Carbon Disclosure Project 2020

TABLE OF CONTENTS

INTRODUCTION 3 EMISSIONS BREAKDOWN 65 Emissions performance 66 GOVERNANCE 6 Board oversight ENERGY 7 68 Management responsibility Energy 9 spend 69 Employee incentives Energy-related 10 activities 69

RISKS AND OPPORTUNITIESADDITIONAL 14 METRICS 70 Management processes Other 15 climate-related metrics 71 Risk disclosure 34 Opportunity disclosure VERIFICATION 35 74 Other verified data 76 BUSINESS STRATEGY 36 Business strategy: Financial CARBONservices 43 PRICING 77 Project-based carbon credits 78 TARGETS AND PERFORMANCEInternal 46 price on carbon 79 Emissions targets 47 Emissions reduction initiativesENGAGEMENT 50 85 Low-carbon products Value 53 chain engagement 86 Public policy engagement 93 EMISSIONS METHODOLOGY 56 Communications 99 Base year Industry emissions collaboration 57 101 Emissions methodology 57 PORTFOLIO IMPACT 102 EMISSIONS DATA Portfolio 58 alignment 106 Scope 1 59 emissions data Scope 2 emissionsSIGNOFF reporting 108 59 Scope 2 emissions data 60 Exclusions 60 Scope 3 emissions data 61 Emissions intensities 64 C0 Introduction

Introduction

(C0.1) Give a general description and introduction to your organization.

Incorporated in 1925, Power Corporation of Canada (Power Corporation or the Corporation) is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms.

Financial Services (approx. 98% of assets) Power Corporation holds substantial interests in the financial services industry through its controlling interest in each of Great-West Lifeco Inc. (Lifeco) and IGM Financial Inc. (IGM) (our major publicly traded subsidiaries).

Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. The company has operations in Canada, the United States and Europe through Canada Life, Irish Life, Empower Retirement and Putnam Investments. It is to be noted that on January 1, 2020, Great-West Life, London Life and Canada Life, and their holding companies, amalgamated into a single life insurance company – Canada Life.

IGM is a leading wealth and asset management company supporting financial advisors and the clients they serve in Canada, and institutional investors throughout North America, Europe and Asia. IGM provides a broad range of financial and investment planning services to help Canadians meet their financial goals through multiple distinct businesses including IG Wealth Management, Mackenzie Investments and Investment Planning Counsel.

Together, Power Corporation’s investments in the financial services sector represent approx. 98% of its consolidated assets.

Other Businesses (approx. 2% of assets) Power Corporation also holds interests in other businesses as well as a portfolio of alternative asset investment platforms, which account for approx. 2% of its consolidated assets.

Power Financial and the Frère Group of Belgium each hold a 50% interest in Parjointco N.V. (Parjointco), which holds their interest in Pargesa Holding SA (Pargesa), a publicly traded Swiss company with indirect interests in companies based in Europe held through Groupe Bruxelles Lambert (GBL). Power Corporation’s indirect economic interest in these companies as at December 31, 2019 is as follows: Imerys (7.49%); adidas (0.94%); Pernod Ricard (1.04%); SGS (2.32%); LafargeHolcim (1.05%); Umicore (2.50%); GEA Group (1.18%); Ontex (2.78%); Sienna Capital (13.88%); Webhelp (8.98%); and Parques Reunidos Servicios Centrales (3.19%). Earlier in 2020, Parjointco and Pargesa announced a transaction agreement to simplify the group structure. Parjointco launched a public exchange offer for all Pargesa shares they did not already own and under which Pargesa shareholders were to receive 0.93 shares of GBL for each Pargesa bearer share they hold. Following the transaction, it is anticipated that Pargesa will be delisted from the Swiss Stock Exchange. Parjointco is expected to maintain approx. the same economic equity interest in GBL of 28%.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 3

Power Corporation has also been investing in and developing its own nonfinancial sector investment platforms agard oldings and Power ustainable Capital (which holds Power nerg). Power nerg currentl has investments in companies that develop, own, and operate solar and wind electricit generating assets in orth merica and companies in the sustainable sector Potentia enewables – a renewable energ producer (%) autilus olar nerg, a .. solar developer and asset manager focused on distributed and utilit scaled generation solar proects (acuired in ul 9) Lumenpulse – a manufacturer of highperformance, specificationgrade L lighting solutions (.%) and Lion lectric – a manufacturer of eroemission vehicles (.%).

n addition to the above, Power Corporation holds a .9% interest in China sset anagement Co.

Power Corporation remains committed to continuing to reduce its impact on the environment, while woring with its group companies as a supportive shareholder in connection with the energ and carbon management strategies the establish and implement.

Power Corporation reports its carbon inventor using a financial control consolidation approach. here financial control exists (as defined in its financial statements), the cope , and emissions reported b Lifeco and G have been rolled up. ote that Power Corporation’s emissions include its head office building in ontral, its leased office in Toronto, and emissions from other properties managed b a wholl owned subsidiar, uare ictoria eal state.

Throughout our CP response, we reference the activities of our group companies, man of whom have filed their own response to the CP, including Lifeco and G. here applicable, please refer to their CP responses for more information.

(C0.2) State the start and end date of the year for which you are reporting data.

tart date nd date ndicate if ou are providing emissions elect the number of past reporting ears data for past reporting ears ou will be providing emissions data for

rom 9 To 9 o ear

(C0.3) Select the countries/areas for which you will be supplying data.

Countrrea

Canada reland nited ingdom of Great Britain and orthern reland nited tates of merica

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 4 (C0.4) Select the currency used for all financial information disclosed throughout your response.

Crrn

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

inania ontro

raniationa atiitis inania sris

(C-FS0.7) Which organizational activities does your organization undertake?

nstin sst anar nstin sst onr nsran nrritin nsran opan

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 5 Carbon Disclosure Project 2020 C1 Governance

C ornan

oar orsit

(C1.1) Is there board-level oversight of climate-related issues within your organization?

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

osition o iniias as pain

oar Coitt sponsiiit or iat an as n assin at t oar to t ornan an oinatin Committee of the Board of Directors. The Committee is responsible for reviewing the Corporation’s progress on Corporat oia sponsiiit C i ins rant iat an topis ain oar orsit or riss an opportnitis inin rant iatrat isss is iportant in nsrin ar proati intiin assssin anain an onitorin s riss an opportnitis aross or irs sinsss or ap in t oar o irtors ri or iatrat isosrs in t nna port rat to sstainaiit riss i or nironnta an spii iat riss

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 7 (C1.1b) Provide further details on the board’s oversight of climate-related issues.

reenc with overnance mechanisms cope of boardlevel oversight lease eplain which climate into which climaterelated related isses are isses are integrated a schedled agenda item

chedled – onitoring  Climaterelated riss and Climaterelated isses are an agenda item at the overnance some meetings implementation and opportnities to or own and ominating Committee meetings where relevant as part of performance of obectives operations its overall responsibilit to monitor the implementation and

 Climaterelated riss and maintenance b management of appropriate policies and

opportnities to or investment controls to manage C riss and opportnities inclding activities climaterelated isses.  Climaterelated riss and rthermore as an active owner of the companies in which we opportnities to or insrance invest we strive to ensre that or governance practices preserve nderwriting activities and enhance shareholder vale in a manner consistent with or  Climaterelated riss and responsible management philosoph. opportnities to other prodcts and services we provide to B having or eectives sit on the boards of or portfolio or clients companies we eercise active ownership throgh reglar engagement with their senior management. This governance model which has been developed over a long period of time allows s to ensre that or investments are being managed in a manner consistent with or responsible management philosoph enabling s to nderstand eisting and potential C riss and opportnities inclding climaterelated isses. r attendance at these Board meetings taes place arterl or more freentl as reired.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 8

rovide the highest managementlevel ositions or committees ith resonsibilit for climaterelated isses

   

a escribe here in the organiational strctre thisthese ositions andor committees lie hat their associated resonsibilities are and ho climaterelated isses are monitored

he Corporation’s Co both members of the Board’s Governance and Nominating

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 9 mpoee incentives

o o rovide incentives for the management of climaterelated isses inclding the attainment of targets

a rovide frther details on the incentives rovided for the management of climaterelated isses

ntited to incentive pe of incentive ctivit incentivied Comment

Corporate ective onetar reard mission redction proects he iceresident Genera Conse is the appointed C ead and eam has direct responsibiit for eecting or C strateg engaging ith staehoders and providing performance reports to the Governance and Nominating Committee hich incdes cimate change issues. A portion of the CSR Lead’s performance incentives are tied to integrating C into or bsiness incding or progress on or energ and carbon impacts

Chief ective onetar reard ther nvestments in cean energ he C of oer nerg or ho oned sbsidiar is fficer responsibe for ensring e achieve heath rates of retrns on or investments in cean energ Compensation of the C is direct tied to the contining groth of the different patforms controed b oer nerg hich is inherent ined and aigned to continos and progressive redction of carbon emissions

ther Cite fficer Nonmonetar missions redction target ncentives for the management of cimate change isses are reard provided b ifeco to its ept C hose anna obectives include oversight on the company’s corporate social responsibility initiatives incding activities being ndertaen to achieve their carbon redction target

Chief is fficer onetar reard ther pease specif Cimate ncentives for the management of cimate change isses are C changereated ris management provided b ifeco to its C ho is compensated based on the effectiveness of the ris management oversight fnction hich incdes providing independent ris oversight of a ristaing activities and embedding a discipined ris management ctre across ifeco he C condcts an anna ris ctre assessment of ifeco eaders as part of the anna compensation process and reports the rests to the Compensation Committee of the Board he assessment incdes a component of compiance ith its nterprise is anagement rameor hich incorporates sstainabiit ris incding cimate change ris

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 10 ntitled to incentive ype of incentive Activity incentivied Comment

Chief nvestment onetary reard ther please specify Sustainable ncentives for the management of climate change issues are fficer C investment opportunities including provided by Lifeco to its C ho is compensated based on the climate changerelated value created through the company’s investment portfolios. nsuring environmental criteria including climaterelated riss and opportunities are considered in its investment decisionmaing related to acuisitions or divestments is part of this mandate hich could have an impact on value creation in investments.

ther CSR onmonetary missions reduction target ncentives for the management of climate change issues are Committee reard provided by Lifeco to its CSR committee members hose annual obectives include eecuting on the company’s CSR initiatives, including activities being undertaen to achieve their carbon reduction target.

ther Corporate onetary reard missions reduction target ncentives for the management of climate change issues are roperties provided by Lifeco to its ice resident Corporate roperties hose variable compensation bonus structure includes eecuting on initiatives to achieve the company’s carbon reduction target.

ther roperty onetary reard ther Ris anagement ncentives for the management of climate change issues are Catastrophe eam provided by Lifeco to its leadership property catastrophe team ho is compensated for identifying optimal property catastrophe cover retrocession reinsurance opportunities ithin defined criteria and considering eposure to property riss including physical climate parameters.

acility anagers onetary reard missions reduction target ncentives for the management of climate change issues are provided by Lifeco to its corporate property managers at L Realty Advisors Inc. that manage the company’s corporate head office and investment properties. They are rewarded through the company’s annual bonus structure for progress on achieving A S certifications hich aligns ith their energy and carbon reduction obectives and includes sustainable procurement considerations. arious property managers of Lifeco are also incentivied through their annual bonus structures for progress being made toards energy reduction targets at buildings and contributions to emissions inventories and reporting.

ortfoliound onetary reard ortfoliofund alignment to climate ncentives for the management of climate change issues are anager related obectives provided by Lifeco to its portfolio fund managers at rish Life nvestment anagers for ensuring the investment fund portfolio is more carbon efficient per asset class than the benchmar.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 11 ntitled to incentive Type of incentive Activity incentivied Comment

edicated onetary reward ortfoliofund alignment to climate Incentives for the management of climate change issues are Responsible related obectives provided by ifeco to their sustainable investing team who wors Investment Staff with the broader euity research and portfolio management team to incorporate S, including climate change, into the investment process. The obectives of this mandate are lined to performance obectives and incentives.

ecutive fficer onetary reward ehaviour change related indicator Incentives for the management of climate change issues are provided by I to its Senior iceresident and Treasurer and ther Advancement of TC iceresident, inance and Corporate Responsibility. Their annual recommendations obectives include integrating climaterelated considerations into the company’s corporate responsibility strategy and initiatives as well as efforts to disclose and report carbon and energy management performance. The iceresident, inance and Corporate Responsibility is cochair for the TC oring roup.

ther nvironment onetary reward mission reduction proect Incentives for the management of climate change issues are Sustainability provided by I to the Senior anager, Corporate Responsibility ehaviour change related indicator anager whose annual obectives include integrating climaterelated ther Advancement of TC considerations into the company’s corporate responsibility initiatives recommendations to reduce emissions, efforts to disclose and report carbon and energy management performance and plans to engage staff in behaviour changes supporting the company’s energy and climate management plans.

Ris anagement onetary reward ehaviour change related indicator Incentives for the management of climate change issues are Staff provided by I to the ice resident, Ris anagement and ther Advancement of TC irector, Ris anagement whose annual obectives include recommendations increasing education and understanding of climate ris with senior leaders through the annual ris discussions with business unit leaders and TC training and implementation planning.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 12 etirement schemes

oes or organiation offer its emloees an emlomentbased retirement scheme that incororates rinciles inclding climate change

e oer an employmentbased omment retirement scheme that incorporates principles including climate change

es as an investment option or some mployees at ieco and are oered employmentbased retirement schemes that incorporate plans oered principles including climate change into seldirected deined contribution employmentbased retirement schemes through the responsible investment options oered to employees by select subsidiary investment management companies such as socially responsible investment unds managed ith an integration approach andor a broerage indo to select sustainable investment options hese options or a subset o them are available or employees at anada ie mpoer etirement and at utnam nvestments (as part of investment options for employees’ 401(k) plans in the USA). ’s operating companies ealth anagement and acenie nvestments oer employees competitive retirement plans including deined beneit and deined contribution pension plans and group registered retirement savings plans ll investment products oered to members in the group and pension plan and all underlying investments in the deined beneit pension plan are managed by asset managers ho are signatories to the supported rinciples or esponsible nvestment ho commit to integrate criteria including climate riss and opportunities into investment processes and to be active oners through engagement and proy voting

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 13 Carbon Disclosure Project 2020 C2 Risks and opportunities isks an opportnities

anagement processes

oes or organiation have a rocess for identifing assessing and resonding to climaterelated riss and oortnities

a o does or organiation define short medim and longterm time horions

ime horion rom o omment (years) (years)

Shortterm 0 hen consiering risks an opportnities e consier the time horions of or ssiiaries ifeco an (representing of or assets). or eample ifeco’s strategy development function does

not formally efine time horions hoever they generally consier short term to e 1 years. ’s shortterm horion aligns ith its nterprise isk anagement () frameork hich consiers risk events that are likely to occr once in a 1 to year perio. e therefore report an inclsive short term time horion representing eteen 0 an years.

eimterm hen consiering meimterm risks an opportnities e consier the time horions of or ssiiaries ifeco an (representing of or assets). or eample ifeco’s strategy evelopment fnction oes not formally efine time horions hoever they generally consier meim term to e years. ’s mediumterm horion aligns ith its frameork hich consiers risk events that are likely to occr once in a to year perio. e therefore report an inclsive meimterm time horion representing eteen an years.

ongterm hen consiering longterm risks an opportnities e consier the time horions of or ssiiaries ifeco an (representing of or assets). or eample ifeco’s strategy evelopment fnction oes not formally efine time horions hoever they generally consier the long term to e eyon years. ’s longterm horion aligns ith its frameork hich consiers risk events that are likely to occr once in a to 0year perio. e therefore report an inclsive longterm time horion representing eteen an years.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 15 b o does or organiation define sbstantive financial or strategic imact on or bsiness

t oer orporation e assess a sustantive financial impact as one tat could materially impact te financials of our usiness en defining parameters for a sustantive financial impact e tae into consideration te factors applied y our susidiaries

ifeco defines sustantive financial or strategic impacts ased on its frameor y taing into consideration te velocity proaility and impact of a ris on its usiness sustantive financial impact occurs ere te folloing conditions occur ig velocity immediate adverse impact on usiness operations and maret valuation and te speed of onset of impact is less tan si monts ig impact greater tan illion impact on earnings or capital and ig proaility plausile scenario ut still unliely greater tan

n alignment it its frameor defines a sustantive financial or strategic impact as one tat as a significant longterm impact on its revenue capital or maret capitaliation ongterm impact is defined as a to year time orion significant longterm ris can also e defined as one it a significant impact on ’s reputation, a significant operational impact, or an enforcement action by a regulator or udicial autority uantifies sustantive ris as a ris tat as te potential to negatively affect ’s market capitaliation y or more

