Integrated Report

2020 CONNECTIONS THAT INSPIRE Content Statement of Responsibility

[GRI 102-50]

This document contains true and sufficient information about the business activities carried out by Consorcio Transmantaro S.A. (ISA CTM) during 2020. Notwithstanding the responsibility of the issuer, the undersigned parties take responsibility for its content in accordance with applicable legal provisions.

Bernardo Vargas Carlos Mario Caro Sánchez Chairman of the Board General Manager

[GRI 102-51, 102-52, 102-54]

“This report is prepared on an annual basis, with 2019 as the latest reporting year” “This report has been prepared in accordance with the GRI Standards: Core option”. Message from the Chairman

[GRI 102-14]

Dear Shareholders,

Despite the various changes in all economic At the financial level, ISA CTM ended 2020 with a Net Profit of sectors that COVID-19 caused worldwide, USD 60 MM, increasing by 4.6% compared to 2019 and EBIT- ISA CTM proved its succeed, transforming its DA of USD 187.4 MM, with an increase of 2.8% compared to processes with resilience and adaptability, to the previous year. Additionally, it has assets amounting to USD continue offering the quality service that millions of 1,807.8 MM and equity of USD 472.4 MM. Peruvians needed during 2020, thus contributing The risk rating carried out by specialized agencies confirmed the to their development and well-being. strength and financial soundness of ISA CTM, maintaining the Therefore, I am pleased to share with you the results of ISA investment grade with international rating agencies, Baa3 from CTM’s management during that period, which show excellent Moody’s Investor Service and BBB from Fitch Ratings. This de- financial and operational performance, as well as fulfillment of cision is based on the stability and positive trend of the compa- relevant milestones, which reaffirm our leadership in the elec- ny’s revenues and profits from electricity transmission services. tricity sector and our purpose of generating CONNECTIONS In addition, during 2020, ISA CTM successfully ‘reopened’ its THAT INSPIRE with our stakeholders, despite the uncertainty. green international bond for USD 200 MM.

The management of ISA CTM was carried out by Red de En- Likewise, ISA CTM continued developing power transmission ergía del Perú (ISA REP), a company that fulfilled its commit- infrastructure expansion projects, with an investment of more ments and allowed us to continue with our progress. than USD 564.7 MM. Among them, the development of the

4 [GRI 102-14] Yana Coya projects with the Peruvian State stands out, in addi- to the future assures us that ISA CTM will continue to contrib- tion to connection projects with private companies. In this way, ute to the development of Peru. I am also grateful to the con- ISA CTM maintains its position as one of the most important tractors and suppliers, who faced a year of many changes and operators of high voltage power transmission in the country, restrictions together with the company. However, we worked with a total network availability of 99.63%. jointly to continue delivering quality service to the country.

On the other hand, during 2020 we understood that we had to With total transparency, we deliver this document to you with join forces with the State, academia, researchers and other pri- the firm conviction that you will find in it the necessary informa- vate sector companies, to bring help to those who needed it tion to contextualize the management of ISA CTM in the year most due to the damage of Covid19 in our society. For this rea- 2020. son, we deployed the “We are All One” humanitarian campaign, bringing food and health support to the most vulnerable commu- Sincerely, nities in our area of influence. In addition, we contributed to the implementation of a medical oxygen plant in La Merced, Junín.

I am grateful to the shareholders, Interconexión Eléctrica ISA and Grupo Energía de Bogotá, whose support made possible the results that we are now delivering and whose commitment Bernardo Vargas Chairman of the Board - ISA CTM

5 2020 Milestones

We invested more than half a million dollars to help fight the COVID-19 health emergency.

In Alliance with Pontificia Universidad Católica del Perú, we delivered 100 MASI mechanical ventilators Through an agreement with to the ICUs that most needed them in the country. Universidad Peruana Cayeta- no Heredia, research on rapid molecular tests was financed, among other contributions.

The medical oxygen plant was inaugurated in La Mer- ced, which Consorcio Transmantaro helped implement together with the Vicariate of the area, the Armed Forces, PUCP, and other strategic partners.

Consorcio Transmantaro successfully ‘reopened’ its international green bond for USD 200 MM ISA CTM Figures

99.63 % 85 % of our suppliers are LOCAL NETWORK availability

dollars in 0 COMPLAINTS 167,000 SOCIAL due to corruption cases INVESTEMENT

0 FATALITIES in our operations

7 1

Our Value Proposal Our Value 1 Proposal

1.1. Who are we?

[GRI 102-1, 102-7]

We are Consorcio Transmantaro (ISA CTM), a

concession holder of the Mantaro-Socabaya

transmission line, engaged in construction, op-

eration and maintenance of high voltage electric

power transmission lines.

ISA CTM is a business unit of ISA REP and pro-

vides us with technical and administrative man-

agement services.

9 Our Value Proposal Our Value 1 Proposal

We are part of ISA Group OPERATIONS IN [GRI 102-8] 6 COUNTRIES ISA is a multi-Latin business group with IN SOUTH AMERICA AND CENTRAL AMERICA more than 53 years of experience and background engaged COMPANIES in electric power, roads, telecommunications and ICT busi- 51 ISA, PARENT COMPANY OF THE GROUP AND 50 SUBSIDIARIES HOLDINGS IN 14 COMPANIES nesses, contributing to the quality of life of millions of people in Colombia, Brazil, Chile, Peru, Bolivia, Argentina and Central America, through the work of its nearly 4 thousand employees 4352 EMPLOYEES in its 51 companies. OF THE MANAGEMENT 30% TEAM ARE WOMEN The group develops its business based on technical excellence, efficient provision of its services, creation of sustainable ENERGÍA ELÉCTRICA value for its stakeholders and society in general, leveraged by innovation and digital transformation, supported by the best VÍAS corporate governance and ethics practices. TELECOMUNICACIONES Y TIC ISA and its companies are committed to mitigating and adapt- 47,358 km and ing to climate change, the rational use of resources, devel- 95,120 MVA of transmission opment of programs that generate a positive impact on the infrastructure in operation environment, comprehensive development of the communi- 1,053 km of 65,612 km and highways in ties where they operate, quality, reliability and availability of the 114,017 MVA including operation 54,137 km of fiber participation of ISA in services they provide. 136 km dof highways optics in operation other companies under construction 6,529 km and 15,603 MVA of transmission infrastructure under construction

10 Our Value Proposal Our Value 1 Proposal

Coordination of the Colombian After more than five decades of leadership in the region, ISA has transcended the physical act of connecting one point to another to connect people, making each connection an inspiring event. electricity system operation, ISA is a mixed-ownership public services company, constituted as a stock company, governed by Acts 142 and 143 of 1994 and domiciled in the city of Medellín (Colombia). The Government, through the 70,249 GWh Ministry of Finance and Public Credit, is ISA’s largest or controlling shareholder since it owns 51.41% of of met demand, the capital stock. 17,485 MW of net effective capacity The company has state and private investors. Its shares and bonds are traded on the Colombian Stock

Mobility control in 5 municipalities Exchange and it has Level I ADRs, which are traded on the Over the Counter (OTC) market in the United (Medellín, Colombia and townships) States. All constituent shares of the capital stock have the same rights, they are ordinary, registered and dematerialized, with no statutory restrictions on their transferability. ISA applies high standards of transparency, efficiency and corporate governance that provide protection and confidence to its investors.

Table 1: Shareholding Structure (December 31, 2020) Member of the Dow Jones Sustainability Index Shareholders Shares % for six consecutive years State investors 667,196,974 60.23 The Government 569,472,561 51.41 Public Companies of Medellín 97,724,413 8.82 Private investors 440,480,920 39.77 Member of the Dow Jones Sustainability Index MILA Pacific Alliance Institutional 297,761,561 26.88 Foreign investment funds 106,715,904 9.63 Natural entities 35,631,705 3.22 ISA ADR Program 371,750 0.03 Quality seal of the Colombian Stock Exchange for its Subscribed and paid-in circulating capital 1,107,677,894 100 transparency, corporate governance and commitment to the stock market, for five consecutive years.

11 Our Value Proposal Our Value 1 Proposal

Our Purpose Our Business Lines [GRI 102-16] [GRI 102-2]

We transport high voltage power that drives the development and well-being of millions of Peruvi- ans. To achieve this we take action on our purpose: Transmission

We provide uninterrupted high and very high voltage electric power ISA CTM, connections that inspire transportation service from power generation plants located throughout the country and then deliver it to distribution companies and free customers. Likewise, to provide solutions that contribute to solving society’s challenges together, we are guid- ed by our principles. We want to make each connection an inspiring act, reflecting effort, commitment and the way we look at the world. Operation

We manage transmission facilities in their planning, real-time execu- We generate connections when: tion, evaluation and improvement stages. We guarantee optimal op- We are aware that we are all one. eration and reliability of the service of our facilities and those of our We are sure that our wellbeing is the others wellbeing. customers, through two control centers (main and backup). We know that excellence is the result of the demand with which we approach each act of life. We recognize that our planet is fragile and must be cared for. Maintenance We understand that our actions, no matter how small, have an impact. We carry out preventive and corrective maintenance of transmission We discover that the change we want for the world is in each of us. lines, power substations and high and very high voltage equipment throughout the country. We are moved to know that we are made for great challenges. We are committed to having a constructive and responsible participation in decision-making. Our Value 1 Proposal

Connecting Peru TRANSMISSIONMAP LINEA MAP DE LÍNEAS 2020 - 2028 2020 - 2028 We connect millions of families and companies in Peru,

ECUADOR COLOMBIA improving their quality of life. [GRI 102-3, 102-4, 102-6, 102-7]

Pasaje El Milagro We want to create barrier-free connections throughout the country. Today, we operate through a network of 21 electrical Machala Tumbes Iquitos CT. Tumbes Iquitos IQUITOS Zorritos TUMBES Nueva substations and more than 4 thousand kilometers of 500, 220 and 138 kV circuits and lines that run through 21 regions. Iquitos

Reserva Fría Talara Reﬁneria Pariñas Intermedia PE. Campana Sullana Piura 500kV Chira Tablazo Paita Chulucanas Rentema Piura Oeste Piura Centro Muyo Northern Transmission Central Transmis- Southern Transmission PIURA La Niña Cumba 4 Bagua Sechura Jaén Caclic Rioja Moyobamba Bayovar La Niña Nueva Head office Department: sion Department: Department: Jaén Gera MOYOBAMBA Veracruz Felam Veracruz CHACHAPOYAS Tarapoto Carhuaquero Belaunde CHICLAYO Chadín Carhuaquero Chadín 2 Terry Cerro Chiclayo Oeste Corona Celendín Nueva Celendín Nueva Av. Juan de Arona 720, Of. Av. Miguel Bartra Gonzales Av. Prolongación Pedro Carretera Sector Umapalca CT. Eten Reque Carhuaquero CT. Recka Gallito La Balsa Guadalupe Ciego CAJAMARCA Bellavista 601, San Isidro 500, Urb. Las Brisas, Chiclayo, Miotta 421, San Juan de s/n, Socabaya, Arequipa PE. Cupisnique Cajamarca Pacasmayo Cajabamba Juanjui La Ramada BRASIL Lambayeque Miraflores, Lima. Trujillo Norte Trujillo Nueva Alto Chicama TRUJILLO Tocache Reserva Fría Tocache Yarinacocha Trujillo Sur Nueva PUCALLPA Pucallpa Pucallpa Nueva Moche Cañón del Pato DT NORTE Chimbote Nueva Kiman Ayllu [GRI 203-1] Chimbote 1 Caraz Aucayacu Aguaytía Chimbote 2 Carhuaz Tingo María HUARAZ Antamina Tingo Nueva Pierina Yungas Chaglla Huaraz Vizcarra Piedra Blanca Amarilis OCÉANO Conococha HUÁNUCO Marambuco Our commitment is to continue expanding the electrical networks to bring energy to more Peruvians. To achieve this, we Huánuco

