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Part 1 – Environmental, Social and Governance Policy

Fundamentum Social Housing REIT PLC (FSH REIT) is a social housing and healthcare Real Estate Investment Trust launched on The International Stock Exchange (TISE) in November 2019. We raise capital from institutional investors and use the funds to buy properties to be rented as social and care-based community housing for the long-term. One of our main objectives is to help tackle the shortage of social housing in the UK, with a focus on supported housing for vulnerable adults.

FSH REIT is committed to continuous improvement in our approach to Environmental Social Governance (ESG)
integration into our investment processes. We will closely monitor this Policy and will review it on an annual basis.

The Board of the FSH REIT retains overall responsibility for the ESG Policy. This duty is undertaken on behalf of the Board by the Investment Advisor, who manages the implementation and execution of the FSH REIT investment objectives, including the ESG standards and procedures.

Part 2 – Our Impact Goals

We will produce an Annual Impact Report to highlight our performance in relation to our Impact Goals and to outline the investments made to the portfolio.

FSH REIT is committed to increasing the provision of high-quality social and care-based community housing that delivers positive social outcomes. We aim to integrate social impact and ESG considerations into all stages of the investment process. The following Impact Goals underpin our business model.

Increase the supply of Specialist Supported Housing (SSH)

This will be achieved through continued investment in the sector and as evidenced by our Annual/Quarterly Reporting of acquisitions.

Improve the quality of SSH

By acquiring and refurbishing properties and purchasing new build properties, we will improve the quality of SSH. We will report the amount invested in property refurbishment and the number of new build properties acquired on an annual basis.

Improve well-being outcomes for residents

We will only select Registered Providers or Registered Charities that act as Housing Associations (HA’s) and work with them to improve care, living conditions and outcomes for residents. We will seek evidence of the social impact our investments are making through quarterly reporting, which will be undertaken by each HA we work with.

Improve environmental conditions

We have integrated environmental considerations into our investment processes and will work to improve EPC ratings and CO2 emissions of the properties we acquire. Our Annual Impact Report will highlight the environmental improvements our investments have made to properties in the portfolio.

Part 3 – Investing for Social Impact

SSH allows vulnerable adults with a range of care needs to live in a safe, secure, and homely environment, creating the opportunity for independent living with appropriate levels of care and support.

SSH also allows for growth in teamwork, self-development, and skill progression as often residents share communal space. Our quarterly ESG reporting highlights the positive impact our investment strategy is having on the residents, whist also allowing us to work with our partners to improve the outcome for the individual and society.

Part 4 – Governance

We believe good corporate governance is key to delivering our investment objectives. We will conduct due diligence of the governance structure and management team of all potential partner HA’s. The governance approaches adopted by our counterparties are important for us to ensure the best outcomes are delivered for society. We will assess and monitor the viability, social impact, and governance of our counterparties.

Part 5 – ESG Intergration, Measurement and Reporting

ESG integration is the clear inclusion of ESG factors in our investment decisions and we aim to integrate social impact and ESG considerations into all stages of the investment process. We are an adopter of The Equity Impact Project, which has been developed by The Good Economy and Big Society Capital, to create a framework to measure, manage and report on the positive impacts of equity investment in social and affordable housing and mitigate any negative impact risks. We have made a commitment to adopt the impact framework and will report against the ESG metrics on an annual basis.

Part 6 – Further committments to building an ESG Culture

The FSH REIT and its Investment Advisor are signatories to the Principles of Responsible Investment and the UK Sustainable Investment and Finance Association. The FSH REIT has pledged to meet the criteria to reflect the standards of both these parties.

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