Second Party Opinion s pglobal.com/ ratings This product is not a credit rating J u ly 3 , 2 023 4 The framework includes an exclusionary list , which covers activities such as fossil fuel energy generation, nuclear energy generation, weapon and defense industries, potentially environmentally negative resource extraction, gambling , and tobacco. Finally, the framework incorporates quantitative thresholds as eligibility criteria for sustainable water management projects and energy efficiency projects. For example, projects related to the upgrade of existing facilities, equipment, sy stems and technology must achieve at least a 30% improvement in energy efficiency to be eligible. However, it does not include such thresholds for all project categories, nor reference any market standards or taxonomy as part of project selection , limiting comparability . Management of proceeds The Principles require disclosure of the issue r’s management of proceeds from sustainable finance over the life of the funding. 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. ✔ Doosan Enerbility ’s Green Finance Framework is aligned with this component of the GBP and GLP. Doosan Enerbility will establish a dedicated ledger to track and manage the allocation of the net proceeds to the eligible projects. The ledger will contain information on the green financing instruments ' characteristics (type of instrument, issuance date, maturity date), list of eligible green projects (categories, types of projects , project description), allocation of proceeds , and amount of unallocated proceeds. The company will adjust the balance of net proceeds to match allocations to eligible green projects as long as green financing instrument s are outstanding. The GFWG will be responsible for monitoring the financed green projects, and replacing projects that no longer meet the eligibility criteria , or if material environmental or social controversy or adverse impact arises . Doosan Enerbility will do its best to fully allocate the net proceeds within three years from the date of issuance. This maximum time to allocate the net proceeds is relatively long. T he company will hold unallocated proceeds in cash or invested in cash equivalent, money market instruments, or other equivalent short -term and liquid instruments , in accordance with its treasury and 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 updates 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. ✔ Doosan Enerbility ’s Green Finance Framework is aligned with this component of the GBP and GLP. Disclosure score We consider Doosan Enerbility ’s overall reporting practices to be aligned. Doosan Enerbility commits to reporting annually the allocation of proceeds and the financed projects' expected environmental impacts until full allocation of proceeds in its annual i ntegrated report or in a stand -alone green financing report . The report will be available on its website. Allocation reporting will include the aggregat e amount of allocated proceeds , a brief description for projects financed , amount of unallocated proceeds and the share of financing versus refinancing. Aligned Not aligned St rong Ad vanced