ESG Integration in Investment Process The Chief Investment Officer and the Asset Manager identify potential acquisition opportunities, which undergo evaluation by the Manager before being presented to the Board for approval. ESG considerations form an integral part of the investment methodology, including assessments of environmental- and climate-related exposure, energy performance, and tenant engagement programmes for prospective acquisitions. By integrating ESG factors across multiple stages of the acquisition process, the Manager ensures continuity of MUST’s sustainable operational framework. Optimising Operations Enhancing operational efficiency remains a core priority for MUST. The Manager’s approach is guided by its Asset Manager’s SBS, a comprehensive framework designed to advance sustainability across the REIT’s portfolio. These standards set out defined expectations and best practice measures for property teams, reinforcing continual progress and sustained value delivery. As part of the SBS framework, the Manager completes annual evaluations of energy, water, and waste performance, complemented by comprehensive audits on a three-year cycle to highlight further areas for enhancement. Beyond its internal expertise, the Manager BUILDING RESILIENCE The Manager’s due diligence process identifies environmental and social risks alongside opportunities for improvement. Comprehensive reviews include energy performance evaluations and tenant engagement programme analysis. At the final acquisition stage, ESG risk and strength summaries are documented to maintain consistent sustainability standards across the REIT’s portfolio. Once onboarding is complete, newly acquired properties are incorporated into the established ESG programme framework for ongoing performance monitoring and oversight. engages independent consultants to conduct ASHRAE1 -compliant energy audits, providing a thorough evaluation of all feasible energy efficiency opportunities. Insights from identified opportunities guide the Manager in strengthening asset improvement plans, with a focus on reducing energy use and enhancing building efficiency. The Manager is also exploring smart building technologies and data analytics platforms that enable real time performance visibility, streamline manual processes, and enhance the accuracy and reliability of operational data. 1 The American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) is a standard and guideline for performing energy audits on buildings. Ensure material ESG due diligence items are addressed Ensure consistent and thorough process Share key information collected during investment process Ensure effective transition into ESG programme Budget for ESG costs and savings in financial models Capture efficiency opportunities Include additional information in models and onboarding Summarise property ESG risks and strengths Understand highlevel ESG risks and performance Communicate ESG data to Investment Committee Initial Analysis/ Underwriting Approval Decision Finalise Deal Onboard Property Initial Screening Due Diligence Due diligence and valuation Feasibility and confirmatory diligence Asset stewardship Sustainable Investing and Integration Guidebook: Evaluation Of Sustainability Risks and Opportunities Transaction Teams Transaction Team, Sustainability Team Real Estate Investment Committee Asset Management, Sustainability Team / 20 / EXPANDING HORIZONS
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