This is a category A project. Key environmental and social (E&S) risks and issues include: (i) Effective implementation of the corporate ESHS standards, (ii) company and project-level organizational capacity to assess and manage ESHS risks; (iii) labor, working conditions and grievance mechanism, (iv) contractor and supply chain EHS management, (v) OHS management; LFS and emergency preparedness and response, (vi) pollution prevention and waste management, (vii) community health and safety and security,(viii) land acquisition and involuntary resettlement, (ix) sensitive and high-value biodiversity,  and (x), company's stakeholder engagement activities related to management of E&S aspects and its grievance mechanism.

 PS1: Assessment and Management of Environmental and Social Risks and Impacts 

Policy

At the corporate level, Engie Global has detailed E&S policies, which are applicable to all of its subsidiaries (including EEP), mergers and acquisitions, new projects and contractors. The policies form an important component of Engie’s E&S management framework, which includes: a) Corporate Governance and Sustainability, b) Corporate Environmental Policy (covering Climate, Biodiversity, Water and Circular Economy policies), c) Occupational Health and Safety, d) Corporate Social Responsibility and protection of Human Rights, e) Contractor and Supply Chain Due Diligence and Management, f) Stakeholder Engagement and Social Investment, g) Whistleblowing Policy and h) Human Resources and Code of Ethics. In addition, EEP developed policies that apply specifically to the Peruvian assets including the three specific assets currently being financed by IFC. These include a Salary Policy, a Policy on Prevention and Sanction of Sexual Harassment, a Social Affairs Policy, a Diversity and Inclusion Policy and a Sustainability Policy.

Environmental and Social Assessment and Management Systems

Engie Global implements an environmental and social management system (ESMS) which transfers corporate policies into protocols aligned with the United Nations (UN) Sustainable Development Goals, UN Declaration on Human Rights, ILO conventions and Country regulatory framework.

The EHS component of Engie Global’s management system is based on ISO standards (14001, 45001 and 9001) and is applicable to all the companies, projects and activities under the control of the Company. EEP developed and implemented its own management system in line with the corporate’s ESMS, based on country-specific E&S requirements and is ISO certified. IFC’s E&S appraisal confirmed that EEP’s management system is operational and aligned with the ‘plan-do-check-act’ cycle for continuous improvement, with indicators, targets and metrics that are reported to senior management, who are also actively involved in the determination of improvements plans, annual E&S plans and targets.

Identification of Risk and Impacts

For the operating Duna & Huambos wind power plant (WPP), EEP presented the Environmental Impact Declarations (DIAs) developed in 2017 in accordance with Peruvian legislation by the developer Grenergy Renovables, from whom EPP acquired the asset in March 2024. The WPP has been operational since 2021, while EEP started operating in March 2024. The DIAs include baseline data on physical aspects (e.g., noise, air quality, soil quality), biological aspects (e.g., flora and fauna) and socioeconomic aspects (use of soil), as well as an impact evaluation matrix and mitigation plans. Since EEP’s acquisition of the WPP, in line with EEP’s Territory Management Procedure, a technical, legal, and social survey was conducted on the properties used by the project, including wind turbines and access roads. EEP is working on updating the social information (including social baseline, property information, status of due payments as per leasing contracts) with the help of its Community Relations team, local authorities, and various stakeholders in the territory. In addition, the Company undertook noise monitoring during operations to ensure alignment with the local legislation. EEP will enhance its evaluation of risks and impacts for the WPP to be financed by IFC to include (i) shadow flicker and blade throw risks; (ii) adoption of the noise maximum permitted limits in line with World Bank Group (WBG) EHS Guidelines; and (iii) determination of a safety zone for specific activities, as better specified in the subsequent sections (see ESAP items #4, #5 and #7). In addition, to enhance the E&S risks and impacts identification process applicable to the assets that will be financed by IFC, EEP will complement their E&S screening processes (ESAP item #1) with the following supplemental E&S considerations: (i) a requirement to conduct an adequate alternative E&S analysis for the site selection process including any associated facilities (i.e. transmission lines, access roads, etc.), (ii) extend the biodiversity screening and assessment of new projects to align with IFC PS6, including proper identification of Alliance for Zero Extinction Sites or UNESCO World Heritage Sites, (as per IFC PS6, no CAPEX items funded by IFC can be undertaken in these sites), (iii) identify if a cumulative impact assessment, as per IFC PS1 requirements, might be needed, and (iv) in cases where local regulations may not require an environmental and social impact assessment due to potential limited impacts (e.g. new projects in areas where preexisting energy operations, small projects, substations, etc.), carry out and document an E&S impact assessment for internal use in line with IFC PSs and with due consideration of the WBG EHS Guidelines, supported by stakeholder analysis and management (stakeholder engagement plans and grievance mechanisms) commensurate with the E&S risks and impacts of the project. Understanding the E&S impacts of a project, regardless of the limited characteristics of these impacts, will allow EEP to define appropriate and commensurate E&S controls.

