S. EPA) and the U.S. Department company wanting to earn carbon credits for their of Energy (DOE) that aims to protect the environment energy-efficiency measures. A Visionary Mixed-Use Development In 2002, Catellus was selected as master developer for the former Robert Mueller Municipal Airport rede- velopment in Austin, Texas. The original master plan, which envisioned Mueller as a mixed-use, dense, transit- oriented urban node, was the result of close collaboration between the city government and surrounding neighbor- hoods – and more than 100 public planning meetings. Catellus’ role at the project has been to execute that vision and to strike a balance between the ambitions of the community and the realities of the marketplace. Although there have been challenges, the end result Strictly Pediatrics Subspecialty Center at Mueller in Austin, Texas is a highly successful master plan that incorporates a or be LEED certified; all single family homes must number of green principles, including material and land meet or exceed a three-star energy efficiency rating. reuse, open space, parks, multi-modal transit, affordable Distinctively, Mueller’s retailers exceeded both local housing and utilization of renewable energy. and national standards for green building, making the Uniquely, the Mueller plan requires all commercial retail district one of the most sustainable in a mixed- buildings to meet or exceed a two-star energy efficiency use community in the nation. For Best Buy, Mueller rating from Austin Energy’s Green Building Program is home to their first “green” retail store. 1 0 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T Global Carbon Footprint Electricity/Indirect Energy Consumption Natural Gas Carbon Footprint1 12,394,108 kWh 63,099 therms 14,881 metric tons of CO2 1 Operations include electricity and natural gas usage at ProLogis offices as well as emissions associated with business travel via plane, automobile, commuter rail, intercity rail and bus. Note: These figures are based upon actual utility bills and travel reports, where available, and based upon square footage and estimations where exact data was not available. Sources of emissions factors used in the calculation are the U.S. EPA, DOE and CCX. Our carbon footprint calculation follows the GHG Protocol established by the World Resources Institute and the World Business Council for Sustainable Development. to formalize reporting for our environmental impact mitigation and, working in partnership with agencies and organizations, will go above and beyond where feasible. ProLogis has completed a number of habitat protection and restoration projects across the globe. In Florida, we worked with the Fish and Wildlife Commission to safely relocate 74 burrows and 21 gopher tortoises. At ProLogis Park Uzice in the Czech Republic, we helped revitalize a nearby forest by planting trees – increasing the area of the existing forest by more than 100%. And at Catellus’ Mueller airport redevelopment in Texas, we are restoring parts of the site not just to its pre-airport condition but to its original state as Texas Through a combination of offset procurement and blackland prairie. This includes creating educational organic reductions, including reduced hours of HVAC trails and displays to help park users learn about native operation and installation of energy-efficient lighting, plants and ecosystems. we plan to offset the entire carbon output related to our global business operations for 2007 later this year. 2007 Global Carbon Footprint H A B I T A T R E N E W A L As part of the land procurement and entitlement process, ProLogis completes an Environmental Impact Assessment (EIA) for every project and identifies threatened or impacted species and habitats during the assessment process. We are currently working 10% 5% 10% 5% 22% North America Offices North America Transportation Europe Offices 48% Europe Transportation Asia Offices Asia Transportation Harnessing the Wind Japan is a densely populated and highly land constrained country, with nearly 70% of its landmass mountainous and uninhabitable. Consequently, the large majority of Japan’s population is concentrated in about 30% of the country’s coastal flatlands. Strong, sustained winds along the coast create ideal conditions for wind-based power systems. So far, ProLogis has included wind turbines at three large distribution centers developed by the company in Osaka and Nagoya. The first is ProLogis Parc Amagasaki, a 1.5-million- ProLogis Parc Centrair square-foot industrial park completed in 2006. The totals 1.4 million square feet and was completed park features two, 10 kW wind turbines with an in 2007. Also completed in 2007 is ProLogis Parc expected annual capacity of 6,400 kWh. The second, Centrair