Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Impact
• Environmental Impact
• Social Impact

Environmental Achievements

• Reduced the intensity of greenhouse gas emissions at our real estate operations by 29 per cent since 2013
• Invested $1.7 billion in renewable energy and energy efficiency projects, for a cumulative total of $12.6 billion since 2002
• Became the first life insurance company in the world to issue a green bond

Social Achievements

• Contributed a total of $43.7 million to community organizations
• Launched five pilot programs focused on improving mental health access for group benefit plan members
• Developed a global diversity and inclusion (D&I) strategy

Governance Achievements

• Manulife’s Board of Directors received the top spot in The Globe and Mail’s Board Games annual governance rankings
• Standard & Poor’s reaffirmed Manulife’s “strong” enterprise risk management rating

Climate Goals & Targets

Environmental Challenges

• Mental health issues impacting employee productivity and disability costs
• Misinformation about life insurance availability for people with diabetes
• Challenges in reducing waste and increasing waste diversion across a global portfolio

Mitigation Strategies

• Launched pilot programs using pharmacogenetics testing and digital technology to improve mental health access
• Commissioned a survey and launched an awareness campaign to address misconceptions about life insurance and diabetes
• Implemented new GHG accounting procedures to ensure more consistent reporting of environmental impacts

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Basement flooding

Opportunities

• Investments in renewable energy

Reporting Standards

Frameworks Used:

Certifications:

Sustainable Products & Innovation

• John Hancock Vitality, Manulife Vitality, Manulife MOVE

Awards & Recognition

• Employees’ Choice Award (Glassdoor)
• Dow Jones Sustainability North America Index
• Reader’s Digest Asia Trusted Brand Gold Awards
• Human Rights Campaign Foundation’s Corporate Equality Index (100%)
• Canada’s Best Diversity Employers
• Canada’s Top Employers for Young People
• Imagine Canada Caring Company
• Greater Toronto Top Employer

Environmental Metrics

ESG Focus Areas

• Economic opportunities
• Health and wellness
• Climate action
• Transition to a low-carbon economy

Environmental Achievements

• $1.0 billion invested in renewable energy and energy efficiency projects
• 51,000+ MWh of green energy purchased
• Issued our 2nd green bond

Social Achievements

• $45.0 million in donations, sponsorships and other types of community investments
• 66,000+ employee volunteer hours
• Launched ManulifeMOVE in Singapore and upgraded the program in mainland China
• Launched an innovative goals-based investing (GBI) tool in Canada
• Launched John Hancock Vitality program for all life insurance policies in the US
• Enhanced John Hancock Vitality with HealthyMind initiative in the US

Governance Achievements

• Activated a sustainability governance structure led by an Executive Sustainability Council
• 42% of independent members of our Board of Directors are women
• Updated Code of Business Conduct and Ethics to strengthen provisions related to human trafficking, freedom of association, and discrimination and harassment

Climate Goals & Targets

Environmental Challenges

• Climate change impacts
• Need to elevate and prioritize future sustainability issues

Mitigation Strategies

• Developing a new sustainability strategy emphasizing key priorities
• Aligning ambitions and actions to the UN Sustainable Development Goals
• Establishing a sustainability governance framework
• Integrating ESG considerations into investment decision-making
• Engaging with companies to encourage sustainable business practices
• Implementing cost-effective measures to reduce water consumption
• Implementing initiatives to reduce paper use

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Shifting weather patterns, rising sea levels, extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Investments in renewable energy, green buildings, sustainably managed timber

Reporting Standards

Frameworks Used: GRI Standards General Disclosures

Certifications: LEED, ENERGY STAR, BOMA BEST, SFI, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3, SDG 5, SDG 7, SDG 8, SDG 10, SDG 13

Manulife supports the SDGs and is considering ways to contribute to their achievement.

