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 In particular, this means targeted interventions to drive accelerated grid decarbonization by electric utilities, which will benefit the emissions profiles of all sectors. Secondly, we need access to reliable, credible, and timely information from our issuers on their own efforts to decarbonize. Finally, we depend on the support of Manulife investors, clients, peers, and regulators, who understand the urgency of global climate efforts and encourage a sustained focus on our Climate Action Plan. Science-based targets support our alignment to credible pathways to net zero. We expect that not only these pathways but also the best metrics against which to measure our alignment may evolve over time, based on the factors outlined above. And we intend to adapt our targets accordingly to reflect changes in the real economy and the best available information from our issuers, standards setting organizations such as the SBTi, and convening bodies such as the Intergovernmental Panel on Climate Change (IPCC). Investing in Green and Transition Solutions We believe that decarbonization of high-emitting sectors takes capital, oversight, and investments in solutions. To this end we have investment teams specifically focused on evaluating and funding entities that support established and emerging energy transition solutions like hydrogen, carbon capture, and others. This work complements our long experience as an investor in renewables, energy efficiency, and clean transportation. For example, Manulife’s General Account was an anchor investor in Vietnam’s first onshore green bond issued by a leading local financial institution. The certified green bond followed the International Capital Markets Association (ICMA) principles and quarantined its proceeds for renewable energy financing purposes. This investment introduced the green bond concept into Vietnam’s financial sector, providing an actionable framework for how ESG integration and green investment can be effectively utilized in the local market. The local financial institution’s financing of the solar sector was used to help to reduce the country’s carbon emission intensity, as well as the national grid’s dependence on fossil fuels. Our commitment to invest in solutions that help our environment does not end at carbon. Our $45.2 billion portfolio of green investments includes forests and farms and assets to sustainably manage water resources. Manulife’s portfolio emissions 2022 2021 2020 Estimated listed equity and debt portfolio emissions (MT CO2e) 44 – 29.0 32.0 Estimated weighted average carbon intensity (WACI) (tCO2e/mCAD) 45 – 730 678 Liste d equity – 225 258 Fixe d income – 788 729 44 F or the purpose of reporting, Manulife utilized a Trucost methodology for compilation of publicly available data and therefore, incorporates scope 1, 2, and Scope 3 - upstream emissions (where significant to the sector). Emissions are reported per the Partnership for Carbon Accounting Financials (PCAF), utilizing the Global GHG Accouting and Reporting Standard for the Financial Industry. Due to the nature of publicly available emissions disclosure across industries, data lags by one fiscal year and represents a specific point-in-time based on data availability from data providers. Data is not externally assured and may be adjusted in future publications due to changes in the organizational portfolio, in addition to improvements in availability, controls, and quality of data. 45 Indicates the carb on intensity of money invested, providing a measure of responsibility for emissions and contribution to climate change. Due to market forces and changes in market capitalisation, year-on-year performance comparison may be challenging. Our Products and Services Summary of Our Approach • We understand the intrinsic connection between our environment and human health and are accelerating the development of innovative products that meet customer demand and create a more sustainable future. • We offer products and services that address the issues of climate change and offer nature-based solutions to mitigate climate change through investment in natural capital, like forests and farms. • We believe in safeguarding forests, wetlands, and natural habitats through our asset management and asset ownership activities. Learn more: Our Products and Services Manulife Investment Management Our beliefs As an asset manager and a steward of our clients’ investments, sustainable investing is integral to our business and culture. We believe a commitment to sustainable investing is a necessary condition for investors to be successful over meaningful time horizons. We also recognize that our clients’ needs in this area are expanding and that their own stakeholders are demanding a formal adoption of sustainable investing practices. Our commitment to sound practices is consistent with our responsibility to help clients achieve their goals. With a culture steeped in careful and objective analysis, knowledge sharing, and global collaboration, we see clearly why sustainability principles should inform our investment practices from the bottom up. In our view, sustainability and stewardship drive financial value and help us build strong relationships with our stakeholders, from clients and employees to tenants, borrowers, and investment partners. What we offer Our sustainable investing capabilities are broad, ranging from ESG integration to impact investing. In some cases, we can tailor these capabilities to our clients’ needs: • We seek to support our clients’ needs through our sustainability and investment expertise across a broad range of asset classes. • We continuously seek to enhance our product offerings and our reporting in line with industry standards and best practices. • We take a consultative approach to meeting our clients’ sustainability objectives. • We host sustainability education and training for our employees, clients, and other industry participants. Where our clients include sustainable investing considerations or screening requirements in their investment guidelines or mandates, we will evaluate their parameters and determine if we’re able to offer a version of the strategy customized to those guidelines. 30