PACÍFICO Paramonga Nueva Paragsha Paramonga CERRO DE PASCO Yuncán Cahua Yaupi have implemented the following projects: Medio Mundo Carhuamayo Huacho Cheves La Oroya Campas Huanza Yanango Chimay Lomera Pachachaca Carabayllo Caglia Cajamarquilla Orcotuna Zapallal Tambo Ventanilla HUANCAYO Carapongo Huayucachi Mirador Callahuanca Chavarria LIMALIMA Lomera Sta. Rosa Pomacocha Cerro del Águila Carabayllo Carapongo San Juan Planicie Mantaro Platanal Restitución Yana Coya Lima Norte Paquitzapango Cobriza Matucana Huancavelica Zapallal Chilca Colcabamba Sta. Teresa PTO. MALDONADO Huanta Huampani Fénix Termochilca HUANCAVELICA Quillabamba Pto. Maldonado Manchay La Guitarra C.H. Machu Picchu Ventanilla Moyopampa Asia AYACUCHO Ayacucho Suriray Mazuco Chavarria Planicie Cantera Mollepata Huinco Sumabeni Cachimayo Malvinas Desierto Andahuaylas San Miguel Chincha Dolorespata Sta. Rosa Cangallo Abancay Urub 320 Sauces Independencia Abancay Nueva Quencoro San Gabán The Yana Coya project will strengthen the transmission system in the central zone of the country and will provide ABANCAY Industriales Independencia Chuquipampa Kayra LIMA Ica Combapata ICA San Juan Ato Pradera Vizcatan Bambas Pachacutec Kallpa Onocora Chilca 1 Platanal DT CENTRO Sicuani San Rafael Nazca Cotaruse greater power supply reliability to the Huánuco region and the Cerro de Pasco and Áncash substations. It will also al- Chilca Termochilca PE. Tres Tintaya Tintaya Las Flores Hermanas Nueva Azángaro CT. Fénix PE. Marcona Poroma Marcona Ayaviri San Nicolás Huancané Mina Juliaca low surplus generation to be evacuated from the Mantaro area to Lima to respond to the demand in the area. During Callalli Pumiri Charcani I, II, III San Roman Santuario Charcani IV PunoPuno EMPRESAS LÍNEAS Charcani V PUNO AREQUIPA Jesús Ocoña Parque Ilave proyectada Chilina Industrial Socabaya Pomata 2020, we began the construction of the Yaros-Yungas, Tingo María-Chaglla and Campas-Yaros sections. 500 kV Yarabamba Repartición Cerro REP Verde Papujune 220 kV Mollendo Pto. Bravo Botiﬂaca CT. Mollendo San José ISA PERÚ 138 kV MOQUEGUA Toquepala Moquegua Aricota 1 Y 2 60-66 kV TRANSMANTARO CT. Ilo Tarata USD 500 MILLION invested Ilo Central hidráulica proyectada Mill Site OTRAS EMPRESAS Central hidráulica Tomasiri Los Heroes Central térmica Calana TACNA Central eólica DT SUR La Yarada Subestación existente USD 41 MILLION of estimated annual revenue Subestación proyectada CHILE Convertidor de frecuencia 60/50 Hz Parinacota Arica www.rep.com.pe CONEXIONES QUE INSPIRAN

13 Our Value Proposal

www.rep.com.pe CONEXIONES QUE INSPIRAN Our Value 1 Proposal

[GRI 203-1]

Talara

This project will connect the Talara Refinery to the National Interconnected Electrical System to meet Petroperú’s demand. This year we finished assembling the structures in overhead lines.

USD 34.7 MILLION invested USD 3.5 MILLION of estimated annual revenue

Mopa-Quellaveco

We continue implementing the Mopa-Quellaveco project that will connect the Quellaveco mining project to the Na- tional Interconnected Electrical System to meet its energy demand. In 2020, we finished civil works in the Moquegua substation.

USD 30 MILLION invested USD 2.9 MILLION of estimated annual revenue

New projects 2020

To meet Ica’s energy demand, this year we were awarded the concession for construction and commercial start-up of the 220/60 kV Chincha Nueva and 220/60 kV Nazca Nueva substations.

USD 30 MILLION invested USD 3 MILLION of estimated annual revenue

14 OurNuestra Value propuesta Proposal de valor Our Value 1 Proposal

Value Chain

At ISA CTM, we offer the best energy transportation solutions and services to our customers. Our business is made up of four macro-processes that address the creation, operation, maintenance and renewal of assets. These processes allow planning and evaluating current businesses as well as making new ones viable.

nagement l ma cia er Ma m n Businesses for Businesses for Asset Management m ag co e t re Government (B2G) Enterprises (B2B) u g o u • Manage human talent and y la Proper asset management is r t r i the organization • Transmission • Traditional a o n C • Regional connection (OR´S, crucial for the continuity of the • Manage information integration G conventional) technology business. This is why we have • Sub-transmission • New connection

CREATE ET OPERATE ET t

n • Manage finances options (FERNC) optimized performance and min-

ASSETS ASSETS e m

e imized risks in their entire life cy-

r • Manage reputation and

Business macro- u c sustainability • Storage • Distributed

o cle, whether as concessions to processes r energy services p • Manage general services e ISA REP, ISA CTM and ISA Perú.

a n • Exercise internal control a M and compliance duties In 2019, we were the first com-

Planear y evaluar el negocio Energy pany in Peru and Latin America C RENEW AND MANTAIN ET • Implement legal

Facilitate new energy businesses a

Business Planning and Assessment r r USE ET ASSETS management y t to obtain ISO 55001:2014 certi- o ASSETS n u e t m en e fication. In 2020, we passed the v ag iro n nm ma Activation macro- e ty first external follow-up audit with nta per processes l, social and pro success.

15 Our Value Proposal Our Value 1 Proposal

1.2. Strategy for 2030

Our strategy for 2030 is focused on a balanced business portfolio: we seek to generate value for our shareholders, ensuring corporate validity and creating positive social and environmental impact. This strategy is supported by four trans- versal pillars that organize our objectives and allow us to constantly evaluate our V I D A progress: green, innovation, development and articulation. GREEN INNOVATION DEVELOPMENT ARTICULATION

alor al a r v cc ra io Invest USD 980 MM in current businesses e n i n s and geographies Achieve a minimum increase of Include strategic e t

a G 80% in EBITDA partners for growth Achieve efficiencies ofUSD 4 MM in TOTEX of core and support

socia cto l y a a Generate benefits withhigh p m Establish alliances im b impact social programs i r e to develop social a n Compensate 5.8 MM Invest in

e t r

a TN of CO2e undertakings and environmental l C Comply 100% with the projects programs deadline and the expected reliability level SUSTAINABLE VALUE SUSTAINABLE igencia v c Enable organization capabilities to la o r rp a r o Invest USD 127 MM in new electric energy optimize competitive advantage and Establish alliances to u r a g businesses achieve higher performance in 90% of improve competitiveness t

e i v

s employees

a and develop capabilities a Increase digitalization of core and support processes and include them in new value propositions

16 Our Value Proposal Our Value 1 Proposal

We monitor our 2030 strategy through the following indicators: alor al a r v cc ra io Generate value for shareholders 2020 Target value 2020 Value reached e n i n s e t a Adjusted EBITDA REP + CTM 306.480 MM USD USD 317.718 MM G Net profit REP + CTM 103.600 MM USD USD 106.264 MM Investing in Current businesses/geographies 200.000 MM USD USD 28.000 MM Compliance with approved cash flow of projects 100.00 % (± 10.00 %) 95.00 % Total adjusted AOM expenses REP + CTM 53,380 MM USD USD 49,030 MM

socia cto l y a a Social and environmental impact 2020 Target value 2020 Value reached p m

im b i r e Unscheduled ENS REP + CTM 338,100 MWh 416,690 MWh

a n

e t

r a l

C Compliance with annual physical progress of projects 100.00 % 95.90 % Accident frequency rate of own employees 0.50 0.00 Contractor accident frequency rate 1.22 0.61 CO2e emissions compensation 450,100 TN CO2e 576 TN CO2e

genci vi a c Ensure corporate validity 2020 Target value 2020 Value reached la o r rp a r o Efficient employee performance 87.00% 91.00% u r a g t

e i v

a Internal coverage of critical positions 70.00% 40.00% a Organizational climate - 89.00% Global leadership index - 88.00%

17 Our Value Proposal Our Value 1 Proposal

Missions [GRI 102-16]

To meet the greatest transformation challenges by 2030, we defined missions, that is, objectives to which the entire company must contribute. In 2020, we decided to strengthen the fourth mission by integrating innovation and digital transformation aspects.

1 5 2 4 3 Modernization and Connections for efficiency Reliability and advanced Organizational development

Apply new technologies in safety Sustainable growth transformation Generate high impact on so- infrastructure projects, im- cio-economic and environ- Implement new network We seek to achieve sustain- Ensure a culture that lever- plement efficiencies in the mental development of the monitoring and control mod- able growth through interna- ages transformation through creating stage, supply the country in an innovative way els through exploration and tional interconnections, con- the development of new or- life cycle of assets, and op- to strengthen the relation- use of new technologies and solidate the energy transport ganizational capacities, ar- timize social, environmental ship with our stakeholders. advanced information man- business, achieve connec- ticulation of the innovation and property management. agement for operation and tions with private companies system, and enabling of maintenance. and create new energy busi- emerging technologies. nesses.

18 Our Value Proposal Our Value 1 Proposal

1.3. Our Approach to United Nations Global Compact Go to: Principle 1 Page 49 - 50 Sustainability Businesses should support and observe the protection of internationally proclaimed human rights. Principle 2 Page 49 - 50 We aim at being an innovative Businesses should ensure they are not a party to human rights infringements. organization, socially responsible Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collec- Page 49 - 50 and promoter of development in tive bargaining. Principle 4 the country. Page 49 - 50 Businesses should support the elimination of all forms of forced or coerced work. For us, sustainability is a way of acting. We are aware of the Principle 5 Page 49 - 50 planet’s environmental challenges and sensitive to various social Businesses should uphold the effective abolition of child labour. realities, we aim at creating value for our stakeholders with re- Principle 6 Page 49 - 50 spect for humankind in an ethical and transparent environment. Businesses should uphold the elimination of discrimination in respect of employment and occupation. Principle 7 Page 51 - 52 Global Compact Businesses should support a precautionary approach to environmental challenges. [GRI 102-12, 102-13] Principle 8 Page 53 - 55 Businesses should undertake initiatives to promote greater environmental responsibility. For 15 years, ISA has been a signatory to the United Nations Principle 9 Global Compact. We reaffirm our commitment to its ten funda- Page 51 - 59 Businesses should encourage the development and diffusion of environmentally friendly technologies. mental principles, on which we have reported our performance Principle 10 and progress made during the year. Page 28 - 31 Businesses should work against corruption in all its forms, including extortion and bribery.

19 Our Value Proposal Our Value 1 Proposal

Sustainable Development Goals

We are committed to the United Nations 2030 Agenda and, through our business, we seek to actively contribute to the Sus- tainable Development Goals (SDGs). The following table shows the prioritized SDGs and the initiatives and projects that we are currently working on:

Sustainable Development Contribution Initiatives and Projects Go to: Goal

We promote educational development of children, • Back to school youth, and adults with the support of strategic al- • Empoderatec Chanchamayo Page lies. 46

We seek that our suppliers have sustainability as a • GRI’s Competitive Business Program competitive advantage. • Huertos en línea Page 40 and 47

We build and implement works for the benefit of • Bio-Productive Families society, at the infrastructure level, which have a Page positive impact on the education of thousands of people. 48

We believe in community power to manage spac- Sustainable easement corporate program: es that add value to society, the economy and the • Huertos en línea Page environment. For this reason, we promote the use of our electricity easement for grazing and agricul- 47 ture activities.

20 Our Value Proposal Our Value 1 Proposal

Materiality [GRI 102-46 102-47]

Through the materiality process, we identify and prioritize matters that are relevant to our business, based on two main criteria: the potential impact on the company’s strategic objectives and the importance of the themes for our key audiences. Also, we consider in the analysis the requirements of investors, the context and trends that may affect the industry.

We follow these steps to build our materiality matrix: Definition Analysis of External analysis Materiality of relevant significance for (context and matrix themes + the business + benchmarking) =

This year, in view of the context created by the spread of COVID-19, we prioritized some issues of our materiality:

Critical High • Ability to meet its financial and business objectives, taking • Strategy for mitigation and adaptation to the effects of cli- advantage of opportunities and guaranteeing corporate va- mate change. lidity. • Versatility in the definition of risk appetite and in its manage- • Compliance with commitments. ment, in the face of new business opportunities. • Proximity and dialogue with stakeholders and listening to • Contribution to sustainable development and transformation their expectations. of territories, building a positive legacy for the regions. • Management of environmental impacts associated with ac- • Reference in its standards and practices. tivities. • Ethical, upright and transparent behavior. • Fulfillment of the promise of value with rigor and excellence. • Influential and inspiring company with the ability to antici- • Identification, anticipation and adaptation to challenges and pate, adapt and transform the environment. trends. • Appealing and convenient employer. • Respect and promotion of human rights and management of • Culture of innovation with flexibility and agility. social impacts. • Leadership in initiatives to contribute to the protection of eco- • Occupational health and safety for direct and indirect em- systems and biodiversity. ployees. • Security of infrastructures, information and Cybersecurity.

