Manulife US REIT - Annual Report 2021

93 In 2021, Figueroa won The Outstanding Building of the Year (TOBY) award 2021 (500,000 to 1 m sf category) by BOMA Greater LA Figueroa, Los Angeles for outstanding building performance including building and environmental management. We will continue to ensure the highest quality of building standards and provide tenants with the safety and comfort worthy of these certifications. We remain committed to sustainable properties and aim to have 100.0% of our properties green-certified by 2030. ESG Integration in Investment Process At MUST, potential acquisitions are sourced by MUST’s Chief Investment Officer and our Asset Manager. The acquisition opportunities are then vetted by the Manager and presented to the Board for approval. By integrating ESG considerations at various stages of our acquisition process, we are able to ensure the continuity of MUST’s sustainable operations. In the initial screening of acquisition opportunities, we integrate ESG considerations to assess the sustainability performance and risks of the properties. The Manager then considers ESG metrics when vetting the assets to capture efficiency opportunities. Once approved, environmental and social sustainability risks and opportunities are identified in our due diligence process. Considerations such as contamination, energy performance and tenant engagement programmes are checked by our specialists in the Engineering and Technical Services team. In the final stages of the acquisition, a summary of ESG risks and strengths will be recorded to ensureMUST’s consistent sustainability performance. Once acquired, the new properties will be onboarded to our existing ESG programme. Initial Screening Initial Analysis/ Underwriting Approval Decision Due Diligence Finalise Deal Onboard Property 1 ESG in initial analysis • Understand high- level ESG risks and performance • Communicate ESG data to Investment Committee Why is it important? 2 Integrate ESG in budgets and financial models • Budget for ESG costs and savings in financial models • Capture efficiency opportunities Why is it important? 3 ESG in due diligence • Ensure material ESG due diligence items are addressed • Include additional information in models and onboarding Why is it important? 4 Investment ESG summary • Summarise property ESG risks and strengths • Ensure consistent and thorough process Why is it important? 5 Onboarding properties to Manulife ESG programme • Share key information collected during investment process • Ensure effective transition into ESG programme Why is it important? SUSTAINABILITY REPORT 2021 1 Based on 2020 data Based on GRESB 2021 results, our GHG, energy and water intensities are 18.2%, 29.9% and 10.8% lower than our U.S. peers, contributing to a score of 55 compared to the average benchmark score of 51 in the Environment component of the Assessment. GRESB 2021 Results 1 GHG Intensity (kgCO 2 e/sf) U.S. Peers MUST -18.2% 5 4 3 2 1 0 Energy Intensity (ekWh/sf) Water Intensity (L/sf) U.S. Peers MUST -29.9% 20 15 10 5 0 U.S. Peers MUST -10.8% 40 30 20 10 0