Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community wellness
• Organizational resilience
• Environmental responsibility
• Exemplary governance and risk management

Environmental Achievements

• Provided funding of approximately $501 million to develop clean and renewable energy in Canada and the U.S. in 2015

Social Achievements

• $13 million commitment to-date to Diabetes Research and Prevention
• Achieved platinum certification from Excellence Canada

Governance Achievements

• Ranked #1 in The Globe and Mail Report on Business’ 2015 Board Games
• Recognized with the 2015 Ethical Boardroom Best Corporate Governance – Financial Services – North America award

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FTSE4Good® Index

Awards & Recognition

• 2015 Global 100 Most Sustainable Corporations in the World
• Reader’s Digest Most Trusted Brand™ award (7th year in a row)
• 2015 Ethical Boardroom Best Corporate Governance – Financial Services – North America award
• Corporate Knights’ Best 50 Corporate Citizens in Canada (10 years)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity and Inclusion
• Climate Action

Environmental Achievements

• Achieved 20% reduction in GHG emissions per square foot by 2019 (ahead of schedule)
• Set a goal of carbon-neutrality for global operations beginning in 2021

Social Achievements

• Reinforced commitment to diversity, equity, and inclusion
• Signed the Black North initiative
• Invested an additional $1 million in social change initiatives
• Donated 600,000 surgical masks to hospitals in Canada and more than $2 million to support communities impacted by the COVID-19 pandemic
• Donated to food banks and provided hand sanitizer in Asia; donated digital life insurance coverage in the Philippines and China to medical staff

Governance Achievements

• Updated Code of Conduct in 2020 to reinforce key principles and values
• Governance processes and practices are consistent with the New York Stock Exchange corporate governance rules for U.S. publicly-listed companies

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and related impacts (market volatility, supply chain disruptions, etc.)
• Competition from insurance companies, banks, asset managers, and other service providers
• Changes in legal and regulatory environment
• Environmental and social risks (climate change, etc.)
• Sustained low interest rate environment

Mitigation Strategies

• Proactive communication with clients (premium payment grace periods, extended coverage, etc.)
• Enhanced digital distribution and communication tools
• Business continuity processes
• Community support initiatives
• Investment in innovative digital solutions
• Adaptation of plans and acceleration of growth through new opportunities
• ESG integration into investment processes
• Reinsurance to limit losses and minimize exposure to significant risks
• Implementation of IFRS 17 and 9 transition program

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Changes in regulation, cost of capital, consumer preferences, and competition from renewable energy companies

Opportunities

• Sustainability bonds
• Investments in sustainable real estate, infrastructure, and renewable energy

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 13

Our sustainability plan is underpinned by our Purpose of helping our Clients achieve lifetime financial security and live healthier lives, and is integrated into our business activities. We focus on three areas where we have the greatest opportunity to have a positive impact on society, while creating competitive advantage for our business.

Sustainable Products & Innovation

• Sustainability bond

Awards & Recognition

• The Canadian Green Building Council’s national Green Building Pioneer Award (BentallGreenOak)

Environmental Metrics

ESG Focus Areas

• Increasing financial security
• Fostering healthier lives
• Advancing sustainable investing
• Operating as a trusted and responsible business

Environmental Achievements

• Achieved CarbonNeutral® company certification across our global operations
• 50% absolute reduction of GHG emissions in our operations by 2030, relative to 2019 (target)

Social Achievements

• 89% employee engagement score, exceeding the global financial services norm
• Launched Diabetes Signature Solutions pilot program to help Canadians with diabetes get access to affordable insurance
• Introduced new resources to support group benefits Clients and help prevent or address mental health issues (e.g., Mental Health Coach)
• Increased funding support for Indigenous communities in Canada
• Launched scholarships for Black and Indigenous students in Canada

