EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...

 
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
EMBEDDING
SUSTAINABILITY
IN OUR BUSINESS
2018 Real Estate Sustainability Report
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
TABLE OF
CONTENTS

Letter from the CEO............................................................................................................ 4
Sustainability Highlights...................................................................................................... 5
Sustainability Objectives...................................................................................................... 6
Responsible Property Investment......................................................................................... 7
Sustainability Vision and Commitments............................................................................... 8
Sustainable Building Standards............................................................................................ 9

   MINIMIZE
MINIMIZE     OUR ENVIRONMENTAL
         OUR ENVIRONMENTAL      IMPACT
                           FOOTPRINT
     Environmental Performance......................................................................................... 10
     Green Building Certification........................................................................................ 12
     Clean Economy........................................................................................................... 13

   SUPPORT
SUPPORT    HEALTH
        HEALTH AND AND WELLNESS
                   WELLNESS
     Health and Wellness.................................................................................................... 14

   ENGAGE
ENGAGE OUROUR STAKEHOLDERS
          STAKEHOLDERS
     Employee Engagement................................................................................................ 15
     Tenant Engagement.................................................................................................... 16
     Community Engagement............................................................................................. 17

   PROMOTE
PROMOTE     RESPONSIBLE
        RESPONSIBLE       BUSINESS
                    BUSINESS       PRACTICES
                             PRACTICES
     Working with Partners, Suppliers and Industry............................................................. 18

   BE ACCOUNTABLE
BE ACCOUNTABLE     FOR PERFORMANCE
               FOR OUR OUR PERFORMANCE

     Sustainability Governance and Reporting..................................................................... 19

About Manulife Real Estate............................................................................................... 20
About this Report............................................................................................................. 21
Important Information...................................................................................................... 23
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
A LETTER FROM THE CEO

                Creating value for                                We maintain our position among industry
                                                                  leaders, with all of our funds achieving
                our stakeholders for                              Green Star ranking in the 2017 Global Real
                sustainable leadership                            Estate Sustainability Benchmark (GRESB)
                                                                  assessment.
                At Manulife Real Estate, sustainability in
                                                                  In 2017, we developed our Sustainable
                the form of environmental, social and
                                                                  Building Standards. This global program
                governance (ESG) management is part
                                                                  advances sustainability practices in thirteen
                of our business. Our buildings form a
                                                                  areas. We renewed environmental targets in
                community for tenants, employees, visitors
                                                                  2017, re-setting our goals for the next five
                and local organizations. Sustainability helps
                                                                  years. We also embedded sustainability into
                us deliver high-quality services, create places
                                                                  employee objectives, leasing and third-party
                where people thrive and minimize our
                                                                  manager contracts. Key sustainability out-
                environmental impact. Sustainability also
                                                                  comes in 2017 included training more than
                helps us manage risks and opportunities
                                                                  200 employees on sustainability, certifying
                from changing market and societal trends,
                                                                  more than 12.5 million square feet to green
                technology and regulation. This provides
                                                                  building standards and reducing energy
                value to our fund investors and shareholders.
                                                                  consumption by 4%.
                Effective sustainability management requires
                integration in all parts of our business, from    In this report, we invite you to learn more
                investments and developments to operations        about our sustainability management
                and asset management. Our program is              approach, our 2017 results and how sustain-
                overseen by our Executive Sustainability          ability provides value to our stakeholders.
                Steering Committee, which sets annual
                objectives and reports on our progress.           Sincerely,
                Sustainability is not a new idea at
                Manulife. We have a long track record of
                sustainability management. For example,
                we have measured our energy consumption           Kevin Adolphe,
                and greenhouse gas emissions since 2005.          President and CEO, Manulife Real Estate

                                      4
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
SUSTAINABILITY
HIGHLIGHTS

2017 PERFORMANCE
HIGHLIGHTS
In 2017, we made progress on our five Sustainable Real Estate Policy commitments.

          MINIMIZE OUR ENVIRONMENTAL IMPACT1

9% increase in                                                                      7% renewable                                    6% decrease in
waste diversion                                                                     electricity purchased                           water use
Achieved a 52% waste diversion rate in 2017.                                        Purchased 42,000 MWh of renewable energy.       138,000 m3 water savings in 2017.
                                                                                                                                    The equivalent to water needed to fill
                                                                                                                                    55 Olympic-sized swimming pools.

4% decrease                                                                         4% decrease in                                  41.2 million square
in energy use                                                                       GHG emissions                                   feet certified green
29,000 MWh energy savings in 2017.                                                  Reduced greenhouse gas (GHG) emissions          An increase of 12.5 M SF in 2017.
The equivalent to the energy used by                                                by 5,500 tCO2e. The equivalent to removing
approximately 1,000 Canadian homes.                                                 1,200 cars off the road.

         SUPPORT HEALTH AND WELLNESS                                                       PROMOTE RESPONSIBLE BUSINESS PRACTICES

2 Pilots                                                                            Working Group
Launched two health and                                                             Established a renewable energy working group.
wellness certification pilots.

         ENGAGE OUR STAKEHOLDERS                                                          BE ACCOUNTABLE FOR OUR PERFORMANCE

Published                                                                           5 Green Stars
Our inaugural sustainabiliy report.                                                 Achieved five GRESB2 Green Star rankings.

200+ Employees                                                                      Launched
Trained on sustainability.                                                          Sustainable Building Standards.

1. Reductions are for a like-for-like set of properties from our global portfolio
2. Global Real Estate Sustainability Benchmark

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EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
SUSTAINABILITY
OBJECTIVES

2017 PROGRESS
TOWARDS OBJECTIVES
We met or are on track for our 2017
sustainability objectives.

      Participation in GRESB for all our         Improve GRESB scores for all our funds      Provide sustainability training to operations,
      funds and the General Account (GA)         compared to their 2016 baseline             asset management and investments teams
      • All funds and the GA participated in     • All five received improved scores and     • Trained more than 200 employees
         the GRESB assessment                      earned Green Star ranking                   in sustainability

      Include sustainability information-        Set five-year targets for energy, water,    Integrate sustainability procedures into
      sharing clauses in new leases              waste and greenhouse gas emissions          new third-party manager agreements
      • Integrated information sharing clauses   • Set 2022 portfolio targets for energy,    • Updated third-party management
         in our standard lease                     water, waste and a long-term greenhouse     agreements are almost final
                                                   gas emissions target

      Publish stand-alone real estate
                                                 Reduce energy consumption by 2%
      sustainability report
      • Published our first Real Estate          • Achieved a 4% energy reduction in 2017
         Sustainability Report

THE WAY FORWARD:                                           Surpass 60% certification                     Achieve level 1 or higher on
2018 SUSTAINABILITY                                        rate for the global                           all our Sustainable Building
OBJECTIVES                                                 portfolio (GA and funds)                      Standards at all properties
Our Executive Sustainability Steering Com-
mittee sets annual sustainability objectives,                                                            Meet 2% energy and 1.5%
                                                           Hire a dedicated
which focus our efforts and outlines key                                                                 water reduction targets for
                                                           sustainability director
milestones in our strategy. Here are our                                                                 the global portfolio
outlined objectives for 2018.

