Sustainability Report

EMBEDDING SUSTAINABILITY, CASCADING AMBITION

Board Statement

Environmental risks continue to dominate as top global risks facing the world as reported on The Global Risks Report 2024 by the World Economic Forum. As BHG Retail REIT (the "REIT") continues to take into account the global challenges, risk, and opportunities, we maintain our Economic, Social and Governance ("ESG") stewardship. Our key objectives, echoing the global intention in alignment with the objectives outlined in the United Nations' Paris Agreement, is to reduce carbon footprint to limit global warming and focusing on keeping our business accountable to our sustainability commitments. In order to attain this goal, we are dedicated to incorporate sustainable business practices and conducting our business with a focus on ESG considerations in our everyday decisionmaking and operations.

Over the past six years, our sustainability journey has been enriching and we are proud to present our seventh sustainability report, as we continue to define material matters impacting our business. This year, we acknowledged and took accountability of our non-renewable primary energy source, therefore we hope to reduce our Greenhouse gases ("GHG") emission generated and enhance the efficiency in energy consumption across our properties. In reporting such matters, we referred to the Global Reporting Initiative (GRI) Standards, where we have continued to disclose our energy consumption and intensity with regards to our dynamic operational activities and furthermore on the GHG emission generated on both Scope 1 (direct) and Scope 2 (indirect), as well as the emission intensity across our properties. We are also excited to share our firstyear disclosure on waste performance data for two of our properties. In the future, we hope to establish a waste collection database for the remaining two properties.

To ensure continuous improvement in both business practices and reporting initiatives, the REIT delegates the board to thoroughly review sustainability issues impacting our business as well as the challenges and opportunities. This includes the monitoring of material ESG issues and concerns by our stakeholders. Since 2022, as overseen by the Board, the REIT has integrated considerations to human rights as part of our ESG conscious practices, including embedding such matters into our sustainability reporting. Besides human rights, we are also eager to maneuver our ESG reporting endeavors to the new International Financial Reporting Standards (IFRS) S2 adoption issued by the International Sustainability Standards Board ("ISSB"). We continue to report our impacts of climate change in accordance with the Task Force on Climate-Related Financial Disclosures ("TCFD") while preparing and taking necessary steps for the IFRS adoption in the future

To conclude this statement and our FY 2023 achievements, we are pleased to mention that we received two platinum awards at The Asia Pacific Best of The Breeds REITS Awards, specifically in the ' Best Retail REIT' and 'Best Investor Relations' categories. As such awards featured some of the market's most influential market makers and leaders, we are honored with the appreciation of our transparent communication with stakeholders and investment community. These awards serve as a testament and acknowledgement of our endeavors in promoting sustainable business practices. Looking forward, we strive to remain committed with conscious practices as well as ensuring sustainable growth of our business.

On behalf of the Board and the REIT Manager team, we would like to extend our sincere gratitude to all our stakeholders for their continuous support on our sustainability journey.

Sustainability Governance

The Board oversees, reviews, monitors, as well as manage and mitigate sustainability risks or opportunities. In reviewing and providing disclosure, transparency is the core practice that had to be applied at every level. The Board is also in charge and responsible with the Company decision on embedding its ESG practices. Therefore, material topics are regularly communicated to the Board during Board meetings and Board Committee meetings. The Board of Directors serving in FY 2023 had completed the necessary training as provided by the Singapore Institute of Directors and Institute of Singapore Chartered Accountants in 2022. The training programme covers the board's role and director's responsibilities in sustainability governance and seeks to provide a foundation for board directors to drive sustainability compliance and integrates ESG factors into their business strategy. Arrangements have also been made for Mr George Quek Meng Tong who was appointed as Director on 11 February 2024 to undergo the mandatory sustainability training in FY 2024.

The Board delegates authority to the Sustainability Officer and the individual committees to supervise the sustainability implementation in their own working unit. This practice is supplemented by an internal audit function which conducts interval review of sustainability implementation and reporting process according to the overall Internal Audit Plan of the REIT.

Relating to the structure of BHG REIT's internal controls, the REIT Manager is supported by board committees, consisting of Audit and Risk Committee (the "ARC") and the Nominating and Remuneration Committee (the "NRC"). The REIT also has an Enterprise Risk Management Framework as well as a Business Continuity Plan. More comprehensive information on the REIT's governance structure and control can be found on pages 25 to 49 of our Annual Report.

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