Sustainable Products & Innovation

• Manulife Vitality, ManulifeMOVE, John Hancock Vitality, COIN (conscious investing platform)

Awards & Recognition

• Employees’ Choice Award (Glassdoor), Canada’s Top Employers for Young People, Asia Pacific Customer Service Consortium recognition, Reader’s Digest Asia Trusted Brand Gold Awards, Efma−Accenture Innovation in Insurance Awards silver medal, Grand Stevie Award (John Hancock), Talent Board award, Thomson Reuters Lipper Fund Awards, The Asset Triple A Awards, World Branding Awards, National HR Awards, Dow Jones Sustainability North America Index inclusion, Gold Recipient for Mental Health at Work

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Well-being

Environmental Achievements

• Scope 1 & 2 GHG emissions were 1.0 million MtCO2 and we had carbon removals of 3.1 million MtCO2
• 12% reduction in total paper use
• 48.7 million square feet (81%) of our global real estate portfolio has been certified to a green building standard
• Invested $1.2 billion in renewable energy and energy efficiency projects in 2019, bringing our investment total since 2002 to $14.8 billion
• Issued over $1 billion in green bonds

Social Achievements

• Donated and raised over $46 million in support of community initiatives
• 91% participation in our engagement survey
• Launched Manulife Vitality Employee Wellness Program in Canada
• 50% of our Board committees were chaired by women

Governance Achievements

• Established a sustainability governance framework in 2018, including an Executive Sustainability Council and a Sustainability Centre of Expertise
• ESG oversight added to the charter of the Board’s Corporate Governance and Nominating Committee
• Established a Climate Change Working Group

Climate Goals & Targets

Environmental Challenges

• Lower proportion of women at senior levels
• Climate change risks to business, public health, and communities

Mitigation Strategies

• Strengthened leadership and business accountability for diversity
• Developed a comprehensive sustainability strategy incorporating stakeholder input
• Managing climate risk in investments, reducing GHG emissions from operations, supporting renewable energy, embedding sustainability in real estate, and managing forestry and agriculture sustainably
• Participating in CDP and supporting TCFD recommendations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat, coastal flooding, tropical cyclones

Transition Risks

• Climate transition risk (cost of moving to a carbon-neutral future)

Opportunities

• Low-carbon technology innovation

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: Null

Third-party Assurance: Third-party verification of GHG emissions

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 8
• SDG 10
• SDG 13

Strategy aligned to SDGs where Manulife feels it can make the greatest impact

Sustainable Products & Innovation

• Manulife Vitality program
• John Hancock Aspire life insurance for individuals with diabetes
• ManulifeMOVE program

Awards & Recognition

• Bloomberg Gender Equality Index
• Dow Jones Sustainability North America Index
• Numerous other awards listed on page 12

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Well-being
• Diversity, Equity, and Inclusion
• Responsible Investing

Environmental Achievements

• Achieved net zero carbon emissions in operations (due to carbon removals from forests and farmland outweighing emissions)
• 81% of Manulife’s real estate investment portfolio is certified to a green building certification
• 19% reduction in real estate Scope 1 and 2 (location-based) GHG emissions since 2019
• Investment in 38,000 residential solar systems, totaling approximately 272 MW of renewable generation capacity

Social Achievements

• Exceeded 2020 BIPOC 25% new graduate hiring target in North America (40% in Canada and 37% in the U.S.)
• Total corporate donations amounted to $21 million
• Launched Podium, a new global recognition platform
• Improved employee engagement score from 4.04 to 4.27 (80th percentile against Gallup’s benchmark)

Governance Achievements

• Ranked in the top 3 on the Globe and Mail’s annual ranking of corporate boards
• Refreshed and released Global Human Rights Statement and Vendor Code of Conduct
• 46% of independent directors are women
• ESG questions added to Requests for Proposals (RFPs)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, investments, and communities
• Climate change posing threats to business, public health, and communities
• Maintaining data privacy and cybersecurity

Mitigation Strategies

• Robust business continuity plans and digital transformation
• Climate Action Plan with targets for emissions reduction and net-zero investments
• Enhanced security awareness communications for employees
• Development of a Return to Office playbook

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct
• ESG questions in RFPs
• Supplier engagement sessions

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of catastrophic weather events
• Wildfires
• Changes in precipitation and water availability

Transition Risks

• Regulatory developments affecting water use
• Carbon pricing
• Market shifts towards low-carbon investments

