TCFD RECOMMENDATIONS TCFD Pillar MUST’s Approach Location in SR Governance The Board oversees material ESG topics management and incorporates them into the REIT's strategic direction and sustainable development policies. The Board is responsible for exercising due diligence in fulfilling its responsibilities and equipping itself with relevant knowledge to effectively perform its duties, including overseeing processes to identify and manage organisational impacts. The Board maintains strong sustainability foundations through mandatory SGX training for all directors, ensuring they are equipped with essential knowledge of sustainability matters. They receive regular updates on ESG topics, including performance against sustainability targets, during quarterly ARC meetings or Board meetings. By the end of the Reporting Period, our Chairman and all directors had completed the SGX-ST-prescribed sustainability training, further enhancing their expertise on the sustainability front. In 2017, MUST established a SSC to execute the REIT's sustainability agenda. The SSC is responsible for overseeing the execution of the ESG strategy implementation, tracking performance and setting development goals. It is supported by key business units, including MUST's sustainability team, to stay current with developments and ensure ESG strategy alignment and execution of ESG strategies. Guided by our corporate policies, procedures and frameworks, the SSC plays a key role in identifying and addressing the risks and opportunities related to sustainability and climate through collaboration across key business units, the Board, and the Sponsor to ensure sustainability is embedded within the Manager's processes. This includes evaluating financial implications of environmental investments, and ensuring compliance with evolving sustainability and environmental regulations. Biannually, the SSC meets to regularly discuss and report to the CEO, Sponsor and Board on sustainability matters such as the REIT's sustainability performance, climate-related metrics, stakeholder expectations and regulatory requirements. Recognising management's crucial role in driving ESG initiatives and achieving sustainability goals, we have incorporated collective ESG targets into our management team's performance metrics and compensation structures. Pages 71 to 72 Strategy In 2021, MUST updated its materiality assessment, identifying 'Climate change mitigation and adaptation’ as a new material ESG topic impacting the business. In 2024, the Manager reviewed and confirmed that this topic remains material to the REIT. As we prepare to incorporate the ISSB standards into our reporting framework, we will also consider the financial materiality of ESG topics. This qualitative double materiality approach will offer a more comprehensive perspective on both sustainability-related and climate-related risks and opportunities. The Manager plans to conduct a new materiality study to re-evaluate the REIT's material ESG topics, ranking them based on both impact and financial materiality. ESG considerations are integrated into our investment process where we evaluate the criteria such as climate-related exposure, energy performance, and tenant engagement programmes for potential acquisitions. By incorporating ESG factors at various stages of our acquisition process, we ensure the continuity of MUST's sustainable operations. Following acquisition approval, our due diligence process identifies environmental and social risks and opportunities. We review metrics including energy performance, and tenant engagement programmes. In the final stages of acquisition, we record a summary of ESG risks and strengths to maintain MUST's consistent sustainability performance. After acquisition, we incorporate new properties into our existing ESG programme for ongoing performance monitoring. Pages 71 and 83 110 | MANULIFE US REIT
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