Hazelview 2023 Sustainability Report

SUSTAINABILITY AT HAZELVIEW

2023 Sustainability Report

ABOUT THIS REPORT

Our 2023 Sustainability Report (‘Sustainability Report’ or ‘this report’) communicates our significant environmental, social, and governance (ESG) topics and summarizes our activities, performance and accomplishments for the year ending December 31, 2023, unless otherwise stated. We also highlight and share details on many of our corporate programs that we have in place to advance ESG performance in our company and in our private and public real estate investments. This report was published in July 2024 and our 2022 Sustainability Report was published in August 2023. The terms ‘sustainability’ and ‘environmental, social and governance (ESG)’ are used interchangeably.

The content of this report references recognized disclosure standards: Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB). Please see standards references in the Appendix at the end of this report.

For more information on sustainability at Hazelview, please contact us at sustainability@hazelview.com.

WELCOME & 2023 HIGHLIGHTS

LETTER FROM OUR CEO

I am pleased to present Hazelview’s Sustainability Report and provide an update on our corporate and real estate sustainability accomplishments and performance for 2023.

At Hazelview, we create value for people and places. Over the past few years, we’ve taken a focused approach to integrating sustainability across both private and public real estate investments ensuring sustainability considerations are embedded in everything we do.

In 2023, we extended our sustainability ambitions by setting a company-wide goal to develop a future ready real estate business that is sustainable, resilient and equitable. To achieve this goal, we’ve embedded sustainability priorities across all areas of our vertically integrated platform to ensure we advance our mandate and approach to reflect the changing economic, environmental and social landscapes.

Real estate presents significant opportunities and challenges for companies, and we continue to see rapid and unprecedented changes. In 2023, economic conditions lead to increasing affordability challenges across the country. Paired with unprecedented temperature changes have forced business to continuously evaluate strategies and evolve.

At Hazelview, we recognize the unique opportunity we have as a real estate investor, owner, and developer and the impact we can have on housing solutions, the wellbeing of our employees, residents, and communities we operate in. This report summarizes our efforts to operate with the highest standards and leverage our influence in public markets to advance environmental, social,

and governance integration in our real estate investments.

Culture Underpins Success

Our inclusive and leading culture is key to how we operate and essential to our success. In 2023, we received Canada’s Most Admired Corporate Culture Award which recognizes best-in-class Canadian organizations for having cultures that enhance performance and sustain a competitive advantage. We continued to advance Belonging at Hazelview (our diversity, equity, and inclusion commitments), to support a strong culture of thought diversity and inclusion. We also enhanced several health and wellbeing programs for our team.

Fostering Social Impact

2023 saw us update our Social Impact Strategy to re-confirm our priorities and plan for additional programming in 2024 and beyond which will include the launch of a charitable foundation—the Hazelview Cares Foundation. The work is centred around the following key pillars: Housing Support, Education & Employment, and Health & Wellbeing. In 2023, we directly and positively impacted over 10,000 people.

Reducing Environmental Footprint

In our private real estate portfolio, we continued to focus on retrofits and upgrades, energy and water

audits, and closely tracking performance within our Canadian multifamily assets. As a result, in 2023, we are pleased to report a 6% reduction in energy use and 4% reduction in our carbon footprint. We also achieved a 100% green building certification rate for our Canadian multifamily portfolio.

Using Our Influence

In our public real estate portfolio, we continued to advance our risk analysis model to evaluate key ESG metrics, enabling us to understand companies’ ESG performance and competencies before we invest, monitor how they improve over time, and engage with management to support improvements.

These accomplishments would not have been possible without the dedication and hard work of our employees. I thank the Hazelview team for their contributions and ongoing support.

I encourage you to read the remainder of this report to learn more and welcome your feedback and questions.

Ugo Bizzarri, Chief Executive Officer

We’ve set a company-wide goal to develop a future-ready real estate business that is sustainable, resilient and equitable.

2023 SUSTAINABILITY HIGHLIGHTS

We made progress on sustainability management and performance in 2023.

PRIVATE REAL ESTATE

Achieved 100% green building certification rate in our Canadian multifamily portfolio

HAZELVIEW INVESTMENTS

70% total portfolio audit coverage

Launched enhanced Employee Health and Wellness Program 41% of our properties conducted waste audits 48% of our properties conducted energy and water audits

10,000+

people have been positively impacted directly through the Hazelview Cares program

Updated our Social Impact Strategy

Conducted Principles for Responsible Investment (PRI) readiness assessment in advance of our first PRI submission in 2024

10,000+ hours of employee training including sustainability, DEI, and mental health topics 86% of our employees agree that Hazelview is a great place to work 15 scholarships & bursaries awarded to students

Completed the Global Diversity, Equity & Inclusion Benchmarks (GDEIB) to measure Hazelview’s DEI initiatives progress and help develop future strategies

Participated in the GRESB Real Estate Assessment for the second consecutive year

92% of residents that attended our social impact programs responded that the initiatives had a positive impact on them 78% of prospects and residents were satisfied or very satisfied with their experience at a Hazelview property—a 2.5% point increase from 2022 and the highest score we’ve achieved

reduction in energy intensity from 2022

reduction in GHG emission intensity from 2022

100% of Hazelview employees completed DEI training

Received the Impact Award from the Federation of Rental-housing Providers of Ontario (FRPO) for outstanding contributions to BGC Ottawa (formerly Boys & Girls Club of Ottawa)

PUBLIC REAL ESTATE

Added new ESG metrics into our proprietary risk model to evaluate companies’ historical and future ESG performance

Engaged in meaningful dialogue with investee companies in Japan to improve corporate governance practices

ABOUT HAZELVIEW

Creating Value for People & Places

Hazelview is an active investor, owner, and manager of global real estate and related assets focused on delivering sustainable and growing returns to our investors. We invest both privately and publicly to access the best real estate around the world and actively manage our investments with our fully integrated investment management platform.

Core Values

Our vision is to create value for people and places. In this, we are guided by our core values:

22,000+ multifamily units under professional property management 800,000 SF of commercial space under professional property management

657 operating property specialists

14 regional offices nationally

183 multifamily properties in 25 cities across 6 provinces

HAZELVIEW’S GLOBAL PRESENCE

We are proud of our diverse, international, talented workforce.

HONG KONG

HAMBURG

GLOBAL INITIATIVES

OUR SUSTAINABILITY STRATEGY

We are committed to building a future-ready real estate business in partnership with our stakeholders.

In 2020, we launched our first sustainability strategy for our Canadian multifamily portfolio. In 2023, we evolved and expanded on this work to set a companywide sustainability goal and strategic objectives to build a future-ready business—one that is sustainable, resilient, and equitable. Our new sustainability strategy encompasses our corporate operations and public and private real estate investments.

The process to set our new sustainability direction was led by our Sustainability Team, informed through a stakeholder engagement process that included our employees, residents, investors, and company leadership. The final strategy was reviewed and approved by Hazelview’s Sustainability Committee and Executive Team.

Our 2023 strategies to achieve our over-arching sustainability goal focuses on driving social and environmental sustainability for our various stakeholders and delivering long-term value by managing sustainability risks and identifying sustainable opportunities.

SUSTAINABILITY GOAL:

Develop a future-ready real estate business that is sustainable, resilient and equitable.

