Approach to Materiality Following the GRI Standards 2021, our material ESG topics reflect MUST's most significant economic, environmental, social and governance impacts, including those on human rights. Since our inaugural Sustainability Report in 2017, MUST has aligned its sustainability efforts with stakeholder expectations by prioritising material ESG topics. We refined our sustainability framework and thoroughly reviewed our material ESG topics in 2021, considering external factors that could impact our operations. This process was supported by an independent consultant who employed a four-step materiality determination assessment. This approach helped us identify ESG topics of relevance and materiality to both our internal and external stakeholders. MUST identified 19 material ESG topics relevant to its operations, with 14 of these designated as highly critical. In 2024, the Manager reassessed these material ESG topics and their priority levels, confirming that the 14 highly critical topics remained pertinent for the Reporting Period. 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. Analyse the survey data and calculate the weighted materiality scores for each material ESG topic Construct a scatter graph to determine which ESG topics should be considered as material and prioritised based on likelihood and impact FOUR-STEP MATERIALITY DETERMINATION Design the stakeholder engagement survey in accordance with GRI standards and the doublemateriality principles Conduct peer benchmarking to evaluate the common material ESG topics in the industry Once material ESG topics have been prioritised, it will be internally reviewed, validated, and approved by the SSC and the Board Research on the core ESG topics that currently concern the industry Define clearly all potential material ESG topics, scope, and types of stakeholders to be covered in the stakeholder engagement survey Conduct materiality determination assessment every 3 years In view of the announcement of MUST’s Recapitalisation Plan on 29 November 2023, the materiality determination assessment will be postponed until MUST’s portfolio and operations stabilise. STEP 1 STEP 4 STEP 2 STEP 3 SUSTAINABILITY GOVERNANCE MUST recognises that effective sustainability performance requires a well-structured, dedicated leadership team. 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. PRIORITISE RATE VALIDATE IDENTIFY Distribute the stakeholder engagement surveys to relevant stakeholders to collect their opinions Upon identifying potential material ESG topics, and their positive and negative impacts on business activities, cluster similar topics together. A rating process can be done to assess which topics are most common across MUST and its subsidiaries ANNUAL REPORT 2024 | 71
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