                                                           Develop a business plan for                   Integrate utility tracking and
                                                           tenant health and well-being                  environmental compliance
                                                           and offering clean energy                     into our central IT system for
                                                           to tenants                                    the global portfolio

                                                           Implement sustainability
                                                                                                         Complete renewable energy
                                                           clauses into the standard lease
                                                                                                         strategy for a portion of the
                                                           Apply for Green Lease                         global portfolio
                                                           Leader designation

                                                           Achieve Green Star ranking
                                                           for all GRESB submissions

                                                                     6
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
RESPONSIBLE
PROPERTY INVESTMENT

          DEVELOPMENT                          INVESTMENTS                       OPERATIONS                    ASSET MANAGEMENT                            LEASING

Real Estate Life Cycle

DEVELOPMENT                             INVESTMENTS                      OPERATIONS                            ASSET MANAGEMENT                    LEASING
• Integrate sustainability into         • Embed sustainability in        • Embed sustainability in             • Integrate sustainability into     • Enhance green leasing practices
   development practices                  investment and due diligence      operational procedures                budgeting and planning
• Apply third-party                       practices                         and standards                      • Ensure third-party managers
   certification standards              • Support investment teams       • Validate practices with                apply sustainability standards
• Partner with sustainability leaders     with in-house sustainability      third-party certifications         • Provide sustainability training
                                          expertise                      • Collaborate with stakeholders          to asset and fund managers
                                        • Provide investment team        • Provide sustainability training
                                          training on sustainability        to operations and property teams
                                                                         • Set targets for sustainability
                                                                            performance

In the real estate life                                        operating efficiencies through technology
                                                               and resource efficiency.
                                                                                                                        estate portfolio since 2005. Manulife Asset
                                                                                                                        Management, which includes Manulife Real
cycle, sustainability                                          In addition to contributing to prudent risk
                                                                                                                        Estate, has been a signatory to the Principles
makes business sense                                           management, sustainability creates shared
                                                                                                                        for Responsible Investment (PRI) since 2015.
                                                                                                                        We also participate in the Global Real
                                                               value for our many stakeholders. It supports
SUSTAINABILITY PROVIDES                                                                                                 Estate Sustainability Benchmark (GRESB)
                                                               the well-being of our employees, tenants,
VALUE TO OUR STAKEHOLDERS                                                                                               assessment and became a member in 2017.
                                                               the communities where we operate and the
At Manulife, we believe that systematically                    environment. Our customers and investors                 There are important ESG considerations at
reviewing sustainability factors when we in-                   recognize that sustainability is important,              all stages of the real estate life cycle. Before
vest allows us to manage longer-term risks.                    and we have committed to being a sustain-                we invest, our teams assess sustainability op-
Risks can include new regulations, changing                    ability leader.                                          portunities and risks. Once we own a build-
tenant expectations, and increasing resource                                                                            ing, sustainability considerations become
                                                               A LONG HISTORY OF
costs. A sustainability overlay allows us to                                                                            an integral component of operations, asset
                                                               SUSTAINABILITY INTEGRATION
get out in front of these to identify new                                                                               management and leasing. A key function of
revenue opportunities, such as health and                      We have tracked our energy consumption                   this report is to show how this happens and
wellness programming, and to increase                          and greenhouse gas emissions for our real                why it is important.

                                                                                         7
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
SUSTAINABILITY VISION
AND COMMITMENTS

                                                                                     Our Sustainability Vision
                                                                                     Our vision is to drive leadership in sustainable real estate
                                                                                     practices across our global organization. We seek to provide
                                                                                     healthy and efficient workplaces for our customers in
                                                                                     collaboration with our tenants and community partners,
                                                                                     while enhancing our long-term returns.

Real Estate Sustainability Integration Framework

Our sustainability                                 Our Sustainable Real Estate Policy outlines      investment practices, we list sustainability
leadership framework,                              our sustainability commitments and guides
                                                   sustainability practices in our organizational
                                                                                                    issues that must be considered in investment
                                                                                                    due diligence and include checklists to
from vision to reporting                           processes and property portfolios:               ensure nothing is overlooked. Training for
                                                                                                    investment team members includes use of
Our vision is to drive leadership in               •   Minimize our environmental impact
                                                                                                    tools and checklists.
sustainable real estate across our global
                                                   •   Support health and wellness
organization. In collaboration with our                                                             We validate practices and performance
tenants and community partners, we seek            •   Engage our stakeholders                      through public reporting and industry
to provide healthy and efficient workplaces                                                         benchmarking initiatives. These inform our
                                                   •   Promote responsible business practices
for our customers while enhancing our                                                               stakeholders of our sustainability approach
long-term returns.                                 •   Be accountable for our performance           and results and help advance sustainability
                                                                                                    in our industry.
To achieve our vision, we have developed           For ease of reference, we have aligned
eight leadership strategies that are addressed     the report sections with these policy
in more detail throughout this report.             commitments.
One strategy, our Sustainable Building             Sustainability Practices include devel-
Standards program, was rolled out in 2017          opments, investments, operations and
and is described in detail on the next page.       asset management. For example, under

Sustainability Leadership Strategies

                                                        Sustainable building standards                 Centre of sustainability expertise
                Renewed
              ESG Leadership
                                                                              ESG performance management system

                                                    Internal and external communications             Employee awareness and education
               Sustainability
              Brand & Culture
                                                                                 Corporate sustainability culture

                                                                                       Health and wellness
               Differentiated
                 Offerings
                                                                                           Clean energy

                                                                          8
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
SUSTAINABLE
BUILDING STANDARDS
    STANDARDS                                                    LEVELS
        MINIMIZE OUR ENVIRONMENTAL IMPACT                        1     2     3     4    5
    1. Energy management and assessments
    2. Energy measurement and analysis
    3. Water management and assessments
    4. Waste management
    5. Alternative transportation

        SUPPORT HEALTH AND WELLNESS

    6. Indoor environmental quality
                                                                                                   All properties are committed to
    7. Health and wellness programming                                                             establishing a Sustainable Building
                                                                                                   Standards scorecard baseline in 2018
        PROMOTE RESPONSIBLE BUSINESS PRACTICES                                                     with a minimum requirement of
                                                                                                   achieving level 1 for all standards.
    8. Procurement program and tracking

        ENGAGE OUR STAKEHOLDERS                                                                    BUILDING STANDARDS
                                                                                                   LEVEL DEFINITIONS
    9. Tenant engagement                                                                           Level 1
                                                                                                   Sustainability essentials, achievable
    10. Community engagement
                                                                                                   for all property types
    11. Employee engagement
                                                                                                   Level 3
                                                                                                   Strong sustainability practices, achievable
        BE ACCOUNTABLE FOR OUR PERFORMANCE
                                                                                                   for all office and residential properties
    12. Certifications and sustainability brand                                                    Level 5
                                                                                                   Sustainability leadership applicable
    13. Sustainability management
                                                                                                   to A-class offices

