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 Transition activities for our General Account also take into account our presence in emerging markets, as we have a substantial and growing footprint in Asia. The concept of a just transition to a lower carbon economy in this region is particularly critical to our success. We believe facilitating the transition to a lower carbon economy is critical to our success as it impacts our customers. A just transition minimizes the impact on affordability and accessibility of energy for everyday people, while maximizing social and economic opportunities in these regions. As such, we intend to focus on issuer contributions to real world decarbonization, as opposed to a purely exclusionary or divestment-based transition strategy. We intend to avoid “short-termism” and incentivization of capital flows and financing structures that may create injustices globally, including collateral damage or counterintuitive impacts on climate. We believe activities taken by companies such as ours to set and achieve targets will require the presence of a sufficient regulatory and political environment in order to enable real world decarbonization at the level and pace to limit global warming meaningfully. As part of our transition plan, we have established near term emissions reductions targets to support our commitment to net zero financed emissions by 2050 and we are evaluating ESG risks in our ratings process for credit analysis. Within Manulife Investment Management’s Timberland and Agriculture businesses we built a proprietary Sustainability Toolkit to systematically identify, assess, and score ESG components in every deal we consider. Climate change impacts to an asset are considered, as well as emissions and carbon sequestration associated with that asset. Historically, our consideration has been primarily qualitative, but in 2022 we upgraded our process to result in a quantitative score. Additionally, following a thorough due diligence process, we invested in a third-party analytical platform that enables us to systematically evaluate climate risks under various scenarios across all our major investment regions. Those evaluations will feed directly into our Sustainability Toolkit and our underwriting models more generally. As a global real estate manager, identifying and monitoring various climate-related risks are essential to making better-informed decisions and ensuring our Manulife Investment Management’s Real Estate business and buildings are built for the future. We consider the following physical and transition risks as having potential impacts on our business across either short-term (1 to 5 years), medium-term (5 to 10 years), or long-term (beyond 10 years) time horizons. Within our Real Estate group, we have identified several transition and physical risks and opportunities across various timeframes that are outlined in our Manulife Investment Management Real Estate TCFD Report 52 (pages 7-8). The identified transition risks include regulation, market, technology, and reputationals risks, while the identified physical risks include a set of acute and chronic risks. Within our Manulife Investment Management Infrastructure investments we believe our investments in solar, wind, battery storage, and other renewable energy assets as part of our portfolio and sector allocations are important components of a lower carbon electricity system and how we consider transition risk within our portfolio. As guided by our Infrastructure Sustainable Investing Framework, our Manulife Investment Management Infrastructure teams regularly assess material ESG risks and opportunities for each new investment as part of the investment due diligence process. Physical and transition risks and opportunities are assessed during due diligence processes and post-investment monitoring, where it is material to the investment, including collecting and monitoring performance on relevant KPIs. We have developed climate risk assessment guidelines to formalize investment teams’ processes for assessing physical and transition risks during due diligence and have brought in a third-party tool to conduct physical risks assessments on our funds and portfolio assets. We continue to enhance these capabilities and processes in 2023. During sustainable investing due diligence, our Manulife Investment Management Private Equity and Credit teams identify and assess ESG considerations specific to the potential investment, including material climate-related risks and opportunities. Our Sustainable Investing team helps inform sustainable investing due diligence by providing in-depth research on potentially material climate change factors, including the identification of climate adaptation and mitigation opportunities, physical climate impacts, and transition risk exposure. In 2022, we quantified Private Equity and Credit’s estimated carbon footprint and continued to collect climate-related metrics, including GHG emissions, through our annual ESG reporting campaign. We also continued to identify and assess ESG considerations specific to the potential investment, including climate-related risks and opportunities where material as part of the due diligence process. 52 For additional information regarding Manulife Investment Management’s ESG investment capabilities for institutional investors only, please visit www.manulifeim.institutional/sustainability . 39