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ENGIE is a global benchmark in the energy sector. It has positioned itself as a pioneer in the new world of energy in order to address the main challenges: reduction and adaptation to climate change, access to sustainable energy and reasonable use of resources. To this end, it integrates the growth of its activities in a responsible manner with its environment and stakeholders. Each business unit of ENGIE worldwide adopts and implements, according to its capacities, needs and goals, the courses of action proposed in the Corporate Social Responsibility Policy 1 of the Group. In this regard, ENGIE Energía Perú, faithful to its global and local commitments, has developed its Corporate Sustainability Policy. Its objective is to promote the commitment of the company to its stakeholders in order to coordinate the goals of the business with social development and environmental care. This document integrates policies currently implemented in the company, and frames them in the commitments undertaken by the ENGIE Group, which are consistent with the Sustainable Development Goals (SDG) set by the United Nations Organization. GLOBAL COMMITMENTS 2 1. Responsible consumption: Involve our customers in the energy transition. 2. Sustainable purchasing: Extend the scope of our commitments to our suppliers. 3. Stakeholders: Committed to create shared value. 4. Social influence: Contribute actively to social discussion. 5. Environment: Minimize our ecological and carbon footprint. 6. Responsible investments: Provide relevant and clear information at long-term. 7. Business ethics: Always act in line with our ethical principles. 8. Human resources: Promote diversity and abilities. 9. Occupational health and safety: Keeping everyone safe is a priority. 10. Human rights: Ensure respect for fundamental rights at all times. 11. Access to energy: Promote universal access to energy. 1 Corporate Social Responsibility Policy (November 23, 2017) 2 Idem Corporate Sustainability Policy

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Page 1: Sustainability Policy DISCLAIMER: This document is a ... · DISCLAIMER: This document is a translation of the original version in Spanish and is for information purposes only. In

ENGIE is a global benchmark in the energy sector. It has positioned itself as a pioneer in the new world of energy in order to address the main challenges: reduction and adaptation to climate change, access to sustainable energy and reasonable use of resources. To this end, it integrates the growth of its activities in a responsible manner with its environment and stakeholders.

Each business unit of ENGIE worldwide adopts and implements, according to its capacities, needs and goals, the courses of action proposed in the Corporate Social Responsibility Policy1 of the Group.

In this regard, ENGIE Energía Perú, faithful to its global and local commitments, has developed its Corporate Sustainability Policy. Its objective is to promote the commitment of the company to its stakeholders in order to coordinate the goals of the business with social development and environmental care.

This document integrates policies currently implemented in the company, and frames them in the commitments undertaken by the ENGIE Group, which are consistent with the Sustainable Development Goals (SDG) set by the United Nations Organization.

GLOBAL COMMITMENTS 2

1. Responsible consumption: Involve ourcustomers in the energy transition.

2. Sustainable purchasing: Extend the scope ofour commitments to our suppliers.

3. Stakeholders: Committed to create sharedvalue.

4. Social influence: Contribute actively to socialdiscussion.

5. Environment: Minimize our ecological andcarbon footprint.

6. Responsible investments: Provide relevant andclear information at long-term.

7. Business ethics: Always act in line with ourethical principles.

8. Human resources: Promote diversity and abilities.

9. Occupational health and safety: Keepingeveryone safe is a priority.

10. Human rights: Ensure respect for fundamental rights at all times.

11. Access to energy: Promote universal accessto energy.

1 Corporate Social Responsibility Policy – (November 23, 2017) 2 Idem

Corporate Sustainability

Policy

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SUSTAINABLE DEVELOPMENT MODEL This model will allow developing action plans consistent, as a priority, with the commitments undertaken by the ENGIE Group at global level. In order to achieve a sustainable development in time, global goals are coordinated with local needs, considering the reduction of negative impacts on the economic, social, environmental and ethical areas.

In this regard, based on the analysis of the four global trends and the eleven global commitments of the ENGIE Group, we obtain the four major local goals that will finally guide our courses of action and specific goals in the operations in Peru.

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COURSES OF ACTION

TO BE ENVIRONMENTALLY RESPONSIBLETO BE ECONOMICALLY SUSTAINABLE

1. Become strategic partners of our customers.2. Ensure the quality of our products and/or services.3. Bet on internal talent.4. Motivate transparency in information.5. Ensure compliance with the obligations assumed.

- On our side with customers and suppliers.- On our contractors with their suppliers.

6. Promote a culture of saving in terms of reducing our water andcarbon footprint.

7. Promote innovation from any field.8. Choose investments that create value.9. Promote the recognition of good practices.10. Maintain up-to-date information on our operations in all our own mass

media.11. Use allocated resources responsibly.

12. Motivate a sustainable energy transition.13. Promote the least use of non-renewable resources.14. Apply the principles of the circular economy to the

purchase and use of materials or inputs.15. Generate long-term relationships with our suppliers.16. Ensure the proper implementation of protocols,

standards, manuals, guidelines considered in ourPractical Guide.

17. Measure the impact of the decisions taken, at theeconomic, social, environmental and governance levels.

18. Measure and monitor our water and carbon footprint of allour sites: operational and administrative.

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19. Build relationships focused on creating shared value with ourstakeholders.

20. Promote a culture of dialogue among local authorities,community leaders, NGOs, local mass media and othercompanies.

21. Motivate an adequate management of small local businesses, for their productive and commercial chain.

22. Promote quality education.23. Motivate a sustainable productive development.24. Play a coordinating role between local needs and various

public and private sector actors.25. Always bet on the generation of new abilities among the various

local actors.26. Promote a culture of equal opportunities and non-discrimination.27. Safeguard people, prioritizing life and health.

