Sun Life Financial : 2024 GHG Emissions Reporting Methodology

Published: 2025-05-28 09:55:13 ET SLF.TO

Published on 05/28/2025 at 09:55

2024 GHG Emissions Reporting Methodology

Table of contents

Background 3

Reporting Boundaries 4

Scope 1 and 2 Emissions 6

Scope 3 Emissions 7

Market Based Instruments 13

Data Quality and Controls 13

Key Methodology Changes 15

Base Year Recalculation & Historical Restatements 16

Sun Life's Emission Reduction Goals 17

Glossary of Terms 19

Appendix A - Emission Factors 2024 20

‌1.0 Background

This document details Sun Life Financial Inc's ("Sun Life") methodology for calculating its 2024 greenhouse gas (GHG) inventory, covering January 1 to December 31, 2024. Sun Life annually reports GHG emissions to track global portfolio trends and measure progress toward emissions reduction goals.

Sun Life calculates and reports GHG emissions for Scope 1, Scope 2, and select Scope 3 categories, in line with the following GHG Protocol standards:

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition)

GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard

Corporate Value Chain (Scope 3) Accounting and Reporting Standard: Supplement to the GHG Protocol Corporate Accounting and Reporting Standard

Scope 3, Category 15 financed emissions are calculated in line with The Partnership for Carbon Accounting Financials' (PCAF) The Global GHG Accounting and Reporting Standard Part A: Financed Emissions, Second Edition (2022).

Sun Life seeks limited assurance on select GHG metrics, including Scope 1 and Scope 2 emissions, and Scope 3 Categories 3, 6 and 8 emissions (refer to KPMG's 2024 Independent Limited Assurance Report).

This document includes information on reporting boundaries, calculation methodologies, assumptions and emission factors Sun Life used for the 2024 GHG inventory. Sun Life's annual GHG data collection process occurs between January and November to meet reporting deadlines; we estimate data that is not available by early November. For details on Sun Life's estimation approaches, refer to sections 4.1 to 4.6.

‌Reporting Boundaries

Sun Life determines which business entities and activities are in-scope for the annual GHG inventory using organizational and operational boundaries, in line with the GHG Protocol.

Sun Life's Reported Emissions

The graphic below represents Sun Life's operational boundaries for reported GHG emissions across scopes.1

‌1 Applicable categories to Sun Life based on current business operations. Refer to section 4.8 Inventory Exclusionsfor more detail on currently reported and unreported categories of emissions.

Application of Boundaries to the Real Estate Portfolio

Real estate-related emissions account for a notable portion of Sun Life's emissions inventory. Based on Sun Life's boundaries, consolidation approach, and asset-specific detail, these emissions fall under Scope 1, Scope 2, or select categories of Scope 3.

Sun Life utilizes the financial control2 approach, as defined by the GHG Protocol and PCAF, to calculate emissions related to its real estate portfolio. This portfolio includes both owned properties (including real estate investment (REI) properties) and global offices. Detailed information about reporting of emissions from owned and leased properties across various scopes is outlined in the table below.

Scenario

Emissions Reporting across Scopes

Sun Life has financial control of wholly owned properties (including wholly owned REI properties), and majority control and ownership of joint venture properties. Control is determined at the asset level based on the ownership structure.

Emissions from fuel and energy consumption are reported in Scope 1 and 2, respectively.

Upstream fuel and energy related activities (FERA) not included in Scope 1 and 2 are reported in Scope 3, Category 3.

Emissions from water use and operational waste at these properties are reported in Scope 3, Category 4 and Category 5, respectively.

For REI properties that are jointly owned and financially controlled with another partner, we use an equity share approach for GHG accounting.

Proportionate emissions from fuel and energy, water use, and operational waste are reported in Scope 1, Scope 2, and Scope 3 Categories 3, 4, and 5 respectively based on percent ownership.

For REI properties where Sun Life is a non-controlling minority ownership partner, we use an equity share approach for GHG accounting.

Proportionate emissions from fuel, energy, and water consumption are reported in Scope 3 Category 15.

For global leased offices, Sun Life does not have ownership or financial control.

Emissions from fuel, energy, and water consumption are reported under Scope 3 Category 8, Upstream Leased Assets.

In certain cases, Sun Life maintains ownership and financial control over its occupied or leased office space (i.e., a leased office situated within an REI property).

Emissions from fuel and energy, water use, and operational waste are reported under Scope 1 and 2, and Scope 3 Categories 3, 4, and 5 respectively,

instead of Scope 3 Category 8.3

‌2 The GHG Protocol defines financial control as having the ability to direct the financial and operating policies of the operation, with a view to gaining economic benefits from its activities.

‌3This methodology prevents double counting and adheres to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (p.27), which states, "a company's Scope 3 inventory does not include any emissions already accounted for as Scope 1 or Scope 2 by the same company."

Disclaimer

Sun Life Financial Inc. published this content on May 28, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 28, 2025 at 13:54 UTC.