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 Red de Energía del Perú (ISA REP) 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, 2020 will be remembered as a historic year, not 2019, in revenue and amortization, shows an EBITDA growth only by our organization, but by the entire world of 2.7% for 2019 maintaining net profit for similar values, only due to the enormous challenge generated by the changed by income tax, associated with higher revenue. Addi- spread and control of COVID-19. tionally, at the end of 2020, assets amounted to USD 502.01 MM and equity of USD 170.41 MM. Meanwhile, the risk rating Despite the various changes in all economic sectors, ISA REP carried out by specialized agencies confirmed the strength and proved its success, transforming its processes, to continue financial soundness of ISA REP, keeping the AAA rating for its offering the quality service that millions of Peruvians needed bond issues in Peru. during this period, thus contributing to their development and well-being. In 2020, ISA REP put Expansion No. 20 project into commercial operation, with an investment of USD 26.6 MM, which increased Therefore, I am pleased to share with you the results of ISA the reliability of the transmission system in various parts of the REP management during 2020, which show excellent financial country. In this way, the company maintains its position as one and operational performance, as well as fulfillment of relevant of the most important players in the transmission of high volt- milestones, which reaffirm our leadership in the electricity sec- age energy in the country, with a total network availability of tor and our purpose of generating CONNECTIONS THAT IN- 99.71%. SPIRE with our stakeholders, despite the uncertainty. On the other hand, during 2020 we understood that we had At the financial level, ISA REP ended 2020 with a Net Profit of to join forces with the State, academia, researchers and other USD 46.21 MM and EBITDA of USD 122.8 MM, which, after private sector companies, to bring help to those who were the removing the extraordinary events that occurred in fiscal year

4 [GRI 102-14] most affected by Covid19 in our society. For this reason, we de- strated during 2020 by concluding the RPA’s development, the ployed the “We are All One” humanitarian campaign, through use of augmented reality glasses to monitor our operation and which we have invested more than USD 600 thousand. Among implementation of the BIM methodology in the design of trans- our contributions are the delivery of food and health kits to the mission projects. These are milestones that I am convinced are most vulnerable communities. Also, encouraged by Peruvian proof that the future, despite the current restrictions, is very talent and its innovation capacity, we financed the construc- promising. tion of 100 mechanical ventilators to strengthen the service of intensive care units (ICU) in hospitals of Peru; and, we con- On the other hand, I thank the contractors and suppliers of the tributed to the research of cheaper and more accessible rapid company, who faced a year of many changes together with us. molecular tests. However, we worked jointly to continue delivering quality service to the country. I thank ISA REP employees who have demonstrated resilience and adaptability during this challenging year, which are key ca- With total transparency, we deliver this document to you with pabilities of those who are part of Grupo ISA. Despite the abrupt the firm conviction that you will find in it the necessary informa- changes of working from home in a complete virtual manner that tion to contextualize the management of ISA REP in the year we have all experienced, they have more than proven that we 2020. have the best talent in the market at the company. This fact is ratified as we were selected in the Great Place to Work ranking Sincerely, as one of the best industries to work with during 2020 in Peru.

Likewise, our talent has consolidated its passion to innovate and transcend the transformation of the sector. This was demon- Bernardo Vargas Chairman of the Board - ISA REP

5 2020 Milestones

We were recognized by the Ministry of the Environment for our excellent practices in favor of the environment. We invested more than half a million dollars to help fight the COVID-19 health emergency. For the Jaguar International Month, we organized together with the Ministry of the Environment and other In Alliance with Pontificia Universidad Católica del partners, the “Reconnecting with the jaguar” event. Perú, we delivered 100 MASI mechanical ventilators to the ICUs that most needed them in the country. We reaffirm the excellence of our processes through the renewal of our SIG+ System. Through an agreement with Universidad Peruana Cayeta- no Heredia, research on rapid molecular tests was financed, among other contributions. Grupo ISA and Construcciones El Cóndor created Intercon- exiones Viales to participate in the highway infrastructure sector in Peru and Colombia. The Conexión Jaguar program and the implementa- Start of construction of the improvement and expansion proj- tion of the Medical Oxygen plant for Chanchamayo ect of Instituto Superior Tecnológico Peruano ‘Luis Felipe de obtained first places in two categories of the 2020 las Casas Grieve’. The project is carried out in consortium Sustainable Development Award from the National with MINSUR and will benefit 1,200 students. Society of Mining, Oil and Energy. Likewise, our campaigns We Are All One and Together against COVID: Economic Reactivation were awarded second places. We were recognized by Pacífico Seguros for our “Com- mitment to Health and Safety Risks Management at Work in the Company”.

We conducted the first internal HACKATHON to promote The Regional Energy Integration Commission recog- purposeful innovation within the organization. nized our management in Occupational Health and Safety. We are one of the 7 companies in the sector recognized from among 83 companies from 15 countries. ISA REP Figures

99.71 % 92 % of our 0 COMPLAINTS suppliers are LOCAL NETWORK availability due to corruption cases

dollars in of our 99.73 % EMPLOYEES 600,000 SOCIAL have received training on anti-corruption INVESTEMENT

0 FATALITIES +28,000 hours of TRAINING in our operations for our employees

7 1

Our Value Proposal

The energy we transport contributes to help in the fight against COVID-19 in order to allow more Peruvians stay at home and take care of themselves. Alberto Amaya, Maintenance Planning Specialist Our Value 1 Proposal

1.1. Who are we?

[GRI 102-1, 102-7]

We are Red de Energía del Perú S.A. (ISA REP), a leading company in the energy sector, dedicated to the construction, operation and maintenance of high voltage electric power transmission lines in 21 regions of Peru. ISA REP was born in 2002 after winning an international tender to operate the transmission lines awarded as a concession by the Peruvian State.

ISA REP manages two important companies in the sector:

Consorcio Transmantaro (ISA CTM), the company re- Interconexión Eléctrica ISA Perú (ISA Perú) was creat- sponsible, since 1997, for the concession of the Man- ed in 2001 to undertake for 32 years the concession of taro-Socabaya power transmission line, which links the the Oroya-Carhuamayo-Paragsha-Vizcarra 220 kV and Central-Northern Interconnected System with the South- Aguaytía-Pucallpa 138 kV electrical transmission lines, ern Interconnected System of Peru. It was the first com- with their corresponding substations. pany in the energy sector in Latin America to issue green As part of its expansion strategy, in 2020 it acquired the bonds. company Orazul Energy Group, owner of Etenorte and Eteselva, which operate six transmission lines with a total of 746 km.

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.

able 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 NuestraOur Value propuesta 1 deProposal valor

Our Purpose [GRI 102-16] We generate connections when:

We transport high voltage power that drives the development We are aware that we are all one. and well-being of millions of Peruvians. To achieve this, we We are sure that our wellbeing is the others wellbeing. take action on our purpose: We know that excellence is the result of the demand with which we approach each act of life. ISA REP, connections that inspire We recognize that our planet is fragile and must be cared for. We understand that our actions, no matter how small, Likewise, to provide solutions that contribute to solving have an impact. society’s challenges together, we are guided by our princi- We discover that the change we want for the world is ples. We want to make each connection an inspiring act, in each of us. reflecting effort, commitment and the way we look at the We are moved to know that we are made for great world. challenges. We are committed to having a constructive and responsible participation in decision-making.

12 NuestraOur Value propuesta Proposal de valor Our Value 1 Proposal

Nuestras líneas de negocio [GRI 102-2]

Transmission

We provide uninterrupted high and very high voltage electric power transportation service from power generation plants located throughout the country and then deliver it to distribution companies and free customers. “Being allies of our customers in traditional issues such as power Operation transmission is not enough for us. We We manage transmission facilities in their planning, real-time execution, evaluation and improvement want to provide better alternatives, new stages. We guarantee optimal operation and reliability of the service of our facilities and those of our cus- options, help them explore and develop tomers, through two control centers (main and backup). them within their companies so that they can be sustainable, and thus go together Maintenance toward a path of steady growth and development”. We carry out preventive and corrective maintenance of transmission lines, power substations and high

and very high voltage equipment throughout the country. Darwin Padilla Employee - New Businesses Development

Connections with distributed energy solutions

We design energy storage solutions using state-of-the-art power electronics and battery systems, according to customer needs.

13 Our Value Proposal 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 49 electrical Machala Tumbes Iquitos CT. Tumbes Iquitos IQUITOS Zorritos TUMBES Nueva substations and more than 6 thousand kilometers of de 220, 138 and 60 kV circuits and lines that run through 21 regions. Iquitos

Reserva Fría Talara Reﬁneria Pariñas Intermedia PE. Campana Sullana [GRI 203-1] Piura 500kV Chira Tablazo Paita Chulucanas Rentema Piura Oeste Piura Centro Muyo PIURA La Niña Cumba 4 Bagua Sechura Jaén Rioja Moyobamba Our commitment is to continue expanding the electrical networks to bring energy to more Peruvians. To achieve this, we Caclic Bayovar La Niña Nueva Jaén Gera MOYOBAMBA Veracruz Felam Veracruz CHACHAPOYAS Tarapoto Carhuaquero Belaunde CHICLAYO Chadín Carhuaquero Chadín 2 Terry Cerro have implemented the following projects: Chiclayo Oeste Corona Celendín Nueva Celendín Nueva CT. Eten Reque Carhuaquero CT. Recka Gallito La Balsa Guadalupe Ciego CAJAMARCA Bellavista PE. Cupisnique Cajamarca Pacasmayo Cajabamba Juanjui La Ramada BRASIL Trujillo Norte Trujillo Nueva Alto Chicama TRUJILLO Tocache Reserva Fría Tocache Yarinacocha Trujillo Sur Nueva PUCALLPA Pucallpa Expansion No. 20 Pucallpa Nueva Moche Cañón del Pato DT NORTE Chimbote Nueva Kiman Ayllu Chimbote 1 Caraz Aucayacu Aguaytía Chimbote 2 Carhuaz Tingo María HUARAZ Antamina Tingo Nueva Pierina Yungas Chaglla We are happy to announce that, between November and December 2020, we put expansion No. 20 into commercial Huaraz Vizcarra Piedra Blanca Amarilis OCÉANO Conococha HUÁNUCO Marambuco Huánuco

PACÍFICO Paramonga Nueva operation. This ambitious project will increase the reliability of the transmission system in various parts of the country Paragsha Paramonga CERRO DE PASCO Yuncán Cahua Yaupi Medio Mundo Carhuamayo Huacho Cheves La Oroya Campas Huanza Yanango to respond to the growth in energy demand. The scope of the project consists of the installation of new power trans- Chimay Lomera Pachachaca Carabayllo Caglia Cajamarquilla Orcotuna Zapallal Tambo Ventanilla HUANCAYO Carapongo Huayucachi Mirador Callahuanca Chavarria LIMALIMA Lomera Sta. Rosa Pomacocha Cerro del Águila formers in the Combapata (30 MVA), Huánuco (50 MVA), Tingo María (30 MVA) and Tocache (20 MVA) substations. Carabayllo Carapongo San Juan Planicie Mantaro Platanal Restitución 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 Dolorespata invested Chincha USD 26.6 MILLION Sta. Rosa Cangallo Abancay Urub 320 Sauces Independencia Abancay Nueva Quencoro San Gabán ABANCAY Industriales Independencia Chuquipampa Kayra LIMA Ica Combapata ICA San Juan Ato Pradera Vizcatan Bambas Pachacutec Kallpa Onocora USD 4.1 MILLION of estimated annual revenue Platanal DT CENTRO San Rafael Chilca 1 Cotaruse Sicuani Chilca Nazca Termochilca PE. Tres Tintaya Tintaya Las Flores Hermanas Nueva Azángaro CT. Fénix PE. Marcona Poroma Marcona Ayaviri San Nicolás Huancané Mina Juliaca 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 500 kV Yarabamba REP Repartición Cerro Papujune Northern Transmission Central Transmis- Southern Transmission Verde 220 kV Mollendo Pto. Bravo Botiﬂaca CT. Mollendo San José ISA PERÚ 138 kV MOQUEGUA Toquepala Moquegua Aricota 1 Y 2 60-66 kV Head office Department: sion Department: Department: TRANSMANTARO CT. Ilo Tarata Ilo Central hidráulica proyectada Mill Site OTRAS EMPRESAS Central hidráulica Tomasiri Los Heroes Central térmica Calana TACNA Central eólica DT SUR La Yarada Av. Juan de Arona 720, Of. Av. Miguel Bartra Gonzales Av. Prolongación Pedro Carretera Sector Umapalca Subestación existente Subestación proyectada CHILE 601, San Isidro 500, Urb. Las Brisas, Chiclayo, Miotta 421, San Juan de s/n, Socabaya, Arequipa Convertidor de frecuencia 60/50 Hz Parinacota Arica Lambayeque Miraflores, Lima. www.rep.com.pe CONEXIONES QUE INSPIRAN

14 Our Value Proposal

www.rep.com.pe CONEXIONES QUE INSPIRAN 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*, 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 • Manage finances options (FERNC**) optimized performance and min- ASSETS ASSETS • Manage reputation and imized risks in their entire life cy- Business macro- sustainability • Storage • Distributed cle, whether as concessions to processes energy services • Manage general services ISA REP, ISA CTM and ISA Perú. • Exercise internal control and compliance duties In 2019, we were the first com-

Planear y evaluar el negocio Energy RENEW AND MANTAIN ET • Implement legal pany in Peru and Latin America Facilitate new energy businesses Business Planning and Assessment USE ET ASSETS management to obtain ISO 55001:2014 certi- ASSETS fication. In 2020, we passed the Activation macro- first external follow-up audit with processes *OR = Network operators **FERNC = Sources of Non-Conventional Renewable Energy 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 transversal 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

e for alu sh v a e re Invest USD 980 MM in current businesses t h a r o and geographies Achieve a minimum increase of Include strategic l e d

n e 80% in EBITDA partners for growth

r s G Achieve efficiencies ofUSD 4 MM in TOTEX of core and support

nvironme e n d ta Generate benefits withhigh n l a i impact social programs Establish alliances m l

a p to develop social i Compensate 5.8 MM Invest in

c a

c and environmental

o 2 t TN of CO e undertakings S Comply 100% with the projects programs deadline and the expected reliability level SUSTAINABLE VALUE SUSTAINABLE rporat co e e va Enable organization capabilities to r l u id s Invest USD 127 MM in new electric energy optimize competitive advantage and Establish alliances to i n t y E businesses achieve higher performance in 90% of improve competitiveness employees and develop capabilities

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: e for alu sh v a e re Generate value for shareholders 2020 Target value 2020 Value reached t h a r o e l d Adjusted EBITDA REP + CTM 306.480 MM USD USD 317.718 MM n

r s 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

nvironme e n Social and environmental impact 2020 Target value 2020 Value reached d ta n l a i m l Unscheduled ENS REP + CTM 338,100 MWh 416,690 MWh a p i

c a

t S 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

rporat co e Ensure corporate validity 2020 Target value 2020 Value reached e va r l u id s i n t Efficient employee performance 87.00% 91.00% y E Internal coverage of critical positions 70.00% 40.00% 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 67 - 69 Sustainability Businesses should support and observe the protection of internationally proclaimed human rights. Principle 2 Page 67 - 69 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 39 and promoter of development in tive bargaining. Principle 4 the country. Page 67 - 69 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 67 - 69 planet’s environmental challenges and sensitive to various so- Businesses should uphold the effective abolition of child labour. cial realities, we aim at creating value for our stakeholders with Principle 6 Page 67 - 69 respect for humankind in an ethical and transparent environ- Businesses should uphold the elimination of discrimination in respect of employment and occupation. ment. Principle 7 Page 71 Businesses should support a precautionary approach to environmental challenges. Global Compact Principle 8 Page 70 - 80 [GRI 102-12, 102-13] Businesses should undertake initiatives to promote greater environmental responsibility. Principle 9 For 15 years, ISA has been a signatory to the United Nations Page 70 - 80 Businesses should encourage the development and diffusion of environmentally friendly technologies. Global Compact. We reaffirm our commitment to its ten funda- Principle 10 mental principles, on which we have reported our performance Page 32 - 35 Businesses should work against corruption in all its forms, including extortion and bribery. and progress made during the year.