Governance Achievements

• 42% of Sun Life’s Board of Directors self-identify as women
• 25% of Board members self-identify as belonging to an underrepresented group
• Updated Supplier Code of Conduct to strengthen expectations on supplier alignment with Sun Life’s sustainability commitment

Climate Goals & Targets

Environmental Challenges

• Ongoing pandemic affecting stakeholders and business activities
• Accelerating inclusion and pressure to diversify boards and executive teams
• Cybersecurity challenges amplified by remote work
• Mental health crisis affecting employees and clients
• Climate urgency and need for stronger emission cuts and adaptation initiatives

Mitigation Strategies

• Delivered nearly $900 million in COVID-19-related health and life insurance benefits
• Deepening diversity, equity and inclusion efforts through focused training and inclusive workplaces
• Evolving cyber defenses against emerging threats
• Increased mental health investments and initiatives for employees and clients
• Stepped up climate action plans and disclosures, committing to net zero by 2050

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Certifications: CarbonNeutral®

Third-party Assurance: External and independent limited assurance of Scope 1, 2 and selected Scope 3 data for GHG emissions

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 13

Sun Life's sustainability plan focuses on the five SDGs where they believe they can have the greatest impact.

Sustainable Products & Innovation

• Sun Life Malaysia Global Sustainable Fund
• Sun Life KBI Sustainable Infrastructure Private Pool

Awards & Recognition

• CarbonNeutral® certification
• Platinum recipient of the Canada Awards for Excellence for Mental Health at Work
• Most trusted brand in the Philippines

Environmental Metrics

ESG Focus Areas

• Increasing Financial Security
• Fostering Healthier Lives
• Advancing Sustainable Investing
• Operating as a Trusted and Responsible Business

Environmental Achievements

• 36.9% reduction in greenhouse gas emissions across our global corporate real estate, data centres and business travel (2019 baseline)

Social Achievements

• Achieved gender parity on our Board of Directors
• 89% employee engagement score (third consecutive year)
• New surrogacy, adoption and fertility services benefits added to group benefits plans in Canada
• $46.7 million committed to diabetes awareness, prevention and care globally since 2012, including $5.7 million in 2022
• DentaQuest added ~3 million members increasing access to dental care for low-income people in the U.S.

Governance Achievements

• Achieved gender parity on our Board of Directors

Climate Goals & Targets

Environmental Challenges

• The global regulatory environment is dynamically evolving and sustainability disclosure requirements across geographies are not consistent.
• Sustainability is a complex and rapidly evolving field.
• As a global company, it’s not always easy to respond swiftly to the diverse and changing needs around us.

Mitigation Strategies

• Focus on measuring impacts and setting and tracking metrics that give a clear sense of the value we deliver for both our business and society.
• Building internal capabilities and a strong, energized, and specialized team to lead the transformation.
• Strengthening transparency and increasing sustainability disclosures and reporting.

Supply Chain Management

Supplier Audits: 100% of critical suppliers assessed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: CarbonNeutral®

Third-party Assurance: KPMG LLP (limited assurance on Scope 1, 2 and selected Scope 3 data for GHG emissions)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 13

Our work is aligned to these SDGs where we believe we can have the greatest impact.

Sustainable Products & Innovation

• Sun Life One Plan digital tool
• Prospr by Sun Life hybrid advice solution
• Benefits Explorer
• Stellar ESG-focused savings plan
• Sun Life Malaysia Islamic Global Sustainable Fund

Awards & Recognition

• 2022 Insurance Technology Impact Awards
• LifeWorks Workplace Strategy Index for Mental Health
• Best Workplaces™ for Mental Wellness
• Principles for Responsible Investment assessment (5-star rating)
• GRESB Real Estate Benchmark (Gold Recognition)
• ENERGY STAR® Canada Awards
• ENERGY STAR® Partner of the Year–Sustained Excellence award
• Green Lease Leaders program (Gold Recognition)
• Best Workplaces™ for Inclusion
• Women Lead Here
• Best Workplaces™ for Women
• Human Rights Campaign Foundation Corporate Equity Index (100% score)
• Bloomberg Gender-Equality Index
• Alida Delta Award