Opportunities

• Monetizing soil carbon sequestration
• Expanding into new crops for biofuels
• Investing in renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC (implied)

Certifications: Null

Third-party Assurance: Third-party limited assurance procedure

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Manulife Vitality
• John Hancock Vitality
• ManulifeMOVE
• Sustainable Asia Bond Strategy
• Global Climate Pooled Fund

Awards & Recognition

• GRESB 5-star rating for real estate portfolio
• John Hancock 2020 Best Wellness Employer Gold Certification

Environmental Metrics

ESG Focus Areas

• Empowering Health and Well-being
• Driving Inclusive Economic Opportunity
• Accelerating a Sustainable Future

Environmental Achievements

• Achieved net zero in operations (Scope 1 and 2 emissions)
• 54.6 million sq feet of Manulife Investment Management Real Estate is certified under a sustainable building certification, representing over 80% of our global portfolio
• 100% of our forests were certified under either SFI or FSC, and 100% of our U.S. farmland was certified under Leading Harvest
• 82% of Manulife Investment Management’s real estate investment portfolio is certified to a green building certification
• 1.25 billion trees planted by Manulife Investment Management since 1985
• 61% of Manulife Investment Management managed farms use regenerative practices
• 479,000 acres of land protected by Manulife Investment Management Timberland and Agriculture Sensitive Lands program

Social Achievements

• 31% of Manulife’s VP-level roles and above are held by women
• 54% of Manulife’s independent Board directors are women
• Providing financial services to over 6 million customers in emerging markets
• 2.7 million customers globally have access to our behavioural insurance platforms
• Global customer rNet Promoter Score (NPS): +21 pts
• Launched Manulife Health Voucher Program in Hong Kong
• $21.7 million directly invested in local communities around the world
• $31.8 million invested in employee training and development

Governance Achievements

• Established an Impact Agenda to guide ESG efforts
• Board committee (CGNC) oversees all ESG-related initiatives
• Executive Sustainability Council (ESC) guides sustainability strategy
• Updated General Account’s ESG Guidelines in July 2021
• Enhanced incorporation of climate risk into underwriting

Climate Goals & Targets

Environmental Challenges

• Reducing absolute Scope 1 and 2 emissions by 35% by 2035
• Achieving net zero financed emissions by 2050
• Increasing BIPOC representation in leadership roles by 30% by 2025
• Increasing spend with diverse suppliers by at least 4% by 2025
• Managing climate-related risks and opportunities

Mitigation Strategies

• Developed a Climate Action Plan
• Setting short-term, science-based financed emissions targets
• Implementing various DEI initiatives
• Strengthening supplier diversity program
• Integrating ESG factors into investment decisions and ownership practices

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• ESG screening in Requests for Proposals (RFPs)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Rising temperatures
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts
• Increased costs associated with emissions

Opportunities

• Development of energy-efficient products
• Investment in renewable energy
• Natural climate solutions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, World Economic Forum's Stakeholder Capitalism Metrics

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Initiatives contribute to these goals through various programs and investments

Sustainable Products & Innovation

• ManuVital Care
• Khởi Đầu Bảo Vệ
• John Hancock Aspire™

Awards & Recognition

• Best-of-the-Best Corporations for Inclusion by National Business Inclusion Consortium

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Expanded Environmental, Social and Governance investment offerings with the launch of the Global Climate Action strategy in Europe.

Social Achievements

• Expanded Manulife Vitality program in Canada to new term and universal life insurance policyholders.
• Partnered with GRAIL in the U.S. to offer a multi-cancer early detection test to a pilot group of customers through John Hancock Vitality.
• Rolled out servicing features in ManulifeMOVE app in Asia.
• ManuAcademy digital learning platform enabled onboarding of over 11,000 insurance agents in Asia and delivered over 150,000 training hours.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging market and operating environment.
• Hurricane Ian caused a $256 million charge in the P&C reinsurance business.
• Lower sales in Hong Kong due to weaker customer sentiment and COVID-19 containment measures.
• Lower gross flows and higher mutual fund redemption rates in Global Wealth and Asset Management due to decreased investor demand.