Sustainable Building                              The thirteen standards align with the          where tenants manage their own space.
Standards—key to                                  commitments in our Sustainable Real
                                                  Estate Policy, as well as with industry best
                                                                                                 Higher levels of tenant engagement (levels
                                                                                                 two through four) involve holding events
leadership                                        practices, including GRESB, LEED® and          and campaigns, such as e-waste drives, at
                                                  BOMA BEST®, to facilitate implementation,      the property. Achieving level five requires
In 2017, we rolled out our Sustainable Build-
                                                  certification and reporting.                   forming a tenant-landlord green team to
ing Standards, one of our eight sustainability
                                                                                                 work collaboratively to implement initiatives
leadership strategies. These standards apply      To achieve a consistent approach across
                                                                                                 at the property.
to practices in all areas of sustainability at    our portfolio, the standards are being
all properties, from energy management            rolled out to all properties including those   In 2018, all properties are expected to
to tenant engagement to health and                managed by external property managers.         achieve at least level one of each standard,
well-being. Their purpose is to:                  In 2017, we piloted the standards ahead of     and properties with strong sustainability
                                                  their rollout in November.                     practices are expected to achieve levels
•   Build a consistent sustainability
                                                                                                 four or five.
    experience for tenants, employees             Because sustainability expectations vary
    and visitors                                  among property types and regions, each         Throughout this report, we provide
                                                  standard has five levels. For example,         examples of how the Sustainable Building
•   Enable benchmarking of sustainability
                                                  Tenant Engagement level one involves           Standards are used to embed and improve
    performance and understanding of
                                                  communicating with tenants on sustain-         sustainability across our global portfolio.
    business outcomes
                                                  ability and providing tips to reduce their
•   Provide tools and resources                   environmental footprint. Any property can
    for property teams                            implement this, even industrial buildings

                                                                        9
EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
ENVIRONMENTAL                                                                                                                                                MINIMIZE OUR ENVIRONMENTAL IMPACT

PERFORMANCE
Focusing on operational                                                            5 Year Environmental Targets (2018 to 2022)

efficiency and technology
is paying off                                                                                             10% energy reduction by 2022
Buildings consume substantial amounts of
energy and water and the design, construc-
tion, and operation of buildings accounts                                                                  7.5% water reduction by 2022
for nearly 40% of greenhouse gas emissions,
globally.1 As building owners and managers,
we minimize our environmental footprint by                                                                 65% waste diversion rate by 2022
systematically investing in resource efficiency
and embedding conservation practices                                                     Note: energy and water targets are intensity based compared to a 2017 baseline

throughout our operations.
RESOURCE MANAGEMENT AT                                                             In 2018, we are implementing a new envi-                                       The rise in regional disclosure requirements
MANULIFE REAL ESTATE                                                               ronmental data management system to save                                       is increasing the importance of energy man-
                                                                                   property managers’ time, increase efficiency                                   agement. Two of the Sustainable Building
Resource management is particularly
                                                                                   and improve data quality, so that we receive                                   Standards focus on energy management
important because it reduces operating
                                                                                   actionable information sooner.                                                 and measurement and include initiatives
costs, minimizes our environmental foot-
                                                                                                                                                                  to identify, track and improve energy
print, mitigates utility price increases and                                       ENERGY
                                                                                                                                                                  performance.
maximizes cost savings for our clients.
                                                                                   The energy footprint of our real estate port-
                                                                                                                                                                  WATER
Our building operations incorporate sustain-                                       folio is 828,000 equivalent megawatt hours
ability best practices, and our Engineering                                        (eMWh). When normalized for weather and                                        Water conservation is increasingly important
and Technical Services team provides                                               extreme energy users, our annual “like-for-                                    due to rising costs, regulations and lack
expert guidance to support and enhance                                             like” energy reduction was 4%, surpassing                                      of fresh water supply in some regions. In
operational efficiency.                                                            our target of 2%.                                                              California, for example, access to fresh
                                                                                                                                                                  water is a material sustainability issue.
Our external utility manager tracks,
                                                                                           2016-2017 Energy Use and Intensity
analyzes and reports on energy, water and                                                                                                                         We embed water conservation into
waste performance to identify conservation                                                     20.0                                   19.2                        operations and introduce technology to
opportunities and support decision-making.                                                                                                                        minimize consumption. For example, our
We also work with our tenants to collect                                                                                           114,000                        office property at 3161 Michelson in Irvine,
data and deepen our understanding of                                                                                                                              California employs an innovative water
building performance. In 2017, we increased                                                                                                                       reuse system that uses reclaimed grey water
our energy data coverage to 96% for                                                                                                                               for use in restrooms, irrigation and cooling
properties where Manulife or third-party                                                                                                                          towers. In 2017, the result was a reduction
managers pay utilities.                                                                                                                                           estimated at nearly 27,000 m3, equivalent
                                                                                            736,000                                714,000                        to almost half of the building’s total water
In 2017, we set new five-year energy, water
                                                                                              2016                                   2017                         consumption.
and waste targets for our global portfolio.                                           Energy use from properties added to mgmt. system (kWh)
We believe targets encourage asset and                                                Energy use from “like-for-like” portfolio (kWh)                                           2016-2017 Water Use and Intensity
property managers to manage sustainability                                            Normalized energy use intensity (ekWh/sf/year)                                                65
                                                                                                                                                                                                                          61
as a business issue, identify cost-saving
opportunities and help reduce our environ-
                                                                                   Across all managed office buildings, our                                                                                        549,000
mental footprint.
                                                                                   normalized energy use intensity decreased
Four of the Sustainable Building Standards                                         4% to 19.2 ekWh per square foot (sf). This
directly target energy, water and waste                                            is lower than both the U.S. and Canadian
management. Meeting low-level standards                                            benchmarks for office buildings (22.8 and
requires basic tenant communication and                                            25.5 ekWh/sf, respectively).
identification of conservation opportunities.                                                                                                                                  2,279,000                          2,122,000
                                                                                   Through good operational practices and
Higher levels require sub-metering,                                                                                                                                               2016                               2017
                                                                                   investing in innovative technology like
recommissioning and organic and e-waste                                                                                                                                   Water use from properties added to mgmt. system (m3)
                                                                                   advanced metering and diagnostic systems,
recycling streams.                                                                                                                                                        Water use from “like-for-like” portfolio (m3)
                                                                                   we are confident that we can deliver on our                                            Normalized water use intensity (L/sf)
1. Source: National Institute of Building Science, 2016. (Brian Theordor, E.I.T)
https://www.wbdg.org/resources/greenhouse-gas-emissions-federal-buildings          five-year, 10% energy reduction target.

