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.

For additional governance information at Manulife, please see our Corporate Governance.

Executive Compensation

Our executive compensation program rewards named executives for executing 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 those linked to employee engagement, leadership accountability, and climate action, as well as risk goals related to ethical business conduct.

Additional information on our approach to executive compensation is available in our 2026 Management Information Circular.

Manulife is a Member of Several Global Sustainability Networks

We collaborate with a number of sustainability-focused organizations. Our strategy is to work together with those from diverse backgrounds and in different industries to learn, upskill, contribute and build capacity.

The Canadian Sustainability Standards Board. Manulife Investment Management is a member of The Canadian Sustainability Standards Board (CSSB) which works with the International Sustainability Standards Board (ISSB) to support the uptake of ISSB standards in Canada, highlight key issues for the Canadian context, and facilitate interoperability between ISSB standards and any forthcoming CSSB standards.

Climate Action 100+. In 2017, Manulife Investment Management became a founding member of Climate Action 100+.

ESG Data Convergence Initiative. Manulife Investment Management supports and participates in this initiative, and we have aligned our annual reporting to this initiative for our Private Equity and Credit, and Infrastructure businesses.

Finance for Biodiversity Foundation. Manulife Investment Management is a member and participates in working groups where we contribute to engagement and target setting frameworks on nature.

The International Sustainability Standards Board. Manulife has been a member of the ISSB Investor Advisory Group since 2019. We continue to monitor the evolution of the standards and we may evolve our reporting as new standards materialize.

Principles for Responsible Investment (PRI). Manulife Investment Management has been a signatory since 2015 and is an active member of various working groups, including the Infrastructure Advisory Committee, Listed Equity Advisory Committee, Stewardship Initiative on Nature Signatory Advisory Committee, and Real Estate Advisory Committee. Our annual submission to the PRI reports on Manulife Investment Management’s activities and progress in implementing the PRI’s principles according to the PRI’s reporting framework.

Stakeholder Capitalism Metrics Initiative. Led by the World Economic Forum (WEF), the Stakeholder Capitalism Metrics initiative promotes alignment among existing ESG frameworks and establishes a set of metrics that enhances comparability and consistency.

Task Force on Climate-related Financial Disclosures (TCFD). Manulife has been a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) since 2017 and is committed to adopting and aligning our disclosures to the TCFD recommendations, now overseen by the International Financial Reporting Standards Foundation's ISSB.

Task Force for Nature-related Financial Disclosures (TNFD). Manulife has been involved in key industry groups shaping this key disclosure framework.

United Nations Global Compact. In 2022, Manulife became a signatory of the UN Global Compact, a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies and to report on the implementation.

World Business Council for Sustainable Development. Manulife Investment Management has been a member since 2019.

The following are our Sustainability related policies and position statements that guide our work:

Cluster Munition Policy

Manulife will not knowingly make direct investments in companies that manufacture cluster munitions where we have discretion to do so. This policy applies to policyholder funds (Manulife’s “General Account” funds) and third-party client funds of Manulife Investment Management. This policy does not apply to investments where we do not have investment discretion such as index investments, unaffiliated fund mandates and client-directed managed accounts.

Manulife uses an independent third party to maintain an exclusion list of companies that manufacture cluster munitions. The exclusion list is updated on a quarterly basis.

Our 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 ensure our strategy remains current, responsive, and closely integrated with our business objectives.

Our Materiality Assessment Process

1) Research

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.

2) 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 stakeholders across 15 markets, including North America, Europe, Asia, Australia and New Zealand.

3) 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.

4) Validation and approval

Senior leadership reviewed the assessment findings and determined that they were consistent with our strategic priorities and long-term enterprise-wide objectives.

We aim to conduct a global materiality assessment on an annual basis to ensure our sustainability strategy remains up to date, reflective of, and aligned with both our business strategy and stakeholder expectations. The results of our materiality assessments have been reviewed by Manulife's Executive Sustainability Council as well as the Board of Directors’ Corporate Governance and Nominating Committee.

Ways We Engage

The following table identifies our key stakeholder groups, how we typically engage with them and their primary topics of interest,  and our ongoing stakeholder interactions.

Manulife 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.

For more information, please visit Manulife’s Climate Action & Commitment to Net-Zero Future

Preserving our natural resources is critical to the well-being of future generations. Nature is made up of both the living (biodiversity of ecosystems, species, and genes) and non-living (land, soil, water, and air) realms. Biodiversity is the variety of life on earth and is at the heart of a healthy environment. At Manulife, we believe in safeguarding forests, wetlands, and natural habitats where biodiversity thrives.

Asset ownership

Nature is considered among various factors in General Account's evaluation of overall environmental risks and opportunities during the underwriting and monitoring of our investment portfolio, assessed when deemed material.

Asset management

At Manulife Investment Management, we believe businesses and assets that effectively manage natural resources and environmental impact from operations can offer investors a better risk/reward profile over the long term as nature-related risks and opportunities begin to manifest both physically and financially. In

contrast, businesses and assets that fail to account for their relationship with nature could face increased exposure to material risks. Examples include raw material shortages, supply chain disruptions due to extreme weather events, reputational damage, insurance costs, product substitution, and loss of market share due to shifts in consumer preferences, as detailed further below.

The forest and farms we manage are ecosystems, and our job is to keep them healthy and productive over the long term. We operate in a way that responsibly manages land and protects sensitive lands and biodiversity through stewardship practices. In our real estate, we have been actively engaging in initiatives to support nature and biodiversity within the built environment for several years.

One tool we believe to be invaluable for tracking progress on halting and reversing nature loss — as well as for informing decisions that will make this possible — is natural capital accounting. Moreover, it is a key component of our evolving approach to nature. Our approach entails construction of a natural capital asset register and materiality assessment, followed by valuation of natural capital assets and liabilities using a combination of internal company data and publicly available research.

For additional information and reports, including Manulife Investment Management's Nature Statement, please visit

Sustainable Investing | Manulife Investment Management

Our Community Investment initiatives and partnerships work to foster healthier, more financially secure communities across the three interconnected focus areas of our Impact Agenda.

