Safe Harbor Sustainability 2022 Report

2022 REPORT

INTRODUCTION

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2 | P L A C E S & S T E WA R D S H I P

INTRODUCTION Learn more about the vision and motivation behind Safe Harbor Sustainability and our strategic priorities.

CHAPTER 1

A corporate sustainability program, even if informed by external benchmarks, should emanate from the intrinsic values of our people.

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Safe Harbor Sustainability

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CHAPTER 2

Places & Stewardship Learn about our efforts to reduce our emissions footprint over time, understand and manage climate-related risk, care for coastal and marine habitats at or near our operations, and more.

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CHAPTER 3

People & Communities Our Teammates hail from a wide range of backgrounds, experiences, cultures and areas of expertise. Learn about the ways we care for each other and our communities.

CHAPTER 4

What's Next Looking ahead, we aim to approach sustainability with intentionality, innovation and an eye toward continued improvement.

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INTRODUCTION

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experience, opinions, thoughts and ideas. This diversity is undergirded and unified by a common character trait of our Teammates: they persevere with excellence in the face of difficult obstacles. The collective impact of this is outstanding service of our Members. Our responsibility, and our great joy, is to foster and enkindle both our Teammates and Members toward their long-term flourishing.

A LETTER FROM OUR CEO

Similarly, we delight in stewardship of our places. Safe Harbor is the happy custodian of more than 130 waterfront properties throughout North America and the Caribbean. We are always innovating in favor of the health of these precious resources. It is not a burden put on us by any outside force We are in the process of building but is an intrinsic enterprise within us. something beautiful and we desire

The pages you are about to read describe some of the intentions and ambitions that flow through Safe Harbor. We are in the process of building something for future generations to be proud beautiful and we desire for future In your review of this report, you will of both our efforts and our impact. generations to be proud of both learn some of the ways that we are our efforts and our impact. We caring for our people and places. We pursue this outcome through believe that doing so will yield the best an unwavering commitment to, and rigorous possible results for our shareholders over time. We will never service of, two key constituents: people and places. be satisfied or finished with this worthy endeavor, and we invite you to join us on the journey.

First, a word about our people. Safe Harbor is made up of around 4,000 Teammates who serve 48,000 boating BAXTER UNDERWOOD CHIEF EXECUTIVE OFFICER families, or Members. This is how we think about our Teammates: they both earn and retain the right to lead in our organization through service of each other and service of our Members. We hire and promote based upon the character of people and not based upon their resumé or their DNA. Our work environment is characterized by an open diversity of

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“

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Safe Harbor is the happy custodian of more than 130 waterfront properties throughout North America and the Caribbean. We are always innovating in favor of the health of these precious resources. It is not a burden put on us by any outside force but is an intrinsic enterprise within us.

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INTRODUCTION

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safe harbor sustainability report 6

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A clear and coherent strategy for how and why Safe Harbor aims to make a positive impact on our people and places is what sets us apart.

ABOUT THIS REPORT

The pillars of “Safe Harbor Sustainability,” (referenced herein as “Framework”), were developed using data collected from business leadership and three primary stakeholder groups: 1.

Environmental nonprofit organizations (specializing in coastal, marine and estuary environments)

2. Teammates 3. Members

We also surveyed industry best practices, as well as publicly available information from voluntary sustainability reporting frameworks and ESG ratings agencies.

This report details our progress from January 1 through December 31, 2022. To view specific goals and progress, please see our 2022 ESG Performance Index here.

Additionally, information contained in this report is specific to Safe Harbor’s material priorities. To view the Sun consolidated ESG report, which includes information on portfolio-wide materiality, please click here.

Future Safe Harbor may include restatements of information as set forth in the Global Reporting Initiative’s (GRI) Universal Standards (“Standards”). This report was produced with reference to the Standards.

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INTRODUCTION

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1 | S A F E H A R B O R S U S TA I N A B I L I T Y

2 | P L A C E S & S T E WA R D S H I P

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Climate risk management & resilience

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Habitat enhancement & restoration

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Renewables & electrification

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Environmental compliance

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Teammate well-being

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Workplace health & safety

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Member services

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Sustainability governance

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Information security

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Marine industry leadership

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1 | S A F E H A R B O R S U S TA I N A B I L I T Y

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Safe Harbor Marinas LLC (“Safe Harbor”) is an expansive recreational boating network providing top-quality marine services and premium events and experiences for our Membership.

Through our services, hospitality and amenities, we aim to facilitate lifetime boating experiences that connect people to each other and to the magnificent natural environment in which we operate.

Company Name

Safe Harbor Marinas, LLC

Headquarters

Dallas, Texas, United States

Description

Safe Harbor Marinas, LLC is a wholly-owned subsidiary of Sun Communities, Inc. (NYSE: SUI) ("Sun"). Our network consists of over 134 marinas across the United States and Puerto Rico1, where we serve nearly 48,000 Members.

Main Products & Services

We provide premium services, amenities, and hospitality experiences to our Members, including but not limited to slip and dry stack rentals, mechanical repair, and other technical services to nautical vessels of various sizes.

Financial Reports

Safe Harbor’s financial reports are consolidated with Sun’s financial filings, which are publicly available here.

Reporting Contacts

For inquiries about Safe Harbor Sustainability, please email cajax@shmarinas.com. For Sun Communities or investor inquiries, please email sustainability@suncommunities.com.

Total number of properties owned and operated at the time of reporting.

1

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AS OF DECEMBER 31, 2022

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$789 8.5 3M ANNUAL REVENUE 2 , 6 2 5 N O N - S E A S O N A L T E A M M AT E S

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S TAT E S + P U E R TO R I CO

PROPERTIES 13

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Safe Harbor Rybovich

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“ Our journey is just beginning, but I am so proud of all we have done in just under two years.

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CAITLIN AJAX VICE PRESIDENT OF ESG

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f all responsibilities that fall within my role, I think authentic, meaningful engagement with my colleagues at Safe Harbor is one of the most important.

A corporate sustainability program, even if informed by external benchmarks, should emanate from the intrinsic values of our people – my job is to harness that energy.

What ideas do our Teammates have for environmental stewardship? What is their vision for our properties, and how does that vision overlap with Safe Harbor’s global sustainability commitments?

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This report showcases some of the ways our Teammates contributed to environmental stewardship even before our program launched – so in many ways, the motivation for a cleaner, sustainable future was at Safe Harbor before my time. That said, I am thrilled that so many Teammates have stepped up to be involved in our new corporate initiatives, like the Coastal Habitat Restoration Program ("CHRP") and our sustainability-related working groups.

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sustainability challenge in our industry has a clear-cut solution.

At each juncture, however, we are rising to the challenge and asking first, ‘what is the right thing to do,’ and second, ‘what is the right solution to the problem?’

Our journey is just beginning, but I am so proud of all we have done in just under two years.

Nevertheless, we are not shy about the challenges ahead.

The regulatory landscape is changing quickly, and not every 17

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OF SAFE HARBOR MARINAS

OF SAFE HARBOR MARINAS

CLEAN MARINA CERTIFIED IN 2022

RETROFITTED WITH LED LIGHTING

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REDUCTION IN ELECTRICITY

used in the third and fourth quarters of 2022 as part of the Green Summer Initiative

GIVEN IN SCHOLARSHIPS & SPONSORSHIPS

to marine trade programs across the United States1

SITE ASSESSMENTS

to kickstart the Rhode Island Pilot of our Coastal Habitat Restoration Program

3 . 74 G W/ Y E A R R O O F T O P S O L A R I N S TA L L AT I O N

at Safe Harbor Lauderdale Marine Center

C O M PA N Y- W I D E M A N A G E M E N T T R A I N I N G S

on sustainability

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INTRODUCTION

1 | S A F E H A R B O R S U S TA I N A B I L I T Y

2 | P L A C E S & S T E WA R D S H I P

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P R I O R I T I E S & E N G AG E M E N T

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Ongoing materiality assessments are conducted at the enterprise and business unit levels of our parent company, Sun. Consistent with Sun’s approach, Safe Harbor conducts its own ongoing materiality assessments to identify sustainability topics that are important to key stakeholders. Consideration is given to each topic regarding the potential impact on our business, whether direct or indirect, through our engagement with stakeholders.

