Manulife US REIT - Annual Report 2020

We aim to create value for tenants by reducing the environmental impact of our properties and generating positive financial impact for our Unitholders. MUST’s sustainability performance is monitored and managed by our Sponsor using the Sustainable Building Standards and assessed externally by GRESB Real Estate Assessment. Our Asset Manager has in place a set of energy, water, GHG and waste diversion targets for all properties under Manulife Investment Management's real estate arm. These targets cover the properties in MUST’s portfolio and progress are reported annually in Manulife’s publicly available real estate sustainability report. In 2021, we are taking another step forward and will be working with our Sponsor to set targets specific to MUST’s properties. Our Approach to Reducing Footprint Assessing Climate Change Risks In 2020, we evaluated the impact of climate change on MUST’s portfolio through both internal and external assessments. Internally, our Asset Manager conducted a programme to understand the climate change risks faced by our portfolio, and our corresponding resilience to these risks. The programme included reviewing of climate resilience initiatives such as flood risk management, conducting internal interviews with functional departments, providing training webinars to property managers and documenting property measures. We have also engagedMSCI Real Estate Climate Value-at-Risk to assess the physical and regulatory risks of our entire portfolio. By identifying physical and transition risks, we were able to identify opportunities to improve the climate resilience of our properties. In 2021, new requirements on property climate resilience will be included in our Asset Manager's Sustainable Building Standards. Identifying Carbon Reduction Opportunities To achieve viable reductions in GHG emissions, our Asset Manager developed a model to identify GHG reduction opportunities across its portfolio including MUST’s properties. This included projecting GHG emissions reduction scenarios and identifying the financial implications of pursuing a GHG reduction strategy. As a result, our Asset Manager has set a GHG reduction target of 80% by 2050 for its portfolio including MUST's properties. In 2021, to further reduce our GHG footprint, we are working with our Asset Manager to develop a GHG model specific to MUST’s properties. Embedding Sustainability in Our Operations To maximise resource efficiency across MUST’s portfolio, we tapped into all aspects of our operations over the years to implement a vast variety of initiatives and policies at our properties: Retrofitted energy-saving Light Emitting Diode (LED) lights in buildings to improve energy efficiency Used reclaimed water in building operations and installed automatic handsfree faucets to improve water consumption efficiency Monitored and controlled energy efficiency of Heating, Ventilation, and Air Conditioning (HVAC) through cloud-based remote Building Management System Installed low flow fixtures, which are plumbing fixtures that use significantly less water than conventional fixture Installed an intelligent HVAC platform (Load Base Optimisation System) to increase energy efficency Metered out water subsystem to monitor and better manage water usage Installed Variable Frequency Drive on condenser water pumps to reduce water and energy consumption Implemented the collection and reusage of greywater Installed charging stations at various locations for electric vehicles and shuttle buses Carried out improvements to the cooling tower water management to allow circulatory water to be more efficiently treated Purchased energy from renewable sources Installed a STEM Battery Storage System with AI system to store energy during off- peak period and distribute evenly throughout the day Energy Water 76 SUSTAINABILITY REPORT 2020 SUSTAINABLE PROPERTIES