Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 68 Sustainability Statement GOVERNANCE & 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 Management of the REIT Manager 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 Manager • Develops the overarching sustainability strategy for the REIT based on material sustainability matters identified. • Provides 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. GOVERNANCE STRUCTURE BOARD OF DIRECTORS CEO GENERAL MANAGER NOMINATION & REMUNERATION COMMITTEE The Board and the Manager discuss highlights of the Fund’s sustainability initiatives on a periodic basis to ensure that the goals are met through effective implementation and monitoring. TRUSTEE SHARIAH ADVISORY COMMITTEE COMPLIANCE OFFICER INTERNAL AUDIT PROPERTY MANAGEMENT MEETING • Tenancy Report • Marketing Report • Collection Report • Status of Upgrading Works • Complaints • Sustainability Initiatives - Energy Saving Initiatives - Waste Management - Manpower Diversity - Employee Training & Development - Succession Planning - Tenants Satisfaction Survey Quarterly MANAGEMENT COMMITTEE • Business Development/Capital Management • Operations/Asset Management • Corporate Service - Legal & Secretarial, HR, IT • Compliance & Risk Weekly BOARD INVESTMENT COMMITTEE BOARD AUDIT & RISK COMMITTEE ERMC • Strategic Risks • Operational Risks • Financial Risks • Compliance Risks • BCM & Cybersecurity • Integrity Quarterly