Strategy for Decarbonisation of Operations Overview Description Sustainability Issue The built environment contributes approximately 42.0%1 of global GHG emissions, including 27.0% from building operations, making its decarbonisation essential for combating climate change. The Approach Approximately 0.4% of the 2025 revenue (vs 0.1% of 2024 revenue) was allocated towards green building initiatives. This includes Heating, Ventilation, and Air-Conditioning (HVAC) upgrades and window glazing for Exchange and Phipps, and Penn respectively. This supports the Manager’s broader strategy to enhance building operational efficiency. The Manager continues to explore assessing potential energy retrofits and Renewable Energy Credits (RECs). For acquisitions, MUST prioritises energy‑efficient assets with sustainable infrastructure designs and recognised green certifications. The Progress • Reduced energy intensity and Scope 1 and 2 GHG emissions intensity by 29.0% and 40.2% respectively from 2018 base year • Achieved green certifications such as LEED™, ENERGY STAR, WiredScore, SmartScore, Fitwel®, BOMA 360, and UL Solutions for 90.0% of the portfolio by NLA Moving Forward The Manager is committed to reduce Scope 1 and 2 emissions by 38.0% by 2035 and 80.0% by 2050. These targets follow Carbon Risk Real Estate Monitor (CRREM) science-based pathways, consistent with the Paris Climate Goals of capping global warming at 2.0°C, while striving for 1.5°C. BUILDING RESILIENCE 1 GRESB, What is embodied carbon in the real estate and why does it matter?, 29 January 2026. Climate-related Risk Management The Manager’s ERM framework systematically identifies, prioritises, and addresses environmental and climaterelated risks and opportunities affecting its operations. This comprehensive framework targets climate-related risks, with potential for material operational impact, supported by the climate scenario analysis conducted across the portfolio in 2023 to enhance understanding of physical climate-related risks and opportunities. Risk governance operates at the Board level, ensuring robust risk management and internal control systems throughout the REIT. The Manager’s comprehensive risk strategy encompasses risk appetite determination, identification processes, measurement protocols, assessment methodologies, monitoring systems, reporting mechanisms, control procedures, and mitigation strategies. The ARC supports the Board in risk management oversight, including climate risk supervision, through a governance framework centred on the three lines of defence model. Additional details regarding the defence model can be found on pages 54 - 59 in the Annual Report 2025. Environmental and climate-related risks are managed through coordinated involvement of Asset Managers and Property Managers. Asset Managers are responsible for asset-level risk identification and assessment, while Property Managers implement mitigation measures and maintain operational compliance. Annual sustainability surveys facilitate risk reviews, enabling performance tracking, emerging issue identification, and strategic decisionmaking. The SSC provides oversight of environmental and climate-related risks, ensuring that governance structures, accountability frameworks, and risk management practices operate effectively across the portfolio. Environmental and social risk evaluation forms an integral component of the Manager’s acquisition due diligence process, with findings presented to the Manager’s management team for investment approval consideration. Following property onboarding, mitigation strategies are embedded within asset planning processes. Close collaboration between Asset Managers and Property Managers enables environmental performance monitoring and climate risk management, maintaining alignment with portfolio ESG objectives. This integrated methodology establishes clear roles and responsibilities across relevant personnel and functions. Recognising carbon pricing as an emerging climate risk tool, the Manager plans to explore the potential future incorporation of carbon pricing into risk and financial planning processes, ensuring alignment with regulatory developments and industry benchmarks. For more information on the climate-related risk management approach, please refer to Manulife Investment Management’s Real Estate Sustainability Report. / 14 / EXPANDING HORIZONS
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