21 Our Value Proposal Our Value 1 Proposal

Stakeholders [GRI 102-40, 102-42, 102-43, 102-44]

Our ethical action model is based on three pillars: generation of trust, sustainable development, and value for our stakeholders. We prioritize dialogue and collaboration processes with our stakeholders in order to identify their Stakeholders Communication Channel and Frequency Key Issues and Concerns expectations and needs. Suppliers and • Satisfaction surveys (annual) • Greater proximity to the leaders of the company It is important to us to strengthen and improve our relationship with each of contractors • Reputation survey (biannual) • Workshops • Greater communication about the future our stakeholders; for this reason we maintain open and transparent com- plans of the company • Annual relationship building event munication channels in order to generate relationships of trust. Our stake- • Greater independence from the ISA matrix • Periodic relationship building holders were identified considering our environmental, social and economic through the supply area impacts, as well as their proximity to our operations. State • At events • Greater knowledge of the company • Work meetings • Greater relationship with other companies • Reputation survey (biannual)

Opinion Leaders and the • Periodic interviews, as needed • Greater relationship building Media • Frequency as needed • Greater transparency • Easier way to obtain company information • Greater proximity and dialogue

22 Our Value Proposal Our Value 1 Proposal

[GRI 102-40, 102-44]

Stakeholders Communication Channel and Frequency Key Issues and Concerns Customers • Satisfaction surveys (annual) • Shorter response times • Reputation survey (biannual) • Greater accessibility and approach by • Meeting with customers those responsible for customer service. • Newsletters • Decentralized meetings • Frequency as needed Communities • Reputation survey (biannual) • Greater proximity and communication • Regular relationship building • Training through the sustainability area • Generation of employment • Letters of request • Maintain support and backing provided • Frequency, permanent • Concern for social investment in health • Response to requests for humanitarian aid by the communities of influence

Investors and Analysts • Activity report • Higher levels (detail) of operational and fi- • Presentation of financial statements nancial information • Quarterly newsletters • Reputation survey (biannual)

[GRI 102-53] In order to receive suggestions or comments from stakeholders, the following communication channel is active: Rosa María Puga Sustainability and Communications Department [email protected]

23 Our Value Proposal 2

Our Response to COVID-19 2 Our Response to COVID-19

We are all one

Faced with the pandemic, our humanitarian strategy was for- mulated in two axes that contributed to improving quality of life: The COVID-19 pandemic has had a significant impact globally. We were faced with a continuous adaptation process that prioritized, and continues to have the safety of all our stakeholders at its core. Therefore, we reformulated our processes to face an unprece- dented situation. COUNTRY OUR ACTION ENVIRONMENT

WE ARE ALL ONE Before the first case was reported in Peru, we Our measures to ensure the restricted access to foreign guests and sup- Country Action Pillar continuity of our pliers. We switched from face-to-face to virtual Aimed at strengthening the Peruvian health system, through services meetings. investment in Innovation and Development (I&D), but also with the donation of medical equipment to fight COVID-19 as part of our support to the Peruvian State.

MASI mechanical ventilators For our suppliers: In alliance with Pontificia Universidad Católica del Perú (PUCP), • We brought payment milestones forward. we supported the development and production of 100 MASI • We reduced payment conditions. mechanical ventilators, which were delivered to the Ministry of Health (MINSA). To achieve this, we made a contribution of USD 500,000. Thanks to the MASI devices, people from different parts of the country who have a serious condition and require the use of a mechanical ventilator will have the opportunity to improve their condition.

25 Our Response to COVID-19 2 Our Response to COVID-19

Rapid molecular test to detect COVID-19 Our Environment Pillar Support to communities in state of emergency

We also made a donation for rapid molecular test research to ISA Group is committed to the economic reactivation of the Shortly before the spread of COVID-19 in our country, the dis- help detect the coronavirus, carried out by Universidad Peru- communities of influence of our power transmission projects trict of Santa Teresa (Convention province, Cusco region) was ana Cayetano Heredia (UPCH). Our contribution had an esti- and the following projects: affected by a natural disaster: a flood completely damaged mated value of USD 100,000 and is part of our commitment as Support to communities and towns of the Huertos en Línea the communication routes (roads and main bridge) to various ISA CTM with social investment in innovation for research and program towns. Our support consisted of 60 bags with basic food sup- development of health technology. plies for the community of Colpapampa and the rehabilitation We also made a donation of emergency food kits to 510 urban of Sallkantay pedestrian bridge”. This benefited 5,972 people, Oxygen plant for Chanchamayo farmers and medicinal plant gardeners in San Juan de Mira- including households that are part of informal economies as As part of the alliance with the Vicariate of San Ramón, we flores and Villa María del Triunfo, thanks to the alliance we they were the most affected by COVID-19. contributed for the construction of a Medicinal Oxygen Plant in have with Juguete Pendiente. La Merced, located in the Julio De Marini Caro Hospital, which Moreover, in alliance with Rotoplas and Brujhas, they received has a capacity to care for 700,000 people. water storage tanks and masks.

Face shields for frontline personnel Support to vulnerable communities and towns Thanks to the alliances established with Tinittus Perú and Jug- Thanks to the alliance with Juguete Pendiente we provided uete Pendiente, we donated 3,000 face shields for personnel support to 8,550 people from Chiclayo, Arequipa, Trujillo and most exposed to COVID-19 during the state of emergency. The Lima. Part of this support consisted of 1,000 emergency food benefited institutions were Luis Heysen Inchaustegui Regional kits. In the capital, we provide support to Barranca, Pativilca, Hospital in Chiclayo, Honorio Delgado Espinoza Regional Hos- Pachacamac, Villa María del Triunfo, and San Juan de Mira- pital in Arequipa, Villa El Salvador and Dos de Mayo Emergen- flores. This donation was made in partnership with Internexa cy Hospitals in Lima, and the Ministry of Transportation and and also included health kits. Communications (MTC).

26 Our Response to COVID-19 3 We Generate Value for Shareholders We Generate Value 3 for Shareholders

3.1. Corporate Governance

[GRI 103-1, 103-2, 103-3, 102-7, 102-18]

Good corporate governance practices allow us to improve our Principal Directors Since performance, be more competitive and ensure an environ- Audit Committee Bernardo Vargas Gibsone July 14, 2015 ment of trust, transparency and accountability that generates Duties: Isaac Yanovich Farbaiarz May 13, 2020 value for our shareholders. As part of our practices, we have Guido Alberto Nule Amín July 31, 2002 • Assist the board of directors in fulfilling their oversight specific guidelines that guide the actions and decisions of our Yolanda Gómez Restrepo May 13, 2020 responsibilities concerning the financial statement is- company. Ernesto Moreno Restrepo July 31, 2002 suance process, the internal control system, and the Our governing bodies perform their duties independently in ac- audit process. Alternate Directors Since cordance with the law, our Code of Ethics and Conduct, Code • Monitor compliance with the laws and guidelines of Carolina Botero Londoño March 19, 2019 of Good Corporate Governance and Bylaws. the organization. César Augusto Ramírez Rojas December 10, 2013 Brenda Rodríguez Tovar July 31, 2002 Members: Our Board of Directors Pablo Alonso Chaparro May 13, 2020 • Yolanda Gómez Restrepo –(president of the Audit Every two years, the General Shareholders’ Meeting elects the Miguel Felipe Mejía Uribe March 17, 2015 Committee) board of directors, which is made up of principal and alternate • Carlos Mesa Medina directors. The board of directors is responsible for dictating, • Brenda Rodríguez Tovar controlling and evaluating company policies, deciding the di- Committees rection of the business, and overseeing business strategies. Meetings: We have two committees that help us ensure the best corpo- • Meetings are held 4 times a year or as needed. rate governance standards in our organization.

28 We Generate Value for Shareholders We Generate Value 3 for Shareholders

[GRI 102-18] We also have two supervisory bodies: We have defined five ethical attributes that guide our actions and decisions: Ethics Committee Comptroller

Duties: Designs controlling tools and indicators for company Transparency management. Act in a reliable, accessible, clear and honest • Oversee compliance with the Code of Ethics and Con- manner. duct. Produces and systematizes information for decision-mak- • Strengthen and promote ethics in the organization. ing in the organization. Reciprocity Respect for the dignity of others with whom the • Ensure follow-up and investigation of reported cases company relates, in an environment of mutual through the various channels of the ethic line. Internal Audit recognition of the obligations and rights of the parties involved. • Decide on preventive, corrective and disciplinary mea- It is an independent and objective body, whose main task sures, when applicable. is to maintain adequate internal control in the company. Compliance Members: Commitment to comply with promises and observe the parameters, policies, standards and, in general, • General Manager the regulations applicable to companies. • Legal Advice Manager 3.2. Ethics and Pluralism • Internal Auditor Compliance Recognition of the diversity of people that Meetings: contribute, within an environment of respect, [GRI 103-1, 103-2, 103-3] to enriching the organization in the places and • As needed. cultures where it operates. Ethics and compliance define the way we do business at ISA

CTM. Our framework of action reflects our commitment to hav- Thoroughness ing the best transparency practices. Through our businesses, Duty of administrators, managers and employees we want to inspire our customers, suppliers and third parties, to fulfill the responsibilities aimed at achieving the mission of the company. It involves carrying out in general, to act with integrity and responsibility. with care and dedication the tasks and duties they have been assigned within the company.

29 We Generate Value for Shareholders We Generate Value 3 for Shareholders

Our Prevention Model [GRI 103-1, 103-2, 103-3, 205-1] Commitment with Management Through our Business Ethics and Compliance Program, we Monitoring, Review • Articulate knowledge at employee and third-party prevent and detect, in a timely manner, actions contrary to and Reporting levels our policies and procedures. Likewise, we manage the risks • Monitoring and control • Procedures to assess ad- of compliance with herence to the program of bribery, corruption, fraud, money laundering, and terrorist bribery/corruption matters Risk Assessment financing. • Assessment by the • Risk assessment and Board of Directors and valuation We have a corporate and approved prevention model. From the Audit Committee • Recording of events ISA REP, the risks for ISA REP, ISA CTM and ISA Peru are • Periodic reporting of related to bribery/cor- results ruption permanently managed, taking into account the findings in de- COMPLIANCE cision-making of the organizations. We carry out risk analysis AND BUSINESS ETHICS for 100% of the procurement processes, warehouses, payroll, new business, project management, property management, and financial resources in ISA REP, ISA CTM and Isa Peru. Training and Supervision and Communication Responsibilities During 2020, we worked hard to continue strengthening our • External and internal train- • Definition of roles, ing and communications culture and commitment to ethics from senior management. responsibilities and • Dissemination mechanisms authority delegation levels • Implementation supervision by the Board of Directors and Manage- Policies and Procedures ment • Defined policies, procedures and • Communication of controls responsibilities to • Procedures to report non-com- employees and third pliances parties • Documents concerning transac- tions sensitive to the program

30 We Generate Value for Shareholders We Generate Value 3 for Shareholders

Ethical Line [GRI 205-2, 205-3]

We have an ethical line that is a secure communication channel that our stakeholders use to report any type of conduct considered unethical, inappropriate or against the provisions of the Code of Ethics and Conduct or current legislation.

ISA REP manages the complaints received for ISA CTM and ISA Peru.

The ethical line is managed by an independent third party in order to ensure the protection of the identity of the person who decides to file a report.

We have four channels to access our ethical line:

1 3

Toll Free: 0800-00932 Website: https://www.resguarda.com/rep/inicio.html

2 4

Email: [email protected] App: Somos ETHOS

During 2020, we did not receive any complaints for corruption cases through our ethics line. The only case received was categorized as a conflict of interest. After the pertinent investigations, it was dismissed.

31 We Generate Value for Shareholders 4

We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

4.1. Occupational Health

and Safety Contractor Accident Frequency Rate (AFR) [GRI 103-1, 103-2, 103-3,403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8]

ISA REP manages the health and safety aspects of employees, being a priority in our operations. Our objective is to promote 4.65 Contractor Lost Days safe behavior in our team and contractors, which allows us to Rate (LDR) manage the risks of accidents or occupational diseases. We guide this action from our integrated management system pol- 40.34 icy, the internal safety and health regulations at work and the safety, occupational health, environmental, social and quality manual for contractors. We carried out identification and verification of risks, as well as

As evidence of our permanent commitment to safety, we man- implementation of controls in maintenance activities such as aged to obtain the ISO 45001 certification for Occupational in the construction of transmission lines and electrical substa- Health and Safety Management System. tions, with our own personnel and contractors, using the Work Safety Analysis and HIRA matrices. (Hazard identification, risk Despite the challenging year we have experienced, our occu- assessment and control measures), which are reviewed and pational health and safety goals were met. There were no con- updated once a year. tractor fatalities. We focused safety management on our Behavior-based Safe- ty Program, therefore we monitor compliance with safety and health guidelines by contractors.

