Manulife US REIT-Sustainability Report 2020

Dear Stakeholders At MUST, we believe that our long-term success is tied to ESG, and that sustainability, as an integral part of our operations is the way forward. In 2020, the disruption to lives and economies made us more certain than ever that the longevity of MUST’s business depends on four strategic areas of sustainability and we will place our focus on these to identify and manage business risks and opportunities. Through our frequent engagement with external and internal stakeholders, we recognise that environmental, social and governance factors are increasingly being assessed and monitored by investors as part of their investment process. Hence, in 2020, we committed resources to integrate a wide range of ESG programmes and initiatives across our business whilst ensuring that the interests of our Unitholders were not only maintained but also enhanced. Our fourth Sustainability Report showcases the progress made in 2020, with focus on four strategic areas that matter most to our stakeholders: Commitment to Sustainable Properties With the expertise and support of MUST’s Sponsor and Property Manager, we ensure that our buildings consistently outperform their market peers in terms of eco-efficiency and cost-effectiveness. Eight of our nine properties have met rigorous standards established by the U.S. Environmental Protection Agency and were ranked among the top 25 th percentile of similar properties for energy efficiency to be ENERGY STAR ® certified. Currently, 86.5% of MUST’s portfolio by Gross Floor Area (GFA) is green building certified by either Leadership in Energy and Environmental Design (LEED TM ), ENERGY STAR ® or both. In 2020, with the COVID-19 pandemic raging, tenants placed higher priority on air quality and ventilation which are crucial to reducing the spread of airborne diseases. To emphasise our commitment to providing tenants with a healthy working environment, we have set a new long-term target to increase green building certifications with the aim of achieving 100.0% by 2030. This year, we have also engaged MSCI Real Estate Climate Value-at-Risk to assess the physical and regulatory risks of our entire portfolio. With several initiatives (refer to pages 76 to 77) launched to minimise the REIT’s environmental footprint in 2020, MUST recorded energy, water and GHG intensity reductions of 23.2%, 36.6% and 30.7% respectively. These improvements were also attributed to the lower physical occupancies of our buildings due to COVID-19. Reductions translated into a positive financial impact for the year, as we incurred lower utilities expenses for all seven properties reported in 2019 on a like-for-like basis. In March 2021, to further our commitment on sustainable properties, we obtained MUST's maiden sustainability- linked loan of US$250 million which allows the REIT to enjoy savings in borrowing costs as it achieves energy, water and GHG targets. Our Asset Manager has set a GHG reduction target of 80% by 2050 for its portfolio which includes all of MUST's nine properties. In 2021, our Asset Manager is developing a model to identify GHG reduction opportunities specifically for MUST’s buildings. By projecting GHG emissions reduction scenarios and identifying relevant financial implications, the model will direct strategic, operational and capital planning within the portfolio to reduce MUST’s GHG footprint. As a result, management will initiate GHG reduction targets for the portfolio from 2022. Managing External Relations Despite COVID-19 curbing physical interactions in 2020, we continued to find meaningful connections with our investment, tenant and local communities via virtual engagement. Adapting to the new normal, we explored new outreach opportunities enabling collaboration with different groups in the community. Human Capital Attract and retain talent by cultivating a positive work environment that focuses on diversity, equal opportunities, training, health and wellness External Relations Understand and meet the needs of investment, tenant and local communities through regular and effective engagement initiatives Ethical Corporate Behaviour Ensure continued adherence to regulations through, the highest standards of governance and best practices by employing stringent corporate compliance and internal audit practices Sustainable Properties Create value for tenants and Unitholders by reducing the environmental impact of our properties 66 SUSTAINABILITY REPORT 2020 MESSAGE TO STAKEHOLDERS