Currently, our top material topics are: •

Coastal & marine ecosystem conservation

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Environmental compliance

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Teammate well-being

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Member service

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Health & safety

We take advantage of opportunities to engage stakeholders – including Teammates, Members, regulators, and local communities – as they arise in the course of developing our sustainability programming.

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2022 Engagement Efforts Meetings of our ESG Council to discuss program updates, evaluate strategic priorities, and educate on timely ESG-related issues affecting the business

Meetings of our Coastal and Marine Stewardship Working Group

Virtual sustainability trainings for managers throughout our operations

Teammate Engagement Survey aimed at identifying and prioritizing issues of importance to Safe Harbor Teammates

Meeting of our Coastal Conservation Advisory Board ("CCAB") to review progress on Coastal Habitat Restoration Program ("CHRP")

Meeting of our Working Group for Teammate Well-Being

Additionally, we communicate with Teammates about ongoing sustainability programming and achievements through several internal communications platforms, including The Bridge, internal newsletters, and communications from leadership.

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INTRODUCTION

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We aim to lead by example when it comes to caring for the natural

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environment in which we operate. In this section, you will learn about our efforts to reduce our overall emissions footprint over time, manage and adapt to climate-related risks, reduce electricity consumption, and invest in renewable energy and electrification.

You will also learn about our approach to enhancing coastal and marine habitats at or near our operations, as well as some of our Teammates who embody an exceptional stewardship ethic in their day-to-day roles at Safe Harbor.

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INTRODUCTION

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O U R C L I M AT E S TO RY

Decarbonization: Charting a Course Today, every business must consider climate mitigation and adaptation as part of its strategy for operating in the 21st century. In 2022, our parent company, Sun, committed to achieving:

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Carbon neutral by

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2045

Net zero emissions by

We plan to contribute to these goals through various actions that align with our Framework, including investments in energy efficiency measures, zero emission technology and renewable energy projects where feasible.

For more detail on Sun's overall Greenhouse Gas ("GHG") Inventory and long-term approach to achieving its carbon neutrality and Net Zero goals, which is inclusive of Safe Harbor, please see the Sun report here.

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49,987 3,068 719

T O N N E S C O 2 E Q U I VA L E N T

purchased & used electricity emissions

T O N N E S C O 2 E Q U I VA L E N T

heating emissions

T O N N E S C O 2 E Q U I VA L E N T

water use emissions

2022 Emissions Overview

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INTRODUCTION

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As the world's largest owner & operator of marina properties, we cannot ignore the physical risks to our people and places posed by climate change.

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Climate Risk & Resilience

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We cannot ignore the physical risks to our people and places posed by climate change. Those risks hit home in 2022 as Hurricane Ian devastated the west coast of Florida, severely damaging properties and communities, and disrupting the lives of our Teammates in the Southeast.

Safe Harbor is working toward alignment with the Recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD"). Like our parent company Sun, we use TCFD to organize our response to climate impacts and to ensure appropriate management and consideration of a broad range of climate-related risks and opportunities.

Also, the TCFD disclosure process helps us identify areas of climate risk management that require further improvement.

For more information on how Safe Harbor aligns to the TCFD, please contact cajax@shmarinas.com.

Second, we regularly invest in construction and repair of critical infrastructure at our properties, including docks, seawalls, bulkheads, and stormwater management systems as needed. In 2022, we invested in:

13 9 Bulkhead & seawall replacements

Docks upgraded from fixed to floating

But that is only part of the story. In late 2022, we set out to develop a formal climate risk management and resilience strategy for our business.

2 0 2 3 G O A L : Complete GIS mapping of physical climate risks & develop preliminary resilience plan for three pilot marinas.

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Floating dock construction at Safe Harbor Sportsman

In 2023 we aim to:

This process will provide:

U N D E R S TA N D

A C C U R AT E I N F O R M AT I O N

Our exposure to physical climate risks like flooding and sea level rise

About existing and potential exposure to physical climaterelated risk

A N A LY Z E The long-term threats to our properties using globallyrecognized climate scenarios

I N F O R M E D A N A LY S I S

IDENTIFY

IDEAS & OPPORTUNITIES

Marina-specific sensitivity factors that contribute to increased exposure

To address risks related to the to resilience and the transition to a low carbon economy

About where capital allocations for new resilience-related projects, upgrades and retrofits are most urgently needed

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The environmental focus of our framework is characterized in large part by a commitment to improving coastal and marine habitats at or near our operations.

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ENHANCING MARINE & C OA S TA L H A B I TAT S As the world moves toward a better understanding of the link between nature and financial stability, we have committed to reducing our impact on a key stakeholder — the environment.

In 2022, we made significant strides toward developing our approach to stewarding the environments in which we operate. We hired an expert technical team of Foth Infrastructure and Environment, Horsley Witten Group and RPS Group to help design and implement a scalable Coastal Habitat Restoration Program ("CHRP"), beginning with a pilot program in Rhode Island.

This program involves: •

Categorizing our marinas based on operational characteristics and potential for habitat enhancement projects.

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Developing a list of potential projects, ranging from green stormwater infrastructure to “living” breakwaters, that can be matched with our marinas based on above categorizations.

•

Choosing appropriate Key Performance Indicators ("KPIs") to measure the success of each project over time.

We are thrilled to report that the CHRP pilot is off to a strong start.

By the end of 2022, the Safe Harbor and Foth teams conducted four internal stakeholder meetings, 16 property visits, and reviewed specific project proposals for select properties in the Rhode Island pilot program. We also held one meeting of our Coastal Conservation Advisory Board (“CCAB”), consisting of industry and nonprofit representatives, and solicited feedback on preliminary project proposals and overall progress.

We expect the pilot program will culminate in distinct projects at 3-4 properties that will enhance natural habitat at the marinas and in the surrounding environment.

A strong conservation ethic is not new for many of our Teammates, however. Many of our General Managers are involved in local environmental partnerships and projects that predate acquisition

by Safe Harbor.

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STEVE ROWE GM OF SAFE HARBOR GREAT ISLAND

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he Gulf of Maine, home to five Safe Harbor properties, is one of the fastest-warming bodies of water on Earth, endangering both marine environments and the local communities that depend on them for fishing, lobstering, tourism and recreation.

It comes as no surprise, then, that Steve Rowe, General Manager of Safe Harbor Great Island is constantly thinking

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about how our company can better manage its environmental impacts.

“I have always personally had an interest in environmental issues,” he said. “As we get bigger and have a larger footprint on the water, we need to push the envelope on environmental controls.”

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Safe Harbor Great Island sits within the Quahog Bay, one of the many inlets off of the much larger Gulf of Maine. But Steve is not just concerned about the threats to marine biodiversity.

Sustainability is very much about the local community too.

Steve’s marina is one of the biggest employers in the town of Harpswell, Maine.

“ We need to be able to reassure the local community that as Safe Harbor expands, we are doing so in a way that is beneficial to the environment.

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“We need to be able to reassure the local community that as Safe Harbor expands, we are doing so in a way that is beneficial for the environment,” he said. “I want to tell people that the (Quahog) Bay will getter better, cleaner as we get bigger and provide more jobs. Engagement of Members and local communities is critical.”

To that end, Steve serves on the Board of Directors for the Quahog Bay Conservancy, a local nonprofit focusing on water quality, aquaculture, marine trash cleanups, and invasive species management. The relationship began years ago when Steve’s marina began hosting fundraisers for the Conservancy, connecting boaters to the important work the Conservancy was doing in Quahog Bay.

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One could say that Steve’s inclination toward environmental concerns is natural given his background. After nearly fifteen years managing air quality controls and running the Environmental Services Division of General Electric, Steve and his family took a chance at a new beginning.

