Manulife Financial Corporation
Table of Contents
About This Report | 4 | Investing 12 | Climate | 20 | Community Investment | 42 | Corporate Governance | 76 |
About Manulife | 6 | Sustainable Investing in Asset | Nature and Biodiversity | 36 | Employees Giving Back | 46 | Risk Management | 77 |
Introduction 3
Sustainable
Environmental 19
Social 41
Governance 75
CEO's Message 7
Manulife Longevity Institute 9
Sustainability Governance 10
Materiality 11
Management 13
Sustainable Investing in Asset Ownership 15
Workplace Sustainability 39
Financial Inclusion 49
Inclusion 52
Inclusive and
Sustainable Sourcing 54
Talent Management 56
Talent Attraction and Retention 56
Learning and Development 59
Engagement and Recognition 62
Employee Health and Well-being 64
Occupational Health and Safety 66
Customer Experience 68
Customer Longevity 69
Human Rights 72
Responsible Artificial Intelligence 79 Ethics and Compliance Culture 82 Tax Transparency 83
Data Security and Privacy 84
Responsible Marketing and
Product Governance 87
Public Policy 88
2
Introduction
In this section
About This Report 4
About Manulife 6
CEO's Message 7
Manulife Longevity Institute 9
Sustainability Governance 10
Materiality 11
3
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
About
This Report
Additional information on Manulife's sustainability practices is available in the following publicly available reports:
2025 Annual Report
2026 Management Information Circular
2025 GRI Index
2025 SASB Index
For additional information, please refer to manulife.com/sustainability.
Scope
The Sustainability Report describes Manulife's approach, performance, and achievements in relation to our sustainability efforts. The information contained in this report was obtained through stakeholder consultation, internal management review, and a materiality assessment.
Frameworks
The structure and content of this report are informed by the IFRS Foundation's International Sustainability Standards Board (ISSB) standards, the Sustainability Accounting Standards Board (SASB) standards, Global Reporting Initiative (GRI), and the United Nations Sustainable Development Goals (SDGs).
Audience
We have tailored this report to meet the needs of our many stakeholder groups, with a focus on investors and analysts interested in our sustainability policies, programs, practices, and performance.
Boundaries
This report largely covers our activities during Manulife's 2025 fiscal year (FY). All facts and figures are as of December 31, 2025, unless stated otherwise. This report includes information from our global operations including Canada, Asia, Europe, and the United States, where we operate primarily as John Hancock. The information in this report is provided on a consolidated basis unless stated otherwise. All dollar amounts are in Canadian currency, unless stated otherwise. Manulife Financial Corporation and its subsidiaries, including The
Manufacturers Life Insurance Company, are referred to herein as "we," "our," "Manulife," and the "Company." Manulife, Manulife & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates, including Manulife Financial Corporation, under license.
External Assurance
Manulife engaged OmnexFuturepast to provide independent limited assurance covering greenhouse gas (GHG) emissions across Manulife Financial Corporation and Manulife Investment Management's real estate, timberland and agriculture activities, as well as select social indicators. The applicable limited assurance verification statements are provided below.
2025 Manulife Corporate GHG verification
2025 Manulife Investment Management real estate GHG verification
2025 Manulife Investment Management agriculture GHG verification
2025 Manulife Investment Management timberland GHG verification
Caution Regarding
Forward-looking Statements
This report contains forward-looking statements, which are made pursuant to the "safe harbor" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this report include statements with respect to our Climate Action Plan and its implementation, our journey to net zero, our impact Agenda and its advancement, exposure limit estimates for our property and casualty reinsurance business, and statements related to other sustainability-related strategies. Forward-looking statements can
generally be identified by the use of words such as "may," "will," "could," "should," "would," "likely," "suspect," "outlook," "expect," "intend," "estimate," "anticipate," "believe," "plan," "forecast," "objective," "seek," "aim," "continue," "goal," "restore," "embark" and "endeavour" (or
the negative of any thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.
The factors and assumptions which may impact the forward- looking statements in this report include limited availability of quality emissions and issuer data; variations in measurement methodologies; varying sector specific decarbonization efforts and our ability to implement decarbonization initiatives; shifting stakeholder and regulatory expectations; evolving economic conditions, technological advancements, and public policies; balancing sustainability commitments with an orderly transition across regions; and strategic, market, reputational, system and environmental risks.
4
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
In particular, we have relied on external methodologies to guide our emissions measurement and target setting approach for Manulife's scope 1 and 2 greenhouse gas emissions target and scope 3 financed emissions commitment. Our decarbonization approach described in this report relies on currently available climate science, and on assumptions and estimations based on publicly available information and internal data. We caution that there are inherent limitations and uncertainties with available climate data and scenarios, and with quantification methodologies, that may impact our underlying assumptions and estimations.
Within our General Account, interim targets support us in understanding how our investments can contribute to decarbonization of the real economy and provide guideposts against which to measure our progress towards our long-term commitments. However, our targets, and our progress towards achieving them, may need to be revisited if the assumptions underlying net zero scenarios and pathways prove incorrect, or if regulatory, economic, technological, and other external factors needed to enable such scenarios and pathways fail to evolve. Manulife's commitment to achieve net zero financed emissions within our General Account's investments by 2050 does not include investments of our third-party clients, which are managed by Manulife's Global Wealth and Asset Management business.