TO BE SOCIALLY COMMITTED TO HAVE A GOOD CORPORATE GOVERNANCE

28. Enable access to information in a timely manner.29. Maintain transparent communication with the market.30. Promote and maintain the principles and values of the

company.31. Manage risk and internal control.32. Guarantee respect for the rights of shareholders and

investors.33. Strengthen trust of shareholders and investors.34. Reduce information asymmetry gaps.

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SPECIFIC CORPORATE POLICIESThe Corporate Sustainability Policy considers the following policies, currently implemented in the company:

17. Management control policy18. Ethics Charter and Practical Guide to Ethics19. Corporate finance policy20. Corporate ethics procedure21. Board of Directors' Anti-Bribery Policy Statement22. Policy for the prevention of conflicts of interests23. Business consultant policy24. Policy for the assessment of ethical risks related to investment projects25. Policy on the appointment of an external audit company and the external audit process

26. Policy on personal data protection

In addition, the provisions of the Company's Bylaws are applicable to the development of EEP's activities.

9. Consequence policy (Occupational health and safety-related procedure, application, recognition and sanctions)

10. Social responsibility expenditure and donation policy11. Occupational health and safety non-compliance and sanctions policy12. Occupational health and safety policy13. Travel policy14. 2017 wage policy15. Information technology and communication policy16. Human rights policy

8. Environmental policy

1. Accounting policy2. Purchasing policy3. Engie Energía Perú operational excellence policy4. Expenditure policy5. Occupational health and safety policy for projects and procurement6. Insurance policy7. Dividend policy

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OUR STAKEHOLDERSENGIE Energía Perú's stakeholders are 8 and have been carefully defined in order to address issues of interest with greater accuracy.

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CLIENTS1.1. Mining and related activities: Mining companies and/or those that also develop other

activites such as casting and/or metallurgy.

1.2. Distributors: All distributing companies that must carry out a public tendering (or bidding)to acquire electric power supply,which, in turn, will sell it to regulated users whose consumptionis less than 2500 kW.

1.3. Others: This group includes those companies or economic groups that consume from 5 MWto more than 10 MW of energy and/or have more than 10 supply points throughout the country.

COLLABORATORS2.1. Collaborators: Anyone on ENGIE Energía Perú's payroll with an indefinite term or fixed-term

employment contract. Personnel under training modes are included.

2.2. Union: Those workers who, regardless of the type of contract, belong to the union.

COMMUNITIES3.1. Inhabitants from the areas of direct influence (ADI): Inhabitants belonging to the

3.2.

3.3.

communities where EEP has productive operations. Human settlements and neighborhoods are included.Inhabitants from the areas of indirect influence (AII): Inhabitants belonging to neighboring communities where EEP has productive operations. Human settlements and neighborhoods are included.Local authorities from the ADIs: 3.3.1. Community presidents: Representatives legally recognized by bylaws of a particular

community or by the State.3.3.2. Community leaders: Non-legal but opinion makers from communities where EEP has

3.4.

3.5.

3.6.

3.7.

3.8.

productive operations.Grassroots organizations: Local organizations created to meet basic needs, are recipients of donations and have legal status. Education centers: Elementary and secondary schools, technical institutes, field schools and universities; located in the ADIs and AIIs where EEP operates. Local unions: A group of companies or persons who develop a career, trade or similar activity, and who share interests. They have a local scope of action, which may be a district or a city. National unions: A group of companies or persons who develop a career, trade or similar activity, and who share interests. They have a national scope of action, and can have an impact on regions and provinces. (National Society of Mining, Petroleum and Energy (SNMPE), Automotive Association of Peru (AAP) , among others). NGO: Non-profit organizations with specific objectives; these can be environmental or social.

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CONTRACTORS AND SUPPLIERS4.1. Local contractors and suppliers: Natural persons and/or legal entities, with addresses

within the areas of influence that provide services or materials to EEP. 4.2. National contractors and suppliers: Any company that provides services or materials to EEP.

4.3. International contractors and suppliers: EEP's suppliers with legal status abroad that provide services or materials.

4.4. Insurance companies and brokers: Suppliers of business risk insurance policies.

FINANCIAL COMMUNITY5.1. Shareholders: Companies or individuals who own a percentage of EEP's shares.

5.2.

5.3.

5.4.

5.5.

Bondholders: Companies or individuals that hold EEP's bonds. Potential investors: Funds or individuals who could potentially acquire EEP's shares or securities. Investment advisors/brokers: Companies engaged in consultancy and execution of investments. Financial entities: Institutions that provide financing for short and long-term needs, including hedging derivatives, payment platforms, exchange rate operations, among others.

DIRECTORS

6.1. Non-independent: They are related to the majority economic group.6.2. Independent: They are not related to the majority economic group. They are selected due

to their career path, good standing, sufficiency and economic independence and disassociation with the company, its shareholders or directors.

AUTHORITIES7.1.

7.2.

7.3.

Regional: Representatives democratically elected by citizens or inhabitants of a particular Peruvian region. Regional Government. National sectoral: Government representatives on specific issues. They monitor and check compliance with regulations. (National Water Authority (ANA), Supervisory Body for Investment in Energy and Mining (OSINERGMIN), System Economic Operation Committee (COES), Ministry of Energy and Mines (MINEM), Superintendency of the Securities Market (SMV)). Congress: Legislative Branch.

MASS MEDIA AND OPINION LEADERS 7.1. Local: Local coverage written, radio, digital and television press in the areas of influence where EEP

has productive operations. Media with limited coverage but often the only means of communication.

7.2. National: National coverage written, radio, digital and television press. Generally, they have regionaleditions.

7.3. International: International coverage mass media. They generally carry out economic analyses of Peru and other countries in the South American region.

7.4. Opinion leaders: A person or organization that influences other individuals, from the way they thinkto the way they act. They are perceived as a reliable source of information.

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