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 16 escribe or rocesses for identifing assessing and resonding to climaterelated riss and oortnities

alue cain isk reuency ime escription of process stages management of orions coere process assessment coere

irect ntegrate ore tan  ort escription of rocess to etermine ic risks coul ae a substantie impact operations into multi once a year term Climate change risks and opportunities are integrated into Power Corporation’s groupie isciplinary risk management processes roug our pruent risk management culture, e ientify,  company eium assess, respon to, an monitor risks an opportunities relate to a ie range of business ie risk term issues an trens, incluing climate cange, ere releant, to etermine substantie management  ongterm impacts process s an international management an oling company tat focuses on financial serices, e recognie tat sustainability trens suc as climate cange coul potentially impact te companies in ic e ae mae inestments e consier climate cange risks an opportunities, ere releant, as part of our irect operations, focusing on companyspecific risks and opportunities, which can include at our subsidiaries’ level: climaterelate regulations goernment incenties tat support reneable energy markets eposure to eater eents tat coul impact our inestments, corporate properties, information tecnology systems, an business continuity plans at office locations ese types of analyses can be furter strengtene by our interactions it te senior management of our subsiiaries an portfolio companies ase stuy of a process relate to pysical risks anor opportunities rom a pysical risk perspectie, our group continues to assess te resilience of our operations to pysical climaterelate risks or eample, our subsiiary ifeco conucts climaterelate operational risk assessments coering its offices an ata centres s part of uarterly an annual operational risk assessments, ifeco reies te impacts of etreme eater eents on its business operations to inform business continuity planning efforts pecifically, in , ifeco ran a climate scenario analysis of one of its ea office campuses in innipeg to stress test eposure to floos an urricanes ase on te risk assessment, it as etermine tat te financial impact oul not be substantie base on te probability an impact on te business, representing less tan of capital an operating epenitures urtermore, it as also etermine tat climaterelate pysical risks are furter minimie gien te inerent iersification of ifeco’s business offices, ata centres an business continuity centres, in anaa, te , an urope ase stuy of a process relate to transition risks anor opportunities rom a transition risk perspectie, our group also assesses te impact of smarter builings an tecnologies or eample, our subsiiary assesse te impact of not transitioning its builings to smarter an more efficient tecnologies to optimie energy efficiency ien ’s relatively small building footprint and the fact that energy costs represent less tan of its operating costs, tese risks ere not consiere substantie to te business

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 17 alue chain isk reuency ime escription of process stages management of horions covered process assessment covered

pstream ntegrated ore than  hort escription of Process to determine which risks could have a substantive impact: into multi once a year term Climate change risks and opportunities are integrated into Power Corporation’s groupwide disciplinary risk management processes hrough our prudent risk management culture, we identify,  company edium assess, respond to, and monitor risks and opportunities related to a wide range of business wide risk term issues and trends, including climate change, where relevant, to determine substantive management  ongterm impacts process s an international management and holding company that focuses on financial services, we recognie that sustainability trends such as climate change could potentially impact the companies in which we have made investments hrough this analysis, we review company specific climaterelated upstream risks at the subsidiary and investment level through our participation on their boards of directors, including with respect to operating costs associated with sourcing lowcarbon products from third parties in our supply chain Case study of a process related to transition and physical risks andor opportunities: rom a transition and physical risk perspective, ifeco through its subsidiary ealty dvisors is committed to reducing the environmental impacts that could occur from the services and products procured from thirdparty contractors and suppliers. The company’s Supplier Risk Management Policy includes ‘Sustainability’ as one of the specific risk principles, which covers climaterelated issues he company assessed the potential costs associated with sourcing cleaner, renewable energy sources and sustainable materials to ensure the efficiency and climate resilience of its assets under management hile important, these ependitures are not substantive to its overall business, given that fee income and related epenses represent less than of ifeco’s overall net income.

ownstream ntegrated ore than  hort escription of Process to determine which risks could have a substantive impact: into multi once a year term Climate change risks and opportunities are integrated into Power Corporation’s groupwide disciplinary risk management processes, which take into consideration the risks of our subsidiaries and  company edium investments hrough our prudent risk management culture, we identify, assess, respond to, wide risk term and monitor risks and opportunities related to a wide range of business issues and trends, management  ongterm including climate change, where relevant, to determine substantive impacts hrough this process analysis, we review companyspecific climaterelated downstream risks at the subsidiary and investment level through our participation on their boards of directors, including with

respect to changing customer demands for products and services, as well as impacts on our investments Case study of a process related to physical risks andor opportunities: rom a physical risk perspective, as part of its annual assessment, ifeco conducts a climate scenario stress test of its general account against a brown climate scenario that assumes an increase in the freuency and magnitude of severe weatherrelated events ased on the review of the asset portfolio, they identified potential areas of vulnerability representing of ifeco’s assets. However, when considered in the context of its ERM assessment framework, taking into consideration risk volatility, probability and impact, these climaterelated vulnerabilities were determined not to be substantive, given the

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 18 alue chain Risk reuency Time escription of process stages management of horions covered process assessment covered inherent diversification of its assets from a geographic sector concentration, and relatively shorter duration of these holdings. s such, it was concluded that the balance sheet remains strong and resilient with respect to climate change scenarios. M identifies physical risks in its investments through the due diligence process. or example, at its nvestors Real Property und, which invests in commercial buildings throughout Canada, physical and environmental assessments are part of the due diligence process when making a decision to purchase a property. The properties in the und are also diversified geographically, thus mitigating physical climate risks. Case study of a process related to transition risks andor opportunities rom a transition risk perspective, as part of its annual ERM assessment, ifeco tested two green scenarios one within orderly transition driven by government intervention and one with disorderly transition driven by grass root sentiment but without strong government intervention, towards a lower carbon economy. They highlighted climaterelated opportunities already underway to invest in clean energy as well as ESrelated products and services. s at yearend 2019, Lifeco’s general account had over $3.87 billion invested in renewable energy through its private placements, and its asset management affiliates manage more than C billion across a number of ESrelated strategies. n , the fee income from responsible investment options represented less than of ifeco’s total fee income. hile important, these opportunities are not deemed substantive to the business. M identified the risk of investing in companies associated with coal, as increasing regulation is put in place to mandate the closure of coalfired power plants and customers are increasingly focused on low carbon energy. Through their engagement process, they have had successful engagement to speed up the conversion of assets for an investee in lberta, to transform to a natural gasfired plant. urthermore, coal represented less than . of M’s listed equity assets under management at December , .

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 19 a hich ris tes are considered in or organiations climaterelated ris assessments

is tye elevance lease elain inclusion

urrent elevant, limaterelated riss are integrated into our grouide ris management rocesses, hich tae into consideration regulation alays the riss of our subsidiaries and investments. hrough this analysis, e revie the folloing climaterelated current included regulatory riss at the subsidiary and investment level through our articiation on their boards of directors

regulations, carbon ricing, climate financial ris, and building energy requirements. s art of our rocess, e

consider climaterelated current regulatory riss assessed by our maor subsidiaries, Lifeco and , here a maority of our interests aro. 98 of our assets are held. n anada, Lifeco, through its subsidiary L ealty dvisors, quantifies the emissions footrint and assesses climaterelated comliance ris eosure of their global oneroccuied offices, as ell as cororate and regional offices and thirdarty investment management roerties. ased on the relatively small carbon footrint of its real estate ortfolio, they are not subect to reorting regulatory thresholds and carbon ricing sensitivity analysis revealed marginal ris related to increased oerating costs. n uroe, they assessed comliance ris eosure related to the Prudential Regulatory Authority’s ( uervisory tatement 319 that came into force in 2019, requiring insurers and reinsurance firms to have an aroach to manage the financial ris from climate change. he ris of non comliance is lo given the reliminary climate change stress and scenario analysis of its general account investments and the formal integration of climate change in its frameor and ithin n is olvency ssessment . assesses emission regulations in anada in the contet of their cororate roerties, energy suliers, and roerties held in the nvestors eal roerty und in anadian rovinces. hey also assess investments in their funds for eosure to material changes in emissionrelated regulations such as carbon ricing hich, if not managed effectively, could imact the maret, credit ris or liquidity ris of an individual holding or industry. Diversification and consideration of material environmental ris, including current climate regulations, is inherent in their business and investment strategies. ased on their revies, and as disclosed in their resective D submissions, Lifeco and do not consider climate related current regulations to have a substantial imact on their business.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 20 Ris tye Releane Please elain inlusion

erging Releant liaterelated riss are integrated into our grouide ris anageent roesses hih tae into onsideration regulation alays the riss o our susidiaries and inestents hrough this analysis e reieed aron aret and riing inluded eetations at the susidiary and inestent leel through our artiiation on their oards o diretors e onsider the liaterelated eerging regulatory riss assessed y our aor susidiaries ieo and here a aority o our interests (aro o our assets are held ieo assesses releant eerging liaterelated regulatory reuireents n anada they onsidered the ert Panel reoendations on ustainale inane the guidane or P and ie health insurers related to underriting and inestents and the Canadian Securities Administrator’s guidance on materiality in climate dislosures n the they reieed the ru Adinistration roll a o enironental rotetions and the inrease o state eorts to address liate hange n uroe they onitor the uroean nsurane and uational Pensions Authority onsultations on integrating sustainaility riss and dislosures in roerty insurane the atiities o the PRA and reen inane trategy oitents on andatory reorting the entral an o reland role in ensuring inanial irs inororate liate hange into strategiinanial lans and the erany ederal Financial Supervisory Authority’s intention to release a consultation on sustainability risk management. Their assessent deterined that eosure to nonoliane reains lo gien the strengthening o their oliies and roesses and the results ro liate senario testing assesses its inestent unds or eosure to eerging eissionrelated regulations hih i not anaged eetiely ould iat the erorane o the unds and oany reenue iersiiation o its assets under anageent and onsideration o aterial enironental riss inluding eerging regulations is inherent in the company’s businessinestent strategies urtherore they hae assessed the otential liate riss assoiated ith the hanging regulatory landsae in anada and the otential iat on its ororate roerties energy suliers and roerties held in the nestors Real Proerty und As dislosed in their resetie P suissions ieo and do not onsider liaterelated eerging regulations to hae a sustantial iat on their usiness

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 21 isk type elevance lease eplain inclusion

Technology elevant Climaterelated risks are integrated into our groupide risk management processes hich take into consideration alays the risks o our subsidiaries and investments. Through this analysis e revie climaterelated technology risks at the included subsidiary and investment level through our participation on their boards o directors including the impacts o technology developments such as the costs associated ith transitioning to loer emission and smarter technologies potential reduced demands or services capital investments into technology developments and costs to deploy ne practices and processes. e consider the climaterelated technology risks assessed by our maor subsidiaries ieco and here a maority o our interests appro. o our assets are held. For example, within Lifeco’s property management services carried out by its subsidiary ealty Advisors they have been assessing costs and capital investments to transition toards smarter more eicient buildings that optimie energy eiciency and take advantage o big data and technological innovations. hile important these costs are not expected to generate a substantive change to Lifeco’s business operations given that GWL Realty Advisor’s real estate management services represent less than . o its overall revenue. ieco also considered risks and opportunities related to transition risks associated ith technology and the potential impact on its general account investment portolio. n this case they considered sectors that could be eposed to increased costs due to investments in cleaner technologies as ell as the depreciation o assets or asset classes rom emerging disruptive technologies. conducted a similar revie o its corporate buildings and determined the risk to be marginal given that its energy costs represent less than o its operating costs. The company also assessed climaterelated technology risks in certain sectors in its investment unds particularly ithin eposed industries such as coal hich are acing pressure to transition to a locarbon economy. Furthermore its ackenie lobal nvironmental uity Fund provides an opportunity or its clients to invest in green technology and mitigate transition risk in their portolio. ased on their revies and as disclosed in their respective C submissions ieco and do not consider climate related technology risks to have a substantial impact on their business.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 22 Ris type Relevance lease explain inclusion

Legal Relevant, limaterelated riss are integrated into our groupwide ris management processes, which tae into consideration sometimes the riss of our subsidiaries and investments hrough this analysis, we review companyspecific climaterelated legal included riss at the subsidiary and investment level through our participation on their boards of directors, specifically with respect to climaterelated litigation As part of our process, we consider the climaterelated legal riss assessed by our maor subsidiaries, Lifeco and G, where a maority of our interests approx of our assets are held Lifeco assessed the impacts of exposure to climaterelated litigation on its business operations and investment portfolio For example, in , Lifeco continued to monitor litigation lawsuits against oil and gas and energy companies brought to the courts on climate change impacts While important, the impacts of possible litigation in its investments are limited given the diversification of its asset allocation, geographies and sectors pecifically, in , no individual sector accounted for more than 10% of Lifeco’s invested assets and the percentage of assets in the energy sector that could be highly exposed to litigation lawsuits amounted to less than of invested assets in bonds or euities G assessed the potential for material climaterelated litigation against specific sectors in their investment funds that may be highly exposed to climate change impacts, particularly in industries such as coal which have been subect to recent litigation For example, of the total euity holdings for G Wealth anagement and acenie nvestments, less than is invested in the coal and consumable fuel industry, an industry exposed to legal ris ased on their reviews and as disclosed in their respective submissions, Lifeco and G do not consider climate related legal riss to have a substantial impact on their business

aret Relevant, limaterelated riss are integrated into our groupwide ris management processes, which tae into consideration always the riss of our subsidiaries and investments hrough this analysis, we review companyspecific climaterelated included maret riss at the subsidiary and investment level through our participation on their boards of directors, including with respect to fluctuating socioeconomic conditions that may result from society’s exposure to weatherrelated losses and the demand for products that integrate climaterelated factors As part of our process, we consider climate related maret riss assessed by our maor subsidiaries, Lifeco and G, where a maority of our interests approx of our assets are held Lifeco assessed fluctuating socioeconomic conditions from society’s exposure to weatherrelated losses and the potential impact from lapse rates hey concluded that lapse rates from extreme weather events, such as urricane atrina, were not severe and had limited impact on insurance affordability and customer retention rates Lifeco also considered the potential for stranded assets that may arise from climaterelated maret trends For example, the company reviewed the extent to which some of its investments may be impacted by the increasing demand for electric vehicles Given the diversification of Lifeco’s investment strategy, the potential for stranded assets was not deemed substantive to its overall business G assessed the demand for products that integrate climaterelated factors and considers the riss of not meeting client demand on its revenues hey recently surveyed and facilitated focus group discussions with advisors regarding responsible investing, including climaterelated riss and opportunities – an area of focus for their new R entre of xcellence ased on their reviews, and as disclosed in their respective submissions, Lifeco and G do not consider climate related maret riss to have a substantial impact on their business

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 23 is type elevance lease explain inclusion

eputation elevant, limaterelated riss are integrated into our groupwide ris management processes, which tae into consideration always the riss of our susidiaries and investments hrough this analysis, we review companyspecific climaterelated included reputation riss at the susidiary and investment level through our participation on their oards of directors, including with respect to increasing staeholder reuests for climate disclosure and the possile impact on our reputation from staeholders for not effectively demonstrating how climate change riss and opportunities are managed e consider climaterelated reputation riss assessed y our maor susidiaries, Lifeco and , where a maority of our interests approx % of our assets are held hrough its climaterelated ris assessments, Lifeco considers its reputation on climaterelated impacts from various staeholders hey recognie that a lac of disclosure on how they identify and manage climate change riss could expose the company to potential reputation ris ver the past few years, there has een an increase in investor interest on factors, which includes responding to and mitigating climate riss s a result, Lifeco has een strengthening the transparency and crediility of the information it pulishes pulicly on climaterelated issues, including with respect to governance, riss, opportunities and performance n 01, they strengthened their climate related disclosures through the sumission, 01 nnual eport, corecard, ulic ccountaility tatement and the ustainaility eports of anada Life, and rish Life owever, when considered generally in the context of Lifeco’s overall usiness and other types of reputation riss they do not consider climaterelated reputation riss to have a sustantive impact on their usiness assesses exposure to reputation ris with its investee companies using tools such as ustainalytics, which flag companies with controversies including climaterelated issues, that can have a serious effect on reputation f material reputation issues arise, their investment management teams or thirdparty engagement providers engage with the company for further information andor to encourage change ngagement is prioritied over divestment ased on their reviews, and as disclosed in their respective sumissions, Lifeco and do not consider climate related reputation riss to have a sustantial impact on their usiness

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 24 is e eece ese ei icsio

ce sic ee ieee iss e iee io o oie is ee ocesses ic e io cosieio s e iss of o ssiiies ieses o is sis e eie cosecific cieee ce ice sic iss e ssii iese ee o o iciio o ei os of iecos ici eee ee ees s of o ocess e cosie cieee ce sic iss ssesse o o ssiiies Lifeco ee oi of o ieess o of o sses e e Lifeco cosiee eose o icese seei of eee ee ees i is eisce siess se o oscse sceios e ei oei coce ese ees o o es i ssie ic o ei siess o ee cis ee o osses fo ices e i coie ese i esise esees of iio ic ee o cosiee o e ssie o is oe siess eoe ii e ee cco iese ofoio e ssesse ce sic iss s of e o cie sceio sess es ssi iie coecie siio esose fo fo eee ee ees co e o i oi es oe e ecie i oe es siess isio eic ee ssesses e ic of i eees foos ifies oe eee ee ees o is cooe iese oeies e oeies ios of cie oes e oe ofoio of is ssii e ee coie oie oeies i se ice fooi fo eee ee ees f ese ess ee sic ice eesei ess of o oes e iisio i o ic osses fo e ee se o ei eies s iscose i ei esecie sissios Lifeco o o cosie cie ee ce sic iss o e ssi ic o ei siess