“My wife and I looked at ski areas, vineyards, and boatyards – we wanted to return to an entrepreneurial lifestyle and to run our own services business,” he said. “We found Great Island Boat Yard in 2005, bought it, packed our bags and left Kansas City for Maine!”

Steve is enthusiastic about Safe Harbor’s sustainability focus, especially as other industry-wide environmental standards have fallen short.

“There used to be a really strong Maine Clean Marina program and the Division of Environmental Protection would do inspections with the marine trades association, but that program fell apart,” he said. “So environmental best practices were left up to each individual marina, which was less than ideal.”

Given his background, Steve understands the challenges that lie ahead.

“As a large network of marinas, there will be challenges in setting standards for sustainability because Safe Harbor consists of what were, until recently, many smaller businesses, often without the resources to make a large impact,” he said.

“But given our corporate commitments to sustainability, I am very optimistic about what we can do in the near future.”

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Safe Harbor Great Island

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INTRODUCTION

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P OW E R I N G O U R N E T WO R K Energy Overview Global events of 2022 highlighted the urgent need to reduce energy consumption and make key investments in energy efficiency measures and clean energy alternatives.

The section includes several examples of our progress in these areas.

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Total electricity consumption in 2022

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Total water consumption in 2022

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Green Summer Initiative In response to the soaring costs of global energy prices, our team set ambitious goals to reduce electricity usage and cut utility costs in the latter half of 2022.

First, our Operations leaders coordinated with General Managers to communicate goals and expectations to Teammates and Members at our properties and to crowdsource ideas on how to cut consumption and improve efficiency. We circulated “pro tips” to Teammates, which included such measures as turning off lights when not in use, switching computers to “sleep” mode, and changing thermostat settings. Members were also encouraged to reduce electricity usage on their vessels.

Our targets included a 5% reduction in July followed by a 10% month-tomonth reduction for August through December 2022. Through this initiative, we exceeded those targets and achieved 10.8% overall reduction in electricity use in the last two quarters of 2022.

Solar Our biggest opportunities for on-site generation lie with our large upland storage buildings. We are nearing completion of the 3.74 GW per year, 200,000 square foot rooftop solar installation at Lauderdale Marine Center (LMC) in Florida – the power generated by the panels accounts for approximately 24% of LMC’s overall energy needs.

Additionally, in late 2022, Safe Harbor engaged outside firms to analyze our properties for scalable solar opportunities based on original building construction, utility costs, available rebates and state incentives programs.

As we move forward, our aim is to initiate more projects at qualified properties based on the data from these site assessments, especially at larger service properties that require more energy to operate.

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Electrification We have seen rising demand for electric vehicle ("EV") charging infrastructure at many properties in our network. Given the upfront costs, discrepancies in demand, and variable incentives available across the United States, scaling this infrastructure presents strategic challenges. We will continue to engage with vendors to determine the feasibility of installing EV chargers in select locations.

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Our electrification efforts are not limited to EVs, however. We are at the forefront of piloting all-electric heavy equipment and vessels where feasible. The following are a few examples of larger investments made in 2021-22:

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In the future, our team will consider bulk product purchases based on proven performance, cost, and scalability.

X Shore 100% electric courtesy vessels at select properties

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Moke 100% electric courtesy vehicles at select properties

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100% electric fork truck (Wiggins Marina eBull)

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Excellent environmental compliance practices are essential to our long-term vision for sustainability at Safe Harbor Marinas.

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Excellent environmental compliance practices are essential to our long-term vision for sustainability at Safe Harbor Marinas.

Our business is subject to a variety of environmental laws and regulations, including the Clean Water Act and associated stormwater regulations. Among other things, each marina has a proper Stormwater Pollution Prevention Plan ("SWPPP") and Spill Prevention Control and Countermeasure Plan ("SPCC") in place, where applicable.

Our policy is that Teammates and Members properly manage used oil, antifreeze, off-spec fuel and other universal waste, in addition to black and gray water. We take care to manage materials that are abandoned on-site, such as unidentified aerosols, by identifying, testing (if needed), and following proper procedures for disposal.

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Clean Marina Certification Over the last two years, we have made consistent progress toward network-wide Clean Marina certification.

Currently, properties may choose between pursuing certification through the Association of Marine Industries’ ("AMI") Clean and Resilient Marina program, the equivalent state Clean Marina program if available, or both. Our Environment, Health and Safety ("EHS") Department leaders are trained and certified as “Clean and Resilient Marina” professionals, and as such, authorized to conduct certification audits.

The AMI Clean Marina checklist requirements are rigorous and exceed basic compliance standards. Checklist items include habitat restoration and conservation measures, use of “environmentally-neutral” materials, “green” stormwater management, and nature-based landscaping. Beginning in 2023, new acquisitions will be required to implement all Clean and Resilient Marina Best Management Practices ("BMPs").

2 0 2 3 G O A L : 100% properties Clean Marina certified through AMI or equivalent state program.

60%

OF SAFE HARBOR MARINAS ARE CLEAN MARINA CERTIFIED IN 20224

100% DECEMBER 31, 2023 GOAL

Data is current as of our July 2022 operational sustainability survey

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Waste Management The nature of our business includes handling and disposal of various waste types, including gas, diesel fuel, used oil, black water and hazardous waste. We have internal policies and procedures to properly manage these wastes in compliance with applicable laws and regulations.

Waste management is an area in which we aim to improve.

Late last year, we engaged Engie Impact to assist with waste characterization audits and developing a waste baseline. This service will allow us to (i) better understand our various waste streams and collect baseline operational waste estimates, and (ii) develop a strategy to increase waste diversion practices throughout our business.

We have internal policies and procedures to properly manage various waste types in compliance with applicable laws and regulations.

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2022

When it comes to preparing for hazardous weather events like Hurricane Ian, our people always come first. In late 2022, our preparedness efforts for Ian involved notifying Members and shutting down operations in advance of landfall. This and other actions gave our Teammates the necessary time to make personal preparations for the storm.

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Our Preparation

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With regard to our properties, more preparation lessens the overall impact. To that end, we maintain a Hazardous Weather Plan (“Plan”) that details management practices to prepare individual properties for severe storms.

Pursuant to the Plan, key Safe Harbor personnel held daily calls with Operations leaders in affected regions and provided regular briefings on changing weather conditions and preparation measures in the days and hours leading up to Ian making landfall. Priority actions included removal of vessels from critical areas. Our team was also diligent about shutting off electricity and water, draining fuel lines where they passed over water, as well as securing Hazardous Materials Management (HAZMAT) containers.

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The Aftermath In the immediate aftermath, many Safe Harbor Teammates gathered in Fort Myers, Florida to assess damage and mitigate further hardship.

Having engaged remediation contractors and vessel salvage services prior to the storm, we were able to start clearing flooded structures of wreckage and raise sunken vessels almost immediately. Within just a few days, all seven affected Safe Harbor properties were deemed safe and reopened to the public.

Additionally, the crew of Safe Harbor Pineland on hard-hit Pine Island teamed up with emergency management officials and the US Coast Guard to ferry residents off of the island using the marina’s water taxi fleet, a process which lasted well into the following week.

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Hurricane recovery cannot proceed with boats strewn on land and throughout navigable waterways. Moreover, damaged vessels that remain in water present significant environmental hazards and business risks.

To help solve this problem, we converted a 7-acre leased property into a temporary vessel triage center near downtown Fort Myers, aptly named “Port Phoenix.” Prior to bringing salvaged vessels on site, our team swiftly developed and implemented appropriate environmental, safety and compliance plans. Other preparation included bringing in storage tanks for contaminated bilge water, pumps to drain fuel from vessels, HAZMAT containers and spill supplies, as well as constructing a basin for bottom washing.

At the time of publishing this report, Safe Harbor Port Phoenix continues to provide a location for hurricane-damaged vessels to be hauled out, stored and repaired, leveraging our team’s industry-leading knowledge in marine services and creating multiple jobs in the process.

