Manulife US REIT-Sustainability Report 2019

Investment Management Due to the growing importance of sustainability, we have strengthened our sustainable practices by aligning our interests with those of our stakeholders. At the same time, by creating more efficient, environmentally friendly, healthy and attractive spaces for tenants, we are improving the competitiveness of our assets. With our core business in investment management we enforce responsible and sustainable practices at all levels of MUST’s operations. To maintain relevance and competitiveness in our core business, and to extend our lead as a responsible investment manager, we have implemented many sustainable policies and practices firm-wide. Before we adopt new policies, we carefully evaluate all internal and external impacts, and we pilot the policies. Applying these stringent criteria ensures that MUST makes responsible investment decisions, which ultimately boosts both the standard and the value of the services and assets we provide to our investors. New Investments When evaluating a new investment, we are guided by our acquisition mandate. The CIO and U.S. asset manager sources potential acquisition opportunities and together with the Manager who vets the properties and the Board ultimately approves them. During due diligence, we examine environmental and social sustainability risks and opportunities. The Property Manager will complete a Sustainability in Investment and Due Diligence Form, which summarises the property’s ESG performance and ensures ESG factors are considered and communicated. To ensure a seamless due diligence and investment process, we incorporate ESG considerations, such as environmental contamination, energy performance, and tenant engagement programmes into our standard Due Diligence Checklist. Dedicated specialists in our Engineering and Technical Services department support our investment teams by sharing their expertise in building engineering, sustainability and environmental and safety hazards. New Investments Asset Management 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 Property Manager Level 2019 SUSTAINABILITY REPORT 73