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 25 is e eece ese ei icsio

oic ee ieee iss e iee io o oie is ee ocesses ic e io cosieio sic s e iss of o ssiiies ieses o is sis e eie cieee coic sic iss ice e ssii iese ee o o iciio o ei os of iecos ici i esec o ces i eciiio es eee iii i ee es isi e eees isi se ees e cosie cieee coic sic iss ssesse o o ssiiies Lifeco ee oi of o ieess o of o sses e e Lifeco ssesses ces i eciiio es eee iii i ee es isi e eees isi se ees o ee i ei ee cco iese ofoio e ssesse coic sic iss s of e o cie sceio es ic sse iie coecie siio esose fo fo ee ees oei es of eiiies of ei iese ofoio ee eiee i ei os coeio oes o oeies e ese ois i cos es ese is eoses e iee iie ei oe ofoio iis ic ce o o ecee fo eio es of ife e isce e ssess iss fo ces i sic cie ees e ics o o oii oi es e iesif oii oi iss iii coceios i oe secific eio s es e o eeiece oe ces i isce cis s es of cieee e ics ssesses e is ic ee o ee i iceses i se ee o is cooe iese oeies e oeies ios of cie oes o ee e eiee e Management’s mortgage portfolio for risks drie eee ee ees e oe ofoio coie o oeies i se i oei eose o oss fo fooi fo eee ee ees f ese ess ee ice eesei of o oes o osses ee ice fo is ee se o ei eies s iscose i ei esecie sissios Lifeco o o cosie cie ee coic sic iss o e ssi ic o ei siess

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 26 b o o assess or ortfolios eosre to climaterelated riss and oortnities

ortfolio e assess te lease eplain portfolios eposre

nesting es s an international management and olding ompan tat foses on finanial series e reognie tat sset sstainailit trends s as limate ange old potentiall impat te ompanies in i e inest e onsider manager limate ange risks and opportnities ere releant as part of or inestment analsis proess and trog te interations it te senior management of or ssidiaries and portfolio ompanies rom an asset management perspetie e onsider te limate related risks and opportnities assessed or maor ssidiaries ifeo and M ere a maorit of or interests appro of or assets are eld ifeo assesses eposre to limaterelated risks and opportnities as it relates to its inestment portfolios oering te insrane general aont as ell as inestments of tirdpart lients mainl managed trog ifeo’s asset management affiliates ealt disors ris ife nestment Managers M tnam nestments tnam sset Management and angora sset Management e assess te eposre of te inestment portfolio on a road range of limaterelated risks and opportnities inlding limate lnerale setor eposre lean energ lo aron finane eposre limaterelated inestment prodt eposre as ell as aron emission intensit e eposre assessments are generall ndertaken en it is inestment releant and finaniall material and en tere is sffiient data s an eample M assesses eposre to transition risks measring te aron footprint of its inestment portfolio and managing te aron intensit to a perentage loer tan relatie indies or enmarks t M te assessment of limaterelated risks and opportnities of te inestment portfolio takes plae trog te inestment analsis and deisionmaking proess i is formalied nder IGM’s ommitment trog teir responsile inestment poliies t M’s operating companies IG Wealth Management and Investment Planning onil tese assessments are ondted igalit eternal inestment managers t Makenie nestments indiidal inestment teams are responsile for assessments i are primaril done alitatiel trog engagement it ompanies and indstries eiter it a tirdpart engagement manager andor diret meetings onferenes and ommniations

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 27 Portolio We assess the Please eplain portolios eposre

Insrance es s an international management and holding company that ocses on inancial services, we assess climaterelated riss nderwriting and opportnities in the insrance bsiness throgh or maor sbsidiary ieco ieco assesses its eposre to climate Insrance related riss and opportnities in both the healthlie insrance bsiness and the property and casalty reinsrance company bsiness With respect to ieco’s property catastrophe coverages, an annal scenario modelling on climaterelated events and the impact on their reinsrance bsiness is condcted sing robst weather models, ieco models pea perils at the worst locations to assess the lielihood, severity and velocity o etreme weather events, inclding windstorms, hrricanes and cyclones he inormation rom these scenario models enables the company to assess how mch o a loss it will tae, which in trn inorms its pricing models ieco identiies and assesses climate change related ris impacts, to determine whether the ris limits wold be impacted With respect to the property catastrophe reinsrance bsiness, ieco monitors the nmber and severity o etreme weather events, sch as cyclones, hrricanes and loods in its reinsrance bsiness as well as the vale o claims related to sch losses or eample, ieco inclded property catastrophe reinsrance losses o million aterta relating to estimated claims reslting rom the impact o rricanes arvey, Irma and Maria With respect to the healthlie insrance bsiness, ieco rns longevity models taing into consideration varios actors that cold reslt in health impacts and eposre to morbidity and mortality riss rthermore, research and analysis are done reglarly to provide the basis or establishing pricing and valation assmptions that properly relect the insrance maret, inclding potential climaterelated health impacts

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 28 c escribe ho o assess or ortfolios eosre to climaterelated riss and oortnities

ssss s

s s s ss ss s s sss sss s s ss sssss s ss s s s s s s s s ss s s ss s ’s asset management s ’s third ss s ss s s s ss ss ss ssss s s s s ss s s s s s s s s ss s s sssss s s s s sss ss s ssss ss s s ss s s s s ss s s ss s sss s s ssss s s ss s ss s ss ss s’ s ssss s s s ss s s s s s s s s s ssss s s s s s s ss s s ss s ss sss sss ss s s sss ss s s s s sss s ss ss s ss ss s ss s s s s s s sss s ss ssss ss s

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 29 rti rti ssessment esritin erage te

nesting arit aitatie rti erage is deined sset ner the and s an asset ner er rratin ndts antitatie and aitatie assessments the riss and rti antitatie rtnities assiated ith r rti manies inding ie and antiing and nsidating the arn trint these ned assets rthermre ie as assesses esre t imatereated riss and rtnities its ned assets ithin the genera ant as e as its hsia assets and eratins inding ie idings and data entres r eame in the genera ant ie assesses the hsia and transitin imatereated riss and rtnities its ned assets ering nds mrtgages rea estate eit sts and ans t ihders s sed t assess the rtis esre t imatereated riss and rtnities t er rratin the assessment is ndted antiing the arn trint its ssidiaries ie and ased n rimar assetseii data t ie the assessment is ndted aing antitatie anasis ithin the insrane genera ant sing a imate senari and stress test t that considers both green and brown scenarios. The assessment is based on a “green” orderly and disorderly senari aigned t a e e degree warming scenario; and a “brown” scenario aligned to a degree arming senari he assessment is ndted t determine the aane sheet imats he hae as aied the t t the genera ant t assess the esre the rti t enmi atiities aeted the transitin t a arn enm the etent t hih the rti inreases r dereases its aignment t a stainae eement enari er the net ie ears and the eeted tre esre t high and arn enmi atiities ased n the rrent and reeaed rdtin and inestment ans the manies in the rti

nsrane arit aitatie rti erage is deined nderriting the n er Corporation’s investments in the insurance business are held thrgh ie s an insrane nsrane rti man ie assesses the esre t imatereated riss and rtnities in th the heathie man insrane siness and the rert and asat reinsrane siness ith reset t the rert and asat reinsrane siness ie mnitrs the nmer and seerit etreme eather eents sh as nes hrrianes and ds in its reinsrane siness as e as the ae aims reated t sh sses s sed t assess the rtis esre t imatereated riss and rtnities ith reset t the reinsrane siness ie ses rst eather mdes he mde ea eris at the rst atins t assess the ieihd seerit and eit etreme eather eents inding indstrms hrrianes and nes he inrmatin rm these senari mdes enaes them t assess h mh a ss the i tae hih in trn inrms their riing mdes ith reset t the heathie insrane siness ie rns ngeit mdes taing int nsideratin aris atrs that d rest in heath imats and esre t mridit and mrtait riss rthermre researh and anasis is dne regar t ride the asis r estaishing riing and aatin assmtins that rer reet the insrane maret inding tentia imatereated heath imats

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 30 d o o assess or ortfolios eosre to aterrelated riss and oortnities

ortolio e assess the ortolio lease eplain portolios coverage eposure

nvesting es inority o ater riss and opportunities are assessed mainly through ieco and where a maority o our sset manager the portolio assets are held. ieco’s asset management affiliates GWL Realty Advisors and utnam nvestments assess their portfolio’s exposure to water risks and opportunities. Specifically, at utnam they conduct water ris sector analysis to inorm their engagement with investee companies where possible based on data availability and on a company and sector speciic basis. eanwhile ealty dvisors monitors and measures water consumption data rom the real estate investment portolio under management to inorm resource eiciency strategies. t each internal investment team or eternal subadvisor is responsible or how they integrate water issues into their investment processes. This includes waterrelated riss such as drought looding and water scarcity and opportunities such as cost savings access to new marets and supply chains. These types o waterrelated riss and opportunities will be assessed when considered material to the issuing company. or eample as deined by the ustainability ccounting tandards oard water management is a top material ris or the nonalcoholic beverage industry which prompted their investment team to engage with a maor sot drin manuacturer in to ensure this ris was being managed with appropriate plans and targets.

nvesting es inority o ater riss and opportunities are assessed by ieco as part o the management o the owned real sset owner the portolio estate assets. Through its subsidiary ealty dvisors waterrelated riss and opportunities are assessed through the ustainability and Conservation enchmaring rogram C or the oice portolio. s part o the C water consumption is assessed and ris and opportunities are identiied in the contet o corporatewide water reduction targets. n by minimiing riss and maimiing the opportunities in the oice portolio ieco achieved an reduction in overall water consumption.

nsurance ot applicable e do not assess eposure to waterrelated riss in the insurance business o ieco given that water underwriting riss would not be relevant to lie and health insurance business lines. nsurance company

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 31 e o o assess or ortfolios eosre to forestsrelated riss and oortnities

ortfolio We assess te ortfolio lease explain portfolios coverage exposure

nvesting es inority of orestrelated risks and opportunities are assessed y some of our portfolio companies. or example, Asset te portfolio at G, eac internal investment team or external suadvisor is responsile for ow tey integrate manager forestrelated issues into teir investment processes. is includes forestrelated risks suc as fires, loss of license to operate, supply cain disruption, and loss of revenue due to deforestation and forest degradation. t also includes opportunities suc as cost savings, and access to new markets. ese types of forestrelated risks and opportunities will e assessed wen tere are material issues to te issuing company. or example, sustainale landuse and iodiversity are areas of increasing focus for ackenzie Investments’ engagement service provider. In addition to their current focus on creating more sustainale food supply cains, tey are looking into ways to directly affect landuse cange troug sustainale management and production of palm oil and timer. engagements for ackenie included palm oil financing and traceaility, Roundtale on Sustainale alm il certification, sustainale cotton, and sustainale ruer.

nvesting o, ut we As asset owners, we do not currently assess forestrelated risks. n te next two years, our susidiary Asset owner plan to do so Lifeco as indicated tat it will explore te possiility to assess te exposure to potential forestry risks in te next two and opportunities. years

nsurance ot applicale Lifeco does not assess its exposure to forestryrelated risks and opportunities in its insurance usiness underwriting given tat forestry risks would not e relevant to life and ealt insurance usiness lines. nsurance company

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 32 f o o reest climaterelated information from or clientsinvestees as art of or de diligence andor ris assessment ractices

ortfoio e reuest ease epain cimate reated information

Investing es s an internationa management and hoding compan asset management due diigence andor ris assessments are sset conducted through our maor susidiaries ifeco and I here a maorit approimate of our assets are hed. manager s an asset manager ifeco reuests cimatereated information from cientsinvestees through the investments made in the insurance genera account on aance sheet investments for ifeco as e as investments of thirdpart cients main managed through ifeco’s asset management affiiates. or eampe oth Irish ife Investment anagers and utnam Investments reuest cimatereated information from investees through their pro voting and engagement processes as part of their research and ris assessment practices hen the information is deemed to e materia and additive to the investment process. sset anagement reuests cimatereated information for ris investment purposes through its invovement in imate ction and its thirdpart and pro providers reuest cimate reated information for the purpose of ris assessments and to inform voting decisions. eanhie eat dvisors reuests cimatereated information from its cients and the rea estate investment properties under management as part of its ris management practices to inform emission reduction and efficienc improvements. t I cimatereated information is reuested in cases hen it is a materia issue to the investee compan and an engagement is either ongoing or i e undertaen. or eampe I eath anagement reuests a managers to provide reated poicies accountaiit structures and specific metrics and eampes through the euest for Information and ue iigence processes ith specific reference to cimate change. t Investment anning ounse a pooed engagement service provider is used to or ith companies to enhance corporate ehaviour and strateg reated to topics incuding cimate change. acenzie Investments through its engagement service provider and its interna investment teams engages ith companies on a variet of issues incuding cimate change riss and opportunities. imate change has een specifica identified as a priorit engagement topic for this engagement provider ho has een oring ith companies to undertae ocaron scenario anases and to report on the resiience of their companies to the effects of cimate change. his incudes phsica and financia riss or the potentia for asset stranding due to reguator changes and the compans preparation for such eventuaities. he compan active monitors and revies the earnings from its provider through uarter cas reguar reports and a cient facing porta hich aos them to refer to the fu histor of engagement ith each compan and trac progress.

Investing es s asset oners oer orporation and its maor susidiar ifeco conduct due diigence assessments of potentia acuisitions hodings and divestments hich can incude cimatereated information here deemed materia. or sset oner eampe in the management of the anadian egregated und ifeco reuests cimatereated information from investees andor cients incuding ith respect to caron emission data caron management and performance. he information is used to identif and assess performance reated to cimatereated riss and opportunities.

Insurance es s an insurance provider ifeco i reuest cimatereated information from cients as part of the due diigence underriting decisionmaing process for reinsurance underriting. Information reuested coud incude phsica cimate ris Insurance eposure ratings reated to propert and casuat insurance. compan

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 33 s sse

ave o identified an inherent climaterelated riss ith the otential to have a sbstantive financial or strategic imact on or bsiness

b h do o not consider or organiation to be eosed to climaterelated riss ith the otential to have a sbstantive financial or strategic imact on or bsiness

ma easn ease ean

ss est t nne t e assess mate s ese t sness tg engagement t te sen management at ssaes an tenta t ae a t manes as at s management ess an tg te nestment anass ess ee eeant sstante nana e assess te etent t t eesents a sstante s sng n ssaes e an eesent stateg mat n a mat nteests assets e nt ent mateeate ss t sstante mats n sness sness n t e an a ese ts an sees mtng ese t an ne ata set maet gega eame n e nte mate sena anass ts nsane genea ants ente tenta aeas neat man tn ns nentna mtgages ea estate ngs an et sets e neent esatn tese nestments mts ese t tese neates tn ts n ngs n tenta neae sets te neent mantan gat ngs tat ae ste atn ess tan eas tan te est te t mtng te nentatn s t neae sets tn te ensane sness e mes ea es at te st atns t assess te e seet an et eteme eate n tn nms ng mes e estase s mts t a te mamm exposure through the property catastrophe coverage in accordance with the company’s risk appetite an eeene eeat nsane e’s t s ese eteen mtat an nget s n atn te es mt an mtat ss mtng nentatns n an ne se egn ngng esea an anass ae ne t e te ass estasng ng assmtns tat e eet te nsane maet nng mate eate mats sstante mats eate t mate ange ee ente as nt ente an sstante ss eame te eee IG Wealth Management’s mortgage portfolio for ss en eteme eate eents ea n te nsee te mtgage t tat ntane a etes n asten anaa mate ng m eteme eate eents tese ess tan ee sa mate eesentng ess tan tta mtgages e nt n an sses m tese eents

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 34 pportunity disclosure

ave o identified an climaterelated oortnities ith the otential to have a sbstantive financial or strategic imact on or bsiness

b h do o not consider or organiation to have climaterelated oortnities

rimary reason lease explain

pportunities exist We assess climaterelated opportunities in our usiness through engagement with the senior management at our ut none with potential susidiaries and portfolio companies and through the investment analysis process In we did not identify climate to have a sustantive related opportunities that could sustantively impact our usiness ifeco and IGM where we have a maority of our financial or strategic interests of our assets disclosed in their respective sumissions that they did not identify climaterelated impact on usiness opportunities to e sustantive to their usinesses ifeco’s asset management affiliates G sset Management utnam Investments and Irish ife Investment Managers who are I signatories manage responsile investment funds comprising more than illion across a numer of Grelated strategies. This includes Putnam’s Sustainable Leaders Fund and ustainale utures und G sset Management’s I anadian uity und and I anadian ond und and Irish ife Investment Managers’ I ustainale Gloal uities Indices MI World x ossil uels Index und ustomer G Indices and tandard G Indices While these products are important the enefits are not considered sustantive given ifeco’s diversified businesses and extensive distriution reach or example in the income from responsile investment options represented less than of its overall net income urthermore Lifeco’s investments in the clean energy market were over illion representing less than of invested assets In IGM’s subsidiary Mackenzie Investments launched four new sustainable, responsile and impact funds including the Gloal ustainaility and Impact alanced und which invests sustainaly and engages companies in promoting climatefriendly ehaviour and the Mackenie Gloal nvironmental uity und which invests in the energy transition from fossilfuels to renewale power hese products along with the IG umma I und are also availale to IG Wealth Management clients While these products are important demand has een limited representing of total assets under management which is not sustantive to IGM’s business. With respect to our other usinesses many of our companies are taking advantage of climaterelated opportunities or example ower nergy is investing in solar and wind energy lighting and eroemission vehicles ur investments in these usinesses representing less than of our assets and therefore the opportunities would not e sustantive to our usiness

