Second Party Opinion s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 2 Second Party Opinion Summary Use of proceeds Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score KHNP commits to allocating the net proceeds raised under the framework exclusi vely to finance and refinance eligible green projects in solar, wind , hydropower energy , and storage of electricity , includ ing pumped hydropower storage . Such a framework support s climate change mitigation. Process for project evaluation and selection Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score KHNP has a green bond working group (G BWG) that comprises senior representatives from various function units. The GBWB is responsible to review the projects in accordance with the framework's eligibility criteria. The company's ESG committee will be responsible for identifying social and environmental risks associated with the projects. In addition, KHNP's eligibility criteria reference the EU Taxonomy technical screening and incorporate quantitative thresholds. Management of proceeds Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. KHNP will establish a g reen b ond r egister to track the proceeds. The company will periodically adjust the tracked net proceeds to match allocations to eligible projects, if necessary. The u nallocated proceeds will be invested in short -term instruments , in accordance with KHNP 's liquidity management policy . Reporting Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score Through KHNP's green bond report, the company commits to annual reporting on the allocation of proceeds and the environmental impacts until all the net proceeds are fully allocated. KHNP intends to report both the expected and achieved environmental impacts , as well as the underlying methodologies and assumption . The company also commits to having an independent third -party verify its post -issuance allocation and impact reporting . Aligned Not aligned St r ong Ad v anced Aligned Not aligned St r ong Ad vanced Aligned Not aligned St r ong Ad vanced