Sustainability Report – 2023 Performance
Table of contents
Sun Life is a leading international financial services company offering a broad range of protection and wealth products and services to individuals, businesses and institutions. Our countries of operation include
INTRODUCTION
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- About this report
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- Sun Life at a glance
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- 2023 sustainability highlights
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- Global context and megatrends
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- Message from our President and CEO
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- Q&A with our Chief Sustainability Officer
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- Sustainability at Sun Life
PROGRESS ON MATERIAL TOPICS
Increasing financial security
- Financial security
Fostering healthier lives
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- Client health
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- Employee wellness
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- Community wellness
Advancing sustainable investing
- Sustainable investing
Building resilience to climate change
- Climate change
Operating as a trusted and responsible business
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- Diversity, equity and inclusion
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- Client experience
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- Data security and privacy
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- Talent management
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- Risk management
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- Governance and ethics
APPENDICES
I: Stakeholder engagement and materiality
II: ESG performance tables
III: Recognition
Reporting Suite
The following resources complement our Sustainability Report:
Sustainability webpage
GRI IndexandSASB Index(PDF)
Sustainability Highlights(PDF)
Supporting the
Net Zero by 2050(PDF)
Annual Report(PDF)
Management Information Circular(PDF)
Visit ourData and Reportshub for more resources.
About this report
Every year, we publish our Sustainability Report to provide an update on the progress we've made globally on key sustainability topics.
Reporting Scope
This report presents the most relevant environmental, social and governance (ESG) issues and impacts of our activities during 2023. We determine the ESG issues of greatest importance to our business and our stakeholders through a periodic materiality assessment. Refer toStakeholder Engagement and Materialityfor more details. Reports from previous years are available on ourwebsite.
Reporting Frameworks
We have followed the
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•GRI Index
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•SASB Index
FORWARD-LOOKING STATEMENTS
Our Process
We strive to give an accurate and balanced account of our sustainability performance. To achieve this, several groups review the content of this report:
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• internal subject-matter experts;
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• senior management responsible for key sustainability-related activities;
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• members of our
Executive Sustainability & Climate Change Council ; -
• our internal Disclosure Committee; and
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• the
Governance, Investment & Sustainability Committee of our Board of Directors, prior to recommending to the Board approval of the report for publication.
We obtained external and independent limited assurance of our Scope 1, 2 and selected Scope 3 data for our 2023 greenhouse gas (GHG) emissions, and total operational emissions for our 2019 base year. Refer to theAssurance StatementandGHG Emissions Reporting Methodologyfor more information. We did not seek an external, independent review of our full report.
Reporting Boundaries
This Sustainability Report ("Report") is for
This Report reflects the data that is available to
Sun Life for each of the disclosed metrics. The default scope for disclosures in this Report reflects the following Sun Life business groups (collectively, the "
NOTE 1: Includes Vietnam
NOTE 2: Excludes SLC Management; includes
NOTE 3: Includes Vietnam, MFS,
NOTE 4: Includes Vietnam and
(
NOTE 5: Includes
NOTE 6: Excludes Asia (International) and SLC
Management; includes
NOTE 7: Includes MFS
NOTE 8: Includes MFS,
Certain statements made in this report are forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements contained in this report include statements (i) relating to our strategies, plans, targets, goals and priorities; (ii) relating to our ESG processes, social and governance-related objectives, sustainable investment commitments and net-zero greenhouse gas emissions reduction goals and targets, including our interim emissions reduction targets; (iii) relating to our intention to enhance our emissions measurements; (iv) relating to the development of our climate transition plan; (v) that are predictive in nature or that depend upon or refer to future events or conditions; and (vi) that include words such as "achieve", "aim", "ambition", "anticipate", "aspiration", "assumption", "believe", "could", "estimate", "expect", "goal", "initiatives", "intend", "may", "objective", "outlook", "plan", "project", "seek", "should", "strategy", "strive", "target", "will" and similar expressions. The forward-looking statements represent our current expectations, estimates and projections regarding future events and are not historical facts, and remain subject to change. These forward-looking statements are not a guarantee of future performance, involve inherent risks and uncertainties and are based on key factors and assumptions, all of which are difficult to predict. Future results may differ materially from those expressed in forward-looking statements. Our ability to achieve our net-zero GHG emissions reduction goals and targets is based on a number of assumptions and is subject to a number of factors beyond our control, including the availability of comprehensive, comparable and high-quality GHG emissions data, the need for active and continued participation of stakeholders (including enterprises, financial institutions and governmental and non-governmental organizations), the establishment and fulfilment of climate commitments and net-zero targets by governments and companies, the development and deployment of new technologies and industry-specific solutions including in hard-to-abate sectors, international cooperation, and the development of regulations internationally. The energy transition will not be linear and the pace of decarbonization for different sectors and countries will vary. We intend to review and potentially revise our emissions reduction goals and targets as appropriate, as data quality and methodologies improve and as best practices, regulations and climate science continue to evolve. This report may contain examples of our internal ESG research processes and is not intended to represent any particular product's or strategy's performance or how any particular product or strategy will be invested at any particular time. Other factors that may cause actual results to differ materially from those expressed in forward-looking statements include the matters set out in the Company's Annual Information Form for the year ended
Sun Life at a glance
A leading global financial services organization
Balanced & diversified business model6
41%Wealth & asset management32%Group - Health & Protection27%Individual - Protection
Includes
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1Rounded to the nearest million.