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 35 Carbon Disclosure Project 2020 C3 Business strategy usiness strategy

usiness strategy

ave climaterelated riss and opportunities influenced your organization’s strategy and/or financial planning?

es, and we have developed a lowcarbon transition plan

a oes or organiation se climaterelated scenario analsis to inform its strateg

es, ualitative and uantitative

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 37 (C3.1b) Provide details of your organization’s use of climaterelated scenario analysis.

limaterelated etails scenarios and models applied

ther ur maor subsidiary Lifeco’s climate scenario testing incorporates topdown analysis to assess the future potential eposure of the balance sheet to climate risks and opportunities and, bottom up analysis to identify potential areas of vulnerability in the asset Modelling is portfolio of the general account, including bonds, mortgages, real estate and stocks. It involves a structured multidimensional used for the approach and considers disruptive themes that could present risk downside and upside opportunities, as well as resilience themes. Property atastrophe In order to assess the potential impact of a range of outcomes, three scenarios were developed portfolio in the a reen scenario with orderly transition overnment policies facilitate the transition to a low carbon environment in an orderly einsurance manner, in line with the Paris ccord, and becoming neutral by . In this scenario, the transition takes place gradually. department. ssumptions government intervention to ensure the transition occurs in an orderly manner asset defaults and downgrades on sectors with transition risk eposure stock markets eperience moderate shock growth stagnates in later years due to poor performance from “at risk” sectors. b reen scenario with disorderly transition hile the green environment is still achieved, in the absence of government intervention, it is driven by grassroots movements. The transition occurs uickly, limiting the ability to adapt and there is an increasing financial market volatility. ssumptions asset defaults and downgrades on sectors with transition risk eposure stock markets for “at risk” sectors experience severe stress in the first few years and growth stagnates in later years; and opportunities arise for low carbon related sectors. c rown scenarios Limited corrective transition response in a business as usual scenario. The fallout from natural disasters and litigious environment leads to volatile financial markets. The impact of climate change includes high mortality rates, property damage, decline in property values, business disruption and a pandemic environment. ssumptions Physical and liability risks emerge euity and property prices decline, especially coastal and lowlying areas. eputational damage and consumer activism lead to credit downgrades and defaults weather associated event and business disruption deterioration in the mortality improvement assumption and consumer groups become more litigious. The time horizon was etended over a year period, with the emergence of transition impacts ahead of physical impacts. For the topdown stress and scenario testing, Lifeco assessed all risks market, credit, insurance, and operational risk. In the bottomup testing, they assessed Lifeco’s invested assets in the general account. The results indicate that Lifeco is wellpositioned for known risks of climate change. ond eposure in vulnerable industries primarily represents highuality holdings and shorter average durations. The main eposure to transition risk in the bond portfolio is through the energy sector, which is wellpositioned, and they continue to review opportunities with respect to renewable energy financing. The balance sheet remains strong and resilient with respect to the climate change scenarios. The scenario analysis reinforced Lifeco’s eisting business obectives and strategies to limit eposures in vulnerable mortgageproperty investments and continue opportunities to invest in clean energy growth and Srelated strategies and clean energy markets. s a case eample, . billion is invested in renewable energy investments in the general account, and billion managed across several Srelated strategies within Lifeco’s Asset Management affiliates as at yearend . The results have directly informed Lifeco’s strategies to consider selectively trimming eposure in longer maturities, and limits related to vulnerable industries.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 38 (C3.1d) escribe ere and o climaterelated riss and oortunities ave influenced your strategy.

usiness area ave climate escription of influence related risks and opportunities influenced your strategy in this area

roducts es limaterelated risks and opportunities have influenced our group’s products and service strategies within a year and services horion. or example, at ower orporation, through our wholly owned susidiary ower nergy, we made the decision

to continue to our grow investments in clean energy. his includes otentia enewales, a renewale energy

generation company, and autilus, a company that acuires, develops, finances and manages distriuted solar proects across community, municipalutilityscale, commercial and industrial markets. ower nergy also holds a controlling interest of . in Lumenpulse, a leading manufacturer of highperformance, specificationgrade L lighting solutions, and a . interest in Lion lectric, an allelectric truck and us manufacturer in orth America. As of ecemer , , ower nergy had invested million in these companies. Lifeco also increased investments in the lowcaron economy, which in amounted to . illion in wind, solar and hydro renewale energy proects as well as purchases of ntario and uec green onds. urthermore, Lifeco also continued to grow its property and casualty reinsurance usiness, influenced y the economic growth driving the numer of houses in areas prone to single events e.g. hurricanes, changes in industry modelled locations, occurrence and severity of windstorms, and the availaility of capital to support such risks. ur susidiary M made strategic decisions to increase the numer of funds addressing and climaterelated considerations. or example, M now offers mortgage products that provide mortgage insurance inducements for energy efficient homes. urther, clients are provided with the opportunity to invest in eligile ealth Management and Mackenzie Investments’ charitable giving funds where some of the organizations funded actively address climate change such as the avid uuki oundation, ature onservancy of anada and the orld ildlife und. urthermore, M made the strategic decision to estalish the entre of xcellence at Mackenie nvestments, which plans to complete a new product strategy that will include considerations of climaterelated impacts in product design.

upply chain es limaterelated risks and opportunities have influenced our group’s supply chain / value chain strategies. For example, andor value at Lifeco climaterelated risks and opportunities have strengthened the company’s approach to thirdparty services chain providers, who conduct investments on their ehalf, to ensure the company integrates climaterelated information into decisionmaking processes over the next three years. ne of the sustantive decisions Lifeco has made was to integrate

climaterelated information into their thirdparty service providers selection process to ensure they aligned with the company’s expectations to have climate change topics embedded into their investee proxy voting and engagement process. For example, Irish Life’s third parties have specific requirements to integrate climaterelated information into their proxy voting and engagement processes as part of their risk assessment practices. y their focus on selecting highuality investment firms as suadvisors, M made the strategic decision to include climate risks and opportunities into euest for roposal and ongoing assessments. or example, in , through ealth Management, M made a strategic decision to reuire all suadvisors to e signatories y the end of , committing them to integrate factors, including climaterelated information, into their investment analysis and decisionmaking process. As M implements the recommendations, climate change will continue to e a growing topic of consideration in the selection and management of suadvisors.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 39 usiness area ave climate escription of influence related risks and opportunities influenced your strategy in this area

Investment in valuation in iven the nature of our business as a financial services holding company, we do not typically invest in research and progress development. hile our subsidiary Lifeco does conduct research into various emerging trends and the impacts on health and life insurance, including climate change, changing demographics and market conditions, they do not,

however target any strategic investments in research and development related to their products and services broadly. Our subsidiary IGM’s business strategy includes investing in research and development relating to the introduction of new products and services, which includes consideration of climaterelated risks and opportunities for the short to medium term. For example, a strategic decision made in was to conduct a proect to evaluate current investment practices of Mackenzie’s various investment boutiques related to more broadly but also to the integration of climaterelated risks and opportunities. IM also conducted research and solicited feedback from approx. , financial advisors in anada to better understand the demand for impact investments. Much of the feedback focused on the importance of addressing climate change.

perations es ithin our operations, climaterelated risks and opportunities have influenced our strategy with respect to our carbon emissions and reporting. t ower orporation, we have made the decision to continue to strengthen our disclosure

on climaterelated risks and opportunities. In , in addition to strengthening our climaterelated disclosures on our website and through the , we also made the decision to include additional language in our annual report related to sustainability risks. ur subsidiary Lifeco’s climaterelated risks and opportunities have influenced their strategy with respect to their carbon emissions as well as their corporate reporting and disclosures. Lifeco made the strategic decision to set a carbon emission reduction target to achieve a . reduction by and . reduction by , based on a baseline. It also started to strengthen its strategy towards even greater energy efficiency to achieve its targets, including with respect to building equipment retrofits, data centre optimization and green building certifications such as M and/or L. ur subsidiary IM invests in efficiencies in its corporate and regional offices to address potential energy cost increases associated with thirdparty suppliers from carbon pricing, while creating greener buildings and reducing costs in alignment with a reduction target of of cope and emissions by and by , based on a baseline. IM made the strategic decision to invest in green building upgrades, including installing efficient heating and cooling systems, air handling units, information technology systems, L lighting and motion sensors. In addition, the I ealth Management and Mackenzie head offices and I ealth Management region offices continue to be optimized to ensure space is being used efficiently and carbon emission are wellmanaged. Furthermore, since , IM has made the strategic decision to purchase green natural gas to match the annual conventional natural gas used at the I ealth Management and Mackenzie Investments head offices to further manage carbon impacts. his investment lowers the operational carbon emissions enabling IM to exceed its goal, while also supporting the development of the renewable energy industry in anada.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 40 (C3.1e) escribe ere and o climaterelated riss and oortunities ave influenced your financial lanning.

inancial planning escription of influence elements that have been influenced

evenues evenues hile climaterelated events do not pose any inherent risks or opportunity from a revenue standpoint that could be substantive irect costs to our groups business e do consider potential revenue from climaterelated products and investments or eample at oer apital ependitures orporation our financial planning takes into consideration revenues from our investments in cleaner energy through our holly oned subsidiary oer nergy cuisitions and divestments Our subsidiary ifeco determined that hile climaterelated events do not pose any inherent risks or opportunity from a revenue standpoint that could be substantive to their business they do consider potential revenue losses in our financial planning ccess to capital process in the contet of our reinsurance business sing robust eather models ifeco models peak perils at the orst locations ssets to assess the likelihood severity and velocity of etreme eather events including indstorms hurricanes and cyclones he information enables the company to assess ho much of a loss they ill take hich in turn informs their pricing models ased iabilities on this modelling of to orstcase scenarios ifeco determined it ould not result in a substantive impact on its business or eample ifeco established reserves of million for claims relating to losses from hurricanes arvey Irma and Maria did not result in a substantive impact to the business otably these etreme eather events resulted in no significant losses in their other lines of business including our other operations products and services urthermore ifeco places contractual limits hich cap eposure on the portfolio he company also renegotiates its reinsurance contracts annually hich enables them to revisit risk eposures and limits on an ongoing basis irect osts hile climate related events do not pose any inherent risk or opportunity on our group’s direct costs that could be substantive to our business e do factor energy costs as part of our financial planning process or eample at oer orporation e continued ongoing annual building upgrades and retrofits Our maor subsidiary ifeco increased investments into more energy efficiency programs in corporate and investment properties including building euipment retrofits data centre optimization and green buildings hich align ell ith their cope GG targets for anadian properties to achieve a GG reduction by and a reduction by based on a baseline year s at yearend 2019, 92% of GWL Realty Advisor’s eligible portfolio by floor area had green certifications While these are important efficiency improvements, their energy spend is less than 1% of Lifeco’s overall expenditures, and therefore these are not noticeable increases in their direct costs t IGM climaterelated risks and opportunities have influenced direct costs in their year financial planning processes pecifically financial planning related to direct costs has included dedication of internal and eternal resources for reporting to I and corporate reporting in alignment ith the GI and It has also influenced direct costs related to hiring professional climate eperts to advance recommendations responsible investing as ell as initiatives to reduce carbon emissions in operations such as continuous building improvements purchasing ullfrog green natural gas and purchasing the services of an energy data management company to measure and manage energy and emissions at their corporate properties and Investors eal roperty und apital penditures e have not identified any inherent climate related risks and opportunities that could be substantive to our business and therefore have not had to factor them into capital ependitures as part of our financial planning process or eample ifeco has resilience built into the oned corporate properties many of hich are located in areas that have relatively loer eposure to climaterelated etreme eather patterns

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 41 inancial planning escription of influence elements that have been influenced

Acuisitions and ivestments We have not identified any inherent climaterelated risks or opportunities that could be substantive to our business, and therefore have not had to factor them into acuisitions and divestments as part of our financial planning process Access to apital We have not identified any inherent climaterelated risks or opportunities that could be substantive to our business, and therefore have not had to factor them into access to capital considerations as part of our financial planning process t is important to note that together ith our maor subsidiaries, Lifeco and G, e engage ith various organiations on climate related reuests and have been ranked highly for carbon management by independent third parties oer orporation has been responding to the limate hange rogram for the past eight years In addition, Lifeco has scored in the top quartile among its global industry peers on MSCI’s “Climate Change Vulnerability Performance” ranking on its ESG Scorecard assessment, and its real estate subsidiary GWL Realty Advisors, which manages their corporate head offices and investment assets in Canada, has consecutively attained the highest, ‘Green Star’, ranking on the Global Real state ustainability enchmark GR, for the past three years We believe this performance has enhanced our positioning from a reputational standpoint and possibly indirectly strengthened investor confidence for oer orporation and its group companies Assets While climate related events do not pose any inherent risk or opportunity on our assets that could be substantive to our business, e may sometimes factor climaterelated opportunities as part of our financial planning process through a consideration of investments into cleaner energy. For example, in 2019, Great West Life’s Private Debt Investments group in Canada invested over billion in reneable energy proects, hich included ind, solar, and hydro energy proects oever, ith less than 1% of our overall asset value tied to investments in the clean energy markets, the groth opportunities are currently not considered substantive to the financial or strategy impact on the business Liabilities Lifeco has not identified any inherent climaterelated risks or opportunities that could be substantive to its business, and therefore have not had to factor in potential climaterelated liabilities into its financial planning

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 42 usiness strategy Financial services

(C3.) re climaterelated issues considered in te olicy frameor of your organization

es, climaterelated issues are integrated into our general policy framework that relates to our financing activities

(C3.a) n ic olicies are climaterelated issues integrated

Portfolio ype of policy Portfolio Description coverage of policy

Investing Sustainable All of the As an asset owner, climaterelated issues are integrated through our group companies’ Responsible Asset owner Responsible portfolio Investment Policies. At Power Corporation, we have integrated climaterelated issues into the Corporate Investment Social Responsibility Statement, through our commitment to incorporate environmental, social and Policy governance factors into the investment analysis process and active ownership approach. Proxy Voting ur maor subsidiary Lifeco formalied its Sustainable Investment Policy Statement, which expresses the Policy principles and commitments relevant to the incorporation of Environmental, Social and Governance ESG considerations into its investment processes, decisionmaking, and ownership practices, including

with respect to climate change factors. he coverage of the policy has been identified in the Policy Statement, which indicates it applies to all Lifeco subsidiary operating companies and investment management affiliates, and to the investment processes for both direct investments by the Lifeco and investment products. Lifeco also formalied sustainability and specifically climate change risks into its Enterprise Risk Management Framework, which applies to the entire portfolio. In doing so, the policies, processes and controls now explicitly incorporate climate change risk considerations across all risk types.

Investing Sustainable Maority As an asset manager, climaterelated issues are integrated through our group companies’ Responsible Asset Responsible Investment Policies. For example, Lifeco’s major investment affiliates, including GLC Asset Management, of the manager Investment Irish Life Investment Managers, and Putnam Investments, have integrated climaterelated issues into portfolio Policy their sustainable responsible investment policies. heir signatory status with the nited ationsled Principles for Responsible Investment PRI supports their respective policies towards ESG Proxy Voting considerations, including with respect t to climate change, in their investment processes. Policy IGM is committed to incorporating material ESG issues into their investment process across all of our assets under management 100 of AM. Each internal investment team or external subadvisor is responsible for how they integrate climate issues into their processes. verall, the responsible investment policies center on Active ownership his includes engagement with company management and proxy voting, which are important valueadded practice within the investment process.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 43

Integration of G criteria in investment analsis and decisionmaing processes G factors, including climate cange, are considered as part of te investment process. e relative importance of te G factors varies across industries, geograp and time. In analing te riss of eac investment, our investment management team loos to identif, monitor and mitigate G riss and opportunities tat are, or could ecome material to longterm performance. In addition to integrating G factors into our mainstream investing practices, e also emplo screening and tematic investment strategies for some of our accounts and manage exclusions for our institutional clients to address teir uniue G needs. ivestment onl in exceptional circumstances IG generall adopts a polic of engagement over divesting a olding. is approac is consistent it its responsiilit as it does not reduce te investale universe and does not ris a negative impact on returns divesting large onersip positions. elling an investment for G reasons alone is an option of last resort. t IG ealt anagement, te esponsile Investing polic is carried out troug selection and monitoring of all suadvisors. G topics are covered in te ue iligence uestionnaire, including reuests for specific climaterelated information. t acenie Investments, te esponsile Investment polic pertains to te investment activities undertaen te outiue teams. Climate cange is a priorit G topic tat is incorporated en it is a material matter to te investee compan. e determination of te portfolio coverage of te respective policies is ased on te fact tat tese policies appl to all our major susidiaries ere tere is an asset manager role, tere representing a majorit of te portfolio.

