2022 ESG Report Introduction ESG at Manulife Environmental Social Governance Corporate Governance Human Rights Risk Management Ethics and Compliance Tax Strategy Data Security and Privacy Executive Compensation Practices Responsible Product Governance Public Policy Performance Data Abbreviations and Acronyms Tax Strategy Summary of Our Approach • Our Board of Directors and Executive Leadership Team have ultimate oversight of our tax strategy. • Our Chief Financial Officer and Global Tax team have operational responsibility for our tax strategy and risk management. • We have established formal committees to review and approve significant transactions and structures given our global presence. Learn more: Ta x Our Tax Strategy is Based on the Following Principles: • Complete honesty and integrity • Compliance with all applicable laws and regulations, including transfer pricing guidelines • Customer-centric client service • Protection of the Manulife brand and reputation • Operational efficiency and effectiveness • Openness and co-operation with tax authorities • Contribution to shareholder value Tax falls within the scope of the Chief Financial Officer ’s responsibilities and ultimate responsibility is with our ELT and Board of Directors. Operational responsibility for tax strategy and risk management resides with Global Tax. Manulife has established formal committees to review and approve significant transactions and structures. Such committees are accountable to the ELT and/or Manulife’s Board of Directors as is deemed appropriate. Manulife’s Global Tax department participates in these committees and Global Tax’s approval is required for transactions and structures with significant tax implications. Our Transfer Pricing policy commits to undertaking internal transactions using the arm’s-length principle. Manulife has a global presence, operating in numerous countries around the world, each with its own taxation system and tax rates. Manulife complies with transfer pricing legislation and guidelines established by the countries in which we operate, along with OECD transfer pricing guidelines, to ensure that the arm’s-length principle is observed in pricing cross-border transactions between Manulife entities. Also, in accordance with the OECD’s Base Erosion and Profit Shifting initiative (BEPS) to enhance tax transparency, Manulife produces country-by-country reporting on our global operations to facilitate the audit work of tax authorities around the world. Since many of the countries, such as the U.S., have tax rates lower than those of Canada, the company’s effective tax rate will typically be lower than the Canadian statutory rate of 27.5%. Additionally, the variability of that rate from year to year is dependent on the level of our profitability on a country-by-country basis. The different types of investment income, which are key to supporting the insurance business risks we assume, are another factor that reduces the effective tax rate as they are often taxed at much lower effective rates compared to regular business income. Governments can make such tax policy decisions for technical reasons, such as avoiding double taxation on business earnings, or to encourage cewrtain types of investment. For additional information, please review our Global Tax Strategy . 73