Second Party Opinion s pglobal.com/ ratings This product is not a credit rating July 14, 2023 5 The bank will ensure that the balance of the tracked net proceeds is adjusted on a quarterly basis t o match the allocation of eligible green and social projects (re)financed during the period. If a project ceases to be eligible or is withdrawn, BCP will use its best effort s to substitute any projects as soon as practical once an eligible project has been identified. Pending the allocation, BCP will invest the balance of net proceeds from sustainable finance instruments in cash, cash equivalents, or in any other liquid marketable instruments, in line with its liquidity management policy. Reporting The Principles make optional recommendations for stronger disclosure practices, which inform our disclosure opinion as aligned , strong, or advanced. We consider plans for update s on the sustainability performance of the issuer for general purpose funding, or the sustainability performance of the financed projects over the lifetime of any dedicated funding, including any commitments to post -issuance reporting. ✔ BCP’s 2023 sustainability financing framework is aligned with this component of the Principles. Disclosure score We consider BCP's overall reporting practices to be strong. BCP commits t o annually reporting the allocation of net proceeds and environmental and social impact of financed projects until maturity of the instruments issued under the framework , as well as any material changes in the green and social asset portfolio composition on an ad -hoc basis . The report will be available on the bank's website. The company will report net proceeds raised from each sustainable financing instrument, amount of funds allocated to each eligible categories, balance of unallocated net proceeds at period end, proportion of net proceeds used for financing versu s refinancing, and actual and expected impact metrics. BCP has a comprehensive list of impact metrics for all categories of green and blue projects such as annual GHG emission reduc tion (tCO2e) for green b uildings, reduced emissions from deforestation and degradation (REDD), cubic meters of wastewater treated, total installed capacity of renewable energy projects, and estimated reduction in fuel consumption for clean transportation projects , among others. H owever, for social projects, indicators are limited to inputs and outputs , such as the number of people benefited and amount disbursed, which gives little detail about the social impact --both from a benefit and risk perspective--associated with BCP 's lending activities. That said, we believe tracking such social impact remains difficult for many lenders, aligning the bank 's metrics with market practices BCP will engage an external reviewer to assess the allocation of net proceeds to eligible projects annually until full allocation. It will also disclose the key underlying calculation and methodologies. In our view, t hese commitments add governance and transparency to the bank's reporting practices. Aligned No t aligned Str ong Ad vanced