SUSTAINABILITY

The ultimate responsibility for PRIME’s sustainability strategy, and the management and monitoring of material ESG topics, lies with the Board of Directors (the “Board”). The Board offers guidance and oversees Management’s performance in implementing the strategy and managing material topics. This ensures sustainability principles are integrated into the decision-making processes at the highest level, clearly communicating its importance across our entire value chain. Sustainability-related updates by Management are tabled at quarterly Board meetings.

In the preparation of this Sustainability Report, the Board has considered sustainability issues in relation to PRIME’s business and strategy, determined the material ESG factors and overseen the management and monitoring of the material ESG factors.

The Audit and Risk Committee (“ARC”) assists the Board in its oversight of sustainability risks through the Enterprise Risk Management (“ERM”) process, incorporating sustainability risks into the Company’s risk register. The ARC reviews the Management’s ERM updates and the risk register during quarterly meetings.

PRIME’s Management is primarily responsible for integrating sustainability considerations into business operations in line with the sustainability strategy by developing action plans and tracking outcomes of these plans. The central ESG team from LPC is engaged to coordinate and manage key ESG issues for the U.S. portfolio and provide expertise in the execution and monitoring of sustainability action plans at the property level. Both teams refer to PRIME’s Sustainability Risk Framework – which is part of PRIME’s ERM framework – to manage and monitor sustainability risks and opportunities. The ARC receives updates on sustainability matters on a quarterly basis. Updates on sustainability matters are provided to the ARC on a quarterly basis.

Engaging with our stakeholders is essential in improving our sustainability efforts. Through regular surveys, meetings, and events with various stakeholder groups, we gather valuable insights into their needs and priorities. Such feedback channels enable us to enhance our efforts and drive tangible and positive impact. We are committed to fostering long-term relationships and maintaining open communication with our stakeholder groups, deepening our understanding of how we can best create value for them.

Materiality assessment is crucial in identifying the ESG topics that have the most impact on PRIME and how these translate to an impact on the economy, environment, and people. Therefore, material ESG topics are of interest to PRIME and our stakeholders. It forms the foundation of sustainability reporting, informing us of significant ESG areas for PRIME to develop monitoring and management strategies.

In FY2022, we conducted a comprehensive refresh of PRIME’s material ESG topics with the support of an external consultant. Stakeholder engagement was central to this effort, with 38 internal and external stakeholders, including the Board of Directors, Management and employees, tenants, operating vendors, local communities, and investors, taking part in a stakeholder survey. The list of potential material ESG topics raised was ranked by stakeholders, validated by Management, and subsequently approved by the Board.