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2Rounded to the nearest hundred.
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3Represents full-time equivalent employees and includes 30,941 regular employees, 999 temporary employees and employees in
Asia joint ventures (25,775 regular employees and 530 temporary employees). -
4Refer toReport Scope - Note 4.
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5Represents a Non-IFRS financial measure; Refer to the Non-IFRS Financial Measures section in our MD&A for the period ended
December 31, 2023 . -
6Business Mix based on underlying net income, excluding Corporate expenses and other. Wealth & asset management includes
MFS Investment Management , SLC Management, Canada Individual Wealth, Group Retirement Services,Asia Wealth & Asset Management, Group - Health & Protection includesCanada Sun Life Health ,U.S. Group Benefits (Employee Benefits and Health and Risk Solutions) andU.S. Dental. Individual - Protection includesCanada Individual Insurance ,U.S. In-force Management and Asia Individual - Protection.
2023 sustainability highlights
Increasing financial security
95,874
financial roadmaps created for Clients in
2.4 million
lives covered through affordable insurance policies issued in
Enhanced disability coverage options
for physicians, dentists, nurses and other health-care professionals by launching Sun Life for Healthcare Professionals in the
Fostering healthier lives
committed to the fight against diabetes globally since 2012, including
Provided Group Benefits Clients in
Enhanced inclusive benefits and resources
for employees and their families in
Advancing sustainable investing
Issued Sun Life's
second sustainability bond,
raising
Set four interim net-zero targets
for our general account investments4
portfolio value of investments in assets and businesses that support the transition to a low-carbon and more inclusive economy5
Building resilience to climate change
Maintained
CarbonNeutral®6company certification
across our global operations
32%
of global electricity consumption from renewable sources such as solar and wind
Launched the
climate change academy
to educate employees globally on the effects of climate change and the actions they can take
Operating as a trusted and responsible business
Completed Phase 2
of the Progressive Aboriginal Relations certification in
invested in employee training and development programs globally, up from
Introduced a
Sustainability Modifier
to our
Share Unit Plan, enhancing accountability for delivering on our sustainability commitments8
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1Affordable insurance products help people in the mass market (including lower-income segments) meet risk protection needs at an accessible price point. The criteria for a product to be considered affordable insurance varies by country and is based on factors such as: insurance premium amount relative to average income, coverage period, underwriting requirements and/or government regulation. Refer toReport Scope - Note 1.
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2Used under license by
Simpill Health Group Inc. -
3An amount equivalent to the net proceeds from the offering will be used to finance or refinance, in whole or in part, new and/or existing green or social assets that meet the eligibility criteria set out under Sun Life's Sustainability Bond Framework.
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4Refer to Sun Life'sNet Zero by 2050report for more details and the latest updates.
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5Sustainable investment assets under management meet one or more of the criteria for investments based on ICMA Green Bond Principles, ICMA Sustainability Bond Principles, GRESB Real Estate Benchmark, and/or PRI Impact Investing Market Map. Where issuers do not obtain a third-party opinion or provide an internal opinion on their issuance, our investment professionals apply judgement to assess whether the use of proceeds meets the standards set out in the ICMA principles. Assets included may not align with criteria in the Sun Life Sustainability Bond Framework. Does not include all holdings in companies that may be defined as sustainable under other taxonomies.
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6CarbonNeutral® is a registered trademark of
Climate Impact Partners and is achieved in accordance with The CarbonNeutral Protocol, the leading global framework for carbon neutrality.
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7Refer toReport Scope - Note 3.
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8Refer to Sun Life's Management Information Circular dated
March 15, 2024 for more details.