                                                                                                                    10
In 2017, our total water consumption was                              This increase in reporting led to an increase                                      2016, thanks to a fuller, more comprehensive
2,700,000 m3. We increased our water data                             in total waste accounted for.                                                      energy reporting. Comparing our “like-for-
coverage to 92% in 2017. The normalized                                                                                                                  like” portfolio, we decreased total emissions
                                                                      In 2017, our “like-for-like” portfolio
water use intensity across all properties                                                                                                                by 4%.
                                                                      decreased waste sent to landfill by 300
decreased 4% to 63 L/sf, lower than the
                                                                      tonnes. In total, our portfolio’s diversion rate                                   Improving carbon productivity in already
Canadian and U.S. averages of 91 and 81
                                                                      increased from 44% to 52%.                                                         efficient buildings is challenging. We con-
L/sf, respectively. Comparing the weather
                                                                                                                                                         tinue to assess new opportunities to drive
normalized “like-for-like” portfolio, we                              Looking forward, we will continue to
                                                                                                                                                         performance, pilot innovative technologies
reduced water consumption 142,000 m3 in                               monitor waste streams and volumes, provide
                                                                                                                                                         and install and purchase renewable energy
2017, enough water to fill 55 Olympic-sized                           recycling options and encourage tenants
                                                                                                                                                         to reduce GHG emissions.
swimming pools.                                                       to support and align with our efforts to
                                                                      encourage recycling and waste reduction.
For many organizations, given that water is
relatively inexpensive, the biggest challenge                         The Waste Management standard includes
in reducing water consumption is the related                          initiatives such as waste audits, occupant
return on capital. In 2018, we will assess                            education and e-waste campaigns.
water use technologies as buildings are
                                                                      GREENHOUSE GAS EMISSIONS
retrofitted.
                                                                      Nearly 40% of global GHG emissions are
The Water Management and Assessment
                                                                      attributed to the design, construction, and
standards include developing a water
                                                                      operation of buildings.2 That means they
management plan, conducting audits and
                                                                      also offer substantial reduction potential
implementing sub-metering.
                                                                      through operational excellence and using
WASTE                                                                 alternative sources of energy.
Building operations and occupant
                                                                      2016-2017 Greenhouse Gas Emissions and Intensity
behaviours generate significant amounts                                                                                                                      CASE STUDY
                                                                                        4.9                                      4.9
of waste. Many tenants think of our waste
handling practices as an indication of our                                                                                     2,600                         York Mills Centre
sustainability performance. In our most                                             20,000
                                                                                                                              21,000
                                                                                                                              20,600
                                                                                                                                                             recommissioning
recent satisfaction survey, tenants ranked
                                                                                                                                                             Many of our operations teams are
recycling programs as the most-demanded
                                                                                                                                                             achieving significant energy and water
sustainability service. Generating less waste
                                                                                                                                                             savings. The team at York Mills Centre,
minimizes costs and limits the impact on
                                                                                                                                                             a LEED Gold certified building in
landfills, greenhouse gas emissions and
                                                                                   123,000                                   116,900                         Toronto, manages numerous energy,
other environmental impacts.
                                                                                      2016                                                                   waste and tenant initiatives. As part
                                                                                                                                2017
Accessing accurate waste data, however,                                    Scope 1 emissions from properties added to mgmt. system (tCO2e)
                                                                                                                                                             of a $16 million revitalization project,
is a challenge. In some regions, haulers do                                Scope 2 emissions from properties added to mgmt. system (tCO2e)                   York Mills Centre embarked on ongoing
not provide waste information and it is hard                               Scope 1 emissions from “like-for-like” portfolio (tCO2e)                          recommissioning, as well as HVAC and
to improve performance without access to                                   Scope 2 emissions from “like-for-like” portfolio (tCO2e)                          boiler improvements. The result has
                                                                           GHG intensity (kgCO2e/sf)
better data. In 2017, property managers’                                                                                                                     been a 25% decrease in energy use
efforts increased collection of accurate and                                                                                                                 since 2014, with another 19% drop
                                                                      Manulife Real Estate is committed to
comprehensive data, and our coverage for                                                                                                                     expected before 2020.
                                                                      reducing our contribution to climate change
waste reporting rose from 46% to 72%.
                                                                      by minimizing the GHG emissions from
                                                                      buildings. These derive mainly from the
  2016-2017 Waste/Recycling and Diversion Rate
                                                                      electricity we use to power buildings and
                                               52%                    from fuels used to heat spaces and water.
            44%                                                       Improving energy efficiency is currently the
                                              1,300                   most cost-effective way to reduce our GHG
                                              2,100                   footprint. To further reduce emissions, we
                                                                      also purchase renewable energy and pilot
                                                                      clean technologies. Initiatives we have
           4,600                              6,600
                                                                      implemented to advance toward a green,
                                                                      low-carbon economy are described on
           5,900                              5,600                   page 13.
           2016                                2017
                                                                      In 2017, our total GHG footprint was
   Recycled waste from properties added to mgmt. system (tonnes)
   Waste to landfill from properties added to mgmt. system (tonnes)
                                                                      161,000 metric tonnes of carbon dioxide
   Recycled waste from “like-for-like” portfolio (tonnes)             equivalent (tCO2e). This is an increase from
   Waste to landfill from “like-for-like” portfolio (tonnes)
                                                                      2. Source: National Institute of Building Science, 2016. (Brian Theordor, E.I.T)
   Waste diversion rate (%)                                           https://www.wbdg.org/resources/greenhouse-gas-emissions-federal-buildings

                                                                                                             11
GREEN BUILDING CERTIFICATION                                                                                                          MINIMIZE OUR ENVIRONMENTAL IMPACT

Green building                                    We will continue to certify buildings through
                                                  this program as they meet the relevant level
                                                                                                                                            overall portfolio. We expect more buildings
                                                                                                                                            to be certified through the BOMA BEST® and
certifications validate                           one Sustainable Building Standards, which                                                 LEED® programs. In addition, ENERGY STAR
our practices                                     align with the BOMA BEST® requirements.                                                   certification is now available in Canada and
                                                                                                                                            we will consider using it for buildings not
                                                  In 2018, we plan to expand the certification
Green building certification is a critical                                                                                                  suitable for LEED® or BOMA BEST®.
                                                  program to surpass our 2018 objective of
component of our sustainability program,
                                                  60% green building certification for the
and the focus of one Sustainable Building
Standard. Certifications assure tenants
                                                  Manulife green building certifications as of December 31, 2017
and stakeholders of a minimum building
performance standard. Studies have shown              Square feet certified (at least 1 certification)                                                                                   41.2 M SF*
that certifications not only demonstrate
best-in-class sustainability management,              Percentage of global portfolio                                                                                                            60%
but provide economic value through
higher rents, lower vacancy and improved
environmental performance.
                                                                      14.8 M SF1                                                   26.2 M SF1                                     10.3 M SF1
                                                                        LEED® certified                                            BOMA BEST™ certified                           ENERGY STAR certified

Most large commercial tenants expect              *
                                                      Totals from different certification standards do not sum as properties with multiple certifications are only counted once
certification. Our certified spaces increase      1
                                                      Square footage for certifications based on gross floor area (GFA)

tenant satisfaction and productivity, reduce
facility costs and demonstrate the tenant’s
own sustainability commitment.                                                                            CASE STUDY
Manulife certifies to many standards, de-                                                                 Creating sustainable
pending on the market, such as Leadership
in Energy and Environmental Design (LEED®),
                                                                                                          places at 707 Fifth Avenue
Building Owners and Managers Association                                                                  707 Fifth Avenue is Manulife’s new 27-storey “AAA” LEED
BOMA BEST® and the ENERGY STAR™                                                                           Gold certified office tower located in the downtown core
certification program. As of 2017, 60% of                                                                 of Calgary. The building’s innovative design is not only
our portfolio is green building certified, an                                                             beautiful and resource efficient, but provides easier access,
impressive 18% increase from 2016.                                                                        linking directly to Calgary’s +15 Skyway network and
                                                                                                          LRT plaza and offering bicycle parking and change room
In 2017, we began using the BOMA BEST®
                                                                                                          facilities. Its indoor, landscaped winter garden provides a
Portfolio Program in our industrial and office
                                                                                                          sense of outdoors even on the coldest days of winter.
portfolio. After an initial pilot, we certified
7 million square feet through BOMA BEST®.
                                                                                            12
CLEAN ECONOMY                                                                                 MINIMIZE OUR ENVIRONMENTAL IMPACT

