Manulife Us Reit · SGX:BTOU
Manulife Us Reit — ESG Presentation (October 2021)
33 slides from Manulife Us Reit's sustainability presentation, Oct 5, 2021
Slide 1: Rise of ESG: What it Means for REITs and Investors
Rise of ESG: What it Means for REITs and Investors 5 Oct 2021 1 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 2: Important notice
Important notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Manulife US REIT in Singapore or any other jurisdiction nor should it or any part of it form th
Slide 3: Contents
Contents Constituent of : 01 Rise of ESG Singapore Small Cap Index 02 MUST’s ESG Journey CarbonCare Asia Pacific Green REIT Index 03 The Road Ahead iEdge SG ESG Indices 04 Appendix GPR General (World) Index MUST’s Signature Series FTSE ST REITs Index FTSE EPRA Nareit Developed Index Glossary FTSE EP
Slide 4: Rise of ESG
4 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 5: It all started with the Paris Agreement in 2015…
It all started with the Paris Agreement in 2015… • In order to limit global warming to ≤ 1.5°C1, emissions need to -50% by 2030 and reach Net Zero by 2050 • ~200 countries signed up to landmark Paris Agreement to fight climate change What happens at ≥ 1.5°C Loss of habitats Threats to food “ We do n
Slide 6: Record investment in sustainable fund assets
Record investment in sustainable fund assets By 2023, 80% of investors intend to incorporate ESG into their strategy1 Net inflows into sustainable funds +109% YoY More investors than ever want ESG4 to US$347 b2 152 71 83 ~75% 65% 62 43 41 Believe businesses Believe ethical businesses 37 21 16 15 24
Slide 7: What does all these mean for SREITs?
What does all these mean for SREITs? ~40%1 of global emissions are contributed by real estate ESG-focused REITs have Green is good for office owners and investors2 a competitive edge LEED-certified buildings have higher rents, value and occupancy Attract quality tenants • LEED certification makes up
Slide 8: Rise of ESG: Regulatory developments
Rise of ESG: Regulatory developments Singapore U.S. • Singapore aiming for Net Zero as soon as viable by 2nd half • U.S. has pledged to achieve Net Zero emissions by 2050 of century1 • Many states/local regulators are incentivising energy • Jan 2017: SGX mandated sustainability reporting efficient b
Slide 9: MUST's ESG Journey
9 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 10: MUST's ESG journey - Key milestones
MUST’s ESG journey - Key milestones 2019 2020/2021 • ~90% of portfolio is green-certified: 5th LEED certification, 7/9 Energy Star • Aligned to Manulife’s Net Zero & • Strengthened governance with additional policies 80% GHG reduction targets by 20501 • First green loan in 2020, first 2018 sustainab
Slide 11: Our ESG structure and approach
Our ESG structure and approach Sustainability Steering Committee Our sustainability focus Established in 2017 to drive sustainability strategies/action Sustainable properties plans, set targets, oversee monitoring processes and review Create value for tenants and unitholders by reducing the environm
Slide 12: ~90% of MUST's properties are green
~90% of MUST’s properties are green In U.S. major cities, only 13.8%1 of buildings are green Capitol Exchange Penn Phipps • LEED™ LEED™ Gold, Most widely used global LEED™ Platinum green building rating and Energy Star and Energy Star system to recognise healthy and highly efficient green buildings
Slide 13: Sustainable properties
Sustainable properties Objectives and targets achieved in 2020 Key targets - 2021 & beyond E Create value for tenants and unitholders by reducing • Maintain 5 Star rating for the environmental impact of our properties GRESB Real Estate Assessment Reduced energy, GHG and • Increase green loans Conduc
Slide 14: External relations
External relations Objectives and targets achieved in 2020 Key targets - 2021 & beyond S Understand and meet the needs of the investment, • Two thought leadership tenant and local communities through regular and conferences and webinars effective engagement initiatives a year • 4/5 Star rating in En
Slide 15: Human capital
Human capital Objectives and targets achieved in 2020 Key targets - 2021 & beyond S Attract and retain talent, cultivating a positive work • Practise inclusive and environment, promoting diversity, equal opportunities, diverse hiring training, health and wellness • Increase health and mental-wellnes
Slide 16: Ethical corporate behaviour
Ethical corporate behaviour Objectives and targets achieved in 2020 Key targets - 2021 & beyond G Adherence to rules/regulations through highest • Zero incidents of non- standards of governance and best practices compliance and corruption • Compulsory ESG training for directors Zero incidents of Boa
Slide 17: The Road Ahead
17 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 18: Race to Net Zero – It's real for MUST
Race to Net Zero – It’s real for MUST Net Zero by 2050 Future-proofing our business • 80% reduction in GHG emissions by 20501: • Increase engagement with investment a. Prioritise energy efficiency - smart building community/stakeholders technologies b. Seek onsite renewable and clean energy • Attrac
Slide 19: Thank You!
