Manulife Financial : Y2023 Annual Green Bond Report, May 2024

3.00% SG$500 million (Singapore dollars) subordinated debt due 21 November 2029, callable 21 November 2024 (the "Green Bond")

Annual Green Bond Report

Introduction

In 2017, Manulife became the first global life insurer to issue a green bond1 with an inaugural issuance in Singapore of SG$500 million. Since then, we have issued green bonds in Canada (2018) of C$600 million and in the U.S. (2022) of US$750 million. The C$600 million green bond issued in 2018 was redeemed in 2023.

At Manulife, we recognize the threats posed by climate change to our business, public health and the livelihoods of the communities in which we operate. As a global financial services company, we are taking steps to reduce our environmental footprint, support the transition to a lower carbon economy, and invest in climate change mitigation and resilience. In May 2021, Manulife released its Climate Action Plan and our journey to net zero. Given our long standing investments in timberland and agriculture, as an organization, we remove more carbon from the atmosphere than we emit in our

operations. The Climate Action Plan2 includes our commitment to achieve net zero financed emissions by 2050, and our commitment to reduce our absolute scope 1 and 2 emissions by 40% by 2035. As part of this commitment, we have developed a combination of sector- specific and asset-class specific targets for the financed emissions of our General Account.

This report summarizes Manulife's Green Bond Framework (the "Framework") published in 2017, which governs the Green Bond, allocation of green bond proceeds to eligible assets, the associated environmental impacts, and project examples. Consistent with the Framework, we are committed to publishing annually to outline any changes to the proceeds allocation.

the net proceeds will be allocated.

1. Management of proceeds: A Green Bond Register
   (the "Register") is established to record the allocation of the net proceeds, including relevant information of the eligible assets, and form the basis for the impact reporting.
2. Reporting: Commitment to publish an annual report highlighting the amount of proceeds allocated to each Eligibility Criteria, environmental indicators, and the remaining balance of unallocated proceeds, among other disclosures.

Eligible Categories

Green Bond Principles Categories

Renewable energy

Green buildings

Environmentally sustainable management of natural resources and land use

Energy efficiency

Clean transportation

Sustainable water

Pollution prevention and control

Green Bond

Manulife's Green Bond Framework

Manulife's Green Bond Framework (the "Framework") is a component of Manulife's sustainability objectives and is governed by the Manulife Green Bond Council. The Framework was published in November 2017 and was developed in line with the International Capital Market Association's Green Bond Principles 2017. The Framework sets out the following guidelines for issuances of green bonds:

1. Use of proceeds: Net proceeds from the green bonds are allocated towards assets that meet the Eligibility Criteria described in the Framework.
2. Process for project evaluation and selection: Manulife Green Bond Council is responsible for the ultimate review and selection of assets that will qualify as eligible assets, to which

1 Manulife's green bond is a fixed incomeinstrument withan amount equal to the net proceeds allocated to new and/or existing Eligible Assets defined in Manulife's Green Bond Framework, for example, renewable energy, energy efficiency, sustainably managed forests and other investments that advance ecosystem improvements.

2https://www.manulife.com/content/dam/corporate/global/en/documents/pas/MFC_CAP_EN.pdf

External Review

Sustainalytics, an independent provider of analytical environmental, social and governance (ESG) research, ratings and data to institutional investors and companies, issued a second-party opinion on the alignment of the Framework with the Green Bond Principles 2017. Sustainalytics has provided limited assurance on the management of the proceeds and compatibility of the selected Eligible Categories in accordance with the Framework.

The second-party opinion on the Framework and the annual report review by Sustainalytics can be found on Manulife's website at

www.manulife.com/en/investors/results-and-reports.

Use of Proceeds and Impact Indicators

Eligible Categories

Original

allocation of

proceeds

(SG$ millions)

Original

allocation of

proceeds

(%)

Impact indicators

Manulife's share of impact indicators1

Renewable Energy:	219	44	Renewable energy generated capacity (MWh)	371,087
Wind	Avoided/reduced carbon emissions (MtC02e)	44,702
Renewable Energy:	278	56	Renewable energy capacity installed (MWh)	69,094
Solar	Avoided/reduced carbon emissions (MtC02e)	11,515
Total	$ 4972	100%

1 Eligible assets were over-allocated to allow for amortization of debt investments over the course of the green bond term. Reported impact indicators are scaled to the net proceeds from the green bond issuance of SG$497 million.

2 Represents net proceeds from the green bond issuance of SG$500 million.

Examples of Projects

Renewable Energy: Rivière-du-Moulin

Manulife provided financing to the Rivière-du-Moulin wind energy facility, located in Quebec, Canada. The 350 MW wind farm is estimated to power 59,500 homes. The project is the largest wind energy facility in Canada under a single Power Purchase Agreement, a 20-year agreement with Hydro Quebec since construction in 2014.

Renewable Energy: Grand Renewable

Grand Renewable solar project is located in Ontario, Canada. The project has a capacity of 100 MW and, since 2015, has had a 20- year feed-in-tariff contract with Independent Electricity System Operator. The 800-acre farm incorporates approximately 450,000 solar panels, powering 17,000 homes.

Methodology

Renewable Energy: Renewable energy capacities installed were provided by the project developer or estimated based on a third- party service provider. Avoided emissions were calculated by multiplying the annual renewable energy project's production by the region and energy specific carbon dioxide emission avoidance factors as published by the International Renewable Energy Agency. To calculate the impact measures associated with the Green Bond, our share of investment was applied to each project's enterprise value.