Insurance Insurance ajorit ur major susidiar Lifeco as integrated climaterelated considerations into teir insurance underriting underriting underriting policies, ic includes reuirements to conduct scenario modelling on climaterelated of te Insurance polic events and te impact on teir entire reinsurance usiness. ese insuranceunderriting policies portfolio compan reuire Lifeco to model pea perils at te orst locations to assess te lieliood, severit and velocit of extreme eater events, including indstorms, urricanes and cclones. e information from tese scenario models enales tem to assess o muc of a loss te ill tae, ic in turn informs pricing models. e determination of te portfolio coverage of te respective policies is ased on te fact te appl to all of Lifeco’s reinsurance business where there is an insurance underwriting role, tere representing a majorit of te portfolio.

(C3.3) re climaterelated issues factored into your eternal asset manager selection rocess

es, for some assets managed externall

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 44 (C3.3a) o are climaterelated issues factored into your eternal asset manager selection rocess

rocess or actoring cliaterelated oent issues into eternal asset anageent selection

 eiew asset anagers cliate ur aor subsidiaries ieco and include cliaterelated considerations into their eternal asset related olicies anager selection rocess or eale, at ieco, cliaterelated considerations are included as art o the  ssessent o asset anagers cliate selection rocess or eternal anagers, who are reuired to hae clear olicies that align with ieco related erorance rinciles, including with resect to cliate change n addition, through ieco’s major investment affiliates,  eg actie ownershi, ro oting including sset anageent, rish ie nestent anagers, and angora nestents, eternal records, underweighting in high anager selection is undertaen through detailed due diligence assessents that coer actors iact actiities broadl, including seciic cliaterelated criteria At IGM’s subsidiaries, IG Wealth Management and Investment Planning Counsel offer investment funds to their retail clients which are anaged b highualit eternal inestent anagers subadisors s a result, their role is to onitor and ealuate the resonsible inesting ractices o these subadisors, including their incororation o cliate issues ealth anageent reuests all anagers to roide related olicies, accountabilit structures and seciic etrics and eales through the and ue iligence rocesses, with seciic reerence to cliate change he resonsibilit lies with their eternal anagers to anage the oersight and ileentation o integration and actie anageent with the issuers t nestent lanning ounsel, a ooled engageent serice roider is used to wor with coanies to enhance cororate behaiour and strateg related to toics including cliate change

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 45 Carbon Disclosure Project 2020 C4 Targets and performance C argets and erformane

missions targets

(C.1) id you ave an emissions target tat as active in te reorting year

Absolute target

(C.1a) Provide details of your absolute emissions target(s) and rogress made against tose targets.

arget ear arget oes ase Covered Covered arget argeted Covered Covered of arget Is this a Please elain inluding target overage referene target overage or oe ear emissions emissions in ear redution emissions emissions target status in siene number as ategor in base base ear as from base in target in ahieved reorting based set ear of total base ear ear reorting ear target metri ear emissions metri ear tons Ce in seleted tons Ce metri oes tons Ce or oe ategor

Abs Coman oe Ahieved o, but e his target relates to the oe and emissions of Poer ide loation antiiate Poer Cororation, overing our GG emissions Cororation based setting one from eletriit and natural gas at our head offie in the net roerties he redution ahieved to date ere ears mainl driven b emission redution ativities related to lighting and building euiment ugrades Please note that the redution sine is , hih divided b our redution target of ields a ahieved redution

Canadian Countr oe , , , ndera o, but e his target alies to oe and ead ffie region loation antiiate emissions for ifeo’s ownerouied and and based setting one investment roerties in Canada he target Investment in the net eludes oe GG emissions assoiated Proerties ears ith ororate jet fuel use, bau generator diesel Abs fuel use, and refrigerants he target inludes ifeo emissions assoiated ith roertlevel eletriit, natural gas, and steam onsumtion at its ororate head offie and investment roerties he redutions ahieved todate toards target omletion are in art due to emissions redution ativities eg energ effiien foused retrofits and behavioural hanges at ifeo’s ororate head offie and investment roerties in soe for this target

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 47 re er re oes se oere oere re ree oere oere o re s s ese en nn re oere reerene re oere or oe er essons essons n er reon essons essons re ss n sene ner ws eor n se se er s ro se n re n ee reorn se se er o o se er er reorn er re er er essons er er ons e n seee ons e er oes ons e or oe eor

nn onr oe nerw o we s re es o oe n e e reon oon ne essons or eo’s owneroe n n se sen one nesen roeres n n e re nesen n e ne ees oe essons ssoe roeres ers w orore e e se eneror ese s e se n rererns e re nes eo essons ssoe w roeree eer nr s n se onson s orore e oe n nesen roeres e reons ee oe owrs re oeon re n r e o essons reon es e ener een ose reros n eor nes eo’s orore e oe n nesen roeres n soe or s re

s on oe ee o we s re es o ’s Scope 1 we re ne n essons n n w nes se sen one roeree eer nr s e e n e ne ese n rererns onson s ers orore e oe ne e ene se rnon res ne eooo or nn seres ones s esse w e eorn e on o s sness

s on oe ee o we s re es o ’s Scope 1 and we re ne essons n n w nes roer se sen one ee eer nr s e e ese n e ne n rererns onson s orore e ers oe ne e ene se rnon res ne eooo or nn seres ones s esse w e eorn e on o s sness

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 48 (C.) id you ave any oter climaterelated targets tat ere active in te reorting year

aes o ncease ocaon ene conspon o podcon

(C.a) Provide details of your target(s) to increase locarbon energy consumtion or roduction.

ae ea ae ae ae ae pe ae pe ase e ae e e o ae ae s s ae pa s s ae ease epan ncdn eeence ae coeae pe pe ac ene ea o n ea o n o n aceed sas n o an essons pa o an ae coeae ne as asoe ene soce ase ae epon epon ae oeacn se o cae ea ea ea ea nae nens

o1 1 opan soe ea onspon eneae 1 1 1 ceed Since IGM’s o ’s not ssda de ene oned oce pa o an accopsed s oa soces dn s oeacn o an aeeen

on ocaed n nae o oe o anoa pcase een naa doeecc as o a ne s aos eo eane cape poec essons saed on a anadan eeoe naa and e as s neced as s e an no e anadade ocs o s ppene sse and ae o edce ecees a eneae Scope 1 and ene ced s essons pocess s aded and eed anna and eoe o on does s panesp sncan edce IGM’s eenose as essons oopn sppos e deeopen o e een ene nds acoss anada ae s o o naa as sed n IGM’s oned pope Scope 1 o e eneae ae as aceed n 1 1 aceeen 1

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 49 issions ection initities

(C.3) id you ave emissions reduction initiatives tat ere active itin te reorting year ote tat tis can include tose in te lanning andor imlementation ases.

(C.3a) dentify te total number of initiatives at eac stage of develoment and for tose in te imlementation stages te estimated Ce savings.

Ste o eeoent e o initities ot estite nn e sins in etic tons e on o os e

ne inestition

o e ieente

Ieenttion coence

Ieente

ot to e ieente

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 50 (C.3b) Provide details on te initiatives imlemented in te reorting year in te table belo.

Inititie Inititie te stite Scoes ont nn Inestent c stite oent cteo nn Mnto onet eie eio ietie o e sins nit te sins nit cenc – inititie etic cenc – s seciie tons e s in seciie in

ne itin Scoe ont es is inititie etes to o eicienc in oction es o ssii IGM it iins se esect to conetin

otion o tei one Scoe oice iin to et itin coine it se it estin sensos

te te ese Scoe ont o es is inititie etes to o sce c o ssii IGM it consoition esect to te oe eicient se o ese oice sce coss n incin tnsitionin to i it ciities

ne itin Scoe ont es is inititie etes to o eicienc in oction es major subsidiary Lifeco’s iins se itin etoit to o se iin

ne etin Scoe ont o es is inititie etes to o eicienc in entition c major subsidiary Lifeco’s Scoe iins n i insite et oction onitionin eceents ot te se tn etoit n itin etoits t tiesienti oeties c eio not eteine

ne etin Scoe ont es es is inititie etes to o eicienc in entition major subsidiary Lifeco’s Scoe iins n i oiin oetion o oction onitionin s n se

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 51 (C.3c) at metods do you use to drive investment in emissions reduction activities

eod omme

er As part of Power Corporation’s commitment to continuously reduce its limited carbon and energy impacts, a number of buidi urades ad rerofis are coduced auay

edicaed bude for Lifeco as a dedicaed bude for eery efficiecy rojecs ac year a iesiaio is made io ossibe eery eery efficiecy efficiecy rojecs e dedicaed bude i ary based o e ye of rojecs reur o iesme ad oera osiie susaiabiiy imac e emissios reducio oeia Lifeco dedicaed oer miio o eery efficiecyfocused rojecs ii is ieraioa oeroccuied ad iesme roery orfoio ie siifica iesmes ere made i eery efficiecyreaed rojecs oy some of ese rojecs ad emissio reducios accoued for ad reored

iacia oimiaio iacia oimiaio cacuaios are coduced o a rojecbyrojec basis by asse maaeme ad roery cacuaios maaeme eams for major caia eediures a Lifeco’s corporately owned proeries as e as a iesme sereaed fud roeries maaed by is subsidiary L eay disors

moyee eaeme moyee eaeme is a core comoe of Lifecos susaiabiiy sraey Lifeco coiued o ead e madae of is ororae roeries usaiabiiy ori rou ad icuded eams from ieraioa oer occuied roeries e ori rou cosisi of eerieced roery maaeme ad buidi oeraios emoyees es o direc susaiabiiy iiiaies i a aricuar focus o reeouse as reducios a is cororae roeries o far e ori rou as coceraed o rerofis focusi o eery aer ad ase reducio ad e sari of bes racices ad sraeies amo is faciiies e ori rou aso es coordiae eirome emed emoyee eaeme aciiies suc as is ariciaio i e osadi ar ay ad ar our ees ddiioay susaiabiiy iiiaies a ca ead o emissio reducios a e cororae ee are ru rouou e year icudi eery aareess rorams ase reducio iiiaies e aer use reducio ad e romoio of susaiabe commui sraeies

er a aua dedicaed bude eiss for buidi imroemes icudi eery efficiecy rojecs suc as euime reacemes for boiers ii air adi ad sysems

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 52 owcarbon products

(C.) o you classify any of your eisting goods andor services as locarbon roducts or do tey enable a tird arty to avoid emissions

(C.a) Provide details of your roducts andor services tat you classify as locarbon roducts or tat enable a tird arty to avoid emissions.

eel of escription of product Are tese aonomy, reenue of Asset Comment aggregation roup of products low proect, or from low total classes carbon metodology carbon portfolio product products used to classify products alue types or do tey products as low in te enable carbon or to reporting aoided calculate aoided year emissions emissions

roup of Property management ow ter eal roug ifeco’s subsidiary GWL Realty products serices troug carbon reen buildings estate Adisors, select assets under management Lifeco’s subsidiary product eg, A property ae been certified as green buildings ealty Adisors under certifications andor A certifications urtermore, ealty Adisors is woring wit building owners and tenants in teir office and multiresidential portfolio to minimie te carbon footprint of tese assets by prudently managing teir oerall enironmental impact

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 53 Leel of escritio of roduct re tese aooy reeue of sset oet areatio Grou of roducts lo roect or fro lo total classes carbo etodoloy carbo ortfolio roduct roducts used to classify roducts alue tyes or do tey roducts as lo i te eable carbo or to reorti aoided calculate aoided year eissios eissios

Grou of rou Lifeco’s Lo ter uta esti uta offers to sustaiability focused roducts subsidiary uta carbo offers to Listed euity fuds it a focus o estets – roducts sustaiable uity eiroetal social ad oerace ustaiable esti focused euity erforace of ic cliate cae is a uds fuds cooet uta ustaiable Leaders ustaiable uture ud iests i coaies it a ud dedicatio to leadersi i fiacially ustaiable Leaders aterial sustaiable busiess ractices ud icludi teir eiroetal iact ad oerall cliate ris ad oortuities uta ustaiable uture ud iests

i solutiosorieted coaies dedicated to soli our biest lobal sustaiability callees icludi cliate ris ad oortuities e G issues uta loos at are based o tose issues tat are aterial ad releat to te secific sector eoray asset class ad coay uta cosiders G issues it a coo sese iestet releat forardlooi focus When Putnam’s Sustainable esti ea assesses otetial iestets i carboitesie sectors oe eleet of te aalysis is easuri carbo itesity te ratio of carbo eissios coe ad to reeues ic oralies for coay sie oeer uta does ot elicitly scree out or eclude eery or utility coaies ic ofte ae a ier carbo itesity We uta assesses otetial iestets i carbo itesie sectors a ey cosideratio is teir aalysis for te future rate of cae i tose etrics ad te aitude of iroeet tat tey eect ie idiidual coay strateies

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 54 ee esitin ut e these anm eenue sset mment aeatin u uts et m tta asses abn meth abn ti ut uts use t assi uts aue tes the uts as in the enabe abn t etin aie auate aie ea emissins emissins

u ’s subsiia the nestin uts aenie ba abn aenie ba iste ninmenta uit ut ninmenta uit un aenie an uit un ba eaeshi aie inests in the un an an emissins abn tansitin aimum he aimum iesiiatin uns iesiiatin an s uns an s timie t ess abn he aenie ba eaeshi mat un an eue iet ssi ue inestment

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 55 Carbon Disclosure Project 2020 C5 Emissions methodology sss

s sss

(C.1) Provide your base year and base year emissions (coes 1 and ).

s s s s sss s

sss

(C.) elect te name of te standard rotocol or metodology you ave used to collect activity data and calculate emissions.

s s s

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 57 Carbon Disclosure Project 2020 C6 Emissions data sss

sss

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons COe

ss sss s

sss

(C6.) escribe your organizations approach to reporting Scope emissions.

s s

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 59 sss

(C6.) What were your organizations gross global Scope emissions in metric tons COe

s s

s s sss ss s s ss ss ss s s ss s s s ss s s sss s

(C6.) re there any sources (e.g. acilities speciic s actiities geographies etc.) o Scope 1 an Scope emissions that are within your selecte reporting bounary which are not inclue in your isclosure

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 60 sss

(C6.5) Account for your organization’s gross global Scope 3 emissions, isclosing an eplaining any eclusions.

s sss s ss sss s ss s

s s s sss s s ss ss s s s s sss

ss s s s s s

s sss s s

s sss

s sss s s s s s s sss s s s s sss s s sss ss s sss s

s s s s sss s s s s s ss s

s s s s

sss s sss s s s s s s sss

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 61 s sss s ss sss s ss s

s s s s s sss s s s sss s s s

s s s sss sss s s s s s s sss s sss

sss s s s s sss s sss

s sss

s sss s sss s sss

s s s s s s sss s

s sss

s s s s s sss s sss s s s s sss ss

sss s s s s ower Corporation’s s s –

s sss s s s s s s s sss

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 62 ope aation etri tons issions aation erentae o ease epain ateor stats Ce etooo eissions aate sin ata otaine ro sppiers or ae ain partners

roessin o ot reeant ien te natre o or siness we o so prots epanation not proess prots or sae proie

se o so ot reeant e o not se prots in or siness prots epanation were te se o so prots wo e proie reeant

n o ie ot reeant e o not se prots in or siness treatent o epanation were en o ie treatent wo e so prots proie reeant

ownstrea ot reeant e operation o assets tat are owne ease assets epanation ower Corporation an ieo atin as proie essors an ease to oter entities in te

reportin ear are area ine in ope or ope

ranises ot reeant e o not own an ranises epanation

proie

ter ot reeant o oter pstrea eissions are pstrea epanation onsiere ateria proie

ter ot reeant o oter ownstrea eissions are ownstrea epanation onsiere ateria proie

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 63 issions intensities

(C6.) escribe your gross global combine Scope an emissions for te reporting year in metric tons Ce per unit currency total reenue an proie any aitional intensity metrics tat are appropriate to your business operations.

ntensit etri nerator etri etri ope ire iretion eason or ane ire ross oa enoinator enoinator se ane o oine ope nit tota ro ane an eissions preios etri tons Ce ear

nit tota oationase nrease ower Corporation reenes reene inrease an earoer ear eissions inrease e to a oine inrease in natra as rerierant an aiation e eissions o tCe an a oine inrease in eetriit an stea eissions o tCe

tie oationase nrease poee ont at ower eiaent Corporation inrease an epoee earoerear eissions inrease e to a oine inrease in natra as rerierant an aiation e eissions o tCe an a oine inrease in eetriit an stea eissions o tCe

are oot oationase nrease ower Corporations sare ootae inrease an earoer ear eissions inrease e to a oine inrease in natra as rerierant an aiation e eissions o tCe an a oine inrease in eetriit an stea eissions o tCe

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 64 Carbon Disclosure Project 2020 C7 Emissions breakdown C issions reaown

issions perorane

(C.) o o your gross global emissions (Scope an combine) for te reporting year compare to tose of te preious reporting year

nrease

(C.a) entify te reasons for any cange in your gross global emissions (Scope an combine), an for eac of tem specify o your emissions compare to te preious year.

eason Cane in iretion issions ease epain aation eissions o ane ae etri tons Ce

Cane in erease n we erease or ope an eissions e to a erease in te aont o renewae renewae ener prase or te ea ie s a rest ope an eissions were ener ree tCe e iie tis ner te tota ope an eissions in onsption to aiee an oera erease

e aation is as oows

ter erease n we erease or ope an eissions e to erease eie trae eissions ris ie epoees t tCe a itin retroit in te ea ie tCe an retion ree aiation ieae tCe s a rest ope an eissions were ree atiities tCe e iie tis ner te tota ope an eissions in to aiee an oera erease

e aation is as oows

iestent o ane

isitions o ane

erers o ane

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 66 eason Cane in iretion issions ease epain aation eissions o ane ae etri tons Ce

