Environmental, Social, Governance, and Resilience, Principles (ESG+R) Policies

Holland Partner Group (Holland or HPG) cares about environmental, social, governance, and resilience (ESG+R) issues because it benefits our residents, tenants, employees, property and construction teams, capital partners, and communities. We believe that each company has the power to help transform our world through principled business and every property has the power to create an experience that is enjoyable, safe, health- and wellness-oriented, inclusive, and sustainable. This focus adds value for residents, employees, property teams, capital partners, and the broader community.

Our approach to ESG+R is driven by our commitment to demonstrating leadership through comprehensive corporate governance; creating a rewarding, inspiring, inclusive, and collaborative workplace; creating community experiences that are valued by residents and the broader community; addressing climate change; and enhancing long-term value for our investors.

HOLLAND ESG+R PRINCIPLES

Holland is in agreement with the UN Global Compact as it defines sustainability: “Corporate sustainability is a company’s delivery of long-term value in financial, environmental, social and ethical terms.” As such, our sustainability mission is to drive enhanced financial, environmental, social, and ethical performance for the benefit of all stakeholders, including our partners, tenants, investors, employees, and the communities in which we live, work, and invest through principled business.

The pathway to achieving our sustainability mission is rooted in Holland’s Environmental, Social, Governance and Resilience Principles, which are:

INTEGRATION

• Embed and integrate ESG+R best practices designed to enhance portfolio performance into Holland’s daily operations and business decisions.

IMPACT

• Drive positive impact across the company while managing risk and creating long-term value for stakeholders, including our residents, tenants, investors, employees, partners, and the communities in which we work.

INTEGRITY

• Conduct business with integrity, respect, and excellence, earning the right to be a preferred provider of sophisticated capital partners and communities.

As we move forward in our sustainability journey, our actions will be guided by these principles to ensure continuous improvement and long-term success.

ENVIRONMENTAL, SOCIAL, GOVERNANCE + RESILIENCE POLICIES

The following Holland ESG+R Policies have been developed in accordance with the company’s Sustainability Mission and ESG+R Principles. They serve as our guide to embed practical strategies that support our overall business strategy, add value to our day-to-day operations and drive positive impact in our communities. These Policies will be monitored and reviewed annually by the Holland executive leadership, to include representatives in varying roles throughout the company. These Policies will be shared with all HPG employees, residents and disclosed to our investors and other key stakeholders through access on our public facing website....

ENVIRONMENTAL

Holland environmental policies aim to manage risk, make effective use of natural resources, and drive operational excellence throughout the portfolio as part of our commitment to improve environmental and financial performance, and strengthen resilience. These policies are applicable to new construction, existing assets, asset acquisitions, and corporate operations, and are also taken into consideration when hiring suppliers and procuring materials.

Energy

Significant decarbonization will be required to meet global climate change goals. Holland contributes to decarbonization efforts by developing higher density housing, seeking to enhance efficiency, thereby reducing our greenhouse gas (GHG) emissions from energy use and recognizes that such efforts also benefit our company’s performance. Holland works to reduce energy use and associated expenses for all buildings through the monitoring of consumption, utilizing energy efficient equipment where feasible, and incorporating energy management best practices into our new developments as well as daily operations. We track energy data in ENERGY STAR® Portfolio Manager®[1] (ESPM) to monitor our costs, reduce adverse impacts to the natural environment, increase our corporate resilience, and appropriately respond to compliance requirements. We strive to invest in energy sources with lower emissions and fewer pollutants, such as renewables, and as we move away from natural gas. We recognize that renewable energy sources including on-site solar installations and off-site renewable energy opportunities also increase our financial resilience to energy price fluctuations.

Best practices and initiatives in support of Holland’s commitments may include, but are not limited to:

• Evaluation of industry best practices in energy efficiency, electrification and decarbonization;

• Considering energy efficiency in decisions for building upgrades and capital expenditures as well as corporate procedures, while keeping appraised of available incentives;

• Implementation of best practices in preventative maintenance, scheduled replacements, and regular technical assessments to ensure high performing properties;

• Building automation systems and real-time energy monitoring implemented where and when feasible;

• Nighttime and non-regularly occupied temperature setbacks in common areas, vacant spaces, and other Holland managed areas;

• Incorporating on and off-site renewable energy opportunities where practical; and

• Tracking and compliance with all energy efficiency, building performance, and benchmarking requirements in jurisdictions where Holland operates.