33 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Here are the most relevant activities of 2020: Occupational Safety and Health (OSH) Commit- tee and Subcommittees ISAFETY [GRI 403-6] Through this application we identify deviations from safety, health and environment standards In the committee and subcommittees we promote safe and in real time to implement preventive and corrective measures that allow us to take care healthy practices to prevent accidents and occupational dis- of the physical integrity and health of our own eases, we monitor compliance with legislation, internal regula- workers and contractors, and promote care for the environment. It has five modules in its mobile tions and technical specifications of the work. and web version: inspections, interventions, audits, behavior-based safety, and accidents/ We have an occupational health and safety committee, made incidents. up of 4 workers’ representatives and 4 employer’s representatives, with their respective alternates. In addition, we have TRASEREP + three occupational health and safety subcommittees, in the The TRAbaje SEguro platform in CTM was north, center and south. The first two are made up of 2 workers’ implemented to verify compliance with safety, health and environmental requirements by representatives and 2 employer’s representatives. The central contractor companies. Currently, work is being subcommittee is made up of 4 workers’ representatives and 4 done on improvement of existing functionalities, user interface improvement, work flow employer’s representatives. improvement, quick view approval, among others. The occupational safety and health committee and subcommittees meet monthly for regular meetings. However, during 2020, additional extraordinary meetings have been held to review improvement proposals by the OSH Committee, as well SCORE Program as to prepare, review and approve the Surveillance Plan for With the International Labor Organization (ILO) we are promoting COVID- 19 prevention. management strengthening of our contractors, through collaborative participation of all their workers.

34 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Figure 3: Percentage of transmission service customers per Figure 1: Percentage of customers by type of service economic sector 1% 4.05% 1% 11% 4.2. Our Customers 4% [GRI 102-2] 95.95% 6% 77% At ISA CTM, we promote new projects with the State, Generation Transmission with private customers (mainly in the mining and indus- Mining Operation, Agri-business trial sectors) and management of the transmission plan maintenance, – Generation business portfolio. We offer to all of them businesses and ancillary and Distribution technical solutions tailored to their needs and we ensure that they specialized services Transmission Special project receive uninterrupted power.

Figure 4: Percentage of customers for operation, maintenance, Figure 2: Percentage of regulated and non-regulated customers ancillary and special technical servcies per economic sector

13.92% 50%

Telecommunications 86.08% Mining

Regulated Non-regulated 50%

35 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Operational Excellence

In 2020, as a result of the best operation and maintenance practices, the transmission service quality kept an improvement trend compared to previous years. Thus, the number of failures for every 100 km per year of the 500 kV lines was 0.86, in the 220 kV lines it was 0.98, and in the 138 kV lines it was 5.04. All three values are within international standards. Like- wise, the availability of our network in 2020 was 99.63.

Figure 5: 2019 - 2020 Network Availability Figure 8: 500 kV line failure rate

99.63 2020 99.55 2020 0.86 Real 99.62 Goal 2019 1.08 2019 99.62

Figure 9: Total failure rate Figure 6: 138 kV line failure rate Figure 7: 220 kV line 0.99 failure rate 2020 2 2020 5.04 2020 0.98 1.65 2019 11.76 2019 2 2019 1.84 Real Goal

36 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Figure 10: Total System Demand Figure 11: Maximum System Continuous Improvement - MWh (REP, CTM and ISA Perú Demand - MWh (REP, CTM and consolidation) ISA Perú consolidation) The transmission system works within the design parameters, and according to the maintenance and operation criteria in compliance with current regulations. Our processes are focused on the 2020 49178879.59 2020 7,125.30 use of physical assets (transformers, transmission lines, switches, etc.) to maximize their availability, reducing risks and incurring sustainable costs over time. 2019 52889162.8 2019 7,017.57

In 2020, in order to improve the quality of the transmission service every day and maximize the Table 2: Consumption Data of the National Interconnected System performance of the transmission network assets, we promoted the digitization of the distribution 2019 2020 networks with the “Efficient Operation” project. Through the Robotic Process Automation (RPA’s) Transformation capacity (MVA) 6,933 6,933 application we automated repetitive processes such as internal and external reports, transformer ‘tap’ changer tasks from the Scada control center, and settings verification of protection relays Reserve transformation capacity (MVA) 2,003 2,003 implemented in the field. Number of substations 21 21 Likewise, to guarantee the reliability and advanced security of the system, we launched the “Safe Total length of lines 500 kV 220 kV 138 kV Total Operation” project, implementing the Phasor Measurement Units (PMUs) data concentrator in 2020 1,861.82 2,339.74 59.52 4,261.08 the main Control Center.

2019 1,861.82 2,339.74 59.52 4,261.08 On the other hand, as part of the “Advanced Maintenance” project, remote assistance was implemented, through the use of augmented reality glasses, managing to optimize response times in Number of cells 500 kV 220 kV 138 kV ≥ 60kV Total corrective maintenance. Likewise, within this project the first inspections of lines with drones have 2020 44 121 10 25 200 been carried out and we are entering the world of virtual reality for learning purposes. 2019 44 121 10 25 200

37 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Commercial Management We know that our customers deserve timely customer service. For this reason, we record all complaints filed through digital or printed means and we comply with the customer service and In order to offer innovative solutions and maintain close relationships with our customers, we follow-up procedure. This system is called “Documentary Procedure”. In parallel, we use emails, listen to their concerns and receive feedback on our management. Every year, we evidence the teleconferences, and telephone or cell phone calls, if applicable, to communicate and follow up. satisfaction of our customers through surveys; however, due to the situation, during 2020, we Likewise, it is important to explain that there are special deadlines according to the matter of the were not able to implement them. claim or complaint, which depend on the nature of the communication and its origin. We have two policies that govern commercial management at ISA REP: We are at your disposal through our communication and customer service channels:

1 2

Corporate service policy: it estab- Information policy: it states the Email: Social networks: lishes operational principles for the corporate decisions guiding informa- [email protected] • Facebook: https://www.facebook. provision of quality services, in a tion and knowledge management as com/isarep.conexiones/ timely manner and at competitive critical and strategic assets for the • LinkedIn: https://www.linkedin.com/ company/isarep/ prices, aimed at satisfying customers development of businesses in their • Instagram: https://www.instagram. and building long-term relationships. present and future needs, which com/isarep.conexiones/ need to be conserved, protected in pursuit of sustainability, construction Teleconferencing with Office 365 through of synergies and operation continuity Microsoft Teams of ISA and its companies.

Electronic reception desk

38 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

4.3. Digital Transformation and Innovation

We chose to intensify digitization in core and support process- 2. Cybersecurity: we strengthened the cybersecurity architec- es, keeping the focus on optimization. Our levers are greater ture by contracting services: Cybersecurity Operations Cen- ter (SOC) for IT & OT infrastructure and Managed Perimeter competitiveness in the offer, extension of the useful life of as- Security and Two-Factor Authentication (2FA) integration sets, decrease of AOM costs, improve customer experience, throughout the company. and eliminate routine tasks in cross-cutting processes. Thus, 3. Advanced analytics and artificial intelligence: this year, we implemented the digital transformation model on six fronts: the Digital Excellence Center was formed throughout the ISA 1. Digital transformation of businesses: we have a portfolio Group to continue the development of initiatives related to of projects that digitize the business to modernize, achieve this matter. At ISA REP, we have two important pilots: cal- greater reliability, efficiency and advanced security in the culation of the health index for the Chimbote reactor and power system. switch monitoring in substations. 4. Ecosystem of digital partners, through supply partners To increase efficiency in project management, we implemented such as Unisys, Internexa and MDP. the PS (Project System) module in SAP, which improves management, control and traceability of projects information in their life cycle. This is how we consolidate advanced monitoring.

To provide more reliability, we started the implementation of the PI System Data Historian, which allows integrating information flows between maintenance scheduling and execution with real-time operation.

39 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Figure 12: Percentage of suppliers per region Figure 13: Percentage of products and services 4.4. Our Suppliers during 2020 procurement budget during 2020

[GRI 102-9, 102-10] 15% 13%

From the Procurement area, we ensure that purchasing management is carried out 89% based on cost, quality, opportunity and vision of the asset’s life cycle. It is important for 85% us to create an ecosystem of competitive suppliers that allows us to maintain business continuity and warehouse management. Together with them, we guarantee the continuous and timely supply of materials, ensuring construction and maintenance of our transmission lines, the core of our business.

Our suppliers are a fundamental part of the ISA REP procurement chain. The goods or services contracted, mainly, are those necessary for maintenance of our lines and oper- Local Local ation in real time, such as the following: International International

Line maintenance service Civil works Development of our suppliers Purchase of lead wires As part of the ISA REP family, our suppliers participate in programs to develop their business relationships Protection and control systems capabilities. In addition, we select suppliers that need to increase their productivity and business competi- Currently, we have a classification of suppliers based on the purchasing categories seg- tiveness in order to support their business management. mentation (routine, restrictive, relevant and critical purchases). These categories have been segmented and placed within the strategic procurement matrix, using the annual In this regard, it is important to point out that, for the second consecutive year, we participated as an anchor average of purchases from a historical record, based on the criticality and complexity of company in the “GRI Competitive Business Program”, which seeks that our suppliers have sustainability as the market. a competitive advantage. Our long-term goal is to increase the number of suppliers and for those already graduated to continue issuing their report in accordance with GRI standards. It is necessary to show how Purchases from local (national) suppliers represent 87% of our budget. Out of 190 sup- suppliers have started to manage their impacts after going through the programs. We are working on it. pliers, 161 are local suppliers.

40 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Six of our suppliers have graduated. We take pride in having contributed to their growth at the We have summarized our Supplier Strengthening Program (FdP) in this flow chart: reporting level. FdP SUSTAINABILITY • Ada Medina Consulting • Task 13: Identify new improve- • W & Y Contratistas generales ment opportuni- ISA SUPPLIER ties • Miranda Ingenieros STRENGTHENING • Task 12: Include OPERATIONAL MODEL START changes to the • Soluciones prediales • Task 1: Team formation management for the FdP systems • Inversiones Castro • Task 2: Selection of suppliers • Siemens 6 1 At ISA REP, we have a supplier strengthening program, through which we select suppliers that have improvement potential based on the characteristics of their product or service, which is a key 5 2 aspect in the present and future of ISA REP. 4 3 PLANNING This task is broken down into two steps: • Task 3: Information MONITORING AND gathering ASSESSMENT • Task 4: Identification of Pre-selection: in 2020, we preselected the suppliers that provide de- • Task 11: Assessment problems and causes by management 1 veloped services under the high impact categories, which are civil • Task 5: Objectives and • Task 10: Monitoring goals setting works and Environmental Impact Assessments (EIA). FdP ACTION GENERATION AND IMPLEMENTATION EVALUATION • • Priorization: for this purpose, an impact analysis is carried out (what is Task 9: Imple- Task 6: Generation of op- mentación tions 2 the opportunity that is currently identified in such supplier?); feasibility • Task 7: Evaluation and prior- itization of options (is there any barrier to strengthen such supplier?); strategic importance • Task 8: Implementation plan (why is such supplier important?). Based on weighting, the supplier to design be strengthened is selected.

41 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

Supplier assessments [GRI 103-1, 103-2, 103-3, 308-1]

Supplier assessments are the average rating of the results ob- Social and Quality Manual for contractors; a document that prove productivity and working conditions in small and tained in the performance assessments of contracts executed establishes performance and compliance guidelines for con- medium-sized enterprises. ISA REP participated as an an- in the last two years. The periodicity of assessments depends tractor and subcontractor companies, which does not exempt chor company and the suppliers selected to be part of this on the duration of the contract: if the contract lasts less than a them from complying with legal requirements, own standards program are Prosegel S.A.C, Negocios Metalúrgicos S.A.C, year, its completion is assessed; and, if it lasts more than one and those of the ISA group. Ingenieria de Proyectos Energía y Construccion Asb Eirl (IM- year, an assessment is considered at the end of each year and PRECONT), Delcrosa S.A., and Unión Eléctrica. In addition to the above, the following specific meetings are at the end of the contract. held: The criteria established to quantitatively measure a supplier’s • Alignment with the managers of our main contractors in or- management in a specific contract are quality, management, der to reinforce our occupational health and safety guide- timeliness, environment, health and safety at work. Each has lines, in addition to promoting the implementation of good three ratings that represent the concepts of good, acceptable, practices. and unacceptable. • We give weekly talks to our contractors on safety, environ- During 2020, 14 new suppliers were assessed and selected, ment, social, property, and health topics. Likewise, in Au- according to our environmental criteria. gust of this year, a meeting was held with the managers of the main contractors in order to reinforce our guidelines on Training plan for suppliers, contractors and sub- safety issues. contractors • We carried out a kick off meeting for the Yana Coya project

We provide weekly inductions to our contractors in matters re- with contractors. In this meeting we highlighted topics relat- lated to safety at work, occupational health, environment, so- ed to their work plan and safety. cial and property responsibility. This is in compliance with the • In partnership with the International Labor Organization provisions of our Safety, Occupational Health, Environment, (ILO), we started the SCORE program, which seeks to im-

42 We Guarantee Corporate Validity 5

We Create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

5.1. Contributing to Development

[GRI 103-1, 103-2, 103-3, 203-1, 203-2, 413-1]

We seek to promote sustainable development in the country, especially in the communities neigh- To this end, we implement innovations for the management, positioning and communication of boring our operations and constructions. We maintain transparent communication that allows our social performance to our stakeholders. We also evaluate the impact of our social investments us to identify opportunities to address social and environmental challenges and implement joint in our area of influence: sustainability projects and initiatives. projects. By doing so, we become strategic allies that promote positive changes in society and the environment. 2019 2020 Social Management To date, we have an infrastructure presence in 412 communities located in our direct area of in- 199,000 167,000 fluence, which encompasses territories in 8 regions of the country. dollars into social investment dollars into social investment

We manage our social risks and impacts to ensure the viability of our business within a framework of responsible, ethical and transparent action to generate value for our stakeholders and the organization. This is thanks to the implementation of our integrated social management plan, which 32,408 87,780 aims to: individual beneficiaries individual beneficiaries

Contribute to the development and transformation of the 2 3 territories in which we are present, seeking to leave a beneficiary organizations beneficiary organizations positive and lasting legacy of empowerment, promotion and respect for human rights.