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A

s General Manager of a property that sits on the edge of a large threatened ecosystem, Jaret Rogers knows firsthand the destructive effects of poor environmental stewardship… and extreme weather.

Safe Harbor Burnt Store was heavily damaged by high winds and storm surge from Hurricane Ian, which devastated large portions of Florida’s west coast in late September 2022. Among other things, Jaret’s property suffered losses that included the destruction of docks, seawalls and numerous vessels.

“There was so much debris that you couldn’t even reach with heavy equipment,” he said. “There were also parts of houses and cars that were leaking oil and gas slowly into the bay. Each day we took our workboats out to collect debris that was floating, but the tide would just come back in and there would be so much more.”

JARET ROGERS GM OF SAFE HARBOR BURNT STORE

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2 | P L A C E S & S T E WA R D S H I P

Gulf of Mexico

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Unfortunately, marine debris was just the beginning.

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“Storm surge brings a lot of nastiness from onshore and moves it offshore. It is possible that we will see some bad red tides and massive fish kills as a result.”

Jaret is all too familiar with the problems that red tides create for the marina and surrounding community.

“In the past, the local residential community around our marina was not really aware of the water quality issues affecting the marine environment next to us,” he said. “But about four years ago, red tide actually made it to our marina, and the fish kill was very visible. When residents’ front porches smelled like dead fish, that’s when the locals really understood the impact. We literally spent thousands of dollars scooping up dead fish.”

Charlotte Harbor Estuary

SAFE HARBOR BURNT STORE

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4 | W H AT ' S N E X T

FRAMEWORKS

“ Hurricane Ian may have exacerbated certain environmental hazards, but raising awareness about environmental impacts is not new for Jaret and his team.

Safe Harbor Burnt Store sits within the Charlotte Harbor estuary, an approximately 270 square mile bay on the west coast of Florida fed by the Caloosahatchee River, among others. Jaret explained that pesticides and fertilizers used in agriculture end up in the river, which filter into the bay before entering the Gulf of Mexico. The excess nitrogen creates serious water quality issues, including red tides.

I think our role is to raise awareness, because that is key. The health of the natural environment is about our future – my son's future.

” among Members and neighbors. In 2022, his team hosted an Earth Day party, complete with metal straws, leaf-based confetti, and recycled paper tablecloths.

Safe Harbor Burnt Store also hosts an annual meeting for Members and local residents to learn about local water quality issues and has nine 96-gallon recycling totes at strategic locations across the marina with signage encouraging Members to recycle.

“My concern is, first and foremost, for Mother Nature,” he said. “Our water and fisheries are unhealthy and dying, and sometimes it seems that no one really cares.”

“I pick up plastic grocery bags around our marina every day,” he said. “We do the best we can.”

Jaret and his team have made several efforts to raise awareness

The marina is also home to several artificial reefs and reef balls below

the seawall and under two of the docks, though Jaret is not sure whether they moved during Hurricane Ian. When asked about important lessons for Safe Harbor in the wake of Ian, Jaret thought for a moment.

“These storms are only getting worse, so the more we can do to prepare, the better,” he said. “We are making some important changes like replacing wood and fiberglass pilings with steel.”

Jaret is also optimistic that Safe Harbor, with its large footprint, can have a positive impact on the environment going forward.

“I think our role is to raise awareness, because that is key,” he said. “The health of the natural environment is about our future – my son’s future.”

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1 | S A F E H A R B O R S U S TA I N A B I L I T Y

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INTRODUCTION

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JAMES PHYFE CHIEF RESOURCE OFFICER

2 | P L A C E S & S T E WA R D S H I P

3 | PEOPLE & COMMUNITIES

4 | W H AT ' S N E X T

FRAMEWORKS

S

afe Harbor has developed a unique culture in a short period of time. Because we have grown tremendously with acquisitions over the past seven years, it is not always easy to assimilate new faces so they feel immediately valued and respected. ‘One Safe Harbor’ is our company’s approach to welcoming new Teammates into the company by sharing both the excitement of what we set out to achieve and the magnitude of the work in front of us.

Everyone who joins Safe Harbor knows that we derive great pleasure from our accomplishments. We want our people to share that enthusiasm, and we are not afraid to celebrate our successes with them. That builds a culture of motivation that constantly challenges us to outperform our previous achievements. And that is addictive.

In our efforts to continuously improve, we launched a Teammate engagement survey in 2022 to measure how well we are spreading this enthusiasm through the company. Designed in a way that will allow repetition over Everyone who joins Safe Harbor knows time, this survey should not that we derive great pleasure from our only provide a window into accomplishments. We want our people to engagement today but also share that enthusiasm, and we are not afraid into changes we can make in to celebrate our successes with them. the future.

“

”

At Safe Harbor we believe we are doing something truly transformational and we hope everyone will share in that excitement.”

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AS OF 12.31.22

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Teammate Age2

FRAMEWORKS

Teammate Demographics3 W H I T E : 2,103 Teammates

H I S P A N I C : 359 Teammates

B L A C K : 161 Teammates

A S I A N : 30 Teammates

I N D I G E N O U S : 22 Teammates

71% MEN

1,951 Teammates

25%

4%

WOMEN

UNDISCLOSED

672 Teammates

Number of Teammates that chose to disclose veteran status.

Inclusive of seasonal and non-seasonal Teammates.

109 Teammates

T WO + R AC E S : 26 Teammates

U N D I S C LO S E D : 31 Teammates

1

2, 3

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T E A M M AT E S Strength in Diversity

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At Safe Harbor, we seek the best for every Teammate we serve.

That means we hire, train and invest into individuals whose values and character add to our culture of high intensity, high reward, and genuine care for one another. We welcome ALL without bias toward race, religion, age, national origin, veteran status, sexual orientation, or any other categorization.

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We believe that we are able to fulfill our unique company mission because our Teammates reflect diversity of thought, background, and experience.

Our Teammates earn and retain their roles through their demonstrated desire and ability to serve one another and our Members with excellence. Once we have made an employment offer to a Teammate, we commit to training and developing that person with the aim of being party to their vocational and personal flourishing.

In sum, our differences allow us to meet today’s business challenges through innovation born of constructive dialogue between Teammates with varied experiences and skill sets, but a common objective to build something special in the world for our Members and for each other.

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H

iring and retaining Teammates with strong character is a top priority for Safe Harbor. Strong character is, among other things, the ability to put others first, particularly in times of great adversity.

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Nowhere is this better exemplified than by our Teammates in Arkansas who, in the wake of tragedy, have found hope and offered it to others.

Several Teammates from Safe Harbor Brady Mountain (AR) recently founded ‘Braydon House1,’ a foundation external and independent of Safe Harbor to honor the life and legacy of Braydon Anderson, a son, brother, friend, mentor and Safe Harbor Teammate.

The Braydon House mission is to provide a safe haven to inspire, mentor and empower individuals to achieve lifelong success. Specifically, the organization aims to provide stability, mentorship, scholarships and other resources to enable people to achieve prosperous careers.

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“As a young man, Braydon would take everyone under his wing,” said Steven Anderson, Braydon’s father and General Manager of Safe Harbor Brady Mountain. “My wife and I often say that we would ‘bring home the strays.’ These were often young men who did not have friends or stable home lives. Braydon would bring them home to us. It was just the person he was.”

Braydon tragically passed away in 2021 at age 19.

Braydon & Steven Anderson

Braydon House is an unaffiliated 501(c)(3) charity organization.

1

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“Some parents say that things get harder when your kid becomes a teenager, but that just wasn’t what it was like for Braydon and me,” said Steven. “He already knew what it meant to respect others.”

In 2022, the Braydon House team organized the First Annual Braydon House Golf Tournament to support Braydon House. The event raised $21,000 with 22 sponsors and 22 players. The Tournament, which will be held annually, is the first step in a much bigger plan to raise funds for Braydon House.

