Manulife US REIT - Annual Report 2021

MANULIFE US REIT 88 Materiality Materiality, as defined by GRI Standards, includes topics and indicators that reflect the organisation’s significant economic, environmental, and social impacts; and would substantively influence the assessments and decisions of stakeholders. Since our first GRI-checked Sustainability Report in 2017, MUST has focused our sustainability efforts on material ESG issues by aligning our perspectives with that of our stakeholders’ expectations. In 2021, we conducted a comprehensive review of our material ESG factors and refined our sustainability framework, considering changes in the external environment that may affect our operating context. The process was supported by an independent consultant with a four-step materiality determination assessment to determine ESG topics that are relevant and material to our internal and external stakeholders. Around 30 internal and external stakeholders including employees, tenants and investors were surveyed, resulting in a comprehensive matrix categorising factors according to their importance to our stakeholders. Climate change, mitigation and adaptation, as well as employee well-being, health and safety were added as material issues. Arising from the review, a revised sustainability reporting framework and an updated set of material ESG factors as set out below were presented to the Board. Ranking of ESG Issues 1 Employee well-being, health and safety 2 Corporate governance 3 Human rights and non-discrimination 4 Employment practices 5 Customer health and safety 6 Sustainable building 7 Economic performance 8 Training and development Materiality Matrix 19 16 14 12 11 9 6 7 2 15 13 10 3 1 8 5 4 18 17 Importance To Business Importance to Stakeholders Important Very Important Critically Important 9 Energy 10 Diversity and inclusion 11 Water management 12 Emissions 13 Community development 14 Climate change mitigation and adaptation 15 Marketing and labelling 16 Waste management 17 Economic contribution to society 18 Supply chain management 19 Biodiversity Environmental Governance Social Sustainability Approach