44 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Strategic Pillars [GRI 203-1, 203-2, 413-1]

We promote management committed to social and environmental wellbeing. Based on the Sus- tainable Development Goals (SDGs), our goals for 2030 and annual commitments, We have defined four pillars to guide our work:

Education Local development We contribute towards improving We seek to improve the quality of life in education quality in the communities within vulnerable communities within our area of our area of influence influence. We are proud of these initiatives that encourage the participation of young people and adults as protagonists of their own development.

Local infrastructure and equipment Climate action We contribute to the improvement of We contribute to biodiversity preservation, infrastructure and equipment for families climate change mitigation, the connectivity and neighbouring communities. The focus of jaguar natural habitats in Latin America is on areas of direct influence with the and the development of rural communities. weakest infrastructure and equipment.

45 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 203-2, 413-1]

Back to school

We provided utilitarian and informative elements to students in the areas of direct influence of ISA CTM in order to facilitate educational quality and raise awareness on recommendations regarding safety measures.

We delivered 850 school kits, notebooks and material that encourage the care of the environment and important information about the electric infrastructure in the area. This year we worked with children and teenagers in the communities of Pomacocha and San Pedro de Cajas.

Education Empoderatec Chanchamayo

This year, in partnership with the Local Education Management Unit (UGEL) in Chanchamayo and Wempo, we are developing a six-month training program for 1,000 teachers in the province.

Currently, the ISA CTM-UGEL-WEMPO team is executing the diagnostic and pre-operational phase: valida- tion of the target audience, channel, suitable educational platform, design of the educational accessibility strategy, and development of educational material.

The trainings will be in synchronous mode, i.e., live and asynchronous recorded classes. Also, a mobile application is being developed, tailor-made for teachers, based on a diagnosis during the first weeks.

This application will contain videos that teachers will be able to watch whenever they wish, managing their time and dedication to the program. The application will only need an Internet connection at the moment of downloading; after that, it will not be necessary. This is in recognition of the reality of the digital divide in our country.

46 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 203-2, 413-1]

Sustainable Easement Program

Huertos en Línea

Since 2004, agroecological urban farmers have been benefiting from healthy food for their homes thanks to the work in plots located under transmission lines.

Huertos en Línea was born with the aim of creating environmentally responsible easements that are safe for our clients, economically attractive for the communities of interest, and with value for the future.

In the districts of Villa María del Triunfo and San Juan de Miraflores, we deployed efforts together with the Insti- Local development tute for Development and Environment (IDMA) for the installation of sustainable water infrastructure, advisory services for the certification of farmers in the agroecological accreditation of their products, and training in self-management and agroecology.

To date, we have benefitted 700 people in Lima and Trujillo. 130 of the urban farmers in the 13 orchards have successfully passed the evaluation of the Participatory Guarantee System (SGP) and have participated in 5 agroecological fairs. In terms of infrastructure development, this year 8 gardens have been reinforced with materials and two with irrigation facilities.

Thanks to these efforts, 140 families are benefiting from sustainable urban agriculture in terms of food. Out of this total, 75 make use of the spare production from their plot for sales, thus benefiting economically.

The latter group is certified under the Participatory Guarantee System (SGP), which certifies the agroecological character of the products developed in the orchards. This year 103 farmers have been certified and approved.

47 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Productive communities [GRI 203-2, 413-1]

The Open Innovation Challenge Productive Communities aimed to empower and improve the economic situation of rural communities in Huanuco. From among 8 finalists, Tereo Solutions S.A. was chosen as the winner. This venture consists of the de- “Winning this contest provided a velopment of an organic bio-fertilizer (biol) market, through the great opportunity to demonstrate that installation of biodigesters at the community of San Sebastián collaborations between corporate de Quera, which benefits 300 people. companies and SMEs can generate

Thanks to this project, the families of these community are great changes for the benefit of rural learning to use a new technology to fertilize and protect their communities, such as the one in San crops from pests. In addition, they use the biogas generated Sebastián de Quera in Huánuco. Thanks for cooking. to the contest, 60 rural families can now produce their own organic fertilizer and This project teaches them to take advantage of the resources generate biogas for cooking with clean available to them in an eco-efficient manner, reducing their energy. In addition to the great visibility carbon footprint and their impact on the environment and their that this project gave us, we hope that health. Tereo Solutions S.A. contributes to direct savings, in the initiative will serve as an example for addition to providing them with a competitive advantage, since more collaborative initiatives of this type the biogas produced serves as an enhancer for better agricul- to be replicated in energy, mining and tural production on their plots. agro-industrial companies.”.

Antoine Mathelot Co-founder of Tereo Solutions S.A.

48 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

5.2. Human Rights

[GRI 102-8, 102-41, 103-1, 103-2, 103-3, 412-2] ISA Group has a guideline to respect and promote human rights, the Corporate and the Code of Ethics. We contribute to the development and transformation of the As part of the ISA Group we have voluntarily adhered to territories in which we operate, we seek to leave a positive and the 10 Principles of the Global Compact to progressively lasting legacy of empowerment, and we promote respect for Through ISA Intercolombia, we are actively involved in guide all our practices. human rights. the construction and implementation of the “Recommen-

We have due diligence processes that allow us to identify and dations on Security and Human Rights for the Mining and prevent any potential impact on human rights. Our commit- We apply the Voluntary Principles on Security and Human Energy Sector”, issued by the Mining and Energy Com- ment is reflected in our internal policies, in our daily activities Rights of the United States Department of State and the mittee (CME), of which ISA is a founding member and a and in our active participation in local, regional and national United Kingdom Foreign Office to maintain the security of member of the Board of Directors. discussion forums. Thus, we encourage closeness, listening operations within a framework that guarantees respect for and dialogue to build relationships of trust and legitimacy. human rights and fundamental freedoms.

* As ISA CTM is entirely managed by ISA REP, it has no employees and therefore no trade union.

49 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 412-1] We have mechanisms in place to avoid and mitigate impacts or precautionary measures, fines or other sanctions related to and human rights violations, such as the following: non-compliance with labor standards have been imposed on us.

• The ethical line It should also be noted that we have an internal and external • The permanent information office at the Yana Coya con- management system that includes a channel for complaints struction projects, which aims to actively listen to the com- and reports to address human rights impacts. Externally, we munities. have a flow for complaints about discrimination in hiring, spe- • ISA social management system cifically for our stakeholders (contractors and suppliers). • Communication program with communities for projects Specifically, we have a procedure for subcontracting local labor • Training of our contractors, through the company Proyectos for our contractors, which requires that minors are not hired, de Infraestructura, on standards of conduct and good rela- decent working conditions for those who work in our operations with the communities in the areas of influence where tions, and that the stipulated frameworks are followed in accor- we build the high voltage pylons. dance with the law.

Human Rights and Suppliers In addition, we have a manual of occupational safety, occupa- [GRI 103-1, 103-2, 103-3, 408-1, 409-1] tional health, environmental and social responsibility specifica- Our contractors are exposed to labor risks related to the hiring tions for suppliers (STSOMARS), which states that contractors of minors, forced labor and/or the generation of conflicts due to must ensure that no forced or coerced labor is used, that no inadequate practices in the subcontracting of local labor. Tak- overtime is paid, and that no child labor or hiring of minors is ing into account these possible scenarios, we provide training allowed. In addition, if it is proven that the supplier has incurred on human rights standards and frameworks. in conduct that violates the Code of Ethics or the Anti-Fraud Code and Corporate Guideline 58 on respect and promotion of We are proud to say that, during 2020, we were not part of human rights of ISA, it is considered unacceptable and will be any investigations involving human rights and no corrective disqualified for a period of five years.

50 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

5.3. Environmental

Management agement system complies with ISO 14001:2015, whereby we construction stages, which can be observed in the scaring of

[GRI 102-11, 103-1, 103-2, 103-3, 307-1] identify the legal requirements applicable to our operation. wildlife species.

The sector in which we operate requires a high commitment Thanks to our sound management, in 2020, we received no The facilities that cross areas of high biodiversity are to the environment. At ISA CTM, we manage the risks and im- environmental fines or sanctions. as follows: pacts that are generated by our operation, through programs We are committed to reducing our carbon and water footprint, that contribute to the sustainability of the planet. • El Angolo Hunting Reserve (5 Km - 220 kV Line) so we implement actions that allow us to manage the consump- • Lomas de Lachay National Reserve (1.52 Km - 220 We have three specific objectives: tion of resources and efficiently manage our activities. kV Line) Our main goal is to contribute to the reduction of our emissions • Lomas de Ancón Reserve Area (7.1 Km - 220 kV Line) Promote the fight against climate by managing our water consumption, energy consumption, change • Salinas and Aguada Blanca National Reserve (25 Km waste generation and avoided emissions from teleworking. We - 220 kV line) use the GHG Protocol: 2005 Scope 2 Guidance methodology • Nor Yauyos Cochas Landscape Reserve (26.6 Km - for measurement purposes. Reduce carbon footprint and water 220 kV Line) footprint

Biodiversity and Climate Change We have environmental identification, monitoring and assess- [GRI 101-11, 102-15, 103-1, 103-2, 103-3, 304-1, 304-2] ment matrices to determine our potential impacts on biodiver- Comply with environmental commit- Our Corporate Environmental Policy establishes biodiversity sity at each substation along our transmission lines. To date, ments and environmental regulations protection as a fundamental issue. We are committed to caring no significant damage to biodiversity has been recorded in the for our environment at all times of our operation. We have iden- areas evaluated. It should be noted that SGS, the certifying To achieve them, we rely on our Corporate Environmental Pol- tified that the possible impacts on biodiversity occur only in the company, audits the matrices. We also act in compliance with icy and Integrated Management Policy. In addition, our man-

51 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 103-1, 103-2, 103-3, 102-11] [GRI 304-1] the commitments assumed in the Environmental Impact Assessments (EIA), En- Operations centers located within protected areas or areas of high biodiversity value outside protected areas vironmental Management Adaptation Plans and Peruvian regulations. Geographic location • Junín National Reserve • Historical Sanctuary of Machu Picchu Our environmental management is based on mechanisms to prevent, control, Position with respect to the protected area • Junín National Reserve (adjacent to the buffer zone) mitigate, and compensate for our potential environmental impacts. In this sense, (within the area, adjacent to the area or with • Historical Sanctuary of Machu Picchu (within the sanctuary) we seek to avoid any potential impact on biodiversity through strategic institution- plots in the protected area) or area of high al partnerships and the creation of synergies aimed at biodiversity conservation biodiversity value outside the protected area and protection. Our integrated biodiversity management is based on the following Type of operation (office, manufacturing, pro- Transmission line duction or extraction) 3 pillars: Surface area of affected areas • Junín National Reserve (No entry) Integrated Biodiversity Management • Historical Sanctuary of Machu Picchu (20 km line - 220 kV line) Biodiversity value, as characterized by being High Value in all cases listed as high biodiversity value Monitoring and conservation programs for sensitive species of Design and Contributions Actions taken construction through the flora and fauna were implemented, with an annual increase in Compensation methods to Conexión Jaguar populations of approximately 6% over the previous year. portfolio minimize Sustainability impacts on the Program environment and biodiversity

52 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 304-2]

Significant impacts of activities on biodiversity Conexión Jaguar Program Nature of significant direct and indirect impacts on biodiversity [GRI 103-1, 103-2, 103-3, 201-2]

Species reduction It has not been observed At the corporate level, Conexión Jaguar is our most ambitious program to contribute to the protection of bio- Habitat transformation No ecosystem fragmentation diversity, promoting the protection of the jaguar as one of the main species of the Latin American rainforest. Changes in ecological process- No changes in the ecosystem services of inter- For the comprehensive development of Conexión Jaguar, we have the technical support of South Pole Group es outside the natural range of acted habitats have been observed and Panthera, two world leaders in climate change, sustainability and big cat conservation. variation (such as salinity or water table changes). Significant direct and indirect positive and negative impacts Species affected Species affected The extent of the impacted areas • Junín National Reserve (No entry) • Historical Sanctuary of Machu Picchu (20 km line - 220 kV line)

The duration of the impacts Physical, biological and socio-cultural impacts: Other objectives we seek to achieve with this pro- • Temporary (construction only) gram are the following: • Visual Impact: Permanent Reversibility or irreversibility of Reversible • Reduce Greenhouse Gas (GHG) emissions. • Raise awareness about the deterioration of the the impacts • Contribute to the conservation or restoration of environment and the loss of the planet’s biodi- areas of importance for biodiversity and connec- versity tivity between the main populations of jaguars in • Increase the actions and benefits of the program Latin America. by linking new partners and donors. • Contribute to improving the living conditions of • Generate partnerships with the State and other rural dwellers and strengthen their social orga- organizations for the exchange of scientific in- nizations. formation and the development of conservation plans for vulnerable species.