The DIA for the expansion of Intipampa solar plant includes sufficient details on E&S aspects for a project of this magnitude (51 MW photovoltaic -PV- plant), in line with PS1. No worker’s camp will be necessary for its construction, land easement of the area where the expansion will be located was already established at the time of the construction of the operating PV plant, and no PS5-related issues have been observed. The DIA includes estimations of earthworks, water consumption, energy consumptions and waste generation, as well as the identification of nearby communities (5.5 km away) and characterization of climate, biological and geological conditions and expected impacts. Up to 239 workers from the EPC contractor are expected to work on site.

For the construction of the BESS, EEP prepared a simplified Technical Justification Report (ITS) to support minor modifications to an already approved project, as the asset is built within the premises of the Chilca 1 gas-fired power plant.

EEP has conducted an Occupational Health and Safety (OHS) risk study for its main activities, in line with its Internal Occupational Health and Safety Regulations. The following documents are maintained: Risk Study, general and specific work procedures, a hazard identification, risk assessment, and control measures document/matrix (IPER) for all activities. Additionally, risk studies identify, describe, analyze, and evaluate existing risks related to equipment, installations, operations, worker evaluations, tools, and work environments, as well as potential damage to third parties and/or property resulting from work activities.

Organizational Capacity and Competency

EEP’s organizational charts demonstrate an adequate number of E&S positions to manage the ESHS affairs of the Company during construction and operations of renewable assets. All the interviewed E&S staff demonstrated the necessary expertise in the design and implementation of E&S plans as part of the E&S evaluation processes, and of managing risks and impacts of new and existing projects.

Emergency Preparedness and Response Plan (EPRP)

Engie Global has a Crisis Policy that establishes the minimum requirements that its subsidiaries must follow, regardless of their geographical location, to manage crisis situations, including emergencies and incidents. Specific functions and responsibilities are defined for regional directors, country managers, country HSE coordinators, and asset HSE managers and personnel. Based on it, EEP prepared a Crisis Management Manual and an Emergency Preparedness and Response protocol that outlines the Company requirements for the EPRP that each project or site needs to develop. The protocol requires the definition of control plans, includes potential emergency scenarios, emergency contacts and communication flows (internal and with community leaders and government authorities), protocols for the use of equipment, and drills. To test the strength of the organization and to ensure continuous improvement, the entities carry out drills. Emergency brigades are trained to respond to the main risks of each site. EEP prepared an Emergency Procedure for each of the assets included in the Use of Proceeds.

In terms of climate change adaptation, EEP’s OHS procedures include provisions to stop working when heavy rains or lightning are detected by the weather monitoring and forecasting system at each plant, and EEP includes sunscreen as part of its workforce personal protective equipment.

Monitoring and Review

In accordance with the environmental permits, the Company is requested to report to the relevant authorities on the compliance with the commitments made for each of the projects through the relevant environmental monitoring plans. KPIs are set for the main aspects including water use, noise levels, waste and wastewater generation, flora and fauna.