2024 KEY PRIORITIES

Deliver meaningful social impact programs for employees, residents, and community members to integrate strong DEI practices within our business

Adopt best practices for Responsible Investment and ESG risk management into our business, investment, and real estate decisions

Report transparently as a company and for each investment mandate

Incorporate ESG strategies into departmental plans to achieve corporate and client sustainability goals

AWARDS, ASSOCIATIONS & MEMBERSHIPS

Awards:

+ Certified as a Great Place to Work™, an accreditation that demonstrates to the market that we are an employer of choice and are committed to improving our workplace through reporting and analysis

+ Recipient of Canada’s Most Admired Corporate Culture Award which recognizes best-in-class Canadian organizations for having cultures that enhance performance and sustain a competitive advantage

+ Awarded the Federation of Rental-housing Providers of Ontario (FRPO) Outstanding Company Culture Award which recognizes a FRPO member company that exhibits an exceptional dedication to fostering a positive company culture

+ Awarded the Federation of Rental-housing Providers of Ontario (FRPO) Impact Award which celebrates a rental housing provider in Ontario that has accomplished remarkable social outcomes through a specific initiative or project

Associations and Memberships:

+ Canadian Centre for Diversity and Inclusion (CCDI)

+ Canadian Chamber of Commerce’s Housing and Development Strategy Council

+ Canadian Federation of Apartment Associations (CFAA)

+ Canadian Institute of Planners (CIP)

+ CD Howe Institute’s project Facilitating Institutional Investment in Rental Housing Stock

+ Engineers and Geoscientists British Columbia (EGBC)

+ Federation of Rental-housing Providers of Ontario (FRPO)

+ Green Will Initiative (City of Toronto)

+ Investment Property Owners Association of Nova Scotia (IPOANS)

+ Ontario Professional Planners Institute (OPPI)

+ Project Management Institute (PMI)

+ Professional Engineers Ontario (PEO)

+ Real Property Association of Canada (REALPAC)

+ Urban Land Institute

SUSTAINABILITY GOVERNANCE

Our sustainability progress is rooted in strong governance.

SUSTAINABILITY GOVERNANCE

Governance Overview

Hazelview’s sustainability strategy is embedded within our corporate operations, investments and funds, and aligns with our governance framework. The Managing Partner, Head of Sustainability and Brand is responsible for managing and implementing the sustainability strategy. Their mandate includes overseeing Hazelview’s sustainability program and disclosure, including environmental & social performance, measurement, and reporting and leading quarterly meetings with the Sustainability Steering Committee. The Managing Partner, Chief Human Resources & Strategy Officer, has oversight and responsibility for sustainability which includes climate and DEI at Hazelview.

Linking Compensation to Sustainability Objectives

All individuals with sustainability-related responsibilities have performance targets and objectives which are linked to their compensation. Annual bonuses are based on individual performance which includes performance related to the sustainability targets for which they are responsible.

Sustainability Oversight and Accountability

Sustainability Steering Committee

Description:

Cross-functional Senior and Executive Team members that oversee and advise on sustainability implementation across the company

Responsibilities:

+ Meets quarterly to discuss sustainability activities, performance and plans, and reports key activities and outcomes to the CEO and Executive Team

+ Leads implementation of sustainability priorities within each line of business

+ Reviews the sustainability policy and approves updates

+ Approves the Sustainability Report

Diversity, Equity & Inclusion (DEI) Committee

Description:

Diverse group of Hazelview team members with the mission to guide the implementation of our 3-year corporate DEI strategy

Responsibilities:

+ Meets quarterly to discuss strategies for fostering diversity, equity, and inclusion within the organization

+ Leads the implementation of DEI priorities across departments

+ Reviews the DEI Policy and approves updates

+ Reports key activities and outcomes to the Executive Champion

SUSTAINABILITY POLICY

BUSINESS LINE LEADS SUSTAINABILITY GOVERNANCE FRAMEWORK

SUSTAINABILITY STEERING COMMITTEE DIVERSITY, EQUITY & INCLUSION COMMITTEE

SUSTAINABILITY POLICIES AND PROCEDURES

We recognize that having policies in place is a key component of sustainability governance and our policies hold us accountable to our sustainability-related commitments on our material issues and enable us to measure and report progress.

Sustainability Policy

Summarizes and guides our actions on sustainability. The Managing Partner and Head of Sustainability and Brand is responsible for stewarding the policy’s implementation across the Hazelview business and the policy is reviewed annually and updated at least every two years. View the policy.

Diversity, Equity & Inclusion Policy

Summarizes our vision, goals, pillars and commitments to diversity, equity, and inclusion. The policy outlines how we will advance DEI within our company and measure progress using both quantitative and qualitative results.

Responsible Investment Policy

Defines how we consider ESG and climate-related risks within our investment process and defines how we integrate ESG topics during asset ownership.

Code of Business Conduct and Ethics

Defines our expectations of our employees to uphold fundamental values and ethical standards in all aspects of their work and Hazelview’s business. Sets out guidance with respect to conflicts of interest, protection of Hazelview’s assets and resources, confidential information, intellectual property, and creating a positive work environment.

Remuneration Policy

Our compensation processes and practices have been developed to support clear and consistent remuneration programs, sound and effective risk management, and long-term sustainable value. These processes and standards ensure that our remuneration programs are aligned to performance, market conditions, shareholders’ long-term interests, and business objectives, including ESG-specific objectives. These processes and standards have also been designed to support our ability to attract, motivate, and retain staff. Our variable remuneration programs are linked to company and individual performance, which is assessed through a comprehensive appraisal system. Our practices discourage risk taking that exceeds the level of tolerated risk for any account or fund managed by Hazelview and inhibits conflicts of interest among employees. Unethical behaviour or the breach of internal and external regulations, policies, or practices is taken seriously and can lead to termination.

OUR PEOPLE

Our greatest asset is our people.

OUR TEAM

At Hazelview, we are continuously striving to create value for our people and enhance relationships with our team members, investors, supplier partners, and community members. Helping our stakeholders thrive supports our business and enables us to attract and retain the best people.

Our objective is to create an inclusive, respectful, and rewarding workplace that allows our people to grow and advance in their careers. Our approach is guided by our People & Culture team which is responsible for engaging, listening, and working collaboratively to offer our people a fulfilling work experience.

In 2023, we continued to increase our investment in people across a range of areas including learning and development, benefits and perks, health and wellbeing resources, and more.

1 Annual totals refer to the number of active roles at the end of the reporting period. The total number of co-op students or interns hired in 2021, 2022, and 2023 were 13, 18, and 14, respectively.

EMPLOYEE ENGAGEMENT

Making Hazelview a Great Place to Work

In 2023, we achieved our goal of conducting two company-wide surveys. We use the results of these surveys to identify goals and build an action plan for each department. This helps us to target opportunities and drive meaningful actions to create an inclusive, respectful, and rewarding workplace.

TOP STRENGTHS

Empowerment, people, inclusivity and belonging TOP STRENGTHS

High levels of personal job satisfaction, inclusivity and belonging

of questions had 80% or higher answer of “strongly agree” or “agree”

AREAS OF OPPORTUNITY

Timely decision making, compensation transparency, understanding of Hazelview’s sustainability policy and strategy

agree their work has special meaning, this is not “just a job”

AREAS OF OPPORTUNITY

Timely decision making, transparency around total

COMMITTED TO EMPLOYEE WELLBEING

Creating a workplace where employees thrive is a top priority. We pride ourselves on offering a range of benefits and perks designed to support our team members in both their professional and personal lives. Hazelview provides the following benefits and perks to support the overall health and wellbeing of our people and their families:

+ Comprehensive group health benefit plan with extended healthcare and drug benefits, travel insurance, life, and accidental death and dismemberment coverage

+ Additional paid vacation day for eligible employees starting from their 3rd work anniversary until their 7th (for a total of 5 extra days)

+ Offering employees one paid volunteer day per calendar year to enable them to take part in volunteering activities with registered charities and community organizations

+ Providing more flexibility to employees by combining sick days and personal days into 8 paid Wellness Days per year

+ Additional flexibility and time off through our Summer Hours Programs where our teams get 5+ days of extra, paid time off

In 2023, we launched our enhanced Employee Health and Wellness Program for our employees by:

+ Transitioning our Employee Assistance Program to Inkblot which offers a more centralized and robust program, including mental health counselling, support and resources. Employees and their dependents have access to three hours of virtual counselling per year

+ Expanding benefits to include $1,500 annually for counselling and mental health services

+ Launching partnerships with Maple and Pillway to offer accessible wellness solutions

Through Maple, a virtual healthcare platform, employees are eligible for 4 free virtual visits with a licensed health-care provider, per family, per year

With Pillway, employees gain access to a more accessible and cost-effective solution to obtaining medication. Our group health plan covers 100% of drug reimbursement

As part of our overall approach to support our people, in 2023 we also launched a company-wide mental health training program which included:

Employee Mental Health Training

+ Outlined how mental health can impact your life

+ Focused on educating and reducing the stigma often associated with getting help

Manager Mental Health Training

+ Provided a framework and the skills necessary to address mental health as it shows up in the workplace

+ Provided guidance on how to communicate and demonstrate care in the workplace as a manager

LEADING CULTURE

In 2023, we were honoured to be the recipients of Canada’s Most Admired Corporate Culture Award which recognizes best-in-class Canadian organizations for having cultures that enhance performance and sustain a competitive advantage. Our culture is a critical component of what makes Hazelview successful. It’s one of our main differentiators and something we value. We strive to be known for having the best culture in the industry and to do this, we understand the need to frequently assess, measure, and manage our culture which for us is done by continuous employee feedback. In addition to our surveys, throughout the year we conduct listening sessions for a variety of topics such as DEI, our work environment, culture, and total rewards.