in Nagoya, an 860,00-square-foot park that ProLogis Parc Osaka II, includes two, 4 kW wind features four, 10 kW wind turbines. turbines, photo-catalytic pavement, energy-efficient lighting and high-insulation wall paneling. The park P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 1 1 social Corporate social responsibility is a core value of our company. Through our partnerships, corporate giving, community outreach, employee involvement and education, we are committed to building healthy and productive rela- tionships with our employees, business partners and the local communities in which we do business around the world. C O M M U N I T Y E N G A G E M E N T N O R T H A M E R I C A ProLogis is proud to invest in the communities in which In 2007, 706 of our employees in 38 different North we operate. We contribute our time, our expertise and American offices took part in a variety of activities bene- our financial support in numerous ways around the globe, fitting over 81 different charities and donated more all with the goal of making a positive difference to than 4,700 hours of time. Some of the organizations people and organizations in need. In 2007, we created we helped include: a company-wide volunteer program that provides every ProLogis employee with two paid days each year to be used for community volunteer efforts. We intend to further develop our company-wide community investment strategy in 2008 and began to measure our financial investments as a percentage of company profits in 2007. As a part of our due diligence process, ProLogis closely examines the impact that new development will have on the environment and community. We make every effort to ensure that the public is educated on our plans by attending city council and planning meetings, listening to public feedback and working to create master-planned distribution parks that will assimilate into the community. While every project is different, some examples of our process include traffic analysis to determine if there are any required infrastructure upgrades and economic analysis to research potential job creation our project will provide, as well as the increased tax revenues for local and/or state agencies. Sustainability at ProLogis transcends our development business; its principles are being utilized company wide. For example, at our corporate events and meetings, we no longer offer bottled water or paper, plastic or Styrofoam cups. Instead, we provide reusable cold and hot beverage containers. We also require venues to have plastic, paper and aluminum recycling, and hotels must have a linen reuse program. Finally, in order to elimi- nate paper distribution at tradeshows, we now provide reusable USB flash drives. 1 2 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T (cid:129) 19 different schools (cid:129) Four food banks (cid:129) The Humane Society (cid:129) The Salvation Army (cid:129) Race for the Cure (cid:129) Junior Achievement (cid:129) Toys for Tots (cid:129) Two childrens’ hospitals (cid:129) Habitat for Humanity (cid:129) Boys and Girls Clubs of America (cid:129) YMCA (cid:129) United Way (cid:129) St. Jude Childrens’ Hospital E U R O P E We are committed to supporting local charities and non-profit organizations throughout Europe. We provide in-kind donations, monetary gifts and supplies to encourage local growth and revitalization and to engage each community’s individual spirit. Through the Park Foundation in Poland, we donated funds to upgrade equipment at the children’s oncology ward at the Maria Konopnicka University Hospital – this effort was part of a nationwide initiative to support underprivileged children in the country. We also donated time and resources to: sponsor an elementary school basketball tournament where winning schools received sports equipment, support three months worth of summer events for disadvantaged children in Piotrkow, buy lunch for poor children at Warsaw schools, and create scholarships to the Higher School of Logistics in Poznan. In Bucharest, Romania, we gave our time and resources to create new football fields and playgrounds for children. We also partnered with the Real Estate Economics master program run by the Academy of Economics to award sponsorships totaling €5,000. We regularly allocate funds for community dispersal in the United Kingdom. In 2007, we gave to the Sutton United Football Club, the Racing Blyth Youth Football Team and the Stafford Rangers Football Club. We also funded the installation of a stone memorial at one of our parks in remembrance of a fallen U.S. World War II pilot, who heroically redirected his damaged aircraft, saving innocent lives. In the Guangxi disaster area in China, school children commemo- rated ProLogis’ first Hope School with an