“

“Steven and I have worked together as GMs for years,” said Sean McNamara, Regional Vice opportunities at the marina and President for the Southwest Region. “Some of the help young people build careers in guys on Steven’s team have had hard home lives marine services if they want to. and were given a chance to prove themselves and grow into fine young men. They are just naturally doing it without trying up there at the marina – they are natural mentors with great attitudes and kindness.”

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... we want to provide employment

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”

“Right after it happened, Sean called me and said, ‘I want to do this,’” said Steven.

“We don’t do things like this because it looks good for us – we do it because it’s the right thing to do.”

“Eventually, we hope to fund an actual brick and mortar house in honor of Braydon for young adults who need a safe haven,” said Sean. “We haven’t worked out all the details yet, but we want to provide employment opportunities at the marina and

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Participants of the first annual Braydon House Golf Tournament

help young people build careers in marine services if they want to. Through Braydon House, we could also provide scholarships if they have other interests.”

But Steven’s first priority is giving back to those that were there for his family in their darkest moments.

“We are currently working with the intensive care nurses that cared for Braydon in the hospital. They were so good to us,” said Steven. “We want to provide the first Braydon House scholarships to their kids, or for them personally if they want to pursue additional education.”

Braydon House presented the first $6,000 in scholarships in December 2022.

While the loss is still felt profoundly by Braydon’s family and the entire team at Safe Harbor Brady Mountain, Steven says that the creation of Braydon House offers hope.

“It will never get easier to talk about. But when someone else recognizes that what we’re doing is the right thing for young people in need, that makes all the difference.”

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Serving Our People As our business grows, we want to ensure that every Teammate has the opportunity to thrive at Safe Harbor.

This year, we conducted our first ever Teammate engagement survey to assess the state of employee well-being at our company and identify areas for improvement. Topics covered included job satisfaction, benefits, diversity and company culture. This data allows us to further refine our relationship with our greatest asset – our people – in a cycle of continuous improvement.

plan and match, eight-week paid parental leave, medical, dental, and vision insurance, as well as generous paid time off ("PTO") allowances for hourly and exempt (non-hourly) Teammates. As part of our commitment to Teammate growth, we also provide 30, 60, and 90- day performance reviews to new Teammates and annual performance reviews to all.

Moreover, we want to give all Teammates access to the training they need to grow and develop new skills in their respective roles within our company.

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Safe Harbor provides a comprehensive benefits package to full-time employees that includes a 401(k) retirement

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We believe that we are able to fulfill our unique company mission because our Teammates reflect diversity of thought, background, and experience.

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2022 Online Training Hours 4,955.31 IT

T O TA L O N L I N E TRAINING HOURS HR

1,472

CPR

ABYC1

Marina Manager 0

300

600

900

T E A M M AT E S PA R T I C I PAT I N G IN TRAINING

19 1 ,1 0 0

1,300

1,600

TRAINING COURSES

Training & Professional Development Safe Harbor’s training and professional development program underwent a major overhaul in 2022.

We began by surveying Teammates on training needs and preferences. Based in part on that data, we rolled out a comprehensive Monthly Training Calendar that shifted training programs onto a centralized, accessible platform for all Teammates. This new approach facilitates better data collection and visibility, allowing us to expand on training topics and address gaps in our offerings as needed.

In 2022, we also launched The Bridge, a web-based tool developed to consolidate all company systems and resources in one place. In addition to providing quick access to all

platforms used in our operations, The Bridge includes a training database and video library, as well as online forms for direct Teammate feedback. This resource allows us to work smarter and onboard new Teammates more easily by removing inefficiencies.

2 0 2 3 G O A L : Develop holistic General Manager training.

1 The American Boat and Yacht Council ("ABYC") offers training on various aspects of marine service.

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Investing in Marine Technicians One of our biggest business risks is the industry-wide shortage of skilled marine technicians. Through our relationships with several top marine trade schools throughout the country, we aim to be part of the solution by reducing barriers to entry into the industry.

Students in these programs learn skills such as advanced composite manufacturing, digital modeling, and marine systems. Students from IYRS, for example, also have the opportunity to participate in a month-long externship at one of our nearby properties.

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Recipients of the 2022 Safe Harbor IYRS scholarship, Brianna Horne (left) and John Volpe (right).

In addition to scholarships, we offer mentorship from some of the best technicians in the business and a career path for motivated students interested in entering the field and launching their career with us.

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2022 Safe Harbor Scholarship Contributions

10K

$

10K

$

10K

$

10K

$

IYRS SCHOOL OF TECHNOLOGY & TRADES

THE LANDING SCHOOL

G R E AT L A K E S B O AT B U I L D I N G S C H O O L

MARINE MECHANICS INSTITUTE

Newport, RI

Arundel, ME

Cedarville, MI

Orlando, FL

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FRAMEWORKS

Creating Local Jobs Safe Harbor’s vast national footprint provides many economic opportunities for local communities. Our operations require a variety of skills, ranging from carpentry and rigging, to accounting and marketing services, among other things.

Additionally, as we acquire new properties, our normal practice is to integrate existing marina management and service teams. This approach helps our business maintain strong connections to the cities, towns and regions in which we operate.

2022 Local Hires

21

MANAGEMENT POSITIONS FILLED

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OSHA Incident Rates P E R 1 0 0 F U L L -T I M E T E A M M AT E S

10

9

8

7

6

2022

5

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66

3

2

1 2021 2022

0

Total Recordable Incident Rate

DART Rate

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WO R K P L AC E S A F E T Y Workplace safety at Safe Harbor is paramount because the nature of our business requires operation and handling of heavy equipment and hazardous materials, among other things.

Overview

What's New

A copy of our OSHA-compliant environment, health and safety (“EHS”) manual, also called the “Orange Book,” is located at every property in the network. We require all full-time, part-time, and seasonal employees, as well as Members, contractors, and third-party vendors servicing vessels on our properties, to comply with Orange Book guidelines at all times.

Our company saw several key EHS developments in 2022.

Beginning in 2022, all monthly EHS Coordinator trainings were advertised in general business communications, which increased visibility of safety trainings and reinforced baseline EHS expectations for all Teammates.

Leadership is notified immediately of any incidents or compliance issues as they arise. Every property in the Safe Harbor network has a designated EHS Coordinator that receives regular OSHA training.

Additionally, we maintain a formal EHS Committee that meets regularly to review current EHS practices and potential improvements.

We also launched the Regional Vice President ("RVP") “Safety Scorecard” system, which tracks environmental and safety performance at individual properties.

Performance indicators include things like hazardous waste inspections, use of proper personal protective equipment ("PPE"), training frequency and more. In addition to enhancing monthly EHS oversight for specific properties, the Scorecard system ensures that newly-acquired properties identify compliance gaps and remedy them quickly.

Lastly, we further developed our virtual EHS training library that includes recorded training sessions on a wide range of EHS topics.

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Safety Training

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We require job-specific safety trainings for Teammates where applicable. At present, our monthly EHS Coordinator trainings are offered in both English and Spanish, and we expect to offer more Spanish-language trainings by the end of 2023. Those trainings include: •

Monthly EHS Coordinator trainings

•

Marine Travelift Operator training

•

Forklift “train-the-trainer” program

•

OSHA 10 Certification Trainings

•

Shipyard Confident Person ("SCP") training (expected in 2023)

3 | PEOPLE & COMMUNITIES

4 | W H AT ' S N E X T

FRAMEWORKS

To ensure safety expectations are clearly conveyed, our properties are equipped with proper signage, illumination, and demarcation for vessel maintenance and repair.

Promoting Member Safety

Incident Response

All Safe Harbor EHS policies and procedures apply to Members servicing their own vessels on our properties in addition to Teammates. To ensure expectations are clearly conveyed, our properties are equipped with proper signage, illumination, and demarcation for vessel maintenance and repair.

While our goal is always to reduce or eliminate the number of injuries that happen at our operations, incidents occasionally do occur.

