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 Nature and Biodiversity Summary of Our Approach • We strive to take a nature-positive approach to our business activities • Nature and biodiversity are elements of our overall ESG integration framework and we are committed to protecting and restoring natural ecosystems through our financing activities and investments • As part of our enterprise-wide approach to managing environmental risks, we consider nature-related risks in our Environmental Risk Policy Learn more: Nature and Biodiversity Preserving our natural resources is critical to the well-being of future generations. Biodiversity is at the heart of a healthy environment. At Manulife, we believe in safeguarding forests, wetlands, and natural habitats where biodiversity thrives. Nature and biodiversity are two of several factors that may be incorporated in our assessment of overall environmental risks and opportunities as a component of the underwriting and monitoring of our investment portfolios. In our Environmental Risk Policy , we consider nature-related risks that could result in financial loss or reputational damage to the company as part of the enterprise-wide approach to managing environmental risks. Manulife Investment Management was a member of the informal working group for the Task Force on Nature-related Financial Disclosures (TNFD), working to develop the scope of that endeavor to deliver a risk management and disclosure framework for organizations to report and act on evolving nature-related risk. Manulife Investment Management pledged our continued support by becoming part of the TNFD Forum, a multi-disciplinary pool of supporters. In addition, Manulife Investment Management is signatory to the Finance for Biodiversity Pledge, where we sit on several working groups tasked with developing appropriate metrics and stewardship activities in support of asset manager commitments to protect biodiversity and reverse nature loss. By signing onto the pledge, we’ve committed to collaborate and engage with companies on biodiversity and assess our own biodiversity impact. This will enable Manulife Investment Management to set targets and disclose appropriate reporting on biodiversity aspects by 2025. Within our life and health insurance business, we consider the impacts of biodiversity on human health, and this research may help inform decisions related to our product and services offered. Private Markets Infrastructure and Private Equity and Credit Recognizing the need to systematically identify and assess material ESG risks and opportunities, our infrastructure and private equity and credit investment teams evaluate ESG considerations as a regular part of the underwriting process. Nature and biodiversity factors are assessed during due diligence and monitored post-investment, where material to the underlying investment. The Sustainable Investing team supports related due diligence and stewardship by providing expertise and research to investment teams. We continue to enhance and evolve how we integrate ESG into the investment process, including consideration of the role that our infrastructure and private equity and credit portfolios can play in the protection and preservation of biodiversity and natural capital. Timberland and Agriculture In the management of timberland and agriculture assets we have an interest in safeguarding natural capital where biodiversity thrives in order to make these assets themselves, as well as the benefits they provide, more resilient. To put it another way, nature is our business, and the forests and farms we manage are ecosystems. Our objective is to produce a healthy return for our clients by keeping these ecosystems healthy. Natural capital accounting represents a key component of our approach to protecting and preserving nature and biodiversity. In 2022, we worked with a leading global consultancy in environmental economics to pilot a natural capital accounting approach for our timberland investments. The approach entails construction of a natural capital asset register and materiality assessment, followed by valuation of natural capital assets and liabilities using a combination of internal company data and publicly available research. The approach culminates in a natural capital balance sheet and income statement, which together enable quantitative conclusions to be drawn about the extent to which a company is contributing to, or detracting from, the natural capital assets under its management, as well as the extent to which such contributions may positively or negatively impact both the asset owner and society in general. We analyzed two pilot properties managed by Manulife Investment Management in 2022 and in 2023 we plan to expand the approach across our timberland and agriculture portfolio. 44