art contest. In Germany, with each new distribution facility In Japan, we donated funds to support developing developed, we donate funds to a local charity. In 2007, countries through Nippon Keidanren, a Japanese we gave to: Sozialstation Neufahrn, an elder care Business Federation, and local festivals in Ichikawa City organization, two different organizations supporting and Misato City. At the Ichikawa San Festa festival, research and fulfilling wishes for children with cancer, we sponsored games and prizes, serving more than Kinderheim Anna-Stiftung, a children’s home and 800 people at the day-long event. Circusschule TriBühne, an education program in Hamburg. A S I A M A N A G E M E N T A P P R O A C H We place a dedicated effort on training and education for our employees. In 2007, we strengthened our focus We are proud to support local communities in Asia on training and development by regularly communicating by fostering school programs and participating in local and educating our employees about business operations, events. In China, ProLogis has pledged to fund the career growth and our sustainability efforts worldwide. construction of one new school for every five million In 2007, employees participated in a wide variety square feet of industrial development that the company of training events related to leadership, business skills, completes in the country. Last year, we constructed one team building, ethics, safety, language and technology. school and expect to complete three more in 2008. In In addition, our bi-annual, company-wide, new associate addition, we support Shanghai Surprise, a university training event, ProLogis University, took place in 2007, scholarship program for underprivileged children. bringing more than 350 employees from around the Global Employment by Type1 Employees by Region Employee Turnover by Region Employee Turnover by Gender2 Employee Turnover by Age3 1 7 4 1 , 1 5 8 North America Europe Asia % 2 3 % 1 2 % 7 1 % 4 1 % 5 2 % 0 2 % 8 1 % 4 1 % 5 1 % 3 1 5 6 3 8 7 2 Full Time Part Time 3 2 1 2 Contract/Temp. 1 Contract/temporary workers are not ProLogis employees 2 Employees who terminated employment as a percentage of gender by region, not a percentage of total headcount 3 Employees who terminated employment as a percentage of age group by region, not as a percentage of total headcount Female Male % 0 2 % 8 1 % 1 2 % 9 1 % 2 2 % 7 1 % 5 1 % 8 % 4 1 % 6 % 1 1 20 – 29 30 – 39 40 – 49 50+ P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 1 3 globe to Denver, Colorado, to learn more about the H U M A N R I G H T S company’s history and mission. In total, ProLogis spent ProLogis affirms the company’s commitment to Equal more than $1.6 million for employee training in 2007. Employment Opportunity. We believe that our Moving forward, we have increased our commitment to associates are our most important assets and seek training with the establishment of a new Training and to hire and retain superior associates by committing Development department. to excellent employment standards. All of our employees receive regular performance ProLogis will recruit, hire, train, promote and com- reviews, and in 2007, we established an enhanced pensate candidates for employment and our current performance review system to increase the consistency associates without regard to race, color, age, religion, of feedback at the corporate level. We also have a sex, national origin, disability or sexual orientation. compensation tracking program, a metrics data program All other personnel actions, including, but not limited and an internship program for career development. to, disciplinary action and fringe benefits programs, Approximately 36% of our employees have been will be based on the same principles. In North America, trained in ProLogis’ anticorruption policies and proce- ProLogis had two incidents of discrimination raised dures. We have had no acts of corruption take place, during the year. Our attorneys have responded to both nor have we had to engage in any legal actions incidents, and they are still open. Neither Europe nor to address anti-competitive, anti-trust or monopoly Asia reported any discrimination incidents. practices. We believe that our relationships with our Currently, ProLogis Human Resources associates employees are good, and our employees are generally with hiring responsibility typically attend at least one not represented by any collective bargaining agreements. diversity-related career fair each year. Additionally, as construction is typically outsourced ProLogis follows all relevant federal and state laws to contractors, the vast majority of ProLogis associates applicable to individuals with disabilities, Vietnam-era are employed in administrative or managerial