Manulife US REIT-Sustainability Report 2020

Regulatory Compliance Good corporate governance ensures MUST’s accountability towards various stakeholders and avoid any potential detrimental breaches before they occur. In a highly regulated sector, our Board of Directors and management work together to safeguard the interests of Unitholders. We ensure compliance with local and foreign laws and regulations to prevent breaches in regulations or corruption, maintaining our reputation and stakeholder trust. In 2020, there were zero incidents of non-compliance and corruption. Governed by our Policies MUST recognises the importance of having a robust governance structure supported by comprehensive compliance policies and procedures to drive long-term growth. Being listed on SGX-ST and regulated by the Monetary Authority of Singapore, MUST and its Manager are required to comply with a range of rules and regulations. Specific policies and procedures are also instituted (as shown on pages 89 to 90) to ensure compliance with the regulatory and operating environment. The Manager, as a subsidiary of Manulife Group, is also subjected to certain Group-wide policies and procedures. MUST’s Sponsor is a Securities and Exchange Commission registered company and the Manager aligns its corporate governance to that of its Sponsor as well. The Manager’s compliance team works closely with the Sponsor’s legal and compliance teams plus appointed external legal counsel in Singapore and the U.S., to ensure that MUST and the Manager operate within their regulatory ambit. Details on corporate governance can be found on page 94 of MUST’s 2020 Annual Report. To manage compliance risk, the compliance team is involved and consulted on all business activities. The periodic submission of data to regulators and application and review of licences are also tracked by the team. Alongside the compliance team, the internal audit team reviews processes and procedures, while the Manager follows a comprehensive enterprise risk management framework with reports submitted to the Board on a regular basis. Following the appointment of a new Independent Non- Executive Director and member of the Audit and Risk Committee on 10 November 2020, 50.0% of our Independent Directors are female, further boosting our Board diversity and representation for equal voices in decision making. MUST’s Board Diversity Policy, Investor Relations Policy, Whistle-blowing Policy and Manulife Code of Business Conduct and Ethics are publicly available at http://www. Ethics in our Workplace Capital Markets Services (CMS) representative licence holders are responsible for functions ranging from asset management, investment management, finance to investor relations. They attend regular training to stay up to date with the market regulations. As at 31 December 2020, 12 out of 17 full-time employees of the Manager are CMS representative licence holders under the Securities and Futures Act (SFA) of Singapore. Compulsory and voluntary training are available to employees to ensure that they understand their roles and reporting obligations. New hires are subject to mandatory orientation and induction programmes. The compliance team delivers regular updates on legal and organisational standards to the Board of Directors and employees. Employees also undergo training on anti-bribery and anti-corruption so that they are aware of the importance of complying with relevant laws, as well as to educate employees on policies regarding gifts and entertainment. We are committed to preventing any breaches of sensitive issues that might lead to consequences beyond fines. Therefore, by equipping our employees with the necessary knowledge and skills, we can avoid any potential breaches altogether. In 2020, all employees’ incentive pay policies are linked to MUST’s sustainability performance, and the Manager targets to do the same in 2021 to establish MUST’s commitment to sustainability. Compliance in our Properties We have a responsibility to ensure that our tenants and users of our properties remain safe from injury in our properties. The Property Manager has a compliance team to manage compliance at the property level. Regular training and engagement sessions are conducted for tenants to raise any relevant issues. Grievance mechanisms such as feedback channels, anonymous hotlines, and whistle-blowing channels are also available for all other stakeholders. Recognised for Governance We take pride in establishing strong corporate governance practices that are at the forefront of the industry in Singapore. Our ranking for GIFT 2020 has improved to 4 th out of 45 REITs and Business Trusts. In addition, we have shown a vast improvement in our score for SGTI 2020, with an increase of 19.1 points and a jump of 24 positions. As an SGX Fast Track issuer, MUST is also recognised for its high corporate governance standards and good compliance track record. Companies in this programme enjoy prioritised clearance for selected corporate action submissions to SGX RegCo. MUST also achieved an ‘A’ in the MSCI ESG Ratings and is included in the iEdge SG ESG Leaders Index, proving its status as a leader of sustainability practices among our industry peers. 88 SUSTAINABILITY REPORT 2020 ETHICAL CORPORATE BEHAVIOUR