Al-`Aqar Healthcare REIT Annual Report 2019

SUSTAINABILITY PILLARS To withhold the core principles of the REIT for sustainability, the Manager established 3 key sustainability pillars. Listed below are the key sustainability pillars that are vital in ensuring that the actions taken by the Manager on behalf of the REIT support the overall sustainability objectives. People Partner Governance SUSTAINABLE FUND GOVERNANCE Standard Operating Procedures The Manager has in place standard operating procedures to govern the day-to-day processes to implement the best management practices for the REIT. Enterprise-wide Risk Management (“ERM”) On an annual basis, the Manager regularly reviews the risks that are significant to the operations and takes the necessary actions to mitigate the risks as part of the ERM exercise. In quarter 4 of 2019, the Manager conducted a validation exercise on the controls for high- impact risks identified that were relevant to the Financial, Operational and Strategic perspectives. Whistleblowing Management Any stakeholders to the Manager may raise their concerns for any inappropriate matters through the Manager’s existing whistleblowing channel. To date, there were no whistleblowing incidents reported through the available channels to the Manager. Anti-Bribery Management System MS ISO 37001:2016 – Anti-Bribery Management System is an international standard that is widely used to prevent corruption and to build a culture of integrity. This standard aims to help implement, maintain and improve anti-corruption management systems. It has the potential to positively impact business operations, investment, finance and value added to the organisation as well as to help ensure organisational sustainability. A briefing session to the management and employees of the Manager about Anti-Bribery Management System was carried out on 18 October 2019. Other Committees Apart from the BOD and SSC, the Manager has put in place various committees to ensure continuous governance in the overall operations such as:- Committee Objectives Audit Committee Review issues on accounting policies and presentation of external financial reporting and ensure an objective and professional relationship is maintained with the appointed auditors. Executive Committee Oversees critical operational areas of the company and provide the necessary recommendations in relation to the REIT, review management reports and forward summary reports to all Board members. Remuneration & Nomination Committee Ensure that remuneration arrangements support the strategic aims of the business and enable the recruitment, motivation and retention of senior executives while also complying with the requirements of regulation. Risk Management Committee Ensure that risk management is integrated in the Manager’s day-to-day operations and ensure consistency of operational procedures and practices within the organisation to ensure effective risk management. The relevant committees discuss matters of the REIT on a periodic basis in relation to the objectives of the establishment of these committees. Ultimately, updates relevant to the REIT will be reviewed by the Executive Committee and reported to the BOD on a timely basis. 04 SUSTAINABILITY REPORT 74