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 Governance As part of our overall ESG strategy and governance, Manulife sets Board-approved goals for ESG-related measures, which are key components in evaluating our business strategy and company performance. These goals include factors such as climate action and are linked to executive compensation through both company performance goals and individual performance goals. Climate-related risks are governed at various levels across the enterprise. The CGNC oversees Manulife’s ESG framework, including matters related to climate change. The CGNC’s oversight complements Manulife’s ESC. In 2022, the CGNC led an in-depth review of our director education program in light of evolving trends and introduced an additional requirement that directors take specialized education programs in key areas of focus based on committee membership. The ERC and the BRC consider climate-related risks and opportunities through the ongoing monitoring and reporting of emerging risks. The ERC is supported by a number of oversight sub-committees that are increasingly considering climate-related risks and opportunities as part of longer-term business strategy and day-to-day work activities. Business and functional unit heads ensure that material climate-related risks impacting the organization are considered as part of existing risk management strategies and monitoring practices such as due diligence reviews, risk assessments, scenario analysis, business continuity management, and use of reinsurance strategies to limit potential losses. Our practices continue to mature across different areas of the organization. Manulife Investment Management has a Sustainable Investing Committee (SIC) for each of Public Markets and Private Markets business units. Chaired by the respective CEO and with members from their respective leadership teams, each SIC oversees its respective investment teams' sustainable investing activities and supports the implementation of the respective ESG-related policies in accordance with its Charter. Sustainability-related key performance indicators are factored into our annual employee performance review and remuneration metrics. Accordingly, each team is expected to contribute to the company’s advancement in sustainable investing overall and adhere to research processes that integrate sustainability considerations. Please see ESG Governance section above for more information on how climate risk is governed at Manulife. Strategy In 2022, we continued to 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 to better assess the relative significance of potential impacts and how and when actions will be required to address such impacts. Guided by our Environmental Risk Policy , along with business-specific policies, standards, and guidelines, climate-related risks and opportunities are identified and categorized using Manulife’s existing risk taxonomy, specifically across our principal risk types. 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. Climate risk, therefore, is not a new risk, but viewed as a modifier or an accelerator of existing risk types. Failure to adequately prepare for the potential impacts of climate change can have material adverse impacts on our balance sheet or our ability to operate. Climate-related risks are also categorized in alignment with the Financial Stability Board’s TCFD framework to ensure that all significant risks are considered across our lines of business and operations. Consistent with the TCFD, Manulife defines climate-related risks as the potential negative impacts from climate change, which may be experienced directly (e.g., through financial loss) or indirectly (e.g., through reputational harm), as a result of the physical impacts of climate change or the transition to a low carbon economy. We recognize that climate-related risks are inherent across our business, including in our operations and investments. Our Environmental Risk Policy aims to set out an enterprise-wide approach to managing environmental risks, including climate- related risks and nature-related risks, that could result in financial loss or reputational damage to the company. Our Global Risk Management team continues to enhance risk management practices to consider the potential impacts from climate-related risk, including in our investment decision-making processes, life insurance underwriting due diligence, and assessment of operational risks and controls. 37