Manulife US Real Estate Investment Trust : Sustainability Report 2021

Sustainability Report

Contents

• 80 About this Report

• 82 Message to Stakeholders

• 84 Sustainability Approach

• 89 Building Resilience

  90 Climate Action

  92 Environmental Stewardship

• 97 People First

  98 Nurturing our Talent

  101 Safeguarding Health and Well-being

  104 Serving our Community

• 105 Driving Sustainable Growth

  106 Economic Sustainability

  106 Governance Framework

  109 Engaging Investors

• 111 Corporate Policies, Procedures and Frameworks

• 112 GRI Content Index

About this Report

M anulife US REIT (MUST or the REIT) is a Singapore real estate investment trust (REIT) managed by Manulife US Real Estate Management Pte. Ltd.

(the Manager), established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States (U.S.), as well as real estate-related assets. The Manager is wholly-owned by The Manufacturers Life Insurance Company (Sponsor), part of the Manulife Group (Group). John Hancock Life Insurance Company (U.S.) (JHUSA) has been appointed as the property manager (Property Manager) for the properties. Manulife Investment Management Private Market (US) LLC has been appointed as the asset manager (Asset Manager) for the properties.

Reporting Scope

As at 31 December 2021, the REIT owns a total of 12 properties that are strategically located in prime areas of key U.S. cities. Focusing on the activities of the Manager, the REIT and nine1 of its properties, this Sustainability Report showcases the REIT's sustainability approach, initiatives and performance from 1 January to 31 December 2021, with comparative data for the same period in 2019 and 2020.

This report has been prepared by the Manager in compliance with the Singapore Exchange Securities Trading Limited (SGX-ST) Listing Rules 711A and 711B, with reference to the Global Reporting Initiative (GRI) Standards: Core Option and includes consideration of the GRI Construction and Real Estate Sector Disclosures.

The GRI Content Index outlines the material indicators relevant to MUST and can be found on pages 112 to 115 of this Sustainability Report.

We are constantly striving to improve our sustainability disclosures to the investment community. If you have any questions or feedback, please reach out to the sustainability team [e-mail].

Board Statement on Sustainability

As a responsible corporate citizen, MUST is focused on integrating environmental, social and governance (ESG) issues in the way we operate so that we can future-proof our business and continue to deliver long-term value to our stakeholders. The Board of Directors (Board) provides oversight and guidance on the implementation and management of sustainability matters. Working closely with the Sustainability Steering Committee (SSC), material ESG issues are regularly reviewed and included in the strategic formulation by the Board and management to ensure the delivery of MUST's sustainability targets and performance.

Michelson, Irvine

1

Three of the REIT's properties, including Diablo, Park Place and Tanasbourne, are not included in this report since they were only acquired in December 2021.

MANULIFE US REIT

Our ESG Journey

2021

• • Achieved 'AA' in MSCI ESG Ratings

• • Ranked top 2% of companies globally in Sustainalytics ESG Risk Ratings

• • Obtained first sustainability-linked loan

• • All Singapore staff and independent directors trained in ESG

• • Recruited ESG specialist and formed Sustainability Quartet

• • ~25 ESG funds invested in MUST

2018

• • Achieved 5 Star in GRESB Real Estate Assessment

• • Rolled out Sustainable Building Standards to benchmark building performance

2017

• • Formed Sustainability Steering Committee

• • Published first Sustainability Report

• • Adopted United Nations Sustainable Development Goals (UN SDGs)

• • Achieved 4 Star in first Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment

Our 2021 ESG Highlights

2020

• • Aligned Greenhouse Gas (GHG) reduction targets to Manulife Group's net zero and 80.0% GHG reduction targets by 2050

• • Obtained first green loan

• • All staff pay linked to sustainability performance

• • 50.0% female independent directors

2019

• • Achieved 'BBB' in MSCI ESG Ratings

• • ~90.0% of portfolio is green-certified

• • Strengthened governance with additional practices

2016

• • Dedicated Corporate Social Responsibility (CSR) section in Annual Report

• • 3 ESG funds invested in MUST

Building Resilience People First Driving Sustainable Growth Accolades

GHG Intensity -9.3% YoYEnergy Intensity -5.8% YoY Green Certification ~90.0% Average Training Hours per Employee CSR +40.0% YoY Contribution S$25,976,189 Hrs Tenant Engagement1 88.0% with 4 or 5 Star rating Non-compliance & Corruption Green FinancingBoard Diversity Zero Incidents First Sustainability-linked Loan 50.0% Female Independent DirectorsTop 20% of 1,520 Global Entities Top 26% of MSCI All Country World Index ConstituentsTop 2% of 13,650 Companies Globally

1

Biennial engagement survey conducted in 2020.