EEP conducts internal audits to assess its environmental, social, and occupational health and safety performance, and undertakes EHS walkdowns periodically, recording findings in the Engie Previene software. Additionally, EHS audits of contractors are conducted with a risk-based periodicity. A Continuous Improvement Management tool is available to all EEP’s staff to include improvement actions that apply to all the EEP organization, including high potential near misses, incidents requiring root-cause analysis, grievances from clients and recurrent issues (including environmental and OHS incidents). The Identification and Evaluation of Regulatory Requirements procedure is used to monitor and identify regulations or regulatory projects impacting the business. It also outlines actions to mitigate negative impacts or maximize opportunities for EEP and assigns responsible parties for regulatory follow-up.   The relevant authorities do not have a fixed schedule for periodic inspections and are authorized to perform unannounced inspections.

E&S Contractor Management

All service providers entering EEP premises must meet Occupational Health and Safety (OHS) requirements and comply with EEP’s safety policies, rules, and documents. EEP contracted a third party (HODELPE) to collect all prospective contractors’ documentation to ensure the alignment with legislation and E&S management good practice. To ensure this, safety factors are included in the evaluation of service bids, and compliance with the Occupational Health, Safety, and Environmental Guide (Guia SSOMA) is mandatory. Contracts include clauses requiring suppliers to adhere to EEP’s safety standards.

During contract performance, unscheduled environmental and safety audits and controlled self-evaluations are conducted. OHS and environmental management gaps can result in penalties or contract termination. Performance assessments rate services based on compliance with safety principles. Indicators include contractor performance on preventive measures, such as walkdowns, High Potential Incidents (HIPOs), and event reporting. Long-term contractors must achieve over 90% in annual audits and comply with their OHS programs. A yearly OHS program is put in place for each contractor detailing the execution dates, number of activities, and responsible parties on a monthly basis for the following areas: work inspections, equipment and tools inspections, facility inspections, safety committee meetings, program follow-up meetings, safety walk-throughs by management, safety talks, and drills.

PS2: Labor and Working Conditions 

As of December 2024, EEP’s workforce included 543 (76% male and 24% female workers) full-time employees at its corporate headquarters and projects and 615 workers from contractors. 68 EEP workers are employed at the three sites under IFC financing and 38 workers from contractors.

Human Resources Policies and Procedures

EEP’s Human Resources Policy and Code of Ethical Conduct apply to all workers, direct and indirect, subcontractors and supply chain, and are aligned with local regulations and consistent with PS2 requirements as well as relevant ILO conventions, covering labor and working conditions, non-discrimination, promoting equal opportunity, parity in pay between men and women, and respecting freedom of association, inclusion of disabled workers and including prohibition of child and forced labor. Employees are provided with written contracts describing labor and working conditions, and, through the induction program, are informed of the corporate policies which are also available in the Company’s website.  E&S contractual agreements with all contractors require compliance with the Company’s relevant policies and the Code of Ethical Conduct.

EEP implements a Worker’s Housing Policy, as well as an internal Policy on Campsite management. In addition, the content of the Minimum Occupational Health and Safety Requirements for Projects applies, defining OHS requirements for campsites. For the Intipampa expansion project, no workers' camp will be required, given that the plant is located less than 20 km from Moquegua, a city with a population of roughly 65,000 inhabitants. For the projects funded by IFC currently in operation, EEP arranges suitable accommodation for the limited number of workers required for their operations in the nearby towns.

Working Conditions and Terms of Employment

All employees receive a written contract that outlines their rights, responsibilities, benefits and compensation. Through monthly desk audits and field inspections the Company verifies adequate working and occupational health ,and safety conditions are provided by contractors and suppliers. Working conditions are adequately outlined in the HR Internal Regulations manual including hours, benefits, overtime, compensation, and others. EEP conducts annual organizational climate surveys with a participation rate of 98%.

EEP implements a Program for Local Hiring. At Intipampa Expansion local hiring was established as 100% of all unskilled labor.

Worker’s Organizations

EEP’s Code of Ethical Conduct respects the right of workers to unionize, and to collective bargaining. Of the 543 EEP workers, 318 are unionized.  EEP’s collective bargaining agreements extend beyond strict compliance with the law, to include bonus days, additional health and safety bonuses and 28 days of paternity leave.