Building for a                                  opportunities to install more. We also pur-     At many of our properties, we assist
clean economy                                   chase renewable energy credits across North
                                                America to offset our own emissions and
                                                                                                utility companies to manage peak electricity
                                                                                                demand. At 3161 Michelson in Irvine, Cali-
Climate change impacts our business and         encourage the development of clean energy.      fornia, we installed Powerpack, Tesla’s 1 MW
the communities in which we operate, caus-      In 2017, we purchased more than 42,000          energy storage system. We plan to install
ing increases in both costs and regulations.    MWh of renewable energy credits, almost         similar systems at two buildings in Boston,
Our climate change mitigation efforts help      7% of our total electricity consumption.        Massachusetts.
future-proof our portfolio against rising op-
                                                We collaborate with teams across Manulife       We continue to support our tenants and
erational costs, regulation, carbon taxation,
                                                that invest in clean energy technology          visitors’ efforts to transition towards a clean
flood risks and supply chain disruption.
                                                and development projects on behalf of its       economy. Many properties have secure
Manulife Real Estate does this primarily        life insurance policy holders. In 2017, we      bicycle storage and shower facilities. We
through energy and water efficiency             established in our real estate operations a     have installed almost 200 electric vehicle
improvements and associated reductions          Renewable Energy Working Group to find          (EV) charging stations and plan to add more.
in greenhouse gases. In addition, we have       opportunities to use more clean power           These charging stations not only support a
photovoltaic solar panels on one of our         from renewable energy projects that the         cleaner economy, they accommodate
building’s rooftop, and continuously look for   group finances.                                 tenant expectations.

                                                CASE STUDY
                                                Renewable Energy Working Group
                                                Many companies, including many Manulife tenants, are making major renewable energy
                                                commitments, such as joining RE100, a group of companies pledging to use 100%
                                                renewable electricity. Manulife’s Renewable Energy Working Group was established to
                                                advance clean economy practices and facilitate collaboration among different Manulife
                                                business units. It consists of members from Real Estate, Project Finance and Regional
                                                Power, Manulife’s renewable energy developer.

                                                                     13
HEALTH AND WELLNESS                                                                                                                  SUPPORT HEALTH AND WELLNESS

                                                                                An integral part of our                          We also integrate wellness into new
                                                                                                                                 developments by specifying natural lighting,
                                                                                company vision                                   indoor climate control, and social or outdoor
                                                                                                                                 spaces in building designs.
                                                                                As a progressive real estate owner, helping
                                                                                our tenants live better lives is a key part of   INVESTING IN WELLNESS
                                                                                our sustainability vision and is ingrained in    CERTIFICATIONS
                                                                                our business. North Americans on average
                                                                                                                                 Wellness certifications are an emerging real
                                                                                spend almost 90% of their time indoors,3
                                                                                                                                 estate trend. They validate property wellness
                                                                                so the indoor environment and building
                                                                                                                                 features and practices through an inde-
                                                                                design have major impacts on their health.
                                                                                                                                 pendent standard. Manulife Tower in Hong
                                                                                PROVIDES TENANT VALUE                            Kong has applied for WELL® certification and
                                                                                                                                 our corporate real estate teams are piloting
CASE STUDY                                                                      Wellness is good for everyone’s business.
                                                                                                                                 Fitwel benchmarking and certification at
Maison Manuvie                                                                  Chronic disease, work-related injuries,
                                                                                stress and disengagement cost businesses
                                                                                                                                 four of our properties in Canada, the U.S.
                                                                                                                                 and Asia. Lessons learned there will inform
We prioritized health and wellness                                              $2.2 trillion per year in the United States
                                                                                                                                 future standards and programming in our
when we designed our new office in                                              alone.4 Research shows that building
                                                                                                                                 investment portfolios.
Montreal, Quebec. Built to LEED Gold                                            wellness features and programs improve
standards, floor-to-ceiling windows and                                         employee productivity, engagement and            WELLNESS MATTERS FOR EMPLOYEES
open floor plans maximize natural light.                                        satisfaction, as well as reducing absenteeism
                                                                                                                                 Manulife is committed to providing em-
Active design promotes the use of stairs                                        and health care costs.
                                                                                                                                 ployee programs and benefits that promote
over escalators. In our office space,
                                                                                Two of our Sustainable Building Standards        physical, emotional, social and financial safe-
adjustable-height desks are standard
                                                                                focus on health and wellness. The Indoor         ty and well-being, as outlined in our Health
and select workstations have treadmills,
                                                                                Environmental Quality standard addresses         and Well-Being in the Workplace Policy. Our
so that employees can walk while they
                                                                                air and water quality testing and green          corporate real estate team manages office
work. On-site bicycle storage, locker
                                                                                cleaning. The Health and Wellness standard       space for our employees worldwide. Our
and shower rooms are available to
                                                                                focuses on wellness programming and occu-        WorkSmart program provides employees
encourage active transportation.
                                                                                pant communications to encourage healthy         with more flexibility through mobile
                                                                                behaviours like good nutrition, taking the       office and remote working arrangements.
3. Source: Lawrence Berkeley National Laboratory (Neil E. Klepeis) 2001, "The   stairs and scheduling active work breaks.        Wellness features like natural lighting and
National Human Activity Pattern Survey (NHAPS): A Resource for Assessing
Exposure to Environmental Pollutants", https://www.buildinggreen.com/blog/      To achieve level five, we use the Fitwel®        adjustable-height desks are included in
we-spend-90-our-time-indoors-says-who
4. Source: Milken Institute, UC-Davis, EU-OSHA, Gallup, 2013, https://www.
                                                                                certification standard as a benchmark.           many WorkSmart fit-outs.
globalwellnesssummit.com/images/stories/gsws2015/pdf/Johnston-Yeung-Well-
nessAtWork.pdf

                                                                                                       14
EMPLOYEE ENGAGEMENT                                                                                       ENGAGE OUR STAKEHOLDERS

