BUILDING RESILIENCE Optimising our Operations At MUST, improving building operational efficiency is our fundamental focus. Our strategy is supported and guided by our Asset Manager, Manulife Investment Management, whose SBS serve as a comprehensive framework for advancing sustainability across our entire portfolio. The SBS outline specific requirements and optimal practices for property teams, promoting continuous enhancements to benefit our clients. Using our proprietary SBS, we assess the energy, water and waste performance of our properties and portfolio on an annual basis, and strive to perform comprehensive energy, water, and waste audits on our properties every three years, aiming to identify potential areas for improvement. While leveraging our internal expertise, we also partner with external consultants to conduct comprehensive ASHRAE1compliant energy audits, ensuring we identify all possible energy efficiency opportunities. Based on the identified opportunities, we assess and refine our asset improvement plans, focusing on optimising energy usage and enhancing overall building efficiency. MUST is constantly looking for feasible opportunities to adopt smart building technologies and advanced data analytics. These solutions enable real-time monitoring and insights, replacing traditional time-based management, reducing manual labour requirements, and improving accuracy and reliability of building performance data. Furthermore, we have adopted an Environmental Management System (EMS) to track and control the environmental effects of our operations. The EMS aligns to the International Organisation for Standardisation (ISO) 14001 guidelines, providing a methodical framework for comprehending and addressing our environmental footprint. We are constantly refining our current metrics and objectives to steer our decarbonisation efforts, while simultaneously enhancing our data collection and analysis processes. Energy2,5,6,7,13 and Emissions2,3,4,5,8,9,10,11,12 Aligned with the GHG reduction targets of our Sponsor and Asset Manager, we have developed the following targets, against a 2018 base year: • Energy intensity: 33.0% reduction by 2035 and 49.0% reduction by 2050 • GHG emission intensity: 38.0% reduction by 2035 and 80.0% reduction by 2050 Comparing against the 2018 base year, energy intensity and GHG emission intensity decreased by 27.4% and 36.3% respectively. This is largely attributed to Asset Enhancement Initiatives (AEIs), installation of lighting retrofitting and energy efficient HVAC equipment, and purchase of renewable energy over the years. On a like-for-like (LFL) basis, energy intensity and GHG emissions intensity reduced by 3.1% and 9.6% respectively in 2024. This is mainly due to a number of energy-saving measures put in place throughout the Reporting Period, where we have completed the retro-commissioning of the HVAC for Michelson and modified the space temperature setpoints for both Figueroa and Michelson with approximately 0.1% of our 2024 revenue allocated to towards these green initiatives. It was estimated that the annual cost savings would be US$119,000 and would contribute to an annual GHG emissions reduction of 130 tCO2e. Although there were no RECs purchased in 2024, we will continue to seek opportunities to invest in sustainable green energy sources to drive a greener portfolio, where feasible. At MUST, we continue to optimise our operations and maximise resource efficiency. To enhance transparency and analyse our environmental impact across our entire value chain, we have embarked on Scope 3 data collection and aim to disclose Scope 3 emissions in the near future. A full breakdown of our energy consumption and GHG emissions figures is provided in the Appendix: 2024 ESG Data Summary. 1 The American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) is a standard and guideline for performing energy audits on buildings. 2 According to GRESB, like-for-like change only includes comparable data that is the portion of the portfolio that has remained for, at least, two successive reporting years. For example, assets sold, acquired or that have undergone new construction or major renovation projects should be excluded from LFL calculations. For MUST, Capitol has been divested and is excluded for 2023 and 2024 for LFL calculations. 3 Targets are based on Scope 1 and Scope 2 emissions for the properties that are within our operational control. 4 MUST’s carbon footprint is calculated in accordance with the GHG Protocol, developed by the World Resources Institute and the World Business Council on Sustainable Development. The GHG Protocol is the most widely used standard for greenhouse gas accounting in the world. 5 2023 data published in 2023 Sustainability Report was based on estimates whereas 2023 data in this report has been revised to reflect the actual consumption. 6 Energy consumption comprises purchased and renewable electricity, as well as natural gas. The total energy consumption is expressed in equivalent kilowatt hours (ekWh). Likewise, the types of energy included in the reduction from baseline year comprise purchased and renewable electricity, as well as natural gas. There was neither electricity sold nor cooling consumption during the Reporting Period. 7 Energy intensity is calculated relative to Gross Floor Area (GFA), expressed as ekWh/sq ft. 8 Scope 1 emissions are calculated from the consumption of natural gas and expressed in tonnes of CO2e. Scope 1 emission factors for direct energy consumption in the U.S for natural gas were taken from the Emission Factors for Greenhouse Gas Inventories published by the U.S. EPA in January 2025. 9 Scope 2 emissions are calculated from the consumption of grid electricity, expressed in tonnes of CO2e. Scope 2 emission factors for the calculation of electricity consumption were taken from the Emission Factors for Greenhouse Gas Inventories published by the U.S. EPA in January 2025. 10 GHG emissions intensity is calculated by total GHG Emissions relative to GFA, expressed as kgCO2e/sq ft. 11 Reduction in GHG emissions is based on Scope 1 and Scope 2 emissions compared to the 2018 base year. 12 Figures in the Energy and Emissions section was calculated based on the location-based methods as defined by the GHG Protocol Corporate Standard. 13 The grid electricity provider that a property is using may not always be the same as the one that REC purchases are made from. 84 | MANULIFE US REIT
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