19 Our Value Proposal Our Value 1 Proposal

Sustainable Development Goals Sustainable Development Contribution Initiatives and Projects Go to: We are committed to the United Nations 2030 Agenda and, Goal through our business, we seek to actively contribute to the Sus- We promote educational development of children, • Back to school with ISA REP tainable Development Goals (SDGs). The following table shows youth, and adults with the support of strategic al- • ISA REP Scholarship Page lies. the prioritized SDGs and the initiatives and projects that we are • ISA Volunteering “Digital Teachers” 59, 60 and 66 currently working on: • Empoderatec Chanchamayo

We use state-of-the-art technology to contribute to • “Bio-Productive Families” Open Innovation the improvement of the community infrastructure. Challenge Page • Warm and clean houses 63 and 65

We seek that our suppliers have sustainability as a • GRI’s Competitive Business Program competitive advantage. • Huertos en línea Page • Medicinal plants garden 53, 61 and 62

We build and implement works for the benefit of • Works for taxes society, at the infrastructure level, which have a • Bio-Productive Families Page positive impact on the education of thousands of • Warm and clean houses 62, 63 people. and 65

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 • “Praderas de vida” Medicinal Garden 61 and of our electricity easement for grazing and agricul- 62 ture activities.

20 Our Value Proposal Our Value 1 Proposal

Sustainable Development Contribution Initiatives and Projects Go to: Goal We demonstrate our commitment to major global • Conexión Jaguar causes such as climate change mitigation through • Bio-Productive Families Pages carbon components in forest recovery and preser- • Warm and clean houses 63, 64 vation projects, in order to reduce GHG emissions. and 65

We contribute to the fulfillment of the Internation- • Conexión Jaguar al Convention on Biological Diversity (CBD) and to the commitments acquired by the countries at the Page XXI International Conference on Climate Change 64 of the UN.

Together with organizations that share our vision, • Innovation programs we cooperate in various fields of social action. • Corporate volunteering • Alliances with State institutions: - Municipalities - MINAM Pages • Alliances with the cooperation sector: 65 and - Perú Champs NGO 66 - UGEL of our areas of influence - Instituto de Desarrollo y Medio Ambiente • Alliances with associations and platforms such as Kunan, ALOXI.

21 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.

22 Our Value Proposal Our Value 1 Proposal

Stakeholders [GRI 102-40, 102-42, 102-43, 102-44] Stakeholders Communication Channel and Frequency Key Issues and Concerns Our ethical action model is based on three pillars: generation of trust, sus- Collaborators • Work environment survey (annual) • Greater proximity to the leaders of the com- tainable development, and value for our stakeholders. We prioritize dialogue • Performance evaluation (annual) pany and collaboration processes with our stakeholders in order to identify their • Intranet (permanent) • Greater communication about the future plans of the company expectations and needs. • Training (permanent) • Greater independence ISA parent compa- • Reputation survey (biannual) It is important to us to strengthen and improve our relationship with each of ny • Attraction, development and care of talent our stakeholders; for this reason we maintain open and transparent com- • Occupational health and safety munication channels in order to generate relationships of trust. Our stake- Suppliers and • Satisfaction surveys (annual) • Greater proximity to the leaders of the com- holders were identified considering our environmental, social and economic contractors • Reputation survey (biannual) pany impacts, as well as their proximity to our operations. • Workshops • Greater communication about the future plans of the company • Annual relationship building event • Greater independence from the ISA matrix • Periodic relationship building through the supply area 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

23 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]

24 Our Value Proposal 2

Our Response to COVID-19

Thank you ISA REP for always being with us, calling us and supporting us, especially during the pandemic. Sucy García, member of “Praderas de Vida” Community Garden 2 Our Response to COVID-19

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. With the efforts of each of our employees, we reformulated our processes to face an unprecedented situation. We implemented the “Control Center Operational Bubble” plan, which consisted of isolating operators to concentrate in a hotel 20 minutes from the Control Before the first case was reported in Peru, we re- Since March 15, 2020, our collabo- Center in order to reduce the risk of personnel con- Our measures stricted access to foreign guests and suppliers. We to ensure the rators began their remote work with tagion and ensure that a number of operators nec- switched from face-to-face to virtual meetings and continuity of our portable equipment, accessories and essary for safe operation of the system were present services suspended our staff’s trips abroad as a preventive services, which we provided entirely. at the Main and Alternate Control Centers. and protective measure.

Two spaces for operation were available at the Con- We started weekly monitoring of trol Center building in the San Juan site (Main and the critical supplies status that With our suppliers: Alternate Control Centers) and the schedule for could impact, both in money and • We brought payment milestones forward. shifts was extended from 8 to 12 hours to reduce time, projects and ongoing main- • We reduced payment conditions. the number of interactions within the team. tenance.

“I am very proud to ensure that electricity supply reaches all corners of the country and allow activities that previously seemed obvious to us, such as charging a cell phone or cooking, now become more important in times of uncertainty. I am proud to support the doctors and police who give it all in this battle”.

Giorgio Ramírez Employee - Operations

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

We are all one require the use of a mechanical ventilator will have the oppor- Support to Communities and Towns of Conexión Jaguar, tunity to improve their condition. Huertos en Línea “Praderas de vida” Medicinal Garden Faced with the pandemic, our humanitarian strategy was for- The Vicariate of Pucallpa was benefited together with our sus- mulated in two axes that contributed to improving quality of life: Rapid molecular test to detect COVID-19 tainability allies Conexión Jaguar in Ucayali and health per- We also made a donation for rapid molecular test research to sonnel in health posts (basic health centers) with food and help detect the coronavirus, carried out by Universidad Peru- COUNTRY OUR medical supplies. Likewise, in alliance with Amazónicos por ACTION ENVIRONMENT ana Cayetano Heredia (UPCH). Our contribution had an esti- la Amazonía (AMPA), we supported families from the Conser- mated value of USD 100,000 and is part of our commitment as vación Alto Huayabamba (CCAH) Concession in San Martín, WE ARE ISA REP with social investment in innovation for research and and families in Loreto, who were stranded in Iquitos at that ALL development of health technology. ONE time. Face shields for frontline personnel We also made a donation of emergency food kits to 510 urban Country Action Axis Thanks to the alliances established with Tinittus Perú and Jug- farmers and medicinal plant gardeners in San Juan de Mira- uete Pendiente, we donated 3,000 face shields for personnel Aimed at strengthening the Peruvian health system, through flores and Villa María del Triunfo, thanks to the alliance we most exposed to COVID-19 during the state of emergency. The investment in Innovation and Development (I&D), but also with have with Juguete Pendiente. the donation of medical equipment to fight COVID-19 as part benefited institutions were Luis Heysen Inchaustegui Regional Moreover, in alliance with Rotoplas and Brujhas, they received of our support to the Peruvian State. Hospital in Chiclayo, Honorio Delgado Espinoza Regional Hos- pital in Arequipa, Villa El Salvador and Dos de Mayo Emergen- water storage tanks and masks. MASI mechanical ventilators cy Hospitals in Lima, and the Ministry of Transportation and In the case of our urban farmers of La Esperanza and el Por- In alliance with Pontificia Universidad Católica del Perú (PUCP), Communications (MTC). venir in Trujillo, we had the opportunity to support them with we supported the development and production of 100 MASI vouchers to buy basic food supplies. In this activity, we part- mechanical ventilators, which were delivered to the Ministry Our Environment Axis nered with SODEXO to deliver such donations, through vouch- of Health (MINSA). To achieve this, we made a contribution ISA Group is committed to the economic reactivation of the ers that could be exchanged in supermarkets. of USD 500,000. Thanks to the MASI devices, people from communities of influence of our power transmission projects different parts of the country who have a serious condition and and the following projects:

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

Support to vulnerable communities and towns Our People Axis situations that could arise in each of the homes of our employees. Thanks to the alliance with Juguete Pendiente we provided We know that to keep our employees informed about the support to 8,550 people from Chiclayo, Arequipa, Trujillo and COVID-19 situation it is important to activate our communi- • We provided psychological therapy for workers coping with Lima. Part of this support consisted of 1,000 emergency food cation channels. Therefore, through this axis, prevention and the disease or having a family member with COVID-19. kits, thanks to the solidarity contribution of our employees. In control actions were deployed from the Wellbeing and Internal • Through the Reponte Express Nutritional program, our em- the capital, we provide support to Barranca, Pativilca, Pach- Communication areas in two-way and digital mode. ployees can check their body mass index (BMI) and oth- acamac, Villa María del Triunfo, and San Juan de Miraflores. er aspects related to their diet, avoiding risk factors for • We hired the services of an expert epidemiologist to join This donation was made in partnership with Internexa and also COVID-19. forces in the formulation of strategies with the occupational included health kits. • We created the War Room committee to attend to various health team extended nationwide. processes as a result of the COVID-19 situation. To transpar- Support to communities in state of emergency • We activated and reinforced biosecurity protocols on self- ently communicate our actions and decisions, we selected Shortly before the spread of COVID-19 in our country, the dis- care, cleaning of environments and restricted access to virtual spaces so that our employees could ask live ques- trict of Santa Teresa (Convention province, Cusco region) was work areas. tions to this team. affected by a natural disaster: a flood completely damaged • We have a preventive isolation plan for our employees work- • In order to achieve personal and work balance, we assigned the communication routes (roads and main bridge) to various ing on-site, in case symptoms are reported, and an epidemi- a time slot from noon to two in the afternoon to dedicate it towns. Our support consisted of 60 bags with basic food sup- ological fence activation plan with COVID-19 tests, accord- to housework. We started Fridays without meetings, in order plies for the community of Colpapampa and the rehabilitation ing to medical relevance. to create spaces to develop ongoing projects, trainings or of Sallkantay pedestrian bridge”. This benefited 5,972 people, • Since clinics were closed during the first months of the pan- check emails. including households that are part of informal economies as demic, we offered a free hotline to provide guidance and they were the most affected by COVID-19. telephone medical attention to our employees and their families, as well as an emotional support line to face the

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Using these and other tools, we started a communication plan that includes the following actions:

By taking care To ensure awareness of employ- of yourself, we ees on biosecurity measures Live with A 20-minute daily conversation program during the first 4 take care of Carlos Mario and corporate guidelines against months of the pandemic. Our leader and general manager COVID-19. spoke on the way to adapt to the new normal. The program is currently held on a monthly basis.

A group of volunteer employees, on a monthly basis, I care for you make calls to colleagues who are on leave, delivering ISA REP We offer 7-minute-long content through Soundcloud and Podcast messages related to prevention, self-care and opti- WhatsApp. The podcast has a mix of content: entertain- mism in the face of the global pandemic. ment, biosecurity measures, emotional support, business strategy, etc.

Additionally, we proposed technological solutions to speed up the transition to remote work and the new digital reality.

• In just two weeks, we implemented the “Daily Health App” web and mobile application which allows real-time monitoring of the physical and emotional health of employees and their families. • We purchased the DocuSign solution software for signing documents electronically, especially, for commercial contracts.

• In order to further protect our digital identity, we implemented the double factor authentication (2FA) system against Phishing and Impersonation attacks, and the cyber intelligence service. • We used digital invoices and constant confirmations in the system to guarantee the payment chain of our suppliers and employees.

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Transforming conversation and accompaniment spaces to the digital modality has been a challenge. To overcome this, we strengthened digital channels and accelerated the use of many Zoom Microsoft Teams available tools that allowed effective communication in real time. For entertainment purposes, after Webcasts and webinars were devel- office or camaraderie meetings were oped for educational, awareness and held. transparency purposes.

Yammer Success Factors

Internal social network that promotes We supported the performance conversations and reinforces institu- management process, recording in- tional information. formation on goals, follow-up comments, feedback and final calibration required by the internal communication team of ISA REP.

Email 15 minutes #SoyDigital Finally, we recognize the importance of promoting innovation To send the “Cuidándote nos Cuida- Biweekly micro webcast that pro- during these difficult times. For this reason, we carried out our mos” newsletter and formal notices motes digital skills. first internal hackathon to receive ideas from all employees to relevant to the current situation. face the challenges that the new normal is posing. Additionally, employees of ISA Group participated in the ideation workshop “COVID ISA Ideas and Lessons Learned”. For more details, we invite you to review chapter 4.

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We Generate I am very proud to ensure electricity supply reaches every corner of the country Value for and allows activities that once seemed obvious to us, Shareholders such as charging a mobile phone or cooking, now take on greater importance in times of uncertainty Giorgio Ramírez, Control Center 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 environment Audit Committee Bernardo Vargas Gibsone July 14, 2015 of trust, transparency and accountability that generates value Duties: Isaac Yanovich Farbaiarz May 13, 2020 for our shareholders. As part of our practices, we have specific Guido Alberto Nule Amín July 31, 2002 • Assist the board of directors in fulfilling their oversight guidelines that guide the actions and decisions of our employ- Yolanda Gómez Restrepo May 13, 2020 responsibilities concerning the financial statement is- ees, directors and executive level. 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 corporate • Meetings are held 4 times a year or as needed. governance standards in our organization.

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[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

REP. 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.

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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

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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.

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.

We train all our new employees on our guidelines, business ethics and compliance program, and the ethical line. In 2020, 99.73 % of employees were trained. In addition, we make podcasts and webcasts available to all our employees on topics related to ethics and corporate governance.

