Damansara REIT Managers Sdn Berhad (“the Manager” or “DRMSB”) is pleased to present the Al-‘Aqar Healthcare REIT (“Al- ‘Aqar”, “the REIT” or “the Fund”) sustainability statement for the year 2023. Covering disclosures for the reporting period of 1 January 2023 to 31 December 2023 (“FY2023”), this statement outlines how environmental, social and governance (“ESG”) considerations influence our operations, commitments and business strategies as a healthcare REIT. In a business landscape where investors increasingly make investment decisions based on strong ESG criteria, a holistic strategy is essential to better serve stakeholder needs and navigate the intricate spectrum of ESG risks and possibilities. Moreover, as REIT stakeholders place greater influence on corporate ESG performance, Al-‘Aqar REIT remains steadfast in our dedication to creating long-term sustainable value for stakeholders. OVERVIEW MILESTONES SHAPING OUR ESG PROGRESS In line with our goal of incorporating sustainability considerations into our operations, we began implementing the recommendations set out by the Task Force on Climate-related Financial Disclosures (“TCFD”) this year. Adopting TCFD recommendations provided us with a methodical reporting framework that served to enhance our understanding of climate-related risks and opportunities. We also extended our greenhouse gas (“GHG”) disclosures to include Scope 3 emissions, providing a more comprehensive oversight of our emissions data. Furthermore, we conducted a materiality reassessment and streamlined our materiality matrix with Bursa Malaysia’s 11 common sustainability matters, ensuring coherent sustainability reporting and aligning our material concerns with peer REITs and current trends. Supplier screening and evaluation on environmental impact was also conducted this year, allowing us to ensure adherence to environmentally responsible practices throughout our supply chain. In the current year, we established a Board Sustainability Committee (“BSC”) to support the Board of Directors in overseeing the Group’s sustainability objectives, policies, and practices, ensuring alignment with legal requirements. Additionally, we established a Sustainability Management Committee (“SMC”) which is specifically committed to overseeing sustainability targets, policies, practices, and management systems. The SMC delivers comprehensive quarterly reports to the BSC on significant sustainability matters, encompassing reviews of pertinent policies and frameworks. Al-‘Aqar REIT proactively embraces environmental stewardship. A preliminary assessment towards obtaining the Green Building Index (“GBI”) certification has been carried out, centred around five hospitals: KPJ Damansara Specialist Hospital, KPJ Puteri Specialist Hospital, KPJ Ipoh Specialist Hospital, KPJ Perdana Specialist Hospital and KPJ Kajang Specialist Hospital. The introduction of a green lease by Al-‘Aqar REIT marks an innovative step, covering criteria such as Energy Usage, Chemical Usage, Renewable Energy, Waste Management, Data Sharing, Water Conservation, Cost Provision, Sustainable Procurement and Sustainable Transportation. This integration of sustainability principles aligns the REIT’s operations with eco-friendly practices while setting a standard for responsible and sustainable real estate management, emphasising the Fund’s deep commitment to a future grounded in sustainability. 41 SUSTAINABILLITY STATEMENTS 1 2 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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