Public Accountability Statement

2021

Public

Accountability

Statement

Sun Life

Financial

Inc.

Sun Life Financial Inc. | 2021 Public Accountability Statement

2021 Public Accountability Statement

This report is filed as the consolidated Public Accountability Statement (PAS) for Sun Life Financial

Inc., Sun Life Assurance Company of Canada and Sun Life Insurance (Canada) Limited as declarants

(collectively, the “Declarants”), pursuant to the PAS regulations of the Canadian federal government

(Insurance Companies Act (Canada), section 489.1(1) and Trust and Loan Company Act section 444.2(1)

as applicable). It contains information regarding our subsidiaries and pertains to our most recent

fiscal year (January 1, 2021 to December 31, 2021). Unless otherwise noted, all dollar amounts are

expressed in Canadian currency. In this document, unless the context requires otherwise, references

to “we,” “our,” “us,” “the Company,” “Sun Life,” and “Sun Life Financial” mean Sun Life Financial Inc. and

where applicable, its subsidiaries; and references to “employees and advisors” refer to those of Sun Life

Financial Inc. and its subsidiaries.

Contents

Community development and philanthropic activity 03

Access to financial services 08

Employees 10

Taxes paid 11

Debt financing 12

Affiliates 13

Sun Life Financial Inc. | 2021 Public Accountability Statement

Community development and

philanthropic activity

Health

Sun Life and JDRF

Sun Life is the title sponsor of JDRF’s two major

national fundraising events, Sun Life Walk to

Cure Diabetes for JDRF and Sun Life Ride to

Defeat Diabetes for JDRF. Due to the ongoing

pandemic, both events were once again

converted to virtual formats in 2021. The two

Sun Life has a long-standing focus on

comm

unity health and wellness and invests

in partnerships which encourage healthy

and active living. Through our donations and

sponsorships in 2021, we continued to actively

support the communities in which we live and

work, with the goal of building a healthier,

brighter future for our Clients, employees,

advisors, shareholders and communities.

Due to the ongoing COVID-19 pandemic,

man

y of our c

ommunity partners continued

to face challenges from staff reductions,

event suspensions or cancellations, and lower

fundraising activity. In 2021, we maintained

our financial commitments and loosened our

funding criteria to help our partners respond to

more immediate needs. We also provided over

$1 million in funding for communities hardest

hit by the pandemic.

Sun Life’s Purpose is to help Clients achieve

lif

etime financial sec

urity and live healthier lives.

Our philanthropic support is one way we are

bringing our Purpose to life. With a focus on

driving measurable social impact, we are making

investments that encourage healthy behaviours

and supporting those that are most in need

including at risk, underserved, low income or

underrepresented communities. Since 2012,

diabetes prevention, awareness and care has

been Sun Life’s global philanthropic cause. To

date, we have contributed $42.7 million globally

towards slowing the advance of diabetes and its

related complications.

In this section, unless otherwise stated, references to “employees and advisors” excludes individuals from Sepulveda Funding and Massachusetts Financial

Services (“MFS”) and BentallGreenOak (“BGO”) companies listed on page 13.

Includes donations made by individual business units.

In addition to our philanthropic work supporting

the prevention of diabetes, in Canada we are

also focused on improving the mental health of

youth, particularly those from marginalized and

underserved communities.

In 2021, across all programs, Sun Life donated

a t

otal of $15.3 million t

o community

organizations across Canada, the U.S., the UK,

and countries in Asia. Our principal subsidiaries

contributed an additional $5.6 million to

support community organizations globally. In

Canada, in 2021, Sun Life’s charitable donations

supporting community organizations coast to

coast totaled $8.3 million

Sun Life’s corporate philanthropic work is

bolst

ered by its employees and advisors who

generously volunteer, donate to and participate

in causes that they are passionate about. In this

way, employees and advisors further contribute

to the communities where they live and work.

Below are a few examples of our 2021 global

donations and sponsorships.

Sun Life Financial Inc. | 2021 Public Accountability Statement

events encouraged Canadians as well as Sun Life

employees and advisors across Canada to stay

physically active while also raising awareness

and funds to help find a cure for type 1 diabetes.

Right to Play

We continued to support the health pillar of

Right to Play’s Promoting Life Skills in Aboriginal

Youth (PLAY) program. In 2021, Sun Life’s

funding directly supported 3,500 Indigenous

children and youth in making positive,

long-lasting healthy lifestyle choices in 36

communities across British Columbia, Yukon,

Alberta, Manitoba, Ontario, New Brunswick and

Labrador. Participants reported making positive

choices after completing the program: 88%

reported they now try to be physically active

each day and 83% said they now try to eat

healthy snacks and meals at home.