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We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

4.1. Our Team

[GRI 102-7, 102-8, 103-1, 103-2, 103-3]

At the end of 2020, ISA REP was made up of 384 employees, Figure 3: Number of Workers per Region 17.5 % women and 82.5 % men. Of the total of employees,

49.74 % are between 30 and 50 years old; 31.93% are over 2020 174 52 94 64 50 years old; and 18.33% are less than 30 years old. Also, the 2019 177 53 96 62 total is distributed in the following generations: 39% is generation X followed by 39% considered millennial, and, 22% baby San Isidro DT Norte DT Centro DT Sur boomers. They all have a full-time contract. Finally, 45% of our Figure 4: Number of Workers per Age Range employees worked in Lima; and, the 55%, in other regions of

Peru. 2020 72 190 122

Figure 1: Number of Workers per Gender 2019 63 201 124

Less than Between Older 2020 317 67 30 30 & 50 than 50

2019 321 67 Figure 5: Number of Workers per Generation

Men Womwn 2020 149 149 86 Figure 2: Number of Workers per Type of Contract 2019 140 154 94

2020 329 55 Millenials Generation X Boomers (1981-1999) (1996-1980) (1945-1965) 2019 343 45

Indefinite Fixed employment employment contract contract

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[GRI 401-1] Benefits

During 2020, we made efforts to preserve employment and At ISA REP, we seek a comprehensive development of our employees. For this purpose, we have the following benefits: counteract the impacts deriving from the pandemic. In the case of terminations, we complied with procedures and compensation provided for in Peruvian legislation. For employees in a situation of vulnerability due to COVID-19 who could not carry out their activities remotely, we granted a paid leave of Flexible Schedule and Maternity & paternity Ergonomic Leave in case a direct absence. teleworking leave benefits relative is in serious

We have a voluntary retirement program aimed at our technical staff over 60 years of age. This program allows them to leave the company with financial and health benefits.

Table 1: Data on Recruitments and Turnover 2019 – 2020.

2019 2020 Leave in case of Christmas bonuses Pneumococcal and Total number of new 25 20 employees hired Alzheimer or other AH1N1 vaccination mental diseases campaigns Rate of new employees hired 6.00 % 5.00 % Rate of personnel turnover 3.13 % 3.89 % We share information about our benefits in induction meetings held for new workers, through our internal communication channels.

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Work Environment Collective Bargaining Our employees are free to join a trade union organization. Cur- [GRI 102-41] rently, our unions are made up of technicians. The objective of our measurement is to represent the collective perception of employees regarding our organizational climate. At ISA REP we have a union management policy founded on Single Trade Union of Red de Energía del Thus, we optimize the processes at ISA REP and strengthen the solid and constructive labor relations based on respect, trans- Perú (SUTREP): work environment that encourages work relationships, organi- parency and commitment. The components that help us build • Start date: October 2003 98 members zational health, productivity and life balance. With the results trust are the following: • They hold quarterly meetings. obtained, we executed a transversal work plan. Thanks to it, we • Freedom of association and open communication: transpar- identified to need to further strengthen the ISA REP Leadership ent and clear information, agreement compliance and ac- National Employees Union of Red de En- Brand and recognition mechanisms by the line manager. cess to the media. ergía del Perú (SINTREP): At ISA REP, the work environment was measured according • Union facilities: union licenses in addition to those provided • Start date: October 2014. 32 members to the Korn Ferry Hay Group methodology, in September. This by law, airfare and per diem for meetings with the company, • They hold monthly meetings. evaluation method is one of the most widely used and accept- and a financial grant for union operating expenses. ed worldwide for creating effective job evaluation frameworks • Preparation for negotiation and fluid dialogue: training in Because of the health crisis, meetings were held to inform our in all types of jobs. negotiation topics and regular meetings complementary to unions about the protocols and actions by ISA REP against COVID-19. We informed them about the labor relations of vul- Figure 6: Results on Employment Climate negotiation meetings. nerable personnel, as well as the purchase of medical sup- • Collective bargaining: medium-term union agreements that plies for job safety against the pandemic. You can find more 88% develop strong working relationships and sustainable hori- 2020 information about our key actions for the COVID-19 situation in 89% zon agreements. In the last negotiations, agreements have Annual goal Chapter II of this report. been reached for five years, being the pioneers in the ener- 87% Survey results 2019 88% gy sector in Peru.

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Training and Knowledge Figure 8: Level 1 Personnel Training Hours [GRI 103-1, 103-2, 103-3,404-1, 404-2] 50 Total At ISA REP, we want our team to feel motivated, trained and 124.5 “In 2020, we had a great challenge as empowered. Therefore, we care about developing skills that a society: to adapt to a life of relating allow them to reach their full potential. 2020 2019 through a virtual setting on a day-to- Figure 9: Level 2 Personnel Training Hours day basis. We were aware of this at ISA We focus on consolidating a culture that drives transforma- REP. Our service had to continue and, in tion, through the development of new organizational capabil- 1420.5 line with this, the development of our ities, key competencies and the implementation of new agile Total 2215 employees continued as an important work systems and improvements in organizational design, with 929.5 focus. Our Learning Plan became 100% an emphasis on digitization. Along the same lines, the training Men 1554 virtual through courses, workshops, hours provided to employees have been 28,492.8 hours in to- conversations, mentoring and coaching tal with an average of 74. 2 hours per person. Women 491 661 sessions; that is, synchronous (with live and direct participants) and asynchronous 2020 2019 (with previously recorded study material) Figure 7: Average Training Hours per Gender Figure 10: Level 3 Personnel Training Hours learning spaces.

74.2 28,883.50 I am proud to belong to an organization Total 62.3 Total 21,814.00 that continuously promotes learning and 25,143.00 Men 78.9 Men development of its personnel!”. 59.8 17,571.00 Alexis Lozano Mendoza Employee - Organizational Talent 3,740.50 Women 54.3 Women 74.3 4,242.00

2020 2019 2020 2019

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At ISA REP, the main goal of learning management is to enable a. Technical Specialized Training Self-development work the knowledge necessary to achieve corporate strategy. To do Through the Azure digital platform, cybersecurity in OT net- We have programs aimed at developing personal skills such this, we systemically connect strategy with performance man- works, with BIM processes and licenses to use and manage as self-leadership development. We believe that this quality ar- agement and learning. drones. We are currently in the process of defining the content ticulates quality, continuous improvement processes and trust that we will offer for the advanced analytics module. On the For us, the learning cycle comes from a balance between skills, in each of ISA REP’s employees, generating connections that other hand, we offer specialized knowledge in our core busi- knowledge and attitudes. Therefore, we consider a three-step inspire. ness such as power systems for the Operations Department, cycle: evaluation, learning and feedback. a. Self-Leadership Development Program (PDA) programming for the Operations Department, specialization in We develop personal skills aligned to capacities such as confi- With the onset of the pandemic, we updated policies and took Live Work and Technical Arc, inductive equipment design, hu- dence, empowerment and resilience. This knowledge not only advantage of the benefits of digitization to exploit training op- man factors, among others. allows our employees a better communicational performance, tions more widely. Due to this strategy, and together with our b. SIG+ Training but also self-knowledge and emotional identification. To date digitization tools, we generated multi-area groups connect- Through virtual courses, this training program emphasizes the we have more than 60 graduates and satisfied employees with ed simultaneously by networking their learning. Through the areas of occupational health and safety, environment and asset this program. Learning and Development area, we have three fronts directed management. We have a simulator to use and handle fire ex- in a different way to employees and technicians: b. Training in situational awareness tinguishers for operations in substations and prevention cours- Our employees learn to become aware of their own well-being es against COVID-19, good eating habits, emergency brigade Ensuring Operational Excellence and safety. These tools allow them to strengthen aspects of know-how, and key data from the safety and health at work We maintain a permanent search for operational excellence. self-esteem and balance between professional life and person- committee. For this purpose, we train our employees constantly. We divide al life, thus generating a multiplier effect inside and outside the programs according to training needs into the following: c. Specialized training in occupational health and safety organization. This year, 150 employees successfully complet- Theoretical virtual course with practical examples. ed this course.

c. Emotional Intelligence Training We provide information on how self-knowledge can lead us to adequate decision-making. These implications develop soft skills necessary for various day-to-day scenarios.

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Providing knowledge within everyone’s reach for skills development b. REP Learning We have more than sixty courses for skills development of our employees. Next, we present the We offer our employees programs focused on self-management. In this way, we reinforce the or- most outstanding and requested of 2020: ganizational capacities implemented in the organization. Institution Courses a. Knowmad Program edX Office 365 With the support of 7 internal facilitators, with 13 deployed courses, 193 seats and more than Microsoft Artificial intelligence for business leaders 2,300 hours of training, we promote skills development of our employees through three axes: TECSUP Cisco CCNA V7.0 certification Axis Course Universidad de Valencia Universidad de Valencia Digital Transformation • Power BI - Power Apps IBM Data Science Certification • Office tools • Data Analytics foundations Tutellus Artificial intelligence and Blockchain • Cibersecurity Tecnológico de Monterrey Transmission of electrical power • RPA Autohotkey Coursera Cybersecurity & IOT • SAP recording RPA Scripts Google Digital Competences for professionals • Machine Learning with Phyton • Digital mentality As for our security personnel, all of them have received induction into specific human rights pol- • Design thinking Innovation and icies or procedures and their application to security. This training is given to both our employees entrepreneurship • Ideation tools and third-party personnel. Similarly, this topic is considered during contractor induction. Adaptability • Agility mindset • Lean Change On the easement side, we carry out remote inductions to both contractors and subcontractors on • Management the need for high voltage transmission lines, precautions and recommendations. • OKR • Emotional intelligence for skills development As for sustainability issues, Contractor induction includes topics such as the definition of sustainability for ISA, stakeholders, management of social conflicts and commitments as suppliers.

In addition to all of the above, we have a specific training program for technical personnel with the aim of promoting the development of technical and personal capacities of the technical team to

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ensure our operational excellence. The development we gener- 2. I connect: commitment with performance and develop- At this stage, we use the Nine Box methodology, a double en- ate in them is aligned with our organizational capabilities such ment objectives try matrix with rating scales: low, medium and high. There, we as innovation, digital transformation and adaptability. We answer the question: Where are we going? place the evaluated subject according to the result achieved in the performance objectives and development objectives. The We know the organizational challenges and we agree with each next step is to perform calibration with the participation of an Performance Evaluation employee on the individual and team contribution to achieve evaluating team. The location of the evaluated subject is con- For ISA REP, adaptive, transformative and referential leader- them, through permanent conversations and challenging ob- firmed or modified in the Nine Box methodology. ship is a way of turning each connection into an inspiring act. jectives that drive development. Performance management at ISA REP has the following pur- 3. I provide support: continuous follow-up In order to monitor traceability of each of our employees’ per- pose: We answer the question: How will we know if we are on the formance, every year, we conducted two evaluations: Pulse survey and work environment and leadership assessment. Align our performance and development objectives achiev- right path? ing ISA 2030 Strategy At this stage, leaders regularly monitor their team on the Pulse Survey Recognize employees for their commitment and contribu- achievement of their objectives and business partners support tion to the achievement of strategic objectives this process. In the first survey, we obtained a favorable index of 91%, Encourage and promote self-development, through chal- considering the “Care”, “Gestalt”, “Leadership” and “Me, lenging goals We empower ourselves from our development and contribute my emotions and work” factors. to that of others, by delivering and receiving multidirectional In this way, we designed a guide so that continuous perfor- feedback on what is being achieved, and how the proposed In the second pulse survey we obtained a favorable index mance is evident in small daily actions. objectives are being achieved. of 92% for “Work environment” and 96% for “Engage- 1. I inspire: deployment of the strategy ment”. 4. I take charge: performance calibration and final evaluation We answer the question: What is ISA Group’s strategy and pur- We answer the question: What happens if we comply or not Work Environment and Leadership Assessment pose? with what has been agreed? This measurement showed a favorability index of 89%. We live the leadership brand; we promote ISA 2030 Strate- We celebrate achievements, review the results obtained and gy and we connect with the purpose of Performance Manage- define plans to strengthen the aspects that require it. ment.

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Cultural Transformation

Our culture strategy is developed based on a model made up of Building • It allows a cultural integration. two main components: determinant and formative components. together • It creates a space for participatory construction where we reinforce our identity and our business culture. • It seeks to develop all prioritized skills (digital transformation, adaptability, networking, innovation and Determinant components Formative components entrepreneurship, and operational excellence). • It is aimed at the entire organization. • The higher purpose • The administrative structure • The organization’s strategy • The processes Connections • We develop recognition among employees. • The abilities • Measurement systems with you • We want to stimulate, reinforce and highlight behaviors associated with organizational capacities. • The diversity • People and leadership • It seeks to develop all prioritized skills (digital transformation, adaptability, networking, innovation and entrepreneurship, and operational excellence).

In this way, a series of interventions have been carried out that Leadership brand • We promote awareness of the role of leader as an emotional manager. allow us to mobilize and develop the capacities that we seek for ISA REP. Reverse • As a mechanism for cultural transformation and the development of talent in a digital environment. mentoring • It boosts digital transformation through knowledge exchange and leadership development. Our focus is on the “Building Together” and “Connections with • It is aimed at employees with the potential to generate knowledge transfer and managers to enhance You” programs. On the leadership side, the development of the their digital skills. “ISA REP Leadership Brand” and the “Reverse Mentoring” program are handled as interventions. Additionally, we have initiatives that reach the environment of our employees outside the organization, such as the following:

Productive Aimed at employees’ wives to develop soft skills through craft workshops. hands

Loan We have different loan options, for example, for emergencies and studies, for purchase and maintenance programs of homes.

Youth Excellence We recognize the efforts of the children of our employees who are in secondary school, as well as their Program sports and arts talents.

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4.2. Occupational Health and Safety Table 2: Occupational Health and Safety Indicators for Own and Contractor Personnel 2019 – 2020.

[GRI 103-1, 103-2, 103-3,403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8] Own Personnel Contractors 2019 2020 2019 2020 Health and safety of our employees and contractors is a priority in our operations. Our Lost Days Rate (LDR) 0.00 0.00 5.67 17.18 objective is to promote safe behavior in our team and contractors, which allows us to man- Employee Absence Rate (EAR) 0.93 1.80 0.02 0.10 age the risks of accidents or occupational diseases. We guide this action from our integrated management system policy, the internal safety and health regulations at work and Number of injuries with brief absence (less than 5 days) 0.00 0.00 1.00 3.00 the safety, occupational health, environmental, social and quality manual for contractors. -employees

As evidence of our permanent commitment to safety, we managed to obtain the ISO Number of injuries with pro- longed absence (more than 5 0.00 0.00 4.00 8.00 45001 certification for Occupational Health and Safety Management System. days) -employees

Despite the challenging year we have experienced, our occupational health and safety goals were met. Additionally, we had no fatalities. Likewise, we are happy to report that, as We carried out identification and verification of risks, as well as implementation of controls in maintenance in 2019, the accident frequency rate and the occupational disease incidence rate of our activities such as in the construction of transmission lines and electrical substations, with our own per- workers remained at 0. sonnel and contractors, using the Work Safety Analysis and HIRA matrices. (Hazard identification, risk assessment and control measures), which are reviewed and updated once a year. Figure 11: Accident Frequency Rate - Contractors We focused safety management on our Behavior-based Safety Program, based on behavior. For this pur- 2020 2.45 pose, we monitored compliance with health and safety guidelines by employees and contractors. As part of the program, we used the REPienso application, through which employees identify and assess the risks, 2019 1.69 which allows us to commit all teams.

