Manulife US REIT - Sustainability Report 2017

Energy, Emissions and Water for FY2017 versus FY2016 Targets Energy consumption and energy intensity • Energy consumption reduced by 4.6% • Energy intensity reduced by 4.6% GHG emission and GHG emission intensity • GHG emission reduced by 4.8% • GHG emission intensity reduced by 4.9% Water consumption and water intensity • Water consumption reduced by 8.8% • Water intensity reduced by 8.8% • Maintain or reduce energy consumption and intensity • Maintain or reduce GHG emission and intensity • Maintain or reduce water consumption and intensity Engaging Communities The Manager believes that community engagement plays an important role in sustainability and has initiated various activities for its stakeholders in 2017. Tenant Community The REIT maintains high occupancy at all of its properties through various tenant engagement activities. Maintaining close relationships and listening to tenants’ views enable the Manager to provide high quality services and facilities in the properties. Apart from enhancing equipment and facilities to reduce energy and water consumption, the Property Manager partners with tenants to promote environmental sustainability awareness. Initiatives include sharing building performance results with tenants, offering sustainability tips and holding events and educational sessions. Greater collaboration on sustainability is an essential, mutually beneficial activity that supports tenants’ business objectives and increases their satisfaction with the properties and services. In addition, tenant appreciation events are held to encourage interaction between the Property Manager and tenants. These events include food festivals such as “Ice cream social”, “In-N-Out Burger”, “Holiday Brunch”and golf tournaments. Kingsley Associates has been engaged to conduct tenant satisfaction surveys in alternate years at all MUST’s properties to better understand and serve its tenants. The survey gathered information on tenants’ overall satisfaction, perception of property, satisfaction with management, leasing and maintenance, renewal intentions and likelihood of property recommendations. The overall satisfaction rate on the most recent survey which was completed in 2016 was 97.0%. The next survey will take place in 2018. FY2017 Performance and Targets The bulk of the REIT’s properties’ energy consumption arose from purchased grid electricity in 2017. Electrical energy consumption amounted to 26,912 equivalent kilowatt hours (ekWh), representing a 4.6% year-on-year decrease from 28,219 ekWh in 2016. Overall building energy intensity also decreased to 14.9 ekWh/m 2 in 2017 from 15.6 equivalent kilowatt hour per m 2 (ekWh/m 2 ) in 2016. Consistent with the decrease in energy consumption and intensity, the REIT’s indirect GHG emissions and intensity from electrical energy decreased in 2017 to approximately 9,780 metric tonnes of carbon dioxide equivalent (tCO 2 e) and 5.4 tCO 2 e /m 2 , respectively. Indirect GHG emissions and intensity from electrical energy was approximately 10,300 metric tCO 2 e and 5.7 tCO 2 e/m 2 in 2016. Water consumption has decreased over the past year from 109,250m 3 in 2016 to 99,600m 3 in 2017 and water consumption intensity decreased 8.8%. Energy, Water and Waste Reduction Efforts – The Manager The Manager extends its commitment to sustainability at its Singapore office through various initiatives. Employees are encouraged to switch off electronic devices when they are not in use. Lights and air conditioners are also turned off automatically at default times every night and over weekends to reduce energy consumption. Recycling facilities for cans, glass, plastic and coffee capsules have been introduced to employees in 2017. The Manager also promote environmental awareness by distributing eco-friendly corporate gifts such as cotton bags to investors. 59 Annual Report 2017