positions. and disabled veterans and endeavors to maintain Therefore the company does not experience a significant guidelines and practices that meet the standards number of health or safety issues. required by law. ProLogis University at Manual High School Every two years, ProLogis brings its new hires from all over the world into one location for ProLogis University, a three-day-long event that aims to educate, train and motivate. It includes a series of motivational meetings and networking opportunities for new employees, along with functional training in development, property man- agement, marketing and accounting. For an entire day of this event, the group partici- pates in a community service project. Last year, 350 employees gathered in Denver to revitalize Manual High School, a school that had been shut down by Denver Public Schools due to low student attendance and poor academic performance. What the school needed most was support from the In August 2007, 350 ProLogis employees spent a day revitalizing the campus of Manual High School, located in an inner-city neighborhood in the greater Denver area. community and a boost in morale. ProLogis employees time and – along with an $80,000 donation from the spent a day giving the school a facelift with new land- company – helped turn the fate of the school onto a scaping, new paint and general repairs. Their efforts positive path. The school reopened after the summer on represented over 2,000 hours of ProLogis volunteer August 20, 2007, with a renewed spirit and sense of hope. 1 4 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T C O R P O R A T E G I V I N G A N D P R O B O N O E N G A G E M E N T We build our economic portfolio to include a budget for in-kind donations. We believe that charitable efforts provide long-term return on investment and greatly contribute to our social sustainability. In 2001, the ProLogis Foundation was established with the goal of providing financial support to institutions of higher education and charitable organizations across North America. In 2007, ProLogis donated $5 million to the Foundation, approximately 0.5% of net earnings, to help support its efforts. We have plans to hire a foundation manager in 2008 and are formulating a plan Rendering of ProLogis’ expanded global headquarters to better manage charitable activity and fund allocations. H E A D Q U A R T E R S E X P A N S I O N To facilitate access to our distribution parks and ProLogis formally opened its new global headquarters mixed-use developments, we frequently redevelop roads in Denver, Colorado, in February 2006. The five-story, and interchanges for public benefit. The first stage in LEED-certified building comprises more than 89,000 any development process is to conduct an environmental square feet of space and is home to approximately 350 impact assessment to determine if there is a need to associates. In this building, we provide single-stream conduct infrastructure upgrades in order to minimize recycling, environmentally friendly janitorial and office impact on the local community. supplies, and 100% compostable and biodegradable For example, as a part of The Bridge development, products in our on-site cafeteria. a 264-acre, mixed-use site near Dartford in the United A year-and-a-half later, we began planning to expand Kingdom, we constructed a bridge over the M25 motor- our corporate office. Our explosive growth had resulted way – one of Europe’s busiest highways – to connect in a strong need for more people serving in corporate the property with existing infrastructure. The bridge functions such as accounting, finance, human resources spans 150 meters and forms part of the bus route for and marketing. In October 2007, we broke ground on the revolutionary Fastrack public transportation system. an expansion of our headquarters facility. Fully funded by ProLogis, we worked in partnership with This facility will also be LEED certified, and we are Dartford Burough Council to create plans and build the aiming for a silver rating. At completion , the building £20 million bridge. will comprise four stories totaling 93,350 square feet and will connect to the first building via an all-glass, ground-level corridor. Uniquely, the roof of the connector will feature a “green” landscaped area with native grass and shrubs. Enhancements to the second building will include improved air quality, additional energy efficiency enhancements and building insulation, more natural light and carbon dioxide monitoring in the ductwork. The building is scheduled for completion in late 2008. P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 1 5 economic ProLogis is committed to leveraging its global leadership position to sustain profitable growth. We strive to maintain