Building a high-                                 environment where employees can bring
                                                 their whole selves to work. Our Global Head
                                                                                                 posted the Sustainable Real Estate Policy and
                                                                                                 every property has nominated at least one
performance team                                 of Diversity and Inclusion oversees diversity   Green Champion. Green Champions form
and culture                                      programs, such as our employee resource
                                                 groups, and fosters a culture that respects
                                                                                                 a community of sustainability leaders who
                                                                                                 act as property sustainability experts and
We want to be an employer of choice.             and values difference.                          coordinators.
To attract and retain the best and brightest,
                                                 SUSTAINABILITY IS A PART
we focus on professional development,
                                                 OF EVERY EMPLOYEE’S JOB
wellness, diversity and inclusion. Providing
an outstanding employee experience               Our employees make our sustainability vision
supports exceptional customer service.           a reality. Engaging employees on sustain-
                                                 ability informs them of our commitments
All Manulife employees benefit from a struc-
                                                 and practices, builds a sense of purpose and
tured performance management program,
                                                 empowers them to build and share expertise.
including annual reviews, goal-setting and
professional development plans. Manulife         In 2017, our co-heads of real estate
provides a suite of learning programs and        shared our sustainability vision, policy and
courses to cultivate leadership skills. Topics   commitments with our employees globally.
range from effective strategizing, creative      All business unit leaders then reached out
thinking and problem-solving to coaching,        to employees with guidance and training
building and leading teams.                      programs specific to their functions.
Every two years we assess employee               All Operations and asset management
engagement, and in 2017 the response rate        employees, including the Global Head of
                                                                                                     CASE STUDY
was 89%. Based on this employee feedback,        Asset Management, have a sustainability
senior and regional leaders develop action       goal in their personal performance objec-           Employee
plans to improve the work environment,
tools and processes.
                                                 tives. This embeds sustainability as part of
                                                 everyone’s job.
                                                                                                     sustainability training
                                                                                                     In 2017, more than 200 Manulife Real
As a company, we invest in diversity and         Employee Engagement is one of our Sustain-
                                                                                                     Estate employees participated in sus-
inclusion. By embracing differences, we can      able Building Standards. All properties
                                                                                                     tainability training through live webinars
understand our customers better, incorpo-        have currently achieved levels one and
                                                                                                     on our online training platform. Par-
rate fresh ways of thinking and create an        two, which means all Manulife offices have
                                                                                                     ticipants enhanced their sustainability
2017 employee engagement statistics                                                                  knowledge and learned about Manulife
                                                                                                     Real Estate’s sustainability vision and
 Employees surveyed for engagement                                                      100%         commitments, including how and
                                                                                                     why we embed sustainability into our
 Employees response rate                                                                 89%
                                                                                                     investments, asset management and
 Employees trained on sustainability                                                       203       building operations.
 Manulife Real Estate Green Champions                                                       78

                                                                       15
TENANT ENGAGEMENT                                                                                         ENGAGE OUR STAKEHOLDERS

                      Our world
                      is making
                      plastic oceans.
                      Every minute, the equivalent
                      of a garbage truck of plastic
                      is dumped in our oceans.

                                                                                                      CASE STUDY
Building strong                                                                                       Chicago
relationships with                                    tenant sustainability fit-out guide. The
                                                      updated green standard lease will be rolled     Earth Week
our tenants                                           out in 2018. We hope the new lease and
                                                                                                      sustainability fairs
                                                      fit-out guide make information sharing
We aspire to provide our tenants with best-
                                                      and collaboration easier, and result in more    Our Chicago office portfolio
in-class services and high-quality, healthy,
                                                      efficient buildings and higher occupant         showcases leadership in tenant
sustainable work spaces. We continuously
                                                      satisfaction.                                   sustainability engagement. Teams
engage with our tenants to ensure high
                                                                                                      publish newsletters to inform tenants
customer satisfaction and long-lasting                Level one of the Tenant Engagement
                                                                                                      of upcoming events and provide tips
relationships. We believe sustainability and          standard is communicating sustainability
                                                                                                      to improve sustainability. In addition,
the sense of being part of a community are            objectives and tips, while intermediate
                                                                                                      buildings host green vendor fairs
important to our tenants’ businesses.                 levels involve hosting sustainability-themed
                                                                                                      during Earth Week, which showcase
                                                      events and campaigns. Level 5 requires
In our biannual tenant satisfaction surveys,                                                          how service providers like cleaners
                                                      forming tenant-landlord green teams
we assess our tenants’ attitudes and needs                                                            and waste haulers support the sus-
                                                      to work together in achieving mutual
related to a sustainable workspace and                                                                tainability program, and also educate
                                                      sustainability goals. The standard includes a
building, and then create action plans to                                                             tenants on environmental issues and
                                                      tenant sustainability toolkit, communication
address the results in our operations. In 2016,                                                       building sustainability features. Ten-
                                                      templates, posters and campaign materials.
we surveyed more than 1,000 tenants from                                                              ants have access to electronic waste
                                                      This enables properties to participate
almost half of our properties.                                                                        and used clothing recycling drop-offs.
                                                      in events such as Earth Week and hold
                                                                                                      Events like this get tenants involved
In 2017, we began to integrate sustainability         educational lobby events on topics such as
                                                                                                      and build a sense of community at
into our standard lease and revamped our              waste management.
                                                                                                      the properties.

                                                                           16
COMMUNITY ENGAGEMENT                                                                                  ENGAGE OUR STAKEHOLDERS

                                                                                                  CASE STUDY

                                                                                                  Supporting bees
We support our                                We play an important role in local commu-           and plants in our
local communities
                                              nities and economies. Our buildings provide
                                              space for community programming and
                                                                                                  communities
                                              fundraising for local organizations, and host       Honeybees are a vital part of the
Manulife is an active member of the
                                              blood donation drives and farmers’ markets.         ecosystem: 88% of plant fertilization
communities where we operate. We support
                                              In 2017, 66% of our office portfolio held at        depends on bees. In 2017, Manulife
local charities, community organizations
                                              least one community event.                          Real Estate partnered with Alvéole,
and non-profits. In 2017, Manulife donated
                                                                                                  an urban beekeeping company, and
$43.7 million to community partnerships and   Our Community Engagement standard pro-
                                                                                                  welcomed two hives at our Toronto
philanthropy. Manulife employee volunteer     vides resources to plan and host community
                                                                                                  head office and eight hives at four
programs increase our community impact        events including communications materials
                                                                                                  Montreal properties. Alvéole provides
and provide opportunities for employees to    and posters and a planning guide. In 2018,
                                                                                                  the hives, bees and beekeeping
give back at work. For example, MatchBoard,   we plan to introduce more opportunities for
                                                                                                  expertise, while Manulife provides
a joint initiative of Manulife and Capacity   our employees and tenants to partner and
                                                                                                  funding and a home on our rooftops.
Canada, trains and connects employees         support our local communities. We will also
                                                                                                  By hosting honeybees, we’re giving
with board-level opportunities at community   release a Sustainable Event Guide with tips
                                                                                                  them a chance to flourish, and sup-
non-profit organizations. In 2017, Manulife   on minimizing the environmental impact of
                                                                                                  porting food sources and biodiversity
employees volunteered 80,400 hours            events and maximizing their social benefits.
                                                                                                  in the communities we serve.
through corporate supported programs.

                                              CASE STUDY

                                              Blood donor clinic partnership
                                              Our partnership with Canadian Blood Services aligns our commitment to community with
                                              our focus on health. In 2017, we strengthened our commitment by becoming an official
                                              Give Life Partner with Canadian Blood Services, which made November its official Manulife
                                              Month. However, our commitment is year-round, and in 2017 our properties hosted more
                                              than 50 blood donation clinics across Canada.

