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 Power Generation Project Finance 42 Target: 72% reduction in per kWh emissions intensity from project finance activities by 2035 or in line with a 2035 IEA target intensity of 0.14 kgCO2e/kWh. Manulife’s General Account has a long history of financing key infrastructure and power generation projects in North America, Asia, and Europe. This includes $11.12 billion in financing to renewable energy, including wind and solar. Transition activities: The power generation sector is a critical and central enabler of the decarbonization of all other sectors. With increased electrification of aspects such as road transport, demands on our electrical grids are expected to grow substantially in the transition to a low carbon economy. It is for this reason, the sector, and project financing activities specifically, are an area of focus for science-based pathways to net zero. Electricity is generated by a diverse mix of energy sources, and geography and technology play important roles in defining the conditions for financial viability of projects utilizing cleaner energy sources – projects can range from conversions of coal facilities to natural gas to development of new wind farms. Manulife has already taken advantage of the opportunities presented by clean energy, as reflected in the already low emissions intensity of our project finance portfolio. Nonetheless, we continue to view the sector as a significant target for investment, with supportive public policies such as the Inflation Reduction Act in North America enhancing the financial viability of clean energy positions. We maintain our focus on projects that displace lower efficiency energy sources like coal that best match the long-term liabilities of our business model. We are also implementing restrictions on the financing of thermal coal, with the recognition that all viable science-based pathways depend on abatement of emissions from thermal coal and a move towards fuels with lower emission intensities. Going forward, Manulife will cease new project financing to thermal coal mining and unabated coal-fired power generation across all jurisdictions in which we operate, with specific exceptions for projects that are intended to reduce or replace coal consumption. In addition, we will reduce exposure to thermal coal miners and utilities lacking credible plans to decarbonize in North America and Europe. Listed Debt and Equity, Excluding Sovereign Bonds, in All Other Sectors Target: Reducing temperature from 2.9 degrees in 2019 to 2.5 degrees by 2027, based on issuer ’s total value chain activities (Scope 1, 2, & 3 emissions). Target: Reducing temperature from 2.7 degrees in 2019 to 2.3 degrees 43 by 2027, based on issuer ’s operational activities (Scope 1 & 2 emissions). As a global business, we operate in a highly regulated environment that limits our risk appetite and focuses our portfolio on fixed-income strategies. Listed securities, debt, and equity form a significant component of our asset mix. In some cases, Manulife may be a passive investor, utilizing indexing strategies that optimize our risk adjusted returns. In these instances, our ability to influence investment decisions may be limited. Transition activities: Utilizing a temperature score approach for our listed debt and equity positions reflects the diverse sectoral mix of this portfolio, enabling us to balance our portfolio across sectors with a single unifying metric. For the purpose of target-setting, Manulife has utilized SBTi’s temperature scoring methodology, which assigns a temperature score to issuers based on how fast and how far those issuers have committed to decarbonizing their portfolio. As a measure of the future ambition and commitments of the companies in which we invest, it is a forward-looking metric that can be translated into qualitative measures for our analysts to incorporate into their existing coverage of issuers. This is important considering ongoing limitations to accessing reliable emissions disclosures by issuers. While they are not without their limitations, temperature scores provide another avenue for us to consider alignment to science-based pathways for warming, to complement our ongoing work to monitor the real performance of companies against their commitments through financed emissions footprinting. We will continue to seek opportunities to invest in listed issuers that have made robust and credible emissions commitments, in alignment with the best available science-based pathways. Although our avenues for engagement may be limited for fixed-income instruments, the General Account is in the process of assessing issuer engagement strategies that can benefit our temperature score and, more importantly, contribute to real word decarbonization. These targets represent approximately 42% of our total General Account invested assets, including our direct real estate, agriculture, and timberland holdings managed by Manulife Investment Management, through 100% coverage of our operational emissions in Manulife’s operational target. A notable asset class exclusion is sovereign bonds, which represent 19% of our baseline invested assets, for which no specific financial institution-oriented target-setting guidance is available and accounting methodologies remain under development. Manulife has selected a 2019 base year for target-setting, as 2020 and 2021 were atypical due to the COVID-19 pandemic and associated restrictions. Financing the Transition Achievement of our goals to decarbonize our financed emissions relies on many factors. The scientific basis of global pathways to limit warming that underly the SBTi’s approach requires an unprecedented scale of cooperation and collaboration among actors. First and foremost, we rely on the ability of policymakers to drive significant and transformative interventions in the real economy. 42 Project finance is defined in accordance with SBTi’s FI guidance, as an on-balance sheet loan or equity (private) with known use of proceeds that are designated for a clearly defined activity or set of activities, such as the construction of a gas-fired power plant, a wind or solar project, or energy efficiency projects. 43 Based on the well-below 2 degree pathway and timeframe defined by the SBTi in its Financial Institution Guidance version 1.0 published February 2022." 29