We continue to work to align our portfolio of Community Investment organizations to our new areas of focus. Our strategy prioritizes investments to organizations that:

• Drive community-centered solutions, working collaboratively across sectors, aimed at innovative and scalable initiatives.
• Demonstrate a holistic approach to many aspects of well-being, including mental health, to improve and sustain positive outcomes over the long-term.
• Utilize data to measure impact with key performance indicators and a commitment to reporting on progress.

Investment Focus: We focus on removing barriers and empowering people in the communities where we operate. With humanitarian and natural disasters happening around the world, we are committed to helping communities respond effectively with resiliency and recovery resources. We consider funding strategically aligned project or program specific grants  to organizations whose missions are highly aligned with our investment focus areas. In addition to programmatic funding, we also fund research and innovation to support cutting-edge ideas to understand, address, and promote sustainable change. We monitor and track outcomes through regular partner impact reports and surveys, using this data to assess progress, strengthen accountability, and inform continuous improvement.

For more information, please visit:

• Manulife Canada Community Investment
• John Hancock Community Investment 
• Hong Kong Community Investment

Supporting financial resilience is a core pillar of Manulife’s Impact Agenda. By expanding access to financial solutions and capabilities, we enable individuals and families to prepare for uncertainty, manage life transitions, and navigate increasingly complex financial journeys.

Guided by market-specific insights and through our local inclusive business programs, we consider affordability, accessibility, and relevance to ensure our products and services meet the needs of our customer across geographies. Insights from Manulife’s Longevity Institute further strengthen this work and help inform solutions that support long-term financial well-being, including planning for extended working lives, retirement security, health-related expenses, and intergenerational needs.

We leverage our capabilities, scale, and partnerships to improve financial access and literacy, expanding purpose-built insurance and wealth solutions — such as affordable health and critical illness coverage, digitally enabled insurance offerings, and mobile banking solutions.. In parallel, we invest in community-based initiatives and financial education programs that strengthen financial capability and promote long-term well-being. Through partnerships with external organizations and local groups, we extend access to financial tools, knowledge, and services, contributing to more inclusive economic participation across our markets.

Our commitment to financial inclusion is reviewed as part of Manulife’s Executive Sustainability Council (ESC)’s mandate. The ESC consists of our Global Chief Sustainability Officer (CSO) along with eleven members of our Executive Leadership Team (ELT), including our Chief Executive Officer (CEO).

Guiding and Enabling Policies

Our Conduct Risk Framework outlines best practices that our business should follow in all phases of the product and service cycle, including those regarding the fair treatment of customers.

Guided by our four strategic pillars—Workforce, Workplace, Business, and Community—we place inclusion at the center of how we support employees, design experiences, and contribute to more equitable outcomes. Our vision is to foster a culture where inclusion is instinctive, human-centered, and innovative, enabling all employees to thrive and contribute meaningfully.

Our inclusion efforts are supported by three interconnected structures that bring the strategy to life across the organization:

• Global Inclusion Team – Provides enterprise-wide leadership and governance, ensuring inclusion is embedded across people practices, customer experience, and product design.
• Global Inclusion Councils – Translate the strategy into tangible actions specific to the business units and segments.
• Colleague Networks – Voluntary employee-led networks, open to all colleagues, that help foster engagement, belonging and allyship.

The global strategy is led by the Global Chief Inclusion Officer and collectively guided, supported, facilitated, and implemented by the Inclusion team and Global Inclusion Council. Chaired by our Chief Executive Officer and Chief People Officer, the Global Inclusion Council includes executive leaders who champion inclusion within their business functions—turning strategy into action.

Colleague Networks are inclusive, colleague-led communities that are centered on the internal colleague experience, and open to all colleagues, these networks to share experiences, build relationships, and support our inclusive culture.

We have 14 Colleague Networks, including:

• Ability – Colleagues of All Abilities and their Allies
• AMP (Association of Multicultural Professionals) – Multicultural Professionals and their Allies
• EMBRACE – Ethnic minorities in Hong Kong and their Allies
• Family – Families and Caregivers
• GenerationNext – Multigenerational Workforce
• GWA (Global Women’s Alliance) – Women and their Allies
• IPTA – Indigenous Peoples and Their Allies
• LatinX – Latin Colleagues and their Allies
• Male Allies – Male allyship
• MILE – Veterans, Military Families and their Allies
• PACES – Pan-Asian Community and their Allies
• PROUD – 2SLGBTQ+ Colleagues and their Allies
• Shalom – Jewish Culture, Heritage and their Allies
• VIBE – Black Community and their Allies

Pay Equity

We are committed to providing all employees with fair and equitable pay opportunities. Our commitment starts with our unbiased job evaluation process and global job architecture around which our compensation structures and programs are designed. These foundational pieces are central to ensuring work across the organization is valued fairly using a consistently applied methodology. We’ve built a pay-for-performance environment where compensation is tied to business impact and individual performance - measured by both “what” they achieve and “how” they achieve it - including living our values, leading by example, and fostering colleague engagement.

We take ongoing steps to identify and mitigate the risk of unconscious bias in our pay practices and to help ensure equitable compensation outcomes for our employees.

Key examples of this include:  

• Robust leader training on unconscious bias and our annual compensation processes
• Unbiased and performance-based salary and incentive guidelines
• A detailed calibration of annual compensation recommendations to help ensure a fair distribution of awards
• A multi-layered review and approval of the outcomes of our annual compensation cycle

We work with third-party subject matter experts to routinely review our compensation programs and maintain our compliance with all legal and regulatory pay equity requirements. Along with those partners, we also continuously monitor the external environment for developments related to pay equity and pay equity legislation.

To track and measure our pay equity success, we conduct detailed quarterly comparative analysis. Using this analysis, we seek to maintain average compensation for women and for racially and ethnically diverse populations at parity with that of males and non-racially and non-ethnically diverse populations taking into account differences due to job level, job families, tenure, specialized skills and individual performance.

Manulife is committed to incorporating environmental and social considerations into our sourcing decisions to help the organization buy better. Manulife works with suppliers who share similar values, including suppliers who are committed to responsible stewardship of environmental and social factors within their businesses.

