BUILDING RESILIENCE CLIMATE ACTION Task Force on Climate-Related Financial Disclosure (TCFD) Climate-related risks have become crucial for all businesses due to their extensive and potentially severe impacts on operations, financial performance and long-term viability. These risks, including physical risks (such as extreme weather events) and transition risks (such as policy changes and shifts towards a low-carbon economy), can significantly affect a company's assets, supply and value chain, and overall business model. By integrating climate risk management into our sustainability strategy, we can improve our resilience, seize opportunities in the transition to a low-carbon economy, and contribute to global climate change mitigation efforts. MUST is aligned with both the Sponsor’s Climate Action Implementation Plan, as well as the Asset Manager’s Climate Change Statement, Nature Statement, Water Statement, and Real Estate Climate Disclosure report. This alignment provides guidance for our climate mitigation and adaptation efforts to reduce the impact on and vulnerability of our asset operations. Our Sponsor has supported TCFD since 2017 and published its first TCFD-aligned disclosure in 2019. Our business strategy emphasises transparency in disclosures and the development of climate risk resilience in accordance with TCFD recommendations. In preparation for the transition to ISSB standards, we have provided a summary with enhanced responses to TCFD recommendations. Please refer to pages 110 to 111 of this report for consolidated disclosure to TCFD recommendations. 1 UN Environment Programme Finance Initiative, Climate Risks in the Real Estate Sector, 7 March 2023. Climate 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 for the REIT. We integrate ESG considerations throughout our acquisition and portfolio management processes, guided by our Asset Manager's Sustainable Investing and Sustainable Risk Statement, Climate Change Statement, Nature Statement, and Water Statement. Our due diligence process evaluates factors like climate-related exposure, energy performance, and tenant engagement programmes. During final acquisition stages, we record a summary of ESG risks and strengths to maintain MUST's sustainability performance consistency. New properties are then incorporated into our existing ESG programmes. A crucial part of our environmental sustainability strategy focuses on reducing our carbon footprint and improving energy consumption efficiency. We pursue these goals through measures such as optimising building operations, considering potential energy retrofit options. We also remain dedicated to incorporating sustainability considerations into our financing mechanisms and expanding our green funding sources. As at 31 December 2024, MUST’s total green and sustainability-linked loans amounted to US$550.8 million, accounting for 73.9% of the total loans. The increase in loan proportion as compared to the prior year is due to the debt repayment of non-green and non-sustainability-linked loans. Strategy for Decarbonisation of Operations Overview Description Sustainability Issue With the world’s real estate sector contributing about 40.0% of global carbon emissions1, decarbonisation of the built environment is imperative in tackling climate change. Our Approach Due to MUST’s high gearing, we had to limit our capital expenditure and hence only approximately 0.1% of our 2024 revenue (vs ~0.3% of 2023 revenue) was allocated towards green building initiatives. This includes retro-commissioning of Heating, Ventilation, and Air-Conditioning (HVAC) equipment and modifying space temperature setpoints for both Figueroa and Michelson. This commitment aligns with our broader approach, which focuses on improving the operational efficiency of our buildings. Additionally, we are exploring other energy retrofit options and the purchase of Renewable Energy Credits (RECs). When considering acquisitions, MUST considers the purchase of energy-efficient buildings, incorporating eco-friendly designs, and adhering to green certifications standards. Our Progress • Reduced energy intensity and GHG emissions intensity by 27.4% and 36.3% respectively from 2018 base year • Achieved green certifications such as LEEDTM, ENERGY STAR, WiredScore, SmartScore, Fitwel® and Fitwel® Viral Response, and BOMA 360 for 92.2% of our portfolio by NLA Moving Forward We are committed to reducing our Scope 1 and 2 GHG emissions by 38.0% by 2035, and 80.0% by 2050, in line with our Asset Manager’s target. These targets were developed in line with the Carbon Risk Real Estate Monitor (CRREM) science-based decarbonisation pathways, which are aligned with the Paris Climate Goals of limiting global temperature rise to 2.0°C, with the ambition towards 1.5°C. ANNUAL REPORT 2024 | 77
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