Manulife US REIT - Annual Report 2021

MANULIFE US REIT 86 Sustainability Governance MUST recognises that a structured and committed leadership team is key to driving effective sustainability performance. The Board has oversight of the material ESG factors of the REIT and takes them into consideration when determining the REIT’s strategic direction and policies. The SSC was established in 2017 to lead the sustainability agenda in MUST. Led by our Chief Sustainability Officer (CSO), Caroline Fong, and comprising representatives from key business units, the SSC drives the implementation of MUST’s ESG strategies and initiatives, monitoring of sustainability performance, as well as the setting of targets for continuous improvement. The SSC reports regularly to the CEO, Sponsor and the Board on the REIT’s sustainability performance. As a sponsored REIT, MUST works closely with our Sponsor and Asset Manager, communicating our sustainability performance regularly with our Sponsor’s real estate team to ensure that the sustainability strategy remains aligned and rooted. Supporting the SSC is the Sustainability Quartet, which was formed in 2021 and comprises dedicated ESG working teams across various discipline-specific groups to facilitate and review MUST’s sustainability initiatives to ensure alignment with the Sponsor’s sustainability objectives. Harnessing synergies from the investment, asset management and sustainability functions across both U.S. and Singapore offices, the Quartet also shares ESG updates and regulations to further enhance MUST’s green capabilities and improve our overall sustainability strategy and performance. Board of Directors Chief Sustainability Officer Chief Executive Officer Sponsor Finance Compliance Investment Sustainability Quartet Human Resource Investor Relations ESG Specialist Sustainability Steering Committee Working with our Property Manager Our PropertyManager aims to provide healthy and efficient workspaces for tenants across MUST’s portfolio. Guided by the Asset Manager’s Real Estate Sustainability Framework, as well as industry best practices, including GRESB, LEED TM and Building Owners and Managers Association (BOMA) BEST ® , an internal set of Sustainable Building Standards was launched by the Property Manager in 2017, outlining 13 sustainability focus areas for benchmarking and target setting of MUST’s properties. Each property is reviewed semi-annually against the focus areas, on a scale of level 1 to 5, with ‘Level 3 – Strong sustainability practices, achievable for all office properties’ being the threshold anticipated for all properties to achieve. In 2021, two new Sustainable Building Standards: ‘Climate Change Management’ and ‘Climate Risk and Resilience’ are being developed across the portfolio. Sustainable Building Standards Environmental Energy management and assessments Energy measurement and analysis Water management and assessments Water management programme Indoor environmental quality Alternative transportation Social Health and wellness programme Procurement programme and tracking Tenant engagement Community engagement Employee engagement Governance Certifications and sustainability brand Sustainability management Sustainability Approach