Global context and megatrends
Events and trends that influenced our sustainability actions in 2023
A concerning climate trajectory |
Rapid growth of green energy |
Increasing sustainability reporting regulations |
Growing scrutiny over sustainability practices |
The new normal for working |
Intensifying affordability crisis |
Global greenhouse gas emissions continue to rise. The goal of limiting global warming to 1.5 °C is at significant risk, prompting heightened pressure across all sectors to accelerate climate action and ensure resiliency. Climate change is quickly emerging as a defining force across the global economy. Sun Life is committed to being a part of the climate solution. We're decarbonizing our business by integrating climate action into everything we do. By achieving net zero by 2050 in our operations and investments, we can have a meaningful and lasting positive impact on the environment. In 2023, Sun Life participated in |
In 2023, low-carbon energy investments nearly doubled investments in fossil fuels1. Supporting the transition to the low-carbon economy, Sun Life is investing in sustainable innovation including green buildings, renewable energy and transportation infrastructure. Our goal is to invest |
Regulators and policymakers across the world introduced comprehensive sustainability policies and regulations. Additionally, the Sun Life is preparing to comply with federal regulations related to environmental, social and governance (ESG) topics and plans to enhance its disclosures in line with these regulations. |
In line with increasing regulatory requirements for sustainability reporting, scrutiny over what companies disclose continues to grow - both over accuracy and impact. This trend is occurring across a range of sustainability topics including disclosures, climate, social issues, supply chain, human capital and diversity, equity and inclusion. In this climate, sustainability governance becomes increasingly more important. Sun Life delivers consistent and transparent information on ESG topics. We maintain strong governance and rigorous disclosure practices to ensure we uphold the trust of our stakeholders. To leamore, refer to pages3and11. |
The future of work is here. Hybrid work arrangements and digital collaboration are no longer pandemic phenomena, but rather the new normal for workplaces. Companies are endeavouring to determine the optimal balance between virtual and in-office work. They will also need to adapt the tools they use and make the necessary investments to optimize outcomes in a hybrid work environment. Sun Life is reimagining how and where we work to create flexibility for our people and business as we serve Clients. We are designing modeworkspaces, adopting innovative collaboration tools and developing the talent on our teams to empower our modeworkforce to thrive in the new era of hybrid work. To leamore, refer to pages45-46. |
People around the world are increasingly grappling with affordability challenges. The impacts have trickled down to the cost of essentials such as food, housing, transportation and electricity. Many families are struggling to make ends meet, while communities already underserved are being disproportionately affected. Realizing our Purpose to help our Clients achieve lifetime financial security and live healthier lives is even more essential today. We're committed to continuously increasing access to insurance and wealth products, and health and dental care. We're also removing barriers - particularly for underserved communities. To leamore, refer to pages14-15and17-19. |
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1International
Energy Agency . "Clean energy investment is extending its lead over fossil fuels, boosted by energy security strengths". 2023.
2
International
Message from our President and CEO
Sustainably-driven by our Purpose
For Sun Life, sustainability is critical to our culture and strategy, who we are and who we want to be in the future.
Having a long-term, positive impact for our Clients, colleagues, communities and climate means doing our part to drive change across Sun Life's business and investments. We're committed to being a Purpose-driven and sustainable company, one that cares for our Clients' financial security and health and the future of our planet.
As a globally trusted and responsible company, we know that embedding sustainability into ourbusiness - from our governance structure, policies and practices to our philanthropic work, training and reporting - creates resiliency and a brighter future. A future where individuals, families and communities are empowered to live healthier lives and be financially resilient.
While we're proud of our progress, there is work to do.
The landscape in which we operate has evolved over the past decade and continues to do so. In 2023, we experienced increasing geopolitical tensions, impacts of climate change and a warming world, and cyber threats. While the height of the pandemic is behindus, inflation, affordability and access to care continue to affect individuals and families around the world, but particularly those from underserved groups.
Through these challenges we leaned in, leveraging our scale, experience and resources to make Sun Life and society better. Throughout the year:
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• We evolved our enterprise strategy, wrapping sustainability around everything we do to ensure it remains relevant, impactful and inclusive.
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• We sharpened our focus on the climate, publishing interim net-zero targets for our general accountinvestments, reinforcing our commitment to reducing the climate impacts of the investments we own.
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• We brought financial education programs to thousands across Sun Life's global footprint, especially in
Asia . -
• We made it easier for Clients and employees to understand and access culturally-relevant covered health expenses.
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• We reached a new philanthropic milestone committing more than
$50 million since 2012 to fight diabetes globally.
What we do, and how we do it, matters.
I'm encouraged by our progress, spurred by our talented and diverse teams who live Sun Life's Purpose and values every day. It's their work you'll see highlighted in our 2023 Sustainability Report and in action in your community.