Manulife’s Global Procurement and Third-Party Management Standard provides guidance on delivering the best value with all third-party purchases, and ensures dealings align with Manulife’s Code of Business Conduct and Ethics. This standard enables procurement to maximize the provision of products and services and minimize risk while upholding our high ethical standards with suppliers.

In May 2024, we revised our Vendor Code of Conduct to include additional requirements related to Human rights, including reference to the International Labour Organization core conventions on anti-slavery & human trafficking, discrimination, harassment, and violence, working hours and wages, freedom of association, and environmental protection. Manulife seeks to partner with suppliers who actively manage and mitigate sustainability risks within both their operations and value chain, demonstrating their commitment to responsible business practices.

Our colleagues are at the heart of our business, and we are focused on attracting, retaining, and developing an inclusive network of talent.

Training and Development

We are committed to creating a workplace that offers broad  opportunities for employees to realize their career goals. Employees want to work for an organization they believe cares for them, values their perspective and contributions, invests in them, and gives them flexibility to deliver great work. Whether working abroad, exploring new career directions, or progressing in their chosen field, we support employees at every career stage in reaching their full potential through focused development opportunities, programs, and online resources. In addition to on-the-job development , mentoring, coaching, in-house programs, and online learning resources, we often subsidize the cost of continuous learning and examinations as employees pursue their learning and individual development plans.

Our vision is to provide a high-quality learning experience that empowers our employees to learn anytime, anywhere. Manulife focuses on offering employees learning opportunities to enable them to work more innovatively and collaboratively and to accelerate our ambition of being the most digital, customer-centric global company in our industry.

On an annual basis, all employees must participate in the following mandatory training courses: Code of Business Conduct and Ethics Training and Certification, Anti-Money Laundering and Anti-Terrorist Financing Training, and Information Protection Training Preventing. We launch Discrimination, Harassment and Workplace Violence training every other year for most jurisdictions..

Sustainability Learning on Mammoth: Globally, all full-time employees along with part-time and contract workers have access to the Mammoth Climate learning platform. This platform offers a range of sustainability-focused lessons covering topics such as climate fundamentals, global climate solutions, and ways to reduce personal environmental footprints at home and in the workplace. It also includes Manulife-specific sustainability content, such as our Climate Action Plan, Impact Agenda, Sustainability Report and sustainable investment strategies. In 2025, over 7,600 bite-sized sustainability lessons were completed by our employees, along with a knowledge testing quiz aimed to enhance climate literacy.

One of Manulife’s key priorities is protecting and supporting the health and wellbeing of our employees. We strive to support the diverse nature of our workforce, and we prioritize their health, safety and well-being through the following means:

• Providing colleagues with a comprehensive benefits package that supports them and their families.
• Flexibility when it comes to their benefits and well-being choices.
• Supporting the evolving needs of our colleagues and enhancing our benefits and well-being offerings.
• Ensuring compliance with legislative requirements.

Our employee programs cover a wide array of benefits plans with options that employees can tailor to their individual needs. Our benefits and wellness programs vary by region and may include:

• Health, dental, vision, short-term disability, long-term disability, and life insurance coverage
• Retirement savings plans
• Care and support for employees with cancer
• Mental health support and benefits
• Extra Personal Days for employees to use during each calendar year
• Family friendly benefits for families of all kinds and family planning, including fertility support, and financial support for adoption and surrogacy
• Maternity, parental and adoption leaves above statutory requirements, including paid maternity, parental and adoption leaves, in certain geographies. In North America we offer:
  • 20 weeks paid parental leave for the primary caregiver, and 12 weeks paid parental leave for the non-primary caregiver
  • 12 weeks paid adoption leave for non-birth parents
• Adoption and surrogacy benefits that reimburses for eligible expense to a maximum of $20,000 per adoption and $20,000 per surrogacy.
• Designated breastfeeding facilities and parenting rooms in many of our corporate offices
• Emergency childcare and eldercare subsidies
• Ability to expense childcare through a flexible wellness account via employee benefits, up to the available maximum
• Our U.S. and Canada colleagues have access to 20 days of back-up childcare per dependent per year at employee subsidized rates
• Gender reassignment coverage in many jurisdictions
• Flexible work programs and working hours following a human-centered approach, so employees can manage their time and personal schedules
• Some positions offer part-time contracts
• Some positions offer full-time remote work, or a hybrid working from home arrangement
• Access to industry-leading expertise and financial products to help employees optimize their own financial planning
• Healthy workspaces, including healthy food options in cafeterias and amenity spaces supporting wellness at several locations.
• Onsite fitness facilities with group fitness classes including yoga at several locations
• Ability to expense fitness equipment, gym memberships and fitness app costs through a flexible wellness account via employee benefits.

Labour Practices

At Manulife, we are committed to creating a workplace where our people feel valued, respected, and supported. We believe that fair labour practices are essential to delivering on our purpose and sustaining a culture of trust and inclusion.

Fair Compensation and Working Hours

Fair Compensation: We participate in a broad range of external market surveys to help ensure we are paying competitively compared to other companies in our industry. This data is used to help set base salary budgets, salary ranges, incentive targets, and to design compensation programs.

Working Hours; We comply with all local regulatory and legislative requirements governing payment of employees, and work hours and breaks. As standards vary by jurisdiction, colleagues may access information on Manulife’s payment of wages and time at work standards including overtime pay, on-call pay, expected hours of work and breaks, and regular pay.

Flexible Work and Well-being

Our Working Better Colleague Toolkit outlines our hybrid work approach, empowering employees to balance work and life while staying connected and productive. This toolkit provides guidance on flexible arrangements and resources to help colleagues protect their mental health and thrive in a changing work environment.