industry-leading, long-term financial performance through our diversified business model, the world’s largest global platform of distribution facilities and strong relationships with the companies we serve. M A N A G E M E N T A P P R O A C H facilities without green features face economic risk, We seek to be the leading global provider of distribution or potentially, ultimate obsolescence. Research already facilities to the world’s largest users of distribution space. shows that green buildings generate significant bene- Our business model enables us to grow by accessing fits. Green buildings command 3% higher rental rates, and managing a variety of capital sources around the realize an average increase of 7.5% in building value, globe. Our investment management business is a power- deliver 3.5% higher occupancy rates and improve ful engine of growth with more than $19 billion of return on investment by an average 6.6%.1 industrial assets under management. Our equity partners obtain access to ProLogis’ high-quality portfolio through our contribution of properties and benefit from profes- sional management and our strong ties with global customers. ProLogis has the opportunity to establish relationships with equity partners around the world, aligning our interests with theirs. In addition, our invest- ment management business enables us to expand with less of our overall capital invested, since we generally retain a 20 to 25% interest in the funds. In this way, we leverage our operating system and achieve higher returns on invested capital. We are a globally diversified company. We anticipate that 80 to 85% of our new development in 2008 will be outside the United States. This diversification helps mitigate the impact of an economic downturn in any one region of the world and helps support sustained economic growth. Our response to universal climate change has been to increase our environmental awareness and green practices, which includes, but is not limited to, our involvement with CCX and the commitment to develop all new buildings to LEED standards in the United States and to BREEAM standards in the United Kingdom. We believe that environmentally friendly facilities will become increasingly sought after by tenants and that 1 6 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T C O R P O R A T E G O V E R N A N C E We are committed to furthering meaningful corporate governance practices and maintaining a business environment of uncompromising integrity. We continue to enhance these objectives through our governance policies and compliance with the Sarbanes-Oxley Act of 2002, the Foreign Corrupt Practices Act and the rules of the New York Stock Exchange (NYSE). Our highest governance body is the board of trustees, followed by our senior executives. The ProLogis board is responsible for reviewing and approving strategic plans, corporate actions and financial objectives. The chair- man of the board is currently the chief executive officer for continuity and involvement purposes. The board adheres to a well-defined code of ethics and partici- pates in a company-wide ethics challenge conducted each year by our legal department. Following our Annual Meeting of Shareholders in May 2008, our board of trustees will comprise 10 members who are elected annually. We require that a majority of our board be independent under listing standards adopted by the NYSE. To determine whether a trustee is independent, the board must affirmatively determine that there is no direct or indirect material relationship between the company and the trustee. 1 McGraw-Hill Construction, Green Building SmartMarket Report, 2006. Prior to the election of any member of the board, the Our compensation philosophy is to reward superior board governance and nomination committee screens company and executive performance and to attract all potential candidates with a brief biographical sketch, and retain highly competent executives upon whose conducts interviews and retains executive search firms judgment, initiative and leadership our success depends. as necessary. The committee may look at a variety of Our board’s compensation committee focuses on factors to identify potential candidates including each completing regular performance reviews for our senior individual’s focus on environmental, economic and executives and is responsible for setting compensation social responsibility. levels in accordance with company goals and objec- The board receives an update on sustainability tives; the committee also oversees programs in hiring, initiatives during quarterly board meetings and attends motivating and retaining key employees and in creating to each item as appropriate. To address economic sus- short- and long-term shareholder value. tainability, the