Message to Stakeholders

Dear Stakeholders,

Despite the challenges faced in 2021 as a result of the second year of COVID-19, we remained focused on improving environmental excellence. We have kept our properties open throughout the past year, placing the safety and well-being of our people, tenants and vendors as our priority.

At MUST, future-proofing our business is key to creating long-term value for our stakeholders. For instance, during the year, we continued to strengthen our ESG governance structure, linking all our employees' remuneration to sustainability performance indicators. We also expanded our ESG capabilities, recruiting a dedicated ESG specialist to the management team to increase our resources. To improve our ESG integration, we refined our sustainability framework, building three strategic pillars that now guide our business operations: Building Resilience, People First, and Driving Sustainable Growth. These pillars, aligned with global sustainability goals, have enabled us to sharpen our focus on material ESG issues in 2021 and will guide our sustainability strategy going forward.

Property Resilience

With the world's real estate sector contributing about 40.0% of global carbon emissions, decarbonisation of the built environment is imperative in tackling climate change. Together with our Sponsor and Property Manager, MUST has developed GHG and energy reduction targets that are consistent with the Paris Agreement goal of securing global net zero emissions by 2050, as reaffirmed at the recent UN Climate Change Conference in Glasgow (COP26). To achieve our goal, we will undertake various measures, such asimproving energy efficiency through the optimisation and digitalisation of our operations, fuel switching, and renewable energy usage. We have set a target of achieving a 100.0% green-certified portfolio by 2030. As at end December 2021, ~90.0% of our portfolio was certified green by either Leadership in®Energy and Environmental Design (LEEDTM), ENERGY STAR or both. We have and will continue to pursue water conservation and waste reduction.

In 2021, MUST recorded GHG and energy intensity reductions of 9.3% and 5.8% respectively. These improvements were attributed to energy savings initiatives, as well as lower physical occupancy of our buildings due to the ongoing pandemic.

As part of our continued strategy to build climate resilience, and in preparation for enhanced disclosures, new requirements on property climate resilience will be included in our Asset Manager's Sustainable Building Standards to ensure that climate-related risks are addressed and monitored across MUST's portfolio.

In this report, we have started to incorporate climate-related disclosures aligned with the Taskforce on Climate-Related Financial Disclosures (TCFD) recommendations in our reporting framework.

Promoting Health and Well-being

The pandemic has highlighted the importance of organisational resilience. Keeping our employees and tenants safe, healthy and engaged has become more important than ever. We have continued to implement safe management measures aligned with social distancing and business continuity and tightened safety and health protocols.

COVID-19 highlighted the critical role that our surroundings play in supporting the health, safety, and well-being of all property occupants and visitors. We upheld the most stringent standards including rigorous cleaning and sanitisation, upgrading of air filters and comprehensive air quality inspections, and installation of touchless building access systems and fixtures to reduce transmission of contagious diseases. As many tenants continued to work from home (WFH) through much of 2021, our Property Manager kept tenant communities connected and engaged with a variety of online events focused on health and wellness.

We achieved a Fitwel® certification for the Michelson property (the first in our portfolio) for providing building features and amenities that improved the health and productivity of tenants. In addition, as at March 2022, four of our buildings also achieved the Fitwel® Viral Response Approval.

Nurturing our Talent

We are committed to nurturing our people and have provided our employees with the resources and flexibility needed to support them throughout the pandemic. This included flexible

working arrangements, physical and mental health talks as well as the provision of personal protective equipment (PPE) to keep our employees safe at home and in the office. An initiative known as 'Fuel Up Fridays' was implemented every second Friday of each month, where staff were granted one day off to refuel their learning needs in the morning and use the afternoons to relax and recharge. Additionally, all employees were granted five extra days of leave during the year to rest and improve their mental well-being.