Cane in nrease n we inrease or ope an eissions e to an inrease in siness otpt trae s a rest ope an eissions were inrease tCe e iie tis ner te tota ope an eissions in to aiee an oera inrease ro

siness trae

e aation is as oows

Cane in erease n we erease or ope an eissions ro a ane in eission etooo ators s a rest ope an eissions were ree tCe e iie tis ner te tota ope an eissions in to aiee an oera erease ro

eission ators e aation is as oows

Cane in o ane onar

Cane in nrease n we inrease or ope an eissions restin ro weater an psia opan anes s a rest ope an eissions were inrease tCe e iie operatin tis ner te tota ope an eissions in to aiee an oera onitions inrease ro weater an opan anes e aation is as oows

nientiie nrease n we inrease or ope an eissions restin ro nientiie anes s a rest ope an eissions inrease tCe e iie tis ner

te tota ope an eissions in to aiee an oera inrease ro nientiie anes e aation is as oows

ter nrease n we inrease or ope an eissions restin ro an inrease in te se o iese rerierant topps s a rest ope an eissions inrease tCe

e iie tis ner te tota ope an eissions in to aiee an oera inrease e aation is as oows

(C.b) Are your emissions performance calculations in C. an C.a base on a locationbase Scope emissions figure or a maret base Scope emissions figure

oationase

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 67 Carbon Disclosure Project 2020 C8 Energy C ner

ner spen

(C.) at percentage of your total operational spen in te reporting year as on energy

ore tan t ess tan or ea to

nerreate atiities

(C.) Select ic energyrelate actiities your organization as unertaen.

tiit niate weter or oraniation nertoo tis enerreate atiit in te reportin ear

Consption o e ein eestos es

Consption o prase or aire eetriit es

Consption o prase or aire eat o

Consption o prase or aire stea es

Consption o prase or aire ooin o

eneration o eetriit eat stea or ooin o

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

tiit eatin ae ro ro non ota renewae renewae sores renewae sores nonrenewae

Consption o e ein eesto

Consption o prase or aire eetriit

Consption o prase or aire stea

ota ener onsption

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 69 Carbon Disclosure Project 2020 C9 Additional metrics C itiona etris

ter iatereate etris

(C.) roide any additional climaterelated metrics releant to your usiness.

esription etri ae etri etri iretion ease epain nerator enoinator ane o ane intensit ro etri on preios ear

ieo ani tCe nrease ani waste ro ieos orporate properties inrease aste tCe etween an

ter ieo tCe nrease issions ro ieos Canaian ereate n properties ereate inrease tCe etween an is was n e to inreases in natra as sae tCe ani roperties waste tCe an stea tCe ese inreases orre espite a oine retion o tCe ro eetriit water an waste to ener

ter ieo tCe erease issions ro ieos Canaian ease properties ease erease tCe e to ereases in natra as an roperties eetriit eissions tCe wie ani waste stea an water sowe a oine inrease o tCe

ter ieo tCe nrease ater eissions ro ieos Canaian Corporate an ater nternationa properties inrease tCe etween an

ter ieo tCe erease ieos siness trae eissions were ree siness rae tCe ost e to ereases in air trae tCe an reirse ieae tCe

ter ieo tCe erease ieos paper eissions were ree tCe aper etween an e to a erease in paper sae at Canaian Corporate oies

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 71 esription etri ae etri etri iretion ease epain nerator enoinator ane o ane intensit ro etri on preios ear

ieo ner nrease ieos asote ener sae in te orporate properties sae inrease etween an is was are e to inreases in natra as sae o stea o an et e o

ieo ner t nrease s a rest o inreases in natra as an stea sae sae priari ener intensit in te ieo Corporate properties inrease or t etween an

ter ieo nrease ieo’s water onsption inrease etween ater se an as a rest o a inrease in power etireenttna onsption a inrease in Canaian Corporate onsption a inrease in erest onsption a inrease in Canaa ie onsption an a inrease in ris ies water sae

ter ieo t nrease Lifeco’s water se ntensit inrease t e ater se to an inrease in oera area o an an inrease in ntensit onsption aross a orporate portoios

ter ieo etri nrease ieos ani waste eneration inrease etri ani aste tonnes tonnes etween an e priari to inreases ro te Canaian Corporate properties o tonnes an te power etireenttna properties o tonnes

ter ieo etri erease ieos waste to ener eneration erease aste to tonnes etri tonnes etween an e to a erease ner ro te Canaian Corporate roperties o tonnes an a oine retion ro te an rean properties o tonnes

ter ieo erent erease ieos waste iersion rate erease sit etween aste an e to an inrease in oera rein o iersion ate tonnes an a erease in tota waste o tonnes

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 72 esciio eic e eic eic iecio ese ei eo eoio ce of ce iesi fo eic o eios e

se e cese se eeio fo e e ffice icese e ewee o eissios wee e i 2018). With the consolidation of IGM’s Winnipeg head offices, icese e of eoe occ ei owe office sce eefoe icesi e wse oce

e e e cese issios fo e esos e oe ofoio oe icese e ewee o e e o icese i eecici eissios e i fo ew iis eci f cci

e e ecese issios fo s ese ofoio ecese e Lese ewee o e e o ecese i eecici oeies eissios e

e e ecese e eissios fo s e ffice ecese e e ewee o

e e ecese s siess e eissios ecese e fo siess e o e o ecese i eoee coeci i e eiees

owe e cese Waste from Power Corporation’s corporate office increased ooio e i e o icese i wse eeio se i ces iLe

e owe e ecese Emissions from Power Corporation’s leased offices decreased ooio e ewee e o ecese i Lese s cie we we se oeies

e owe e cese owe ooios cooe e eissios icese ooio e ewee e o ecio i ooe i ei o e e

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 73 Carbon Disclosure Project 2020 C10 Verification

C10 erification

erification

(C.) ndicate the erificationassurance status that applies to your reported emissions.

cope erificationassrance stats

cope 1 hirdpart erification or assrance process in place

cope 2 locationased or maretased) hirdpart erification or assrance process in place

cope hirdpart erification or assrance process in place

(C.a) roide further details of the erificationassurance undertaken for your cope emissions and attach the releant statements.

erification or assrance tats in the pe of erification or ttach the statement eleant standard Proportion of reported ccle in place crrent reporting assrance Pagesection reference emissions erified ) ear

nnal process Complete imited assrance ailale on the I10 100 CP dataase

(C.) roide further details of the erificationassurance undertaken for your cope 2 emissions and attach the releant statements.

cope 2 erification tats in the pe of erification or ttach the statement eleant standard Proportion of reported approach crrent assrance Page section reference emissions erified ) or assrance reporting ear ccle in place

cope 2 nnal Complete imited assrance ailale on the I10 100 location process CP dataase

ased

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 75

(C.c) roide further details of the erificationassurance undertaken for your cope emissions and attach the releant statements.

cope categor erification tats in the pe of erification ttach the statement eleant standard Proportion of reported or assrance crrent or assrance Page section emissions erified ) ccle in place reporting ear reference

cope Waste nnal Complete imited assrance ailale on the I10 generated in process CP dataase

operations

cope siness nnal Complete imited assrance ailale on the I10 1 trael process CP dataase

cope Inestments nnal Complete imited assrance ailale on the I10 process CP dataase

ther erified data

(C.2) o you erify any climaterelated information reported in your C disclosure other than the emissions figures reported in C. C. and C.

(C.2a) Which data points ithin your C disclosure hae een erified and hich erification standards ere used

isclosre modle ata erified erification Please eplain erification relates to standard

C. Emissions data ear on ear change in emissions IE 10 PwC erified the ear on ear change in emissions for cope 1, cope 2, cope 1) and cope . ee attached PwC ssrance tatement.

C. Emissions data ear on ear change in emissions IE 10 PwC erified the ear on ear change in emissions for cope 1, cope 2, cope 2) and cope . ee attached PwC ssrance tatement.

C. Emissions data ear on ear change in emissions IE 10 PwC erified the ear on ear change in emissions for cope 1, cope 2, cope ) and cope . ee attached PwC ssrance tatement.

C. Emissions data Change in cope emissions against IE 10 PwC erified the ear on ear change in emissions for cope 1, cope 2, a ase ear not target related) and cope . ee attached PwC ssrance tatement.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 76 Carbon Disclosure Project 2020 C11 Carbon pricing C11 Caron pricing

Proectased caron credits

(C.2) as your organization originated or purchased any proectased caron credits ithin the reporting period

(C.2a) roide details of the proectased caron credits originated or purchased y your organization in the reporting period.

Credit origination Proect tpe Proect identification erified to which mer of mer of Credits Prpose, or credit prchase standard credits credits metric cancelled e.g. compliance metric tons tons C2e) C2e) is adsted olme

Credit prchase andfill gas Integrated Gas ecoer ther C Grop 1,1. 1,1. es olntar erices Inc. IG) operates ppl ffsetting the IG EsseWindsor egional andfill Gas Captre and estrction Proect, a facilit designed for the collection and flaring of landfill gas G) originating at the Esse Windsor egional andfill.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 78 Internal price on caron

(C.) oes your organization use an internal price on caron

(C.a) roide details of ho your organization uses an internal price on caron.

ectie for GG pplication ctal prices) ariance of prices) sed pe of Impact implication implementing cope sed crrenc internal an internal metric ton) caron caron price price

aigate GG cope 1 he price is 20 Prices sed ar from 20tonne C2e to hadow GW ealt disors, a whollowned asset reglations applied to all a highend hpothetical scenario) of price management ssidiar of ifeco, ses caron cope 2 ifeco owner 210tonne C2e. prices for informational prposes – to determine taeholder Implicit occpied and potential ftre operating cost increases e.g., epectations he GG emissions inentor report for price inestment tilit ependitre) at properties within its GW ealt disors incldes forward properties in Canadian managed portfolio. hese prices are looing caron pricing assessments Canada assessed nder different pricing scenarios, ased on the goernment of Canadas throgh its reflecting caron prices that are considered commitment to caron pricing ill C, ssidiar necessar to achiee arios caron redction or the Greenhose Gas Polltion Pricing GW ealt and caron netralit targets set forth the ct). he assessment incldes analsis of disors. Goernment of Canada. ogether, these shadow forwardlooing caron pricing in price scenarios proide insight into possile Canada, which egins at 20 per tonne ftre operating epenses and associated C2e in 201 and will rise 10 per operational and financial riss across the real tonne to 0 per tonne of C2e 2022. estate portfolio. n an ad hoc asis, GW ealt More specificall, Caron tapricing disors considers implicit caron prices dring implications on tilit costs Epected capital dgeting and ependitre on energ 2021 caron costs of 0tonne C2e, retrofits for Lifeco’s owneroccpied and Epected 2022 caron costs of inestment properties. hese prices help 0tonne of C2e, and Caron determine the tre financial paac, and point tapricing implications on tilit costs. to the efficac of conseration initiaties and dditionall, the forwardlooing caron retrofits that span more than 12 ears. erall, pricing analsis transition ris the se of shadow and implicit caron prices assessment) incldes a scenario of pricing and different caron pricing scenarios) GW at 210tonne C2e 200, which ealt disors has not significantl impacted Canada’s Ecofiscal Commission has ifecos siness decisions. his is de to recommended for the emissions and operating costs from tilities ependitres at energ targets to e achieed. ifecos Canadian owneroccpied and inestment properties) acconting for 1 of total operating costs nder all assessed caron prices.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 79 ectie for lication ctal rices ariance of rices sed e of mact imlication imlementin coe sed crrenc internal an internal metric ton caron caron rice rice

aiate coe he rice is rices sed ar from tonne Ce to hadow L ealt disors a whollowned asset relations alied to all a hihend hothetical scenario of rice manaement ssidiar of Lifeco ses caron coe Lifeco owner tonne Ce rices for informational roses – to determine taeholder occied and mlicit otential ftre oeratin cost increases e eectations inestment he emissions inentor reort for rice tilit eenditre at roerties within its roerties in L ealt disors incldes forward Canadian manaed ortfolio hese rices are Canada looin caron ricin assessments assessed nder different ricin scenarios throh its ased on the oernment of Canadas reflectin caron rices that are considered ssidiar commitment to caron ricin ill C necessar to achiee arios caron redction L ealt or the reenhose as olltion ricin and caron netralit tarets set forth the disors ct he assessment incldes analsis of oernment of Canada oether these shadow forwardlooin caron ricin in rice scenarios roide insiht into ossile Canada which eins at er tonne ftre oeratin eenses and associated Ce in and will rise er oerational and financial riss across the real tonne to er tonne of Ce estate ortfolio n an ad hoc asis L ealt ore secificall Caron taricin disors considers imlicit caron rices drin imlications on tilit costs Eected caital detin and eenditre on ener caron costs of tonne Ce retrofits for Lifeco’s owneroccied and Eected caron costs of inestment roerties hese rices hel tonne of Ce and Caron determine the tre financial aac and oint taricin imlications on tilit costs to the efficac of conseration initiaties and dditionall the forwardlooin caron retrofits that san more than ears erall ricin analsis transition ris the se of shadow and imlicit caron rices assessment incldes a scenario of ricin and different caron ricin scenarios L at tonne Ce which ealt disors has not sinificantl imacted Canada’s Ecofiscal Commission has Lifecos siness decisions his is de to recommended for the emissions and oeratin costs from tilities eenditres at ener tarets to e achieed Lifecos Canadian owneroccied and inestment roerties accontin for of total oeratin costs nder all assessed caron rices

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 80 ectie for lication ctal rices ariance of rices sed e of mact imlication imlementin coe sed crrenc internal an internal metric ton caron caron rice rice

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 81 ecie for licaion cal rices ariance of rices sed e of mac imlicaion imlemenin coe sed crrenc inernal an inernal meric on caron caron rice rice

aiae coe he rice is rices sed ar from onne Ce o hadow eal disors a whollowned asse relaions alied o all a hihend hoheical scenario of rice manaemen ssidiar of ifeco ses caron coe ifeco owner onne Ce rices for informaional roses – o deermine aeholder occied and mlici oenial fre oerain cos increases e eecaions inesmen he emissions inenor reor for rice ili eendire a roeries wihin is roeries in eal disors incldes forward Canadian manaed orfolio hese rices are Canada looin caron ricin assessmens assessed nder differen ricin scenarios hroh is ased on he oernmen of Canadas reflecin caron rices ha are considered ssidiar commimen o caron ricin ill C necessar o achiee arios caron redcion eal or he reenhose as ollion ricin and caron nerali ares se forh he disors c he assessmen incldes analsis of oernmen of Canada oeher hese shadow forwardlooin caron ricin in rice scenarios roide insih ino ossile Canada which eins a er onne fre oerain eenses and associaed Ce in and will rise er oeraional and financial riss across he real onne o er onne of Ce esae orfolio n an ad hoc asis eal ore secificall Caron aricin disors considers imlici caron rices drin imlicaions on ili coss Eeced caial dein and eendire on ener caron coss of onne Ce retrofits for Lifeco’s owneroccied and Eeced caron coss of inesmen roeries hese rices hel onne of Ce and Caron deermine he re financial aac and oin aricin imlicaions on ili coss o he efficac of conseraion iniiaies and ddiionall he forwardlooin caron rerofis ha san more han ears erall ricin analsis ransiion ris he se of shadow and imlici caron rices assessmen incldes a scenario of ricin and differen caron ricin scenarios a onne Ce which eal disors has no sinificanl imaced Canada’s Ecofiscal Commission has ifecos siness decisions his is de o recommended for he emissions and oerain coss from iliies eendires a ener ares o e achieed ifecos Canadian owneroccied and inesmen roeries acconin for of oal oerain coss nder all assessed caron rices

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 82 ectie for lication ctal rices ariance of rices sed e of mact imlication imlementin coe sed crrenc internal an internal metric ton caron caron rice rice

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 83 ectie for lication ctal rices ariance of rices sed e of mact imlication imlementin coe sed crrenc internal an internal metric ton caron caron rice rice

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 84 Carbon Disclosure Project 2020 C12 Engagement C Enaement

ale chain enaement

(C2.) o you engage ith your alue chain on climaterelated issues

es or sliers es or cstomers es or inestee comanies es other artners in the ale chain

(C2.a) roide details of your climaterelated supplier engagement strategy.

e of etails of of sliers total of ationale for the coerae of or mact of enaement incldin Comment enaement enaement nmer rocrement slier enaement measres of sccess related send direct coe and indirect emissions as reorted in C

nnoation nnoation and s art of or esonsile rocrement enain with sliers and collaoration collaoration olic and hirdart Code of Condct contractors we hae een ale to sorce chanin we enae with or sliers and more enironmentall friendl rodcts marets contractors to inflence the roision of incldin LE lihtin ener efficient enironmentall friendl rodcts and ildin eiment sstainal sorced serices for or siness aer rodcts amon others r measre of sccess is the collaoration

and innoation we inflence in or sl chain and the nmer of more enironmentall friendl rodcts and serices we rocre