45 We Guarantee Corporate Validity We Guarantee 4 Corporate Validity

[GRI 103-1, 103-2, 103-3,403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8] Occupational Safety and Health (OSH) Commit- We have an Annual Occupational Health and Safety Training Plan which was approved by the Occupational Safety and Health Com- tee and Subcommittees mittee, and whose objective is to develop the knowledge, skills and attitudes in employees to perform a job with high health and [GRI 403-6] safety standards. As a result of the actions carried out, the Regional Commission on Integration Energy (CIER) acknowledged the In the committee and subcommittees we promote safe and good performance shown, through the Regional Survey on Health and Safety at Work 2020. In addition, Pacífico Seguros recognized healthy practices to prevent accidents and occupational dis- us by our “Commitment to Occupational Health and Safety Risks Management”. eases, we monitor compliance with legislation, internal regulations and technical specifications of the work. Here are the most relevant activities of 2020: We have an occupational health and safety committee, made TRASEREP + ISAFETY up of 4 workers’ representatives and 4 employer’s represen- The TRAbaje SEguro platform in REP was implemented to Through this application we identify deviations from safety, verify compliance with safety, health and environmental health and environment standards in real time to implement tatives, with their respective alternates. In addition, we have requirements by contractor companies. Currently, work is being preventive and corrective measures that allow us to take three occupational health and safety subcommittees, in the done on improvement of existing functionalities, user interface care of the physical integrity and health of our own workers improvement, work flow improvement, quick view approval, and contractors, and promote care for the environment. It north, center and south. The first two are made up of 2 workers’ among others. has five modules in its mobile and web version: inspections, interventions, audits, behavior-based safety, and accidents/ representatives and 2 employer’s representatives. The central incidents. subcommittee is made up of 4 workers’ representatives and 4 employer’s representatives.

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 as to prepare, review and approve the Surveillance Plan for SCORE Program COVID- 19 prevention. With the International Labor Organization (ILO) we are promoting management strengthening of our contractors, through collaborative participation of all their workers.

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4.3. Our Customers Figure 14: Percentage of transmission service customers per Figure 12: Percentage of customers by type of service economic sector [GRI 102-2] 1% At ISA REP, we promote new projects with the State, with 26.32% 24% private customers (mainly in the mining and industrial sectors) and management of the transmission plan busi- 73.68% 68% ness portfolio. We offer to all of them businesses and solutions tailored to their needs and we ensure that they Transmission Generation 4% receive uninterrupted power. Mining Operation, 3% maintenance, Agri-business – Generation In order to better visualize our client portfolio, during ancillary and technical Distribution 2020, we worked with 114 entities, corresponding to 84 specialized services Special project transmission projects and 30 operation, maintenance, Figure 15: Percentage of customers for operation, ancillary and specialized technical projects. maintenance, ancillary and special technical servcies per Figure 13: Percentage of regulated and non-regulated custom- economic sector Below is the distribution of customers by type of opera- 7% tion, regulation and economic sector. 25% 28.45% 7%

4% Transmission 71.55% Distribution Agri-business – Generation Regulated 21% Telecommunications Non-regulated Generation Metallurgy Infrastructure 25% 7% Mining 4%

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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 220 kV was 0.98 and in the 138 kV lines it was 2.47. Both values are within international standards. Likewise, the availability of our network in 2020 was 99.71%.

Figure 16: Network Availability

99.71 2020 99.41 Real 99.38 Goal 2019 99.54

Figure 17: 138 kV Line Failure Rate Figure 18: 220 kV Line Failure Rate Figure 19: Failure Rate Consolidations

2020 2.47 2020 0.98 1.29 2020 2019 4.29 2 2019 1.02 1.7 2019 2

Real Goal

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Figure 20: Total System Demand - MWh Figure 21: Maximum System Demand - MWh Continuous Improvement (REP, CTM and ISA Perú consolidation) (REP, CTM and ISA Perú consolidation) To provide an excellent transmission service, we work under a management model, based on con-

2020 49,178,879.59 2020 7,125.30 tinuous improvement, focused on the development of people, adequate use of business resources in the operation process with special focus on the safety of our personnel, social responsibility 2019 52,889,162.8 2019 7,017.57 and care for the environment.

The transmission system works within the design parameters, and according to the maintenance Table 3: Consumption Data of the National Interconnected System and operation criteria in compliance with current regulations. Our processes are focused on the 2019 2020 use of physical assets (transformers, transmission lines, switches, etc.) to maximize their availabil- Transformation capacity (MVA) 2,605.8 2,773.5 ity, reducing risks and incurring sustainable costs over time. Reserve transformation capacity (MVA) 452.2 466.5 In 2020, in order to improve the quality of the transmission service every day and maximize the performance of the transmission network assets, we promoted the digitization of the distribution Total length of lines 220 kV 138 kV >= 60 kV Total networks with the “Efficient Operation” project. Through the Robotic Process Automation (RPA’s) 2020 5,013.39 1,294.23 34 6,341.62 application we automated repetitive processes such as internal and external reports, transformer 2019 5,020.67 1,294.23 34 6,348.9 ‘tap’ changer tasks from the Scada control center, and settings verification of protection relays implemented in the field. Number of cells 220 kV 138 kV ≥ 60kV Total Likewise, to guarantee the reliability and advanced security of the system, we launched the “Safe 2020 192 105 342 639 Operation” project, implementing the Phasor Measurement Units (PMUs) data concentrator in 2019 192 101 293 586 the main Control Center.

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 corrective maintenance. Likewise, within this project the first inspections of lines with drones have been carried out and we are entering the world of virtual reality for learning purposes.

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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

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4.4. Digital Transformation and Innovation

We chose to intensify digitization in core and support process- 2. New work reality: We generate #SoyDigital experiences to es, keeping the focus on optimization. Our levers are greater surprise and empower partners to develop digital transformation skills. competitiveness in the offer, extension of the useful life of assets, decrease of AOM costs, improve customer experience, We have a space called Fifteen Minutes #SoyDigital, consisting and eliminate routine tasks in cross-cutting processes. Thus, of webcasts on advanced analytics, artificial intelligence, data culture, drones, digital fitness, among others. This year, we we implemented the digital transformation model on six fronts: led and shared this experience with 2000 employees of ISA Group. 1. Digital transformation of businesses: we have a portfolio of projects that digitize the business to modernize, achieve greater reliability, efficiency and advanced security in the We brought self-service to our employees. Our horizon is power system. a new work reality. Therefore, we empower them through technology services and other transformation tools. As Grupo ISA, we used 40% of channels such as Portal, App Now To increase efficiency in project management, we implemented Classic, Chat Amelia and service requests via phone call. 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 3. Cultural transformation: our programs “Digital transforma- monitoring. tion agents” and “Reverse mentoring” aim to mobilize digital transformation at all levels of the organization, where our employees play a leading role as true agents of change. To provide more reliability, we started the implementation of the PI System Data Historian, which allows integrating 4. Cybersecurity: we strengthened the cybersecurity architec- information flows between maintenance scheduling and ture by contracting services: Cybersecurity Operations Cen- execution with real-time operation. ter (SOC) for IT & OT infrastructure and Managed Perimeter Security and Two-Factor Authentication (2FA) integration throughout the company.

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5. Advanced analytics and artificial intelligence: this year, the Digital Excellence Center was formed throughout the ISA Group to continue the development of initiatives related to this matter. At ISA REP, we have two important pilots: calculation of the health index for the Chimbote reactor and switch monitoring in substations. “At ISA group, focus is on innovation as a capacity that enables ISA 2030 Strategy and at ISA REP, 6. Ecosystem of digital partners, through supply partners such Unisys, Internexa and MDP. every day is experienced from different fronts. Internally, we encourage more employees to be innovative with the challenges and creativity workshops that encourage them to make use of new technologies to offer the best of us in each project, service or Being part of the team that collaborates, through activity. the development of a platform, to increase customer satisfaction. Therefore, ensuring long-

Hackathon COVID REP: We collected the best ideas to face the new normal. We selected term relationships is important to achieving the the five best ideas for a live presentation. sustainable value strategy.

Customer Relationship Challenge (Explora Hit): through design thinking we encour- Personally, participating in this initiative has helped aged our employees to find solutions to real challenges of our customers. This year, the win- me analyze customers comprehensively; from ning project was Fast client, a web and mobile application that allows us to meet customer requirements with an online tracking system. With this solution, we measure times, progress, knowing what their concerns are and how they we have a checklist of activities, satisfaction measurements and reporting management indicators. In this way, and with closer treatment, customers can know who to contact and solve are related to many areas of the company up to their doubts in a transparent and immediate way. proposing viable solutions that help those issues disappear. It gives me a holistic view of the business,

Open innovation challenge “Bio Productive Families”: with Red Kunan, we launched since the complete panorama must be observed a challenge to contribute to solutions to the problems of the communities in the area of to propose and adapt solutions and, of course, this influence of the YANA-COYA project. This year, the winning undertaking was Tereo Solutions with a proposal based on the installation of biodigesters in the community of San Sebastián strengthens me professionally”. de Quera in Huanuco. With this, we sought to change the perception on waste management: from being considered just waste to being a source of value that generates energy and pro- Kathy de Cruz tects the environment. More details can be found in Chapter 5 of this report. Department of Business Management Systems. Part of the Fast Client team

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4.5. Our Suppliers

[GRI 102-9, 102-10]

From the Procurement area, we ensure that purchasing man- Currently, we have a classification of suppliers based on the Development of our suppliers agement is carried out based on cost, quality, opportunity and purchasing categories segmentation (routine, restrictive, rele- As part of the ISA REP family, our suppliers participate in provision of the asset’s life cycle. It is important for us to create vant and critical purchases). These categories have been seg- grams to develop their business relationships capabilities. In an ecosystem of competitive suppliers that allows us to main- mented and placed within the strategic procurement matrix, addition, we select suppliers that need to increase their pro- tain business continuity and warehouse management. Togeth- using the annual average of purchases from a historical record, ductivity and business competitiveness in order to support er with them, we guarantee the continuous and timely supply based on the criticality and complexity of the market. their business management. of materials, ensuring construction and maintenance of our Purchases from local (national) suppliers represent 89% of our transmission lines, the core of our business. In this regard, it is important to point out that, for the second budget. Out of 553 suppliers, 511 are local suppliers. consecutive year, we participated as an anchor company in Our suppliers are a fundamental part of the ISA REP procure- the “GRI Competitive Business Program”, which seeks that our ment chain. The goods or services contracted, mainly, are suppliers have sustainability as a competitive advantage. Our those necessary for maintenance of our lines and operation in long-term goal is to increase the number of suppliers and for real time, such as the following: Figure 23: Percentage of Suppliers per Origin those already graduated to continue issuing their report in ac- Line maintenance service Proveedores 92% 8% cordance with GRI standards. It is necessary to show how sup- Civil works Local International pliers have started to manage their impacts after going through Purchase of lead wires the programs. We are working on it. Protection and control systems

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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.

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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-

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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 1922 communities located in our direct area of 209,382 123,120 influence, which encompasses territories in 21 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 86,820 20,083 aims to: individual beneficiaries individual beneficiaries

Contribute to the development and transformation of the 10 30 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.

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

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

Education Local development We contribute to the improvement of We seek to improve the quality of life in educational quality in those communities vulnerable communities within our area of within our area of influence and among the influence. We are proud of these initiatives employees who are part of the company’s that encourage the participation of young growth, thanks to the development of their people and adults as protagonists of their capacities. 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.

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

[GRI 203-2, 413-1]

ISA REP Scholarships

This year, we partnered with Peru Champs. As a result, two students from Innova Schools received a scholarship for one year. This scholarship covers 75% of tuition and monthly fees, 100% of the entrance fee, school supplies and their participation in a leadership program. In addition, ISA REP covers 70% of the percentage described above and Peru Champs the other 30%.

The beneficiaries of this scholarship are from the Champs branch in Chimbote, department of Ancash, and had the opportunity to have 420 class days of scholarship coverage. This scholarship includes a social management program deployed by Peru Champs under the PBL (Project Based Learning) methodology. With our sponsor- Education ship, both were part of two social projects as part of our common vision for the benefit of society. Both “champs” have a clear social sensitivity to the reality of the country and show interest in careers related to the core of our business:

“When I grow up, I want to be an engineer. To improve my Peru, I’m going to help low-income children when I grow up, to help children in need like they helped me” José Francisco, 11.

“To improve Peru, I want to increase the quality of life of the Peruvian population through the study of financial organization and the administration of resources to become a first-class country.” Cintya Chávez, 16.

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[GRI 203-2, 413-1]

Back to school with ISA REP

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

Together with our employees, we delivered 850 school kits, notebooks and materials that encourage environmental care and important information about the electrical infrastructure closer to us. This year, we worked with children and teenagers from the communities of Pomacocha, Andahuaylas, Apurímac and San Pedro de Cajas, Tarma, Junín.

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 contains 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.

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[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.

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[GRI 203-2, 413-1]

“Praderas de Vida” (Meadows of Life) Medicinal Garden

The “Praderas de Vida” Medicinal Garden project generates economic empowerment opportunities for women and older adults in the district of San Juan de Miraflores, specifically, in the Praderas de Vida Human Settlement,

Local through the planting of medicinal plants. At the same time, it contributes to the preservation of flora species from development different parts of our country.

In alliance with Misha Rastrera, a Peruvian company specialized in herbal medicine and cosmetics, the project generates products such as infusions, seasonings and soaps from the medicinal plants grown. So far, 6 training sessions have been held in partnership with this organization.

Currently, the beneficiaries are participating in the seedling project in partnership with La Muyita, a Peruvian company dedicated to urban agriculture.

[GRI 203-1]

Works for Taxes

Committed to the development of public investment projects in education in our direct and indirect area of influence, as ISA REP, we participate in the execution of public works under the mechanism of works Local Infra- for taxes. structure and Equip- As of 2017, we have committed investments for more than S/ 38 MM, through works for taxes, in 4 proj- ment ects, which were awarded to us. In January 2020, we laid the first stone to start the construction of the works for taxes project for the improvement and expansion of the “Luis Felipe de las Casas Grieve” Peru- vian Higher Technological Institute, which is being carried out in consortium with MINSUR and will benefit 1,200 students in two shifts.