                                                                   17
WORKING WITH PARTNERS,                                                                         PROMOTE RESPONSIBLE BUSINESS PRACTICES

SUPPLIERS AND INDUSTRY

Promoting sustainable                            procurement needs, engaging suppliers on
                                                 sustainable options, and increasing sustain-
and ethical business                             able procurement spending and impact.
practices                                        PROMOTING SUSTAINABILITY
                                                 IN OUR INDUSTRY
Achieving real impact company-wide
requires cooperation with our suppliers,         As a member of and a participant in
business partners and peers. As a signatory      the Global Real Estate Sustainability
to the Principles for Responsible Investment     Benchmark (GRESB), Manulife Real Estate
(PRI), we are committed to promoting             helps to advance sustainability in the real
responsible business practices within our in-    estate industry. GRESB advances industry
dustry. We work with suppliers and partners      knowledge, spreads best practices and
to manage risks and ensure that Manulife’s       promotes leadership.
                                                                                                       CASE STUDY
high ethical standards are adhered to.
Although we manage most of the buildings
                                                 We also play an active role in regional
                                                 industry initiatives. For example, we are part
                                                                                                       Employee industry
we own, we contract third-party managers         of A Better City, a group of Boston business          participation spotlight
at select properties, and incorporate sustain-   leaders that collaborate on sustainability.
                                                                                                       Stephen Smith, the Regional Managing
ability requirements in to their contracts.      In the Toronto region, we participate in the
                                                                                                       Director of Manulife’s Western Canada
                                                 Race to Reduce, an industry challenge that
We also encourage third-party managers to                                                              real estate portfolio, has experience
                                                 has collectively reduced energy use by more
adopt our Sustainable Building Standards,                                                              in developing corporate sustainability
                                                 than 12% in its first four years.
and to date have 49 third-party Green                                                                  programs and advancing sustainability at
Champions. While some third-party manag-         Many of our employees are members of                  the property level. He uses his experience
ers have internal sustainability programs and    sustainability organizations and promote              and influence to affect change in the
resources, others benefit significantly from     sustainability at events and conferences.             commercial real estate industry. He was
our program’s tools and resources.               In 2017, the head of our Engineering                  a member of the working group that
                                                 and Technical Services team spoke about               developed our Sustainable Building
At level one of our Sustainable Procurement
                                                 Manulife Real Estate’s sustainability program         Standards, and is Chair of the Canada
standard, all suppliers learn about Manulife’s
                                                 at two conferences.                                   Green Building Council board.
Vendor Code of Conduct. At higher levels,
the standard provides guidance on analyzing
                                                                       18
SUSTAINABILITY                                                                                BE ACCOUNTABLE FOR OUR PERFORMANCE

GOVERNANCE AND REPORTING

Drive continuous                                  Manulife Executive Sustainability
                                                                                               OUR REPORTING VALIDATES
                                                                                               OUR PRACTICES
                                                  Steering Committee
improvement through                                                                            To validate our practices, monitor progress,
sustainability manage-                          • Asset and Property Management
                                                                                               and support transparency and responsible
ment and transparency                           • Engineering and Technical Services           business practices, we report on our
                                                                                               sustainability management approach and
As a large, global organization with a          • Developments                                 performance.
track record of excellence, integrity and
                                                • Corporate Real Estate                        We report annually to the Global Real Estate
ethical business conduct, Manulife makes
                                                                                               Sustainability Benchmark (GRESB). We use
governance a priority. To learn more about      • Leasing                                      GRESB to evaluate our performance, identify
Manulife’s governance practices, visit our
                                                                                               gaps, inform decision-making and communi-
website: http://manulife.com/corporate-gov-     • Investments
                                                                                               cate to investors. In 2017, we improved our
ernance.
                                                • Marketing and Communications                 score and earned Green Star ranking for all
We apply the same high standards to man-                                                       five submissions.
aging sustainability. Manulife Real Estate’s    • Human Resources
                                                                                               As a signatory to the Principles for Respon-
sustainability governance structure spans       • Manulife Corporate Citizenship               sible Investment (PRI), we report annually on
our organization and links to corporate
                                                                                               our responsible investment practices.
operations. It addresses both regulatory       The Vice-President of Engineering and
obligations and voluntary commitments to       Technical Services acts as the Environmental    Manulife Real Estate also contributes to
sustainability.                                Officer for Manulife Real Estate, reporting     Manulife corporate reporting, including:
                                               to Manulife’s Enterprise Risk and Global
The Global Head of Real Estate Asset Man-                                                      •   Manulife’s Public Accountability
                                               Citizenship functions on matters related to
agement chairs our Executive Sustainability                                                        Statement
                                               environmental risks and impacts.
Steering Committee, which consists of
                                                                                               •   CDP (formerly the Carbon Disclosure
senior real estate representatives from key    Our Sustainable Real Estate Policy sets out
                                                                                                   Project) reporting
departments and regions. The Committee         our commitment to integrate sustainability
oversees progress toward achieving our         principles into our processes and property      •   Dow Jones Sustainability Index reporting
sustainability vision and ensures we meet      portfolio across the real estate life cycle,
our commitments and adhere to corporate        from development and investment to
policies and practices.                        operations and asset management.

                                                                     19
ABOUT MANULIFE REAL ESTATE

We own, develop and manage real estate
across the globe on behalf of our clients
and Manulife’s general account
ABOUT MANULIFE                                             ABOUT MANULIFE REAL ESTATE                                    REAL ESTATE
                                                           AND JOHN HANCOCK REAL ESTATE                                  PORTFOLIO INFORMATION
Manulife Real Estate is a business unit of
                                                                                                                         (As of Dec. 31, 2017)
Manulife Financial Corporation (Manulife),                 At Manulife Real Estate, we manage a port-
a leading international financial services                 folio of properties across North America and
group that helps people achieve their                      Asia with more than 62.5 million square feet                  C$21.9 B
dreams and aspirations by putting                          of floor space. Our expertise includes real                   Value of assets under management
customers’ needs first and providing the                   estate investment and development, asset
right advice and solutions. We operate as
John Hancock in the United States and as
                                                           management, property management and
                                                           leasing. Our assets include office, industrial,
                                                                                                                         62.5 M SF
                                                                                                                         Area in square feet
Manulife elsewhere. We provide financial                   residential and select retail properties.
advice, insurance, as well as wealth and
asset management solutions for individuals,                For more information on our sustainability program, please
                                                           visit: https://manuliferealestate.com/social-responsibility
                                                                                                                         420 Properties
groups and institutions. At the end of 2017,                                                                             Properties owned, operated and/or managed
we had approximately 34,000 employees,
73,000 agents and thousands of distribution
partners, serving more than 26 million
                                                                                                                         8 Countries
                                                                                                                         Including Canada, China, Japan,
customers.
                                                                                                                         Malaysia, Thailand, United States,
To learn more about Manulife and our commitment to
                                                                                                                         Vietnam and Singapore
social responsibility, environmental sustainability, and
excellence in business conduct and corporate governance,
visit our website (www.manulife.com) or read our Public
                                                                                                                         4 Property Types
Accountability Statement.                                                                                                Office, industrial, residential and select retail

                                                                                       20
ABOUT THIS REPORT

REPORT SCOPE AND BOUNDARIES

This report details sustainability practices and performance of all real estate
holdings owned or managed by Manulife Real Estate and John Hancock
Real Estate. This includes third-party real estate assets managed by us and
properties that are held in our life insurance investment portfolios. This also
includes properties we manage for investors in our real estate funds and the
Singapore based Manulife US REIT. Our approach to sustainability governance
and management is consistent across all portfolios, and our strategy and
programs apply to all properties we own or manage.
The content of this report was informed by the Global Real Estate Sustainability
Benchmark (GRESB) and references the Global Reporting Initiative Standards
summarized in the table below:

