Second Party Opinion s pglobal.com/ ratings This product is not a credit rating July 14, 2023 4 The principles make optional recommendations for stronger structuring practices, which inform our alignment opinion as aligned , strong, or advanced. For our process for project selection and evaluation, we consider the commitments and clarity on the process used to evaluate and select eligible projects to fund with the proceeds of the sustainable finance instrum ent . ✔ BCP’s Sustainability Financing Framework 2023 is aligned with this component of the principles. Commitments score We consider BCP ’s overall process for project selection and evaluation commitments to be aligned. The framework outlines the process that the bank will use to determine how projects fit within the eligible categories. The bank has set up a sustainable financing working group composed by senior representatives of the treasury division, corporate sustainability office, Mibanco, BC P's sustainability pr ogram, wholesale banking, risk management, investors relations, and other relevant business units. This group will meet on a semiannual basis and oversee the evaluation and selection of eligible green, blue , and social assets. Moreover, the credit risk team will be responsible for identify ing , assess ing , monitor ing , and communicat ing to the working group any potential environmental and social risks associated with projects selected. The process follows international methodologies such as the Equator Princip les and IFC performance standards , in line with the sector's global practices. For corporate clients, BCP's credit unit screens and categorizes wholesale clients into high -impact sectors from an environmental and social risk perspective, supplemented by additional assessment and action plan as needed, such as hiring an independent environmental consultant. The bank incorporates clear eligibility criteria by setting quantitative thresholds or referencing market -based certifications for various eligible ca tegories , which we consider as a strength . For example, the framework references international ly recognized green building certifications such as LEED certification ( gold or above) or EDGE, IFC Blue Finance guidance for applicable projects, and internation al sustainable forestry certifications like Forest Stewardship Council (FSC), Program for the Endorsement of Forest Certification (PEFC), and the Sustainable Forest Initiative (SFI) . Additionally, the framework states that BCP could pursue other certificat ions for sustainable forestry besides those previously mentioned, for which we don't have clarity to opine on. BCP 's target populations for eligible social projects are very well detailed and consider a number of international standards, such as IFC eligibility criteria for SMEs, and local government definitions. It also includ es an exclusionary list covering weapons and arms trade; tobacco ; activities related to the exploration, production, or transportation of fossil fuels (coal, oil and gas) ; alcohol; gambling; adult entertainment ; and activities involving exploitation of human rights, modern slavery, and child labor. In the bank's extensive list, not all applicable project categories include clearly defined thresholds and/or incorporate market -based t axonomies, which is in line with the global banking industry, but it constrains our assessment at aligned. Management of proceeds The Principles require disclosure of the issue r’s management of proceeds from sustainable finance over the life of the fund ing. The alignment opinion focuses on how clear in the documentation is the issuer’s commitment to ensure that the funds raised will remain dedicated to eligible sustainability projects throughout the life of the sustainable finance funding. ✔ BCP’s 2023 sustainability financing framework is aligned with this component of the Principles. BCP states that it will monitor net proceeds from instruments issued under the framework. The net proceeds will be deposited in the bank's general account and an amount at least equivalent to proceeds will be earmarked for allocation to eligible projects. The bank commits to allocate all proceeds within 24 months of issuance , which we consider in line with market practices . Aligned No t aligned St rong Ad vanced