2024+ COMMITMENTS

+ Continue to conduct two company-wide employee surveys annually along with formal action plans

+ Continue to execute on our 3-year wellbeing plan with a focus on awareness and promotion of programs, education opportunities, and exploring new wellness-related initiatives

+ Launch the Helping Hands Program to provide a company-wide approach for employees to use their volunteer days and/or participate in Hazelview’s social impact programs

EMPLOYEE SATISFACTION

88%

agree people from all backgrounds are treated fairly and equally 83%

find their values and Hazelview’s values are similar

87%

find their work at Hazelview meaningful 83%

agree that Hazelview has a collaborative culture 85% feel included and respected by their team and company

82%

are satisfied with the amount of flexibility that they have in their work

“Hazelview’s leaders work tirelessly to build a positive, strong, differentiated and inclusive culture. Hazelview distinguishes themselves from other firms because they work collaboratively to develop an ownership mindset directed at realizing their vision.”

– KEITH ROBINSON, MANAGING PARTNER OF FOCUS CONSULTING GROUP

BELONGING AT HAZELVIEW

At Hazelview, we go all out to build and nurture a diverse, equitable, and inclusive culture where individual experiences and collective layers of difference are brought together to achieve greatness. We invest where we see potential, building for now and generations to come.

We recognize that creating and fostering a diverse, equitable, and inclusive workplace allows us to develop better ideas, initiatives, and people. We also recognize that it is Hazelview’s responsibility to create an inclusive environment that respects the dignity and diversity of all team members. In bringing collective differences together, we grow as an organization, as individuals, retain the best talent and better serve our partners, and the communities we operate in. Our DEI approach aligns and integrates

into our ongoing sustainability efforts, creates opportunities for growth and improves our performance.

In 2023, Hazelview made significant strides in advancing our diversity, equity, and inclusion commitments. Key accomplishments included:

+ Implementing a comprehensive DEI policy and mandatory training for all team members to foster inclusivity and awareness

+ Reshaping the employee experience through DEI lenses by refining talent acquisition processes, and evaluating equity-focused recruitment agencies

+ Providing enhanced learning opportunities to support team members’ exploration of various DEI topics

+ Completing the Global Diversity, Equity & Inclusion Benchmarks (GDEIB) to measure Hazelview’s DEI progress and help develop future strategies

BELONGING AT HAZELVIEW GOALS

Recognize, attract, and retain talent that reflects the diversity of the places we invest in

Identify and actively address barriers in organizational practices, training programs, and services

Develop our people and communities we operate in by investing in ongoing training and education

Create meaningful partnerships that reflect the diversity of our global presence

OUR TEAM MEMBERS

Ethnicity

LEARNING & EDUCATION

In 2023, Hazelview partnered with two leading organizations, the Canadian Centre for Diversity and Inclusion (CCDI) and the Mental Health Commission of Canada. CCDI helps organizations to improve inclusivity, be free of prejudice and discrimination, and generate the awareness, dialogue, and action for people to recognize diversity as an asset. In 2023, CCDI and Hazelview partnered to:

+ Deliver bi-monthly webinars on various DEI topics including “Navigating resistance to DEI” and “Moving from reconciliation to reconciliACTION”

+ Complete the Global Diversity, Equity & Inclusion Benchmarks (GDEIB) to measure Hazelview’s DEI initiatives progress and help develop future strategies

As part of Hazelview’s commitment to employee health and wellbeing, we partnered with the Mental Health Commission of Canada where Hazelview team members were given an opportunity to participate in the webinar Mind Matters: Understanding & Managing Mental Health which focused on mental health in the workplace.

ANTI-BIAS HIRING

Our commitment to anti-bias hiring practices ensures that we attract top talent from all backgrounds and perspectives, driving innovation, creativity, and success across our organization. In 2023, Hazelview began working with specialized partners to improve how we recruit and hire equitydeserving employees. Beyond partnerships, Hazelview reviewed our recruitment practices including:

+ Mandatory anti-bias in recruitment training for all recruiters

+ Reviewed and amended key recruitment tools and processes including updating job aids and descriptions for accessibility clauses

+ Refined our pre-screen tools and templates

DEI TRAINING & DEVELOPMENT

In 2023 we rolled out two mandatory DEI courses which 100% of Hazelview employees completed. The courses provided foundational knowledge on diversity, equity, and inclusion, helped develop self-awareness and objective judgment, identify biases that affect work relationships and productivity, and mitigate the impact of bias with attention and intention. We also offered the following training to our employees:

+ Fair and effective interviewing for diversity and inclusion

+ Diversity recruiting

+ Diverse talent in recruiting and hiring

+ E-learning course on the value of diversity in a team

We also hosted the Hazelview Speaker Series entitled In Conversation: Pride & Allyship, that covered topics of Pride, National Indigenous History Month, and Allyship.

2024+ COMMITMENTS

We are committed to advancing DEI at Hazelview by:

Reviewing and updating our DEI Policy every two years

Securing at least one national recruitment partner focused on Canadian-based equity-deserving groups to broaden candidate pool diversity

Expanding DEI learning & development opportunities with various strategies and programs

LEARNING AND DEVELOPMENT

We are committed to empowering talented people who share our core values and nurturing their longterm growth through a continuous learning environment.

In 2023, we continued to invest in our people by providing over 10,000 hours of overall training to our employees and further expanding training. Topic areas included sustainability, mental health and DEI.

SUSTAINABILITY TRAINING

Understanding Sustainability e-Learning Course

+ Provided foundational knowledge on the definition of sustainability

+ Covered why sustainability is increasingly important for businesses

+ Explained the three Ps of sustainability (People, Planet, Profit) and how they relate to our business

Sustainability at Hazelview Knowledge Power Hours

+ Webinars on Hazelview’s sustainability journey to date

+ Covered sustainability-related initiatives Hazelview has implemented with key results

SOCIAL IMPACT

We aim to have real impact on people and the communities we operate in.

HAZELVIEW CARES

In 2020, we laid the foundation for our social impact program, Hazelview Cares, by creating a corporate social responsibility strategy with clear impact objectives, partnerships, and programming. Over the next three years, we executed on this strategy by developing programs and partnerships with a focus on: education, housing support, and community engagement. As part of our process, we committed to re-evaluating our strategy every three years to ensure we’re meeting our stakeholder expectations, focusing on the right areas and delivering against our priorities.

In 2023, we conducted a needs assessment to ensure we are addressing the most pressing Canadian challenges, inclusive of all economic and social issues which dominate the current landscape. To ensure we are focusing on the right areas, we both conducted research and

engaged with our residents and employees alike to help inform our strategy.

Conducting this assessment has validated that we are focusing on areas that matter most to our employees, residents, and communities. As such, we have renewed our focus on the following areas: Housing Support, Education and Employment, and Health and Wellbeing The sections that follow show how we are continuing to develop new programs and initiatives to address these needs and make an impact.

70+ partnerships

SOCIAL IMPACT IN 2023 $327,500 donated to registered charities

10,000+

people positively and directly impacted through Hazelview’s programs and initiatives

HOUSING SUPPORT

As a rental housing provider, we understand the responsibility we have to residents across the country who call a Hazelview property home.

We also understand the challenges that come with finding housing, particularly that are close to transit and employment in larger cities.

At Hazelview, we are dedicated to helping address the housing shortage in Canada and continue to advocate for policies that support building new supply, including rental housing supply, through the associations we are members of and through additional advocacy work. We support improved housing policies and projects through our memberships with the Canadian Chamber of Commerce and the CD Howe Institute. In lockstep with our partners, we are actively building new housing supply, including affordable housing across a range of sizes, styles, and price points. We also support and partner with other organizations, including non-profits, such as Habitat for Humanity GTA, who are tackling housing issues.

