Manulife US REIT - Sustainability Report 2017

Objectives The Manager aims to improve its sustainability performance in these aspects: Aspects Targets Investments • Improve GRESB scores in 2018 Properties • Maintain or reduce water consumption and intensity • Maintain or reduce energy consumption and intensity • Maintain or reduce GHG emission and intensity • Achieve LEED Gold certification for Exchange Outreach • Increase investors’ engagement activities in 2018 • Maintain or improve our tenant satisfaction surveys score • Increase donations • Increase employee volunteer hours committed Employees (Full-time and contract) • Maintain high participation for Employee Engagement Survey Regulatory Governance • Maintain zero incidents of non-compliance with relevant laws and regulations in 2018 Sustainability Approach The Manager believes that integrating sustainable and responsible ESG practices are key to the successful investment management process and day-to-day operations of the REIT and its properties. With this in mind, in 2017, the Manager established a Sustainability Committee and laid out its aspiration to offer a sustainable property portfolio and implemented a best-in-class approach to sustainability. During 2017, a sustainability governance structure and various processes were established to allow for effective monitoring and management of sustainability performance at both the REIT and property level. Aligned to the sustainability strategies and activities of its Sponsor, the Manager holds the conviction that a strong and effective sustainability strategy can deliver a number of benefits. Unitholders have an interest in this area as empirical evidence suggests that sustainability management contributes to stable long-term returns. Tenants too, are increasingly appreciative of green buildings and the social and wellness facilities provided at the REIT’s properties. In order to maintain and strengthen its workforce, the Manager believes that employees’ loyalty can be enhanced by providing a conducive working environment and various talent retention initiatives. Being a respected employer and landlord as well as a proactive community partner builds a trusted brand. Additionally, reducing the impact on the environment protects the planet and at the same time drives cost savings related to energy and water use, GHG emissions and waste management. To emphasise the REIT’s commitment to sustainability, MUST participated in the GRESB annual benchmarking assessment in 2017. The Manager is delighted to announce that the REIT received a score of 76, which was higher than the global GRESB average of 63. MUST’s portfolio attained scores higher than the GRESB average across all aspects, and performed better than its peer group in the following categories: Policy and Disclosure, Monitoring and Environmental Management Systems (EMS), and Performance Indicators. In 2017, the REIT’s property management team worked hard and its efforts paid off as the REIT recorded a 4.6% decrease in energy intensity, a 4.9% decrease in GHG emissions intensity and 8.8% decrease in water consumption intensity. The Manager will continue to consider ESG aspects in its investment decisions and aim to seek green building certifications for its new properties. Currently, all five of the properties are certified ENERGY STAR. In addition, Michelson attained a Leadership in Energy and Environmental Design (LEED) Gold certification and the intention is to obtain LEED certification in the newly acquired property, Exchange. The Manager has continuously engaged investors, tenants, and the local community to determine and meet their sustainability needs and concerns. For example, state of the art energy storing systems have been operational at Michelson. Electric vehicle charging stations were recently installed at Figueroa, Michelson and Peachtree and Exchange intends to follow suit. During 2017, the Manager met with more than 1,000 investors, analysts and media as part of its engagement initiatives. Other stakeholder engagement initiatives include tenant satisfaction surveys, which are undertaken in alternate years. In 2016, 76.0% of the tenants in MUST’s portfolio completed the survey. The Manager is looking forward with interest to the results of the 2018 survey. Since the REIT’s IPO in May 2016, the Manager has almost doubled its full-time and contract staff to 13 as at 31 December 2017. Most of the key executives are long-serving employees with the Sponsor, averaging of over six years of service. On the governance side, there has been no incidence of non- compliance with any relevant laws or regulations over the last year and the target is to continue this spotless performance. The Manager, with the continued support of the Sponsor, look forward to building on these achievements and extending its sustainability efforts in 2018 and beyond. SustainAbility Report 52 Manulife US REIT