Our reporting on progress towards achieving our short-term and long-term targets relies on various external frameworks, methodologies, taxonomies, and other standards, which may
change over time, resulting in changes to, or restatements of, our reporting processes and results. The availability of quality and reliable data is a notable factor in our ability to set targets, make effective decisions against, and report on our progress towards, our targets and strategic areas of focus for us. While we rely on third-party data sources, Manulife has not independently verified any third-party data, or underlying assumptions of such data, and cannot guarantee the
quality of the data used. As a consequence of incomplete, inadequate, or unavailable data, our targets, and our progress towards achieving them, may need to be revisited. Additionally, our use of third-party data must not be taken as an endorsement of the third party or its data or be construed as granting any form of intellectual property.
Across all areas of our Impact Agenda and Climate Action Plan, we have assumed standard growth rates and changes to our business in the development of our targets and decarbonization approaches.
Any changes to our business including our own investment, financing, underwriting, and lending activities may have a material effect on our ability to achieve our targets and to decarbonize.
This report is provided solely for informational purposes, does not promote any business or business interest of Manulife, and does not constitute an offer or a solicitation to buy or sell any security, product or service in any jurisdiction. Additionally, this report is not intended to provide investment, financial, legal, accounting, tax or other advice, and such information should not be relied or acted upon for providing such advice. Nothing in this report shall form the basis of or be relied upon in connection with any contract, commitment or investment decision whatsoever. The recipient is solely liable for any use of the information contained in this report, and neither Manulife nor any of its affiliates nor any of their respective directors, officers, employees or agents shall be held responsible for any direct or indirect damages arising from the use of this report by the recipient.
This report is intended to provide information from a different perspective and in more detail than is required to be included in mandatory securities filings. While certain matters discussed in this report may be of interest and importance to our stakeholders, the use of the terms "material," "significant," "important" or similar words or phrases should not be read as necessarily rising to the level of materiality used for the purposes of securities or other laws and
regulations. References to "Environmental, Social, and Governance (ESG) and "net zero" or similar sustainability-related terms in this document are intended as references to the internally defined criteria of Manulife and not to any jurisdiction-specific regulatory definition that may exist. We have no obligation to update the information or data in this report.
The addresses or hyperlinks to third-party websites in this report are provided for the recipient's convenience and the content of such websites is not in any way included or incorporated by reference into
this report. Manulife takes no responsibility for such websites or their contents, or for any loss or damage that may arise from their use.
If you decide to access any of the third-party websites linked to this document, you do so at your own risk and subject to the terms and conditions of such websites.
Important information about risk factors that could cause actual results to differ materially from expectations and about material factors and assumptions applied in making our forward-looking statements may be found in our most recent Annual Report under "Risk Management and Risk Factors" and elsewhere in our filings with Canadian and U.S. securities regulators. The forward-looking statements in this report are, unless otherwise indicated, stated as of the date this report is issued and are presented for the purpose of
assisting stakeholders in understanding how we intend to achieve our decarbonization commitments set out in our Climate Action Plan and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements except as required by law.
5
5
Introduction Sustainable Investing Environmental Social Governance Data Appendices
About Manulife2025 Sustainability Report
With our global headquarters in Toronto, Canada, we provide financial advice, investments, and insurance for individuals, groups and businesses. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through our global wealth and asset management segment, Manulife Wealth and Asset Management, we serve individuals, institutions, and retirement plan members worldwide. Through our behavioural insurance offerings-Manulife Vitality, ManulifeMOVE, and John Hancock Vitality-we support our customers in living healthier, more active lives by rewarding them for making healthy lifestyle choices. We have a storied history dating back more than 160 years.
At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers. Throughout our history, we have offered products and services that seek to improve health outcomes and provide financial security for our customers and partners.
As the needs of our customers and communities evolve, along with environmental factors that influence our business, so do we. Our purpose and values will drive us to continue improving outcomes for our customers and the communities we serve.
Our Values
Our Values are the guideposts that will help us achieve our bold ambition. They define who we are and how we work together: we are a digital, customer-centric market leader that's leading the change customers demand.
Own it
We feel empowered to make decisions and take action to deliver our purpose.
Think big
Anything is possible. We can always find a better way.
Share your humanity
We build a supportive, inclusive and thriving workplace.
Get it done together
We're surrounded by an amazing team. Do it better by working together.
Obsess about customers
We predict their needs and do everything in our power to satisfy them.
Do the right thing
We act with integrity and do what we say.
Manulife is a leading international financial services provider, helping people make decisions easier and lives better.
Over 160 year history1
Over 37M customers globally
Top 10 life insurer by market capitalization
One of the world's leading natural capital investment managers in 20252
Manulife has had a presence in Asia, Canada and U.S. for more than 125 years, 135 years and 160 years, respectively.
IPE Real Assets Top 25 Natural Capital Managers 2026 -https://www.manulifeim.com/institutional/global/en/resources/documents/2026-ipe-real-assets-top-50-natural-capital-managers. Ranking is based on total natural capital assets under management (AUM), which include forestry/timberland and agriculture/farmland AUM. Firms were asked to provide AUM and the as of dates vary from as at 31 December 2024, to 31 December 2025.
6
Manulife Impact Agenda
Rooted in our mission and values, Manulife Impact Agenda reflects the needs of the people we serve and the communities in which we live and work by prioritizing health and well-being, supporting financial resilience, and contributing to a healthier planet, areas where we can create meaningful impact and where progress in one area can spark positive change in others.
For more information, visit Impact Agenda - Sustainability at Manulife.