Our journey is far from over. More collective energy, work and creativity is needed to drive sustainable solutions and create a lasting impact for current and future generations. By sharpening our strategic focus and scaling positive impact across our diverse
"We're committed to being a Purpose-driven and sustainable company, one that cares for our Clients' financial security and health and the future of our planet."
footprint, we'll accelerate our actions to go further and faster to continue to build resilience into our business.
My commitment is to use our expertise, experience and resources, and invest in developing and empowering our people, to create positive impacts that make life brighter under the sun.
President and Chief Executive Officer
About this reportSun Life at a glance2023 sustainability highlightsGlobal context and megatrendsSustainability at Sun Life
Q&A with our Chief Sustainability Officer
It's been five years since Sun Life launched a comprehensive Sustainability Plan. Stepping back, what achievements on the journey stand out for you?
When I reflect on the past few years, I'm most proud of how the sustainability discipline at Sun Life has matured. Since 2019, the shift within the company has been incredible. We've moved from connecting the concept of sustainability to our core business and values, to more deeply embedding sustainability into everything we do. This shows up in so many ways - our enterprise strategy, our products and services, and the way we speak about our business. Above all, it's the way our leaders and employees see sustainability asfoundational to our long-term success. This will allow us to deliver in a way that is helpful for society and is a differentiator for our business.
Along the way, there have certainly been some big milestone initiatives. Whether it's our net-zero commitments within our operations and investments, our
It sounds like a lasting internal culture shift has taken place?
There's a palpable difference, and I've observed a meaningful shift in mindset. I see our leaders and teams really 'digging in' to leaand apply the issues of sustainability and climate change in ways that are directly connected to our business. Every business group at Sun Life now has accountability for sustainability. That responsibility is leading us to think differently about how we create impact, who we partner with, as well as new operational approaches that strive to be better for our Clients, employees, shareholders and society as a whole.
You evolved your sustainability strategy five years on, why did you feel the need to do that?
It starts with the belief that sustainability is a journey, not a destination. As a leader in sustainability, we recognize the world has evolved in terms of the expectations on corporations and the important role we can play. This is particularly true when it comes to climate change. We also realize that sustainability continues to be a complex and rapidly evolving priority - whether that's the global regulatory environment or changing social norms in different geographies.
When we first developed the Sustainability Plan, the connection of climate change to our business wasn't as clear as it is today. That's why we didn't initially include it as a pillar. We also knew we needed to bring in the right resources to determine the most meaningful way to have an impact on climate change. Our actions need to be about real, legitimate resiliency and not just lip service. The challenge of climate change goes beyond emissions and net zero; it's about the company we want to be for the next 150 years.
Looking ahead, what are you most excited to see Sun Life achieve in the next five years?
We've made big strides in Sun Life's sustainability ambition and there's so much more we can do. The past few years have really been about building the foundation and critical capabilities to move our strategy forward. Now, we're in a terrific position to accelerate the execution of our plans. That includes fostering more innovation, building upon our robust disclosures and data, and improving measurable outcomes for our Clients and society. In particular, I think we have an opportunity to lead our industry in addressing the needs of underserved groups through our life, health and wealth offerings. It's a business opportunity with a positive impact that can truly be measured.
I remain more excited than ever about the future of sustainability at Sun Life. We have an amazing team, deep expertise and a Purpose-driven culture that is committed to creating a better future.
Senior Vice-President and Chief Sustainability Officer
About this reportSun Life at a glance
Sustainability at Sun Life
Sustainability at Sun Life
Sun Life's Purpose is to help our Clients achieve lifetime financial security and live healthier lives. Our commitment to sustainability brings our Purpose to life.
Thinking sustainably: The key to our future
Our sustainability ambition is to maximize our positive impact and ensure the resiliency of our organization, in support of our Purpose. We aim to create competitive advantage and differentiation for our business through the following focus areas of our sustainability plan:
Increasing financial security
We aspire to increase the lifetime financial security of our Clients, employees and communities. We're increasing access to and use of insurance and wealth products, and empowering and educating people to improve financial security outcomes.
Fostering healthier lives
We aspire to improve health and wellness outcomes for our Clients, employees and communities. We're improving access to and use of health insurance and health care, and empowering people to navigate and manage their health journey to improve health outcomes. Our investments in community health complement these efforts.
Building resilience to climate changeAdvancing sustainable investing
We aspire to deliver sustainable returns for Clients. We manage assets with material environmental, social and governance (ESG) factors embedded in our investment processes and offer our Clients sustainable investing opportunities. In addition, we invest our own assets in ways that support a low-carbon and more inclusive economy.