We continue to partner with a not-for-profit affordable housing trust, co-founded by Habitat for Humanity GTA, to help bring much-needed new affordable housing to the City of Toronto. In 2023, we provided accommodation for eight individuals and their families as part of the City of Toronto Refugee Resettlement Program. Since 2021, Hazelview has contributed $3.6 million to fund affordable housing units in the Greater Toronto Area.

EDUCATION AND EMPLOYMENT

Program

Young Resident Summer Employment Program 21 students hired across 4 properties in Ontario for 8 weeks of full-time employment.

As part of our commitment to people, we invest in communities we operate in to provide educational opportunities that will help create meaningful socioeconomic change.

In 2023, we made progress in delivering education and employment opportunities across our company and at select properties through the following initiatives:

2023 Key Results

+ 5,800 hours of valuable work experience provided.

Hazelview Sustainable Real Estate Awards Program

Hazelview’s scholarship and bursary program aims to empower students who are passionate about urban development, engineering, and business management with a strong commitment to sustainability.

BGC Ottawa (Formerly Boys & Girls Club)

BGC Ottawa’s Leaders4Life programming and their Learning Kitchen provide youth with important life skills to equip them to be successful adults and leaders. The clubhouse hosts a gym, dance studio, education centre, learning centre, and two kitchens.

Enactus Canada

Hazelview’s partnership with Enactus is designed to empower Enactus teams with the resources they need to identify, create, and deliver projects that make urban multifamily buildings more socially and/or environmentally sustainable. We use the accelerator to generate ideas that will make our own buildings more sustainable.

+ 15 total scholarships/bursaries awarded to students.

+ Additional funding supported two academic think tanks that focus on sustainable innovation.

EDUCATION PARTNERS

+ Hazelview’s donation has helped fund BGC Ottawa’s new 15,000 sq. foot Taggart Parkes Family Clubhouse, in the Herongate neighbourhood where Hazelview operates.

+ Over 150 underserved children use the clubhouse every day, including 40 youth in the ‘Leaders4Life’ program.

+ 47 Enactus students logged 2,163 volunteer hours through project delivery and 2,767 people were directly impacted.

+ Team Kuponya, an innovative group of students who were redefining housing options in Indigenous Communities won the 2023 Hazelview Sustainable Cities Project Accelerator. Using climate resilient, sustainable, energy efficient, and rapidly deployable materials the team created their first pilot home and now produces a ‘house in a box’ kit that offers an affordable housing solution combined with sustainable materials.

HEALTH AND WELLBEING

We recognize the opportunity that we have to support the health and wellbeing of both our residents and employees, especially in light of the trend that Canadians continue to experience increased health-related challenges. Through our commitment to health and wellbeing, we aim to make healthcare accessible for our stakeholders.

EMPLOYEE HEALTH AND WELLNESS

As part of our fulsome Employee Wellbeing Program, we’ve launched a comprehensive wellbeing program for employees that includes enhanced access to healthcare providers, including mental health professionals, mental health resources and training, and access to programs that reduce barriers to accessing medication. More details about our Health and Wellness Programs can be found in the Our People section.

VIRTUAL HEALTHCARE FOR RESIDENTS

The Maple Healthcare program is a virtual healthcare service which brings complementary services to Hazelview residents and was initially launched at 10 properties in 2022. In 2023, the program was expanded to include:

2024+ COMMITMENTS

+ Launch the Hazelview Cares Foundation

+ Launch Rent Aid by Hazelview Cares to support residents experiencing financial difficulties

+ Develop the Hazelview Cares Affordable Commercial Program to support small businesses and non-profits with affordable leases 11 additional properties

625 registered program users (as of Dec 31, 2023)

89 dependents of registered program users

Since the program was launched, 523 general practitioner consultations have been completed along with 29 mental health consultations.

After surveying participating residents, we found that 77% are more likely to continue to rent at our buildings as a result of being offered the service, 88% report that their experience with Hazelview is made even better by receiving this virtual healthcare service and the average satisfaction rating of the program was 4.79 out of 5.

PRIVATE REAL ESTATE SUSTAINABILITY

Our private real estate sustainability program protects value and strengthens relationships.

PRIVATE REAL ESTATE INVESTMENT MANAGEMENT

Adopting ESG best practices in our globally diversified real estate portfolio.

Hazelview Investments operates a diversified real estate portfolio comprised of private real estate and private real estate debt across multiple asset classes. While our Canadian multifamily portfolio has been the focus of our integrated sustainability efforts to date, we are committed to employing strong sustainability management practices throughout our diversified private real estate portfolio.

The private real estate portfolio is invested across asset classes, including high and low-rise office buildings, industrial, residential, life sciences, retail, land, development, and hotel assets. For some of these investments, Hazelview holds an equity interest but does not manage or operate the underlying assets on a day-to-day basis. In these cases, operational decisions are made by our investment partners who range in size, scale, and maturity of sustainability management practices.

Where we do not manage the day-to-day operations of a building, we work closely with our third-party partners on ESG management

practices, and we are committed to expanding sustainability considerations into our diversified portfolio. This includes formalizing sustainability topics into our due diligence activities, engaging with our investment partners to better understand their sustainability activities and performance and sharing sustainability data and results in our annual reporting to ensure greater transparency and accountability.

2024+ COMMITMENTS

+ Expand our outreach to all partners and sponsors and collect data to improve our understanding of how groups are performing on sustainability

+ Review and update individual portfolio sustainability plans for all private real estate mandates including review of fund investment objectives, fund mandates, and regulatory requirements

INTEGRATED SUSTAINABILITY APPROACH

Our integrated sustainability program covers our Canadian multifamily portfolio where we provide asset and property management services.

The four themed pillars of our program capture the key sustainability practices and initiatives that support our vision and commitments and align with our business strategy and values. The pillars are supported by performance indicators, targets, progress tracking, and reporting both internally and externally to our stakeholders. Our Canadian multifamily portfolio has been the focus of our sustainability efforts to date because we have operational control and access to sustainability performance data such as energy use, greenhouse gas emissions output, water use, waste management practices, and tenant engagement.

4 KEY BENEFITS OF OUR SUSTAINABILITY PROGRAM:

+ Increased portfolio resilience through continuously improving resource efficiency

+ Elevated risk identification and management

+ Increased culture of innovation

+ Enhanced ability to attract and retain residents, tenants, and team members and maintain their trust

SUSTAINABILITY GOVERNANCE & POLICY

RESOURCE EFFICIENCY

Improve operational efficiency of buildings and operations.

RESILIENCE

Protect portfolio value through environmental and social risk identification and management.

RESIDENT AND TENANT EXPERIENCE

Strengthen relationships with residents, prospects, and tenants.

RELATIONSHIPS

Enhance relationships with employees, suppliers, and communities.

MEASUREMENT & TARGETS

COMMUNICATIONS & REPORTING

RESOURCE EFFICIENCY

Our Sustainability and Capital teams are responsible for implementing environmental programs and initiatives that improve resource efficiency, reduce our environmental impact, and preserve asset value. In 2023, we advanced many of our environmental programs and initiatives and continued to measure our environmental performance and progress.

Data Management Plan

As we advance on our sustainability journey, we recognize the importance of accurate data, which enables us to improve resource efficiency, minimize the environmental impacts of our portfolio, set GHG reduction targets, and confidently disclose our performance to our stakeholders. To ensure our internal processes with respect to environmental performance data are performed consistently, we developed a Data Management Plan in 2023. The Data Management Plan outlines roles and responsibilities, data-related boundaries, utility data collection methodology with frequent quality checking audits, and GHG calculation protocols.

Environmental Policies

In 2023, we reviewed the more than 10+ environmental policies we have in place with a cross functional group of senior team members responsible for the implementation of each policy to ensure they reflect our current practices and future commitments. This group

included the Head of Sustainability, along with key stakeholders from our Sustainability, Capital, Property Management, National Operations, and Human Resource teams.

