For more than a decade now, we have been focusing on sustainability through our CSR policy and ESG objectives. In terms of environmental sustainability, Prologis has undertaken a raft of initiatives at a global level, setting itself increasingly ambitious targets.
Further to our commitment to NetZero Carbon by 2040, the installation of photovoltaic panels under the Prologis SolarSmart programme and the rollout of LED technology, our next initiative involves making our heating systems more sustainable. As such, we are replacing gas heating systems at our older buildings in Italy with high-efficiency direct expansion heat pumps powered by electricity, which can also use solar energy generated on-site.
The HVAC (heating, ventilation and air conditioning) units of logistics buildings are one of the main sources of their energy consumption, so the introduction of more efficient and sustainable technologies will significantly reduce greenhouse gas emissions while also cutting energy costs for tenants.
We launched our gas replacement programme at the DC4 building at Prologis Park Lodi, where the conversion of the office heating system is already complete. Works will continue over the next two years at a further 14 buildings. All our new facilities have been designed with heat pump installations in order to minimise their environmental impact.
Prologis Italy will continue to pursue the ambitious sustainability objectives set by Prologis globally, while also aiming to achieve service improvements for customers. By replacing our existing energy-intensive systems with direct expansion heat pumps we will reduce CO2 emissions, with further savings to be made where these are powered by renewable energies. At the same time, our tenants will benefit from more efficient systems (which also require less maintenance), lower energy costs and more sustainable sources of energy.