We are committed to being part of the climate solution. We're decarbonizing our business and engaging with our stakeholders to support the transition to a low-carbon economy. Meaningful climate action is essential to achieving our Purpose and ensuring the resiliency of our business.
Operating as a trusted and responsible business
Our sustainability plan builds from our foundation as a trusted and responsible business. We aspire to be a responsibly-managed business that is Client-focused, Purpose-driven, competitive, forward-thinking and sustainable for the long term. From expanding our diversity, equity and inclusion efforts, to ensuring our Clients and employees feel valued, we're building on our long-standing sustainability practices and achievements.
Sustainability Driven
10
About this reportSun Life at a glance
Sustainability at Sun Life
Five years since we launched our Purpose-led Sustainability Plan
We've achieved a number of milestones on our journey to realize our Sustainability Plan. Through these achievements, and others, we're making good progress on the road to building a more sustainable future.
Launched new Sustainability Plan
Made "Sustainability Driven" a core part of Sun Life's overall business strategyElevated Climate Change as a cross-cutting lens in our Sustainability Plan
2019
2020
2021
2022
2023
Demonstrated our commitment to the climate by meeting our 20% by 2020 operational greenhouse gas (GHG) emissions intensity reduction target |
Broadened infrastructure equity and sustainable investment options for Clients by acquiring a majority stake in |
Strengthened sustainability leadership and accountability by appointing Sun Life's first-ever Chief Sustainability Officer |
Increased access to dental care for underserved people through the acquisition of DentaQuest, the largest provider of Medicaid dental benefits in the |
Provided Clients in |
Became the first life insurance company to issue a sustainability bond |
Supported the transition to a low-carbon economy by committing |
Stepped up climate action plans by committing to net zero by 2050 in our operations and investments; set interim operational target for 2030 |
Advanced our commitment to net zero in our investments by setting interim targets for several of our asset management businesses |
Advanced our support for green and social assets by issuing our second sustainability bond |
Demonstrated our commitment to diversity by becoming the first insurance company to introduce Kaleidoscope by Hive Learning, a leading DE&I education program |
Enhanced the quality of our reporting by obtaining external assurance for GHG emissions accounting for the first time |
Focused efforts to build an inclusive culture by launching our DE&I Strategy 20252 |
Strengthened diversity on our Board of Directors by achieving our aim of gender parity |
Strengthened accountability for climate-related performance by publishing Sun Life's firstNet Zero by 2050report and setting interim net-zero targets for our general account investments |
Helped more Clients and other Canadians get access to the health-care resources they need, when and how they need them by expanding the |
Strengthened sustainability disclosures by beginning to report in line with the TCFD framework and against select Sustainability Accounting Standards Boards metrics |
Helped group benefits Clients in |
Expanded sustainable investing options for Clients by launching Stellar, the first ESG-focused savings plan in |
Contributed to closing the savings and protection gap in |
Helped Canadians be their authentic selves by introducing gender affirmation coverage within group benefits |
Accelerated efforts to develop representative leadership by establishing aspirational DE&I goals at the senior management level |
Demonstrated our commitment to the climate by achieving CarbonNeutral®3company certification across our global operations |
Provided more diverse support for family building by adding new surrogacy, adoption and fertility services benefits to group benefits plans in |
Reached a milestone in the global fight against diabetes by surpassing |
Strengthened our commitment to being a trusted and responsible business by launching Client Data Privacy Principles |
Helped Clients in |
Helped Canadians with diabetes get access to affordable insurance by launching the Diabetes Signature Solutions pilot program |
Assisted Clients in reducing health-care costs by recording |
Enhanced leadership accountability by introducing a Sustainability Modifier to our Senior Executive Sun Share Unit Plan7 |
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1Examples of positive financial actions include adding voluntary benefits, adding a voluntary savings product, or making a lump sum deposit.
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2Refer toDiversity, Equity & Inclusion Strategy 2025.
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3CarbonNeutral® is a registered trademark of
Climate Impact Partners and is achieved in accordance with The CarbonNeutral Protocol, the leading global framework for carbon neutrality. -
4Based on number of members as of
September 2023 . Ranking compiled by Sun LifeU.S. using publicly available data from theSeptember 2023 Medicaid & CHIP Enrollment Data Highlights, state Medicaid agencies and other sources, and information disclosed by competitors.
5
Based on market conditions as of
6Affordable insurance products help people in the mass market (including lower-income segments) meet risk protection needs at an accessible price point. The criteria for a product to be considered affordable insurance varies by country and is based on factors such as: insurance premium amount relative to average income, coverage period, underwriting requirements and/or government regulation. Refer toReport Scope - Note 1.
7
Refer to Sun Life'sManagement Information Circulardated
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