CORPORATE GOVERNANCE SECTION 4 113 Al-`Aqar Healthcare REIT | Annual Report 2024 Oversight of Asset Management Strategies • Evaluate value-add opportunities and capex projects with a risk-return lens. • Review strategies for underperforming assets, including repositioning or divestment. 6 Liquidity & Funding Risk Management • Monitor the REIT’s debt profile, loan covenants, and refinancing schedules. • Ensure prudent leverage and adequate liquidity buffers are maintained. 7 Transparent Governance & Reporting • Document risk-related discussions and decisions. • Provide regular risk reports to the Board and Audit & Risk Committee, especially during volatile market conditions. 8 ESG Strategy & Integration • Guide the development and execution of the company’s ESG vision, goals, and roadmap. • Ensure ESG considerations are integrated into corporate strategy, investment decisions, and operations. • Promote alignment with national and global frameworks (e.g., UN SDGs, TCFD, ISSB, GRI). 1 Governance and Oversight • Provide governance and accountability over ESG matters at board level. • Review the adequacy of ESG policies, structures, and performance indicators. • Ensure ESG roles and responsibilities are welldefined across the organisation. 2 Performance Monitoring & Reporting • Review and monitor ESG performance, metrics, and key indicators (KPIs, KRIs). • Oversee the preparation and assurance of the Sustainability Report. • Ensure accurate, transparent, and timely disclosure to stakeholders and regulators (e.g., Bursa Malaysia’s sustainability reporting requirements). 3 Regulatory & Stakeholder Compliance • Oversee compliance with ESG-related laws, listing requirements, and voluntary codes. • Monitor emerging ESG trends, risks, and stakeholder expectations. • Guide the company’s climate risk, diversity, and human rights commitments. 4 Climate Risk & Transition Oversight • Review the organisation’s climate-related risk exposure and transition strategies (aligned with TCFD or ISSB). • Support the development of net-zero or carbon reduction goals. 5 Coordination with Other Committees • Work alongside Audit & Risk Committee, and Investment Committee to ensure ESG risks and opportunities are integrated across all aspects of governance and operations. • Ensure cross-functional collaboration on ESG initiatives. 6 Culture, Capacity & Continuous Improvement • Promote a sustainability-minded culture throughout the organisation. • Support ESG training, capacity-building, and board education. • Periodically review and enhance the ESG strategy and governance approach. 7 The Board Sustainability Committee The BSC is responsible for providing strategic direction and oversight on ESG-related matters. It ensures that the organisation integrates environmental, social, and governance principles into its business strategy, operations, risk management, and stakeholder engagement. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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