At Manulife, we prioritize the mental health and overall well-being of our workforce by offering comprehensive, accessible support. From onsite Employee Assistance Program (EAP) clinicians to practical resources that help people leaders recognize and address burnout, we take steps to help ensure care is proactive and personalized. Our backup childcare programs reduce stress for working parents, while bite-sized wellness initiatives—such as guided meditation sessions and desk stretch breaks—make it easy to recharge during the day. These efforts reflect our unwavering commitment to creating a healthy, resilient, and thriving workplace for all. Manulife employees in Asia and their immediate family members have access to the Work Life Coaching Program, which is a form of Employee Assistance Program (EAP). This confidential, no-cost service provides external consultation on topics such as work challenges, work-life balance, change, parenting, relationships, loss and grief, and addiction. Support is available 24/7 via phone, face-to-face, or email.

Paid Leave and Time Off

Through our Global Time Off and Leaves Policy, we meet or exceed regulatory requirements for paid annual leave globally.

Listening to Our People

We listen to our employees through annual global engagement surveys and regular pulse surveys. These provide insights into satisfaction, inclusion, and well-being, and help us take meaningful action. We also offer resources for mental health and resilience, including access to Employee & Family Assistance Programs and initiatives like Fuel Up Fridays, which in 2025 included focus on topics such as cultivating well-being and resilience.

Development and Reskilling

We invest in training and reskilling to prepare our people for industry and climate transitions. For example, our April 2025 Fuel Up Friday session focused on accelerating impact in the longevity economy, equipping employees with knowledge to adapt to evolving market needs.

Our commitment to fair labour practices reflects our belief that when our people thrive, our business thrives.

AskHR

Employees can call, email or chat directly with a live agent through our AskHR website with any questions relating to HR policies and benefits programs, or to raise concerns. With representatives located across our global footprint, AskHR is always ready to support employees and managers globally. 

Our Global Health and Safety program embodies its commitment to providing a safe and healthy workplace in compliance with legislative occupational health and safety requirements. This commitment to health and safety is an integral part of our operations and involves the co-operation and support of every individual within the Company. 

All employees have a responsibility for fostering a healthy and safe working environment: 

• Our global Working Better Program  helps guide how we manage work schedules and connect with each other to boost our effectiveness.

• Senior management is responsible for enforcement of Manulife’s Global Health and Safety Policy and for ensuring that Health and Safety Committees are established as required by law. Leaders are held accountable for the safety of employees under their supervision. This includes ensuring that equipment is safe and that employees work in compliance with established safe work practices and procedures. 

Our Global Health and Safety Policy recognizes that everyone in the organization has specific responsibilities for Occupational Health and Safety integrated into everyone’s job. This includes: 

• Encouraging all colleagues to comply with all company operating procedures pertaining to health and safety and empowering them to take ownership of their safety and report any concerns.  

• Encouraging colleagues, supervisors, and senior management to raise and resolve health and safety issues as part of their daily business duties. Referring items to senior management if the department manager/supervisor is unable to correct the issue and encourage use of the Joint Health and Safety Committee, Health and Safety teams, and Employee Relations.

• Our workplace policies and programs prioritize prevention, monitoring of our health and safety procedures, and training. This includes procedures to investigate work-related injuries, illnesses, diseases, and incidents.
  
  For instance, if a slip and fall occurs, there is an emergency procedure followed to appropriately attend to the individual. An employee incident report form and an incident/hazard investigation form are completed to help ensure any deficiencies are corrected.
  
  Our workplaces have emergency response plans to identify risks and to plan for emergency situations affecting both premises and employees. We identify actions required to prepare for, and respond to, emergency situations.
  
  Internal inspections, including health and safety workplace, security, and real estate/building operations, are completed. Hazards and risks noted during inspections are escalated to the appropriate teams and issued remediation works are monitored to track completion.

• To develop a culture where employees value the health and safety of themselves and others, we provide employee education, including how to report health and safety incidents, health and safety training, first aid and mental health first aid training for key individuals, and training on our Global Discrimination, Harassment and Workplace Violence Policy.

Delivering great customer experience starts with listening closely to our customers, learning from their signals and cues and responding quickly with action. Through our Net Promoter System (NPS), enabled in all of our business globally, we collect real-time feedback from customers at all key moments of interaction. This transactional feedback is delivered directly to the teams that are empowered to take steps to fix or change the customer experience. We are continually maturing our NPS system, ensuring we have the best coverage across key touchpoints and the right people in place to act on real-time feedback.

Customer complaint resolution: We are committed to providing high-quality service and products to assist customers in making better financial decisions. If customers have questions or concerns, we see it as our responsibility to respond promptly, accurately and with the utmost courtesy. Our websites outline complaint resolution processes in each region. The Audit Committee annually reviews the procedures for dealing with customer complaints.

When customers lead longer, healthier lives, it benefits them, their life insurers, and society as a whole. As a life insurer, retirement plan provider, and asset manager, we are well-positioned to help our customers achieve a healthier, longer life underpinned with financial resilience to enjoy life to its fullest.  

Behavioural Insurance: We are at the leading edge of behavioural insurance, a shared value approach to life insurance that encourages customers to take small steps every day towards living longer, healthier, better lives. 

When customers live longer, healthier lives, it is good for them and for their life insurers, while society benefits as a whole — it is a primary example of bringing the principles of shared value to life. This type of insurance provides financial protection and rewards customers with premium savings and other benefits when they make healthy lifestyle choices.

Through our behavioural insurance products across Canada, the U.S., and select markets in Asia, we support customers in living healthier, more active lives by rewarding them for making healthy lifestyle choices. We offer behavioural insurance programs in Canada (Manulife Vitality), the U.S. (John Hancock Vitality), and in select markets in Asia (ManulifeMOVE).

Life and Health Insurance

Manulife aims to be at the forefront of analysis of the impacts of climate change on products and underwriting for life and health insurance. These impacts range in severity and complexity, from acute illness to chronic stress.

Our approach includes an interdisciplinary team of Manulife professionals that undertake research to understand the human impacts of climate change, build awareness of human impacts across the business, and engage with external experts on relevant initiatives. Our focus is on research and data collection to inform products, product pricing, underwriting, claims, and actuaries as we learn more about the impact of physical climate-related risks on morbidity and mortality rates.

Our changing climate has an impact on human health. Every country and individual will be affected, with vulnerable populations at greatest risk. We believe that the work undertaken by our business benefits Manulife’s ability to manage climate-related risks and opportunities and respond to client needs.

