Sustainability and Climate Report Strategy Identification of Climate-related Risk and Opportunities Climate-related risks relevant for UHREIT’s portfolio can be classified under physical and transition risks: Physical Risks Physical risks can be classified into chronic risk and acute risk. Acute physical risks refer to event-driven risks, including increased severity of extreme weather events such as floods, wildfires, or hurricanes. Chronic physical risks refer to longer-term shifts in climate patterns, such as persistent higher temperatures that may cause sea level rise or chronic heat waves. Transition Risks The need for transition to lower carbon or net zero carbon economy can pose a range of potential transition risks to UHREIT’s portfolio. Transition risks may arise from significant changes in policy, regulation and technology to address mitigation and adaptation requirements triggered by climate change. The Manager regularly monitors and assesses its exposure to climate-related risks and opportunities. Key climaterelated risk and opportunities for UHREIT were identified through a business impact analysis conducted in FY2023 and continue to be relevant today (refer to Figure 7 below). Green Financing Participation in Renewable Energy Programs Adoption of Low-carbon Technologies Higher Temperatures Rising Sea Levels Increase in Storms and Extreme Weather Events Flooding Regulatory Market Reputational Technology Risks Opportunities Transition Risks Physical risk Figure 7: UHREIT’s Identified Climate-Related Risks and Opportunities 79 ANNUAL REPORT 2025
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