Ultimately, our General Managers are responsible for setting an example and enforcing EHS best practices at their individual marinas. Likewise, it is also the responsibility of our General Managers to address safety concerns with Members directly as they arise.

When this happens, marina or regional management is the first point of contact, followed by our Human Resources department. Incident reports are then forward to our Risk Management department through an online portal in our risk management platform, Origami Risk, and are shared immediately with leadership. For high-consequence workplace injuries, Safe Harbor investigates and conducts a “root cause” analysis, the results of which are also shared with leadership.

Lastly, in order to promote awareness and future prevention following an incident, we use a company-wide Safety Alert system to notify General Managers when a notable incident occurs.

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P

rior to interviewing for a new role as Finance and Accounting Manager at Safe Harbor, Carmen Gills was nervous.

However, upon seeing her resume – and the impressive list of leadership and community service roles on it – Chief Accounting Officer Meagan Thompson told her: “Yeah. I think you can do this.”

“That was nice to hear – it gave me confidence.” Carmen said.

“I’ve always been so involved and wanted to continue with that after joining Safe Harbor.”

2022

It did not take long for Carmen to make an impression and to earn greater responsibility. Today, she manages multiple properties on the international team.

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But it’s the extra responsibilities that Carmen takes on outside of work that make her stand out.

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CARMEN GILLS SENIOR FINANCE & ACCOUNTING MANAGER

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Carmen has served as Community Affairs Director for a local accounting organization where she has leveraged both her accounting and community leadership skills to improve the everyday lives of people in the greater Dallas community – and she is making a big impact.

In 2022, for example, her local chapter donated over 7,000 school supplies to families in need through the Drive Thru MLK Back to School Fair serving the South Dallas community. Her chapter also prepared over 2,360 meals that were donated and distributed to the homeless.

FRAMEWORKS

Carmen does not stop there. She also participates in a young girls’ college preparatory program through her active involvement with her sorority, coordinates tax service programs for elderly and low-middle income populations in the West Dallas area, and previously organized a donation drive for a local domestic violence shelter.

“

“All my life I have been a part of programs and organizations that helped shape I especially love the flexibility the individual I am today,” said and support that Safe Harbor Carmen. “I truly believe in the saying gives me to stay engaged and ‘it takes a village to raise a child.’ My give back to my community. ‘village’ taught me the value of giving back through my time and resources in order to positively impact the lives “I try to find unique areas where I can insert myself and of others. When I put the focus off of me and onto others, I fulfill my passion for service,” said Carmen. “And I think get a sense of joy and fulfillment that makes my daily life Safe Harbor goes beyond being supportive. I especially love more special.” the flexibility and support that Safe Harbor gives me to stay engaged and give back to my community.”

”

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S U S TA I N A B I L I T Y & THE MEMBER EXPERIENCE Sustainability is an integral part of the way we conceive of and shape Member experiences, amenities, and other offerings.

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FRAMEWORKS

X Shore Partnership As of December 2022, Safe Harbor owned and operated eight X Shore Eelex 8000 center-console vessels at the following locations: San Diego, CA

West Palm Beach, FL

Montauk, NY

Newport, RI

Charleston, SC

Multiple pop-up locations

These all-electric vessels facilitated premium Member excursions at three Member Experiences in 2022: SAFE HARBOR POLO CHAMPIONSHIP

West Palm Beach, FL

SAFE HARBOR RACE WEEKEND

Newport, RI

SAFE HARBOR WINE + FOOD

San Diego, CA

Sustainable brand partnerships & collaborations:

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H OW W E L E A D As a wholly-owned subsidiary of Sun Communities (“Sun”), Safe Harbor’s highest governing body is a three-person Executive Committee, which includes our CEO, Sun’s CEO and one member of Sun’s Board of Directors.

All executive-level Safe Harbor Teammates, including our CEO, are directly engaged in sustainability oversight by serving on Safe Harbor’s ESG Council (“Council”), the highest sustainability-related governance body at Safe Harbor.

Safe Harbor’s Vice President of ESG is charged with building out sustainability strategy, annual reporting, managing cross-departmental working groups and external consultants, engaging internal and external stakeholders, managing progress against goals, and providing regular semiannual updates to the Council.

Additionally, the Vice President of ESG is responsible for educating the Council on regulatory developments affecting our sustainability program and the business in general.

EXECUTIVE COMITTEE Safe Harbor's senior executive leadership

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Sustainability Governance Structure

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SAFE HARBOR CEO Baxter Underwood

ESG COUNCIL 17 executive & management Teammates representing Legal, Finance, Hospitality, Environment, Health & Safety, CapEx, and Risk Departments S A F E H A R B O R V P, E S G Caitlin Ajax

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FRAMEWORKS

ESG Council Our Parent Company

As a member of the Sun portfolio, Safe Harbor’s ESG data and annual highlights are also included in Sun’s portfolio-wide ESG report alongside other Sun subsidiaries. The Sun report can be found here.

While Sun and Safe Harbor collaborate on ESG data collection, Safe Harbor’s Framework is unique and tailored to address Safe Harbor’s material non-financial impacts and opportunities.

Our commitment to growing responsibly can only be realized if our sustainability-related efforts are not siloed within the company.

To that end, the Council consists of representatives from all major business units within Safe Harbor, bringing together the authority and expertise necessary to operationalize all programming and provide oversight; The Council also convenes semiannually for progress updates on Safe Harbor’s performance and to approve program or investment proposals submitted by the Vice President of ESG. In order to best fulfill these duties, Members of the Council maintain a direct and open line of communication with the Vice President of ESG at all times.

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Policies

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We expect the highest degree of professionalism from all Teammates, contractors, third parties and joint venture partners at Safe Harbor. To that end, all parties listed above must abide by our Code of Ethics and Business Conduct (“Code”), which includes all policies and guidelines necessary to ensure that our business operates in an ethical and compliant manner.

Our Code is comprehensive, and includes policies and procedures pertaining to the following: • Ethics reporting

• Conflicts of interest

• Non-retaliation

• Gifts & entertainment

• Diversity & non-discrimination • Anti-harassment

• Rules for working with government

• Workplace health & safety

• Information & asset protection

• Honest & fair dealing

• Anti-corruption & bribery

• Due diligence

• Anti-money laundering

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Information Security In the fast-changing world of information security and cybercrime, businesses face new threats almost daily. Our information security policies are in alignment with those of Sun and our team incorporates all Sarbanes-Oxley requirements in its policies and procedures. This includes requiring password protection, user access controls, termination of users, a “least privileged access” policy, and a review of user roles each year. Our policy is to maintain

a strong security posture at all times. To that end, we partner with cybersecurity experts to help us protect not just the perimeter, but every email received by Safe Harbor Teammates, and everything in between. Lastly, we maintain strict procedures for addressing data breaches if they occur.

We look forward to constantly improving our systems to keep pace with best practices.

We maintain strict procedures for addressing data breaches if they occur. We look forward to constantly improving our systems to keep pace with best practices.

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Toward Aligned Procurement Committees We depend on close relationships and resource-sharing between key departments within Safe Harbor to make good on our commitments. Key departments include but are not limited to Environment, Health and Safety ("EHS"), Risk, Training, Accounting and Operations.

• • • • •

ESG Council Enterprise Risk Management ("ERM") Committee Environment, Health & Safety ("EHS") Committee Coastal & Marine Stewardship Working Group Teammate Well-Being Working Group

Safe Harbor works with a vast network of suppliers and third-party contractors, including many small businesses.

Beginning in 2023, our goal is to work toward centralizing procurement data by identifying top suppliers and major product categories as a first step.

We recognize that providing information on environmental performance may be challenging for many small businesses we work with. As part of a long-term strategy, we aspire to develop programming to help small suppliers and service providers collect and disclose environmental performance data as needed.

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To that end, some Teammates, including the VP of ESG, serve on more than one of the following oversight committees simultaneously:

Integrating sustainable principles into our procurement approach is a critical step in ensuring we engage with vendors that meet operational needs and share our vision for a better future.