Our guidelines and customer pricing are based on historical data, and we continuously seek to understand how changes in our environment may impact our customers through shifts in incidence rate or severity of certain conditions. We have frameworks in place to study the experience and inform decisions that lead to changes. We have a country classification process that requires us to analyze risks associated with each country where we sell products. We include environmental risk factors as part of the scoring, and we refresh the scores every three years to allow us to take into account any significant shifts in experience. Our claims experience together with the results of the country classification process are then reflected as adjustments to products, underwriting guidelines, or pricing.

Aging is also a key consideration. We understand that each age group comes with different risks, and we underwrite according to those risks. The elderly population has unique risks, which we have covered in our proprietary underwriting guidelines. We consider factors such as mobility, cognition, weight loss, and complex co-morbidities and generally require that our most experienced underwriters review these cases. We often require older age exams specifically designed for the older ages.

Manulife has a proprietary life insurance manual that is managed and maintained to reflect multiple risks including environmental impacts, obesity, emerging health issues, and other topics. We have a steering committee comprised of medical directors, chief underwriters, research underwriters, risk managers, actuaries, and others to ensure we stay abreast of changes. Our experts review publications in all major medical journals and our internal experience from claims to make informed decisions and update the manual.

Financial Resilience

As people around the globe live longer, building financial resilience becomes even more critical. Financial resilience is the ability to navigate and bounce back from the financial obstacles that occur throughout our lives, such as debt, healthcare costs, emergencies, and unexpected life events. Longevity brings with it a new wave of obstacles and decisions people must face, from managing family care, housing, healthcare, and education to the services, products, and technologies that they’ll require as they age. We help people around the world confidently save and invest for their longer lives through engagement, education, and advice. We support and promote digital engagement to help individuals take control of their longer financial lives. We provide financial education to help them build the knowledge and confidence they need to navigate this new territory. And we help individuals through their working and post-career years with access to advice and financial education.   

Learn more about Manulife’s commitment to longevity through our Longevity Institute

Our approach to respecting and promoting human rights is guided by the United Nations Guiding Principles on Business and Human Rights and the International Labour Organization (ILO) core conventions. Manulife is firmly committed to respecting human rights in our business and throughout our supply chain. 

Throughout our organization, our teams act in accordance with Manulife’s Code of Business Conduct and Ethics, which affirms our commitment to ethical conduct and to operating within the laws and regulations of every jurisdiction in which we operate. All active Manulife employees and contractors are required to complete annual training related to Manulife’s Code of Business Conduct and Ethics.

Across Manulife’s global business, we have policies and frameworks in place to manage human rights risks, including modern slavery risks. We believe ethical business practices and good governance are integral to how we conduct our business and to our long-term success. Achieving our objectives requires a commitment to integrity and consistent high standards from all our partners, including our employees and vendors, through compliance with a framework of policies that help us manage our business. 

Our policies and standards are guided by international principles, as well as the letter and spirit of all applicable laws and regulations. We take steps to ensure our partners are aware of their obligations, and institute appropriate due diligence and monitoring to detect human rights violations in our supply chain. To ensure our key controls are effectively designed and executed, we subject our controls to ongoing quality assurance testing coupled with independent monitoring and testing from our Second and Third Lines of defense, for example, by Enterprise Risk Management and internal or external Audit. 

Examples of policies we have implemented to mitigate human rights risks include:

• Manulife Code of Business Conduct and Ethics (“the Code”), which reiterates our commitment to ethical conduct and our practice of complying with all applicable laws.

• Global Human Rights Statement which demonstrates our commitment to respecting and promoting internationally proclaimed human rights.

• Vendor Code of Conduct, which requires all of Manulife’s vendors to adhere to.

• Global Health and Safety Policy detailing our commitment to health and safety in the workplace.

• Global Discrimination, Harassment and Workplace Violence Policy which aims to address discrimination, harassment, and violence from all individuals with whom we come into contact in the workplace, including employees, contingent workers, contractors, customers, clients and third parties.

As a member of the UN Global Compact, Manulife provides all employees with access to the UN Global Compact Academy, which includes various modules on human rights. Furthermore, selected employees have participated in the UN Global Compact’s Business and Human Rights accelerator program.

Financial Crimes

We adhere to all applicable anti-money laundering and terrorist financing laws and regulatory requirements in the jurisdictions in which we operate, including guidance on money laundering risk related to modern slavery and human trafficking.

Our Compliance, Global Investigative & Forensic Services, and Corporate Security functions work to address matters of modern slavery by both proactively assessing the effectiveness of our due diligence practices and responding to any complaints.

The risks these programs monitor include, but are not limited to human trafficking, forced labor, and debt bondage. The programs in place are designed to educate relevant employees and develop resources for customers to seek assistance.

Together, our internal teams work with community resource groups and law enforcement to raise awareness and provide education to combat modern slavery.

For additional information, please refer to our Global Human Rights Statement and our Modern Slavery Act Statement.

Enterprise Risk Management Framework

Our approach to risk management is governed by our Enterprise Risk Management (ERM) Framework. The ERM Framework is a foundational, holistic, compliant, integrated, and adaptive approach to understanding and managing risk while balancing the need to remain competitive. This structure is designed to provide guardrails on our risk profile while optimizing risk-adjusted returns without compromising our ability to meet our commitments. The ERM Framework is comprised of five interrelated components: Risk Taxonomy, Risk Appetite, Risk Governance, Risk Process, and Risk Culture.

Risk Taxonomy: Our businesses and operations expose Manulife to a broad range of potentially material risks. The Risk Taxonomy categorizes and defines these potentially material risks. It creates a common risk language and provides reasonable assurance that risks are consistently understood and managed.

The Risk Taxonomy is a core element of the ERM Framework, supporting all other components. It provides the basis for policy and committee coverage (Risk Governance), enables risk identification (Risk Process), reasonably assures that Risk Appetite Statements and Limits are established for material risks (Risk Appetite), and clarifies who is accountable for managing each risk (Risk Culture).

