Cromwell European REIT - Annual Report 2021

Material Risks Details Key Mitigating Actions Environment (aligned with “E” from CEREIT’s ESG framework) • Sustainability and climate change risks • Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and fresh-water depletion • Transitional risks including increased and more stringent regulations and increased expectations from stakeholders • Established a Sustainability Committee at Board level to guide CEREIT in determining the material ESG factors and ensure that they are properly monitored and managed • Identifying, assessing and managing material sustainability risks as part of the due diligence of the investment process with specific action plans to mitigate and potentially eliminate environmental risks that are identified • Aiming to minimise environmental impact by deploying renewable and low-carbon intensive energy where possible and upgrading energy intensive equipment through ongoing asset enhancement initiatives o The Manager has completed a climate risk study of selected buildings in CEREIT’s portfolio and has reviewed and enhanced insurance coverage for identified physical climate-related risks, ensuring that the portfolio is insured against climate events Social / Stakeholders - (aligned with “S” from CEREIT’s ESG framework) External stakeholder risks • Tenant-customer relation • Investor relations • Media relations • Government relations • Social and community relations • Insufficient stakeholder engagement resulting in a lack of understanding of evolving market trends and needs • Regularly communicating with regulators and governing bodies (as appropriate, depending on nature of engagement) o Remaining guided by the Code and strive to maintain the highest standards of corporate governance so as to ensure that CEREIT continues to instil stakeholder confidence • Providing timely and relevant updates to the market as necessary, especially important in the context of the global COVID-19 outbreak and the ongoing Russian invasion of Ukraine • Maintaining proactive investor relations and media outreach plan • Participating actively in relevant industry associations • Building on existing community partnerships • Conducting yearly tenant-customer engagement survey • Increasing cleaning rosters and enhanced common area sanitising services due to COVID-19 across the offices of the Manager and across CEREIT’s portfolio • Internal stakeholder risks • Inability to manage human capital needs and human resources-related costs appropriately in relation to the business environment • High attrition rates and shortage of talent • Fostering conducive work environment and ensuring adequate and fair compensation and benefits • Strengthening succession planning • Focusing on nurturing and developing employees by investing in continuous learning and development • Creating and embracing a diverse and inclusive workplace by acting in a principled, respectful and responsible manner • Ensuring that employees’ needs are provided for through frequent face-to-face interactions and yearly engagement surveys • Prioritising employee health and safety, particularly with the increased duration spent indoors at work and striving to offer innovative environments that encourage movement and healthy living • Keeping a close eye on human resourcing developments in the market and the industry in which CEREIT operates CROMWELL EUROPEAN REIT 187 ANNUAL REPORT 2021