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 Climate-related Risks and Opportunities In addition to our journey to net zero, we are taking steps to improve the resilience of our business in the face of a changing climate. As a long-term underwriter and investor, climate-related risks and opportunities, including changes in the physical environment and policy and technological changes associated with the transition to a low carbon economy, are strategically relevant and, in some cases, may become material over time. The Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations allow for consistent and comparable reporting on climate-related risks and opportunities. The TCFD Recommendations are structured around four pillars: Governance, Strategy, Risk Management, and Metrics and Targets to support effective disclosure pertaining to each pillar. We have been a supporter of the TCFD since 2017 and are committed to adopting and aligning our disclosures to its framework and recommendations. TCFD Pillar/Recommendation Manulife Action Summary Governance (pages 11-14, 37) Describe the board’s oversight of climate-related risks and opportunities. The BRC oversees the management of our principal risks, and our programs, policies, and procedures to manage those risks. Oversight of Manulife’s ESG framework, including matters related to climate change, is included in the CGNC mandate. The committee receives regular updates on relevant ESG topics, including Manulife’s Impact Agenda and Climate Action Plan. Describe management’s role in assessing and managing climate-related risks and opportunities. Climate-related risks are governed at various levels across the enterprise. The roles of the CGNC, Executive Sustainability Council (ESC), ESG CoE, Climate Change Taskforce, ERC, and BRC consider climate-related risks and opportunities through the ongoing monitoring and reporting of emerging risks and are supported by various sub-committees and oversight functions. Strategy (pages 37-42) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. We monitor climate-related risks and opportunities within our business strategy over short (1-5 year), medium (5-15 years), and long (beyond 15 years) time horizons. We do not view climate-related risk as a standalone risk category but as a transversal risk that can manifest across all our existing principal risk types, including strategic, market, credit, product, or operational risk, as well as legal and reputational risk. Product and market opportunities associated with transition to a low-carbon economy continue to be considered. Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. We are a long-term oriented underwriter and investor — monitoring and evaluating the impacts from climate-related risks and opportunities remains ongoing and continue to be embedded in existing business segment strategies and group functions, including Global Risk Management, Manulife Investment Management (timberland, agriculture, real estate, infrastructure, private equity and credit, public markets) and our General Account. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Climate-related scenario analysis is conducted at the business unit level to understand implications of climate-related risks – see pages 40-42 for business specific approaches. Risk Management (pages 40-43) Describe the organization’s processes for identifying and assessing climate-related risks. We have established an initial inventory of climate-related risks and their potential impacts on Manulife. Each risk statement is categorized by both our principal risk types and aligned to the TCFD framework (e.g., physical and transition risks). We also continue to enhance our scenario analysis capabilities and explore external tools to identify and assess climate-related risks. Describe the organization’s processes for managing climate-related risks. The inventory provides a basis to perform assessments to better understand our key inherent risk exposures across the organization and how they impact different lines of business and their business strategies. Climate-related risks continue to be managed at business unit level as Global Risk Management continues to enhance risk management practices. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. We monitor climate-related risks through our emerging risk framework and regularly engage with senior leadership to discuss the prioritization and feasibility of contingency planning actions associated with various emerging risks, including environmental risks. We also expanded our Environmental Risk Policy to articulate Manulife’s risk appetite related to environmental risks and will continue to pursue approaches to further integrate into our enterprise-wide risk appetite framework. Metrics and Targets (pages 15, 20, 25-26, 29-31, 44, 83-84) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. We use the following metrics across various business segments: scope 1 emissions, scope 2 emissions, scope 3 emissions, exposure to carbon-related assets, green investments, climate value at risk and portfolio warming potential, and sovereign climate risks. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. See pages 83-84 for scope 1, scope 2, and scope 3 emissions disclosures. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. We are committed to achieve net zero financed emissions within our General Account portfolio by 2050 and to reduce our absolute scope 1 & 2 emissions by 40% by 2035. As part of our transition plan, we have established near-term emissions reductions targets to put us on the path of meeting our commitment of net zero General Account financed emissions by 2050. 36