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[GRI 203-2, 419-1]

Warm and clean houses

Since 2018, together with our ally Kusimayo, we implemented the equipping of homes, through the construction of warm walls; the insulation and sealing of roofs, walls, doors and windows; and the installation of improved stoves. The latter is of ut- Local Infra- most importance, as families migrate from a polluting system such as wood-burning structure and Equip- stoves to a more sustainable one that extracts smoke from their homes and main- ment tains heat through the buildup of sunlight during the day.

Despite the COVID-19 context, it was deemed necessary to continue contributing to the construction and equipping of warm and clean houses in the high Andean region of our country. Thus, this year, the Tulani Ccapajón community, located in the district of Santiago de Pupuja, province of Azángaro, Puno region, was benefited.

This community is located at 3,915 m.a.s.l. and, like other communities in the area, suffers from the effects of climate change year after year: temperatures that exceed -24 degrees Celsius, which not only affects people’s livelihoods (loss of crops and livestock) but also the lives of the most vulnerable population.

Aware of the context, all the necessary preventive measures were taken for infrastructure construction. The main measure was to build a smaller number of small houses as quickly as possible this year: ISA REP contributed to the construction of 12 out of 30 warm houses.

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[GRI 203-2, 413-1]

Conexión Jaguar Program

Our most ambitious environmental and community program is Conexión Jaguar. Through this sustainability program, we seek to minimize our impacts on the planet in terms of CO2 emissions.

Climate Together with our technical partners South Pole action Group and Panthera, we seek to contribute to biodiversity conservation and climate change mitigation. Working hand in hand with rural communities, we implement carbon components in forest recovery and preservation projects to reduce greenhouse gas (GHG) emissions.

You can find more information about our environmental management and actions within the Conex- ión Jaguar program on page 72 of this report.

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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 “Winning this contest provided a of the development of an organic bio-fertilizer (biol) market, great opportunity to demonstrate that through the installation of 6 biodigesters at the community of collaborations between corporate San Sebastián de Quera, which benefits 300 people. companies and SMEs can generate

Thanks to this project, the families of these communities 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 to for cooking. the ISA REP contest, 60 rural families can now produce their own organic fertilizer This project teaches them to take advantage of the resources and generate biogas for cooking with available to them in an eco-efficient manner, reducing their clean energy. In addition to the great carbon footprint and their impact on the environment and their visibility that this project gave us, we health. Tereo Solutions S.A. contributes to direct savings, in hope that the initiative promoted by ISA addition to providing them with a competitive advantage, since REP will serve as an example for more the biogas produced serves as an enhancer for better agricul- collaborative initiatives of this type to be tural production on their plots. replicated in energy, mining and agro- industrial companies.”.

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

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Volunteering - Digital Teachers This assessment led to a volunteer program linked to 8 skills [GRI 413-1] that teachers will be able to strengthen.

We have a volunteer program focused on sustainable actions. In this preliminary program, we have 24 volunteers, 17 teach- Our objective is to strengthen the capabilities of human talent ers benefited on average and 510 students who will be indi- for a sustainable ecosystem, through the recognition of the re- rectly impacted with new knowledge, attitudes and practices ality of the country and self-knowledge. towards digital media from their teachers. Since October, the

The volunteering process for ISA as a group is focused this volunteers have devoted 120 hours to the project. year on capacity building. Despite the situation, ISA REP has Webinars provide short spaces to launch new topics, which taken advantage of the willingness of our employees to help are reinforced with digital tablets. The latter are available on our communities in the area of influence and teachers with a landing page for teachers to access. At the same time, a every intention to learn in this context of digital transformation. WhatsApp group is available for ISA REP volunteers to answer To this end, our volunteers have set themselves the task of: questions from teachers.

Transforming and Inspiring to Educate

Thus, we created Digital Teachers, a volunteer program that not only aims to provide teachers with tools for their classes, but also with skills under the reference framework of Habil Mind and Universidad de Internet, which are freely available. With this and other tools developed by our collaborators, we developed a diagnosis with the teachers of the Santa Teresa de la Cruz School in Ica and Corazón de Jesús School in Arequipa.

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5.2. Human Rights

[GRI 103-1, 103-2, 103-3, 412-2] ISA Group has a guideline to respect and promote human rights 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.

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Comprehensive Learning Strategy Diversity and Inclusion Program

While maintaining the above focus, we inserted training BEING KNOWING spaces for awareness-raising on seven fronts of action: MIND

• Multiculturalism

Being a more • Gender equality aware person • Disability

BODY FEELING • Peace and post-conflict • Styles of thought • Generations • Sexual diversity DOING

This comprehensive learning strategy for human rights training allows us to implement the following programs: ETHOS: Ethics and Compliance Program

Induction Program Through ethics and compliance, we seek prevention and

Each employee who joins ISA REP, as well as contractor personnel, undergoes an induction process. consequence management in human rights-oriented learning focuses. The contents seek to raise the employee’s awareness of our vision of sustainability, compliance with human rights, social conflict management, the commitments they must assume as suppliers, the Global Compact Principles, the Sustainable Develop- We seek training and awareness spaces to promote the ment Goals (SDGs), and the standards of conduct for relations with communities. purpose of the program and consequence management in the event of non-compliance. With this awareness in learning focuses, we seek to take a first step in terms of basic knowledge that can align our employees with our business objectives.

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[GRI 412-1] We have identified 26% of our suppliers as suppliers with poten- Specifically, we have a procedure for subcontracting local labor tial significant negative social impacts including the following: for our contractors, which requires that minors are not hired, In addition to this Program, we have mechanisms in place to decent working conditions for those who work in our opera- avoid and mitigate impacts and human rights violations, such • Forced or compulsory labor tions, and that the stipulated frameworks are followed in accor- as the following: • Child labor or hiring of minors dance with the law. • The ethical line • Discrimination (ethnic, gender, religion, among others). In addition, we have a manual of occupational safety, occupa- • The permanent information office at the Yana Coya con- • Failure to act against corruption, extortion, and bribery tional health, environmental and social responsibility specifica- struction projects, which aims to actively listen to the com- • Failure to respect stakeholders tions for suppliers (STSOMARS), which states that contractors munities. All our contracts with a significant risk level include human must ensure that no forced or coerced labor is used, that no • ISA social management system rights clauses that are embodied in Social Responsibility Af- overtime is paid, and that no child labor or hiring of minors is • Communication program with communities for projects fidavits signed by our suppliers. Likewise, the Internal Audit allowed. In addition, if it is proven that the supplier has incurred • Training of our contractors, through the company Proyectos area is in charge of monitoring the due diligence process with in conduct that violates the Code of Ethics or the Anti-Fraud de Infraestructura, on standards of conduct and good rela- suppliers on a random basis on a regular basis. Code and Corporate Guideline 58 on respect and promotion of human rights of ISA, it is considered unacceptable and will be tions with the communities in the areas of influence where We are proud to say that, during 2020, we were not part of disqualified for a period of five years. we build the high voltage pylons. any investigations involving human rights and no corrective or precautionary measures, fines or other sanctions related to Human Rights and Suppliers non-compliance with labor standards have been imposed on us. [GRI 103-1, 103-2, 103-3, 408-1, 409-1] It should also be noted that we have an internal and external Our contractors are exposed to labor risks related to the hiring management system that includes a channel for complaints of minors, forced labor and/or the generation of conflicts due to and reports to address human rights impacts. Externally, we inadequate practices in the subcontracting of local labor. Tak- have a process for complaints about discrimination in hiring, ing into account these possible scenarios, we provide training specifically for our stakeholders (contractors and suppliers). on human rights standards and frameworks.

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5.3. Environmental Management

[GRI 103-1, 103-2, 103-3, 307-1] Biodiversity and Climate Change The sector in which we operate requires a high commitment to the environment. At ISA REP, we [GRI 102-11, 102-15, 103-1, 103-2, 103-3, 304-1, 304-2] manage the risks and impacts that are generated by our operation, through programs that con- Our Corporate Environmental Policy establishes biodiversity protection as a fundamental issue. tribute to the sustainability of the planet. We are committed to caring for our environment at all times of our operation. We have identified We have three specific objectives: that the possible impacts on biodiversity occur only in the construction stages, which can be observed in the scaring of wildlife species. Comply with environmen- Promote the fight Reduce carbon footprint tal commitments and en- The facilities that cross areas of high biodiversity are as follows: against climate change and water footprint vironmental regulations • El Angolo Hunting Reserve (5 Km - 220 kV Line) • Lomas de Lachay National Reserve (1.52 Km - 220 kV Line) To achieve them, we rely on our Corporate Environmental Policy and Integrated Management Pol- icy. In addition, our management system complies with ISO 14001:2015, whereby we identify the • Lomas de Ancón Reserve Area (7.1 Km - 220 kV Line) legal requirements applicable to our operation. • Salinas and Aguada Blanca National Reserve (25 Km - 220 kV line) • Nor Yauyos Cochas Landscape Reserve (26.6 Km - 220 kV Line) Thanks to our sound management, in 2020, we received no environmental fines or sanctions.

We are committed to reducing our carbon and water footprint, so we implement actions that allow We have environmental identification, monitoring and assessment matrices to determine our po- us to manage the consumption of resources and efficiently manage our activities. tential impacts on biodiversity at each substation along our transmission lines. To date, no significant damage to biodiversity has been recorded in the areas evaluated. It should be noted that Our main goal is to contribute to the reduction of our emissions by managing our water consump- SGS, the certifying company, audits the matrices. We also act in compliance with the commit- tion, energy consumption, waste generation and avoided emissions from teleworking. We use the ments assumed in the Environmental Impact Assessments (EIA), Environmental Management GHG Protocol: 2005 Scope 2 Guidance methodology for measurement purposes. Adaptation Plans and Peruvian regulations.

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[GRI 103-1, 103-2, 103-3] Operations centers located within protected areas or areas of high biodiversity value outside protected areas

Geographic location • El Angolo Hunting Preserve • Lomas de Lachay National Reserve • Lomas de Ancon Reserve Zone • Salinas y Aguada Blanca National Reserve • Nor Yauyos Cochas Landscape Reserve Position with respect to the protected In all cases within the area area (within the area, adjacent to the area or with plots in the protected area) or area of high biodiversity value outside the protected area Type of operation (office, manufacturing, Transmission line production or extraction)

[GRI 103-1, 103-2, 103-3] Surface area of affected areas • El Angolo Hunting Preserve (5 Km - 220 kV Line) • Lomas de Lachay National Reserve (1.52 Km - Our environmental management is based on mechanisms to prevent, control, mitigate, 220 kV Line) and compensate for our potential environmental impacts. In this sense, we seek to avoid • Lomas de Ancón Reserve Zone (7.1 Km - 220 kV Line) any potential impact on biodiversity through strategic institutional partnerships and the • Salinas y Aguada Blanca National Reserve (25 creation of synergies aimed at biodiversity conservation and protection. Our integrated Km - 220 kV Line) biodiversity management is based on the following 3 pillars: • Nor Yauyos Cochas Landscape Reserve (26.6 Km - 220 kV Line). Integrated Biodiversity Management Biodiversity value, as characterized by High value in all cases being listed as high biodiversity value. Actions taken Monitoring and conservation programs for sensitive Design and construction Compensation Contributions through the species of flora and fauna were implemented, with methods to minimize portfolio Conexión Jaguar Sustainability an annual increase in populations of approximately impacts on the environment Program 2% over the previous year. and biodiversity

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[GRI 304-2]

Significant impacts of activities on biodiversity Conexión Jaguar Program [GRI 103-1, 103-2, 103-3, 201-2] Nature of significant direct and indirect impacts on biodiversity At the corporate level, Conexión Jaguar is our most ambitious program to contribute to the protection of biodiversity, promoting the Species reduction It has not been observed protection of the jaguar as one of the main species of the Latin American rainforest. For the comprehensive development of Con- Habitat transformation No ecosystem fragmentation exión Jaguar, we have the technical support of South Pole Group and Panthera, two world leaders in climate change, sustainability Changes in ecological pro- No changes in the ecosys- and big cat conservation. cesses outside the natural tem services of interacted range of variation (such habitats have been observed. as salinity or water table changes). Significant direct and indirect positive and negative impacts Species affected Species affected The extent of the impacted The extent of the impacted areas areas Other objectives we seek to achieve with this program The duration of the impacts The duration of the impacts are the following:

• Reduce Greenhouse Gas (GHG) emissions. • Raise awareness about the deterioration of the en- • Contribute to the conservation or restoration of ar- vironment and the loss of the planet’s biodiversity eas of importance for biodiversity and connectivity • Increase the actions and benefits of the program between the main populations of jaguars in Latin by linking new partners and donors. America. • Generate partnerships with the State and other or- • Contribute to improving the living conditions of ru- ganizations for the exchange of scientific informa- ral dwellers and strengthen their social organization and the development of conservation plans for tions. vulnerable species.

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[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.

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[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).

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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 3,742,375.00 3,452,979.00 • Luminous efficiency study for the redistribution of luminaires. the facilities Gigajoule 13,472.55 12,430.72 • 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 1,525.00 1,700.00 6,490.00 9,185.00 Diesel DB5 (Terajoules) 10.37 11.56 44.13 62.458

2020 Gasohol 95 0.00 4,465.00 194.00 2,361.00 Gasohol 95 (Terajoules) 0.00 143,281.85 6,225.46 75,764.49 DB5 Diesel - 1545.26 8,959.26 4,163.12 Diesel DB5 (Terajoules) - 10.54 61.14 28.41

2019 Gasohol 95 3,842.55 5,803.74 - 3,024.37 Gasohol 95 (Terajoules) 123,345.80 186,300.00 - 97,082.30

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Emissions Likewise, through the participation of our staff to innovate in Table 9: Greenhouse Gas Emissions (GHG) by scope [GRI 103-1, 103-2, 103-3, 305-1, 305-2, 305-3] eco-efficiency, the following was achieved: Units 2019 GHG Emissions Metric tons of Our goal is to be a carbon neutral company by 2030. To achieve • Recovery of water from air conditioning and reuse for irriga- 1,285.28 (Scope 1) CO2e this, we have implemented the following programs: tion of green areas. GHG Emissions Metric tons of 598.78 • Murals made with photocatalytic paints 2 • Progressive implementation of energy-saving faucets. (Scope 3) CO e • On-site composting of organic waste GHG Emissions Metric tons of • Change to LED lighting and modernization of equipment. 1,424.40 (Scope 3) CO2e • Change of effluent treatment system to biodigesters (formerly septic tank). • 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.

