Sun Life: Sun Life Financial : 2024 Sustainability Bond Use of Proceeds Report

Sun Life - 6 th Annual Sustainability Bond Use of Proceeds Report April 2025 Background As of December 31, 2024, Sun Life has two outstanding Sustainability Bonds ("the Sustainability Bonds"), which include the C$500 million Series 2023-1 Subordinated Unsecured 5.50% Fixed/Floating Debentures due 2035 (the "2023 Sustainability Bond") and the C$750 million Series 2024-1 Subordinated Unsecured 5.12% Fixed/Floating Debentures due 2036 (the "2024 Sustainability Bond"). Sun Life first adopted a Sustainability Bond Framework in 2019 (the "2019 Sustainability Bond Framework")1. In 2024, we updated our Sustainability Bond Framework (the "2024 Sustainability Bond Framework" and, together with the 2019 Sustainability Bond Framework, the "Sustainability Bond Frameworks")2 . The 2023 Sustainability Bond was issued under the 2019 Sustainability Bond Framework and the 2024 Sustainability Bond was issued under the 2024 Sustainability Bond Framework. As noted in the Sustainability Bond Frameworks, the Frameworks address the four core components of the ICMA Green Bond Principles, the ICMA Social Bond Principles and the ICMA Sustainability Bond Guidelines and their recommendations on the use of external reviews and impact reporting. We publish an annual use of proceeds report. This report is the sixth annual report. Allocation of Net Proceeds The charts below provide a breakdown of the allocated amount of net proceeds by eligible asset category, country and project type (new or existing)3 for the Sustainability Bonds4 . ‌1 Link to 2019 Sustainability Bond Framework: https://cdn.sunlife.com/static/Global/Investors/Sun_Life_Sustainability_Bond_Framework_March_2019_FINAL-s.pdf 2 Link to 2024 Sustainability Bond Framework: https://www.sunlife.com/content/dam/sunlife/regional/global-marketing/documents/com/sun-life-sustainability-bond-framework-2024-e.pdf ‌‌ 3 New projects are defined as those that were under development at the time of Sun Life's initial investment in the asset and existing projects are defined as those that were operational at the time of Sun Life's initial investment in the asset. ‌4 N umbers in this report may be impacted by rounding. 2023 Sustainability Bond Allocation to eligible # 1 asset categories as of December 31, 2024 12% Clean Transportation 11% Energy Efficiency 40% Access to Essential Services 16% Renewable Energy 22% Green Building 2 # Allocation by country as of December 31, 2024 5% Norway 33% United States 62% Canada Allocation to new/ # 3 existing projects as of December 31, 2024 33% Existing projects 67% New projects 2024 Sustainability Bond Allocation to eligible # 1 asset categories as of December 31, 2024 16% Access to Essential Services 11% Socioeconomic Advancement and Empowerment 9% Affordable Housing 5% Energy Efficiency 21% Green Building 37% Renewable Energy Allocation to new/ # 3 existing projects as of December 31, 2024 73% Existing projects 27% New projects For further information on the criteria for each category of Eligible Assets -including for the categories of Clean Transportation, Renewable Energy, Energy Efficiency and Green Buildings - please see the applicable Sustainability Bond Framework. External Review As part of selecting the Eligible Assets for the Sustainability Bonds issuances, the assets were reviewed by an independent external party5 to confirm that they met the eligibility criteria of the relevant frameworks. The scope of the review included verification and confirmation that: the selected assets met the criteria for Eligible Assets as set out in the applicable Sustainability Bond Framework, and Sun Life has reported on appropriate key performance indicators that aligned to the eligibility criteria for the relevant category of Eligible Assets, as set out in the applicable Sustainability Bond Framework. See Appendix A for the Methodology used to develop this report. ‌5 Morningstar Sustainalytics, a globally-recognized provider of ESG research, ratings and data, evaluated Sun Life's Sustainability Bond Frameworks and the alignment thereof with relevant industry standards and provided views on the robustness and credibility of the Frameworks. Sun Life's 6th Annual Sustainability Bond Use of Proceeds Report Review, whether in whole or in part, shall not be construed as part of the offering, and shall not be considered as an offer or advertisement to buy a security, solicitation of votes or proxies, investment advice, expert opinion or negative assurance letter as defined by the applicable legislation. Use of Proceeds The net proceeds of the Sustainability Bonds have been fully allocated to Eligible Assets as defined under the applicable Sustainability Bond Framework. There are no remaining unallocated proceeds6 7 . Sustainability Performance The tables below summarize the use of proceeds for the Sustainability Bonds. Based on Sun Life's general account's share of investment in the projects8 , we report