Non-discrimination and Equal Opportunity

EEP implements its Diversity, Equity and Inclusion (DEI) Policy which aligns with PS2, and which applies to direct and indirect workers.  The policy prohibits, among others, discrimination on the basis of age, gender, sexual orientation, race, ethnicity, color, marital status and political orientation. EEP’s Code of Ethical Conduct proscribes all forms of discrimination and promotes equal opportunity, inclusion and equity and has achieved the EDGE certification for diversity, equity and inclusion.

In alignment with Engie Global’s policies, EEP takes an active role in DEI hiring with the creation of programs such as the Young Talent program to recruit youth from diverse backgrounds, and the WARMI Program which recruits women engineers internally and externally, offering them a three-year opportunity to sample a range of job opportunities within EEP. EEP has set a goal to achieve a gender balance of 30% women in the workforce (currently 24%) and 32% women in leadership (currently 23%) by 2030. The high numbers of women in leadership positions, relative to number of women workers, reflects EEP’s approach to increase gender balance by starting with increasing the number of women in managerial positions.

Worker’s Grievance Mechanism

The Company has an online mechanism, the Ethics Mechanism (Resguarda), accessible to all workers, subcontractors, union members, and supply chain, to address ethical queries, concerns and complaints. All communications are registered and addressed. The mechanism is broadly communicated through the induction program and allows for the submission of complaints online or by phone, through the unions, and through EEP’s intranet.

EEP’s code of Ethical Conduct prohibits all forms of labor abuse and harassment including Gender-Based Violence (GBV). EEP manages sexual harassment, abuse, and other forms of GBV through its Policy for the Prevention and Sanction of Sexual Harassment, GBV and its Protocol for Managing Cases of Sexual Harassment. The Protocol aims to create a safe work environment for all and to ensure prompt response to any grievances related to harassment or GBV. The Protocol ensures confidentiality while promoting a survivor-centered resolution. To address cases that may occur, EEP has created the Committee to Intervene in Cases of Sexual Harassment and GBV, which is comprised of two workers and two EEP’s managers, is also obligated to notify the Ministry of Labor of the grievance and its resolution. To date, 95% of EEP employees have participated in GBV prevention training.  As per ESAP item #2,  EEP will enhance its existing Ethic’s Mechanism (Resguarda), as well as its Protocol for Managing Cases of Sexual Harassment, to allow for the submission and resolution of anonymous complaints and align them to PS2.

Child and Forced Labor

EEP contractually prohibits child or forced labor in their workforce and their supply chain through contractual clauses applied to all contractors and supply chain. Compliance with these provisions is assured establishing the right of EEP to perform labor audits to all contractors, and implementing pre-screening of suppliers. Failure to comply with these stipulations allows EEP to terminate contracts. 

Supply Chain

EEP’s suppliers were selected among those with whom Engie Global formalized framework contracts. The following documents govern Engie Global’s supply chain management and alignment with France’s SAPIN II regulations and IFC PS1 and PS2: Vigilance Plan, Ethics Charter, Code of Conduct for Relations with Suppliers, Due Diligence Policy for Direct Suppliers and Subcontractors.  The requirements outlined in these documents apply throughout the supply chain, including to wind, BESS and solar components, and are incorporated in the standard Ethics and Corporate Social Responsibility (CSR) clause found in all EEP’s contracts. The corporate supply chain CSR objectives are managed by the headquarter Procurement Department with Chief Procurement Officers at a Business Unit level reporting to them.

Engie Global’s Supply Chain Code of Conduct (applicable for EEP) requires suppliers to comply with laws and regulations, as well as group’s commitments including social responsibility, and avoidance of conflict of interest. Through a supply chain due diligence program, Engie Global has identified preferred suppliers who are pre-vetted and approved for use in all subsidiaries (including EEP). The corporate procurement policy includes a supplier code of conduct to address and prohibit labor issues including child and forced labor with provisions for termination of contracts should a violation occur. Engie Global employs third parties to conduct CSR assessments of key suppliers. EcoVadis’ assessment includes scoring on the company’s environment, labor and human rights, ethics and sustainable procurement. The due diligence is conducted in two stages, an initial process is conducted at the country or regional level; if no red flags are identified the due diligence continues through the standard process. For country offices, if additional support or due diligence is required, the Paris corporate office can provide support. A red flag is automatically triggered for high-risk suppliers including solar, BESS and wind components, triggering Engie’s internal due diligence, third-party assessment and/or site visits (assisted by Engie China), as required. As part of the due diligence, Engie requires a “bill of materials” – a list of all the material in the components. 