 STANDARD (2016)              DISCLOSURE                                             CONTENT APPLIED                                                PAGE
 102:   General Disclosures   102-1:    Name of the organization                     Name of the organization                                         20

                              102-2:    Activities, brands, products and services    Description of the organization’s activities                     20

                              102-3:    Location of headquarters                     Location of the organization’s headquarters                      24

                              102-4:    Location of operations                       Regions in which the organization operates                       20

                              102-7:    Scale of organization                        Total number of employees                                        20

                              102-14:   Statement from senior decision-maker         Statement from the senior decision-maker of the organization     4

                              102-50:   Reporting period                             Reporting period                                                 22

                              102-50:   Reporting cycle                              Reporting cycle                                                  22

 302:   Energy                302-1:    Energy consumption within the organization   Total energy consumption                                         10

                              302-3:    Energy intensity                             Energy intensity                                                 10

 303:   Water                 303-1:    Water withdrawal by source                   Total volume of water withdrawn by source                      10 - 11

 305:   Emissions             305-1:    Direct GHG emissions                         Gross direct GHG emissions (MtCO2e)                              11

                              305-2:    Energy indirect GHG emissions                Gross location-based energy indirect GHG emissions (MtCO2e)      11

                              305-4:    GHG emissions intensity                      GHG intensity ratio for organization                             11

 306:   Effluent and Waste    306-2:    Waste by type and disposal method            Total weight of waste
                                                                                     Indication of disposal method                                    11

                                                                             21
ABOUT THIS REPORT AND
ITS ALIGNMENT WITH
REPORTING STANDARDS
REPORTING CYCLE                                      REPORTING PERIOD

Annual                                               January 1, 2017 to December 31, 2017

DATA

Data coverage: Data coverage for performance         for weather and extraordinary usage in the 2017        Greenhouse gas emissions: Greenhouse gas
data is outlined where it is presented. If no data   reporting year.                                        emissions data includes all buildings with available
coverage is noted, data represents all Manulife                                                             data. Methodology for determining greenhouse
                                                     Average U.S. and Canadian energy intensities
Real Estate and John Hancock Real Estate owned.                                                             gas emissions is aligned with the CAN/CSA-ISO
                                                     derive from the U.S. Environmental Protection
                                                                                                            14064-1-06 and the WRI/WBCSD Greenhouse
Energy: Energy data includes electricity, natural    Agency, 2012 and the Real Property Association
                                                                                                            Gas Protocol standards.
gas, heating oil and steam consumption for           of Canada (REALpac), 2014. Average water inten-
base buildings, common areas and tenanted            sities derive from the DC Department of Energy
spaces. Energy use intensity has been adjusted       and Environment, 2012 and REALpac, 2012.

DEFINITIONS

BOMA BEST: Building Owners and Managers              Canada, Japan, New Zealand, Taiwan and the                   CI: Commercial Interiors. This rating pro-
Association Building Environmental Standards.        European Union have adopted the program.                     gram is applicable to tenant improvements
This Canadian certification program evaluates                                                                     of new or existing office space.
                                                     ekWh: Equivalent kilowatt hours. This metric is
properties based on energy, water, waste,
                                                     the standard unit of energy consumption used to              EB: O&M: Existing Buildings: Operations
greenhouse gas emissions, indoor environment
                                                     aggregate and compare different energy sources               and Maintenance. This rating program
and environmental management systems.
                                                     (e.g., natural gas to electricity).                          evaluates the sustainability of ongoing
CaGBC: The Canada Green Building Council. The                                                                     operations of existing commercial and
                                                     Greenhouse gas emissions: Gases that trap
CaGBC is a national not-for-profit organization                                                                   institutional buildings.
                                                     heat in the atmosphere, raising the average tem-
that has been working since 2002 to advance
                                                     perature of the planet. They are produced by fossil    L/sf: Litres per square foot
green building and sustainable community
                                                     fuel combustion and industrial, agricultural and
development practices in Canada.                                                                            PRI: The United Nations supported Principles for
                                                     waste management processes. They are measured
                                                                                                            Responsible Investment. This organization works
CDP: Formerly the Carbon Disclosure Project, the     in tonnes of carbon dioxide equivalent (tCO2e),
                                                                                                            to understand the investment implications of
CDP is an organization that works to disclose the    hence they are also known as carbon emissions.
                                                                                                            environmental, social and governance factors and
greenhouse gas emissions of major corporations.
                                                     GRESB: Global Real Estate Sustainability               to support its international network of investor
CDP’s climate change program collects informa-
                                                     Benchmark. This institutional investor-sponsored       signatories in incorporating these factors into their
tion on the risks and opportunities of climate and
                                                     assessment is the global standard for assessing the    investment and ownership decisions.
aims to drive companies to reduce companies’
                                                     sustainability performance of real estate compa-
greenhouse gas emissions and mitigate climate                                                               Scope 1 emissions: Direct greenhouse gas
                                                     nies and funds. In 2017, the assessment had 850
change risk.                                                                                                emissions from activities at company-owned
                                                     participants from 62 countries, representing $3.7
                                                                                                            properties, including combustion of natural gas
CO2e: Carbon dioxide equivalent. This metric         trillion in gross asset value.
                                                                                                            in boilers and furnaces, the use of gasoline in
converts different greenhouse gases with different
                                                     LEED: Leadership in Energy and Environmental           generators and vehicles and refrigerant losses.
global warming impacts into a standard measure
                                                     Design. This internationally recognized, third-party
of carbon dioxide so that their impact can be                                                               Scope 2 emissions: Greenhouse gas emissions
                                                     certification system rates a building’s site, water
compared. It is often displayed in metric tonnes                                                            from the generation of electricity, steam and
                                                     and energy efficiency, waste management,
(1,000 kilograms) or tCO2e. Greenhouse gas                                                                  chilled water purchased by the company.
                                                     material selection and indoor air quality. There are
emissions intensity is expressed in kgCO2e per
                                                     different certification programs:                      Scope 3 emissions: Greenhouse gas emissions
square foot.
                                                                                                            due to company operations from sources not
                                                            NC: New Construction. This rating program
ENERGY STAR™: An international standard                                                                     owned or controlled by the company, e.g., landfill
                                                            applies to new construction and major
for energy efficiency. It was created in 1992                                                               waste, water transportation and data centres.
                                                            renovations of commercial and institutional
by the U.S. Environmental Protection Agency
                                                            buildings.                                      Waste diversion rate: The percentage of total
and the Department of Energy to provide an
                                                                                                            waste that is diverted away from landfill disposal
energy performance rating system for commercial             CS: Core and Shell. This rating program is
                                                                                                            through recycling or composting.
building types. The ratings, on a scale from 1 to           a derivative of NC and applies to buildings
100, benchmark the energy efficiency of specific            where the owner controls 50% or less of
buildings against similar facilities. Australia,            the building area that will be built to NC
                                                            requirements.

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