Energy efficiency and emissions reductions are a high priority; an equally high priority is to provide the safest and healthiest environments for our employees and residents. We believe these priorities overlap and complement one another through spaces with optimal indoor air quality, recycling, renewable energy, electrical vehicle (EV) charging stations, infrastructure for resident use of Smart Home technologies, reduced environmental impacts, community engagement programs, etc. Health and wellness considerations at times require additional energy demand (e.g., increased ventilation for indoor air quality (IAQ), energy use by gym equipment) and we continue to design, build, and manage with the lowest possible impact in mind.

Holland’s Design Development Playbook guides our projects and sets the standards for energy efficiency and sustainability of a project. The Playbook is used to ensure a sustainable design process for each project with goals and targets established around energy use and emissions. Additionally, an innovative lens that further defines HPG will be applied to each development project under Holland’s oversight to go above and beyond the set targets when feasible. Certain measures may be deemed standard for all properties, while others may apply to certain properties.

Water and Waste

Holland works to reduce water consumption and associated expenses for all managed buildings through the monitoring of consumption, utilizing water-efficient fixtures and equipment where feasible, and incorporating water management best practices into daily operations. We also intentionally reduce landfill waste through tracking waste production and recycling rates, implementing waste management best practices, and purchasing recycled content or zero waste materials where applicable and feasible. Holland benchmarks water usage, waste production, and recycling rates in ENERGY STAR Portfolio Manager where data is accessible and under Holland management. Regular monitoring of the data and associated reports assists with ongoing improvement and conservation of resources.

Best practices and initiatives include, but are not limited to:

• Ongoing Benchmarking and tracking of water and waste data in ENERGY STAR Portfolio Manager (ESPM) where data is accessible and under Holland management;

• Using smart irrigation, adaptive/indigenous water-efficient landscaping, and leak detection systems where practical; and

• Conducting regular preventive maintenance of all applicable water-use systems, such as irrigation systems, flow and flush fixtures, and HVAC systems such as cooling towers.

• Ensuring appropriate, accessible, and clearly marked recycling containers for residents and building visitors;

• Purchasing consumable materials with recycled content such as recycled or biodegradable paper products, copy paper, paper towels, and bathroom tissue;

• Purchasing materials with recycled content for new development and building upgrades, such as recycled content carpet and ceiling tiles; and

• Implementing a waste reduction initiative in Holland corporate offices.

Building Materials

While Holland is a multifamily developer, we also make full use of existing infrastructure by redeveloping existing properties rather than demolishing them and investing in building systems that use water and energy more efficiently. As Holland strives to provide exceptional living spaces and experiences, we work to avoid the use of materials that are known to adversely impact human health and the environment. We also seek to reduce our operational and embodied emissions through building materials that take less energy and carbon to produce or that improve our properties’ energy efficiency.

Best practices and initiatives include, but are not limited to:

• Selecting products and materials with environmentally, economically, and socially preferable life-cycle impacts

• Avoiding the use of materials with known toxic components, such as: asbestos, formaldehyde, volatile organic compounds (VOCs), ash, cadmium, mercury, lead, arsenic, phthalates, etc.;

• Passive design including adding and including continuous insulation, better and/or natural ventilation and other upgrades to improve the efficiency and health of existing buildings;

• Using materials for new construction and redevelopment initiatives, whenever practical, based on the following sustainability standards: ANSI/BIFMA e3 Furniture Sustainability Standard, Declare, Health Product Declarations (HPDs), Forest Stewardship Council (FSC), Legal Wood Cradle to Cradle, Floorscore, Green Seal and Greenguard;

• Incorporating lower embodied carbon building materials such as mass timber, and cement mixes (fly ash, slag, …) where feasible; and

• Purchasing local materials (extracted, manufactured, and transported) and importing local fill where practical.

SOCIAL: TEAM and COMMUNITY RELATIONSHIPS

Team First

Holland believes its most valuable asset is its experienced and productive team, and Holland is committed to fostering, cultivating, and preserving a welcoming culture for all teammates. Our success is reliant on the collective sum of individual talents. We embrace and support team members of all backgrounds, as our culture is founded on dignity and respect for all individuals.