Risk Appetite: The Risk Appetite Framework (RAF) guides the level of risk for each risk category we are prepared to accept in pursuit of our strategic priorities, as well as how much additional risk we can tolerate. The RAF helps balance risk and return, promoting sustainable growth and resilience, supporting informed decision-making, and fostering prudent Risk Culture. The RAF is integral to the Board and management discussions and decision-making. They receive regular reports on the RAF’s effectiveness and compliance, including comparisons of actual results versus stated RAF measures, and are notified of any limit breaches and corresponding action plans. Risk Appetite Statements are designed to provide guardrails on our appetite for identified risks.

Risk Governance: Risk Governance provides an organized approach to risk management oversight. It is articulated in policies and executed through a Three Lines Operating Model that is supported by a risk committee structure. Requirements, limits, and decisions are cascaded top-down; issues, escalations, and reporting are raised bottom-up. Manulife has robust risk governance structures that embed risk awareness into business processes, promote accountability, and enable informed decision-making through structured forums. These governance mechanisms ensure clear oversight and escalation protocols, fostering an effective risk culture across the organization. They have been instrumental in discussing, refining, and approving enhanced risk frameworks, including those related to geopolitical risk and responsible AI governance, strengthening Manulife’s ability to anticipate and manage complex, evolving risks.

Risk Process: The Risk Process involves the First Line managing risk in alignment with the RAF and within Risk Limits, and the Second Line overseeing risk management and providing objective challenge. It entails the First Line and the Second Line independently identifying, assessing, monitoring, and reporting on our current risk profile and our risk profile under stressed conditions, with appropriate controls and documentation.

Risk Culture: The Company is committed to a set of shared values that reflect our culture, inform our behaviours, actions, and decisions, and help define how we work together. Our overall Risk Culture is a subset of the Company’s culture; it reflects behaviours, actions, and decisions in relation to risk awareness, risk taking, and risk oversight. A sound Risk Culture ensures our risk-return balance remains within our risk appetite and is aligned with the ERM Framework. It prioritizes an effective control environment, and aims to promptly detect and remediate policy/limit breaches and operational incidents. It follows up to understand root causes, enhances preventative and detective controls, and facilitates appropriate disciplinary action, if warranted.

For more information, please read Manulife’s Management's Discussion & Analysis

We pride ourselves on honesty, integrity, and an uncompromising dedication to the highest standards of business conduct. We have a reputation within the industry that speaks to our moral compass and professionalism when it comes to our ethics and compliance culture.

Manulife’s Code of Business Conduct and Ethics (the Code) incorporates the company’s anti-bribery and anti-corruption requirements. The Global Chief Compliance Officer’s mandate includes responsibility for the Code and the company’s compliance program.  The Audit Committee of the Board of Directors holds the highest governing responsibility for ethics and compliance at Manulife. Our Global Chief Compliance Officer reports to the Board’s Audit Committee at least quarterly on the monitoring of compliance matters, including anti-bribery and anti-corruption.

Our employees and all members of Manulife’s Board of Directors receive training and must certify their compliance with the Code annually, be well-versed in its provisions and conduct themselves according to both the letter and the spirit of those provisions. Employees are also required to comply with all relevant laws and regulations, as well as internal policies, standards and guidelines. In addition to providing compulsory and supplemental training that includes annual mandatory training on the Code, we run specialized employee communication campaigns to reinforce our well-established culture of compliance. These campaigns and training cover topics such as fraud, cyber security, risk awareness, data privacy and security.

Ethical Business Practices

Manulife is committed to ethical business practices across its global operations. Management maintains an uncompromising stance against fraud and misconduct, whether perpetrated by its personnel or by individuals acting on its behalf. While management rigorously addresses every known instance of fraud, it acknowledges that the size and scope of the business make it impossible to prevent all cases of fraud and misconduct. Consequently, Manulife accepts fraud risk losses within the monetary boundaries defined by the enterprise risk appetite.  

The Global Anti-Fraud Officer is responsible for second line of defense oversight and coordination of the Company’s Anti-Fraud efforts. This oversight and leadership are global in nature requiring the Global Anti-Fraud Officer to coordinate with the other control functions and report and advise the parent and subsidiaries worldwide on all anti-fraud and anti- corruption requirements, as well as privacy, data security and third-party due diligence where issues relate to suspected fraudulent or intentional misconduct. Manulife has a global issues and corrective action plans (CAPs) management process where issues and corrective action plans are reported to senior leadership and tracker closely until implementation and closure. Our Anti-Fraud Policy includes a set of internal fraud reporting thresholds and a quarterly reporting requirement to help ensure that fraud reporting information is escalated on a timely basis. The Global Anti-Fraud Standards contain Manulife’s Fraud Risk Appetite Statement, a description of the Company’s anti-fraud organizational structure, roles and responsibilities of each related function and the minimum control requirements throughout the fraud risk management process from identification to mitigation to reporting.

The Anti-Fraud Monitoring process includes: 

• An assessment of the nature of Ethics Hotline matters, the disposition of such matters, and the segments in which those matters arise. 
• Review and follow-up of issues and corrective action plants with a nexus to fraud.
• Quarterly global segments anti-fraud forums
• Bi-weekly Anti-fraud Fusion Center meetings which consists of members from Anti-Fraud Operations, Cyber Security, GIFS, Privacy, Corporate Security and Anti-Money Laundering/Anti-Terrorist Financing, Global Fraud Analytics COE, and Global Anti-Fraud Office.  
• Quarterly self-assessment of overall internal control effectiveness
• Annual global fraud risk self-assessment
• Facilitation payments, a form of bribery and/ or kickback, are considered unfair and unethical business practices that are prohibited by Manulife wherever we do business. This prohibition would apply not only to Manulife employees but also to consultants, vendors, or any third-party conducting business on behalf of Manulife as part of their obligations to comply with Manulife’s Vendor Code of Conduct.

We have been utilizing well-known AML compliance and customer screening tools, at a company-wide level, to facilitate ongoing customer transaction monitoring and watchlist name scanning. These systems and supporting processes are designed to identify unusual or suspicious customer transactions to enable reviews, due diligence, and accurate and timely reporting to the appropriate regulator(s) and law enforcement where necessary. 