Building Certifications

In 2023, we achieved a 100% green building certification rate for all properties in our multifamily portfolio. All of these properties are now certified through either the Canadian Certified Rental Building Program (CRBP) or BOMA BEST. This significant milestone reflects our dedication to not only deliver best in class property management but also with a key focus on environmental sustainability and resident wellbeing.

SUSTAINABLE BUILDINGS

All CRBP quality-assurance-approved buildings are also Living Green TogetherTM environmentally certified. Through the CRBP program, properties must meet 55 industryleading standards to become certified, including 10 environmental standards. These standards encourage quality and excellence in the operations and maintenance of multifamily properties and promote environmental responsibility and resident engagement.

The BOMA BEST Sustainable Buildings certification recognizes excellence in energy and environmental management and performance in multifamily and commercial real estate and entails audits in ten categories: energy, water, waste, health and wellness, air quality, comfort, custodial, purchasing, site, and stakeholder engagement.

Hazelview won the BOMA BEST award for our property at 2150 Maisonneuve St. West as the highest scoring property in the Multi-Unit Residential Building category within the BOMA Quebec chapter region. 100% green certified portfolio

PILOTING INNOVATIVE TECHNOLOGIES

We are piloting several new technologies to support our goal to reduce our scope 1 and 2 GHG emissions in our multifamily portfolio. This includes new natural gas heating efficiency projects such as the Endotherm Heating Additive & Parity Advanced Building Automation. We are also piloting an efficient electrified in-suite heat pump at one property that will provide heating and air conditioning to our resident’s suites. Through this pilot, we will obtain comparative performance data that can be used to build a case study to support the expansion of heat pumps across the portfolio, which will be instrumental towards our future decarbonization strategy. These heat pumps also provide the added comfort of air conditioning which can greatly benefit our residents.

ENVIRONMENTAL PERFORMANCE

Continuously working to decrease our footprint.

A key component of our sustainability program is ensuring we collect high quality and accurate environmental performance data. We recognize ongoing opportunities and remain committed to improving both data coverage and accuracy within our portfolio, with our overall goal to improve the efficiency of our buildings.

In 2023, we improved our measurement and understanding of our portfolio’s environmental performance using industry-leading software. We invested in utility billing management analytics and began using our newly integrated IBM Envizi platform to support accurate and comparable performance indicators for reporting, as well as decisionuseful information for investment teams to support environmental performance objectives, target setting and capital planning.

Envizi enables us to:

+ Build a data foundation that delivers auditable, robust sustainabilty data and GHG calculations

+ Streamline reporting and disclosure to meet internal and external requirements for sustainability reporting

+ Accelerate decarbonization by identifying opportunities to improve energy efficiency objectives and track performance against commitments

1 Environmental performance data

energy and water audits completed in 2023 (48% of properties)

waste audits completed in 2023 (41% of properties)

70% of our Canadian multifamily portfolio has completed an energy, water, and waste audit in the last 3 years

relates to Hazelview’s Canadian multifamily portfolio.

ENERGY

Our energy use includes purchased electricity and heating fuel (natural gas and heating oil) that is used to power and heat our multifamily buildings. Heating fuel, which represents 69% of our total energy footprint, relates to both Hazelview and resident spaces as we cannot isolate resident natural gas consumption in our buildings. Electricity consumption includes Hazelviewcontrolled spaces such as common areas and building exteriors, as well as resident spaces where sub-metering is present.

In 2023, our total energy use decreased by 5.5% due to our investments in energy retrofit projects, lower natural gas consumption from a mild winter, our efforts to improve the quality of our historical energy data, and enhancements in our data collection and reporting processes.

GHG EMISSIONS

In 2023, our total GHG emissions decreased by 3.7% which was driven by the related decreases in energy consumption described in the chart on the left. The overall decrease is slightly offset by an increase in our scope 2 emissions due to higher year over year data coverage in provinces with emissions intensive grids, such as Alberta, Saskatchewan, and Nova Scotia. Our scope 3 emissions represent GHG emissions from resident-controlled spaces. Through changes in legislation and investments in submetering, we have been able to collect more data to support scope 3 emissions reporting compared to 2022. Our scope 3 emissions increased by 29.7% due to this increased data coverage, however we still saw our GHG intensity decrease by 6.3%.

SUPPORTING REDUCED RESOURCE USE

To support reduced resource use in 2023, we invested approximately $7 million in energy, GHG, and water efficiency projects and upgrades across our portfolio. This included:

building automation system installations and upgrades (BAS)

Heating Fuel4

1 Data represents absolute values based on the number of assets held in the portfolio at the end of the reporting years, for which we have data.

2 2022 energy figures have been updated to reflect enhanced data collection and reporting procedures.

3 Electricity data coverage as a percentage of floor area increased from 89% in 2022 to 95% in 2023.

4 Heating fuel data coverage as a percentage of floor area increased from 97% in 2022 to 99% in 2023.

5 Scope 3 emissions include emissions from energy consumption that was indicated as “tenant consumption”.

ENVIRONMENTAL PERFORMANCE TARGET UPDATE

As described above, in 2023 we prioritized enhancing the quality and coverage of our environmental data to ensure that our future environmental reduction targets are informed by the best quality data and are based on an accurate baseline. To drive GHG reductions in 2023, we included the costs for energy retrofit projects into our capital budgeting process and quantified the estimated forecasted emission reductions. We look forward to sharing our environmental reduction targets in the near future.

WATER

Hazelview is committed to reducing our water consumption and implementing efficient practices to reduce water consumption across the portfolio. Our water conservation program includes:

+ Track water consumption

+ Implement water conservation strategies

+ Install water-efficient fixtures

+ Continuously track and monitor water usage of the common areas at all our properties on at least a quarterly basis, conduct water audits and identify opportunities for improvement

In 2023, our efforts led to a 1.8% decrease in total water consumption, from 2,993,172 m3 in 2022 to 2,939,419 m3 in 2023. We saw a decrease in water intensity of 3.4%. This data represents 86% of our portfolio, an increase from 82% in 2022.

WASTE

Hazelview is committed to protecting our environment by conserving resources, minimizing waste output and promoting recycling and composting in our buildings. We obtain waste data from private and municipal waste haulers or estimate output and diversion using waste audits. In 2023, we completed 113 waste audits, which enabled us to better estimate of our total waste output across our portfolio. In 2023, we increased waste data coverage to 73% vs. 40% in 2022. As a result, in 2023, our total reported waste consumption was 8,836 tonnes compared to 4,084 tonnes in 2022. We achieved a diversion rate of 32%, an increase from 27% in 2022.

2024+ COMMITMENTS

+ Complete energy, water, and waste audits at 100% of our Canadian multifamily properties by end of 2024

+ Continue to implement building automation systems, HVAC and lighting upgrades, LED and low-flow retrofits, and window replacements to drive improved resource efficiencies

+ Continue to work on our decarbonization roadmap which includes implementing audit recommendations and researching and piloting new technologies to further reduce our consumption

+ Continue to pilot new technologies and products to reduce our GHG emissions such as smart automation systems, EndoTherm, and heat pumps

CASE STUDY: RIVERSIDE TOWERS

Riverside Towers is a blueprint of the process we undertake when we acquire older buildings and implement energy efficiency upgrades to reduce environmental impact and create financial value.

We acquired Riverside Towers in January 2022, recognizing that the building was rich with opportunity to drive value through capital improvements and energy and water efficiency projects.

8717 Riverside Dr. East was constructed in the mid 1970’s and upon acquisition, the building had most of the original components and building systems which were outdated and inefficient. We undertook major capital projects shortly after acquisition including full parking garage restoration, elevator modernization, and installation of a smart irrigation system. We also prioritized energy and water efficiency projects such as a full LED lighting retrofit, including motion sensors in the garage, installation of low-flow water fixtures in all suites, booster pump replacements, electric heating controls, and a carbon monoxide detection system in the garage.

We partnered with students from St. Clair College to complete landscaping designs which featured drought-tolerant and native plant species and included a pollinator garden. In 2023, these upgrades led to reductions in both energy and water use compared to the previous year, despite an overall increase in the building’s occupancy rate.

Hazelview recognizes the physical and transition risks that climate change poses to the real estate sector and the importance of preparing assets in our portfolio.

