Cromwell European REIT - Annual Report 2021

SUSTAINABILITY ASPIRING TO HIGH STANDARDS OF GOVERNANCE AND SUSTAINABILITY The Manager is committed to acting responsibly and proactively to continuously improve CEREIT’s sustainability performance. The Manager recognises that resilient, ethical and socially-responsible business practices underpin CEREIT’s prosperity and success. Putting market-leading ESG practices at the core of its long- term business allows CEREIT to continue to fulfil its main purpose of providing Unitholders with regular and stable distributions and delivering sustainable growth in DPU and NAV per Unit in the long term. The Manager operates as part of Cromwell, a values- driven organisation. Cromwell aspires to act in a principled, respectful and responsible manner, regardless of circumstance, obstacle or location. Cromwell’s global sustainability strategy, management framework and supporting policies are the direct result of Cromwell's values in action. The Manager’s sustainability framework is aligned with Cromwell’s approach to sustainability, ensuring that CEREIT remains focused on improving performance through a structured, responsible and balanced pathway to sustained success. The framework continues to evolve, responding to emerging legislation and new challenges. Under the current sustainability framework, all material risks and opportunities are grouped under three main areas: Environment, Social (Stakeholders) and Governance. Each year, the Manager conducts a materiality review to identify and prioritise the most relevant ESG issues against the evolving landscape. The review considers the impact that each issue has on CEREIT and its stakeholders. The Board provides strategic direction and is involved in the endorsement of the material topics that are relevant to CEREIT’s business and its stakeholders. To ensure greater accountability, the Board has established a Sustainability Committee chaired initially by a non-independent non-executive director and comprising all members of the Board. The Sustainability Committee provides strategic oversight and reviews CEREIT’s sustainability performance on a quarterly basis. The Manager of CEREIT has also established a separate management-level sustainability committee co-chaired by Head of Property and the COO (both KMP) and comprising dedicated officers of the Manager. The management sustainability committee has been delegated specific responsibilities by the Board to guide the efforts of the Manager in identifying, setting and delivering the objectives and targets associated with material ESG topics. The Manager’s commitment to understand, manage, measure and communicate the ESG impacts of its and CEREITs activities and to set out strategies to mitigate these impacts is further documented in a standalone sustainability policy available on CEREIT’s website. CEREIT’s fourth annual Sustainability Report will be a direct response to the material ESG topics identified throughout the materiality review process. The Manager is preparing the report in compliance with the sustainability reporting requirements set out in SGX-ST Listing Rules 711A and 711B and in accordance to GRI Standards: Core option. In addition, it will also take into consideration key aspects of the requirements set out in MAS’ environmental risk management guidelines for asset managers published on 8 December 2020 and the draft SFDR framework set to come in force in Europe in 2022 / 2023. The FY 2021 Sustainability Report will be published on SGXNet and simultaneously made available exclusively in electronic form in late May 2021 on CEREIT’s corporate website at www.cromwelleuropeanreit.com.sg . ASPIRATIONAL TARGET SET: NET ZERO OPERATIONAL CARBON EMISSIONS BY 2040 2017: Sustainability framework established with yearly reporting and initial set of ESG targets 2020: New augmented 38 short, mid and long-term ESG targets 2021: Multiple governance awards, ESG ratings upgrades 2022: Established Board-level Sustainability Committee FOCUS ON STRENGTHS PIVOT TO LOGISTICS 190