Manulife has a comprehensive system of internal controls designed and executed in accordance with our AML/ATF policy and standards to mitigate the risks that our products or services could be used to support any criminal activity or facilitate money laundering. To ensure our key controls are effectively designed and executed, Manulife provides ongoing mandatory company-wide training to our employees and subjects our AML/ ATF controls to ongoing quality assurance testing coupled with independent monitoring and testing from our Second and Third Lines of defense.

More information can be found in Manulife’s Statement on Anti-Money Laundering/Anti-Terrorist Financing and Sanctions Statement.

Development of employee expertise

A critical component of the Manulife control environment is the focus on development of employees through relevant independent accreditation programs. Manulife employees responsible for the ongoing effective execution of our key compliance related controls have received certifications and designations from independent accreditors in their respective areas of risk such as Anti-Fraud (e.g., Certified Fraud Examiners), Anti-Money Laundering (e.g., Certified Anti-Money Laundering Specialist), Anti-Bribery and Corruption and Code of Conduct (e.g., Certified Financial Crime Specialist).

Manulife’s support teams, such as second line of defense Investigative and Forensic Services (e.g., Certified Professional Investigator) and Audit Services (e.g., Certified Internal Auditor) representing the third line of defense also obtain relevant designations and certifications to fulfill their respective responsibilities within the control environment.

Manulife also provides training on ethical standards for all employees, including part time employees and contingent workers where applicable. Training topics and scenarios include:

• Information Protection
• Anti-Fraud
• Reporting Unethical Conduct
• Insider Trading
• Social Media Usage
• Using Company Assets
• Avoiding Conflicts of Interest
• Working with Suppliers and Counterparties
• Government and Political Dealings
• Anti-Bribery and Anti-Corruption

Using informative case studies, our training also spotlights the areas of emerging risk, such as the use of unapproved communications channels, electronic communications including the use of new technology (e.g. AI), potential sustainability risks , and sales culture and conduct. The training incorporated enhanced sections on financial crimes, and unapproved “off-channel” communications. New case studies were added on conduct and culture, artificial intelligence, foreign inference reporting and truthfulness in responding to audits and investigations. 

Reporting on breaches

In addition to other available avenues of reporting, which include speaking with a direct manager, legal, compliance, human resources and employee relations, the Manulife and John Hancock Ethics Hotline is toll-free, available 24-hours per day, seven days per week, and can be used anonymously, if the person so chooses. The confidential Ethics Hotline enables employees to ask questions about the Code or report suspected misconduct and is maintained by a third-party service provider. Unethical, unprofessional, illegal, fraudulent, or other questionable behaviour, including any concern with respect to auditing and accounting matters, may be reported through the confidential Ethics Hotline. Concerns received via the Ethics Hotline related to auditing or accounting matters will be forwarded to Manulife’s Audit Committee by the Global Compliance Chief.

Reports of alleged misconduct received are handled through our Ethics Hotline in three phases: Intake Phase, Investigation Phase; and Resolution Phase.   

• The Intake Phase includes the receipt of a report, determination by the Global Ethics Office concerning the issues raised, and determination of the relevant segment. The Global Ethics Office provides a preliminary response to the reporter to acknowledge receipt of the report. The matter may be channeled to the applicable Segment Compliance Officer or others as appropriate. An action plan is developed based on the issue and complexity of the matter, and additional information is gathered as needed. In sensitive matters, the Global Ethics Office may lead the investigation.
• During the Investigation Phase, the Global Ethics Office or relevant Segment Compliance Officer assigns an individual to lead the investigation and coordinate the fact-gathering process. This includes interviewing personnel, gathering documents/records, and obtaining background information. The lead investigator provides periodic updates on the investigation to the Global Ethics Office, which may notify the reporter of any further questions or updates.
• In the Resolution Phase, the Global Ethics Office determines whether administrative and/or remedial action is warranted. If no action is warranted, the matter is closed, and a closing note is posted on the Ethics Hotline system. If action is warranted, the Global Ethics Office confers with appropriate management, compliance, and/or ER/HR personnel to develop and implement an action plan. Once resolved, a closing note is posted on the Ethics Hotline system.

Our tax strategy is based on the following principles:

• Complete honesty and integrity

• Compliance with all applicable laws and regulations, including transfer pricing guidelines

• Contribution to shareholder value

• Customer-centric client service

• Protection of the Manulife brand and reputation

• Operational efficiency and effectiveness

• Openness and co-operation with tax authorities

Manulife has established formal committees to review and approve significant transactions and structures. Such committees are accountable to the ELT and/or Manulife’s Board of Directors as is deemed appropriate. Manulife’s Global Tax department participates in these committees and Global Tax’s approval is required for transactions and structures with significant tax implications. Our Transfer Pricing policy commits us to undertaking internal transactions using the arm’s-length principle.

Manulife has a global presence, operating in numerous countries around the world, each with its own taxation system and tax rates. Manulife complies with transfer pricing legislation and guidelines established by the countries in which we operate, along with OECD transfer pricing guidelines, to ensure that the arm’s-length principle is observed in pricing cross-border transactions between Manulife entities. Also, in accordance with the OECD’s Base Erosion and Profit Shifting initiative (BEPS) to enhance tax transparency, Manulife produces country-by-country reporting on our global operations to facilitate the audit work of tax authorities around the world.

Information risk is a top enterprise risk management priority, similar to financial or credit risk. We seek to protect our data, that of our customers, and the information systems that process, transmit, and store that data. Global, local, and cross-functional teams work collaboratively to reasonably ensure a cohesive, effective, and efficient program for protecting all forms of information under Manulife’s control. 

Information and Cyber Security Governance

The Manulife Chief Information Risk Officer oversees our enterprise-wide Information Risk Management program, and the Manulife Chief Information Security Officer, who reports to the Chief Information Risk Officer, oversees our enterprise-wide Information Security Management program. These programs establish the company’s information and cybersecurity framework, governance, policies, standards, and appropriate controls required to protect our information and computer systems.