RESILIENCE

Protecting value through risk and opportunity management.

A resilient portfolio is a future-ready portfolio. It is one that is well-positioned to withstand the effects of climate change and help address social issues. By identifying and managing environmental and social risks and opportunities we help ensure business continuity, safeguard our assets, and support our stakeholders. Enhancing the resilience of our portfolio also supports growth and profitability to make us a better overall partner.

Hazelview recognizes the physical and transition risks that climate change poses to the real estate sector and the importance of preparing assets in our portfolio. We are committed to increasing climate change resiliency and adaptation through the adoption of policies and procedures across the portfolio.

Our 5-year capital plans for the multifamily portfolio are reviewed and updated annually. Portfolio resilience is assessed through this process by determining exposures for every major component of each asset such as its building systems, building envelope, and roof.

In 2023, we implemented several measures to increase our property-level resilience including:

generator upgrades to incorporate additional loads (with an additional planned for 2024)

envelope upgrade projects (façade/roof) to ensure buildings are protected against more frequent and severe weather events

ESG DUE DILIGENCE

To ensure we assess ESG risks and opportunities systematically during our investment process, we developed and implemented an ESG due diligence checklist which includes:

+ Physical climate risk and natural hazard events

+ Building energy ratings and certifications

+ Sustainability retrofits and efficiency measures

+ Sustainability data and key performance indicators

+ Sustainability audits and assessments

+ Social considerations (tenant satisfaction reports, designated affordable units, non-profit partnerships, etc.)

+ Green financing or rebate initiatives

+ Governance considerations

+ Tenants/building use

+ Sponsor/borrower details (GRESB score, ESG report, sustainability objectives)

2024+ COMMITMENTS

+ Incorporate a standardized approach to better measure physical climate risks during the due diligence process and for our existing assets

+ Launch an Electrical Preventative Maintenance Pilot Program for all Toronto properties

RESIDENT AND TENANT EXPERIENCE

Our goal is to foster thriving communities.

Through this pillar, we focus on helping residents and tenants thrive, both at home and in their businesses. We seek to achieve the best possible social outcomes as both a provider of housing and a landlord for commercial businesses. We continuously strive for high satisfaction ratings by regularly collecting feedback from tenants and using that feedback to make ongoing improvements.

VOICE OF RESIDENT PROGRAM

Our Voice of Resident (VOR) program is a fully automated digital platform launched in 2021 to collect ongoing feedback from prospects and residents about their experiences at our buildings. The program covers the full customer experience from prospect and move in through to maintenance requests, day-to-day living, and move out. Each year, we send more than 120,000 email invitations, generating about 20,000 completed surveys, which are updated and used daily to inform business decisions. We develop action plans to address opportunities, with the goal of continuously improving performance on a variety of aspects of the resident experience ultimately increasing satisfaction, resident tenure, and advocacy. In 2023, for the first time, we set a VOR satisfaction improvement target of 5%. While year-over-year improvements were made in four out of five

categories, hitting the 5% target was a mixed success. However, setting a target has resulted in the business reviewing results more regularly and considering action plans that will contribute to continued improvement in future years.

2023 VOR SURVEY RESULTS

147,000 surveys deployed 18,900 responses

78% of prospects and residents who interacted with Hazelview were satisfied or very satisfied with their experience (a 2.5% point increase from 2022)

2024+ COMMITMENTS

+ Continue to engage with our residents and aim to improve scoring across all customer journey segments

+ Set individual and region-specific VOR satisfaction improvement targets based on their respective strengths and opportunities in each customer journey segments and continue to monitor progress against these targets

77% of prospects indicated that sustainability is a “very important” or “fairly important” factor in their rental decision-making process

62% of residents indicate that sustainability is a “very important” or “fairly important” factor to them when going about their daily tasks

RELATIONSHIPS

Partnering for sustainability and health and wellbeing impact.

At Hazelview, we recognize that our procurement choices impact our residents, communities, and the environment. To integrate sustainability, along with health and wellness into our procurement decisions, we provide third-party designers with efficient pre-selected materials to build specification offerings which includes working with preestablished vendor partnerships. Our program lays out which pre-selected products can be featured in our properties, which incorporates products that are cost-effective, sustainably produced/manufactured, and supportive of safe human health and wellness.

We continue to mandate low VOC paints, ENERGYSTAR appliances/fixtures, low-flow water fixtures, and low VOC flooring/adhesives which further features the use of recycled materials in manufacturing processes, etc.

In 2023, we began developing an enhanced Vendor Code of Conduct. This will ensure our vendors are more closely aligned with our sustainability policies, adhering to mandates on specific materiality/procurement requirements, and formalizes our overall commitment to ESG with our vendors. We continue to push sustainable procurement within our specified material selection using

third party designs and pre-existing trade/ supplier partnerships (Olympia Tile, Sherwin Williams, Tarkett, The Brick, etc.). We also updated all our cleaning supplies to align with environmentally friendly BOMA Best Standards in buildings that are BOMA Best certified and look to continue this implementation across the full multi-residential portfolio to align with our sustainable procurement policy in 2024.

2024+ COMMITMENTS

+ Re-evaluate and expand on existing sustainable procurement practices and policies

+ Engage with partners to better understand their sustainability practices

+ Complete and release an enhanced Vendor Code of Conduct which includes a heightened focus on sustainability

DEVELOPMENT MANAGEMENT

We are committed to sustainable development that fosters happy, healthy, and thriving communities.

As a leading residential real estate developer and redeveloper, we examine opportunities to incorporate energy efficiency, sustainable materials, and leading technologies into the design and construction of our properties. To guide our approach to embedding sustainability into developments, we employ systematic sustainable development practices that are based on leading green building standards, certifications, and benchmarks. For example, we:

+ Benchmark our design development standards to LEED Gold certification

+ Pursue Toronto Green Standard Tier II where feasible, for our Toronto properties

Our sustainable development practices and processes are formalized in an ESG Guideline and Checklist to ensure we are consistently embedding sustainability considerations in every development we undertake. Since the sustainability landscape is rapidly evolving, we are committed to continuously educating our team on new and emerging innovative sustainability technologies, processes, and incentives.

In 2023, we finalized our Sustainable Development Policy. To develop the policy, we considered our existing sustainable development practices and commitments, alignment with industry best practices, including GRESB and consistency with our investors and development partners.

VERTICAL VILLAGE FRAMEWORK AND COMMUNITY WELLBEING FRAMEWORK

The Vertical Village Framework aims to combine a variety of modern amenities in one vertical village. The development is envisioned to draw in the community, cultural, wellness, and live and work opportunities in the surrounding neighbourhood to create an amenity-rich residential building that will offer returning and new residents an active and healthy lifestyle.

Hazelview uses the Community Wellbeing Framework as a guideline for designing master plan communities to encompass the essential domains related to the social, economic, environmental, cultural, and political conditions needed for communities to reach their potential.

SUSTAINABILITY INTEGRATION IN THE DEVELOPMENT PROCESS

1. FINANCING

+ Sustainable financing is part of our development lifecycle and our development team researches and implements sustainable financing solutions and products as part of the process. This helps to incentivize continued evolution of ESG initiatives/ solutions within our developments

2. SITE SELECTION

+ Assess proximity to environmentally sensitive areas, historical sites, local ecosystems, and floodplains

+ Prioritize developing on previously occupied land vs. greenfield

+ Identify climate-related risks including servicing and stormwater

+ Assess proximity to active transportation

+ Prioritize sites that use existing urban infrastructure

3. SUSTAINABLE DESIGN

+ Strive to meet green design standards

+ Incorporate green infrastructure (green roofs, rainwater harvesting)

+ Protect biodiversity including tree retention and protection

+ Design floorplates that are adaptable to multiple functions

+ Integrate biophilic elements

+ Integrate water sensors and flood-resistance features

+ Include renewable energy systems, EV chargers

+ Install sub-metering for electricity and water

+ Integrate leading energy and water-efficient technologies and waste management infrastructure

+ Incorporate pedestrian-friendly design and infrastructure for car and bike sharing

