Al-`Aqar Healthcare REIT Annual Report 2019

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 (“BOD”) and the Sustainability Steering Committee (“SSC”) take ownership of their responsibilities to incorporate sustainable roles and establish the required tone at the top. Responsibilities of the BOD:- • 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. • Provide recommendations and improvements to the BOD 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 BOD and SSC discuss highlights of the Fund’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 - Sta Safety & Well-being - Employee Benefits - Performance Appraisal 01 Property Managers - Marketing & Financial Performance - Tenants & Occupancy - Facility Management - Administration & Risk Management - Contract Agreements - Evaluation & Performance Reviews 02 Regulatory Agencies & Statutory Bodies - Labour Practices - Environmental Management & Compliance - Regular inspections 03 Investors - Corporate Financial Performance - Corporate Governance - Safety & Security - Investor Relationship Management - Annual General Meeting - Corporate Website - Feedback Management 04 Tenants (Hospitals) - Safety & Security - Business Activities & Ethics - Contract Agreements - Tenant Surveys - Joint Community Programmes 05 Suppliers - Transparent Procurement Process - Evaluation & Performance Reviews 06 Non- Governmental Organisations (“NGOs”) - Social Contribution - Environmental Impact - Community Events 07 STAKEHOLDERS AREA OF CONCERN METHODS OF ENGAGEMENT 04 SUSTAINABILITY REPORT 72