AL-SALAM REIT ANNUAL REPORT 2019

Sustainability Report 72 ANNUAL REPORT 2019 AL-SALĀM REIT • THE SUSTAINABLE REIT The Manager ensures that sustainability values are created economically, environmentally and socially by emphasising their core principles throughout the REIT and management. Vision To integrate sustainable business practices in the core processes of the business activities. Mission To drive for growth and performance whilst ensuring continuous commitment to balance the concerns of the stakeholders by protecting the environment, health and safety of the employees, customers and the global communities. Sustainability Strategy Ultimately, the journey to have a sustainable REIT is highlighted in a broader perspective to ensure the commitment and focus of the Manager towards a sustainable REIT is balanced with an overall sustainability strategy. SOCIAL Supporting events that promote social engagement with local communities Diversity in gender ratio and employee composition and ensuring equality in compensation package across genders ECONOMIC Strengthening income streams from all our properties to ensure optimum returns to unit holders/stakeholders CORPORATE GOVERNANCE Enhancing Board / management accountability through transparency business decisions and compliance to the Malaysian Code of Corporate Governance 2017 and financial / non-financial disclosures ENVIRONMENT Being socially and environmentally responsible by driving environmentally themed initiatives by lowering energy consumption and minimising waste generated from the properties. Priorities and emphasis on acquisition of “Green Building” in future acquisition that would minimise operational costs and protect the environment EMPLOYEES The Fund Manager and core service providers will foster a diverse, inclusive and engaged work environment that holds sustainability considerations as a core part of recruitment, training and beneits SUPPLY CHAIN Ensure that suppliers meet the social and economic standards set by the Company; whilst ensuring that at least 75% are local companies MANAGEMENT ACCOUNTABILITY The CEO, management team, executives to business unit and service providers will be explicitly accountable for achieving sustainability goals GREEN ENVIRONMENT The Fund will approach investment decision with full consideration on the social and environmental impacts of the investment through its business cycles and serve to not only minimize negative environmental and social impacts, but also serve as solutions to key sustainability challenges EXECUTIVE & EMPLOYMENT COMPENSATION Sustainability performance results will be a core component of compensation packages and incentives plans for all executives and employees across gender BUSINESS MODEL INNOVATION The Fund will innovate its services to enhance tenants' satisfaction in building collaborative business relationships DISCLOSURES Disclosure of sustainability risks, opportunities, performance, goals and strategies helps build constructive relationships with key stakeholders, opens up new business opportunities, and enhance a company’s social license to operate