Introduction Sustainable Investing Environmental Social Governance Data Appendices
CEO's Message2025 Sustainability Report
In 2025, Manulife took meaningful steps to help people live longer, healthier, and more financially secure lives - an effort central to our purpose for many years. This progress was made possible through new and expanded community investments, continued colleague initiatives, and focused actions that strengthened our ability to deliver on our Impact Agenda across the globe.
We also announced a refreshed enterprise strategy and an ambition to be the number one choice for customers. Central to our strategy is empowering health, wealth, and longevity for our customers, colleagues, and communities. Our talented and highly capable people, combined with the partnerships we have, will enable us to deliver on that ambition, and our achievements
throughout the year reflect both our momentum and the discipline with which we are delivering against our strategy. Our purpose to make decisions easier and lives better remains unchanged, guided by our values that define how we approach everything we do.
Our refreshed strategy recognizes the importance of our various stakeholders, including the communities in which we operate, and it underscores our continued commitment to delivering on our Impact Agenda, as well as the sustainability, inclusivity and colleague culture priorities we have set in recent years.
A Defining Year for Longevity
2025 marked a significant year for global dialogue surrounding longevity and demographic change. With ageing societies around the world, the need to support health and financial well-being across a longer life span has never been more important.
This is why we launched the Manulife Longevity Institute, a global platform backed by a $350 million commitment through 2030 to accelerate research, thought leadership, innovation, advocacy, and community investment aimed at improving lifelong health and financial resilience. Through the efforts of the Institute, we will
address the widening gap between life span and health span, a divide that leaves many people spending significant portions of their later years in poor health or without adequate financial resources. We're proud of this work - and I'm inspired by the optimism that underpins it. We believe that not only can we live longer, but we can live better, too.
Prioritizing Health and Well-being
Across our global footprint, Manulife is advancing offerings that give customers and communities the tools, insights, and personalized support they need to take control of their long-term health - from preventative care to holistic well-being. During the year, we:
Released findings from our 2025 Asia Care Survey, highlighting that people across Asia are increasingly prioritizing quality of life, financial independence, and aging with dignity as life expectancy rises.
Launched the inaugural Longevity Preparedness Index in collaboration with the MIT AgeLab, establishing new benchmarks for how US adults prepare for longer lives.
We're using these insights to inform how we support customers across eight dimensions of longevity preparedness.
Became the first life and health insurer in the world to support a national nature prescription program by partnering with
the BC Parks Foundation's PaRx initiative, helping expand access to evidence-based nature prescriptions and enabling more Canadians to benefit from free visits to parks and conservation areas.
Supported the Milken Institute's research on the future of health, including a Feeding Change policy brief on strengthening resilient food systems and a Future of Aging report on solutions to help current and future generations prepare to age well in their homes and communities.
Expanded investments in our behavioural insurance and health ecosystem - including Manulife Vitality, John
Hancock Vitality, and ManulifeMOVE - by rewarding customers for healthy behaviours, enabling access to advanced screening and diagnostic tools, and partnering with leading providers to support earlier detection, proactive health management, and better long-term outcomes.
7
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Supporting Financial Resilience
Financial resilience is a critical enabler of longevity, and we're proud to have made strides in supporting the long-term financial security of our customers and communities by expanding financial education, inclusive product offerings, and partnerships that promote economic opportunity. During the year, we:
Ran the Innovating for Asia's Demographic Future Challenge through
UpLink, the World Economic Forum's innovation platform, to identify and support early-stage solutions advancing financial resilience, healthy aging, and lifelong fulfilment across Asia.
From more than 85 global submissions, the top 10 innovators were announced and recognized at the Manulife Singapore Longevity Symposium for their potential to create scalable regional impact.
Announced a multi-year commitment to Ownership Works, supporting its efforts to expand employee share ownership programs that promote inclusive economic opportunity and strengthen financial wellness and literacy.
Contributing to a Healthier Planet
A healthier planet is essential to the resilience of the communities we serve, and we are proud to advance environmental initiatives that support long-term climate health to help create the conditions necessary to enable human health and longevity on a global scale. During the year, we:
Partnered with Mammoth, an employee engagement platform that enables colleagues globally to participate in sustainability challenges to reduce emissions and earn rewards redeemable through our Impact Hub or for tree planting initiatives.
Established our Manulife Impact Forest, a global network of forest restoration sites. In early 2026, we announced that the Impact Forests will incorporate veritree's Smart Forest
technology, making Manulife the first corporate partner to deploy this technology worldwide with more than 160 hectares of land already restored across sites in Canada, the U.S., Cambodia, Japan, and the Philippines.
During the year, we were also recognized in IPE Real Assets' annual natural capital rankings, maintaining our position as the world's largest timberland asset manager and ranking as the second largest natural capital investment manager. In addition, MSCI upgraded Manulife's ESG rating to AAA - the highest possible rating - reflecting our industry leading efforts to mitigate sustainability related risks and our ongoing commitment to strengthening our sustainability performance and disclosures.
None of this work would be possible without our incredible winning team, whose efforts make a positive impact in the lives of our customers and communities every day. In 2025, our more than 37,000 colleagues continued to demonstrate their deep commitment to community, contributing over 49,000 volunteer hours across 18 countries and, through our employee giving and corporate match benefit, directed
$8.8 million to charitable and non-profit organizations.
This work demonstrates what is possible when purpose, strategy, and culture progress together. As we enter our new chapter
with a clear ambition, strong momentum, and a deep sense of responsibility to the customers and communities we serve, our commitment to helping people live longer, healthier, and more financially secure lives has never been more central to our future.
I am energized by the work ahead and grateful for the collective effort that continues to drive our impact.
