Manulife US REIT - Annual Report 2021

MANULIFE US REIT 92 Environmental Stewardship We aim to reduce the environmental impact of our properties and support the transition to a net zero economy. MUST’s sustainability performance is monitored and managed by our Asset and Property Managers using the Sustainable Building Standards and assessed externally by GRESB Real Estate Assessment. Aligned with our Sponsor and Asset Manager’s respective net zero goal and 80.0%GHG reduction target by 2050, we are developing MUST’s GHG and energy reduction targets to achieve these reductions. We are also committed to maximise our resource efficiency and embed conservation practices into our operations. MUST is targeting to achieve green certification for 100.0% of its portfolio by 2030 and is enhancing our efficiency measures including optimising our operations, exploring fuel switching and the use of renewables in our buildings to achieve this target. Commitment to Sustainable Properties With buildings producing 40.0% of global carbon emissions, the push towards greener buildings has been accelerated as part of the global climate mitigation strategy. On average, about 13.8% 1 of office buildings in the top 30 U.S. cities are green-certified, while about 25.0% 2 of properties in the U.S. listed REITs’ are considered green. Comparatively, our decarbonisation efforts have contributed to us maintaining a 90.0% green-certified portfolio from LEED™, ENERGY STAR ® and/or BOMA 360. MUST was recognised for its sustainability leadership in the 2021 GRESB assessment. GRESB is a leading ESG benchmark for real estate and infrastructure investments across the world, used by global institutional and financial investors to inform decision-making. For the fourth year running, we were awarded with the highest 5 Star rating with an improved score of 93 from 88 in 2020, outperforming both the GRESB global average of 73 and peer group average of 86. MUST is currently ranked 5 th out of the 13 listed U.S. office REITs. Our key strengths include: • High building certification and rating coverage within the portfolio • 100.0%GHG emission, energy andwater data coverage • Strong GHG emissions and energy performance • Robust ESG disclosures and policies • Strong stakeholder engagement practices Building Resilience Green Certifications Certifications LEED TM Gold ENERGY STAR ® BOMA 360 Most widely used global green building rating system to recognise healthy and highly efficient green buildings A U.S. Environmental Protection Agency programme that certifies the top 25% commercial buildings for meeting strict energy performance standards Worldwide standard for operational best practices in the commercial real estate industry Figueroa Michelson Peachtree Plaza Exchange Penn Phipps Centerpointe Capitol 1 CBRE, U.S. Green Building Adoption Index for Office Buildings, 2019. 2 S&P Market Intelligence, ‘U.S. REITs slow to embrace green building initiative’, 28 October 2021.