Holland’s culture embodies integrity and respect as evident in our:

• Recruitment from a diverse candidate pool and selection of high-performing, qualified candidates

• Compensation and benefits that support quality lifestyles for employees from all backgrounds with living wage and pay equity protocols

• Promotions, transfers, and professional growth with transparent milestones and expectations

• Social opportunities for team members

We focus on developing a work environment that promotes:

• Respectful communication and collaboration between all teammates

• Teamwork and team member participation, encouraging all perspectives and inclusion

• Work/life balance through flexible work schedules to accommodate team members’ varying needs subject to job duties and responsibilities

• Contributions to and volunteerism in the communities we serve

• Treating others with dignity and respect

• Conduct that reflects these Holland values during work, at work functions on or off the site, and at all other company-sponsored and participative events

Team Safety

Holland is committed to providing a safe workplace for all teammates. We recognize that all employees have the right to work in a safe and healthy environment, consistent with the Occupational Health and Safety Act (OSHA) and any other applicable requirements. Our company is committed to take every reasonable effort to eliminate hazards that cause accidents and injuries.

Safety training is required of onsite team members regularly, regardless of tenure or experience. Training is provided in multiple formats to accommodate and respect the different learning styles and comfort of individuals.

Disregard of or willful violations of this Policy by team members at any level will be considered cause for disciplinary action in accordance with the company’s policies and up to termination of employment.

Team Performance and Career Development

Holland is committed to supporting the performance and career development of our team, striving to provide a culture of learning, growth, and performance excellence. Holland fosters a growth mindset through establishing clear performance objectives and driving team member success and career development.

Best practices and initiatives that Holland implements for team performance include:

• Encouraging team members to engage in relevant training opportunities, including formal training sessions, coaching, mentoring, and participation in career development opportunities

• Funding the cost of training materials and professional accreditations, licensures

• Providing a tuition reimbursement program for employees

• Encouraging community service through implementation of a volunteer program

• Supporting team members through unexpected crises and life events

Community Health & Well-being

As Holland strives to create extraordinary living environments for our residents and tenants, we understand the impact of healthy buildings and commit to owning and managing properties that meet or exceed healthy building criteria, create extraordinary living environments, and strengthen climate resilience. Simultaneously, we seek to create an outstanding corporate working environment that facilitates positive health and well-being for our team. Community starts within our walls and sites and extends to the residents and neighborhoods in which we operate.

Good health, nutrition, regular physical activity, and reduced sedentary time aid in the prevention of chronic disease and the maintenance of health and wellbeing. As such, Holland is committed to creating a workplace culture and residential properties that support and encourage regular physical activity, promote healthy lifestyles, and offer safe spaces. We support active participation by team members in a range of initiatives that promote increased physical activity, reduced sitting time, and healthy eating options.

Best practices and initiatives for all our team members', residents’ and tenants’ health and wellness include:

• Using only paints, sealants, adhesives and finishes with low/no volatile organic compounds (VOCs)

• Conducting regular indoor air quality (IAQ) testing as needed or appropriate

• Meeting or exceeding ASHRAE outdoor air ventilation rate guidelines to minimize indoor sources of odors, chemicals, and carbon dioxide

• Utilizing an integrated pest management plan for indoor and outdoor procedures

• Installing potable water purification filtration and hydration stations if necessary and feasible

• Keeping all Holland offices and properties smoke-free, with tobacco-free signage as appropriate

Additionally, Holland’s best practices and initiatives for an active and healthy workplace also include:

• Providing high-quality health insurance benefits to all employees

• Ensuring stairwells are easily accessible and inviting to use (well-lit, adequately ventilated, etc.)

• Offering standing height tables/desks or workstations as needed and feasible

Community Engagement

Holland has a strong track record of community service since 2001. We build and support communities by partnering with a diverse range of stakeholders, elected officials, neighbors, and industry partners. Relationships with these partners enable mutual support for managing risk and strengthening community-wide resilience.

Holland understands that we live and operate alongside others and have an impact on people and communities. We engage with key members of the community to facilitate easy communication and to provide transparency for our programs and progress. In an effort to contribute to rich and diverse communities, our properties aim to enhance resident and tenant diversity of all types and implement strategies internally and externally to drive inclusion and belonging. We encourage individual team members across the portfolio to be involved in service projects and activities that matter most to them.

