AL-SALAM REIT ANNUAL REPORT 2019

Sustainability Report 73 ANNUAL REPORT 2019 AL-SALĀM REIT • STAKEHOLDERS AREAS OF CONCERN METHODS OF ENGAGEMENT GOVERNANCE AND ACCOUNTABILITY As part of the Manager’s initiatives to have more sustainable operations for the properties of the REIT, the Manager ensures that the Board of Directors (“Board”) and the Sustainability Steering Committee (“SSC”) take ownership of their responsibilities to incorporate sustainable roles and establish a sustainable tone at the top. Responsibilities of The Board • Endorses and oversees the implementation of the REIT’s sustainable strategy to ensure key targets are met. • Takes responsibility and accountability for the REIT’s communication on sustainability issues to stakeholders. • Establishes a culture of integrity by placing emphasis on communication about sustainability across the REIT. • Endorses material sustainability matters and the governance structure. Responsibilities of The SSC • Develops the overarching sustainability strategy for the REIT based on material sustainability matters identified. • Provides recommendations and improvements to the Board on the material sustainability matters related to the REIT. • Formulates targets and initiatives to achieve sustainability goals pledged by the REIT. • Assesses the effectiveness of the sustainable initiatives put in place, and monitors and maintains records on these initiatives. The Board and SSC discuss highlights of the REIT’s sustainability initiatives on a periodic basis to ensure that the goals are met through effective implementation and monitoring. ENGAGING STAKEHOLDERS Engaging with the stakeholders is part of the Manager’s key agendas for having a sustainability-focused REIT to understand the concerns of the primary stakeholders and be receptive towards the input received. The table below shows the key stakeholders and the methods of engagement by the Manager on behalf of the REIT. Employees • Career Development • Staff Well-being • Employee Benefit • Performance Appraisal • Training Programme • Employee Satisfaction Survey • Medical and Group Takaful Coverage • Annual General Meeting • Corporate Website • Investor Feedback Management Investors • Corporate Financial Performance • Corporate Governance • Safety and Security • Investor Relationship Management • Annual General Meeting • Corporate Website • Investor Feedback Management Tenants • Safety and Security • Business Activity and Ethics • Contract Agreement • Tenant Survey • Joint Community Programme Property/Maintenance Managers • Marketing and Financial Performance • Tenants and Occupancy • Facility Management • Administration and Risk Management • Contract Agreement • Evaluation and Performance Review • Regular Building Audits Regulatory Agencies and Statutory Bodies • Labour Practices • Environmental Management and Compliance • Regular Meeting • Regular Inspection Suppliers • Transparent Procurement Process • Evaluation and Performance Review Non-Governmental Organisations (“NGOs”) • Social Contribution • Environmental Impact • Community Events