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Industry Leadership Our Teammates are among the most talented and experienced in the marine services industry.

Because of that expertise, we actively encourage our people to represent Safe Harbor in a variety of local, national and international forums. We are especially eager to be part of the evolving conversation on sustainability in marine services and adjacent industries.

Tax Oversight of tax obligations is the responsibility of senior Safe Harbor and Sun personnel, working jointly. Our Code provides processes for reporting known or suspected illegal or unethical behavior regarding tax or any other part of the business. Where applicable, we outsource tax compliance to qualified third parties. In Puerto Rico, an unincorporated United States territory with its own tax structure, we partner with local tax specialists to ensure compliance with local tax regimes.

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CAROLINA CORRAL RVP OF INTERNATIONAL SOUTH

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4 | W H AT ' S N E X T

G

rowing up on the Commonwealth of Puerto Rico, Carolina Corral understands the importance of caring for the natural environment in business and everyday life.

FRAMEWORKS

level rise, for example, affect the amount of land available for growing food, as well as the health of local fisheries. But that’s not all.

“I would watch my mom do “Safe Harbor Puerto Del Rey small things, like pick up is located on a Caribbean I see a need to do everything we can garbage on the beach and island, so we are in much personally, and as a business, to conduct recycle glass… just small closer proximity to things,” Carolina said, “You extreme storms, which are ourselves responsibly. Every little bit counts. can say those values were happening more frequently,” inculcated in me at a young she said. “We are also age. Today, I compost and more exposed to the ocean recycle, even though Puerto Rico does not have a formal plastics problem and coastal erosion. So, I see a need to do recycling program in place.” everything we can personally, and as a business, to conduct ourselves responsibly. Every little bit counts.”

Carolina brought that stewardship ethic to the marina business long before assuming her current role as Regional Her passion for stewardship, in addition to Safe Harbor Puerto Vice President of International South, based at Safe Harbor Del Rey’s strategic location in the middle of international Puerto Del Rey. superyacht routes to and from Safe Harbor properties like Safe Harbor Lauderdale Marine Center and Safe Harbor “Once I entered the industry, Charleston City, made Carolina a perfect addition to I understood that the ocean the Board of Directors of Water Revolution Foundation was our business, and that (“WRF”), an international organization dedicated to there is no way that we will promoting sustainability in the superyacht industry through survive long-term at the rate collaborative projects and educational resources. we’re going,” said Carolina.

While many Board members represent the yacht design and The threats to island nations manufacturing industry, Carolina recognized that more like Puerto Rico are many. representation was needed from the marine services side – Warming oceans and sea she now fills that gap.

“

”

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Safe Harbor Puerto Del Rey

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With her knowledge of the business, she has been able to help identify areas of superyacht service that require improvement, including reducing the number of boxes and plastic containers used to transport items to and from superyacht vessels and trainings for captains and crew on how to use onboard generators more efficiently.

Carolina’s contributions were included in WRF’s recent “Three-Year Plan,” which notably includes an educational program aimed specifically at marina sustainability.

Carolina feels that Safe Harbor has made her involvement with WRF possible.

“Safe Harbor has been so supportive of me, but I think Safe Harbor is supportive in general. I am so excited about our corporate commitments to the environment. “ In addition to Carolina’s continued involvement with WRF, she attended the Monaco Yacht Show in fall 2022. Of particular interest was the Sustainability Forum, which showcased a variety of different vendors operating at the

3 | PEOPLE & COMMUNITIES

4 | W H AT ' S N E X T

intersection of yachting and sustainability. WRF team members were responsible for vetting vendors to ensure their products actually met the criteria necessary for the Sustainability Forum.

While in Monaco, Carolina was also able to meet WRF team and Board members in person and engage in conversations about marina sustainability assessments and the roll out of the Yacht Environmental Transparency Index ("YETI"), a revolutionary scoring tool used to rate and compare the sustainability performance of yachts.

FRAMEWORKS

“ Seeing how the Superyacht Industry is interested in sustainable solutions and developments was motivating...

It makes me proud to work for a company that is addressing it as well.

”

“The Monaco Yacht Show was an unforgettable experience,” said Carolina. “Seeing how the Superyacht Industry is interested in sustainable solutions and developments was motivating. Not only vendors, vessels, and suppliers, but even the European governments are playing a part in addressing sustainability.

It makes me proud to work for a company that is addressing it as well.”

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At Safe Harbor, caring for our people and the natural environment we operate in is integral to the success of our business. Despite the economic headwinds we faced in 2022 and early 2023, our commitment to sustainable growth is unwavering.

Similarly, our mindset is one of constant improvement.

In 2023, we aim to ensure that our strategic Framework remains aligned with key stakeholder preferences and business priorities. In addition to striving toward the goals laid out in this report, we will work toward addressing gaps in our reporting and actionable concerns raised through our Teammate Engagement process.

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1 | S A F E H A R B O R S U S TA I N A B I L I T Y

The following section contains Safe Harbor's 2022 performance table and disclosures aligned to select globally-recognized reporting frameworks.

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F O R WA R D LO O K I N G S TAT E M E N T S

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This document contains various “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. We intend that such forward-looking statements will be subject to the safe harbors created thereby. It is for this purpose that any statements contained in this document that relate to expectations, beliefs, projections, future plans, and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as “forecasts,” “intends,” “intend,” “intended,” “goal,” “estimate,” “estimates,” “expects,” “expect,” “expected,” “project,” “projected,” “projections,” “plans,” “predicts,” “potential,” “seeks,” “anticipates,” “anticipated,” “should,” “could,” “may,” “will,” “designed to,” foreseeable future,” “believe,” “believes,” “scheduled,” “guidance,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words.

These forward-looking statements reflect our current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this document some of which are beyond our control. These risks and uncertainties may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. Statistics and metrics included in this report are in part dependent on the use of estimates and assumptions based on historical levels and projections and are therefore subject to change. This report has not been externally assured or verified by an independent third party. This report is not comprehensive and, for that reason, should be read in conjunction with the 2022 Sun ESG Report, Sun Communities' filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, particularly the “Forward-Looking Statements” and “Risk

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Factors” sections of these filings, all of which are available on the Sun Communities website.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. We undertake no obligation to publicly update or revise any forward-looking statements included or incorporated by reference into this document, whether as a result of new information, future events, changes in our expectations or otherwise. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. All written and oral forward-looking statements attributable to Safe Harbor Marinas or persons acting on its behalf are qualified in their entirety by these cautionary statements.

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2 0 2 2 S U S TA I N A B I L I T Y P E R F O R M A N C E I N D E X

G OA L

S TAT U S

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Develop KPIs for reducing emissions, consumption, and/ In Process or waste after baseline is established

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P R O G R E SS N OT E S 2022 was our second year of baseline data collection. A solid baseline as a necessary precursor to internal target-setting, which will be accompanied by appropriate KPIs.

Complete LED installations at 80% marinas by the end of 2022

Achieved

Develop strategy for scalable renewable energy generation/procurement, electrification and energy efficiency

In Process

Several achievements were made in 2022.

See Powering Our Network

Strengthen approach to physical and transitional climate risk management through increased alignment with the TCFD Recommendations

Achieved

Disclosed in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures. TCFD Recommended Disclosures are available upon request. See page 104.

Survey Teammates on safety, benefits, and other issues that matter most to them

Achieved

We circulated our first Teammate Engagement survey in 2022. See Serving Our People

Survey Teammates on additional training desired to advance their professional skills and abilities

Achieved

We circulated our first Teammate Engagement survey in 2022 and surveyed Teammates on training specifically. See Training & Professional Development.

Roll out training for topics in greatest demand for our Teammates

Achieved

See Training & Professional Development.

Improve and grow our pilot program for Marine Technician Apprenticeships

Achieved

See Investing in Marine Technicians.

Enhance internal EHS audit program to include on-site learning and ID education gaps

Achieved

See Workplace Safety.