Sincerely,
Phil Witherington
President and CEO
8
Introduction Sustainable Investing Environmental Social Governance Data Appendices
Manulife Longevity Institute2025 Sustainability Report
Manulife is committing $350 million through 2030 to drive action on helping people live longer, healthier, and more financially secure lives.
In 2025, in support of our refreshed enterprise strategy and our ambition to be the number one choice for customers, we launched the Manulife Longevity Institute.
The Longevity Institute brings together research and thought leadership to better understand how people can flourish as they live longer; accelerates innovation and advocacy through initiatives that promote health, wellness, and financial readiness; and invests in community partnerships that advance knowledge, promote equity, and drive action around longevity.
"Empowering health, wealth, and longevity is central to Manulife's bold new ambition. It aligns with our values and our commitment to the communities we operate in. We are uniquely placed to help individuals and families navigate the growing gap between lifespan and healthspan."
- Phil Witherington, President & CEO
Driving Meaningful Outcomes
Health: We aim to make healthier behaviour choices easier and more accessible by supporting:
Physical and mental well-being
Healthy eating and behaviours
Preventive healthcare access
Wealth: We aim to support people on their journey toward life-long financial resilience by supporting:
Access to the resources needed to plan for the future and build long-term financial security
Financial education to gain skills and insights to enable better financial decision-making
A Global Commitment
As longevity reshapes how people live, work, and plan for their futures, the Longevity Institute will deepen collective understanding of people's evolving needs and aspirations in markets around the world.
In North America, Manulife has been leading multi-year benchmarking to deliver insights into financial security across different generations, helping employers understand the challenges employees face.
In Asia, Manulife leads multi-year studies across nine markets to explore how people define living better, with a growing focus on living more fully and meaningfully as they age.
9
Introduction Sustainable Investing Environmental Social Governance Data Appendices
Sustainability Governance2025 Sustainability Report
In alignment with our overall strategic objectives, we seek to manage our exposure to risks and capture opportunities associated with environmental, social, and governance (ESG) factors relevant to our business. Integration of these factors supports Manulife's long-term sustainability and resilience. Our ESG framework supports effective governance and oversight of these matters across our global market and business segments.
Oversight of our ESG framework is part of the mandate of our Board of Directors' (Board) Corporate Governance and Nominating Committee (CGNC). The CGNC meets quarterly to review the progress made on our sustainability strategy and remains informed of trends, risks,
and opportunities through regular management engagement and reporting. As of February 27, 2026, the CGNC includes the Chair of the Board and five other independent directors.
Experience in and an understanding of sustainability matters enhances the Board's ability to oversee Manulife's ESG framework. The Board's skills matrix includes environmental, climate, social, and governance considerations, highlighting directors who have demonstrated knowledge and understanding of relevant issues based on their respective experiences in their professional careers or roles as corporate directors. Members of the CGNC typically participate in at least one externally facilitated education session or course on sustainability matters every two years. The sessions may be external courses or externally facilitated sessions tailored to cover issues relevant to Manulife and are open to all directors.
In 2025, the Board engaged an external facilitator on the topic of a changing climate and measurable impacts on extreme weather and natural catastrophe trends and outlooks.
The CGNC's oversight of our ESG framework complements the work of the Executive Sustainability Council (ESC). The ESC consists of senior executives, including the Chief Executive Officer (CEO), the Global Chief Sustainability Officer (CSO) and other functional and business leaders. The ESC typically meets monthly, with additional engagement occurring between meetings as needed, and is responsible for guiding and approving Manulife's sustainability plan, including targets and performance indicators, and providing leadership on the integration of
the plan into the management and operations of the business worldwide. The ESC ensures that frameworks, practices, and capabilities are in place to anticipate, identify, and address material environmental and social risks and opportunities. In addition to the ESC, we have established committees to support business segment sustainability objectives.
The CSO chairs Manulife's Sustainability Centre of Expertise (CoE), which consists of corporate function and business unit leads tasked with integrating sustainability considerations into business unit strategies, policies, and practices. This group's responsibilities include leading the development and implementation of the sustainability strategy. The CoE shares information, builds knowledge across functions and business units, advises on sustainability matters, and provides support and capacity-building to business units.
Executive Compensation Practices
Our executive compensation program rewards named executives for carrying out our business strategy and strategic priorities, including sustainability-related considerations that support our strategic priorities, and for contributing to our culture. Individual performance goals for named executives include goals linked to climate action, employee engagement, fostering an inclusive culture and leadership accountability, as well as risk goals related to cybersecurity and ethical business conduct.
Additional information on our approach to executive compensation is available in our 2026 Management Information Circular.
Composed of sustainability professionals across the business
Provides a forum for information sharing and consultation on sustainability-related initiatives, performance, and reporting
Sustainability Centre of Expertise
Board of Directors | |||||
Corporate Governance & Nominating Committee | Board Risk Committee | Management Resources & Compensation Committee | Audit Committee | ||
Executive Sustainability Council
Working groups composed of representatives from multiple businesses and functional areas that support work associated with Manulife's Climate Action Plan
These groups drive the development of our climate-related strategic initiatives, risk management activities addressing climate considerations relevant to our business, performance tracking, and disclosures
Climate Change Working Groups
10
Committees and working groups convene to enable regular decision-making oversight | ||||
General Account Sustainable Investments Committee | Manulife Investment Management Public Markets Sustainability Committee | Manulife Investment Management Private Markets Sustainability Committee | ||
10
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Materiality3Our materiality matrix reflects the perceived significance of sustainability-related topics to Manulife as determined by input from stakeholders including Manulife leadership, employees, community partners, suppliers,
and investors. In 2025, we refreshed our global sustainability materiality assessment, informed by a double materiality lens and aligned with leading international standards.
