DRIVING SUSTAINABLE GROWTH Board Diversity MUST's Board Diversity Policy acknowledges the significance and value of maintaining a diverse Board composition to enhance its functionality. The policy recognises that diversity at the Board level is essential for achieving MUST's strategic objectives and promoting sustainable organisational growth. When appointing Board members, various diversity elements are considered, including but not limited to gender, age, nationality, educational background, experience, skills, knowledge, and independence. While these diversity factors are taken into account, all Board appointments are ultimately merit-based, ensuring that the policy's purpose is upheld while maintaining a well-rounded and effective Board. According to the policy, the Board has an objective to appoint at least a total of 33.0% of female directors over time and ensure that at least 25.0% of its independent directors are women with a view to increasing that to 40.0% by end-2030. As at 31 December 2024, we have achieved 40.0% female representation among our directors, and 33.3% of our independent directors are women. More information on MUST’s corporate governance guidelines and practices can be found on pages 112 to 136 of the Annual Report 2024. Recognised for Governance We are proud to be at the forefront of corporate governance practices in Singapore. We have been awarded the top score of 5.0 for corporate governance by FTSE Russell, a testament to the company's commitment to upholding sound corporate practices. The most recent assessment conducted by FTSE Russell revealed that MUST's ESG score stands higher than the respective averages within its subsector and the broader industry. This positive evaluation demonstrates MUST’s dedication to robust governance standards and its sustainability performance in comparison to peers within the market. We also maintained our ‘A’ grade in GRESB Public Disclosure Assessment for the fifth year running for our high level of material sustainability disclosures. MUST received an ESG Risk Rating of 5.0 from Sustainalytics and was assessed to be at negligible risk of experiencing material financial impacts from ESG factors. As a testament to our good corporate governance practices, MUST achieved its highest score of 96.0 since its inclusion in the 2018 SGTI ranking and moved up the ranks from 16th in 2023 to 11th out of 43 REITs and Business Trusts in Singapore for 2024. Code of Business Conduct and Ethics As a Manulife Group subsidiary, the Manager adheres to the Group's Code of Business Conduct and Ethics. This Code provides essential guidelines for employees to maintain the highest standards of professional integrity in their work. It covers workplace behaviour, business conduct, conflicts of interest, whistle-blowing procedures, and prohibitions on bribery and corruption. Employees violating the Code face appropriate disciplinary action, potentially including termination and prosecution. To ensure employees understand their duties and reporting responsibilities, both mandatory and optional training are provided. New employees are required to complete orientation and induction programmes. The compliance team regularly updates the Board and employees on legal and organisational standard changes, ensuring all levels of the organisation stay informed about regulatory developments. We are dedicated to preventing violations of sensitive issues that could lead to repercussions or fines. We manage this risk by equipping our employees with the necessary understanding and skills to prevent potential breaches. During the Reporting Period, there were no incidents of noncompliance with applicable laws and regulations concerning remuneration, dismissal, recruitment, promotion, working hours, rest periods, equal opportunities, diversity, antidiscrimination, or other benefits and welfare. Consequently, no critical concerns were reported to the Board during the Reporting Period. To familiarise newly appointed directors with MUST's business, strategies, directions, and regulatory environment, we conduct orientation programmes. We also organise relevant training for all directors on topics such as their roles, obligations, and code of conduct. Earlier this year, we engaged a sustainability expert to conduct a comprehensive, full day sustainability-focused training for all employees, including directors, to enhance their knowledge in this area. The training covered topics including an introduction to ISSB and the calculation of Scope 1, 2, and 3 GHG emissions. Our 10 CMS representative licence holders are responsible for a number of responsibilities, including asset management, investment management, financing, and investor relations. They are required to participate in regular training to keep abreast with market requirements. 96 | MANULIFE US REIT
RkJQdWJsaXNoZXIy NTkwNzg=