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 Within Manulife Investment Management Public Markets, our processes for identifying climate risks are supported by our policies and engagement practices. Manulife Investment Management identifies and assesses climate risks in our clients’ investment portfolios through public disclosure and third-party sources, as well as through our own research, company engagement, and collaborative initiatives. To centralize data for the daily risk reports, we have created a proprietary data portal that allows investment teams to view absolute emissions and emissions intensity of clients’ portfolios among other climate data points, where available. As a component of risk management, Manulife Investment Management Public Markets also conducts climate scenario analysis. Scenario analysis is conducted across uncertain future pathways and seek to understand the potential impact of different climate scenarios on our investment strategies and owned and operated assets. We provide climate risk data aligned to 1.5 ̊C, 2 ̊C, 3 ̊C, and 4 ̊C scenarios within our daily risk reports, which encompass those investee companies with the highest climate risk exposure at an individual portfolio level. We engage with regulators and policymakers, civil society, investee companies, and our peers in financial markets to address climate change systemically. We believe this builds resilience into our portfolios and for all our stakeholders, from our employees to our clients and the communities in which we operate. There is no single dataset that perfectly captures the risks of climate change effects. For this reason, we apply an active approach to internal and third-party data and use tools that we complement with our own industry knowledge and firsthand experience. This expertise is built through engagement to understand companies’ vulnerabilities and strengths and through our own stewardship efforts. We seek to communicate transparently with our clients about our climate-related investing strategy and process, and we believe this may help support our clients in responding to their own stakeholders. We began piloting the provision of enhanced client reports on a variety of sustainability metrics, including portfolio carbon footprints, for some equity and fixed-income investors. 55 Our Life and Health insurance business developed a framework to assess the impact of climate-related risks on mortality and morbidity rates by country. We considered specific factors such as regional weather events and the ability of healthcare infrastructure to respond and adapt to such events. This framework is now integrated into our assessment of national and geographic concentration of risk limits. The heightened frequency and severity of climate-related events have brought suffering and loss of life to impacted communities and are causing massive financial strains on the insurance industry that protects these communities. As a retrocessionaire of property catastrophe business that provides coverage for our clients from major natural catastrophe events, the issue of climate change is top of mind for Manulife Re. In 2022, we ensured that our portfolio focused more on extreme climate events as opposed to a frequency of smaller climate events. This is an approach we plan to maintain in 2023 in addition to further limiting exposure to climate-related events. We currently estimate our exposure limit in 2023 to be approximately US$300 million (net of reinstatement premiums) for a single event, and approximately US$600 million (net of all premiums) for multiple events. 56 Risks driven by climate change, such as flooding from extreme rain, winter storms, and severe convective storms, are being minimized in our portfolio through coverage restrictions in our contracts. By limiting the portfolio in geographic scope (to the U.S., Europe, and Japan) and peril coverage, and by working with clients to ensure increased retentions, we have materially reduced the potential for climate-driven, unmodelled types of perils. This gives us the opportunity to focus on well-modelled and well-understood perils of major windstorms (hurricanes and typhoons) and earthquakes, allowing us to charge appropriate premiums, including assumptions for climate change. This encourages our clients, such as major reinsurance companies, to include improved climate modeling and ensure better predictability of event driven losses. To assess the probability of industry losses, we license industry loss curves from Risk Management Solutions (RMS), a leading model vendor. These models are continuously being vetted by the RMS team and new versions are released to their customers every couple of years, or as new research or industry defining events occur. 55 F or additional information regarding Manulife Investment Management’s ESG investment capabilities for institutional investors only, please visit www.manulifeim.institutional/sustainability . 56 See Caution Regarding Forward-looking Statements on page 3 of this ESG report. 42