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 86 e of etails of of sliers total of ationale for the coerae of or mact of enaement incldin Comment enaement enaement nmer rocrement slier enaement measres of sccess related send direct coe and indirect emissions as reorted in C

nformation nclded climate Lifeco secificall enaes with its enain with its sliers to roide Based on Lifeco’s collection chane in slier critical sliers to nderstand the rodcts and serices that redce its resonse to estion nderstandin selection rodcts and serices that cold redce enironmental footrint Lifeco has een the coman enaes slier manaement the enironmental footrint of its ale to achiee its reen ildin with of its coe ehaior mechanism ildins oerations and rocesses certification tarets for its cororate head sliers which inclde lier ealation and its lier is offices and inestment roerties the waste manaement

anaement olic incldes comanies water rthermore the se of more sstainailit incldin climate tilities aer sliers enironmentall friendl rodcts and chane as one of its considerations and cororate trael serices from its sliers has contrited his incldes sliers that sort sliers who roide to its tareted redctions for Lifeco in imroin the sstainailit of the necessar Canadian roerties ecificall in its real estate assets as well as other information for Lifeco to Lifeco achieed a redction in the rodcts and serices that enale the calclate the scoe and emissions when coman to redce ener water and enironmental imact comared to its aseline ear of material consmtion e ildin e emissions of eiment retrofits tilit roiders its oerations data centre otimiation LE lihtin aer and ildin materials worin collaoratiel with these sliers to encorae alternatie and reen rodcts and serices it enales Lifeco to meet its reen ildin certification tarets as well as its coe redction taret for Canadian roerties to achiee a redction and a redction ased on a aseline ear lease note that the data roided for this estion relates to Lifeco’s Canadian operations only.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 87 ype of etails of of sppliers total of ationale for te coerae of yor pact of enaeent incldin Coent enaeent enaeent y ner procreent spplier enaeent easres of sccess related spend direct cope and indirect eissions as reported in C.

nforation Collect cliate . s a financial serices copany IGM’s operating companies are committed collection cane and ires sadvisors to manage clients’ to responsile inestin and nderstand nderstandin caron inestents and leases offices for teir te ale of interation and actie spplier eaior inforation at eployees and adisors to or and to onersip in te inestent process. ey least annally fro eet it clients. nderstandin teir reest and reie related policies sppliers spplier eaior is an iportant accontaility strctres and specific coponent of teir cliaterelated etrics and eaples tro te

stratey and inoles reestin and e ilience processes for eternal cliaterelated inforation at least inestent anaers en tey are ired annally fro teir sppliers. to proide sadisory serices for teir inestent fnds. eir easre of

sccess is te percentae of sadisors o are leaders in responsile inestin. or eaple of ealt Management’s sub advisors were PRI sinatories as of eceer . is is on target with IG’s commitment to eclsiely or it sinatories y end of . IGM’s leased offices contribute the largest percentae of teir eissions fro direct operations and tey are coitted to enain it landlords at least annally to ater inforation relatin to enery ater and aste sae and eissions. ey or it a tirdparty copany tat is specialied in enery data anaeent and ensre tat teir landlords nderstand te iportance of enironental sstainability to IGM’s business. Measures of sccess ill e te of leased offices it actal enery data erss estiates crrently approiately for electricity and for natral as and te eissions per sare foot intensity of teir leased ildins crrently . tonnes Ce per sare foot.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 88 (C2.) ie details of your climaterelated engagement strategy ith your customers.

ype of etails of of customer Portfolio coverage Please eplain the rationale for selecting this group of Impact of engagement including measures of success engagement engagement customers related cope total or customers and scope of engagement by emissions outstanding number as reported in .

ducation Run an Minority of the hrough its subsidiary G Realty dvisors ifeco n an ongoing basis G Realty dvisors conducts information engagement portfolio engages with the tenants residents and occupants of its tenant and resident engagement satisfaction surveys to sharing campaign to downstream real estate assets under management to inform its continuous improvement efforts at both its educate better understand their changing needs to enhance its commercial and multiresidential properties under

customers services and to endeavor to eceed their epectations management. Results from these satisfaction surveys are about your including with respect to energy management. or tied to the internal performance metrics of property climate change eample G Realty dvisors engages to share management teams. Property and asset management performance information on sustainability related metrics such as green teams as reuired address issues and followups and strategy building certification status energy performance e.g. pertaining to the surveys. y engaging with the energy reductions water use efficiency waste production occupants of its buildings G Realty dvisors is able to

and GG emissions of the property. contribute to the continuous improvement of the efficiency of its assets under management. or eample G Realty dvisors’ commercial and multiresidential engagement by G Realty dvisors staff can lead property managers continue to engage and educate tenants to adopt and install higher efficiency euipment tenants on topics of interest including sharing relevant for their spaces. In G Realty dvisors achieved a climate changerelated information such as GG . GG emissions across its office and multi emissions performance and programs in place to improve residential portfolio compared to its baseline in GG emissions at the propertylevel such as the part due to the efforts of tenants and residents. ustainability enchmaring and onservation Program for G Realty dvisors managed office assets establishing energy water waste and GG targets. G Realty dvisors holds monthly tenant meetings interacts through green teams worshops and education events issues newsletters and hosts building events to encourage tenant participation in activities such as arth our arth ayee and ational aste Reduction ee. Please note these cope emissions are specifically associated with the categories “Waste generated in operations” and “Investments” listed in question 6.5.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 89 pe o etails o o customer ortolio coverage lease eplain the rationale or selecting this group o Impact o engagement including measures o success engagement engagement customers related cope total or customers and scope o engagement emissions outstanding numer as reported in 6.5

ducation un an inorit o the hrough its asset management ailiate sset he measure o success o the education and awareness inormation engagement portolio anagement ieco engages with clients to promote campaign is traced ased on the numer o clients sharing campaign to acceptance and etter education or investors inancial engaged on responsile investing including climate educate advisors and investment consultants. In the related issues through the provision o training modules

customers engagement included developing a roust advisor as well as the traic and use o the sset aout our training module case studies videos and interactive anagement esponsile Investing wepage. ince its climate change eercises and epanding the readth and depth o the inception in the education and awareness perormance esponsile Investing wepage including the campaign has een completed advisors with a and strateg development o short videos articles and I policies. urther having made progress on the module. he revamped sset anagement esponsile Investing

wepage deuted in earl and recorded a increase in the numer o unique visitors.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 90 (C2.c) ie details of your climaterelated engagement strategy ith your inestee companies.

pe o etails o engagement o cope ortolio ationale or the coverage o our engagement Impact o engagement including measures o engagement investees emissions as coverage success numer reported in .a.

ngagement Included climate inorit o hrough its susidiar Irish ie Investment anagers Irish ie Investment anagers’ engagement incentiviation change in investee the portolio ieco engages with investee companies on speciic eorts last ear have enaled indirect selectionmanagement climate related topics. In Irish ie Investment collaorative engagement with 5 companies changing mechanisms anagers oined the onisclosure ampaign – a as part o the onisclosure ampaign investee group o investors who ocus on companies that did promoting greater climaterelated disclosure. ehavior not disclose last ear and some o the iggest emitters peciicall Irish ie Investment anagers on o the largest echanges across the world. he directl engaged with companies on climate also conduct collaorative engagement through the changerelated issues. ne engagement limate ction roup ocusing on maor industrial resulted in a compan committing to improve emitters to ensure their transition plans align with its disclosure o greenhouse gas emissions the aris greement. and climate changerelated riss.

Inormation ollect climate change inorit o hrough its asset management ailiate utnam ieco assesses its success the numer o collection and caron the portolio Investments ieco engages with the companies held companies engaged and the progress the have understanding inormation at least within the utnam ustainale eaders und and the made in sustainailit including climaterelated investee annuall rom long utnam ustainale uture und. or eample the disclosures. his ear the ongoing dialogues with ehaviour time investees send annual individuall tailored letters to the s o compan management teams and oard all the companies acnowledging eorts to date and memers included discussions on corporate encouraging uture progress on e sustainailit issues strateg oard oversight and eternal reporting. speciic to each compan including on climaterelated everal companies in their portolio have matters. This year, Putnam sent CEO letters to the firm’s pulished inaugural sustainailit reports top equit holdings representing approimatel 5 o increased communications on metrics equit assets under management. including climaterelated inormation or made signiicant progress in identiing material sustainailit issues ater woring with multiple staeholders including within Lifeco’s teams.

Inormation ollect climate change inorit o he Investors eal ropert und invests in commercial ropert managers are engaged to optimie the collection and caron the portolio industrial and residential uildings across anada. ue level o actual energ data used in the inormation at least to the nature o the und I wors with a thirdpart management and calculation o emissions. I’s understanding annuall rom long energ data management to collect energ water and measure o success will e an increase in the investee time investees waste usage and emissions. he solicit inormation o actual emission data reported or the Investors ehaviour rom all propert managers across the und annuall eal ropert und versus estimates currentl and estimate data where inormation is not availale to actual as well as a decrease in the square determine total portolio emissions. ootage emission intensit o the uildings currentl .55 tonnes e per square oot.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 91 (C2.d) ie details of your climaterelated engagement strategy ith other partners in the alue chain.

Other artners – Poer Cororation engagement ith its maor susiiaries

Method of engagement – e engage ith our maor susiiaries through a grouie C committee on a range of initiaties, incluing emissions an climate change.

Strategy for prioritizing engagements – e rioritie our engagements ith susiiaries here e hae financial control an significant influence, secifically our maor ulicly trae susiiaries, Lifeco an .

Measures of success – e measure our success ase on the rogress eing achiee. or eamle, oer the ast year, e hel to aareness sessions ith our maor susiiaries to unerstan their caron an energy management strategies. Consierale efforts ere mae y our maor susiiaries to strengthen their commitments on reucing emissions an isclosing their climate change strategies, resulting in eternal recognition

 n , Poer Cororation as inclue to the Euronet igeo Eiris orl ne, hich istinguishes comanies from Euroe, orth merica, an the siaPacific regions for haing achiee the most aance E erformance.  Poer Cororation an maintaine listing status on the TEoo loal ne.  Lifeco’s real estate subsidiary GWL Realty Advisors was once again recognie as a leaer in sustainaility y the loal eal Estate ustainaility enchmar E, lacing among the to of comanies gloally an the to in the loal iersifie category, an earning their fifth consecutie reen tar raning.  IGM Financial maintained its listing status on Sustainalytics’ Jantzi Social Index.

Other artners – Lifeco’s engagement with community organizations

Method of engagement – Lifeco interacts ith communities through ongoing ialogue an facetoface meetings to elore oortunities to suort communityase nees on a ie range of sustainaility issues, incluing ut not limite to climate change.

Strategy for prioritizing engagements – Engagements are rioritie ase on the nees ientifie y the community organiations an their specific focus areas. Within Lifeco’s environment focus, they prioritize organizations that are supporting carbon mitigation an aatation strategies.

Measures of success – Lifeco measures its success y the numer of community roects an their associate imacts in aressing climate change issues. or eamle, in , Lifeco continue its suort for the nternational nstitute for ustainale eeloment . s art of this partnership, last year Lifeco supported the IISD’s establishment of the climate services centre – a significant rogression of its initial suort in estalishing the Prairie Climate Centre at the niersity of innieg. The ne climate serice centre ill roie goernment, usiness an ciil society ecision maers access to the ata, guiance, research, nolege echange, training an caacity uiling neee to reuce their ulneraility to climate ariaility an change an tae aantage of emerging oortunities.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 92 ublic policy engagement

(C2.) o you engage in actiities that could either directly or indirectly influence pulic policy on climaterelated issues through any of the folloing

rade associations Funding research organizations ther

(C2.) re you on the oard of any trade associations or do you proide funding eyond memership

(C2.c) nter the details of those trade associations that are likely to take a position on climate change legislation.

rade Is your Please explain the trade association’s position ow have you influenced, or are you attempting to association position on influence their position climate change consistent with theirs

International onsistent he IF is committed to heightening nowledge and awareness of Power Corporation’s Chairman (and Co until conomic the maor issues concerning economic globalization, with a February of , aul Desmarais, Jr., is the hair Forum of the particular emphasis on the relations between the Americas and of the oard of Governors of the IF anada. Americas IF other continents. hey include issues related to climate change. hrough his involvement in the IF, we support anada efforts being taen to increase awareness and collaboration between international governments on a wide range of issues, including climate change.

rooings onsistent rooings established the International Advisory ouncil, a group of Power Corporation’s Chairman and o International distinguished international business and community leaders, to until February of , aul Desmarais Jr., is Advisory extend its outreach and relevance to other countries and increase its ohairman of he rooings International ouncil ability to inform the American public and policymaers about global Advisory ouncil and a member of their oard of developments, including energy and environment issues. rustees. hrough his involvement, we support efforts being taen to develop effective, pragmatic policies for addressing national and global issues including energy and environmental issues.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 93 rade s or Please explain the trade association’s position ow hae o inlenced or are o attemptin to association position on inlence their position climate chane consistent with theirs

Canadian Consistent he C spports the adancement o nowlede into etter hroh the memership o its emploees on the nstitte o nderstandin the impact o climate chane and has deeloped a C ieco is enain within the indstr to etter ctaries (C Climate Change and Sustainability Committee. Part of the Institute’s nderstand how climate chane cold impact role is to raise awareness o climate chane and enironmental insrance pricin and alation models sstainailit with oth memers and the plic

merican Consistent he merican cadem o ctaries spports nowlede and raises s memers o the merican cadem o cadem o awareness amon policmaers and the plic at lare o the ctaries ieco spports and is increasin its own ctaries increasin riss rom extreme weather eents t aims to ealate and nowlede o climate riss help manae exposre to these riss rom an insrance perspectie cominin crrent climate science nowlede with actarial experience

Chartered Consistent he mission o the C nstitte is sered eneratin ale or core s memers o the C nstitte ieco is inancial inestment manaement proessionals and enain with the core spportin and increasin its own nowlede o nalst (C inestment manaement indstr to adance ethics maret climate riss nstitte interit and proessional standards o practice which collectiel contrites ale to societ he C nstitte proides nowlede on climate chane riss pricin and manaement

pac (eal Consistent pac reconies the siniicant economic enironmental social As members of REALpac, as well as REALpac’s Propert oernance ( impact o Canadas commercial real estate sector nironment ocial and oernance Committee ssociation o and the need or an indstrdrien approach toward spportin ieco spports initiaties to increase awareness on Canada national and proincial strateies on reenhose as redction ener improements and increase oernment (climate chane action the importance o reasoned discorse with incenties towards ener eicient existin and political and polic oicials and the ale o persasie arments new commercial real estate or sstainale economic rowth he ssociation also reconies the need or indstrwide reen enchmarin data and shared est practices and is worin with its constitents and its national and international conterparts to help to responsil ensre the sector is well positioned or a sstainale tre

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 94 rade Is your Please explain the trade association’s position ow hae you influenced, or are you attempting to association position on influence their position climate change consistent with theirs

uilding Consistent A is the oice of the Canadian commercial real estate industry, hrough Lifeco’s Board membership with BOMA, wners and addressing issues of national concern, and promotes excellence in the company supports initiaties to increase anagers the industry through information, education, adocacy and awareness of energy and climate change issues, Association recognition, including on issues of carbon and energy efficiency. and incenties to increase building energy and A and its A Canada implements timely, responsible and consistent policy carbon efficiency inestments. regional positions on issues of critical importance to the Canadian chapters commercial real estate industry including climate changerelated legislation.

Canada reen Consistent The CaGBC’s mission is to “Lead and accelerate the transformation to hrough Lifeco’s membership with the CaGBC, the uilding highperforming, healthy green buildings, homes and communities company supports initiaties to increase the Council throughout Canada.” This includes the adoption of green building adoption of green building practices, participation CaC practices that ultimately lead to reduced greenhouse gas emissions. in green building certification systems, and he CaC is woring with federal, proincial and municipal leaders incenties to increase energy and carbon efficiency and goernment officials to support the deelopment and inestments. implementation of green building policies and sustainability practices across Canada and is woring with CaC members and staeholders to set and report against ambitious targets and action plans that will contribute to CP goals.

AIP Consistent AIP is an organiation for deelopers, owners, and inestors of hrough Lifeco’s membership on the NAIOP, the Commercial office, industrial, retail and mixeduse real estate. hey proide strong company supports initiaties to increase awareness Real Estate adocacy, education and business opportunities on a range of issues. of energy and climate change issues as part of a eelopment he organiation is committed to proiding its members with broader mandate for real estate operations. Association education and resources that encourage enironmentally responsible choices, as well as issuing policy statements that promote the utiliation of sustainable building practices. Energy efficiency is a legislative priority for NAIOP and the “NAIOP supports the adancement of higher leels of energy efficiency for commercial buildings through solutions that incorporate federal incenties, and realistic time frames for the financial recoupment of efficiency investments through utility savings.”