Memoria Integrada 2020 53 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 201-2]

As part of the program, we seek to select 20 forest recovery and preservation projects, until 2030, in Latin America, specifically in the countries where ISA Group operates (Colombia, Peru, Brazil and Chile). The selected projects receive technical and financial support so that they can issue and trade carbon credits certified under high international standards for forest recovery and preservation projects in Latin America. To be selected, projects must be completed. Subsequently, they must sign an emission reduction purchase agreement (ERPA).

To date, we have implemented two Conexión Jaguar projects in Peru:

1 Alto Huayabamba Conservation Concession Project (CCAH) Location: Nuevo Bolívar district, Mariscal Cáceres province, in the San Martín region

Aim: Conservation and sustainable forest management

Reduction of nearly Protection of nearly 2,458,920 143,923 42 beneficiary families 2 hectares of forests and tCO water springs

Protection of endemic and critically endangered species such as the yellow-tailed woolly monkey (Oreonax flavicau- da) and the mountain tapir (Tapirus pinchaque) and the protection of other species such as the spectacled bear, the pudu, and the Nancy Ma’s night monkey.

54 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

[GRI 201-2]

2 BIORED Conservation Concession Union Project Location: Provinces of Padre Abad, Purus, Coronel Portillo, in the region of Ucayali

Aim: Contribute to the ecosystemic interconnection of the Jaguar corridor in the Ucayali area.

Reduction of nearly Protection of nearly 513,905 61,000 26 beneficiary families 2 hectares of forests and tCO water springs

Improvement of soil and water conditions, protection of endemic species such as the jaguar, the river dolphin, the South American tapir, among other.

In Peru, during 2020, 2 applications were received for the program. In addition to applications from previous years, 79 projects have been submitted that could benefit from the program. However, this year, a third project could not be implemented due to changes in the reference level of forest emissions for the year 2021 by the Ministry of Envi- ronment (MINAM).

55 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Power [GRI 103-1, 103-2, 103-3, 302-1, 302-2]

Our power consumption is low because it is not used for production activities, but for support activities. To improve efficiency and reduce environmental impact, we have implemented the fol- Table 7: Power consumption in the facilities lowing activities: Unit 2019 2020 • Change of lights to LED systems Power consumption in Kilowatt-hour 420,812.50 829,453.83 • Luminous efficiency study for the redistribution of luminaires. the facilities Gigajoule 1,514.93 2,986.03 • Implementation of LED systems in perimeter fences. Table 8: Vehicle Fuel Consumption by Area

Fuel (Unit) HQ Northern TD Southern TD Central TD DB5 Diesel 0 0 1,194.00 0 Diesel DB5 (Terajoules) 0 0 8.1192 0

2020 Gasohol 95 0.00 290.00 0 531.00 Gasohol 95 (Terajoules) 0.00 9,306.10 0 17,039.79 Diesel DB5 (Terajoules) 0 0 1,194.00 0 Gasohol 95 0 0 8.1192 0

2019 Gasohol 95 (Terajoules) 0.00 290.00 0 531.00 Gasohol 95 (Terajoules) 0.00 9,306.10 0 17,039.79

56 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Emissions Table 9: Greenhouse Gas Emissions (GHG) by scope [GRI 103-1, 103-2, 103-3, 305-1, 305-2, 305-3] Units 2019 GHG Emissions Metric tons of Our goal is to be a carbon neutral company by 2030. To achieve this, 139.2 (Scope 1) CO2e we have implemented the following programs: GHG Emissions Metric tons of 2 19.07 • Progressive implementation of energy-saving faucets. (Scope 2) CO e GHG Emissions Metric tons of • Change to LED lighting and modernization of equipment. 59.77 (Scope 3) CO2e • Change of effluent treatment system to biodigesters (formerly sep- Compensación de la Toneladas métricas 218.04 tic tank). huella de carbono de CO2e • Nationwide paper recycling • Changeover of all AC equipment to R-410 gas (formerly R-22) • Training with effective online platforms to reduce CF due to transportation of personnel. • Environmental specifications in the development of project engineering. • Circular economy workshops nationwide • Green substations • International cooperation agreements with US EPA to reduce SF6 emissions, achieving international standards in SF6 management.

57 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Water [GRI 103-1, 103-2, 103-3, 303-1, 303-2, 303-3, 303-5]

The water we extract is for consumption by our contractors in To ensure that our use is appropriate, we identify impacts relat- • Maintenance of pumps and water conveyance systems the workspace, and is supplied by subway wells and the public ed to water resources and have licenses for the consumption • Installation of meters in pumping systems of a certain authorized monthly and annual volume. We also water supply. • Monthly monitoring of consumption in a logbook establish the following activities to monitor the impact on water • Water consumption reduction goals resources: During 2020, we have implemented the following:

• Change of faucets to systems with hermetic and magnetic seals to avoid water losses. • Recovery of condensation water from air conditioners and use for irrigation in green areas. • Implementation of a drip irrigation system. • Implementation of fog catcher project

Table 10: Total Water consumption and extraction in cubic meters

Units 2020 Water consumption Cubic meters 3,052.7 Water extraction Cubic meters 1,654.0

58 We create Positive Social and Environmental Impact We create Positive Social 5 and Environmental Impact

Table 11: Waste generated by type and location, in kilograms Waste Management 2020 [GRI 103-1, 103-2, 103-3, 306-1, 306-2, 306-3] Municipal waste Non-hazardous Hazardous Units WEEE Other We manage all solid waste from our activities, with the highest (common or domestic) waste waste priority given to the proper management of hazardous and spe- Abancay Nueva kg 148.50 0.00 0.00 0.00 0.00 cial waste. We have implemented circularity measures to pre- Carabayllo kg 142.00 0.00 0.00 0.00 0.00 vent the generation of the organization’s waste, and on behalf Carapongo kg 25.50 0.00 17.00 0.00 0.00 of third parties we work with NGOs on projects for the recovery Chimbote Nueva kg 187.00 8,450.00 0.00 0.00 400.00 of scrap, WEEE and recoverable waste. In addition, we have Chilca kg 143.00 0.00 0.00 0.00 0.00 implemented actions such as the following: Colcabamba kg 47.80 3.70 55.80 0.00 11.40 • Implementation of new solid waste management standards. Cotaruse kg 505.00 260.00 1,116.00 1,111.00 13,365.00 • Signing of agreements with NGOs for solid waste recycling. Laguna La Niña kg 202.00 0.00 18.00 4.00 0.00 • Systematization of information to avoid the generation of ad- Machupi-cchu kg 0.00 0.00 0.00 0.00 0.00 ministrative waste. Mantaro kg 44.00 0.00 50.50 0.00 0.40 Mollepata kg 27.00 0.00 0.00 0.00 0.00 Montalvo kg 0.00 0.00 0.00 0.00 0.00 Planicie kg 42.50 0.00 173.00 0.00 0.00 Poroma kg 77.00 0.00 0.00 0.00 0.00 Olleros kg 0.00 0.00 0.00 0.00 0.00 Orcotuna kg 117.00 0.00 0.00 0.00 0.00 Socabaya kg 106.00 0.00 0.00 0.00 0.00 Suriray kg 128.30 1.00 65.00 30.00 0.00 Trujillo Nueva kg 60.00 0.00 41.00 0.00 1.00 Yarabamba kg 78.00 0.00 0.00 0.00 0.00

59 We create Positive Social and Environmental Impact 6 ANNEXES 6 ANNEXES

6.1. General Information Company name Consorcio Transmantaro S.A. Type of company Corporation History TAX ID 20383316473

• Consorcio Transmantaro S.A. was created in January 1998 to engage in electricity transmission ISIC 4011 activities as concessionaire of the Mantaro-Socabaya transmission line. This allowed connect- Term of duration Undefined ing the Central-North Interconnected System with the South Interconnected System. Legal Address Avenida Juan de Arona 720, oficina 601, San Isidro, Lima 15046 • HydroQuébec International Inc. was the strategic operator in charge of operating the Manta- Telephone +51(1) 7126600 ro-Socabaya line. In December 2006, Interconexión Eléctrica S.A. E.S.P. (ISA) and Empresa de Website www.isarep.com.pe Energía de Bogotá S.A. E.S.P. (EEB), today Grupo Energía de Bogota S.A. E.S.P., became the PAREDES, BURGA Y ASOCIADOS S. CIVIL DE R.L - member firm of Ernst External Auditor & Young shareholders of ISA CTM. ISA became the new strategic operator.

Incorporation and filing with the Public Records Office General information [GRI 102-5] The public deed of incorporation is dated January 30, 1998.

The main corporate purpose of ISA CTM is the electricity transmission activity that it will engage The registration entry number is 11014647. in as concessionaire of the Mantaro - Socabaya Transmission Line to connect the Central-North interconnected system with the South interconnected system, as well as the construction, opera- Administrative or arbitration proceedings tion and maintenance of power transmission networks. None.

Special relationship between the issuer and the State

We receive a state subsidy to retain personnel with disabilities.

61 ANNEXES 6 ANNEXES

6.2. Board of Directors and Executive Officers

Board Experience Incumbent Directors Alternate directors

Bernardo Vargas Gibsone Guido Alberto Nule Amín Carolina Botero Londoño

Has been an incumbent director of ISA CTM since July Has been General Manager of Transelca since Septem- She is Vice President of Corporate Finance of ISA. She is 14, 2015. He has been Chairman of ISA since July 2015. ber 1998. He studied Economics at the Universidad del a business administrator from Colegio de Estudios Supe- He is an economist from Universidad de los Andes and Atlántico (Barranquilla) and a diploma in Development riores CESA (Bogotá) and holds a Master’s degree in In- holds an MBA from Columbia University. Banking at the American University (United States). ternational Securities, Investment and Banking from the University of Reading in London.

Isaac Yanovich Farbaiarz Ernesto Moreno Restrepo César Augusto Ramírez Rojas He studied industrial engineering at Universidad de Los He is the current Technical Vice President for Transmis- Andes (Bogotá) and the University of Pittsburg (USA). sion of Grupo Energía de Bogotá (GEB). He studied Elec- He is Vice President of Energy Transportation of ISA. He Previously served as chairman of Ecopetrol. trical Engineering at Universidad de los Andes (Bogota) is an electrical engineer from Universidad Nacional de and holds specializations in Business Administration Colombia, specialist in Quality Management from Uni- Yolanda Gómez Restrepo from Universidad del Rosario, Marketing from Univer- versidad EAFIT and Master of Science in Operational Re- sidad Eafit and Electrical Business Administration from search from the University of Strathclyde (Scotland). An attorney specializing in criminal law, she has over 20 The United States Agency for International Development years of experience working for the public sector. and the Institute of International Education, Austin, Tx.