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Water To ensure that our use is appropriate, we identify impacts relat- • Monthly monitoring of consumption in a logbook [GRI 103-1, 103-2, 103-3, 303-1, 303-2, 303-5] ed to water resources and have licenses for the consumption • Water consumption reduction goals of a certain authorized monthly and annual volume. We also The water we extract is for consumption by our contractors in During 2020, we have implemented the following: establish the following activities to monitor the impact on water the workspace, and is supplied by subway wells and the public resources: • Change of faucets to systems with hermetic and magnetic water supply. seals to avoid water losses. • Maintenance of pumps and water conveyance systems • Recovery of condensation water from air conditioners and • Installation of meters in pumping systems use for irrigation in green areas. • Implementation of a drip irrigation system. • Implementation of fog catcher project

Table 10: Total Water consumption in cubic meters

Units 2020 Water con- Cubic Meters 43,650.20 sumption

Table 11: Water extraction in thousands of cubic meters

2020 Callalli ES 75.00 Guadalupe ES 411.00

Huancavelica ES 3,153.00

Huancayo ES 1,000.00 Paramonga ES 832.00 San Juan ES 8,448.00

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Waste Management [GRI 103-1, 103-2, 103-3, 306-1, 306-2, 306-3]

We manage all solid waste from our activities, with the highest priority given to the proper management of hazardous and special waste. We have implemented circularity measures to prevent the generation of the organization’s waste, and on behalf of third parties we work with NGOs on projects for the recovery of scrap, WEEE and recoverable waste. In addition, we have implemented actions such as the following:

• Implementation of new solid waste management standards. • Signing of agreements with NGOs for solid waste recycling. • Systematization of information to avoid the generation of administrative waste.

Table 12: Waste generated by type and location, in kilograms

2019 2020 Municipal Municipal Non- Non- waste Hazardous waste Hazardous Units hazardous WEEE Other hazardous WEEE Other (common or waste (common or waste waste waste domestic) domestic) Southern Transmission Department Abancay kg 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Ayaviri kg 77.5 80 226 575 100 134.70 80.00 226.00 575.00 100.00 Azangaro kg 6 0 1 0 0 15.00 0.00 9.00 7.00 0.00 Callali kg 164 0 0 0 80 31.25 0.00 0.00 0.00 0.00 Cerro Verde kg 9 0 0 0 0 1.50 0.00 0.00 0.00 0.00 Combapata kg 652.1 0 0 0 0 331.85 23.00 188.00 30.00 9,900.00 Juliaca kg 9.5 1 1,313.55 159 0 9.50 1.00 1,314.55 10.50 0.00 Marcona kg 210.5 3310 275 25 1148 209.00 3,760.00 2,155.00 245.00 1,774.00

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Mollendo kg 9 0 0 0 0 1.50 0.00 0.00 0.00 0.00 Moquegua kg 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Puno kg 128 0 0 0 0 20.48 1.50 14.15 150.00 30.00 Quencoro kg 587.63 8 2,090 261.5 12,111 6,42.00 23.00 103.00 0.00 235.00 Northern Transmission Department Chiclayo kg 9483 59 166.8 58.7 0.7 1,259.90 1.00 122.90 16.00 0.00 Chimbote kg 9483 59 166.8 58.7 0.7 306.00 0.00 2,739.10 0.00 50.00 Guadalupe kg 372 0 0 125 950 80.00 0.00 0.00 0.00 0.00 Paramoga kg 233 0 10 40 0 118.50 50.00 14.00 0.00 0.00 Pariñas kg 303 0 148 12 5 370.00 0.00 43.00 2.00 0.00 Piura Oeste kg 433 0 95 402 90 102.00 0.00 105.10 202.00 90.00 Reque kg 44.6 0 0 0 0 159.05 1.00 0.00 0.00 0.00 Talara kg 284 2 90 130 10 600.00 15.00 139.00 218.00 0.00 Trujillo Norte kg 1152 55 59.6 350 5 607.00 9.00 315.50 50.00 2.00 Zorritos kg 372 0 0 125 950 345.00 0.00 34.20 170.00 0.00 Central Transmission Department Amarillis kg 221.5 0 0 0 0 0.00 0.00 1.00 0.00 100.00 Aucayacu kg 45 3.5 441.5 3 0 143.50 25.00 5.00 2.00 135.00 Callahuanca kg 160.1 0 7 0 5 133.70 0.00 555.30 0.00 0.00 Chavarria kg 258.05 0 0 0 0 349.60 0.00 0.00 0.00 0.00 Huacho kg 80 0 611 0 30 54.00 0.00 0.00 0.00 0.00 Huancavelica kg 58 0 0 0 0 65.00 0.00 0.00 0.00 0.00

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Huánuco kg 121 178 127 28 230 54.00 84.00 11.00 100.00 0.00 Huayucachi kg 578 19 177 5 0 805.00 0.00 0.00 0.00 0.00 Ica kg 390 20 271 0 20 360.00 20.00 511.00 5.00 20.00 Independencia kg 66 0 1070 109 16000 260.00 30.00 0.30 0.00 0.00 Pachachaca kg 18 1 0 0 0 81.00 0.00 311.00 0.00 0.00 Paragsha I y II kg 152 0 0 0 0 70.00 0.00 34.00 0.00 0.00 Pomacocha kg 441.5 1 0 1 0 11.00 0.00 1.00 0.00 0.00 San Juan kg 1367 165 2155 100 0 713.00 0.00 67.00 0.00 0.00 Santa Rosa kg 280 111 211.5 0 0 206.00 393.00 5,100.00 80.00 0.00 Tingo María kg 125 1 5.5 0 100 122.00 0.00 0.00 0.00 0.00 Tocache kg 173.9 0 535.5 0 0 170.77 0.00 535.50 0.00 0.00 Ventanilla kg 458 0 0 0 0 548.50 0.00 0.00 0.00 0.00 Zapallal kg 182 0 0 400 700 175.00 0.00 0.00 0.00 0.00

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

6.1. General Information Company name Red de Energía del Perú S.A. Type of company Corporation History TAX ID 20504645046

• On June 5, 2002, through a public auction, ISA Group won the bid and received the concession ISIC 40104 for the exploitation rights of the electric transmission systems in charge of Etecen and Etesur. Term of duration Undefined

• Once the concession was awarded, ISA incorporated ISA REP by means of a public deed on Legal Address Avenida Juan de Arona 720, oficina 601, San Isidro, Lima 15046 June 3, 2002. Its founding partners were Interconexión Eléctrica S.A. E.S.P. (ISA) and Transelca Telephone +51(1) 7126600 S.A. E.S.P. Website www.isarep.com.pe PAREDES, BURGA Y ASOCIADOS S. CIVIL DE R.L. - member firm of Ernst • On July 31 of that same year, Grupo Energía de Bogotá S.A. E.S.P. (GEB) became a sharehold- External Auditor & Young er, acquiring 40% of the company’s shares.

• After its creation, ISA REP became the concessionaire company and ISA the Qualified Strategic In the past two years, the chief accounting or auditing officer of the company has not resigned or Operator of the concession. been dismissed. • ISA REP formally began operations on September 5, 2002. Incorporation and filing with the Public Records Office • At present, ISA REP operates as the management center of Consorcio Transmantaro S.A. and The public deed of incorporation is dated July 3, 2002 and its clarification is dated July 10, 2002. Interconexión Eléctrica ISA Perú S.A., which means that it comprehensively carries out the technical and administrative management of both companies. The registration entry number is 11393349.

General information Administrative or arbitration legal proceedings [GRI 102-5] None.

ISA REP’s corporate purpose is to exploit the concession granted by the Peruvian State under the Special relationship between the issuer and the State Electric Transmission System Concession Contract (ETECEN-ETESUR) concluded with the Min- We receive a state subsidy to retain personnel with disabilities. istry of Energy and Mines.

82 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 REP 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.

83 ANNEXES 6 ANNEXES

Remuneration of the members of the board of directors and management in re- Brenda Rodríguez Tovar lation to the company’s gross income level

She is the Financial Manager of Transelca. She is an % of 2020 gross Remuneration income economist from Universidad Simón Bolívar, and holds a postgraduate degree in Financial Administration from Remuneration of the members of the Board of Directors 0.00023954 Universidad del Norte de Colombia and an MBA from Fixed remuneration of management personnel 0.39 Universidad de los Andes de Colombia. Variable remuneration of management personnel 0.09

Pablo Alonso Chaparro Mayorga Experience of our Senior Management

He holds a degree in civil engineering from the Universi- Carlos Mario Caro Sánchez dad Industrial de Santander, Colombia. Since February 2012, he is General Manager of ISA REP, ISA CTM and ISA Peru. He has been president of the Colombian Business Council (CEC) and of the Electricity Sector of the Nation- Miguel Felipe Mejía Uribe al Society of Mining, Oil and Energy in Peru (SNMPE). He is Director of Operations and Maintenance of GEB. He is currently a member of the Advisory Committee of the Universidad de Ingeniería y Tec- He studied electronic engineering at the Universidad In- nología (UTEC) and vice-president of the Regional Energy Integration Commission (CIER - PE- dustrial de Santander with a specialization in Energy Re- CIER). sources Management at the Universidad Autónoma de Bucaramanga (UNAB). Alberto Muñante Aquije

We only have executive directors. In September 2011, he became Operations and Maintenance Manager of ISA REP. He is an electrical engineer and has specialized studies in Modern Power Systems Control at the Fed- There is no degree of relationship (by blood or through mar- eral University of Santa Catarina, Brazil, and in Business Administration at ESAN. He holds a riage) between the members of the board of directors and, Master’s degree in Business Administration from Ricardo Palma University. among them, with the organization’s main shareholders.

84 ANNEXES 6 ANNEXES

María del Pilar Villacorta Saroli Vidal Galindo Verástegui

She has been the administrative manager of ISA REP since He has headed the Legal Department of ISA REP since March 2003. She holds a Bachelor’s degree in Adminis- September 2002. He is a lawyer from the Pontificia Univer- tration and a Master’s degree in Business Administration sidad Católica del Perú (PUCP). He holds a Master’s de- from Universidad de Lima and Universidad del Pacífico, gree in Economics and Regulatory Law from Universidad respectively. She holds a postgraduate degree in Manage- Peruana de Ciencias Aplicadas, and a diploma in Strategic ment Development from the GERENS School of Manage- Business Management from Universidad del Pacífico. ment and Economics; a diploma in Leadership Skills Devel- opment from Universidad Peruana de Ciencias Aplicadas Mónica Tomanguillla Guimac UPC; and a General Management Program (PAD) from She is Head of Internal Audit of ISA REP, since June 2014. Universidad de Piura. She is an accountant from Universidad Nacional Mayor de San Marcos and holds a Master’s degree in Business Ad- José Iván Jaramillo Vallejo ministration from Universidad Peruana de Ciencias Apli- Finance Manager of ISA REP, since February 2014. A civil cadas (Peru). With diplomas in Internal Audit and Quality engineer and professional in Corporate Finance and Capital Management and Accounting and Finance for Strategic Markets from Escuela de Ingeniería de Antioquia (Medellín, Management from Universidad de Lima (Peru). Previously, Colombia). He holds a postgraduate degree in Business she worked as Senior Audit Manager at Deloitte & Touche, Valuation from the Business School (London) and special- Comptroller and Internal Audit Manager at Gas Natural izations in Risk Management and Insurance. de Lima y Callao-Cálidda, and Audit Senior at Pricewater- houseCoopers. She has 15 years of work experience.

85 ANNEXES 6 ANNEXES

Jorge Güímac Dávila Carolina Sánchez

In February 2017, he took over as Business Development She is an electrical engineer with 20 years of experience in Manager of ISA REP. He holds a degree in Industrial En- Transmission Solutions, especially in the areas of engineer- gineering and a Master in Business Administration (MBA) ing and execution of projects for power substations and high from Universidad de Lima and Universidad Autónoma de voltage transmission lines. A graduate from Universidad Barcelona, with a specialization in Corporate Finance. He Pontifica Bolivariana de Medellín, as an Electrical Engineer also holds a diploma in Public-Private Partnership Man- and Specialist in High Voltage and Project Management. agement from Universidad del Pacífico, and a diploma in She has been associated with Grupo ISA for around 14 Project Management from Universidad Peruana de Cien- years and is currently responsible for Project Management cias Aplicadas (UPC). in the subsidiary Red de Energía del Perú. She worked for 4 years with one of the most recognized manufacturers Luis Olivos Román worldwide where she held the position of Manager of High Voltage Solutions and Products for the Southern - Ande- He has been comptroller of ISA REP since April 2018. He an Region, serving the energy, industry and infrastructure has been a director of the Peruvian Institute of Internal segments. She is recognized for her leadership and repu- Auditors, since 2017. In addition, he served as Head of tation in the energy sector in the region. Internal Audit at Luz del Sur. He is an accountant from Pontificia Universidad Católica del Perú and holds an MBA from Centrum.

86 ANNEXES 6 ANNEXES

new work policies generated by the new situation, facilitating the implementation of remote work 6.3. Shareholding Structure for 100% of the administrative and support personnel.

We are committed to our shareholders to ensure efficient business and economic management in Likewise, there was an exchange difference impact due to higher exchange exposure of accounts order to ensure good results. receivable and taxes payable, mainly.

The subscribed and paid-in capital stock is 100% of S/ 72,160,000.00. Registered common On the other hand, the savings generated allowed us to finance institutional support policies for shares have been issued, and with preemptive acquisition rights, except as otherwise provided in various private innovation projects aimed at fighting the pandemic and helping underprivileged the Bylaws with a par value of S/ 1.00. sectors, both through direct support and agreements signed with Pontificia Universidad Católica del Perú (PUCP) and Universidad Peruana Cayetano Heredia (UPCH). Shareholding Structure Financial Management Financial Indicators Indicators 2020 2019 Interconexión Grupo Energía Transelca S.A. Equity to Debt Ratio1 1.32x 1.08x Electrica S.A. Bogotá S.A. 30% 1 30% 40% Debt Ratio 0.45x 0.41x Liquidity Ratio - Current Test 0.91x 1.40x Liquidity Ratio - Acid Test 0.74x 1.14x 6.4. Financial Management EBITDA (thousands of US$) 122,846 125,296

2 COVID-19 Impacts EBITDA Margin 73.0 % 74.0 % Operating Margin32 47.7 % 60.0 % With the beginning of the government-mandated quarantine, lower expenditures were recorded Net Margin2 27.4 % 38.3 % due to the deferral of activities, mainly operation and maintenance, fees and travel expenses, which were rescheduled and/or optimized to a certain extent. This lower expenditure, however, 1 Indebtedness is defined as the company’s financial debt. 2 Margins calculated on the basis of operating income excluding the effect of IFRIC12. helped to mitigate the extraordinary expenses associated with the new safety protocols and the

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The financial results do not show a high volatility since the accounting records are in U.S. dollars. Table 12: Statements of income (expressed in thousands of US$) Also, ISA REP maintains hedging derivative instruments (Cross Currency Swap), which reduce the 2020 2019 Var.% exposure to the risk of exchange rate fluctuations on the issuance of debt in soles. Operating income 168,364 169,324 -0.6 It is worth mentioning that, in application of the International Financial Reporting Standards, IF- Costs and expenses -45,518 -44,028 3.4 RIC 12, the company records the construction costs of the transmission lines as expenses in the EBITDA* 122,846 125,296 -2.0 statement of profit and loss, since, according to this interpretation, the company provides a con- Provisions, amortization and depreciation -42,545 -23,782 78.9 struction service in favor of the Peruvian State. Operating income 80,301 101,514 -20.9 The standard establishes that the fair value of the service provided should be recorded as income. Financial income 365 422 -13.6 In this case, a slight variation exists with respect to the expenses recorded for this concept, asso- Financial expenses -12,630 -12,046 4.9 ciated to the construction contract signed with Minera Volcan, since this is a private contract, the Net foreign exchange difference -3,215 449 -815.6 construction services are provided, managed and/or supervised by Proyectos de Infraestructura Profit before taxes and participations 64,821 90,340 -28.2 del Perú S.A.C. (PDI). Income tax -18,612 -25,405 -26.7 Net profit for the year 46,209 64,935 -28.8

[GRI 102-45]

Notes: Construction revenues/costs are not included. In costs and expenses, the net effect of Volcan is added to IFRIC 12 (USD 51,000). EBITDA includes financial income.