board’s audit committee is charged with You may communicate with any of the trustees, monitoring the quality and integrity of the accounting individually or as a group, by writing to them c/o Edward and reporting practices of the company. Due to the S. Nekritz, Secretary, ProLogis, 4545 Airport Way, newness of our sustainability initiatives, it is currently Denver, Colorado 80239. All communications should not feasible to accurately track the board’s performance prominently indicate on the outside of the envelope that related to the entirety of our sustainability measures. they are intended for the full board, for outside trustees Moving forward, we plan to establish a formalized eval - only or for any particular group or member of the board. uation process to assess our board’s commitment to our sustainability goals. M E M B E R S H I P S A N D I N D I C E S We take precautionary measures to address risk We are members of: the National Association of Industrial management in both operational planning and with new and Office Properties, the National Association of Real investments. We have operational controls in place for Estate Investment Trusts, the Chicago Climate emergency management, carry comprehensive insurance Exchange, the Real Estate Roundtable, the U.S. Green coverage and conduct a thorough underwriting process. Building Council, the U.S. Environmental Protection Before any capital is committed to a new investment, Agency’s ENERGY STAR program, the U.K. Green our investment committee looks at the economic, social Building Council, the Urban Land Institute and the and environmental impact of each investment, reviews National Brownfield Association. investment memos and conducts an economic analysis We are listed in the Domini 400 Social Index, the to ensure prudent investments. FTSE4Good Index and will apply for the Dow Jones Sustainability Index in 2008. Institutional Shareholder Continuous Dividend Growth (per share) Composition of Revenue (in billions) $30.5 Billion Total Market Capitalization (as of December 31, 2007) 4 8 1 $ . 0 6 1 $ . 2 4 1 $ . 4 4 1 $ . 8 3 1 $ . 6 4 1 $ . 8 4 1 $ . 4 3 1 $ . 0 3 1 $ . . 4 2 1 7 $ 0 1 $ . 1 0 1 $ . 4 9 0 $ . 95 96 97 98 99 00 01 02 03 04 05 06 07 . 2 6 $ 1% 44% . 4 2 $ . 8 1 $ 05 06 07 CDFS Fund Management Property Operations 55% Equity Debt Preferreds P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 1 7 Services (ISS) assigned ProLogis an Industry Corporate Prior to committing any capital for new investment, Governance Quotient (CGQ) rating of 89.3 as of March we participate in a comprehensive due diligence 27, 2008. ISS’ CGQ is the most widely recognized process – part of which includes analyzing the land to third-party measure of corporate governance. The organi- identify the presence of any foreign chemicals. Where zation ranks U.S. companies using 65 different variables appropriate, we conduct a brownfield redevelopment across eight categories: board of directors, charter and process to completely remove unsafe and unhealthy bylaw provisions, executive and director compensation, particles, creating a clean, blank slate for new develop- audit, anti-takeover provisions, stock ownership, ment. We also seek land designated as brownfield and progressive practices and director education. remediate contaminated soil to support reuse. In 2007, we redeveloped 460 acres of brownfields – 185 in L O C A L R E S O U R C E S North America and 275 in Europe. ProLogis appreciates the value that comes from We place a high importance on maintaining consistent hiring local nationals in each market where we conduct messaging when marketing our business. Every public- business. No one knows the local geography, trends or facing employee adheres to a detailed disclosure policy, business practices better than someone who is native and we follow all NYSE guidelines regarding press to that market. More than 99% of our 1,515 employees release announcements and other marketing collateral. are local nationals; we have only 13 expatriates working The majority of our senior marketing staff belongs to in markets other than their home countries. one or more professional organizations, such as the In addition to our workforce, we utilize local con- Business Marketing Association and the American struction materials and suppliers for all of our property Marketing Association, and adheres to guidelines development. By buying from suppliers within 500 miles established by these groups. We are in full compliance of the facility, we ensure that the materials are not being with our marketing communications regulations and transported over long distances to get to the site. do not have any violations to report for 2007. P R O D U C T / C U S T O M E R R E S P O N S I B I