+ Explore partnerships with technology companies for smart city solutions

Supporting climate compatibility, accessibility, and affordability criteria

4. PROCUREMENT + CONSTRUCTION

+ Prioritize the use of low-carbon and circular building materials

+ Prioritize the use of low/no-VOC and non-toxic materials

+ Encourage the use of materials that can be recycled or repurposed

+ Prioritize local hiring and sourcing

+ Collaborate with local educational institutions to create training programs

+ Employ construction methods that minimize environmental impacts

+ Minimize construction waste by reusing excavated materials and waste diversion tactics

+ Promote health and safety at development sites

5. HANDOVER

+ Conduct full building commissioning and testing related to building automation systems, façade and wind screens, water and air tightness, access controls, and water meters

6. COMMUNITY ENGAGEMENT

+ Provide a direct line of communication for local communities to gather input and address concerns

+ Foster community through the inclusion of public spaces, parks, and cultural amenities

+ Explore partnerships with local community organizations

7. MONITORING + REPORTING

+ Measure and report on the environmental, social and economic impact of developments using KPIs

+ Regularly communicate sustainable development performance to stakeholders

Hazelview is using the Canada Mortgage and Housing Corporation's MLI Select to support climate compatibility, accessibility, and affordability criteria for certain development projects. The innovative multi-unit mortgage loan insurance product will continue to support the feasibility of our development pipeline of over 21,000 units and in 2023 we applied to finance more than 1,400 units.

CASE STUDY: BLOOR AND DUFFERIN

Located at one of Toronto’s prominent intersections, this new mixed-use development will be a master-planned community that includes residential, office and retail spaces.

The development will infuse the existing fabric of the neighbourhood with newly built forms to meet the needs of this changing community through the retention of the historic Kent School and the preservation of the heritage façade of Bloor Collegiate Institute. Through this development, Hazelview will bring over 1,000 new rental units to the market while the broader community benefits from public affordable housing units, a community hub, and public daycare.

This fully accessible urban design will include new roads to improve traffic circulation, enhanced landscape designs to improve the pedestrian realm at grade, and an abundance of car and bike parking. The community is near the Dufferin TTC subway station and residents can easily access it via a newly constructed pedestrian tunnel.

The property development will also feature key environmental considerations such as air source heat pumps for both heating and domestic hot water, low flow water fixtures, a 98% efficient backup domestic hot water boiler, low e-coating glass for thermal reflection, and thermally broken frames for lower heat transfer. Based on the expected

environmental performance of the building, this project qualifies for the Canada Mortgage and Housing Corporation MLI Select Financing program.

Expected environmental and social benefits:

+ Total community benefits are projected to be $68.7 million for affordable housing, community hub, public parks, underground pedestrian access to public transit, and more

+ Bloor and Dufferin Block A is expected to achieve annual energy savings of 31% and a 55% reduction in annual GHG emissions over the National Energy Code of Canada for Buildings (NECB)

+ Bloor and Dufferin Block B is expected to achieve annual energy savings of 44% and a 74% reduction in annual GHG emissions over the NECB

This project demonstrates our commitment to embedding sustainability into our developments that positively impact both our communities and the environment.

CASE STUDY: HAZELVIEW VENTURES

Technology is playing a transformational role in shaping the future of real estate.

To embrace the opportunities that technology presents in our business, we created a subsidiary, Hazelview Ventures, to partner with innovative, early-stage tech companies that we can pilot and implement in our real estate portfolio. In doing so, we offer entrepreneurs the ability to test, refine and scale at an enterprise level, while also exploring creative solutions to improve efficiency and sustainability across the Hazelview property and development management platform.

Update on Augmenta

In 2022, Hazelview partnered with Augmenta, a company focused on automated design tools that generate fully constructible, code-compliant designs of electrical raceway routing which will reduce cost, risk and ensure materials are not wasted. In 2023, Augmenta made compelling progress on their product development and are on track to generating commercial revenue in Q2 2024. From a use case perspective, Augmenta has begun to work with our Developments Team to pilot a proof-of-concept of their

solution. Our partnership with Augmenta is an example of our commitment to seeking innovative solutions to improve efficiency and sustainability across the Hazelview property and development management platform.

SensorSuite

In 2023, we made an investment in SensorSuite, a company whose platform monitors controls and optimizes building energy consumption and can help deliver 25% in utility savings in older buildings with no central systems. SensorSuite’s offering is currently being leveraged on 70+ Hazelview buildings, and their team is exploring further opportunities to collaborate with Hazelview.

PUBLIC REAL ESTATE SUSTAINABILITY

* The following applies to the public securities components of our separately managed accounts and private funds. For sustainability or ESG related disclosure on our public funds, including Hazelview Global Real Estate Fund and Hazelview Alternaitve Real Estate Fund (the “Funds”), please review the prospectuses. Hazelview Securities Inc., the manager of the Funds, is currently registered with the Ontario Securities Commission as a portfolio manager, investment fund manager, and exempt market dealer. Hazelview Securities Inc. is wholly-owned subsidiary of Hazelview Investments Inc.

We incorporate ESG factors and best practices into what we do.

RESPONSIBLE INVESTMENT

Our approach to responsible investment is rooted in our investment process.

Hazelview is a global investment manager focused on investing in the global listed real estate market. We invest in a variety of real estate asset classes, including multifamily, industrial, retail, office and healthcare. Our objective is to deliver superior risk-adjusted returns to our clients over the full market cycle. Based on our experience, we believe that ESG factors are critical in the evaluation of an investment’s ability to generate attractive risk adjusted future returns. To deliver on our objective, we are committed to integrating ESG and engaging with the companies we invest in throughout our investment process to ensure we are investing responsibly on behalf of our clients.

ESG integration and engagement with companies are fundamental to our responsible investment approach. By integrating ESG issues into our investment research and analysis and creating an open dialogue with management teams of companies we invest in, we are more likely to reduce risk and create sustainable shareholder value over the long term.

Our responsible investment approach enables a continuous process of driving ESG integration, fostering dialogue, gaining insights and delivering positive financial outcomes throughout the real estate investment cycle.

We consider ESG factors at each stage of the investment process and take a principled and bottom-up approach that is based on Hazelview’s Responsible Investment Policy and internationally recognized standards. Our responsible investment approach involves incorporating ESG considerations into our proprietary risk model, integrating ESG into our investment decisions, engaging with the companies we invest in and finally, reporting our ESG performance to our investors.

OUR CONTINUOUS RESPONSIBLE INVESTMENT CYCLE

Engaging Collecting Reporting Reflecting

Collecting

ESG data and integrating into our investment decisions.

Reflecting on the best way to deliver the highest risk-adjusted returns on ESG efforts.

Engaging with companies we invest in on their ESG implementation plans and efficiencies.

Reporting to our clients and discussing our insights from different countries and real estate sectors.

INCORPORATING ESG FACTORS INTO OUR PROPRIETARY RISK MODEL

ESG risks and opportunities are multi-faceted and complex and must be considered in the investment analysis. Our approach ensures we are reflecting not only the financial metrics but also the material ESG risks and opportunities in the valuation of a company’s cash flow potential.

We use a proprietary ESG risk model to collect and analyze key ESG information and evaluate investment opportunities. On a continuous basis, we collect ESG information from a company’s disclosures and third-party ESG rating reports. However, because third-party ESG ratings can be infrequent, imperfect, and retrospective, and a

company’s disclosures can be limited, this can result in missed opportunities. This is why we also take a forward-looking view on company ESG practices by complementing disclosures and third-party ratings with direct engagement with the company’s management team and integrating our findings into our proprietary risk analysis.

Engaging directly with management teams helps to understand a company’s forward-looking sustainability programs and priorities and recognizes that sustainability is integral to the long-term success of their business.

This bottom-up approach has helped us identify opportunities to invest in progressive companies, especially when their ESG efforts have not yet been realized or reflected in public scores.

This risk analysis produces a risk rating that is applied to the valuation of each investment in our investment universe to determine an expected risk-adjusted return that is used to inform our investment decisions. We continue to refine our proprietary risk model to collect more ESG data, enhance our analysis, and evaluate how they can impact potential returns. For example, in 2023, our risk model was enhanced to include regulatory requirements such as the EU Taxonomy, SFDR and decarbonization pathways such as Carbon Risk Real Estate Monitor (CRREM). Over time, we expect to rely less on external data providers and more on our proprietary ESG risk ratings and we also expect the key ESG inputs into our risk model to improve as companies’ ESG disclosures and transparency improve.