Holland’s community engagement best practices and initiatives include but are not limited to:

• Developing positive and productive relationships with community groups including local jurisdictions representatives and community partners;

• Involving community groups to identify and address issues that are material to our business and its longevity;

• Investing in local resilience-building measures to support infrastructure and community resilience;

• Working to develop strategies to drive inclusion, diversity and belonging;

• Empowering employees to use our volunteer time off program to give back on an individual level.

GOVERNANCE

Holland embraces its fiduciary obligations to be a good steward of capital invested by others. Holland is transparent in all of its business and financial reporting and communicates regularly with investors. Frequent communication with individual capital partners on matters of special interest to that stakeholder provide additional transparency.

Compliance

To ensure compliance and strict adherence to government regulations and industry standards and their spirit, Holland teammates must pass annual compliance courses including Fair Housing, wage and hour requirements, construction safety, and Holland’s Code of Business Conduct and Ethics.

Transparency and Reporting

Beyond the requirements associated with building construction and residential properties, Holland voluntarily shares information with stakeholders. Holland looks to align with and prepare for recognized frameworks, reporting, and certification for various processes and properties, depending on region and property. This may include GRESB, UN Global Compact, LEED certification, and others.

Holland’s governance best practices and initiatives include but are not limited to:

• Providing transparency to appropriate stakeholders through annual corporate reporting;

• Designing goals and targets to be SMART (Specific, Measured, Achievable, Relevant and Time-bound);

• Sharing KPIs and progress toward goals with investors and community partners; and

• Development and implementation of formalized, modern Code of Business Conduct and Ethics, and ESG+R Policies.

RESILIENCE

Resilience across all facets of a business is critical for the ability to withstand known and unforeseen risks. Holland believes the practices and values outlined in this policy support the company’s resilience to financial, operational, and climate challenges the company might encounter.

Enterprise Risk Management

Holland management, with the oversight of Holland’s executive leadership, performs a comprehensive assessment of the Company’s enterprise risk management and efforts to mitigate risks. Areas involving risk covered by this assessment include operations, liquidity, leverage, finance, financial statements, the financial reporting process, accounting, legal matters, regulatory compliance, and human resources.

Climate Resilience / Risk Management

Holland recognizes the importance of staying resilient to manage and reduce potential climate-related risks associated with our property investments, developments, and operations. Holland makes a meaningful effort to factor climate resilience considerations into how the portfolio is operated, including energy, water, and waste management practices. This enables us to mitigate climate risks, leverage opportunities, ensure adaptability, and realize the environmental and social co-benefits of operational and organizational resilience.

Holland understands the changing climate has both risks and opportunities for our business, and we are committed to understanding and mitigating the associated physical and transitional risks for our portfolio and leveraging associated opportunities to drive long-term value.

Physical Risks include the short- and long-term effects on our buildings caused by extreme weather events. To understand and mitigate physical risks, Holland will conduct periodic climate risk assessments on the entire portfolio and will also conduct climate risk assessments as a best practice for all new property acquisitions.

Transitional Risks include potential costs of transitioning to a low-carbon economy, such as fines for not meeting increasing building energy and emissions performance legislation requirements. Holland will actively monitor all energy related legislation and proactively track and optimize building performance to reduce the risk of fines for non-compliance.

Once climate risks are identified, Holland is committed to integrating climate resilience into the performance of our portfolio, and to incorporate environmental considerations across energy, water, waste, and GHG emissions management practices as well as use of materials and treatment of biodiversity and land.

Best practices and initiatives for resilience include, but are not limited to:

• Developing strong and coordinated plans for incident response across the organization and operational teams, refining them on an ongoing basis, and ensuring that employees, tenants, and residents are engaged in processes;

• Proactively addressing local, regional, state, and climate-related ordinances and resilience requirements to include upholding practices outlined in the “Environment” section above (e.g., ongoing benchmarking of energy and water performance data);

• Seeking opportunities to perform resilience retrofits to improve durability and reduce vulnerability;

• Conducting climate resilience assessments to evaluate individual assets and our overall portfolio over time;

• Developing a climate resilience program to evaluate and map potential climate risks by conducting high-level climate risk scenario analysis for current portfolio and future acquisitions; and

• Developing Climate Resilience Guides to provide additional expertise throughout the portfolio and for corporate operations.

[1] Common area and whole building (where available) electric and natural gas consumption (where feasible water and waste data) will be tracked in ENERGY STAR Portfolio Manager for all Holland managed properties