Sustainability and Climate Report Strategy to Manage Climate-related Risks and Opportunities While physical risks were assessed to be low and financially immaterial for the portfolio, UHREIT maintains adequate insurance coverage for property damages from climate-related events. This coverage is reviewed annually to ensure adequate protection for all assets. Additionally, sustainability considerations are included in our investment due diligence process. While climate scenario analysis has not yet been conducted for transition risks, these risks are not expected to be material for the portfolio, given that UHREIT’s properties operate primarily under triple-net lease arrangements, where tenants retain full operational control over day-to-day management of the properties. UHREIT continues to monitor global developments in climate-related regulations and standards, and will update its risk assessments as necessary in response to evolving regulatory requirements. UHREIT remains committed to reducing operational GHG emissions as far as practicable. Our key measures include the adoption of energy‑efficient technologies, such as LED lighting and renewable energy solutions, and ongoing tenant engagement to improve overall energy performance to reduce our contribution to global climate change. Risk Management The Board and management are in charge and responsible for identifying and putting in place mitigating measures for the material risks affecting UHREIT and integrating these within the ERM framework. UHREIT applies a structured risk management approach to identify and map climate-related risks, assess the potential severity of their impacts on business activities, and establish appropriate mitigation measures to address such risks. These climate-related risks have been incorporated into UHREIT’s ERM Framework Manual. Please refer to the Risk Management material topic on page 98 to 99 to learn more about UHREIT’s risk management processes. For more information on ERM processes, please refer to page 113 of the Corporate Governance report. Metrics and Targets We have disclosed Scope 2 emissions inventories on page 76 and the performance against our climate-related targets on page 68. No Scope 1 emissions were identified for FY2025 and UHREIT is working towards measuring and reporting Scope 3 indirect emissions in the future. Additionally, climate-related metrics are included in our employee performance scorecards and are considered into their remuneration. These metrics are linked to the achievement of UHREIT’s climate-related targets, thereby encouraging our employees to support the achievement of these goals. 82 UNITED HAMPSHIRE US REIT
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