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Our Journey to Net Zero Builds on Our Mission: This Target

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Our Journey to Net Zero Builds on Our Mission: This Target To be an active contributor in the transition to a world where net zero carbon emissions is a reality, Our Journey we will continue to take action to reduce the carbon footprint of our operations. • We’re proud to share we are net zero in • Manulife is committing to reduce absolute our operations, uniquely positioned due to scope 1 and 2 emissions 35 per cent by Operations: to Net Zero the carbon removals from our substantial 2035. We will take steps such as enhanced Substantially reducing owned and operated forests and farmland efficiency measures, fuel switching, and use of emissions to lessen outweighing emissions. onsite renewables in our buildings to achieve our footprint Our journey to net zero builds on our mission: this target. Decisions made easier. Lives made better. By addressing climate change, we move closer to fulfilling our mission and giving We acknowledge the important role continued progress on financed emissions will have on our our customers the confidence to plan for enterprise-wide climate impact. the future. We recognize the link between environmental and financial stewardship. • We are committed to steering our investment • We are taking a sector-based approach to set Our vast natural resource holdings have portfolio to be net zero by 2050. short-term targets, focusing first on heavy emitting industries like power generation. enabled us to realize net zero emissions Investments: • We will continue to grow our $39.8B in green in our operations, and we are uniquely Actively investing for investments, such as renewable energy and • Manulife has committed to the Science Based positioned in our sector to accelerate the a sustainable future energy-efficient real estate. Targets initiative, which will guide target use of nature-based solutions in the fight setting, measurement, and progress reporting. against climate change. We are actively incorporating climate change considerations into our decision making, As a global life insurer and asset manager, we understand the connection between our environment and including how we manage our operations, human health. We’re in a unique position to provide nature-based solutions to mitigate climate change. how we make investment decisions, and how That’s why we’re accelerating the pace of innovation around developing products that both solve investor we develop and offer financial products and needs and help create a more sustainable future. services. As a business deeply rooted in Products long-term thinking, we are made stronger • Manulife Investment Management will continue • Through our capabilities in timberland and and Services: to give clients sustainable investing options agriculture, we will accelerate development of when our people and planet thrive. Contributing to such as the Sustainable Asia Bond strategy investment strategies for those interested in climate change and Global Climate Pooled strategy. nature-based solutions that capture even more mitigation carbon per dollar invested. and resilience • We are dedicating significant resources to further analyze the impact of climate on morbidity and mortality. For more information, Not all investments available to all investors in all jurisdictions. read Manulife’s Sustainability Report All figures are as at December 31, 2020 1. Why is Manulife making these Manulife Investment Management’s Real Estate platform 3. What constitutes your Frequently commitments now? develops and manages commercial real estate for thousands green investments? of customers around the globe. Its over 64 million square Making sustainable business decisions is more than just foot portfolio includes office, industrial, retail, and multi- Manulife is proud to hold $39.8 billion in green investments Asked the right thing to do — it’s the smart thing to do for all of family space strategically located in major metropolitan that support a net zero future, such as renewable energy our stakeholders. As a company, we have been on this markets. Our employees, in collaboration with our tenants and energy-efficient buildings — a portfolio that continues journey for a long time. For instance, Manulife Investment and local communities, work to provide healthy and efficient to grow. Guided by the International Capital Markets Questions Management was a founding member of the Climate workplaces — today and into the future. Our approach to Association principles , we have added two new categories Action 100+ and Manulife was the first global life insurer sustainability in real estate is based on responsible property to our green investments in 2020: clean transportation and to issue a green bond in 2017. investment and aligns with global standards, including the sustainable water management. We have also added green Global Real Estate Sustainability Benchmark (GRESB). commercial mortgages to the green building category. Hancock Natural Resource Group (HNRG), a Manulife We incorporate ESG considerations into all our investment See pg. 44 of our 2020 Sustainability Report for a Investment Management company, creates value management and operational practices across the entire detailed breakdown. through the sustainable management of natural resource real estate value chain, from construction and acquisition investments. We manage our assets as good stewards of of an asset through all aspects of property management. Manulife Investment Management’s Real Estate manages the land, the environment, and the community on behalf of Over 81% of Manulife Investment Management’s global real 64 million square feet of real estate, in 9 countries across our investors. With our forestry and farmland businesses, estate portfolio is green certified by either Leadership in 25 cities. Over 81% of our global real estate portfolio we believe we’re in a unique position to continue to provide Energy and Environmental Design (LEED), Buildings Owners is green certified, with 45% of our waste diverted from nature-based solutions to mitigate climate change: and Managers Association (BOMA Best), or Energy Star. landfill, and 45,300 MWh of renewable energy purchased. • We manage over 5.8 million acres of forestry and farmland globally — 100% of our managed forests 2. How will Manulife measure progress are certified sustainable by third parties. toward these goals? When will • HNRG has conserved over 472,000 acres through Manulife share more about its path its Sensitive Lands Program. to net zero? • There are ~1.6B trees on our properties in the US, Canada, New Zealand, Australia, and Chile — To ensure these targets have a meaningful impact, we have and we’ve planted 1.2B over the past 36 years. committed to the Science Based Targets initiative, to guide and validate our target setting, measurement and • Over the past 5 years we’ve removed an average of progress reporting. 2.24 million tons of CO2 from the atmosphere annually. We are taking a sector-based approach to assess our own We’re actively creating innovative products to contribute investments, focusing first on heavy-emitting industries, to this market. Over the last year, Manulife Investment such as power generation, to establish near term emissions Management has launched two ESG thematic investment reduction targets. solutions, including Sustainable Asia Bond and Global Climate which we believe will create long-term value for our stakeholders and communities. 4. What does it mean to have In accounting for these removals, we use a conservative 5. What climate related products are Frequently net zero operations? approach by only including direct removals from you planning on offering? investments owned by Manulife’s insurance general Net zero means achieving a balance between the account and not the timber and agriculture investments Recognizing the benefits of a transition to a net zero world Asked greenhouse gases emitted into the atmosphere and those owned by third-party investors. However, we do include and a healthier planet, the products Manulife offers can removed. We’re proud to share we are net zero in our emissions associated with third-party owned timber and empower customers to make their own sustainable choices operations, uniquely positioned due to the carbon removals agriculture investments in our overall carbon footprint. and build resilience in the face of climate change. Questions from our substantial owned and operated forests and All emissions and removals are 5-year rolling averages farmland outweighing emissions. In fact, Manulife removes because of the natural variation of biogenic removals and Through the expertise of its global asset management (continued) more carbon from the atmosphere than it emits volatility of emissions from year to year. By using a multi- business, Manulife Investment Management will also in its operations. year average, we reflect the activities of our business over continue to work closely with our customers to develop time and how we prioritize mitigating our overall climate and enhance the integration of ESG through our products Our operational emissions include scope 1 and 2 impact. This is consistent with the Intergovernmental and services. emissions, as well as the following scope 3 emissions: Panel on Climate Change (IPCC) reference to “a specified Over the last year, Manulife Investment Management business travel, waste, data centers, leased properties, period” in its definition of net-zero as that point when has launched several ESG thematic investments, contractor fuel use, and paper. anthropogenic emissions of greenhouse gases to the the first of which
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