88 ANNEXES 6 ANNEXES

Figure: Financial information (expressed in thousands of USD) the amortization of the expansions was recalculated to establish a residual value of the intangible

180,000 2020 assets at the end of the concession for USD 19 MM, generating a significant decrease in costs. 160,000 2019 ISA REP ended 2020 with an EBITDA of USD 122.8 MM and a net income of USD 46.2 MM,

140,000 125,296 122,846 which upon removing the unforeseen events that occurred in the 2019 year in income and amor- 169,324 120,000 168,364 101,514 tization, mentioned above, shows an EBITDA growth of 2.7%, compared to 2019, and maintains 100,000 net profits at similar values, only adjusted for the income tax, associated to the higher income. 80,301 80,000 64,935 Table 13: Balance sheet (expressed in thousands of US dollars)

60,000 46,209 45,518 44,028 40,000 ASSETS 2020 2019 Var.%

20,000 Current assets 56,820 62,890 -9.7 0 Non-current assets 445,193 449,701 -1.0 Operational Operational EBITDA Operational Net Profit Total assets 502,013 512,591 -0.021 Income Costs and Profit Expenses NET LIABILITIES AND EQUITY 2020 2019 Var.% Current liabilities 62,123 44,899 38.4 Over 88% of revenues come from the energy transportation service, through the electric transmis- Non-current liabilities 269,484 274,386 -1.8 sion lines received in concession for operation; the main cost of this service is the amortization of Total liabilities 331,607 319,285 0.039 the price paid for the concession, followed by the cost of operation and maintenance. Net equity 170,405 193,306 -11.8

At the close of the 2020 tax year, the company’s revenues amounted to USD 168.4 MM. Compara- Total net liabilities and equity 502,012 512,591 -0.021 tively, with respect to the previous year, revenues fell by 0.6% as a net effect of the higher extraordinary revenue, in 2019, due to the favorable arbitration award for Expansion 13 (USD 4.2 MM).

Regarding costs and expenses, these are in the region of USD 45.5 MM, showing a decrease of 3.4% with respect to 2019; this variation is due to the fact that in the 2019 tax year, exceptionally,

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Figure: Balance sheet (expressed in thousands of US dollars)

600,000 2020 500,000 2019

400,000 331,607 319,285 512,591 300,000 502,013 193,306 200,000 170,405

100,000 0 Capital Investments Total Total Net Assets Liabilities Equity During 2020, ISA REP made investments in capital expenditures of USD 20.99 MM, which involved investments in projects associated with the Expansion Plan, such as:

Table 14: Investments (expressed in thousands of USD) At the end of the year, ISA REP’s assets amounted to USD 502.01 MM, showing a variation of Projects Accumulated Investment 2020 Investment 0.02%, compared to 2019, which is mainly attributable to an optimization of cash balances and Expansion 20 23,084 20,958 accounts receivable. Minor Expansion 5 32 32 Liabilities show an increase of 0.04%, compared to 2019, mainly associated with a higher balance 23,116 20,991 of short-term financial obligations, generated by the loan subscribed with Banco de Crédito del Perú (BCP). Financial Obligations At the end of 2020, the company’s equity reached USD 170.41 MM, showing a variation of Securities issued 11.8%, associated to the decrease in the results of the year, as a result of the extraordinary events occurred during 2019, in revenues and amortization. Outstanding corporate bonds are comprised of the following issues:

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Table 14: Securities Issued 2020

Annual Payment 2020 2019 Authorized Amount Currency Placement Date Interest Rate Capital maturity Method (%) US$ US$ Second Corporate Bond Program Twentieth Issue Series A (*) 38,000,000 US$ January 2011 6.500 Trimestral Enero 2026 38,000,000 38,000,000 Third Corporate Bond Program Fourth Issue (*) 40,000,000 US$ October 2012 5.875 Quarterly April 2031 40,000,000 40,000,000 First Issue Series A (*) 104,140,000 PEN November 2012 5.375 Quarterly November 2022 28,898,683 31,474,132 First Issue Series B (*) 77,305,000 PEN February 2013 5.125 Quarterly February 2023 21,445,199 23,362,074 Seventh Issue 20,000,000 US$ July 2014 3.750 Quarterly July 2021 3,333,333 6,666,666 Total 131,677,215 139,502,873

(*) The principal of these bonds will be paid in a single payment in 2022, 2023, 2026 and 2031, respectively.

Securities traded in the secondary market

According to the Lima Stock Exchange, in communication CE-001/2021 dated January 21, 2021, the following information regarding the monthly quotations (high, low, opening and closing) for the year 2020 is provided in detail.

Table 15: Securities traded in the secondary market 2020

ISIN Code Nemonic Year - Month Opening % Closing % Maximum % Minimum % Average Price % PEP70310M149 REP3BC1A 2020-10 107.5643 107.7455 107.7455 107.5643 107.6150 PEP70310M149 REP3BC1A 2020-12 107.1524 107.1524 107.1524 107.1524 107.1524 PEP70310M156 REP3BC1B 2020-10 107.6910 107.6910 107.6910 107.6910 107.6910 PEP70310M156 REP3BC1B 2020-12 107.3320 107.3320 107.3320 107.3320 107.3320

Fuente: Lima Stock Exchange 91 ANNEXES 6 ANNEXES

Bank Loans • On September 28, 2020, ISA REP subscribed a short-term loan with Banco de Crédito del Perú S.A. in which a credit for US$ 15,000,000 Bullet is granted. The term of the loan is 182 days Current bank loans are comprised of the following: from the closing date. The loan accrues interest at maturity at an effective annual rate of 0.65 Table 16: 2020 Bank Loans percent. The Company is not required to maintain financial ratios as part of the contractual commitments. As of December 31, 2020, the debt balance amounts to US$15,000,000. Bank Loans (US$) 2020 2019 Financial Leasing Short-term loan On November 21, 2018, ISA REP entered into a finance lease agreement with Scotiabank for US$ Banco de Crédito del Perú S.A. 15,000,000 ------63,332 for the purchase of vehicles, with a 2.5-year term and accruing semi-annual interest at Medium-term loan an effective annual interest rate of 4.55%. As of December 31, 2020, the balance of the finance Scotiabank Perú S.A.A. 70,000,000 70,000,000 lease amounts to US$ 13,250. Total 85,000,000 70,000,000 On December 2, 2020, ISA REP entered into a financial lease agreement with Scotiabank for US$ • On September 20, 2019, ISA REP entered into a medium-term loan with Scotiabank Peru 1,021,642.32 for the purchase of vehicles, with a term of 2.5 years and accruing semi-annual under which a US$ 70,000,000 loan is granted, amortizable as of the fifth year. The term of interest at an effective annual interest rate of 1.90%. As of December 31, 2020, the balance of the loan is 6 years from the closing date. The loan accrues interest semiannually at an effec- the finance lease amounts to US$ 1,021,642.32. tive annual rate of 3.10 percent. The company is not required to maintain financial ratios as part of the contractual commitments. As of December 31, 2020, the debt balance amounts to Capital Management US$70,000,000. The main objective of ISA REP’s capital management is to maintain a solid credit rating and • On March 30, 2020, ISA REP entered into a short-term loan with Banco de Crédito del Perú healthy capital ratios to sustain the business and maximize shareholder value. S.A. (BCP), in which the company is required to maintain financial ratios as part of its con- Therefore, an optimal capital structure is managed and appropriate adjustments are made as eco- tractual commitments. (BCP), granting a US$ 55,000,000 Bullet loan to finance its investment nomic conditions change. During the years ended December 31, 2020 and December 31, 2019, plan. The term of the original loan was 360 days from the disbursement date. The loan accrued there were no changes to the objectives, policies, or processes related to capital management. interest quarterly at an effective annual rate of 2.48 percent. On September 28, 2020, this loan was repaid in full primarily with the company’s own cash and the balance of US$15,000,000 was covered by a short-term bank loan with BCP.

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6.5. Biodiversity - Wildlife Biological Inventory

[GRI 304-4] Table 13: Biological inventory of species listed as Least Concern (LC) by the International Union for the Conservation of Nature (IUCN) - Wildlife

Order Family Species Common name Monitoring Path SOUTHERN TD (Callalli – Santuario TL) Anseriformes Anatidae Anas flavirostris Yellow-billed teal T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Accipitriformes Accipitridae Geranoaetus polyosoma Variable hawk T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Anseriformes Anatidae Lophonetta specularioides Crested duck T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Anseriformes Anatidae Oressochen melanopterus Andean goose T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Charadriiformes Charadriidae Vanellus resplendens Andean lapwing T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Charadriiformes Laridae Chroicocephalus serranus Andean gull T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Columbiformes Columbidae Metriopelia aymara Golden-spotted ground dove T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Falconiformes Falconidae Falco femoralis Aplomado falcon T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Falconiformes Falconidae Phalcoboenus megalopterus Mountain caracara T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Emberizidae Zonotrichia capensis Andean sparrow T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Furnariidae Cinclodes albiventris Cream-winged cinclodes T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Furnariidae Geositta cunicularia Common miner T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Hirundinidae Orochelidon andecola Andean swallow T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Thraupidae Sicalis lutea Puna yellow finch T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Charadriiformes Thinocoridae Thinocorus orbignyianus Grey-breasted seedsnipe T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Pelecaniformes Threskiornithidae Plegadis ridgwayi Puna ibis T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Thraupidae Phrygilus plebejus Ash-breasted sierra finch T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Tyrannidae Lessonia oreas Andean negrito T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170

93 ANNEXES 6 ANNEXES

[GRI 304-4] Order Family Species Common name Monitoring Path Passeriformes Tyrannidae Muscisaxicola juninensis Puna ground tyrant T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Passeriformes Tyrannidae Muscisaxicola capistratus Cinnamon-bellied ground tyrant T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Piciformes Picidae Colaptes rupicola Andean flicker T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Squamata Liolaemidae Liolaemus signifer Zodiac Tree Iguana T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Carnivora Mephitidae Conepatus chinga Molina's hog-nosed skunk T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Carnivora Canidae Lycalopex culpaeus Culpeo T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 Artiodactyla Camelidae Vicugna vicugna Vicuña T 66 – T67 / T 156 – T 157 / T 163 - T164 / T 171 – T170 CENTRAL TD (Zapallal – Huacho TL) Apodiformes Trochilidae Amazilia amazilia Amazilia hummingbird ( Torre T138 (267) - T139 (268) Cathartiformes Cathartidae Cathartes aura Turkey vulture Torre T138 (267) - T139 (268) Cathartiformes Cathartidae Coragyps atratus Black vulture Torre T138 (267) - T139 (268) Charadriiformes Charadriidae Charadrius vociferus Killdeer Torre T138 (267) - T139 (268) Charadriiformes Burhinidae Burhinus superciliaris Peruvian thick-knee Torre T138 (267) - T139 (268) Columbiformes Columbidae Columba livia Rock dove Torre T138 (267) - T139 (268) Columbiformes Columbidae Columbina cruziana Croaking ground dove Torre T138 (267) - T139 (268) Columbiformes Columbidae Zenaida auriculata Eared dove Torre T138 (267) - T139 (268) Columbiformes Columbidae Zenaida meloda West Peruvian dove Torre T138 (267) - T139 (268) Cuculiformes Cuculidae Crotophaga sulcirostris Groove-billed ani Torre T138 (267) - T139 (268) Falconiformes Falconidae Falco sparverius American kestrel Torre T138 (267) - T139 (268) Passeriformes Fringillidae Spinus magellanicus Hooded siskin Torre T138 (267) - T139 (268) Passeriformes Hirundinidae Pygochelidon cyanoleuca Blue-and-white swallow Torre T138 (267) - T139 (268) Passeriformes Mimidae Mimus longicaudatus Long-tailed mockingbird Torre T138 (267) - T139 (268) Passeriformes Passeridae Passer domesticus House sparrow Torre T138 (267) - T139 (268)

94 ANNEXES 6 ANNEXES

[GRI 304-4] Order Family Species Common name Monitoring Path Passeriformes Thraupidae Conirostrum cinereum Cinereous conebill Torre T138 (267) - T139 (268) Passeriformes Thraupidae Sporophila telasco Chestnut-throated seedeater Torre T138 (267) - T139 (268) Passeriformes Thraupidae Volatinia jacarina Blue-black grassquit Torre T138 (267) - T139 (268) Passeriformes Troglodytidae Troglodytes aedon House wren Torre T138 (267) - T139 (268) Passeriformes Tyrannidae Camptostoma obsoletum Southern beardless tyrannulet Torre T138 (267) - T139 (268) Passeriformes Tyrannidae Pyrocephalus rubinus Scarlet flycatcher Torre T138 (267) - T139 (268) Passeriformes Tyrannidae Tyrannus melancholicus Tropical kingbird Torre T138 (267) - T139 (268) Pelecaniformes Ardeidae Bubulcus ibis Western cattle egret Torre T138 (267) - T139 (268) Psittaciformes Psittacidae Forpus coelestis Pacific parrotlet Torre T138 (267) - T139 (268) Strigiformes Strigidae Athene cunicularia Burrowing owl ( Torre T138 (267) - T139 (268) Squamata Tropiduridae Microlophus tigris Tiger Pacific iguana Torre T138 (267) - T139 (268) NORTHERN TD (Zorritos – Machala TL) Pelecaniformes Ardeidae Bubulcus ibis Western cattle egret T1-T2 / T2-T3 Passeriformes Tyrannidae Camptostoma obsoletum Southern beardless tyrannulet T1-T2 / T2-T3 Passeriformes Troglodytidae Campylorhynchus fasciatus Fasciated wren T1-T2 / T2-T3 Passeriformes Troglodytidae Cantorchilus superciliaris Superciliated wren T1-T2 / T2-T3 Cathartiformes Cathartidae Cathartes aura Turkey vulture ( T1-T2 / T2-T3 Columbiformes Columbidae Columbina cruziana Croaking ground dove T1-T2 / T2-T3 Charadriiformes Charadriidae Charadrius vociferus Killdeer T1-T2 / T2-T3 Piciformes Picidae Colaptes rubiginosus Golden-olive woodpecker T1-T2 / T2-T3 Cathartiformes Cathartidae Coragyps atratus Black vulture T1-T2 / T2-T3 Cuculiformes Cuculidae Crotophaga sulcirostris Groove-billed ani T1-T2 / T2-T3 Pelecaniformes Threskiornithidae Eudocimus albus American white ibis T1-T2 / T2-T3