Mitigation Strategies

• Expense efficiency continues to be a key strategic priority.
• Strong capital levels and a LICAT ratio of 136% provide flexibility.
• Repurchased approximately 3.1% of common shares for $1.4 billion.
• Accelerated utilization of ManuAcademy digital learning platform.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Health and well-being
• Inclusive economic opportunities
• Sustainable future
• Diversity, Equity, and Inclusion

Environmental Achievements

• Reduced absolute scope 1 and 2 emissions by 8.7% from 2019 baseline.
• $45.7 billion in green investments held within Manulife's General Account.
• 100% of Manulife Investment Management timberland third-party certified as sustainably managed.
• 90% of real estate investment portfolio certified to green building certification.

Social Achievements

• Launched a new partnership with League to give members a personalized and digital healthcare experience.
• Expanded access to the GRAIL Galleri® multi-cancer early detection test through John Hancock Vitality Program.
• Became the first insurer to offer life insurance for people living with HIV in Indonesia.
• Expanded beneficiary eligibility, allowing customers to appoint a same-sex partner as a beneficiary.

Governance Achievements

• Established a General Account Sustainable Investments Committee.
• Established a regional General Account ESG Council in Asia.
• Published near-term portfolio emission reduction targets aligned with science-based pathways.
• Published Manulife’s Climate Action Plan Implementation Plan Report.

Climate Goals & Targets

Environmental Challenges

• Limited availability of quality emissions and issuer data; variations in measurement methodologies; varying sector-specific decarbonization efforts and our ability to implement decarbonization initiatives; shifting stakeholder and regulatory expectations; evolving economic conditions, technological advancements, and public policies; balancing sustainability commitments with an orderly transition across regions; and strategic, market, reputational, system and environmental risks.
• Incomplete, inadequate, or unavailable data impacting target setting and progress reporting.

Mitigation Strategies

• Relied on external methodologies to guide emissions measurement and target setting.
• Released Climate Action Implementation Plan outlining pathway for achieving ambitions.
• Established decarbonization working groups for timberland and agriculture.
• Piloting decarbonization technologies (hydrogen-powered trucks, biochar).

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct including environmental protection, human rights, and anti-corruption clauses.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to company-owned real assets
• Higher claims experience
• Changes in customer preferences

Transition Risks

• Litigation related to climate-related financial disclosure
• Increase in regulatory requirements
• Sudden changes in valuations of invested assets

Opportunities

• Product and market opportunities associated with the transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, Stakeholder Capitalism Metrics

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 13
• Goal 15

Initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• Behavioural insurance products (Manulife Vitality, ManulifeMOVE, John Hancock Vitality).

Awards & Recognition

• DJSI North America Index member
• CDP Climate Change score of B
• MSCI ESG Rating of AA
• Sustainalytics low ESG risk assessment
• Corporate Knights Global 100

Environmental Metrics

Social Achievements

• Improved customer experience and operational efficiency of Japan contact centre through global contact centre transformation initiatives. AI-enabled enhancements reduced average contact centre handling time by 28% compared with 3Q23. Launched new mobile apps in Vietnam and Indonesia, nearly doubling monthly customer registrations in Vietnam since launch.
• Enhanced Manulife Vitality program mobile app with tailored activity recommendations, resulting in a 9% increase in utilization year-over-year. Provided access to GRAIL’s Galleri® multi-cancer early detection test to eligible John Hancock Vitality members ages 40 to 49.

Climate Goals & Targets

Environmental Challenges

• Impact of Global Minimum Taxes (GMT)
• Less favourable claims experience in Canada in 3Q24
• Lower investment spreads in the U.S.
• Impact from a previously completed reinsurance transaction in the U.S.
• Annual review of actuarial methods and assumptions

Mitigation Strategies

• Expense management resulting in 45.0% expense efficiency ratio year-to-date, in-line with medium-term target of less than 45%
• Strong business growth in Global WAM and Asia offsetting some challenges
• Lower net charge in the provision for Expected Credit Loss (ECL) offsetting some challenges

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Manulife Global Indexed UL PRO
• Signature Indexed Income