Environmental Metrics

ESG Focus Areas

• Increasing financial security
• Fostering healthier lives
• Advancing sustainable investing
• Building resilience to climate change
• Operating as a trusted and responsible business

Environmental Achievements

• Maintained CarbonNeutral® company certification across our global operations
• 32% of global electricity consumption from renewable sources such as solar and wind

Social Achievements

• 95,874 financial roadmaps created for Clients in Canada using the Sun Life One Plan digital tool, up from 45,822 in 2022
• 2.4 million lives covered through affordable insurance policies issued in Asia
• $52.4 million committed to the fight against diabetes globally since 2012, including $5.7 million in 2023
• Enhanced inclusive benefits and resources for employees and their families in Canada, the U.S. and Asia

Governance Achievements

• Completed Phase 2 of the Progressive Aboriginal Relations certification in Canada
• Introduced a Sustainability Modifier to our Senior Executive Sun Share Unit Plan

Climate Goals & Targets

Environmental Challenges

• Concerning climate trajectory
• Increasing sustainability reporting regulations
• Growing scrutiny over sustainability practices
• Intensifying affordability crisis

Mitigation Strategies

• Integrating climate action into everything we do
• Investing in sustainable innovation
• Preparing to comply with federal regulations related to ESG topics
• Delivering consistent and transparent information on ESG topics
• Continuously increasing access to insurance and wealth products, and health and dental care

Supply Chain Management

Supplier Audits: 100% of critical suppliers assessed against Supplier Code of Conduct

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: CarbonNeutral®, ISO 14001:2015 (SLGS India), ISO 45001:2018 (Sun Life Global Solutions India)

Third-party Assurance: KPMG LLP (limited assurance on Scope 1, 2, and selected Scope 3 GHG emissions data)

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 13

Our work is aligned to the following SDGs where we believe we can have the greatest impact: #3 Good health and well-being, #5 Gender equality, #7 Affordable and clean energy, #8 Decent work and economic growth, #13 Climate action

Sustainable Products & Innovation

• SunJoy and SunGift (ESG-focused insurance and savings plans)
• Sun Life Acadian International Equity Fund
• Sun Life Net Zero Target Bond Fund
• SunGuardian, SunGuardian (Care Version) and SunProtect (ESG-focused whole life protection plans)

Awards & Recognition

• Corporate Knights’ 2024 Global 100 Most Sustainable Corporations
• Dow Jones Sustainability North America Index
• FTSE4Good Index
• Parents’ Choice Awards 2023 (Sun Life Malaysia)
• Great Place to Work® (Canada 2023)
• HR Excellence Awards 2023 Indonesia (Sun Life Indonesia)
• Canadian Marketing Association (CMA) Awards (Sun Life Healthy You)
• Insurance Asia News Country Awards for Excellence 2023 (Singapore)
• Principles for Responsible Investment assessment (Sun Life Assurance Company of Canada)
• GRESB Real Estate Benchmark (BGO)
• ENERGY STAR® certification (Sun Life Waterloo office)
• ENERGY STAR® Partner of the Year–Sustained Excellence award (BGO)
• Green Lease Leaders program (BGO)
• Waterford Chamber of Commerce awards (Sun Life Waterford)
• Women Lead Here
• Bloomberg Gender-Equality Index
• Human Rights Campaign Foundation's Corporate Equality Index (Sun Life U.S.)
• Forbes America's Best Employers for Diversity 2023 (Sun Life U.S.)
• Girls Club Top 25 Company Where Women Want to Work (Sun Life U.S.)
• Parity CertificationTM (Women in Governance)
• Great Place to Work® (SLGS India)
• Avtar and Seramount 100 Best Companies for Women in India (SLGS India)
• Trusted Brand Awards (Philippines)