Second Party Opinion s pglobal.com/ ratings This product is not a credit rating July 14, 2023 3 Framework Assessment Use of proceeds The principles make optional recommendations for stronger structuring practices, which inform our alignment opinion as aligned , strong, or advanced. For use of proceeds, we consider the commitments and clarity on how the proceeds are used. ✔ BCP ’s 2023 sustainability financing framework is aligned with this component of the principles. Commitments score We consider BCP ’s overall u se of p roceeds commitments to b e strong . In our view , the framework is aligned with the requirement of the principles, with a clea r commitment to exclusively allocate net proceeds to finance/refinance eligible social, green, and blue projects, which will help further develop the company's strategy to increase its sustainable - oriented financing . These projects contribute to at least one environmental or social objective and support specific U.N. SDGs. The framework has eight green and five blue categories through which BCP aims to reduce greenhouse gas (GHG) emissions , maintain and enhance natural resources , reduce wastewater , and promote conservation of ecosystems. The selected categories are renewable energy, clean transportation, green buildings, energy efficiency, sustainable water and wastewater management, environmentally sustainable management of living natural resources and sustainable land use, circular economy, terrestrial and aquatic biodiversity, and pollution prevention and control. B lue projects mainly relate to water and marine conservation projects , and BC P also distinguish es green and blue projects depending on the project's proximity ( at least 50% of its surface within 10 kilometers) to the coast . BCP provides a clear description of the eligible categories. For example, it considers as eligible green tra nsportation hybrid passenger vehicles that meet the threshold of 50 gCo2 (grams of carbon dioxide) per passenger kilometer (km) and hybrid freight vehicles under 25 g CO2 /ton -km , which is in line with the Climate Bond Initiative 's low carbon transport criteria . We also consider appropriate that BCP only considers energy efficiency and water distribution projects eligible if they provide at least 20% improvement, in line with standards of other developing countries. The framework's four social categories are socioeconomic advancement and empowerment , access to essential services such as financial inclusion and healthcare, SME financing and microfinance, affordable housing and access to basic infrastructure, including financing sewage systems. Financing of projects in these categories aim to contribute to the growth of local economies in rural or remote areas and help reduce social inequalities and close gaps affecting Peru's most vulnerable population. The framework clearly describes the company' s target population for each of the social categories, which includes women, youth, elderly persons, indigenous or native communities, Afro -descendant persons, migrant populations, domestic workers , and the LGBTIQ+ population. Furthermore, social projects include affordable housing , which applies to mortgages to the low- income population that have special interest rate conditions, usually granted through government subsidies such as Techo Propio and Credito Mivivienda. The bank has committed to consider on ly loans in this category with at least the same requirements and financial benefit s to customers compared to the aforementioned government subsidy programs . The bank also considers eligible loans for companies for which 90% of income relates to activities included in one or more eligible categories and the loan proceeds aren't used for any of the excluded activities , which we consider as aligned to the principles . BCP will also disclose the share of financing versus refinancing with a maximum look -back period of 36 months for refinanced projects, adding transparency to the use of proceeds. Process for project evaluation and selection Aligned No t aligned Str ong Ad vanced