AL-SALAM REIT ANNUAL REPORT 2020

75 ANNUAL REPORT 2020 THE SUSTAINABLE REIT The Manager ensures that sustainability values are created economically, environmentally and socially by emphasising their core principles throughout the REIT and management. Vision To integrate sustainable business practices in the core processes of the business activities. Mission To drive for growth and performance whilst ensuring continuous commitment to balance the concerns of the stakeholders by protecting the environment, health and safety of the employees, customers and the global communities. Sustainability Strategy Ultimately, the journey to have a sustainable REIT is highlighted in a broader perspective to ensure the commitment and focus of the Manager towards a sustainable REIT is balanced with an overall sustainability strategy. CORPORATE GOVERNANCE ENVIRONMENT ECONOMIC SOCIAL Enhancing Board / management accountability through transparency business decisions and compliance to The Malaysian Code of Corporate Governance 2017 (MCCG 2017) and financial / non- financial disclosures Putting acquisition of “green- buildings” in future acquisitions that would minimise operational costs and protect the environment. Strengthening income streams from all our properties to ensure optimum returns to unit holders/stakeholders Diversity in gender ratio and ensuring equality in compensation package across genders MANAGEMENT ACCOUNTABILITY GREEN ENVIRONMENT SUPPLY CHAIN EMPLOYEES The CEO, management team, executives of business unit and service providers will be explicitly accountable for achieving sustainability goals The Fund will approach investment decision with full consideration on the social and environmental impacts of the investment through its business cycles and serve to not only minimize negative environmental and social impacts, but also serve as solutions to key sustainability challenges. Ensure that suppliers meet the social and economic standards set by the Company; whilst ensuring that at least 75% are local companies The REIT Manager and core service providers will foster a diverse, inclusive and engaged work environment that holds sustainability considerations as a core part of recruitment, training and benefits DISCLOSURES BUSINESS MODEL INNOVATION EXECUTIVE & EMPLOYMENT COMPENSATION Disclosure of sustainability risks, opportunities, performance, goals and strategies helps build constructive relationships with key stakeholders, opens up new business opportunities, and enhance a company’s social license to operate. The Fund will innovate its services to enhance tenants’ satisfaction and in building collaborative business relationships Sustainability performance results will be a core component of compensation packages and incentives plans for all executives and employees across gender. Sustainability Strategy SUSTAINABILITY STATEMENT