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 95 Trade Is your Please explain the trade association’s position ow have you influenced, or are you attempting to association position on influence their position climate change consistent with theirs

rban Land Consistent The rban Land Institute is the oldest and largest networ of cross Through Lifeco’s membership in ULI, the company Institute LI disciplinary real estate and land use experts in the world. The LI supports initiatives and research focused on provides leadership in the responsible use of land and in creating responsible and sustainable land use planning and and sustaining thriving communities worldwide. One of the ULI’s six development, including issues related to building commitments is to “Exploring issues: Of urbanization, conservation, resilience, energy conservation and climate change regeneration, land use, capital formation, and sustainable adaptationmitigation. development”. ULI also maintains a Centre for Sustainability and Economic Performance that is “dedicated to creating healthy, resilient, and highperformance communities around the world. Through the wor of its Green print and rban esilience programs, the Center provides leadership and support to land use professionals to invest in energy performance and portfolio resilience while reducing risks due to a changing climate.”

ustainability Consistent SASB’s mission is to connect businesses and investors on the Through its membership on the AB Investor Accounting financial impacts of sustainability. Their wor includes the Advisory Group, Lifeco is supporting disclosure of tandards development of an industryspecific taxonomy of financially material financially material sustainability issues, including Board AB sustainability issues. related to climate change.

Boston Consistent The BAII is a member led organiation of institutional investment Through its membership on the BAII, Lifeco chairs Association of advisors that represents the interests of investors and strives to the G woring group for the association. Institutional advance good practices and promote fair and efficient financial Investors BAII marets through open engagement with policy maers and others. The G woring group is focused on advancing nowledge and awareness for investors on environmental, social and governance factors.

esponsible Consistent The IA wrote a letter to the Minister of the nvironment and IGM has to date not been involved in influencing or Investment Climate Change in support of recommendations made by Canada’s attempting to influence their position. Association xpert Panel on ustainable inance. The Panel acnowledged IA of Canada’s strong, diversified and resourcerich economy, world Canada leading financial sector, and excellent capacity for innovation and made a pacage of practical, concrete recommendations focused on spurring the essential maret activities, behaviours and structures needed to bring sustainable finance into the mainstream.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 96 (C2.d) o you pulicly disclose a list of all research organizations that you fund

(C2.e) roide details of the other engagement actiities that you undertake.

Poer Corporation funds various organizations that produce public ork on climate change. he folloing provides examples of the research organizations e support:

 ature Conservancy of Canada CC: e have been supporting the CC since . he CC is a leading national land conservation organization that partners ith individuals, corporations, other nonprofit organizations and governments to protect the natural areas that sustain Canada’s plants and wildlife, including through their conservation research efforts.  Earth angers: e have provided funding for Earth Rangers from 2018 to 2020. Earth Rangers is a kids’ conservation organization hose free programs aim to instil environmental knoledge, positivity and the confidence to take action. Earth angers also orks ith a variety of national, regional and local conservation organizations to develop proects to protect endangered animals, ranging from conservation research, to land acuisition, to habitat steardship.  avid Suzuki oundation: e have provided funding for the oundation from to and reneed our commitment for . he avid Suzuki oundation orks ith government, business and individuals to conserve the environment by providing sciencebased education, advocacy and policy ork, and acting as a catalyst for social change. he support that e provide to these foundations is in line ith our strategy to contribute to community proects and initiatives that increase aareness and knoledge on climate change. e also invest in companies that share our philosophy and values, supporting a ide array of causes, including organizations promoting environmental steardship. Our subsidiaries support organizations that produce public ork on climate change and encourage their staff to get involved ith environmental causes the companies support.

he folloing provides examples of engagements by our subsidiary Lifeco:

International Institute for Sustainable evelopment IIS:

Method of engagement – Lifeco is engaged ith the IIS to promote research and knoledge of the risks associated ith climate change.

Topic of engagement – ocus on understanding the risk of climate change and ho e can anticipate the risk to increase community resilience.

Nature of engagement – Lifeco is the catalyst funder for Prairie Climate Centre – a oint venture beteen the IIS and the University of innipeg. he Centre provides research, advice and policy development.

Actions advocated – hrough its engagement ith the IIS, Lifeco is supporting coordinated research, advice and policy development on climate change. For example, in 2019, Lifeco supported the IISD’s establishment of the climate services centre – a significant progression of its initial support in establishing the Prairie Climate Centre at the University of innipeg. he ne climate service centre ill provide government, business and civil society decision maker’s access to the data, guidance, research, knowledge exchange, training and capacity building needed to reduce their vulnerability to climate variability and change and take advantage of emerging opportunities.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 97 he following provides examples of engagements by our subsidiary I

 Commuter Challenge Financial supports this program financially and through the I ealth anagement reen Committee who work to increase staff engagement. articipation demonstrates business support for sustainable commuting which in turn influences infrastructure, program and policy.

 Race to Reduce In 201, Financial oined the Leadership dvisory Council of anitoba Race to Reduce, engaging with leaders of the largest property owners and management companies in innipeg to design the program, whose mission is to reduce total energy use by 10 in participating buildings over four years. I ealth anagement participated in the program over 2019, engaging with local businesses and employees and using the metrics to influence building improvements.

 usiness Council for Sustainability I is a member of the Conference oard of Canada CS, a network of senior business leaders responsible for environmental management and sustainability who convene to learn and share best practices. any of the expert speakers at events have a focus on climaterelated topics.

 In 2019, I continued support for environmental programming at Fort hyte live, provided since 198. Fort hyte sits on 0 acres of protected urban green space and is known for its programs that connect people with nature and foster sustainability, including education about climate change. he centre sees more than 100,000 visitors a year. ne attraction is to visit the solar farm, built with the financial support of I ealth anagement.

(C2.f) What processes do you hae in place to ensure that all of your direct and indirect actiities that influence policy are consistent ith your oerall climate change strategy

The CSR Lead provides oversight on matters related to the Corporation’s corporate social responsibility initiatives. hrough this role, the CSR Lead ensures that direct and indirect activities that influence public policy are consistent with the Corporation’s overall responsible management strategy, including topics that relate to climate change.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 98 Communications

(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your C response f so please attach the publication(s).

ublication Status ttach the document ageSection Content Comment reference elements

n mainstream Complete ower Corporation nnual Report ages and overnance reports Strategy Riss and pportunities

n voluntary nderway – ower Corporation CSR ata Supplement ages mission communications revious year figures attached

n voluntary nderway – ower Corporation CSR ebsite – nergy hole Strategy communications revious year and Carbon fficiency document mission attached targets mission figures

n mainstream Complete Lifeco’s nnual Report ages and Riss and Lifeco’s nnual Report discloses reports pportunities information related to the company’s responsible investing approach as well as sustainability ris eposure including with respect to climate change

n mainstream Complete Canada Life’s ublic ccountability ages mission Lifeco’s 2019 Public reports Statement figures ccountability Statement relates mission to the preamalgamation targets Canadian operations of The Canada Life ssurance Company ther green The reatest Life ssurance building Company and London Life certifications nsurance Company and to Canada Life inancial Corporation and The Canada Life nsurance Company of Canada t also describes the corporate social responsibility activities of LC roup Ltd and L Realty dvisors nc

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 99 Publication tatus ttac te document Pageection Content Comment reference elements

n voluntary Complete Lifeco’s ESG Scorecard Page 1 mission e nvironmental ocial and communications figures overnance corecard ter metrics provides standardied disclosures for Lifeco’s operating companies in Canada and internationally ese include e Canada Life ssurance Company Canada Life including its Canadian and international subsidiaries reatest Life nnuity nsurance Company mpoer etirement and reat est inancial and Putnam LLC Putnam e data is prepared in alignment it te lobal eporting nitiative tandards

n voluntary Complete IGM’s 2020 CSR Report overnance overnance sustainability Pages 11 trategy report is iss anagement pportunities Pages 222 missions esponsible figures nvestment Pages mission targets nvironmental ootprint Pages ter metrics 0 nvironmental ata able Pages C eporting Pages

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 100 Idustr collaoratio

(C12.) re you a signatory of any climaterelated collaborative industry frameors initiatives andor commitments

pe of Idustr collaoratio Coet collaoratio

Reporti as orce o Cliaterelated iacial Lifeco as ell as IGM ad its operati copaies foralied teir support of te fraeors isclosures C C recoii te iportace of cliaterelated disclosures it respect to oerace strate ris ad etrics ad tarets

Idustr riciples for Resposile Iestet RI Lifeco’ asset management affiliates are signatories to the UNPRI, including Iris Life Iitiatie Iestet Maaers sice 200 uta Iestets sice 20 aora sset Cliate ctio 00 Management (since 2011) and GLC Asset Management (since 2016). IGM’s operating ter oisclosure Capai copaies are also siatories to te RI Lifeco’s asset management affiliates, Iris Life Iestet Maaers ad GLC sset Maaeet are part of te Cliate ctio 00 focused o eai te top 00 loal reeouse as eitters to disclose teir trasitio plas i aliet it te aris reeet Lifeco’s asset management affiliate Iris Life Iestet Maaers is part te oisclosure Capai – a roup of iestors o focus o copaies tat did ot proide sustaiailit ad cliaterelated disclosure represeti soe of te iest eitters o 20 of te larest ecaes across te orld

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 101 Carbon Disclosure Project 2020 C14 Portfolio impact C1 Portfolio Impact

Portfolio Impact

(C14.1) o you conduct analysis to understand ho your portfolio impacts the climate (cope portfolio impact)

Portfolio e conduct analsis on isclosure metric Comment our portfolios impact on the climate

Inesting es Category 15 “Investments” At Lifeco, an analsis of assets under management is (Asset manager) total asolute emissions undertaen to determine alignment ith a 2degree orld compared to a referenced indices or enchmar.

his tpe of analsis is undertaen Lifeco’s asset management affiliates, including GLC Asset Management, Irish Life Inestment Managers, and PanAgora Asset Management, ith regard to their sustainailit strateg. IGM also conducts analsis to understand ho the portfolio impacts the climate.

Inesting es Category 15 “Investments” Lifeco conducts analsis of its egregated und (Asset oner) Inestments Properties measuring the caron total asolute emissions footprint of the entire portfolio. he also conduct analsis of the Lifeco Insurance General Account, using the PACA model. As part of the analsis, the assess eposure to a 2degree orld.

Insurance underriting No. ut e plan to do so Category 15 “Investments” Lifeco ill e eploring opportunities in the net to (Insurance compan) in the net to ears ears to conduct an analsis of the insurance usiness total asolute emissions on climate.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 103 (C14.1a) hat are your organizations cope portfolio emissions (Category 1 nvestments total emissions)

ore o vaaton oe ortoo erentage mssons aaton metooogy ease ean oe stats ortoo overage aate sng emssons emssons ata otane metr rom tons entsnvestees Ce

Investments eevant 11 ore eo measres te aron ootrnt o te Lifeco’s nvestment aron aate tan Canaan egregate n rea estate ootrnt anayss s ase on te t ess nvestment ortoo ase on ng nvoes Canaan egregate n tan or roertes tat are manage y er seton 15 o te rotoo I s ea to eaty vsors ey otonay reortng nvestments manage on 1 otan rmary aron ootrnt ea o ents s a omany oeratng ata rom te rea estate tn te nana serves setor I as roertes etermne tat te otenta emssons assoate t nvestments e tn ent nvestment ns o reresent te maorty IGM’s recent integration of an o ts oe ootrnt er reorte nstryeang mate reate emssons reresent tose o ter Investors ea ata too tn nvestment roerty n a mta n avaae to reta management ao tem to ents to nvest n te Canaan ea roerty ean te overage o ter maret ortoo emssons s s te seon year tat tey are nng emssons rom te Investors ea roerty n In 1 tey reorte emssons rom mttenant ommera an resenta ngs or roertes ere tey o otan ata ata aot o ortoo sare ootage or 1 tey are reortng emssons or 1 o te n e to ret ngs to many o tese tenants ter o estmate emssons as nrease to o te ngs

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 104 (C14.2) re you able to provide a breadon of your organizations cope portfolio impact

coe reaon oent

es asset cass Lifeco cacates te eissions iact fro te coercia rea estate asset cass trog te antification of te anaian egregate n roerties ic are anage its ssiiar GL eat isors

(C14.2a) rea don your organizations cope portfolio impact by asset class.

sset cass Metric te Metric nit coe ortfoio ease eain eissions or aternatie etric

oercia rea ota caron Metric tons e The Scope 3 portfolio impact relates to Lifeco’s commercial real estate estate asote asset cass coering its office an tiresientia inestents in te eissions e anaian egregate n roerties for ic ata is aaiae ese eissions ere cacate coecting riar constion ata eg tiit inoices sc as eectricit an natra gas an aing reeant roincia state or nationa GG eissions factors GG eissions ere cacate accoring to “e Greenose Gas rotoco ororate cconting an eorting tanar eise ition”

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 105 ortfolio alimet

(C14.) re you taing actions to align your portfolio to a ell belo 2degree orld

ortfolio e are tai actios to ali lease eplai or portfolio to a ell elo eree orl

esti es Throh Lifeco’s asset management ssiiaries L sset aaemet rish Life estmet sset maaer aaers a aora estmets are assessi eit holis to a ell elo eree orl appli the T tool o portios of the portfolio ith rear to their respectie sstaiailit strateies rthermore L sset aaemet rish Life estmet aaers are also part of the limate ctio rop eali them to spport eaemet ith the top reehose as emitters loall o eelopi their climate trasitio plas i alimet ith the aris reemet t the hae tae a mer of steps to ali their portfolio ith a ellelo eree orl a all operati compaies committe to the T recommeatios hich are i lie ith a ellelo eree sceario a set p a T ori rop to actio implemetatio of the recommeatios aeie estmets partere ith a thirpart eaemet serice proier ho has ame climate chae its mer oe priorit The are actie spporters of limate ctio acti as lea or colea eaer for compaies – hiher tha a other spporter a the ol plaer to lea eaemet i each of the maor eoraphic reios estors who support Climate Action 100+ request boards and senior management of the world’s 100 largest emitti compaies to tae actio to rece reehose as emissios across the ale chai consistent with the Paris Agreement’s oal of limiti loal aerae temperatre icrease to ell elo erees elsis aoe preistrial leel aeie estmets is also i the process of iterati a istrleai climaterelate ata tool ithi iestmet maaemet to atif emissios perform scearios a proie portfolio echmari capailities rther aeie estmets are also moitori aacemets of The Sciece ase Tarets itiatie a eelopmet of a harmoie methoolo frameor a implemetatio ielies for fiacial istittios to set climate tarets for their iesti a lei portfolios i lie ith the aris reemet

esti es Throh its israce eeral ccot iestmets Lifeco is assessi their eit a corporate sset oer fie icome holis to a ell elo eree orl appli the T tool o portios of the portfolio. For example, through these assessments, Lifeco’s asset management affiliate GLC Asset aaemet is part of the limate ctio rop eali them to spport eaemet ith the top emitters loall o eelopi their climate trasitio plas i alimet ith the aris reemet

srace o t e pla to o so i Lifeco plas to eplore climate sciece tarets across its portfolio oce the Sciecease Taret erriti the et to ears itiatie releases iace for fiacial istittios Lifeco crretl oes ot assess hether cliets srace are alie to a ell elo eree sceario ie the lac of aailale iformatio er the et compa to ears the compa plas to or ith or cliets to etter ersta alimet ith a ell elo eree orl

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 106 (C14.a) o you assess if your clientsinvestees business strategies are aligned to a ell belo 2degree orld

Portfolio that e assess alignment Please explain clientsinestees belong to

nesting es, for some Through Lifeco’s asset management subsidiaries, Irish Life Investment Managers and GLC Asset Asset manager anagement, the compan is part of the Climate Action 100+ Group that is engaging the top 100 greenhouse gas emitters globall on deeloping their climate transition plans in alignment with the Paris Agreement. G ubsidiar acenie nestments thirdpart engagement serice proider is a supporter of the Transition Pathway Initiative (TPI), a global initiative that assesses companies’ preparedness for the transition to a low carbon economy. TPI evaluates how companies’ planned or expected future carbon performance compares to international targets and national pledges made as part of the Paris Agreement. he P enables assessment of how companies are managing climate change and the ris it poses to their business. Analsis of the materialit of climate ris is part of the process to determine which inestees will be engaged.

nesting o, but we plan to do so in Lifeco currentl does not assess whether clients and inestees are aligned to a well below degree Asset owner the next two ears world due to the fact that its current engagement processes are focused mainl on climaterelated disclosure gien the relatie maturit of the maret. er the next few ears, as carbon disclosure improes, we will be exploring opportunities to further assess alignment to a well below degree world.

(C14.b) o you encourage your clientsinvestees to set a sciencebased target

Portfolio that e encourage Please explain clientsinestees clientsinestees to set a belong to sciencebased target

nesting es, for some At G, its subsidiar, acenie nestments serice proider engages with inestee companies in Asset manager the portfolio to encourage companies to set sciencebased targets, as well as to conduct climateris stress tests, and mae enhanced disclosures. he engagements also focus on ensuring companies do not lobb policmaers or regulators to hinder the achieement of the Paris Agreement goals.

nesting o, but we plan to do so in er the next two ears, Lifeco plans to explore opportunities to include setting sciencebased targets Asset owner the next two ears as part of its engagement efforts.

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 107 Carbon Disclosure Project 2020 C15 Signoff C ignoff

ignoff

(C1.1) rovide details for the person that has signed off (approved) your C climate change response.

ob title Corresponding ob category

Chief xecutive fficer (C) Chief xecutive fficer (C)

TABLE OF CONTENTS CARBON DISCLOSURE PROJECT 2020 › POWER CORPORATION OF CANADA 109