As our strategic direction evolves, we intend to strengthen how we identify and prioritize sustainability-related topics, taking into account emerging regulations and quantified financial impacts. We anticipate continued updates to our materiality assessment approach to align with reporting standards and obligations
to help ensure our strategy remains current, responsive, and closely integrated with our business objectives.
For additional information, please
Our Materiality Assessment Process
Higher Impact
Greatest Impact Topics Topics where the potential impact on, or arising from, Manulife is considered greatest | ||
Business-Critical Topics Topics that are essential to the delivery of our strategy and the resilience of our business |
Climate change & GHG emissions Sustainable finance | |
Emerging and Important Topics Topics that are becoming increasingly |
Nature & biodiversity
Responsible contracting | Financial resilience & preparedness Customer experience |
relevant to our business and stakeholders and require proactive engagement Natural resource use Responsible product | Talent attraction & retention Community partnerships Human rights |
Employee well-being
Data security & privacy Business conduct & ethics |
design & marketing |
Responsible | |
technology innovation | ||
& deployment | ||
|
Physical impacts of | ||
climate change | ||
|
Customer well-being | ||
Research
Potential impact of Manulife on issue
The identification of our material topics builds on insights from previous assessments, alignment with SASB standards, and analysis of peer practices. As part of our 2025 review, the 19 topics identified in the 2024 assessment were reassessed and reaffirmed as ongoing priorities. Reflecting its increasing importance to our business and stakeholders, we added Responsible technology innovation and deployment as a new material topic in 2025.
Stakeholder engagement and data collection
We assessed the prioritized topics through a comprehensive online stakeholder survey that captured a broad range of internal and external viewpoints.
We received input from over 420 stakeholders4 across 15 markets, including North America, Europe, Asia, Australia and New Zealand.
Analysis and prioritization
We consolidated and evaluated the feedback using a double materiality approach, prioritizing topics according to perceived impacts, related risks, and potential business opportunities. The analysis confirmed that the identified topics remain pertinent to our operations and continue to represent key areas of importance for our stakeholders.
Validation and approval
Lower Impact
Senior leadership reviewed the assessment findings and determined that they were consistent with our strategic priorities and long-term enterprise wide-objectives.
Environment Social Governance New Topic in 2025
visit Materiality.
Lower Impact
Potential impact of issue on Manulife
Higher Impact
This report is intended to provide information from a different perspective and in more detail than is required to be included in mandatory securities filings, and the use of the terms "material," "significant," "important" or similar words or phrases should not be read as necessarily rising to the level of materiality used for the purposes of securities or other laws and regulations. See "Caution Regarding Forward-looking Statements" above.
Our key stakeholder groups are the following: employees, consumers/customers, shareholders/investors, industry associations, civil society/NGOs, suppliers/vendors, and community leaders.
11
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Sustainable Investing
In this section
Sustainable Investing in Asset Management 13
Sustainable Investing in Asset Ownership 15
12
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Sustainable Investing in Asset Management5,6
Our Role as an Investment Manager
As an investment manager, Manulife Investment Management aims to deliver strong risk-adjusted investment returns for our clients over time, operating within a flexible framework defined by each client's portfolio mandates and investment objectives, in line with our fiduciary duty to clients.
Naturally, our success is judged by how well we meet our clients' needs and objectives, including how effectively we identify and manage investment risks and opportunities. Accordingly, we seek to address material risks and opportunities that we believe may arise from systemic global challenges such as climate change, nature loss, and inequality.
As part of that effort, we integrate what we consider to be financially material sustainability-related factors into our investment processes and strategies across asset classes and geographies. Our work focuses on material issues related to climate, nature, and people where they intersect with long-term financial performance and risk, and we align our sustainability-related offerings and processes, where appropriate, across the assets we manage.
Climate: We believe that unmitigated climate-related risks may pose imminent or chronic material risks to investments. These risks present a systemic challenge to financial, environmental, and societal stability-and therefore to our businesses, assets, and clients' financial objectives-over time. Our climate change statement outlines our belief that asset managers should assess material physical and transition risks, as well as opportunities presented by climate change, to the companies and assets in which they invest.
Nature: We believe prudent investment decision-making must consider material risks and opportunities that arise from an investment's relationship to nature. Valuing nature and the wealth of natural systems can play an important role in how we approach
investing. We aim to proactively assess and, where relevant, manage nature-related risks and opportunities across our investments.
Effective management of natural resources and environmental impacts can offer investors a more resilient long-term risk/reward profile as nature-related risks and opportunities begin to physically and financially affect businesses and assets.
People: Our strategy incorporates human rights due diligence as the foundation for identifying and managing people-related risks and opportunities across our investments. By focusing on salient human rights risks and avoiding harm, we aim to support long-term value creation and reduce exposure to legal, financial, and reputational risks. Isolated human rights violations can
create risks with potential economic and market impacts, and our strategy seeks to address concerns associated with inequality and support long-term economic resilience.
Materiality Assessment
These core themes inform our identification of material topics and communication of sustainability-related issues that may be financially material to our clients' investments and to our ability to operate on their behalf. As an asset manager, our goal is to identify and mitigate risks where possible, adapt to those that cannot be fully mitigated, and pursue opportunities that support long-term value.
Our Approach to Integration
Our investment teams are empowered to make decisions in line with their respective investment philosophies and client objectives.