62 ANNEXES 6 ANNEXES

financing and also prioritized the delivery of financing Brenda Rodríguez Tovar 6.3. Shareholding contingent on the use of funds, and, on the other hand, She is the Financial Manager of Transelca. She is an Structure given the constraints of maintaining the maximum of- economist from Universidad Simón Bolívar, and holds fered rates for two days, ISA CTM decided to partial- We are committed to our shareholders to ensure efficient business a postgraduate degree in Financial Administration from ly secure the CAPEX scheduled for 2021, securing a and economic management in order to ensure good results. Universidad del Norte de Colombia and an MBA from short-term loan for USD 100MM bullet for one year at 2.98% AER. This financing was prepaid in September Universidad de los Andes de Colombia. The subscribed and paid-in capital stock is 100% of S/. 819,887,259.00. with the reopening of the 2034 bond. Registered common shares have been issued, and with preemptive

Pablo Alonso Chaparro Mayorga acquisition rights, except as otherwise provided in the Bylaws with a The international market recovered relatively quickly, par value of S/. 1.00. He holds a degree in civil engineering from the Universi- launching international Topics with attractive rates, so dad Industrial de Santander, Colombia. ISA CTM decided to reopen the 2034 bond for USD Shareholding Structure 200MM resulting in a yield of 3.003%. The operation was successful with a demand of 5.5x. Likewise, the Miguel Felipe Mejía Uribe reopening was certified green by Standard & Poor’s and He is Director of Operations and Maintenance of GEB. Interconexión Grupo Energía obtained an E2 - 68 rating, improving the rating of the He studied electronic engineering at the Universidad In- Electrica S.A. Bogotá S.A. 2034 issue that obtained E2 - 62. The funds were ear- dustrial de Santander with a specialization in Energy Re- 60% 40% marked to finance and refinance eligible green projects. sources Management at the Universidad Autónoma de Due to governmental regulations, deferrals were gener- Bucaramanga (UNAB). ated in the Commercial Start Up of investment projects, which generated an impact of USD 1,093 thousand in All our directors are executive officers 6.4. Financial Management revenues. Likewise, there was an impact from exchange There is no degree of relationship (by blood or through mar- COVID-19 Impacts differences due to higher exchange exposure of ac- riage) between the members of the board of directors and, counts receivable and taxes payable, primarily. Anticipating the uncertainty of the global situation, and given the among them, with the organization’s main shareholders. behavior of the local market, which halted the delivery of long-term

63 ANNEXES 6 ANNEXES

Capital investments were under-executed, mainly in the COYA-YANA Project, generating a dis- In application of the International Financial Reporting Standards, IFRIC 12, the Company records placement of the planned Commercial Start Up and cost overruns with contractors, associated to the costs of construction of transmission lines as income and expenses in the income statement. additional equipment for protection against the pandemic. Under this interpretation, the company provides a construction service in favor of the Peruvian State. With the beginning of the government mandated lockdown, lower expenditures were recorded, due to the deferral of activities, mainly in Operation and Maintenance, which were subject to re- The provision establishes that the fair value of the service provided is recorded as income. This is programming and/or optimization. This lower expenditure, however, helped mitigate the extraor- the same amount as the cost incurred, since no margin is generated on these services, as they are dinary expenses associated with the new safety protocols and the new work policies generated by provided, managed and supervised by Proyectos de Infraestructura del Perú S.A.C (PDI). the new situation. The value of these services amounts to USD 156.2 MM for 2020, which means an increase of Financial Management 247.3% over the previous year. Financial Indicators1 Revenues are generated from the transportation of energy through electric transmission lines built Indicators 2020 2019 under the concession modality for their operation, as well as contracts signed with private clients; Equity to Debt Ratio2 2.28x 1.77x the main cost is the amortization of the assets built and the cost of operation and maintenance. Debt Ratio2 0.60x 0.55x Liquidity Ratio - Current Test 4.51x 2.89x Liquidity Ratio - Acid Test 4.41x 2.77x EBITDA (thousands of US$)3 187,408 182,218 EBITDA Margin4 96.9% 96.0% Operating Margin4 67.8% 68.1% Net Margin4 31.0% 30.2%

[GRI 102-45]

1 Consorcio Transmantaro S.A. is the entity included on the consolidated financial statements. 2 Includes only financial debt - 3 Includes finance lease income and Addenda No. 5 and No. 10. 4 Margins calculated on the basis of operating income excluding the effect of IFRIC12.

64 ANNEXES 6 ANNEXES

Table 12: Profit and Loss Statement (expressed in thousands of US$) Figure: Financial information (expressed in thousands of US dollars)

2020 2019 Var.% 250,000 2020 Operating Revenues* 207,683 204,102 1.8 2019 200,000 Revenues from electric power transmission 187,408

193,368 189,832 1.9 182,218 services

150,000 207,683 Revenues from leasing and addenda N° 5 and 204,102 14,315 14,270 0.3 N° 10 Operating costs and expenses 20,275 21,884 -7.4 100,000

EBITDA* 187,408 182,218 2.8 59,985 57,357 50,000 21,884 Provisions, Amortization and Depreciation 56,264 52,888 6.4 20,275 Operating profit* 131,144 129,330 1.4 0 Financial income (expense) (net) -45,319 -47,309 -4.2 Operational Operational EBITDA Net Profits Income Costs & Profit before taxes and participations 85,825 82,021 4.6 Expenses Income tax 25,840 24,664 4.8 Net profit for the year 59,985 57,357 4.6 Excluding the IFRIC12 effect, the company’s operating revenues amounted to USD 207.7 MM.

[GRI 102-45] This resulted in an increase of 1.8% compared to 2019 revenues, mainly due to the tariff adjust-

Notes: ment. Consorcio Transmantaro S.A. is the entity included on the consolidated financial statements. Construction revenues/costs are not included. Costs and expenses, without considering the IFRIC 12 effect, decreased by 7.4% with respect to EBITDA includes financial revenues. 2019, mainly due to the deferral of activities, which were subject to rescheduling and/or optimization, this associated to the COVID-19 effect.

ISA CTM ended 2020 with an EBITDA of USD 187.4 MM and a Net Income of USD 60 MM, higher by 2.8% and 4.6%, respectively, than the results obtained in 2019.

65 ANNEXES 6 ANNEXES

Table 13: Balance Sheet (expressed in thousands of USD) The company’s assets increased by USD 265 million. This is primarily due to the increase in cash balances, higher accounts receivable, increase in financial assets, and projects in progress at the ASSETS 2020 2019 Var. Var.% end of the year. Current assets 266,591 138,315 128,276 92.74 Non-current assets 1,541,213 1,404,426 136,787 9.74 Liabilities increased by USD 270.1 million, mainly due to higher financing and deferred taxes. Total assets 1,807,804 1,542,741 265,063 17.18 At the end of the year, the company’s equity reached USD 472.4 million. NET LIABILITIES AND EQUITY 2020 2019 Var. Var.%

Current liabilities 59,060 47,896 11,164 23.31 Capital Investments Non-current liabilities 1,276,341 1,017,427 258,914 25.45 During 2020, ISA CTM made capital expenditures of USD 156.25 MM, corresponding to invest- Total liabilities 1,335,401 1,065,323 270,078 25.35 ments in projects associated with new concessions: Net equity 472,403 477,419 -5,016 (1.05) Table 14: Investments (in USD thousands) Total net liabilities and equity 1,807,804 1,542,741 265,063 17.18 Accumulated Investment Projects Figure: Balance sheet (expressed in thousands of US dollars) investment 2020

2,000,000 2020 CTM: MANTARO-MONTALVO TL FDCMSO CONSTR. PROJ. 487,328 334 1,800,000 2019 CTM: FRIASPATA-MOLLEPATA CONSTR. PROJ. 36,460 -279 1,600,000 CTM: CARAPONGO CONSTR. PROJECT 62,108 261 1,400,000 1,335,401 1,807,804 CTM: MANTARO-NUEVA YANANGO-CARAPONGO 102,810 74,137 1,200,000 1,065,323 CTM: NUEVA YANANGO-NUEVA HUÁNUCO 127,022 81,500

1,000,000 1,542,741 CTM: REINFORCEMENT 1 CENTRE I 113 106 800,000

477,419 CTM: REINFORCEMENT 2 CENTRE I 59 53 600,000 472,403 CTM: CHINCA NAZCA 132 132 400,000 23,116 20,991 200,000

0 Total Total Net equity assets liabilities 66 ANNEXES 6 ANNEXES

Financial Obligations

During 2020, ISA CTM successfully reopened the green international issue for USD 200,000,000 for a term of 14 years, coupon of 4.70% and yield of 3.003% enabling it to finance the project under construction called Nueva Yanango - Nueva Huánuco and Mantaro-Nueva Yanango-Carapongo (YANA-COYA).

Corporate bonds International Market

Outstanding corporate bonds consist of the following Topics:

Annual Interest Authorized 2020 2019 Currency Placement Date Rate Payment Method Capital maturity Amount (%) US$ US$ International bonds International bond 450,000,000 US$ May 2013 4.375 Quarterly May 2023 450,000,000 450,000,000 International bond 400,000,000 US$ April 2019 4.700 Quarterly April 2034 400,000,000 400,000,000 International bond reopening 2019 200,000,000 US$ September 2020 4.700 Quarterly April 2034 200,000,000 - Total 131,677,215 139,502,873

• On April 30, 2013, ISA CTM carried out the placement of the international offering of securities under Rule 144A and Regulation S of the U.S. Securities Act of 1933. On May 7, 2013, the • On April 11, 2019, ISA CTM completed the placement of the international offering of securities Company proceeded with the settlement and issuance of Senior Notes. The issue amounted to under Rule 144A and Regulation S of the U.S. Securities Act of 1933. On April 16, 2019, it USD 450,000,000,000 at an issue price of 99.002%. It has a 10-year Bullet amortization and proceeded with the settlement and issuance of bonds denominated “Senior Notes”. The issue semi-annual coupons that accrue interest at an annual nominal rate of 4.375%. These funds amounted to USD 400,000,000,000 at an issue price of 100.00%. It has a term of 15 years, were used to prepay debt. It is not subject to compliance with financial ratios or the mainte- amortization starting in year 11 (soft-Bullet) and semi-annual coupons that accrue interest at nance of specific levels of net working capital or liquidity. At the end of 2020, the outstanding an annual nominal rate of 4.70%. These funds were used to finance or refinance existing and balance of the international bond outstanding amounted to USD 450,000,000. new projects related to energy efficiency.

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On September 14, 2020, this international bond was reopened for US$ 200,000,000 at an is- Green bonds are financial instruments that provide funds that are exclusively applicable to finance sue price of 116.473%. It has a term of 14 years, amortization starting in year 10 (soft-Bullet), and/or refinance eligible green projects. semi-annual coupons that accrue interest at an annual nominal rate of 4.70% and an issue On September 9, 2020, the high voltage electricity transmission company, Consorcio Transmanta- yield of 3.003%. These funds will be used for green projects related to energy efficiency. ro (ISA CTM), successfully reopened its unsecured international green bond, issued in 2019, for a It is not subject to compliance with financial ratios or the maintenance of specific levels of net total of USD 200 million for a term of 14 years. This operation also had a coupon of 4.7%, a yield working capital or liquidity. of 3.003% and a maturity until April 16, 2034, thus positioning ISA CTM as a leading Peruvian At the end of 2020, the outstanding balance of the international bond amounts to USD company in the energy transmission sector in green Topics. 600,000,000. The placement has the independent opinion of the certifier S&P Global where it ratified the “E2” Capital Management category of ISA CTM with an improvement in the score of this transaction from 62 to 68 for con- The primary objective of ISA CTM’s capital management is to ensure that it maintains a strong tributing with the dispatch of clean energy to the Peruvian electric system. Also, this issue receives credit rating and healthy capital ratios in order to sustain its business and maximize shareholder the rating of “green” because its objective is to finance or partially refinance eligible projects that value. are related to energy efficiency. In this sense, ISA CTM considered for the issue the investments for the construction of transmission lines “Mantaro- Nueva Yanango - Carapongo 500 kV link and ISA CTM manages its capital to ensure that the entity can continue as a going concern, while associated substations” and “Nueva Yanango-Nueva Huánuco 500 kV link and associated sub- maximizing the return to its shareholders through the optimization of debt and equity balances. stations” that will be brought into commercial operation in 2022.

ISA CTM’s capital structure is comprised of net indebtedness (borrowings less cash and cash It should be noted that one of the success factors of the “reopening” was the resilience of the equivalents), and shareholders’ equity. company in the situation generated by the pandemic. Other factors of interest to investors were the stable regulation of the electricity market; ISA Group’s business model, focused on a strategy Consorcio Transmantaro successfully reopened the USD 200 based on sustainability; the company’s leadership in the electricity transmission subsector; as well million unsecured international green bond for USD 200 million as its good corporate governance.

Likewise, another relevant factor was the increase of the credit rating by Fitch Rating from “BBB-” to “BBB” with stable outlook as a company with a predictable cash flow, compliance with the debt indicator, moderate to low regulatory risk and moderate support from its shareholders.

