THE UNITE GROUP PLC Annual Report and Accounts 2024 96 BOARD ACTIVITIES continued GOVERNANCE STRATEGIC OBJECTIVE Great Place to Invest (continued) Board’s governance role Link to principal risk What the Board did in 2024 and its decision-making Sustainability and ESG: as a listed plc and responsible and trusted business, our wider stakeholders demand we proactively manage environmental, social and governance risks. The Board oversees the setting and implementation of our sustainability framework, which has the overarching ambition for Unite Students to clearly lead the living sector on sustainability issues and be in the leading pack of real estate companies in the wider sector. Sustainability risk Read more p60 The Board continued its oversight of our sustainability framework and Net Zero Carbon Pathway, built on science-based targets validated by the SBTi, to achieve our objective of becoming net zero carbon across both the Company’s operations and development activities by 2030. The Board also interrogated our ongoing ESG regulatory and reporting compliance.The Board considered the specific climate change risks, identifying them across: Regulatory risk; Physical risk; Transition risk; and Stakeholder risk. The Board considered the impact of these risks and oversees the assurance of the corresponding risk management. The Board were supportive of £10.2 million capital investment into energy efficiency projects delivering energy savings. Board oversight of the Group’s first sustainable construction framework published in 2023. This framework had a successful first year of implementation and progress against carbon targets. Read more about sustainability p43 Fire safety: proactive Board oversight of improvements in fire safety and demonstrating leadership on cladding remediation. Operational risk Major health and safety incident in a property or a development site Read more p58 The Board continued to oversee the cladding remediation programme and ongoing investment plan. Higher Education Government Policy: Continued focus on potential Higher Education Government Policy changes. Market risk Supply and demand Read more p57 Ongoing Board monitoring of Higher Education Government Policy and its impact for PBSA and universities more widely. Covenants’ compliance: Group Board oversight of our covenants’ compliance. Financing risk Read more p61 The Board monitors covenants’ compliance across a range of income/ stress scenarios to ensure that if any risks emerge, the Board is ready to identify further action and work with lenders well in advance. Covenant compliance is also overseen by the Audit & Risk Committee and by the external audit review of our covenant compliance through the going concern process. Read more in the Financial review p35 Capital structure: Group Board focus on a strong and flexible capital structure, which can adapt to market conditions, and reducing and diversifying the cost of funding. Financing risk Read more p61 The Board approved the £450 million capital raise in July 2024 which received strong investor support. The proceeds will be used to support our joint venture with Newcastle University, acquisition of new assets in USAF and our committed pipeline and increased investment into our existing estate through asset management projects to enhance future returns. During the year, the Board supported the establishment of a £2 billion Euro Medium Term Note (EMTN) debt issuance programme in addition to a new eight year £400 million bond issue under the new EMTN programme. We also harmonised the existing 2029 Liberty Living Finance plc bonds with the EMTN programme and substituted Unite Group plc as the issuer of this bond, in place of Liberty Living Finance plc. Read more in the Financial review p35