L I T Y D I V I D E N D G R O W T H A N D We seek to exceed customers’ expectations with excep- C O M P O S I T I O N O F R E V E N U E tional levels of service. We are proud to maintain high ProLogis has distributed over $1.9 billion in common levels of customer retention and satisfaction, which in dividends to investors since January 1, 2000. We have turn benefit ProLogis’ shareholders economically through increased our dividend every year, from $1.34 per share low turnover and other customer receivable costs. We in 2000, to $1.84 per share in 2007, representing a regularly measure customer satisfaction by conducting compounded annual growth rate of over 4.6%. For the surveys that ask our customers in North American to five years ending December 31, 2007, ProLogis com- rate their ProLogis personal contacts in areas of leasing, mon shares provided a total return (price appreciation property management and maintenance. Surveys are plus reinvested dividends) of approximately 205% to conducted every two years; the next will be performed investors, compared with 83% for the S&P 500 and in 2008. 78% for the Dow Jones Industrial Average. The consistency and quality of our distribution Through ProLogis’ property operations, development facilities are imperative to our economic sustainability. and investment management segments, we have diver- All of our properties are regularly assessed for necessary sified our sources of income and enhanced our financial improvements as a part of our property maintenance stability. In 2007, our net operating income totaled procedure. As part of this process, we retrofitted $1.7 billion, 45.8% of which came from development, 3.4 million square feet of distribution space in 2007 11.5% from investment management and 42.7% from with new lighting systems for improved efficiency property operations. and a healthier atmosphere. 1 8 P R O L O G I S S U S TA I N A B I L I T Y R E P O R T Mission Profile Our mission is to be the leading global provider of sustainable ProLogis is the world’s largest owner, manager and developer distribution facilities to the world’s largest users of distribution of distribution facilities, with operations in 118 markets across space and to maximize shareholder value through customer serv- North America, Europe and Asia. We have more than 500 million ice, organizational excellence and our commitment to corporate square feet of industrial space in over 2,750 properties, representing social responsibility. Global Presence over $36 billion of assets owned, managed and under development. Our customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale dis tribution needs. Headquartered in Denver, Colorado, we employ approximately 1,500 people worldwide. North America Europe Asia Belgium Brussels Czech Republic Pilsen Prague Ostrava France Orleans Metz Le Havre Paris Marseille Germany Hamburg Frankfurt Cologne Munich Hungary Budapest Hegyeshalom Italy Milan Padova Rome Turin The Netherlands Amsterdam BeLux Brabant Tilburg Rotterdam Poland Piotrkow Wroclaw Gdansk Katowice Warsaw Poznan Romania Bucharest Slovakia Bratislava Nove Mesto Spain Barcelona Madrid Valencia Sweden Gothenberg Jonkoping Norkopping Stockholm United Kingdom Birmingham Daventry London Wakefield China Beijing Changsha Chengdu Chongqing Dalian Foshan Guangzhou Hangzhou Jiaxing Nanjing Ningbo Qingdao Shanghai Shenyang Shenzhen Suzhou Tianjin Wuhan Wuxi Japan Fukuoka Hiroshima Nagoya Niigata Osaka Sapporo Sendai Tokyo South Korea Seoul United Arab Emirates Dubai United States Atlanta Austin Baltimore Central Valley (CA) Charlotte Chicago Cincinnati Columbus Dallas/Fort Worth Denver El Paso Greenville Houston Indianapolis Inland Empire (So CA) Jacksonville Las Vegas Los Angeles Louisville Memphis Miami/ Ft. Lauderdale Nashville New Jersey/I-95 Norfolk Orlando Eastern Pennsylvania Phoenix Portland Reno Salt Lake City San Antonio San Francisco – East Bay San Francisco – South Bay Seattle St. Louis Tampa Washington D.C. Mexico Guadalajara Juarez Mexico City Monterrey Reynosa Tijuana Toluca Canada Toronto P R O L O G I S S U S TA I N A B I L I T Y R E P O R T 1 9 World Headquarters 4545 Airport Way Denver, CO 80239 www.prologis.com +303 567 5000 Europe 18 Boulevard Royal L-2449, Luxembourg +352 26 20 57 40 European Customer Service Schiphol Boulevard 115 F Tower, Floor 6 Schiphol, Noord Holland 1118 BG Schiphol Airport The Netherlands +31 20 655 66 66 Japan Shiodome City Center 1-5-2 Higashi-Shinbashi Minato-ku Tokyo, Japan 105-7108 +81 3 6215 8480 China 2708 Azia Center 1233 Lujiazui Ring Road Pudong Shanghai, 200120 P.R. China +86 21 6105 3999 This report was printed with soy-based inks on recycled paper that contains 100% post-consumer waste. 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