Occupational Health and Safety (OHS)

OHS management depends directly on the CEO, to whom the OHS manager reports directly. Two safety leaders (one for renewable & hydropower plants and one for thermal power plants) manage the work of the safety coordinators and supervisors at each unit. EEP has established a robust and well-structured OHS management system based on ISO 45001 standards and good practices. This system covers all activities performed by employees, contractors, and subcontractors, with a strong focus on high-quality OHS training and workforce competency, especially for those involved in high-risk activities. Engie adheres to country-specific OHS and technical regulatory standards and implements a series of corporate actions, group rules, programs, and activities that exceed legal compliance, fostering a safety culture and continuous improvement. Since 2022, the company has implemented the One Safety Program, which aims to strengthen and raise awareness about workplace safety among all workers through talks and training sessions. As part of this program, EEP trains coaches to provide culture and leadership training to managers and leaders, conducts awareness campaigns, and ensures the induction of all personnel on preventive tools. EEP staff records preventive activities through the ENGIE Previene application, which includes a feedback system to improve the reporting time of events that could compromise the safety of personnel or third parties. Contractors are monitored in accordance with the Guia SSOMA, and the directives outlined in the document are mandatory to ensure the maintenance of high OHS standards. No Lost-time injury has been recorded between January 2024 and December 2024 in EEP for both staff and contractors.

Workforce health and hygiene is managed through the Occupational Medical Evaluations and Immunizations for EEP's Own Personnel procedure. The procedure establishes guidelines for conducting occupational medical evaluations to identify potential occupational diseases or restrictions related to job performance. Additionally, it defines the immunization protocol based on the risks to which employees are exposed.

PS3: Resource Efficiency and Pollution Prevention 

Project activities include the construction of a photovoltaic plant and the operation of a BESS and a WPP.

EEP has plans in place to manage resources efficiently, preventing pollution, and adhering to local regulations. The main greenhouse gases (GHG’s) contribution will happen during the PV plant construction activities due to the burning of fossil fuels from the use of vehicles and heavy machinery. During operations, transportation of industrial water for panel cleaning from the Ilo 2 thermal power station’s desalination plant (property of EEP and located 119 km away from Intipampa, four expected trips per month) and the use of machinery for cleaning the panels are expected to be the main source of GHG’s. EEP’s renewable business unit. An area of improvement that can support EEP’s efforts to reduce its GHG inventory is to include any GHG-related emissions from SF6, which is normally used in some equipment in substations. In this context, EEP will, as part of ESAP item #3, develop an SF6 Management Plan to provide framework guidance on SF6 mapping, management, monitoring and reporting according to industry best practices to prevent and minimize risks and impacts. The Company will apply the SF6 management plan to the assets funded by IFC. Bifacial photovoltaic modules will be installed for the solar plant expansion, enhancing generation efficiency

For the plants in operations, water usage will be limited to domestic and sanitary purposes. Wastewater is disposed in septic tanks and collected by authorized contractors (EO-RS) following local requirements.

Regarding Intipampa, domestic water is supplied by an authorized service provider from the city of Moquegua. EEP undertakes both dry and wet panel cleaning, using water provided by the desalination plant of Ilo 2. Total water usage during Intipampa expansion’s operations is expected to be approximately 1,300 m3 per year, including water for dust control on internal roads.  No groundwater will be extracted from the area of the solar power plant due to the scarcity of this resource in the region. In terms of wastewater, The Intipampa Expansion project will use chemical toilets, portable sinks, and a 5.0 m³ septic tank, with wastewater managed by an EO-RS. For up to 229 people, a maximum of 18.32 m³/day of wastewater is expected. Industrial wastewater will be collected in a 5.0 m³ sealed concrete tank, managed weekly by an EO-RS. Equipment washing will occur in the vehicle washing area equipped with a grease trap, inspected monthly and serviced when 75% full.