Team Up Against Diabetes

grant program

Each year, Sun Life U.S. runs a national grant

program, which provides programmatic support

through grants of up to US$100,000 each

to registered charities in the U.S. focused on

diabetes awareness, prevention, education and

care. The program was developed to meet

the needs of grassroots organizations that are

seeking funding for diabetes programming in

their local communities. Since the program

began in 2016, Sun Life has donated over

US$1.3 million in funding to communities

throughout the U.S.

In 2021, Sun Life awarded US$350,000 in

unding via Sun Life’s Team Up Against Diabetes

grant program to six charities, including:

• Appetite for Change, Healthy Meal Box

Deliv

ery Program, Minneapolis:

Appetite for Change is a community-led

non-profit that uses food as a tool to build

health, wealth and social change. As a

Black-led organization, their programs are

based around a goal of creating health

equity and eliminating health disparities in

North Minneapolis which is comprised of

75% people of colour. The organization also

aims to serve as a model to engage and

elevate Black communities. Sun Life’s grant

will support Appetite for Change’s meal box

program, which began at the onset of the

COVID-19 pandemic. Soon after, it became

a collaborative effort with local organizations

to support the economic stability of small

and mid-sized farms run by farmers from

underrepresented communities. In a

six-month span, the organization has

delivered over 117,000 healthy meals to

more than 800 families in the region.

• Shepherd’s Clinic: Diabetes Self-Management

rogram, Baltimore: Shepherd’s Clinic (the

“Clinic”) provides comprehensive health care

for uninsured/underinsured adults in the

Baltimore region. Sun Life’s grant will help

support their Diabetes Self-Management

Program, a unique approach to educate,

treat, support and manage patients with

pre-diabetes or diabetes. In addition to

providing self-management education,

medications, testing strips, nutrition/food

assistance and helping participants set goals,

the program also provides advanced training

to their staff members on the impact of

structural racism experiences on health. As

part of the program, the Clinic will screen for

Sun Life Financial Inc. | 2021 Public Accountability Statement

racism experiences to better tailor patient

care plans and to increase the Clinic’s ability

to address the behavioral health barriers

that might mitigate remission rates of

diabetes. In addition, Sun Life’s support will

provide patient incentives for accomplishing

individual health goals. Incentives include

transportation cost coverage, food boxes and

gift cards.

SunPIOLOgy Fun Run

In the Philippines, we held the annual

SunPIOLOgy Fun Run to support the health,

wellness and education of Filipinos. The run

raised P4.2 million (Philippine Pesos), for health

and education advocacy and programs. The

funding helped send kids to school via the

Hebreo Foundation and raised awareness about

diabetes in partnership with the Institute for

Studies on Diabetes Foundation.

Pan-Mass Challenge

MFS has been a corporate sponsor of the

Pan-Mass Challenge (“PMC”), a bike-a-thon

held in Massachusetts, for 24 years. PMC raises

millions of dollars for cancer research and

treatments for the Dana-Farber Cancer Institute

(“Dana-Farber”). In 2021, MFS helped raise

more than US$1.2 million of the PMC’s US$64

million gift to Dana-Farber.

Built to Lead

BentallGreenOak (“BGO”) launched BGO

Built to Lead in 2021 to help students from

underrepresented communities embark on early

pathways to a meaningful career in commercial

real estat

e. The program features several

initiatives in Canada and the U.S., ranging from

academic scholarships, student internships and

sponsored mentorship opportunities.

One program where BGO has been particularly

activ

e is P

roject Destined. It’s an immersive

learning program and business case study

competition. Through donations from BGO’s

philanthropy program in 2020 and 2021,

sponsored teams of university undergraduate

students from Morehouse College, Spellman

College, Georgetown University and New York

University came together to compete in a global

program featuring live deal making. Backed by

mentors from BGO’s U.S. offices, Team BGO

students placed first in the U.S. The experience

eventually led to employment opportunities for

many of the participants.

Arts and culture

Sun Life Musical Instrument

Lending Library program

In 2021, we continued to support the

award-winning Sun Life Musical Instrument

Lending Library program. The program is putting

instruments into the hands of individuals,

families and communities across Canada by

offering anyone with a valid library card the

ability to borrow a variety of instruments free

of charge. Thanks to the Sun Life Musical

Instrument Lending Library program, over three

million library cardholders across Canada now

have access to musical instruments.

Sun Life Financial Inc. | 2021 Public Accountability Statement

Employee

contributions

We are extremely proud of our employee and

advisor volunteers who work hard to make

life brighter for others in their communities.