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G OA L

S TAT U S

P R O G R E SS N OT E S

Establish EHS KPIS to measure and track development over time

In Process

Monthly Scorecards help us track EHS compliance indicators for specific sites month after month. See Workplace Safety for more information.

Develop a central database to track total EHS training hours

In Process

Establish process for measuring environmental performance in all compliance aspects

In Process

Develop environmental compliance KPIs

Achieved

We currently track permit status, Clean Marina certification status and EHS training hours.

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GRI CONTENT INDEX G R I S TAT E M E N T O F U S E Safe Harbor Marinas LLC has reported the information cited in this GRI content index for the period January 1, 2022 through December 31, 2022 with reference to the GRI Standards.

GRI ID & DESCRIPTION

GRI 2: General Disclosures

2-1

Organizational Details

2-2

Entities included in the organization's sustainability reporting

2-3

Reporting period, frequency and contact point

2-4

Restatements of information

2-5

External assurance

2022

2-6

Activities, value chain and other business relationships

2-7

Employees

2-9

Governance structure and composition

2-11

Chair of the highest governance body

2-12

Role of the highest governance body in overseeing the management of impacts

2-13

Delegation of responsibility for managing impacts

2-14

Role of the highest governance body in sustainability reporting

2-15

Conflicts of interest

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PA G E & R E S P O N S E 11

Our Company

7

About this Report

7, 11

About this Report, Our Company

7

About this Report This report was produced with reference to the GRI Standards. The GRI is a widely accepted global framework for reporting corporate ESG performance.

As a subsidiary of Sun Communities, Safe Harbor emissions data was subject to external assurance (see 2022 Sun ESG report pp. 44-45)

11

Our Company

12, 54-55 Our Network, Who We Are 74

How We Lead

74

How We Lead

74-75

How We Lead, ESG Council

74-75, 78 How We Lead, ESG Council, Committees 75

ESG Council

76

Policies

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GRI 3: Material Topics

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GRI ID & DESCRIPTION 2-16

Communication of critical concerns

2-17

Collective knowledge of the highest governance body

2-22

Statement on sustainable development strategy

2-23

Policy commitments

2-24

Embedding policy commitments

2-25

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

2-27

Compliance with laws and regulations

2-29

Approach to stakeholder engagement

3-1

Process to determine material topics

3-2

List of material topics

3-3

Management of Material Topics

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PA G E & R E S P O N S E 76

Policies

74-75, 78 How We Lead, ESG Council, Committees 4

Letter from the CEO

76

Policies

76

Policies

28-29, 38-41, 62, 67, 69, 76

Enhancing Coastal & Marine Habitats, Promoting Clean Operations, Serving Our People, Workplace Safety, Policies

62, 69, 76

Serving Our People, Incident Response, Policies

76, 78

Policies, Tax

20-21

Priorities & Engagement

20-21

Priorities & Engagement

20-21

Priorities & Engagement

28-29, 38-41, 42-43, 62-63, 67-69, 72-73

Enhancing Coastal & Marine Habitats, Promoting Clean Operations, Responding to Hurricane Ian, Serving Our People, Training & Professional Development, Workplace Safety, Sustainability & The Member Experience

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G R I T O P I C - S P E C I F I C S TA N D A R D

GRI ID & DESCRIPTION

GRI 201: Economic Performance

201-1

Direct economic value generated and distributed

201-2

Financial implications and other risks and opportunities due to climate change

201-3

Defined benefit plan obligations and other retirement plans

GRI 202: Market Presence

202-2

Proportion of senior management hired from the local community

GRI 205: Anti-Corruption

205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anti-corruption policies and procedures

205-3

Confirmed incidents of corruption and actions taken

GRI 206: Anti-Competitive Behavior

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

GRI 207: Tax

207-1

Approach to tax

207-2

Tax governance, control, and risk management

207-3

Stakeholder engagement and management of concerns related to tax

207-4

Country-by-country reporting

GRI 302: Energy

302-1

Energy consumption within the organization

GRI 303: Water and Effluents

303-1

Interactions with water as a shared resource

303-2

Management of water discharge-related impacts

303-5

Water consumption

304-2

Significant impacts of activities, products and services on biodiversity

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GRI 304: Biodiversity

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PA G E & R E S P O N S E 12

Our Network

24-25, 104

Our Climate Story, TCFD Recommended Disclosures

62

Serving Our People

65

Creating Local Jobs

76

Policies

76

Policies

For more information, please see the Sun Communities 2022 Form 10-K

None None 78

Tax

78

Tax

78

Tax

78

Tax

34

Powering Our Network

28-29, 38-39, 42-43

Enhancing Marine & Coastal Habitats, Promoting Clean Operations, Responding to Hurricane Ian

38

Promoting Clean Operations

34

Powering Our Network

28-29, 38-39

Enhancing Coastal & Marine Habitats, Promoting Clean Operations

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G R I T O P I C - S P E C I F I C S TA N D A R D

GRI ID & DESCRIPTION

GRI 305: Emissions

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

401-3

Parental leave

GRI 402: Labor/Management Relations

402-1

Minimum notice periods regarding operational changes

GRI 403: Occupational Health & Safety

403-1

Occupational health and safety management system

403-2

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

403-4

Worker participation, consultation, and communication on occupational health and safety

403-5

Worker training on occupational health and safety

403-6

Promotion of worker health

403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety management system

403-9

Work-related injuries

404-2

Programs for upgrading employee skills and transition assistance programs

404-3

Percentage of employees receiving regular performance and career development reviews

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GRI 401: Employment

100

GRI 404: Training & Education

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PA G E & R E S P O N S E 25 25 25 54

Who We Are

62

Serving Our People

62

Serving Our People

New hires only.

Teammates are provided notice in the event of significant business changes.

Teammates are typically given two weeks' notice before managerial changes and 60 days notice priort to reductions in force (RIFs).

67-69

Workplace Safety

69

Workplace Safety, Incident Response Safe Harbor contracts with external service providers for Teammate mental and emotional health services when needed.

62-63, 69

Serving Our People, Training & Professional Development, Safety Training

68

Safety Training

62

Serving Our People

67, 69

Workplace Safety, Promoting Member Safety

67, 69

Workplace Safety, Promoting Member Safety

66

OSHA Incident Rates

63-64

Training & Professional Development, Investing in Marine Technicians

62

Serving our People

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G R I T O P I C - S P E C I F I C S TA N D A R D

GRI ID & DESCRIPTION

GRI 405: Diversity & Equal Opportunity

405-1

Diversity of governance bodies and employees

GRI 405: Freedom of Association & Collective Bargaining

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

GRI 408: Child Labor

408-1

Operations and suppliers at significant risk for incidents of child labor

GRI 413: Local Communities

413-1

Operations with local community engagement, impact assessments, and development programs

GRI 416: Customer Health & Safety

416-1

Assessment of the health and safety impacts of product and service categories

416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

417-2

Incidents of non-compliance concerning product and service information and labeling

417-3

Incidents of non-compliance concerning marketing communications

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

GRI 417: Customer Health & Safety

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GRI 418: Customer Privacy

102

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PA G E & R E S P O N S E 54-55

Who We Are None

None See generally 2022 Safe Harbor Sustainability report (Our People spotlights) 67-69

Workplace Safety Safe Harbor did not identify any non-compliance with regulations and/or voluntary codes pertaining to the health and safety impacts of products and services in FY22.

Safe Harbor did not identify any non-compliance with regulations and/or voluntary codes concerning product and service information and labeling in FY22.

Safe Harbor did not identify any non-compliance with regulations and/ or voluntary codes concerning marketing communications in FY22.

Safe Harbor did not identify any non-compliance with regulations and/or voluntary codes concerning breaches of customer privacy and losses of customer data in FY22.

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2 0 2 2 TC F D R E C O M M E N D E D D I S C LO S U R E S

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For more information on how Safe Harbor aligns to the TCFD, please contact cajax@shmarinas.com

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