2022 ESG Report Introduction ESG at Manulife Environmental Climate Action Plan Our Operations Our Investments Our Products and Services Climate-related Risks and Opportunities Nature and Biodiversity Social Governance Performance Data Abbreviations and Acronyms The availability and quality of climate-related metrics remains a challenge for private markets investors. We will continue to engage our managers, sponsors, and portfolio companies on the importance of gathering and disclosing climate- related data to investors. Manulife Investment Management Public Markets takes a variety of actions to appropriately account for climate risk and opportunity factors in each asset class according to internal, technical, and market dynamics along with regional consideration. This work occurs throughout our sustainability integration process, engagement strategies, and the development of climate-focused investment frameworks. We engage with issuers to achieve positive outcomes related to climate risk. In 2022, we led an engagement with a Canadian oil and gas company through the Climate Action 100+ initiative, and that company both received reasonable assurance for emissions data and adopted mid-term emissions targets. GHG emissions, energy management, and climate risk remains among our top engagement topics with issuers. Investment teams, in 2022, identified two issuers within their portfolios that were most at risk to the transition to a lower-carbon world and began engaging using an internal set of engagement questions as a guide. These conversations will help the teams assess management of the transition risk at some of their biggest holdings and may influence adoption of best practices in climate risk disclosure and management at the relevant issuers. We continue to support shareholder proposals on climate including requests to report on targets aligned with the goals of the Paris Agreement, to adopt GHG reduction targets and to report on the physical risks of climate change. We also continue to expand our suite of sustainability themed products that we can offer clients and this selection currently includes the Climate Action Equity strategy and the Climate Action Bond strategy. 53 Within our life and health insurance business, we prioritize research and data collection to inform products, product pricing, underwriting, claims, and actuaries as it relates to the impact of physical climate-related risks on morbidity and mortality rates. We are currently in the process of developing a pilot program that will determine the feasibility of morbidity trends claim analysis on a global scale, to allow us to study the impact of such climate-related risks. Risk Management Climate risk is a risk with unique characteristics given the diverse set of pathways in which risks can manifest. To understand these risks, we have established an initial inventory of climate-related risks and their potential impacts on Manulife. Each risk statement is categorized by both our principal risk types and aligned to the TCFD framework (e.g., physical and transition risks). Climate-related risks were identified based on internal and external scans to develop an initial inventory. Examples of climate-related risks in our inventory include: Climate-related risks Risk Increase in regulatory requirements or new government policies • Strategic • Transition Changes in customer preferences or expectations towards our products and services • Strategic • Transition Sudden changes in valuations of invested assets • Market/credit • Transition Higher claims experience • Product • Physical Damage to company-owned real assets or to critical infrastructure • Operational • Physical Scarcity of resources to comply with heightened regulations • Operational • Transition The inventory provides a basis to perform assessments to better understand our key inherent risk exposures across the organization and how they impact different lines of business and their business strategies. We plan to conduct further analysis to link risk mitigation activities against our inventory and set prioritized action plans to address areas of heightened risk exposures. Risk management activities addressing climate- related risks are expected to continue to evolve over time as knowledge and capabilities further mature, and as applicable standards, frameworks, and methodologies continue to emerge and coalesce. We have explored and recently adopted a third-party climate risk analysis tool from Munich Re across some of our business areas to assess the impacts of various climate change hazards across different time horizons and Representative Concentration Pathways (RCPs), adopted by the IPCC that provide plausible future scenarios of GHG concentration trajectories on different lines of business operations. In 2023, we aim to focus on the following risks and opportunities at an enterprise risk management level: • Continuing to build capabilities across our second line of defense to provide effective risk oversight of climate risks • Working with business areas to enhance current risk management processes, including internal control environments, to incorporate climate- related risk • Raising awareness on climate-related risk across the organization through learning and development initiatives • Enhancing existing policies and standards • Developing climate risk metrics and risk appetite further 53 Not all investment strategies and products are available to all investors in all jurisdictions. 40