2022 ESG Report Introduction ESG at Manulife ESG Governance Sustainable Investing ESG in Asset Management ESG in Asset Ownership Partnerships and Engagements Environmental Social Governance Performance Data Abbreviations and Acronyms Our private equity and credit teams conduct an ESG assessment of each investment as part of their due diligence and incorporate findings into their fundamental analysis. The outcomes of our sustainable investing due diligence are documented in the final investment memorandum, which is presented during the investment committee approval process. Sustainable investment documentation in the investment memorandum includes a summary of material sustainability factors, identification and discussion of risks, areas for improvement, areas not assessed, and areas in which the portfolio company is already well advanced. Once an investment is made, our teams work closely with their investment partners to monitor all material items that might affect the investment or company, including material sustainability factors. The investment teams leverage a variety of tools such as shareholder rights, board representation, and our broader relationships with investment partners, who typically control the underlying portfolio companies, to ensure material sustainability issues are not overlooked. Over 90% of our assets under management in public equity and public fixed-income strategies were integrating ESG factors under our proprietary integration assessment framework. 22 22 Integration is based on Manulife Investment Management’s Proprietary Integration Progression Levels (IPL), which measures investment teams progress in ESG integration. We look to incorporate material ESG considerations throughout the stages of our investment and asset ownership lifecycles, taking into account the characteristics of the asset class and investment process in question, as well as industry and geography, among other factors. Each investment team operates in different markets and with different nuances to its approach to investing. Accordingly, each team integrates ESG factors into its investment process in a manner that best aligns with its investment approach. Public Markets We believe organizations with strong environmental, social, and governance characteristics generally make better investments. Companies that prioritize sustainable business practices are usually more future-ready, resilient, and efficient. We execute integration of ESG factors across our products through multiple channels including investment research, data, risk reporting, and active ownership. In public markets, our strategies integrate ESG factors across different public asset classes. As a preliminary step in our process, we receive and review ESG scores, ratings, and data from several external data vendors, which creates a more comprehensive third-party assessment of constituents. Given our boutique investment framework, each investment team operates in specific markets, considering different nuances in their investment approach. Accordingly, each team integrates ESG factors into its investment process in a manner that best aligns with its investment approach. Each team bears responsibility for the evaluation of ESG factors throughout the due diligence and decision-making processes in the pursuit of risk-adjusted returns and capital preservation, with ESG integration in fixed-income, listed equity, and multi-asset solutions. Fixed income • Our approach to fixed-income ESG integration is adapted to identify the material issues within each industry. In addition to the materiality of ESG risks, our investment professionals seek to assess the timing of likely impacts. Listed equity • In addition to using internal and external ESG data to identify higher- and lower-risk stocks, our teams actively engage with company management to assess a company’s exposure and potentially help enhance its resiliency against different types of ESG risks. This insight can help shape the teams’ modeling and define sensitivities around their estimates of fair value. Asset allocation • We believe value can be attained through targeted integration. Our asset allocation team achieved our highest level of ESG integration 15 in 2022 and uses a framework for evaluating aspects of ESG risk and opportunity that aligns with their investment process. The framework consists of several activities including macroeconomic analyses of ESG topics and incorporation of ESG adjustments and scenarios into economic and fundamental market inputs driving asset class forecasts. Engaging as Active Owners Ongoing engagement with portfolio companies is an essential part of how we seek to enhance the resiliency of our clients’ assets, including where we manage assets on behalf of the Manulife General Account. Our engagement also strives to achieve real change in addressing key sustainability issues such as climate change. As investors, we play a critical role in encouraging companies to adopt sustainable business practices that promote stable, long-term growth and reduce the potential impact of material sustainability risks over time, which we believe, in turn, creates financial value. We see collaboration with other stakeholders as a powerful tool to encourage iterative development of sustainable operating environments. We can amplify our voice by joining with peers to engage issuers, but also to enable systemic change by influencing development of robust disclosure frameworks and standards. This includes using our influence during proxy voting when considering shareholder and management proposals. Offering Sustainable Thematic Strategies We continue to develop our suite of thematic sustainable investment products, which currently includes our Sustainable Asia Bond Strategy, Sustainable Asia Equity Strategy, Climate Action Bond Strategy, and Climate Action Equity Strategy. These strategies use proprietary screening techniques and stewardship practices to offer investments in line with sustainability criteria. We have also developed the capabilities to offer sustainability-aligned exclusions and screens on client request to support their sustainability needs and execute on specific investment policies. 17