The disruption in work culture caused by the pandemic and working from home has sharpened our focus on employee engagement and recognition. In 2021, our Ambassadors of Change (AoC) once again played an important role in engaging our staff as they diligently worked from home. Regular dialogues (online or in person) continued with staff at all levels on how engagement might be improved, and team cohesion activities, including Breakfast on the House (BOTH) plus other bonding sessions were organised. All staff were provided with an opportunity to recognise and be recognised through Podium. This is a global digital platform that rewards employees receiving appreciation with vouchers. In 2021, 100.0% of MUST's staff across all levels used Podium to recognise or be recognised by colleagues, enhancing opportunities for engagement.

We continually support our human capital through training and career development. In 2021, the average training hours per employee increased to 50 hours, a result of the expanded training opportunities accessible to staff. To build sustainability competency, all Singapore staff, as well as the independent directors undertook a day of training in ESG and Materiality Reporting. During the year, a Pursuit Learning Hub was launched by the Group to provide tailored LinkedIn learning plans through a fully automated, AI powered platform.

In 2021, tailoring employee experiences in response to workplace challenges have yielded a 2.0% YoY improvement in our staff engagement score (as measured by the Gallup Global Engagement Survey). This is an improvement in mean percentile rank to 89.0% and a strong score against Gallup's overall benchmark for Manulife. This is the third year in a row that the Engagement Survey scores have increased.

Serving our Communities

During this second year of the pandemic, we continued to drive our CSR initiatives and support our communities in whatever way we could. In line with our community development strategy, we contributed about S$26,000 and clocked about 190 volunteer hours on CSR efforts towards our focus areas of helping the vulnerable and isolated elderly, and supported social enterprises. This included meaningful virtual engagement and fundraising activities with Methodist Welfare Services (MWS) and St Luke's Hospital. We also rallied tenants across our portfolio to participate in donation drives organised by local food banks and charities for families in need.

Beyond community engagement, we remained committed to supporting social enterprises through the procurement of all our corporate gifts and events from these sources.

Driving Sustainable Growth

Ethical and responsible corporate practices are integral in delivering long-term value to our shareholders. Our robust corporate governance structure allows us to monitor any changes in relevant laws and regulations to ensure that our internal policies and practices remain compliant and of the highest standard.

In 2021, there were no incidents of corruption or non-compliance with any sustainability-related laws and regulations.

Testament to our high governance standards, MUST also retained its SGX Fast Track status for the fourth year running. We also achieved an upgrade in our MSCI ESG Ratings to 'AA' in 2021 and MUST was ranked in the top 2% of companies globally in Sustainalytics ESG Risk Ratings.

In addition to receiving accolades in Investor Relations (IR) and corporate governance, MUST's sustainability efforts were well-recognised by major ESG benchmarks with a 5 Star rating in GRESB Real Estate Assessment and 'A' in GRESB Public Disclosure.

Engaging our Investors

In what turned out to be another year of COVID-19 challenges and restrictions, it was essential for MUST to maintain frequent and timely communication with the investment community. In 2021, to deepen our engagement with investors and stakeholders across the financial industry and the investor universe, MUST launched its official LinkedIn page. Leveraging the use of social media platforms, we shared U.S. office market updates, portfolio performance as well as sustainability best practices. Since its launch in September 2021, the page has garnered over 1,000 followers as at end February 2022. As part of our Green Dot Series, we launched our inaugural MUST Go Green (MGG), a week-long thought leadership initiative to raise the awareness of ESG. Themed as the 'Rise of ESG', conferences were led by industry experts and one-on-one meetings with ESG investors took place. This initiative has cemented our green flag in the SREIT space and resulted in numerous enquiries from ESG investors and funds to learn more about MUST and its future.

As MUST continues to navigate safely out of the pandemic, and endeavour to overcome the challenges that lie ahead to support the global transition to net zero, we would like to express our thanks to the Board and our stakeholders for their strong support in our ESG initiatives through 2021.

Jill Smith

Chief Executive Officer (CEO)