On at least a quarterly basis, the Manulife Chief Information Risk Officer speaks to the Board Risk Committee to cover recent notable events, audit results, the overall ongoing effectiveness of information and cybersecurity controls, operations, and opportunities for improvement and maturity, among other items.

Manulife employees participate in mandatory annual security and privacy training to ensure our workforce is knowledgeable about their responsibilities to protect company and customer information. They can access related policies, standards, and procedures at any time through a centralized website, and global communication campaigns about protecting information are conducted quarterly, highlighting information protection topics and delivering simple, action-oriented messages. Phishing campaigns are run annually with simulated phishing email messages to educate employees on how to recognize and address suspicious emails.

There are several ways Manulife colleagues can escalate suspicious communications, events and incidents, including privacy, fraud, ethical, security, and operational matters. Depending on the incident type, colleagues may be encouraged to report the matter directly to their manager or a senior executive. In other cases, colleagues are encouraged to report directly to a confidential hotline or designated departmental inbox. In all cases, if a colleague is unsure where to start, Manulife has a central global platform where any potential or actual issue can be escalated via a web form, email, or phone call with assurance that the matter will go through a timely triage review and forwarded to the appropriate team for further analysis and action.

Data Privacy

We have a global framework for managing the Company’s privacy risk, which is overseen by our Global Chief Privacy Officer, who is accountable to the Global Compliance Chief. The framework is anchored by our Global Privacy Risk Management Policy and designed to:

• Help ensure compliance with legal and regulatory requirements governing the protection of personal information in all the jurisdictions in which we operate, while also promoting consistency in personal information handling practices throughout the Company.

• Maintain and foster customer and employee trust.

• Minimize the occurrence and impact of privacy-related incidents.
  
  

Our framework establishes standards for: 

• Ensuring applicable privacy legislation and regulations are understood and requirements reflected in applicable business processes, controls, and disclosures. 

• Identifying and managing privacy-related risks, including those that may be introduced by new or changed initiatives. 

• Collecting and handling personal information, including limiting collection and ensuring it is carried out in fair and legal ways. 

• Handling requests from individuals, including privacy-related complaints, concerns, and consent withdrawals. 

• Privacy incident management, including root cause analysis and corrective actions. 

• Sharing personal information with third parties, requiring them to comply with our internal framework through privacy and security clauses within contracts. 

• Safeguarding personal information. 

• Monitoring compliance with the framework. 

• Reporting, managing, and escalating all privacy-related complaints to appropriate levels within the company. 

• Privacy and data security training for all employees, including part-time and contractors. 

The Global Privacy Policy outlines Manulife's fundamental privacy requirements applicable to all businesses and operations world-wide. In many of the countries in which we do business the Global Privacy Policy is supplemented by more detailed privacy policies that reflect the requirements of those countries. Our Global Privacy Policy and our internal-facing corporate privacy policy follow the Generally Accepted Privacy Principles (GAPP). Specifically: 

As a provider of financial products and services, we collect and use our customers’ personal information through the normal course of our business. When Manulife shares personal information within the Manulife group of companies for the purposes of providing customers with product and service offerings, customers may opt-out of receiving those offers. Other opt-out options may be available to certain customers depending on their product(s) and/or location. Our customers trust that we will safeguard the privacy of the information in our care, and we take this responsibility very seriously. When we share personal information with our service providers it is for specific purposes only. Service providers who collect, use, process, maintain, transfer, and / or destroy personal information on Manulife's behalf must comply with applicable privacy laws and non-disclosure agreements, have adequate privacy safeguards in place, and must only use the information for the purpose(s) provided for in a contractual agreement. We have contractual agreements in place requiring our service providers to protect and handle personal information on our behalf in ways that are consistent with our privacy policies and practices. This is aligned with the OECD’s Accountability Principle. Service providers are also obligated to report any privacy incidents and issues to us within specified timeframes. 

Details given to customers about how we handle their personal information include:

• The nature of information collected, the specific purposes for its collection, and how it is collected

• How the collected information is used

• Any options they may have for deciding how their personal information is collected, used, retained, and processed

• How long the information is retained

• Safeguards required to protect the information

• Sharing of personal information with service providers

• How to contact us if they have questions, concerns, or require access to their personal information

For more information, visit Privacy Policy | Manulife

Our executive compensation program focuses named executives on achieving long-term sustainable growth and on creating significant value for our shareholders and customers. It is designed to attract and retain high caliber executive talent capable of achieving our ambitious goals and contributing to our competitive advantage.

Our approach is centered on pay for performance, and supported by five principles that guide our program design, compensation decisions and administrative practices.

Executive compensation is linked to strong risk-managed performance. Most of what our executives earn is variable, tied to performance and not guaranteed. In practice, executives ultimately receive more when performance is strong and earn less when performance is mixed.

Detailed information on our executive compensation approach is available in our 2024 Management Information Circular. 

Managing conduct risk is central to our values of Obsessing about Customers and Doing the Right Thing. Our values underpin our commitment to treating customers fairly and ensuring positive customer interactions. We are focused on the responsibility we have to customers – as a leading international financial services provider, helping people make their decisions easier and lives better, we aim to meet the needs of our customers while supporting the needs of future generations.

We constantly develop our practices and processes to deliver fair treatment for our customers. These include strong protection of private information, plain language communication with customers, responsive customer service and complaint handling processes. We ensure our products are clearly explained and honestly marketed so our customers can make informed decisions and choose products and services that are most beneficial to them.

We actively participate in industry dialogue with regulators and industry associations to provide feedback on potential regulations and learn more about regulatory expectations. This enables us to be at the forefront of best practices that our business should follow in all phases of the product and service cycle, including those regarding the fair treatment of customers.

For more information, refer to our Conduct Risk Framework Policy Statement. 

Policy dialogue and participation improves our ability to understand and address critical issues, and to make strategic decisions that benefit our stakeholders. Public policy discussions can also be directly relevant to the evolving legislative and regulatory requirements under which Manulife and our financial services products are governed.

For additional information, refer to Manulife's 2024 Political Activities and Contributions Report.