Sustainability Statement Integrating Climate Initiatives The REIT provides stakeholders with valuable insights into our environmental impact and resilience strategies by transparently disclosing climate-related risks and opportunities. Our disclosure facilitates informed decision-making and supports responsible resource distribution. Governance Effective governance of climate-related risks and opportunities is a key priority for the Board, reflecting its commitment to long-term resilience and value creation. Through strategic oversight, the Board ensures that climate considerations are embedded in decision-making, while management actively assesses and addresses climate-related challenges to protect and enhance our assets. Strategy The SMC plays a pivotal role in shaping our sustainability agenda, ensuring a proactive approach to climate-related risks and opportunities. Acting as a bridge between strategy and execution, the SMC formulates initiatives, monitors progress and reports key developments to the Board. By providing informed recommendations, the SMC empowers management to navigate the evolving sustainability landscape and drive long-term resilience. Transition Risks • The Board provides strategic oversight of the REIT’s sustainability strategies, policies and performance, including climate-related matters • The Board reviews and approves ESG KPIs, including those related to climate • The SMC advises the Board on sustainability strategies, initiatives and climate-related matters. • The Sustainability Committee monitors and oversees the implementation and performance of sustainability initiatives and climate-related efforts. Board of Directors Management Climate-related roles and responsibilities Transition Risks Potential Impact Opportunities Policy and Legal Future implementation of carbon taxes or other carbon pricing mechanisms • Increased costs due to stricter environmental regulations and standards, potentially leading to legal liabilities. Complying with or exceeding environmental regulations provides access to new markets and allows us to address legal risks proactively. Technology Challenges in adopting new technologies and low-carbon operating processes • Upfront costs for new technology, such as solar panels and smart building solutions, aimed at enhancing energy efficiency. • Costs associated with adapting operational processes to meet new standards. By investing in advanced technologies and green initiatives, such as solar panels and smart building solutions to reduce carbon emissions, we strengthen our position as a leader in sustainable property management. 54 AL-SALĀM REIT ANNUAL REPORT 2024
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