expected impact metrics. Table 1: Use of Proceeds - 2023 Sustainability Bond Sun Life Sustainability Bond Category Number of Assets Value at December 31, 2024 (C$M) Expected Impact Metric9 Bond's Share of Impact Metrics Renewable Energy 3 $ 79 Renewable energy capacity installed (MW) 41 Energy Efficiency 1 $ 26 Annual energy savings (MMBtu) 12,64310 1 $ 27 Annual GHG emissions reduced or avoided (metric tonnes of CO ₂ e) 992 10 Green Buildings 2 $ 108 Green buildings certifications LEED Gold 10 BOMA BEST Platinum Clean Transportation 1 $ 61 Equivalent passenger vehicles off the road (expected vehicles/yr) 77 10 Access to Essential Services 2 $ 87 Available long term care beds 204 10 1 $ 14 Available shelter apartments 30 2 $ 98 Available shelter beds 227 10 Total 13 $ 500 ‌6 For some Eligible Assets, only a portion of Sun Life's total investment was included in the allocation. ‌7 Each year, we will review the assets that are supporting the Sustainability Bonds. As is a normal part of our business, fixed income investments may prepay sooner than expected. If this occurs, we will find an eligible substitute investment and report that change as part of the annual reporting of the Sustainability Bonds. ‌8 Sun Life's general account's share of investments in the project is based on our debt and equity investments deployed in the projects as a proportion of the projects' net book value or other measure where relevant. ‌9 There are not yet standardized and universal methodologies for calculating the impact of proceeds, and guidance and market practices in this area continue to evolve, particularly in respect of estimating avoided greenhouse gas (GHG) emissions. See the disclaimer below. ‌10 Projected metric for project that is in development or certification pending. Table 2: Use of Proceeds - 2024 Sustainability Bond Sun Life Sustainability Bond Category Number of Assets Value at December 31, 2024 (C$M) Expected Impact Metric 8 Bond's Share of Impact Metrics Renewable Energy 3 $ 277 Renewable energy capacity installed (MW) 199 Energy Efficiency 1 $ 40 Annual energy savings (Kwh) 1,946,925 10 Green Buildings 2 $ 160 Green buildings certifications LEED Gold Affordable Housing 1 $ 70 Number of individuals/families benefiting from subsidized housing 597 Access to Essential Services 1 $ 10 Available shelter beds 40 10 1 $ 25 Number of families supported at any one time in emergency shelter 21 10 3 $ 83 Available long term care beds 225 10 Socioeconomic Advancement and Empowerment 1 $ 85 Number of loans supporting equity ownership by indigenous communities 1 Total 13 $ 750 See Appendix B for lists of Eligible Assets supporting the Sustainability Bonds. Due to provisions in non-disclosure agreements typical for transactions completed in the private markets, we do not disclose the name of individual investments. Attachments Original document Permalink Disclaimer Sun Life Financial Inc. published this content on April 28, 2025 , and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT) , unedited and unaltered, on April 28, 2025 at 21:03 UTC . Sun Life - 6 th Annual Sustainability Bond Use of Proceeds Report April 2025 Background As of December 31, 2024, Sun Life has two outstanding Sustainability Bonds ("the Sustainability Bonds"), which include the C$500 million Series 2023-1 Subordinated Unsecured 5.50% Fixed/Floating Debentures due 2035 (the "2023 Sustainability Bond") and the C$750 million Series 2024-1 Subordinated Unsecured 5.12% Fixed/Floating Debentures due 2036 (the "2024 Sustainability Bond"). Sun Life first adopted a Sustainability Bond Framework in 2019 (the "2019 Sustainability Bond Framework")1. In 2024, we updated our Sustainability Bond Framework (the "2024 Sustainability Bond Framework" and, together with the 2019 Sustainability Bond Framework, the "Sustainability Bond Frameworks")2 . The 2023 Sustainability Bond was issued under the 2019 Sustainability Bond Framework and the 2024 Sustainability Bond was issued under the 2024 Sustainability Bond Framework. As noted in the Sustainability Bond Frameworks, the Frameworks address the four core components of the ICMA Green Bond Principles, the ICMA Social Bond Principles and the ICMA Sustainability Bond Guidelines and their recommendations on the use of external reviews and impact reporting. We publish an annual use of proceeds report. This report is the sixth annual report. Allocation of Net Proceeds The charts below provide a breakdown of the allocated amount of net proceeds by eligible asset category, country and project type (new or existing)3 for the Sustainability Bonds4 . ‌1 Link to 2019 Sustainability Bond Framework: https://cdn.sunlife.com/static/Global/Investors/Sun_Life_Sustainability_Bond_Framework_March_2019_FINAL-s.pdf 2 Link to 2024 Sustainability Bond Framework: https://www.sunlife.com/content/dam/sunlife/regional/global-marketing/documents/com/sun-life-sustainability-bond-framework-2024-e.pdf ‌‌ 3 New projects are defined as those that were under development