Each investment team is responsible for its own investment process, from research through implementation. The inclusion of material sustainability-related factors in investment processes aligns with this approach, ensuring that our analysis is relevant and meaningful to each team's investment process.7
Meeting Our Clients' Needs
We take a highly consultative approach to meeting our clients' sustainability-related needs and objectives. We seek to support their portfolio goals and expectations by leveraging our sustainability and investment expertise across a broad range of geographies globally and asset classes, as well as by offering a variety of multi-asset class solutions. We continuously work to enhance our product offerings and the quality of our reporting in line with applicable industry standards, best practices, and client demand.
The activities, policies, and processes of Manulife Investment Management described in this Sustainability Report are descriptive of practices of certain of our internal investment teams in our Private Markets and Public Markets capabilities, some of whom manage assets on behalf of the Manulife General Account. This Report does not cover activities of non-affiliated asset-managers who manage some client assets on our behalf, or the activities of CQS, which is a wholly owned multi-sector alternative credit manager acquired by Manulife IM in 2024, or Comvest Credit Partners, which is a privately held direct lending private credit manager acquired by Manulife IM in 2025.
In this section, 'we' refers to Manulife Investment Management.
When aligned to clients' stated investment objectives and purposes, we seek to incorporate material sustainability considerations throughout the stages of our investment and asset ownership lifecycles, taking into account the characteristics of the asset class and investment process in question, as well as industry and geography, among other factors. Each investment team operates in different markets and with different nuances to its approach to investing. Accordingly, each team integrates sustainability factors into its investment process in a manner that best aligns with its investment approach. Exceptions to this are strategies where a sustainability-integrated investment approach is impractical or impossible, for example in relation to certain instrument types where sustainable comparable alternatives are unavailable, passive products, funds that invest in derivative instruments, products managed in accordance with specific client objectives, and delegation to third-party investment managers. Refer to Manulife Investment Management's Sustainable Investing and Sustainability Risk Statement for more details.
13
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Manulife Investment Management Capabilities
Infrastructure
Listed equity
Fixed income
Multi-asset solutions
Private equity
Private credit
Real estate
Timberland
Agriculture
The Spectrum of Our Sustainable Investing Offerings8
ESG Integration
Consideration and analysis of financially material sustainability risks and factors as part of investment decision-making
Negative screening9
Industry sectors or companies excluded/divested from to avoid risk or to better align with client values
Positive screening9
Investments that target companies or industries with better sustainability performance
Thematic investments
Investments that specifically target sustainability themes (e.g., clean energy, green property, climate mitigation)
Impact investments
Investments that intentionally and additionally seek to generate positive, measurable social, and/or environmental impact as a core component of their investment thesis alongside a financial return, which emphasizes the optimization of social and/or environmental benefits and may result in a financial trade-off
Governance Structure
The Board's oversight of sustainability-related matters extends to Manulife Investment Management, where we focus on a committee structure that supports our investment teams' sustainability-related activities and stewardship practices. This structure brings
together leaders from all asset classes and representatives from key functional areas, such as operations, sustainability, legal, compliance, and risk, whose contributions are crucial to supporting our sustainable investing activities and helping to ensure effective implementation. This range of expertise supports the pursuit of our clients' investment goals.
Sustainability Policies, Statements, and Frameworks
Our policies, statements, and frameworks-available on the sustainability section of our website-and governance practices guide our sustainable investment activities. Our fiduciary duty to our clients is the governing principle for these documents, which direct action across our investment activities, from integration to investment stewardship. These documents generally consider that practices and expectations may differ across markets, asset classes, and sectors, among other factors.
For more information, please visit
manulifeim.com/institutional
For illustrative purposes only. A sustainability risk is any sustainability-related event that, if it occurs, could or will have a material negative impact on the value of investments we make for our clients. Sustainability factors encompass governance, climate, nature, and people-related matters that are central to measuring the sustainability of investments.
Applicable to Public Markets strategies.
14
14
Introduction Sustainable Investing Environmental Social Governance Data Appendices
Sustainable Investing in Asset Ownership2025 Sustainability Report
Managing Our Own Portfolio of Investments
Manulife's General Account consists of our company's own assets, which largely support our policyholder liabilities in Canada, the U.S., and Asia. We invest capital in public and private markets across developed and growing economies to achieve our returns to support our business operations, meet our financial objectives, and fulfill our obligations to our insurance customers. In doing so, our investments contribute to economic activity, including supporting jobs and infrastructure in the regions where we invest. We believe that to deliver strong risk-adjusted returns, we must consider ESG-related risks and opportunities in our investment processes.
The General Account Sustainable Investments Committee, which oversees our evolving strategy, meets on a quarterly basis.
Representatives include the Chief Investment Officer, Global Chief Sustainability Officer, and key leaders across the General Account in Compliance, Credit Risk, Portfolio Management, and Finance.
Additional councils and working groups provide input into our sustainability strategy, support the implementation of ESG-related initiatives, and communicate on relevant ESG matters across functions. An Asia General Account ESG Council includes participation across General Account teams and Asian life insurance entities and meets on a monthly basis to advance ESG-related initiatives in Asian investment portfolios. Our Climate Change Working Group, which meets on a monthly basis, includes the participation of our General Account sector analysts, and supports ongoing engagement across the business segment on ESG-related matters.