To create value for stakeholders through Thank You! continuous sustainability efforts based on the principle “A life is worth living through giving” For enquiries, please contact: Ms Caroline Fong Chief Sustainability Officer, Chief Investor Relations and Capital Markets Officer carol_fong@manulifeu
Slide 20: Appendix
20 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 21: MUST's Signature Series
21 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 22: Buildings of excellence
Buildings of excellence Driving efficiency through innovative partnerships E Exchange • ~60% of tenants helped reduce carbon footprint by walking, Michelson • Collaborated with Tesla and STEM on an intelligent energy storage system that public transit and carpooling predicts the optimal time to char
Slide 23: Green Champions
Green Champions Appointed Green Champions in each building to drive sustainability efforts Figueroa’s Case Study Quote from Peachtree’s Green Champion E • Awarded Green Champion Leader 2020 for driving environmental performance resulting in -30% “ Being the green champion for my building is importan
Slide 24: Green Dot Series
Green Dot Series A thought leadership initiative launched in 2019 to promote a deeper understanding of the U.S economy and the office real estate sector • Conducted conferences/webinars on U.S. China trade war, U.S. tax regulations, U.S. market and office insights S • Engaged 1,700 analysts, media a
Slide 25: Empowering staff and local communities
Empowering staff and local communities Nominated Ambassadors of Change to Going beyond outreach to promote a strong culture of feedback support social enterprises S • Organised team bonding activities and • Besides reaching out to the elderly wellness programmes and vulnerable • Quarterly Breakfast/
Slide 26: Integrity at the core of our business
Integrity at the core of our business Strengthening disclosures in pursuit of good governance G • Remained on SGX Fast Track for the 3rd consecutive year • Ranked 4th out of 45 REITs and Business Trusts in GIFT 2020 • Ranked 1st out of 10 Asia offices in GRESB Public Disclosure 2020 • Maintained 5 S
Slide 27: There is a cost for not complying to ESG
There is a cost for not complying to ESG (1) GTM, “After Pandemic, New York’s Buildings Face Daunting Decarbonization Mandate”, 23 Apr 2020 (2) The Journal of the American Institute of Architects, “New York Passes Property Tax Exemption Legislation for LEED-Certified Projects”, 2012 (3) World GBC, “
Slide 28: What investors/companies are using to measure ESG performance
What investors/companies are using to measure ESG performance Standards Metrics dictating what GRI, SASB, PRI companies must report Frameworks Guidelines for how information TCFD, CDP, CDSB, VRF should be disclosed Ratings Surveys and methodologies to gather GRESB, MSCI ESG, ESG data Sustainalytics,
Slide 29: Glossary
29 Rise of ESG: What it Means for REITs and Investors CONFIDENTIAL
Slide 30: Glossary
Glossary CDP (formerly known as Carbon Disclosure Project) CDP is a non-profit charity that runs a global environmental disclosure system that helps companies and cities manage their environmental impacts. CDSB (Climate Disclosure Standards Board) CDSB, managed by an international consortium of busi
Slide 31: Glossary
Glossary GHG (Greenhouse Gas) emissions GHG are gases that trap heat in the atmosphere, contributing to global warming. The six main greenhouse gases in the atmosphere include Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Sulphur hex
Slide 32: Glossary
Glossary Net Zero Net Zero refers to the net amount of carbon emissions produced by any one entity, and is achieved when the amount emitted is offset by an equal amount absorbed from the atmosphere. Emissions emitted are largely from human activities such as the burning of fossil fuels for energy (e
Slide 33: Glossary
Glossary Sustainable Building Standards The Sustainable Building Standards are a set of internal standards developed by Manulife to enable benchmarking and target setting for Manulife’s properties including MUST’s properties. These standards consist of 13 guidelines covering our material sustainabil