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6.5. Biodiversity - Wildlife Biological Inventory

[GRI 304-4] Table 15: Biological inventory of species listed as Least Concern (LC) by the International Union for the Conservation of Nature (IUCN) - Wildlife

Under Order Family Species Common name Monitoring Path IUCN SOUTHERN TD (Machupicchu - Abancay – Cotaruse TL) Accipitriformes Accipitridae Geranoaetus melanoleucus Black-chested Buzzard-Eagle 10 transects of 36 stations separated by 10 meters from each other LC Accipitriformes Accipitridae Geranoaetus polyosoma Variable Hawk 10 transects of 36 stations separated by 10 meters from each other LC Accipitriformes Accipitridae Rupornis magnirostris Roadside hawk 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Adelomyia melanogenys Speckled hummingbird 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Aglaeactis cupripennis Shining sunbeam 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Amazilia chionogaster White-bellied hummingbird 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Chaetocercus mulsant White-bellied woodstar 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Coeligena coeligena Bronzy inca 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Coeligena torquata Collared inca 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Coeligena violifer Violet-throated starfrontlet 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Colibri coruscans Sparkling violetear 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Colibri thalassinus Mexican violetear 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Eupetonema macroura Swallow-tailed hummingbird 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Lesbia nuna Green-tailed trainbearer 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Metallura tyrianthina Tyrian metaltail 10 transects of 36 stations separated by 10 meters from each other LC Apodiformes Trochilidae Oreonympha nobilis Bearded mountaineer 10 transects of 36 stations separated by 10 meters from each other LC

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[GRI 304-4] Under Order Family Species Common name Monitoring Path IUCN Apodiformes Trochilidae Patagona gigas Giant hummingbird 10 transects of 36 stations separated by 10 meters from each other LC Falconiformes Falconidae Falco sparverius American kestrel 10 transects of 36 stations separated by 10 meters from each other LC Falconiformes Falconidae Phalcoboenus megalopterus Mountain caracara 10 transects of 36 stations separated by 10 meters from each other LC Psittaciformes Psittacidae Amazona mercenarius Scaly-naped parrot 10 transects of 36 stations separated by 10 meters from each other LC Psittaciformes Psittacidae Bolborhynchus orbygnesius Andean parakeet 10 transects of 36 stations separated by 10 meters from each other LC Psittaciformes Psittacidae Psittacara mitratus Mitred parakeet 10 transects of 36 stations separated by 10 meters from each other LC Strigiformes Strigidae Glaucidium peruanum Peruvian pygmy owl 10 transects of 36 stations separated by 10 meters from each other LC Carnivora Canidae Lycalopex culpaeus Andean fox 10 transects of 36 stations separated by 10 meters from each other LC Carnivora Mustelidae Eira barbara Tayra 10 transects of 36 stations separated by 10 meters from each other LC Carnivora Felidae Puma concolor Mountain lion 10 transects of 36 stations separated by 10 meters from each other LC Carnivora Procyonidae Nasua nasua South American coati 10 transects of 36 stations separated by 10 meters from each other LC Carnivora Ursidae Tremarctos ornatus Spectacled bear 10 transects of 36 stations separated by 10 meters from each other VU Carnivora Cuniculidae Cuniculus taczanowskii Mountain paca 10 transects of 36 stations separated by 10 meters from each other NT Rodentia Cricetidae Akodon surdus Slate-bellied akodont 10 transects of 36 stations separated by 10 meters from each other VU Anura Bufonidae Rhinella poeppigii Gray toad 10 transects of 36 stations separated by 10 meters from each other LC Anura Bufonidae Rhinella spinulosa Toad 10 transects of 36 stations separated by 10 meters from each other LC Anura Centrolenidae Nymphargus pluvialis Rana de cristal 10 transects of 36 stations separated by 10 meters from each other VU Anura Leptodactylidae Pleurodema marmoratum Gray toad 10 transects of 36 stations separated by 10 meters from each other LC Anura Telmatobiidae Telmatobius jelskii Acancocha water frog 10 transects of 36 stations separated by 10 meters from each other NT Squamata Gymnophthalmidae Euspondylus caideni Sucullucuy 10 transects of 36 stations separated by 10 meters from each other LC Squamata Gymnophthalmidae Proctoporus sucullucu Sucullucuy 10 transects of 36 stations separated by 10 meters from each other LC

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[GRI 304-4] Under Order Family Species Common name Monitoring Path IUCN Squamata Liolaemidae Liolaemus signifer gr. Zodiac Tree Iguana 10 transects of 36 stations separated by 10 meters from each other LC Squamata Tropiduridae Stenocercus apurimacus Fritts' whorltail iguana 10 transects of 36 stations separated by 10 meters from each other LC Squamata Tropiduridae Stenocercus crassicaudatus Spiny whorltail iguana 10 transects of 36 stations separated by 10 meters from each other LC Squamata Tropiduridae Stenocercus ochoai Zodiac Tree Iguana 10 transects of 36 stations separated by 10 meters from each other LC CENTRAL TD (Pomacocha – Caarhuamayo TL) Accipitriformes Accipitridae Geranoaetus polyosoma Variable Hawk 15 transects, 1 kilometer apart LC Apodiformes Trochilidae Oreotrochilus melanogaster Black-breasted hillstar 16 transects, 1 kilometer apart LC Cathartiformes Cathartidae Vultur gryphus Andean condor 17 transects, 1 kilometer apart NT Falconiformes Falconidae Phalcoboenus megalopterus Mountain caracara 18 transects, 1 kilometer apart LC Gruiformes Rallidae Fulica gigantea Giant coot 19 transects, 1 kilometer apart LC Artiodactyla Camelidae Vicugna vicugna Vicuña 20 transects, 1 kilometer apart LC Artiodactyla Cervidae Hippocamelus antisensis Taruca 21 transects, 1 kilometer apart LC Carnivora Canidae Lycalopex culpaeus Andean fox 22 transects, 1 kilometer apart LC Carnivora Felidae Leopardus colocolo Pampas cat 23 transects, 1 kilometer apart NT Carnivora Mephitidae Conepatus chinga Molina's hog-nosed skunk 24 transects, 1 kilometer apart LC Rodentia Chinchillidae Lagidium peruanum Northern viscacha 25 transects, 1 kilometer apart LC Cavidae Cavia tschudii Montane guinea pig 26 transects, 1 kilometer apart LC

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[GRI 102-55] 6.6. GRI Table of Contents For the GRI Content Index Service, GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report.

GRI Standard Content Page Number Omission GRI 101: 2016 Foundations General Contents GRI 102: 102-1 Name of organization 9 2016 General Contents 102-2 Activities, brands, products and services 12 and 35 102-3 Location of headquarters 13 102-4 Location of operations 13 102-5 Ownership and legal form 61 102-6 Markets served 13 102-7 Size of the organization 9 102-8 Information on employees and other workers 10 102-9 Supply chain 10 102-10 Significant changes in the organization and its supply chain* - 102-11 Precautionary principle or approach 51 102-12 External initiatives 19 102-13 Membership in associations 19 102-14 Statement from senior executives responsible for decision making 4 - 5

* No changes were made

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[GRI 102-55] GRI Standard Content Page Number Omission 102-15 Key impacts, risks, and opportunities 51 102-16 Values, principles, standards, and norms of behavior 12 and 18 102-18 Governance structure 28 - 29 102-40 List of stakeholder groups 22 - 23 102-41 Collective bargaining agreements 49 102-42 Stakeholder identification and screening 22 102-43 Approach to stakeholder engagement 22 102-44 Key topics and concerns raised 22 - 23 102-45 Entities included in the consolidated financial statements 64 and 65 102-46 Definition of the contents of the reports and Subject Coverage 21 102-47 List of material topics 21 102-48 Restatement of information* - 102-49 Changes in Reporting* - 102-50 Reporting period 3 102-51 Date of last report 3 102-52 Reporting cycle 3 102-53 Contact point for questions about the report 23 102-54 Statement of reporting in accordance with GRI Standards 3 102-55 GRI Content Index 72 - 79 102-56 External assurance* -

* No changes were made

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[GRI 102-55] GRI Standard Content Page Number Omission Material Topics Economic Performance GRI 103: 103-1 Discussion of the material topic and its coverage 53 2016 Management Approach 103-2 The management approach and its components 53 103-3 Evaluation of the management approach 53 GRI 201: 2201-2 Financial implications and other risks and opportunities arising from climate change 53 - 55 2016 Economic Performance Indirect Economic Impacts GRI 103: 103-1 Discussion of the material topic and its coverage 44 2016 Management Approach 103-2 The management approach and its components 44 103-3 Evaluation of management approach 44 GRI 203: Indirect Economic Im- 203-1 Infrastructure investments and services supported 13 pacts 2016 203-2 Significant indirect economic impacts 44 - 48 Anti-corruption GRI 103: 103-1 Discussion of the material topic and its coverage 28 - 30 2016 Management Approach 103-2 The management approach and its components 28 - 30 103-3 Evaluation of the management approach 28 - 30 GRI 205: 205-1 Operations assessed for risks related to corruption 30 2016 Anti-corruption 205-2 Communication and training on anti-corruption policies and procedures 31 205-3 Confirmed cases of corruption and actions taken 31

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[GRI 102-55] GRI Standard Content Page Number Omission Energy GRI 103: 103-1 Discussion of the material topic and its coverage 56 2016 Management Approach 103-2 The management approach and its components 56 103-3 Evaluation of the management approach 56 GRI 302: 302-1 Energy consumption within the company 56 2016 Energy Water and Effluents GRI 103: 103-1 Discussion of the material topic and its coverage 58 2016 Management Approach 103-2 The management approach and its components 58 103-3 Evaluation of the management approach 58 GRI 303: 303-1 Interaction with water as a shared resource 58 2018 Water and Effluents 303-2 Management of impacts related to water discharge 58 303-3 Water withdrawal 58 303-5 Water consumption 58 Biodiversity GRI 103: 103-1 Discussion of the material topic and its coverage 51 - 52 2016 Management Approach 103-2 The management approach and its components 51 - 52 103-3 Evaluation of management approach 51 - 52 GRI 304: 304-1 Operations centers owned, leased or managed located within or adjacent to protected areas or areas 52 2016 Biodiversity of high biodiversity value outside of protected areas 304-2 Significant impacts of activities, products, and services on biodiversity 53

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[GRI 102-55] GRI Standard Content Page Number Omission 304-4 Species on the IUCN Red List and national conservation lists whose habitats occur in areas affected 69 - 71 by operations. Emissions GRI 103: 103-1 Discussion of the material topic and its coverage 57 2016 Management Approach 103-2 The management approach and its components 57 103-3 Evaluation of management approach 57 GRI 305: 305-1 Direct GHG emissions (Scope 1) 57 2016 Emissions 305-2 Indirect GHG emissions from energy generation (Scope 2) 57 305-3 Other indirect GHG emissions (Scope 3) 57 Waste GRI 103: 103-1 Discussion of the material topic and its coverage 59 2016 Management Approach 103-2 The management approach and its components 59 103-3 Evaluation of management approach 59 GRI 305: 306-1 Waste generation and significant waste-related impacts 59 2016 Waste 306-2 Management of significant waste-related impacts 59 306-3 Waste generated 59 Environmental compliance GRI 103: 103-1 Discussion of the material topic and its coverage 51 2016 Management Approach 103-2 The management approach and its components 51 103-3 Evaluation of management approach 51 GRI 307: 307-1 Non-compliance with environmental laws and regulations 51 2016 Environmental compliance

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[GRI 102-55] GRI Standard Content Page Number Omission Environmental assessment of suppliers GRI 103: 103-1 Discussion of the material topic and its coverage 42 2016 Management Approach 103-2 The management approach and its components 42 103-3 Evaluation of management approach 42 GRI 308: 308-1 New suppliers that have passed evaluation and screening filters in accordance with environmental 42 Environmental assessment of criteria suppliers Child labor GRI 103: 103-1 Discussion of the material topic and its coverage 50 2016 Management Approach 103-2 The management approach and its components 50 103-3 Evaluation of management approach 50 GRI 408: 408-1 Operations and suppliers with significant risk of child labor cases 50 2016 Child labor Forced labor GRI 103: 103-1 Discussion of the material topic and its coverage 50 2016 Management Approach 103-2 The management approach and its components 50 103-3 Evaluation of management approach 50 GRI 409: 409-1 Operations and suppliers with significant risk of cases of forced or compulsory labor 50 2016 Forced or compulsory labor

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[GRI 102-55] GRI Standard Content Page Number Omission Human rights GRI 103: 103-1 Discussion of the material topic and its coverage 49 - 50 2016 Management Approach 103-2 The management approach and its components 49 - 50 103-3 Evaluation of management approach 49 - 50 GRI 412: 412-1 Operations subject to human rights impact assessments or reviews 49 - 50 2016 Human Rights Assessment Local communities GRI 103: 103-1 Discussion of the material topic and its coverage 44 2016 Management Approach 103-2 The management approach and its components 44 103-3 Evaluation of management approach 44 GRI 413: 413-1 Operations with local community participation, impact assessments and development programs 44 - 48 2016 Local Communities

78 ANNEXES Edificio Corporativo Arona Av. Juan de Arona 720, Of. 601 San Isidro, Lima 27, Perú Telephone: +51 (1) 7126600 [email protected] CONNECTIONS www.isarep.com.pe THAT INSPIRE