Integrating ESG Factors into Investment Decisions
Manulife's General Account maintains its own ESG governance and has developed ESG Investment Guidelines for its investment mandates, which include requirements to:
Consider and evaluate ESG-related risks and opportunities material to specific investments and assess their relevance
Monitor material ESG issues at the issuer level as part of ongoing investment surveillance
Discuss material ESG risks in investment reviews and approval materials
These guidelines are complemented by several additional policies that contribute to the General Account's overall risk management and governance structure with respect to its investment activities, such as Manulife's Environmental Risk Policy, Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Policy, Code of Business Conduct and Ethics, Global Reputation Risk Policy, and the General Account Thermal Coal Statement.
To support ongoing ESG integration, the General Account uses a qualitative ESG scoring approach to assess issuers' ESG-related risks and facilitate discussions throughout the investment cycle.
This approach allows investment analysts to identify factors that could influence decisions about asset allocation amounts, investment limitations, and potential tenor restrictions. This is a process under continuous improvement.
This approach supports continued monitoring and evaluation of emerging investment risks and opportunities, in line with efforts to achieve strong risk-adjusted returns for the business in light of the ongoing transition to lower carbon economies.
Green Bond Issuance
We were the first global life insurer to issue a green bond in 2017 with an inaugural issuance in Singapore, and have since issued green bonds in Canada (2018) and the U.S. (2022). We currently have one green bond outstanding, totaling US$0.75 billion. Sample investments include solar and wind energy in the U.S. and Canada, as well as sustainably managed forests. Manulife's Sustainable Bond Framework has been developed in alignment with the International Capital Market Association (ICMA) principles. For more information, refer to our Green Bond Reports.
Advancing Sustainable Investments in Emerging Markets
In 2025, we continued to participate in sustainable finance activities in emerging markets, underscoring Manulife's commitment to sustainable financing, with the goal of achieving strong risk-adjusted returns, while simultaneously contributing to long-term economic growth, climate-related resilience, and broader environmental, and social development.
The General Account was an anchor investor in Cambodia's first green infrastructure project bond. The transaction supports a 60MW solar photovoltaic plant with battery energy storage in Cambodia. The project aligns with the country's energy affordability plan and aims to significantly increase renewable energy capacity. The investment reflects Manulife's focus on climate resilience and sustainable economic growth.
15
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Building on Leading Practices
In 2025, we made the following enhancements to our global approach:
Engaged with North American industry peers to promote knowledge sharing, including conducting a fifth annual peer survey on ESG risk management practices
Enhanced process and data controls for climate-related reporting to support compliance with global regulations, including the Office of the Superintendent of Financial Institutions (OSFI) Guideline
B-15, and improvements to Sovereign Bond and Mortgage portfolio financed emissions calculations
Evaluated and initiated the development of AI-enablement tools for ESG integration by analysts
Monitored transition risks across the portfolio, including dedicated engagement with relevant sector investment teams and the General Account Sustainable Investments Committee on evolving energy transition scenarios
Initiated procurement of a technology-enabled platform for physical climate-related risk assessment
Trained Asia life insurance leaders on global and regional sustainability trends, helping expand sustainability-related capacity in North America and Asia
Conducted inaugural climate engagement activities with high-impact portfolio issuers, in alignment with the General Account Climate Engagement Plan
Evolving Our Engagement Approach
The General Account engages with issuers as a matter of regular investment monitoring and due diligence, and ESG may be incorporated into these interactions where it is potentially material to investment risk. As a primarily fixed-income, buy-and-hold investor, our engagement with management teams and opportunities may differ from those of public equity holders with direct ownership stakes.
In some cases, Manulife may act as a passive investor, using indexing strategies to optimize risk-adjusted returns. Consequently, our ability to influence investment decisions may be limited in such cases, and we typically abstain from taking specific proxy positions.
In 2024, the General Account developed a specific climate engagement strategy targeting high-impact portfolio companies. The strategy prioritizes issuers with the highest contribution to Manulife's financed emissions, focused on those issuers lagging peers on disclosure, targets, and performance. Over a three-year period, issuers will be evaluated against key milestones, with an escalation process in place for those who fail to progress by the end of the engagement period. This strategy is aligned with Manulife's emissions reduction targets and is in support of the management of long-term climate-related risk.
In 2025, in coordination with investment analysts and General Account ESG team members, Manulife facilitated a two-way dialogue with five high impact issuers on climate-related matters. Manulife highlighted key metrics utilized for monitoring portfolio risk exposure and performance and sought to understand barriers to issuer decarbonization ambitions and plans. As utilities providers, energy affordability, growing energy demands from AI and electrification, and management of grid stability were key themes emerging from engagement discussions. Efforts are underway to expand engagement to additional high impact portfolio issuers and the General Account will continue to monitor performance against stated commitments on an ongoing basis.
Please see Manulife's Climate Action Plan Implementation Report for more details on our General Account's climate engagement strategy.
16
16
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
C$50.4 billion in General Account Sustainable Investments10
Green buildings
$21.9 B
Green Investments: $46.9 billion
$21.9 B, Green buildings
Direct equity investments and commercial mortgages, backed by green building certifications' Leadership in Energy and Environmental Design (LEED), Buildings Owners and Managers Association (BOMA Best), Energy Star, or equivalent. Residential mortgages are excluded at this time, with activities held within Manulife Bank.