In Canada, in 2021, employees and advisors

volunteered thousands of hours and donated

to their favorite charities and organizations.

Together, we donated nearly $3.3 million –

the largest sum donated in the history of

our employee giving program – for over

1,700 charities.

In 2021, Sun Life refreshed its You Give We

Giv

e program (its North American employee

giving program) to provide greater flexibility to

employees and advisors.

Our Matching Gifts program

In Canada, You Give We Give now provides up

to $1,250 of matched donations each year,

per employee and advisor, to their charities of

choice. Employees and advisors can contribute

through any combination of financial donation,

volunteering or event participation.

Employee and advisor Matching Gifts

ontributions (Canada)

Canada 2021

Employee and advisor

ontributions (number)

6,201 employees

and advisors made

71,381 donations

Employee and advisor

ontributions

$1,782,477

Company match $1,497,397

Total combined donation $3,279,874

Registered charities

suppor

ted (number)

1,700

Our volunteer program

In Canada, Sun Life’s volunteer program

recognizes the efforts of employees and

advisors who volunteer for a registered charity

or humanitarian cause. As part of our You Give

We Give program, for every hour employees

and advisors volunteer with a registered charity,

Sun Life will donate $20 to that charity. Sun Life

will also donate $20 for each charitable event

that an employee or advisor participates in. In

2021, our employees and advisors in Canada

volunteered safely from home due to the

ongoing pandemic and reported over 16,000

virtual volunteer hours with local charities

and organizations.

Employee volunteer grant contributions (Canada)

Category Amount

Employee contributions

(hour

16,012

Company donation $128,703

Registered charities

suppor

ted (number)

167

Sun Life Financial Inc. | 2021 Public Accountability Statement

Volunteer

highlights

Sun Life employees in North

America participate in virtual

volunteer opportunities to help

contribute to the well-being of

their local communities

In 2021, employees from across North

America continued to participate in safe, virtual

volunteer opportunities to help their local

communities. These opportunities included

activities like mentoring, making cards or calling

people who were living alone. In Canada, for

example, a group of employees and their

families got together and made cards to help

brighten the day for seniors. The homemade

cards were distributed to care facilities across

Canada. Employees’ spirit of giving back to

those in need was stronger than ever.

Sun Life Foundation, Philippines

volunteer engagement program

The Sun Life Foundation, Philippines (the

“Foundation”), continues to encourage

employees and advisors to give back to

their local communities through a volunteer

engagement program. The program offers

volunteer and donation opportunities where

departments, branches, business units and

even individuals can participate in specific

“acts of kindness”.

Our employees and advisors engaged in many

activities thr

oughout the year, despite the

pandemic, aligned to the philanthropic priorities

of the Foundation. For example, the Foundation

hosted a week-long virtual volunteers’ fair. The

fair featured a series of workshops on topics

including education, health, environment and

arts and culture for the benefit of different

partner organizations and the vulnerable

communities they support.

Over the year, the Foundation engaged more

than 2,900 v

olunteers and touched almost

117,000 lives. This was in addition to the social

development programs run by the Foundation

which have positively impacted more than

2.9 million lives.

Sun Life Financial Inc. | 2021 Public Accountability Statement

Access to financial services

We aspire to increase the lifetime financial

security of our Clients, employees and

communities. That includes improving access to

financial services for underserved groups. Below

are a few examples of initiatives undertaken in

2021 and products that support the needs of

low-income individuals, persons with disabilities

and senior citizens.

Low-income individuals

In Canada, we offer various term insurance

products for individuals looking for affordability,

flexibility and protection. One example is

SunSpectrum Term Life Insurance. The product

includes guaranteed premiums and options to

convert to lifetime protection if needs change

and provides coverage amounts beginning at

$50,000 for terms of 10, 15, 20 or 30 years.

In some countries where we operate, life

insur

ance penetration is low. Helping people

access affordable insurance represents huge

growth potential for any insurer bridging the

significant coverage gap. In 2021, we expanded

low-cost insurance options for consumers

through new strategic partnerships including

Moneygment by Togetech, and GCash in

the Philippines.

In Indonesia, we partnered with LinkAja, one

of the c

ountry’

s leading financial technology

applications, and other platforms to leverage

their digital distribution channels. With these

partners, we’re expanding access to insurance

products through their digital apps, with nearly

15,000 policies sold in 2021.

We also continue to provide low-cost insurance

solutions f

or Clients through partnerships with

Lazada (Philippines) and TheBank.vn (Vietnam).