95 ANNEXES 6 ANNEXES

[GRI 304-4] Order Family Species Common name Monitoring Path Psittaciformes Psittacidae Forpus coelestis Pacific parrotlet T1-T2 / T2-T3 Suliformes Fregatidae Fregata magnificens Magnificent frigatebird T1-T2 / T2-T3 Passeriformes Furnariidae Furnarius leucopus Pale-legged hornero T1-T2 / T2-T3 Accipitriformes Accipitridae Geranoaetus polyosoma Variable hawk T1-T2 / T2-T3 Charadriiformes Recurvirostridae Himantopus mexicanus Black-necked stilt T1-T2 / T2-T3 Passeriformes Icteridae Icterus graceannae White-edged oriole T1-T2 / T2-T3 Passeriformes Mimidae Mimus longicaudatus Long-tailed mockingbird T1-T2 / T2-T3 Passeriformes Icteridae Molothrus bonariensis Shiny cowbird T1-T2 / T2-T3 Passeriformes Tyrannidae Muscigralla brevicauda Short-tailed field tyrant T1-T2 / T2-T3 Apodiformes Trochilidae Myrmia micrura Short-tailed woodstar T1-T2 / T2-T3 Passeriformes Thraupidae Piezorina cinerea Cinereous finch T1-T2 / T2-T3 Passeriformes Polioptilidae Polioptilia plumbea Tropical Gnatcatcher T1-T2 / T2-T3 Passeriformes Tyrannidae Pseudelaenia leucospodia Grey-and-white tyrannulet T1-T2 / T2-T3 Passeriformes Emberizidae Rhynchospiza stolzmanni Tumbes sparrow T1-T2 / T2-T3 Passeriformes Thraupidae Sicalis flaveola Saffron finch T1-T2 / T2-T3 Passeriformes Thraupidae Sicalis taczanowskii Sulphur-throated finch T1-T2 / T2-T3 Passeriformes Furnariidae Synallaxis stictothorax Necklaced spinetail T1-T2 / T2-T3 Passeriformes Thamnophilidae Thamnophilus bernardi Collared antshrike T1-T2 / T2-T3 Passeriformes Troglodytidae Troglodytes aedon House wren T1-T2 / T2-T3 Passeriformes Tyrannidae Tyrannus niveigularis Snowy-throated kingbird T1-T2 / T2-T3 Piciformes Picidae Veniliornis callonotus Scarlet-backed woodpecker T1-T2 / T2-T3 Columbiformes Columbidae Zenaida meloda West Peruvian dove T1-T2 / T2-T3 Columbiformes Columbidae Zenaida auriculata Eared dove T1-T2 / T2-T3

96 ANNEXES 6 ANNEXES

[GRI 304-4] Order Family Species Common name Monitoring Path Squamata Teiidae Dicrodon guttulatum Peru desert tegu T1-T2 / T2-T3 Squamata Tropiduridae Microlophus occipitalis Knobbed Pacific iguana T1-T2 / T2-T3 CENTRAL TD (500 KV Chilca-Zapallal to 220 KV Planicie-Zapallal TL) Accipitriformes Accipitridae Parabuteo unicinctus Harris's hawk Río Lurín / Río Rímac / Río Chillón Apodiformes Trochilidae Amazilia amazilia Amazilia hummingbird Río Lurín / Río Rímac / Río Chillón Falconiformes Falconidae Falco peregrinus Peregrine falcon Río Lurín / Río Rímac / Río Chillón Falconiformes Falconidae Falco sparverius American kestrel Río Lurín / Río Rímac / Río Chillón Psittaciformes Psittacidae Forpus coelestis Pacific parrotlet 02 transectos de 100 metros de diferencia CENTRAL TD (Amarilis Substation and Connection Links) Accipitriformes Accipitridae Geranoaetus polyosoma Variable hawk 02 transectos de 100 metros de diferencia Accipitriformes Accipitridae Geranoaetus melanoleucus Black-chested buzzard-eagle 2 transectos de 100 metros de diferencia Apodiformes Trochilidae Amazilia chionogaster White-bellied hummingbird 2 transectos de 100 metros de diferencia Apodiformes Trochilidae Colibri coruscans Sparkling violetear 2 transectos de 100 metros de diferencia Falconiformes Falconidae Falco femoralis Aplomado falcon 2 transectos de 100 metros de diferencia Falconiformes Falconidae Falco sparverius American kestrel 2 transectos de 100 metros de diferencia Carnivora Canidae Lycalopex culpaeus Culpeo 2 transectos de 100 metros de diferencia Rodentia Muridae Mus musculus House mouse 2 transectos de 100 metros de diferencia Squamata Tropiduridae Stenocercus cupreus Copper Whorltail Iguana 2 transectos de 100 metros de diferencia NORTHERN TD (West Chiclayo– Guadalupe TL) Accipitriformes Accipitridae Geranoaetus polyosoma Variable hawk 60 transectos de 1,200 metros de separación Apodiformes Trochilidae Amazilia amazilia Amazilia hummingbird 60 transectos de 1,200 metros de separación Psittaciformes Psittacidae Forpus coelestis Pacific parrotlet 60 transectos de 1,200 metros de separación Strigiformes Strigidae Athene cunicularia Burrowing owl 60 transectos de 1,200 metros de separación

97 ANNEXES 6 ANNEXES

[GRI 304-4] Order Family Species Common name Monitoring Path Strigiformes Strigidae Glaucidium peruanum Pacific pygmy owl 60 transectos de 1,200 metros de separación Carnivora Mephitidae Conepatus semistriatus Boddaert, 1785 Striped hog-nosed skunk 60 transectos de 1,200 metros de separación Quiroptera Phyllostomidae Glossophaga soricina Pallas, 1766 Pallas's long-tongued bat 60 transectos de 1,200 metros de separación Rodentia Chinchillidae Lagidium peruanum Meyen, 1833 Northern viscacha 60 transectos de 1,200 metros de separación Rodentia Muridae Mus musculus Linnaeus, 1758 House mouse 60 transectos de 1,200 metros de separación Reptilia Gekonidae Phyllodactylus kofordi Coastal leaf-toed gecko 60 transectos de 1,200 metros de separación Reptilia Teiidae Callopistes flavipunctatus False monitor 60 transectos de 1,200 metros de separación Reptilia Teiidae Dicrodon guttulatum Peru desert tegu 60 transectos de 1,200 metros de separación Reptilia Tropiduridae Microlophus occipitalis Knobbed Pacific iguana 60 transectos de 1,200 metros de separación Reptilia Tropiduridae Microlophus thoracicus talarae Tschudi's Pacific iguana 60 transectos de 1,200 metros de separación Reptilia Tropiduridae Microlophus koepkeorum Frost's iguana 60 transectos de 1,200 metros de separación Reptilia Dipsadidae Pseudalsophis elegans Colubridae 60 transectos de 1,200 metros de separación

Table 14: Biological inventory of species listed as Near Threatened (NT) according to the International Union for Conservation of Nature (IUCN) - Wildlife

Order Family Species Common name Monitoring Path NORTHERN TD (Zorritos – Machala TL) Carnivora Canidae Lycalopex sechurae Sechuran fox T1-T2 / T2-T3 NORTHERN TD (West Chiclayo– Guadalupe NORTHERN TL) Carnivora Canidae Lycalopex sechurae Thomas, 1900 Sechuran fox 60 transects 1,200 meters apart

98 ANNEXES 6 ANNEXES

[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 13 and 47 102-3 Location of headquarters 14 102-4 Location of operations 14 102-5 Ownership and legal form 82 102-6 Markets served 14 102-7 Size of the organization 9, 14, 32 and 37 102-8 Information on employees and other workers 10 and 37 102-9 Supply chain 53 102-10 Significant changes in the organization and its supply chain* - 102-11 Precautionary principle or approach 70 102-12 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

99 ANNEXES 6 ANNEXES

[GRI 102-55] GRI Standard Content Page Number Omission 102-15 Key impacts, risks, and opportunities 70 102-16 Values, principles, standards, and norms of behavior 12 102-18 Governance structure 32 102-40 List of stakeholder groups 23 - 24 102-41 Collective bargaining agreements 39 102-42 Stakeholder identification and screening 23 102-43 Approach to stakeholder engagement 23 102-44 Key topics and concerns raised 23 102-45 Entities included in the consolidated financial statements 88 102-46 Definition of the contents of the reports and Subject Coverage 22 102-47 List of material topics 22 102-48 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 24 102-54 Statement of reporting in accordance with GRI Standards 3 102-55 GRI Content Index 99 - 106 102-56 External assurance* -

* No changes were made

100 ANNEXES 6 ANNEXES

[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 72 2016 Management Approach 103-2 The management approach and its components 72 103-3 Evaluation of the management approach 72 GRI 201: 2201-2 Financial implications and other risks and opportunities arising from climate change 72 - 74 2016 Economic Performance Indirect Economic Impacts 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 203: Indirect Economic Im- 203-1 Infrastructure investments and services supported 14 and 62 pacts 2016 203-2 Significant indirect economic impacts 57 - 66 Anti-corruption GRI 103: 103-1 Discussion of the material topic and its coverage 33 - 34 2016 Management Approach 103-2 The management approach and its components 33 - 34 103-3 Evaluation of the management approach 33 - 34 GRI 205: 205-1 Operations assessed for risks related to corruption 34 2016 Anti-corruption 205-2 Communication and training on anti-corruption policies and procedures 35 205-3 Confirmed cases of corruption and actions taken 35

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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 75 2016 Management Approach 103-2 The management approach and its components 75 103-3 Evaluation of the management approach 75 GRI 302: 302-1 Energy consumption within the company 75 2016 Energy Water and Effluents GRI 103: 103-1 Discussion of the material topic and its coverage 77 2016 Management Approach 103-2 The management approach and its components 77 103-3 Evaluation of the management approach 77 GRI 303: 303-1 Interaction with water as a shared resource 77 2018 Water and Effluents 303-2 Management of impacts related to water discharge 77 303-3 Water withdrawal 77 303-5 Water consumption 77 Biodiversity GRI 103: 103-1 Discussion of the material topic and its coverage 70 – 71 2016 Management Approach 103-2 The management approach and its components 70 – 71 103-3 Evaluation of management approach 70 – 71 GRI 304: 304-1 Operations centers owned, leased or managed located within or adjacent to protected areas or areas 71 2016 Biodiversity of high biodiversity value outside of protected areas 304-2 Significant impacts of activities, products, and services on biodiversity 70 and 72

102 ANNEXES 6 ANNEXES

[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 93 - 98 by operations. Emissions GRI 103: 103-1 Discussion of the material topic and its coverage 76 2016 Management Approach 103-2 The management approach and its components 76 103-3 Evaluation of management approach 76 GRI 305: 305-1 Direct GHG emissions (Scope 1) 76 2016 Emissions 305-2 Indirect GHG emissions from energy generation (Scope 2) 76 305-3 Other indirect GHG emissions (Scope 3) 76 Waste GRI 103: 103-1 Discussion of the material topic and its coverage 78 - 80 2016 Management Approach 103-2 The management approach and its components 78 - 80 103-3 Evaluation of management approach 78 - 80 GRI 305: 306-1 Waste generation and significant waste-related impacts 78 - 80 2016 Waste 306-2 Management of significant waste-related impacts 78 - 80 306-3 Waste generated 78 - 80 Environmental compliance GRI 103: 103-1 Discussion of the material topic and its coverage 70 2016 Management Approach 103-2 The management approach and its components 70 103-3 Evaluation of management approach 70 GRI 307: 307-1 Non-compliance with environmental laws and regulations 70 2016 Environmental compliance

103 ANNEXES 6 ANNEXES

[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 55 2016 Management Approach 103-2 The management approach and its components 55 103-3 Evaluation of management approach 55 GRI 308: 308-1 New suppliers that have passed evaluation and screening filters in accordance with environmental 55 Environmental assessment of criteria suppliers Employment GRI 103: 103-1 Discussion of the material topic and its coverage 37 2016 Management Approach 103-2 The management approach and its components 37 103-3 Evaluation of management approach 37 GRI 401: 401-1 New employee hires and staff turnover 38 2016 Employment Occupational health and safety GRI 103: 103-1 Discussion of the material topic and its coverage 45 - 46 2016 Management Approach 103-2 The management approach and its components 45 - 46 103-3 Evaluation of management approach 45 - 46 GRI 403: 403-1 Occupational health and safety management system 45 - 46 2018 Occupational health and 403-2 Hazard identification, risk assessment, and incident investigation 45 - 46 safety 403-3 Occupational health services 45 - 46 403-4 Communication, consultation and participation of workers with respect to OSH 45 - 46 403-5 Training of workers in occupational health and safety. 45 - 46

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[GRI 102-55] GRI Standard Content Page Number Omission 403-6 Promotion of workers' health. 45 - 46 403-7 Prevention and mitigation of impacts on workers' health and safety directly linked to business relation- 45 - 46 ships. 403-8 Coverage of the occupational health and safety management system. 45 - 46 Training and education GRI 103: 103-1 Discussion of the material topic and its coverage 40 2016 Management Approach 103-2 The management approach and its components 40 103-3 Evaluation of management approach 40 GRI 404: 404-1 Average hours of training per year per employee. 40 2016 Training and education 404-3 Percentage of employees receiving regular performance and professional development evaluations. 40 Child labor GRI 103: 103-1 Discussion of the material topic and its coverage 69 2016 Management Approach 103-2 The management approach and its components 69 103-3 Evaluation of management approach 69 GRI 408: 408-1 Operations and suppliers with significant risk of child labor cases 69 2016 Child labor Forced labor GRI 103: 103-1 Discussion of the material topic and its coverage 69 2016 Management Approach 103-2 The management approach and its components 69 103-3 Evaluation of management approach 69 GRI 409: 409-1 Operations and suppliers with significant risk of cases of forced or compulsory labor 69 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 67 2016 Management Approach 103-2 The management approach and its components 67 103-3 Evaluation of management approach 67 GRI 412: 412-1 Operations subject to human rights impact assessments or reviews 69 2016 Human Rights Assessment Local communities 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 413: 413-1 Operations with local community participation, impact assessments and development programs 58 - 66 2016 Local Communities

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