Review of the potential investment to determine whether it involves excluded activities or presents significant ESG risks, in accordance with:

• the IFC Exclusion List

• the U.S. International Development Finance Corporation (DFC) Prohibited Activities List

• Each Fund’s applicable list of prohibited activities, as set out in its respective management agreements and financing documents.

• Initial identification of ESG risks and preliminary ESG risk categorization, with the aim of assessing the project’s compliance with BEEL’s requirements

• Assessment of any identified gaps to determine whether they can be effectively addressed and managed taking into account BEEL’s ability to influence their management

• Communication of ESG requirements and formalization of these requirements in key transaction documents promoting collaboration with portfolio companies to integrate ESG criteria into the investment process

• Submission to IFC and DFC of a pre-clearance notice that includes key project information, the ESG risk categorization, and a summary of the project’s anticipated compliance with the IFC Performance Standards. This step allows our strategic partners to review and assess in advance the project’s alignment with the required standards

ESG due diligence conducted by external consultants, which includes a document review, on-site visits, and the preparation of a due diligence report. The report documents the final ESG risk categorization, the identified risks, compliance gaps with respect to the IFC Performance Standards, and proposes an Environmental and Social Action Plan (ESAP) with corrective measures and defined implementation timelines.

Incorporation of the findings into the analysis of investment opportunities and into the Committee’s decision-making regarding the investment opportunity. Based on this information, the Committee establishes specific ESG conditions for approval where deemed necessary. This process ensures that investment decisions are aligned with BEEL’s sustainability standards.

Inclusion of ESG requirements in all credit agreements, incorporating standard conditions and, where appropriate, specific requirements tailored to the risks and impacts identified during due diligence. These requirements include the implementation of the Environmental and Social Action Plan (ESAP) and compliance with post-investment reporting requirements regarding the ESG performance of portfolio companies and projects.

Active monitoring of the ESG performance of portfolio companies through the review of periodic ESG performance reports submitted by each company. These reports must include tracking of the ESAP’s implementation, project ESG performance indicators, as well as notification of incidents, accidents, or any material ESG-related events occurring during the reporting period, among other matters. This monitoring is supplemented by on-site visits and the systematic review of publicly available sources and media monitoring to identify potential controversies, when deemed necessary.