Persons with disabilities

We strive to provide products and services in a

way that respects the dignity and independence

of persons with disabilities. We are committed

to giving persons with disabilities the same

opportunity to access our products and services

so they may benefit from those same services,

in similar ways as other Clients. We are also

committed to meeting the needs of persons

with disabilities in a timely manner and continue

to meet applicable legislative requirements for

preventing and removing barriers.

Our Multi-Year Accessibility Plan and Customer

Service Policy Statement outline our approach

o establishing accessible products, services,

employment, and workplaces for persons

with disabilities. Our public websites and web

content published on those sites are WCAG 2.0,

Level AA compliant and we continue to review

new and upcoming legislation that may impact

our business.

Sun Life Financial Inc. | 2021 Public Accountability Statement

Senior citizens

In Canada, we offer personal health insurance.

This insurance is an ideal solution for those

who are retiring and leaving a group benefits

plan. These types of products provide affordable

coverage for day-to-day health expenses and

unexpected medical emergencies that aren’t

covered by provincial plans. Dental benefits are

optional on some plans.

In the Philippines, our SUN Senior Care

product is specifically designed to provide

health insurance to those who are already in

their pre-retiree or retiree life stages. Benefits

include access to a wellness program that offers

preventative care services and health perks,

and coverage for 17 common advanced-age

critical illness conditions. If the insured remains

healthy and well throughout the coverage

period, they are also protected with guaranteed

life insurance.

Sun Life Financial Inc. | 2021 Public Accountability Statement

Employees

Sun Life has operations in a number of markets worldwide, including Canada, the United States,

the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia,

Singapore, Vietnam, Malaysia and Bermuda. In 2021, Sun Life spent approximately $5.1 billion on

compensation and benefits globally.

Employees in Canada

Province Full-time Part-time Total

Alberta 441 5 446

British Columbia 213 1 214

Manitoba 22 0 22

New Brunswick 13 0 13

Newfoundland and Labrador 8 0 8

Nova Scotia 52 0 52

Ontario 7,436 94 7,530

Prince Edward Island 3 0 3

Québec 2,022 36 2,058

Saskatchewan 24 0 24

Total 10,234 136 10,370

As of December 31, 2021.

Sun Life Financial Inc. | 2021 Public Accountability Statement

Taxes paid

The taxes we pay in Canada and around the world are another measure of the way Sun Life

contributes to the economies and communities in which we live, work and do business.

In 2021, in all jurisdictions where the Company operates, taxes paid or payable to governments

otalled $1,827 million. Of this total, $920 million was paid or payable in income taxes; $396 million in

premium taxes and investment income taxes; and $511 million in excise, property, payroll and other

taxes. In Canada, the Company’s total taxes paid or payable amounted to $766 million.

Consolidated tax expenses in Canada

(in thousands of dollars)

Type of tax Income taxes

Premium

taxes and

investments

taxes

Total other

tax

Total

Federal

$150,759 $25,414 $70,314 $246,487

Provincial/Territorial

Alberta

$6,429 $30,449 $16,673 $53,551

British Columbia

$11,309 $30,748 $14,649 $56,706

Manitoba

$1,695 $4,892 $235 $6,822

New Brunswick

$1,615 $4,001 $884 $6,500

Newfoundland and Labrador

$1,131 $2,726 $675 $4,532

Northwest Territories

$51 $190 $0 $241

Nova Scotia

$1,817 $4,727 $1,069 $7,613

Nunavut

$19 $71 $0 $90

Ontario

$42,142 $125,755 $82,603 $250,500

Prince Edward Island

$491 $1,054 $234 $1,779

Québec

$15,677 $46,386 $57,727 $119,790

Saskatchewan

$2,729 $7,959 $125 $10,813

Yukon

$81 $289 $0 $370

Total

$235,945 $284,661 $245,188 $765,794

Income tax amounts are estimates based on information available for the year ended December 31, 2021.

The category ‘’Total other taxes’’ refers to $102 million in property taxes, $83 million in payroll taxes and $61 million in sales and excise taxes.

Sun Life Financial Inc. | 2021 Public Accountability Statement

For Client confidentiality, provinces and territories with one exposure in the authorization levels have been classified as other provinces and territories.

Other provinces and territories comprise Alberta, British Columbia, Manitoba, Nova Scotia and Saskatchewan.

Authorized amount includes all new commitments for 2021.

There was no activity in New Brunswick, Newfoundland & Labrador, Northwest Territories, Nunavut, Prince Edward Island and Yukon or for authorization

levels $0-$24,999; $25,000-$99,999; $100,000-$249,999; $250,000-$499,999 in 2021.

Province or

territory