Manulife US REIT - Sustainability Report 2018

Property Manager Level New Investments When evaluating a new investment, we are guided by our acquisition mandate when considering the appropriateness of the investment. New acquisitions are sourced by the U.S. asset manager, communicated to MUST’s Chief Investment Officer (CIO), vetted by the management team and ultimately approved by the Board. During due diligence, we examine both environmental and other sustainability risks and opportunities. The investment team is required to complete a ‘Sustainability in Investment and Due Diligence Form’ that summarises the ESG performance of the property for all investments. Manager Level Acquisition Mandate Describes the quality of properties MUST targets, including sustainability risks and/or opportunities Investment and Due Diligence Checklist Evaluation of ESG risks and opportunities in its investment analysis Sustainability Checklist Considers sustainability performance and programmes such as Green Building certification and energy efficiency in pre- investment Sustainable Buildings Standards and Sustainable Real Estate Policy Evaluation of ESG risks and opportunities via capital planning, budgeting, asset management and building operations Capital Plan Approval Recommendations made by U.S. Investment Manager and Property Manager for capital investments to improve ESG performance Environmental Health and Safety Management Analysis during ongoing management of portfolio Stakeholder Engagement Gaining feedback on sustainability priorities in various stakeholder groups Stakeholder Engagement Gaining feedback on sustainability priorities on various stakeholder groups New Investments Asset Management practices start at the point of deciding which assets to acquire and continue through management of the assets, to disposal. Responsible Property Investment We have a number of policies and initiatives at different levels that enhance our responsible property investment practices. These cover new investment acquisition processes as well as active asset management and property management. Investment Management Managing our investments is a vital factor for our business. Our investment decisions affect the quality of assets, DPU and NAV. When making these decisions, we must consider internal and external aspects that may have an impact, including sustainability-related ones. We manage our assets responsibly, in that we seek to mitigate sustainability risks and take advantage of sustainability opportunities. Our responsible property investment Sustainability Report 2018 64 SUSTAINABLE PROPERTIES