Manulife US REIT - Sustainability Report 2017

Figueroa Michelson Peachtree • Installed Variable Frequency Drive (VFD), Direct Digital Controls (DDC), Demand Flow and auto power sweep at 6pm in the building to reduce energy consumption • Installed eight electric charging stations for vehicles • Refitted LED in the car park, including the pole lights, building stairwells and all multi-tenant corridors • Installed Pony chiller which is a smaller chiller that provides after hours Heating, Ventilation and Air Conditioning (HVAC) • Operated battery storage which reduced peak electricity usage • Upgraded the Energy Management System to increase the efficiency of HVAC system • Installed energy efficiency software for HVAC system • Converted Central to Variable Flow (added VFD to condenser water pump) • Upgraded the Energy Management system to increase the efficiency of HVAC system • Converted the building’s interior and exterior lightings to highly efficient options or LED • Installed the Heat Return Unit (HRU) system which takes the warm exhaust from the building and uses it to heat the outside air before it is pumped into the building • Installed VFDs for fan motors on cooling tower and domestic water pumps • Completed elevator modernisation in 2016 / 2017 • Painted the garage ceiling white for reflective purpose, thereby requiring less lighting around the exterior of the parking floors • Installed LED on top floor of parking garage Energy, Emissions and Water The Manager aims to minimise the environmental impacts of MUST’s properties through efficient operations. The property management team is responsible for actively overseeing environmental performance and providing feedback to the Manager. The Engineering and Technical Services team also provides expert guidance on improving the sustainability efforts for the properties. There are several initiatives in place to monitor the environmental performance: • Third party systems to report on energy, GHG emissions, water consumption, and waste production and diversion • Environmental Inspection Reports by relevant regulatory bodies • Energy, water and indoor air quality audits conducted by third parties • Annual GRESB property survey • Green building certification and renewal processes Case Study: Michelson At Michelson, Tesla was contracted to install and connect a series of high-tech batteries to the property’s main power supply. The batteries are charged at night when utility rates are low, and discharged during the day as supplemental power, when utility rates are at peak levels. This project reduces demand for electricity during peak hours, and reduces operating cost by US$120,000 annually. Lighting upgrades to energy efficient lightbulbs are continuously underway and options are being considered in regards to the installation of on-site renewable energy. Energy Efficiency The Property Manager, on behalf of the REIT, is constantly looking for opportunities to increase energy efficiency. A decrease in energy usage may lead to substantial cost savings for tenants as well as reduces GHG emissions. In addition, eco-efficient buildings are increasingly in demand by tenants, especially in those areas where the REIT’s properties are located, prioritising environmental criteria in their rental consideration. 57 Annual Report 2017