SECTION 06 pg. 92 AL-SALĀM REIT SUSTAINABILITY STATEMENT RISK MANAGEMENT (CONT’D) The table below summarises the principal ESG risk areas relevant to the REIT. Risk Management Description Risk Identification The REIT employs a structured risk assessment approach integrated into daily operations alongside other risks via our ERM Framework. Risk Assessment Key risks are assessed based on their likelihood of occurrence and potential impact on the business, particularly in the event of adverse climate-related incidents. An Audit and Risk Management Committee has been established to review and update risks on a quarterly basis, with input from each department. Risk Management To manage identified risks, the REIT has implemented the following measures: • Enterprise Risk Management Framework: The RMC continuously monitors, evaluates and manages significant risks. Corrective actions are implemented as necessary, and their effectiveness is regularly reviewed • Internal Controls: The Management implements action plans with specific timeframes for mitigation when necessary • Internal and External Audits: The Audit and Risk Management Committee regularly examines the internal control process and the results of the risk management ESG Pillar Risk Area Climate & Transition Risk Energy Inefficiency Poor Environmental Due Diligence Tenant Health & Wellbeing Community Relations Workforce Diversity & Inclusion Health & Safety Compliance Breach of Human Rights/Child Labour ESG Governance Weakness Inadequate ESG Reporting Conflict of Interest/Recurrent Related Party Transactions (RRPT) Greenwashing Data Privacy & Cybersecurity Corruption & Bribery Risk Fit and Proper Risk Governance Environmental Social RISK PRIORITISATION Identified ESG risks are prioritised based on likelihood and impact. Highpriority risks are escalated to the BARC and monitored on a quarterly basis. The REIT’s approach to climate risk management ensures that climate risk remains a central concern in its operations, and its integration into the ERM and linkage with KPIs further enforces resilience and transparency on climate-related concerns. By developing robust climate risk management, the REIT demonstrates its commitment to enhancing climate resilience and providing its customers and stakeholders with the safest and most resilient properties.
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