$10.2 B, Renewable energy
Social Investments: $3.5 billion
$3.0 B, Access to affordable healthcare
Free or substantially subsidized, and/or non-profit facilities that provide accessible and affordable health care regardless of ability to pay to underserved populations, such as minorities, vulnerable youth, people living below the poverty line, or households with income below 80% of the area median income (AMI). Investments correspond to (i) General Account private investments related to the construction of health care facilities in Canada, U.S., and the U.K and (ii) General Account private investments in
Renewable energy
Sustainably managed timberland
Clean transportation
Energy efficiency
Sustainably managed agriculture
Sustainable water management
Access to affordable
healthcare
Access to affordable housing
Access to affordable education
$4.6 B
$4.6 B
$2.6 B
$2.0 B
$0.9 B
$3.0 B
$0.3 B
$0.2 B
$10.2 B
11% of General Account Portfolio held in Sustainable Investments.
Private debt and equity financing of energy from renewable sources, including investments in solar power generation and transmission, wind power generation and transmission, hydroelectric generation,
geothermal, biofuel collection, biomass waste to energy, battery storage for solar and wind power transmission.
$4.6 B, Sustainably managed timberland
Private assets operated by Manulife subsidiary Manulife Investment Management timberland and agriculture and private placements certified to Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) standards.
$4.6 B, Clean transportation
Private debt and equity financing of electrified transport and mass public transit.
$2.6 B, Energy efficiency
Private debt and equity financing of energy efficiency upgrades at
U.S. government sites.
$2.0 B, Sustainably managed agriculture
Private assets operated by Manulife subsidiary Manulife Investment Management timberland and agriculture and certified to the Leading Harvest Standard.
$0.9 B, Sustainable water management
Private debt and equity financing of water recycling and purification businesses.
non-profit Canadian hospitals and non-profit long-term-care facilities.
$0.3 B, Access to affordable housing
Housing at or below 80 percent of average market rent or that meet national/regional affordable housing definitions. Investments correspond to General Account private equity investments in affordable multi-family real estate within the U.S. in accordance with local/regional standards (pro-rate amount taken for affordable portion).
$0.2 B, Access to affordable education
Free or substantially subsidized, and/or non-profit institutions that provide accessible and affordable education regardless of ability to pay to underserved populations, such as minorities, vulnerable youth, people living below the poverty line, or households with income below 80% of the area median income (AMI). Investments correspond to General Account private investments in non-profit school boards (K12 Education) in Canada and the U.S.
Data as of 31 December, 2025.
17
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Total Labelled Bonds Investments11: $C12.8 billion
Manulife participates in the labelled bonds market as both an issuer and an investor. Labelled bonds are debt instruments in which the funds raised are tied to financing projects with defined social and
environmental benefits. Unlike traditional bonds, labelled bonds are allocated exclusively to eligible projects under established frameworks. Issuers are typically required to report on the allocation of proceeds and
the impacts achieved, guided by standards such as those published by the International Capital Market Association (ICMA). As a primarily fixed-income investor, these instruments provide diversification while offering attractive risk-adjusted return opportunities aligned with the General Account's mandate.
$8.94 B, Green Bonds
Proceeds allocated by the issuer to projects in renewable energy, energy efficiency, green buildings, clean transportation, sustainable water and wastewater management, environmentally sustainable management of living natural resources and land use, pollution prevention, biodiversity conservation, circular economy activities, and climate-resilient infrastructure.
$1.86 B, Sustainable Bonds
Proceeds allocated by the issuer to projects that deliver combined environmental and social benefits.
$0.99 B, Sustainable-linked Bonds
Terms of these instruments vary based on an issuer's performance against predefined KPIs and time-bound sustainability performance targets. Proceeds may be used for general corporate purposes, and KPI
Green Bonds
Sustainable Bonds
Sustainable-linked
Bonds
Social Bonds
Blue Bonds
Transition Bonds
$1.86 B
$0.99 B
$0.91 B
$0.05 B
$0.05 B
$8.94 B
performance determines any pricing changes over the life of the bond.
$0.91 B, Social Bonds
Proceeds allocated by the issuer to activities intended to generate positive social outcomes, including improved access to essential services, affordable housing, socioeconomic advancement, and community development for underserved or vulnerable populations.
$0.05 B, Blue Bonds
Proceeds allocated by the issuer to activities related to the sustainable use, protection, and restoration of ocean and freshwater resources, including marine conservation, sustainable fisheries, clean coastal infrastructure, and pollution-reduction efforts.
$0.05 B, Transition Bonds
Proceeds allocated by the issuer to activities intended to facilitate the transition to a low-carbon economy, including operational changes, early retirement of emissions-intensive assets, investments in lower-carbon technologies, and research and development that contribute to measurable reductions in greenhouse-gas emissions.
Labelled bond exposures are identified using a third-party data provider and are subject to internal validation. Only investments that are ICMA-aligned and third-party verified are reported. Data constraints remain prevalent in the labelled-bond market, including limited information on third-party verification and impact measurement for certain investments. These limitations reflect broader disclosure challenges across the market and may affect data reliability, and year-over-year comparability of the data. We continue to evaluate the availability and quality of data in this area to support enhanced transparency and credibility of our disclosures.
18
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
Environmental In this sectionClimate 20
Nature and Biodiversity 36
Workplace Sustainability 39
19
Introduction Sustainable Investing Environmental Social Governance Data Appendices
2025 Sustainability Report
ClimateManulife recognizes the risks posed by climate change to our business, public health, and the livelihoods of the communities in which we operate, and the urgent need to address the impact of these risks on the natural environment.
This includes how we manage our operations, how we make investment decisions, and how we develop and offer financial products and services, always with a view to Manulife's, our clients' and investors' best interests.
20
Attachments
- Original document
- Permalink
Disclaimer
Manulife Financial Corporation published this content on May 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2026 at 11:29 UTC.