The long-term nature of real estate investing can lead to specific ESG risks and opportunities in the real estate sector. Some examples of the ESG criteria included in our proprietary risk analysis are:

ENVIRONMENTAL

+ Efficient use of energy and raw materials

+ Implementation of new efficient technology

+ Comprehensive climate change strategies

+ Green bond financing

+ Sustainable building certifications

SOCIAL

+ High standards in occupational safety and health protection

+ Equal opportunities and diversity

+ Fair conditions at the workplace, adequate remuneration and opportunities for training and further education

+ Implementation of sustainability standards amongst suppliers

+ Fair treatment of tenants and maintenance of buildings

GOVERNANCE

+ Transparent measures to prevent corruption and bribery

+ Anchoring sustainability management at board and supervisory board level

+ Linking the remuneration of the board of directors with the achievement of sustainability goals

+ Board diversity and independence

INTEGRATING ESG INTO INVESTMENT DECISIONS

Understanding the various influencing factors is critical to making an investment decision and good financial outcomes for our clients. We evaluate potential investment opportunities within our investment universe by calculating an ESG risk score. The ESG risk score is based on a qualitative and quantitative assessment of climate-related transition risk and physical risks and social and governance risks and opportunities. The ESG risk score makes up 20% of the total score, meaning environment, social, and governance risks make up 20% of our applied cost of equity.

+ Quality of Assets

+ Location

+ Lease Duration Corporation + Quality of Management

ESG RISK SCORE 20%

PREPARING FOR HAZELVIEW’S FIRST PRI SUBMISSION

In 2021, Hazelview Investments became a signatory to the UN-supported Principles for Responsible Investment. In 2023, Hazelview conducted a PRI readiness assessment to evaluate our current responsible investment practices for its public real estate investment process and opportunities to improve in advance of its first submission in 2024. The assessment identified opportunities to enhance responsible investment practices by developing new processes to monitor and address ESG trends and risks in Hazelview’s listed equity portfolio and expanding existing processes to all listed equity strategies.

ENGAGING WITH INVESTEE COMPANIES

Once we make a decision to invest, we use our influence to monitor company ESG practices and support companies to improve ESG performance and disclosures. Access to comparable and consistent ESG data continues to be a challenge globally, which is why our approach includes frequent and proactive engagement with companies in our investment universe. This provides us with unparalleled insight and feedback on potential challenges or future issues.

Our process includes continuous engagement with our entire universe of 400+ issuers.

For each investment, external ESG ratings are monitored on a continual basis by each Portfolio Manager and are part of the decision to hold or exit a position. Each Portfolio Manager has access to MSCI ESG data and produces a semiannual report with the updated MSCI ESG ratings, Controversies and UN Global Compact Compliance.

Using those reports, Portfolio Managers will engage with certain management teams, with a focus on those that did not score well or have no external scores, to review their efforts, challenges and progress. The objective of the engagement is to understand and improve ESG performance and encourage increased ESG transparency and disclosure.

As our proprietary risk analysis improves, so does our tracking of ESG metrics and understanding of what they mean. For example, our model has historically tracked greenhouse gases and the

geographic location of assets. In 2023, we added another dimension to compare the assets to the CRREM decarbonization pathway to evaluate potential transition risks. In 2023, we added 2021 and 2022 ESG metrics into our proprietary risk model so we can monitor the progress companies are showing over time.

If we uncover unethical, governance, environmental or social issues in our investments, we will first engage with the company to investigate the issue or behaviour. However, if the matter is not resolved to our liking, we don’t hesitate to use legal or public channels to highlight the misconduct.

REPORTING TO OUR INVESTORS

We are committed to being transparent with our investors on our ESG approach and performance. In 2023, we provided select ESG reporting on a regular basis to investors. This could include MSCI ratings, controversies, and sustainable impact themes. If requested, we will provide detailed measures on the portfolio such as GHG emissions.

2024+ COMMITMENTS

+ Review and update the Responsible Investing Policy for our Public Real Estate Investments

+ Continue to engage with data providers and companies to improve data availability

CASE STUDY: IMPROVING CORPORATE GOVERNANCE IN JAPAN

As an investor in companies on the Tokyo Stock Exchange (TSE), we have found there is misalignment between companies’ motivations and investor expectations relating to corporate governance disclosures. For example, the TSE uses a “comply-or-explain” approach when it comes to its Principles of the Corporate Governance Code, allowing companies to provide an explanation in the instance of non-compliance. For this approach to be effective, it is important for companies to fully “explain” their approach and initiatives, so investors understand why the company feels the disclosure isn’t warranted. However, there have been instances of companies leaving their explanation as “under consideration” for several years, thus defeating the intentions of the comply-or-explain approach.

As an active investor, we have engaged in constant dialogue with the companies we invest in as well as with the TSE to foster a better relationship between investors and companies. After several years of dialogue, in 2023, the TSE published actions that it would be encouraging listed companies to take in response to both our conversations and those with our peers. Since then, we have started to observe positive changes, especially with certain Japanese companies such as Mitsui Fudosan. Since December 2023, Mitsui Fudosan’s share price has increased, which we partially attribute to the engagement efforts we’ve undertaken, along with other investors, to improve transparency.

APPENDIX

Standards References

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

Recommendation

TCFD Governance A

TCFD Governance B

TCFD Strategy A

TCFD Strategy B

TCFD Strategy C

TCFD Risk Management A

TCFD Risk Management B

TCFD Risk Management C

Describe the board’s oversight of climate-related risks and opportunities.

Describe management’s role in assessing and managing climate-related risks and opportunities.

Describe the climate-related risks and opportunities the organization has identified over the short, medium and long-term.

Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.

Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, include a 2°C or lower scenario.

Describe the organization's processes for identifying and assessing climate-related risks.

Section

Not applicable as Hazelview is a private company.

See the Sustainability Governance section for the individual responsible for oversight of climate-related risks and opportunities.

Sustainability Governance

Not disclosed

Not disclosed

Not disclosed

TCFD Metrics and Targets A

TCFD Metrics and Targets B

TCFD Metrics and Targets C

Resilience

Describe the organization's processes for managing climate-related risk. Resilience

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management.

Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Not disclosed

Not disclosed

Disclose scope 1, 2 and if appropriate, 3 GHG emissions and related risk. Resource Efficiency

Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

Not disclosed

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)1

SASB Reference Metric Section

SASB IF-RE-000.A Number of assets About Hazelview SASB IF-RE-000.B Leasable floor area (sf)

SASB Reference Metric Section

SASB IF-RE-130a.3 Like-for-like change in energy consumption

SASB IF-RE-130a.5 Description of energy management

SASB IF-RE-140a.1 Water withdrawal data coverage

SASB IF-RE-140a.2 Like for like change in water withdrawn

SASB IF-RE-140a.3 Change in water withdrawn

SASB IF-RE-140a.4 Description of water management

SASB IF-RE-450a.2 Description of climate change risk exposure analysis

% change in like for like energy consumption (2023 vs 2022)

Office: Mid-Rise No like-for-like data

Family Homes

Multifamily: High-Rise

Multifamily: Low-Rise

Multifamily: Mid-Rise

Resource Efficiency

Resource Efficiency

% change in like for like water consumption (2023 vs 2022)

Mid-Rise No like-for-like data

Resource Efficiency

Resource Efficiency

Resilience

Hazelview Investments

Toronto 1133 Yonge Street, 4th Floor

Toronto, ON

Canada M4T 2Y7

1.888.949.8439

info@hazelview.com

New York

535 Fifth Avenue, 4th Floor New York, NY United States 10017

1.888.949.8439 usinfo@hazelview.com

Hamburg

Hohe Bleichen 8, 6th Floor 20354 Hamburg Germany

49.40.55.55.36-0 hamburginfo@hazelview.com

Hong Kong

19/F, KONNECT, 303 Jaffe Road Wan Chai, HK +852.2973.1221 hkinfo@hazelview.com

Hazelview Properties

Head Office 1133 Yonge Street, 2nd Floor

Toronto, ON M4T 2Y7

1-866-898-8868