Manulife US REIT - Sustainability Report 2017

Greenhouse Gas Emissions A decrease in energy consumption could reduce GHG emissions. Emissions are managed by striving for energy efficiency and, where appropriate, considering cleaner energy from renewable sources. To encourage low-carbon travel, eight electric vehicle charging stations were installed at Figueroa. In addition, bike racks were also installed to promote health & well-being. Water Efficiency To reduce water usage at the properties, low-flow fixtures, meters for water subsystems and rain sensors for irrigation have been installed. At Michelson, an innovative water reuse system that uses reclaimed water from the City of Irvine for use in restrooms, irrigation systems and cooling tower was installed. In addition, the collection and reuse of grey water and native landscaping have been instigated to reduce water demand. At Peachtree, common area restrooms are all hands free and low-flush toilets were installed. Waste Management Facilities are provided in the REIT’s properties to encourage recycling. Figueroa participates in annual e-waste removal of tenants’ computers and small electronics and recycles tenants’ paper and cardboard products daily. Michelson holds an E-Waste Event annually in April, in honour of Earth Day, where tenants participate in a computer and electronics recycling programme. At Peachtree, the Property Manager works collaboratively with tenants to improve waste and recycling methods and reduce their environmental impact. To increase awareness of available recycling programmes, tenants in Peachtree are provided regularly with educational information, including live seminars on best-in-class recycling practices. Quarterly performance results via waste diversion reports allow tenants to understand their performance and set targets for further improvements. Certifications and Energy Ratings Green building certifications provide assurance to tenants and stakeholders that a building performs at a high-level of sustainability. In 2017, Figueroa, Michelson and Peachtree received ENERGY STAR certifications. For commercial real estate, ENERGY STAR is a market differentiator. Studies find that ENERGY STAR certified buildings command a premium of up to 16.0% for sale prices and rental rates. The average ENERGY STAR score for the above properties was 88 in 2016. This means that the majority of our properties perform better than 75.0% of similar buildings in the U.S. In addition, Michelson has a LEED™ Gold certification, demonstrating best-in-class sustainability performance across numerous sustainability aspects. LEED is the most widely used green building rating system in the world and provides a framework to create healthy, highly efficient and cost-saving green buildings. LEED certification is a globally recognised symbol of sustainability achievement Energy intensity was calculated by dividing total energy consumption/total gross floor area 2016 - 2017 Energy Consumption and Intensity Energy Consumption (‘000kWh) Energy Consumption (ekWh/sf) 10,000 15,000 25,000 20,000 30,000 35,000 40,000 15.6 14.9 2016 2017 10 30 13 45 12 40 11 35 14 50 15 55 16 60 17 65 18 70 19 75 20 80 Energy Consumption Energy Intensity Property Certification Figueroa ENERGY STAR Michelson ENERGY STAR LEED™ Gold Peachtree ENERGY STAR Plaza ENERGY STAR Exchange ENERGY STAR Target to achieve LEED™ Gold Water Consumption (m 3 ) Water intensity was calculated by dividing total water consumption/total gross floor area 2016 - 2017 Water Consumption and Intensity Water Intensity (L.sf) 100,000 120,000 80,000 2016 2017 GHG Consumption Water Intensity 55.2 60.6 GHG Emissions Intensity (kgco 2 e/sf) 5 4 3 6 7 GHG emission intensity was calculated by dividing total GHG emission/total gross floor area 2016 - 2017 GHG Emissions and Intensity GHG Emissions (Tonne(co 2 e) 10,000 8,000 12,000 6,000 2016 2017 GHG Emission Emission Intensity 5.7 5.4 4.6% 8.8% 4.9% SustainAbility Report 4,000 60,000 58 Manulife US REIT