The operating BESS is not a significant noise source. During the construction of the Intipampa solar plant, noise levels will be typical of construction activities and expected to be below Peruvian and IFC standards. The 5.5 km distance from receptors is sufficient to prevent any significant noise impacts.

Duna & Huambos WPP’s noise in operation is monitored yearly at the substation, as required by the local legislation. As per ESAP item #4, the Company will carry out dedicated noise surveys at the residential receptors to determine the day and night noise levels and their alignment with the maximum permitted limits in WBG’s EHS General Guidelines. In case of any exceedance at the receptor, EEP will implement adequate mitigation measures and, if insufficient, will design and implement a resettlement plan developed in close consultation with affected households (see PS5 below).

Shadow flicker was not modeled during the preparation of the WPP's DIA. EEP will conduct a shadow flicker impact assessment in accordance with the IFC's EHS Guidelines for Wind Energy (ESAP item #5). If any exceedance in shadow flicker exposure time is identified, EEP will develop and implement a prevention and mitigation plan to  address the shadow flicker impacts, including detailed household level survey of potential exposure to shadow flicker, curtailment during shadow flicker periods up until a time that other permanent mitigation measures have been implemented (i.e. establishment of vegetation screening and/or blinds and other measures that are acceptable to affected households based on prior consultation during planning and based on monitoring of implementation effectiveness). The plan will include a detailed assessment of prevention and mitigation alternatives prepared by a third party on the subject, contents and results of consultations and proposed monitoring efforts, including third party verification of the effectiveness of its implementation and appropriateness and effectiveness of the associated grievance mechanism.

EEP’s waste and hazardous material management procedures adhere to IFC PS3 standards. The contract with the BESS supplier includes a provision requiring the manufacturer to accept spent batteries at the end of their useful life.

PS4: Community Health, Safety and Security 

Traffic and Transportation Safety

EEP implements its Standard for Vehicle Management and Control when workers (staff or contractors) are required to use a light or heavy vehicle in order to provide a service to the Company. The Standard covers topics such as vehicle use authorization workflow, safety rules, maintenance rules, preventive measures, driving rules, speed limits, safety equipment requirements (including GPS), and others in line with good practice. For the management and transportation of hazardous substances and materials, dedicated work instructions are implemented, in line with PS4.

Security Personnel

EEP uses private security firms for the three assets.  It is EEP’s Head of Security’s job to assure the functionality of all security measures including adequacy of security guard training.  All guards receive training on Human Rights. No armed guards are currently employed at Duna and Huambos. For the BESS project and Intipampa solar project, EEP relies heavily on cameras, fencing and controlled entry into sites for security management. At the Chilca 1 plant, where the BESS is located, per shift there is one supervisor, one operator of the CCTV, three guards at the access points and two guards for patrol service. At the Intipampa solar plant, per shift there is one operator of the CCTV, one guard at the substation and two guards for patrol service. Guards for patrol service are armed with non-lethal weapons.

As per ESAP item #6, EEP will enhance the existing Security Management Policy, and then based on those enhancements, upgrade the individual “Security Management Plans” for the three assets, in line with PS4 requirements to minimize and manage identified and potential risks to communities and individuals posed by EEP’s security arrangements and potential engagement or presence of public security forces due to EEP’s operations. The Security Management Policy enhancement should include: (i) conduct of internal and external risk assessment with a focus on risks to community members from security measures; (ii) mechanisms to screen private security firms and guards through background checks; (iii) specific training requirements for security guards to include, at a minimum, human rights, GBV prevention, and prevention of use of force; (iv) define engagement mechanisms and coordination with public security forces when needed, (v) define procedures for reporting, responding and documenting security incidents, and (vi) defined process for communicating Plans to communities.

Wind turbine Safety

Several houses and other non-residential structures are located within the buffer distance of 206m recommended by the WBG EHS Guidelines for Wind Energy from the turbines of the Duna and Huambos WPP. In addition to the characterization of these structures as per ESAP items #4 and #5, EEP will (i) perform a supplemental safety assessment for blade throw and tower collapse risks and enumerate all residential buildings at risk; (ii) develop guidelines (e.g., Site Use and Safety Guidelines) to define what activities can be safely conducted within that buffer zone;   (iii) broadly disseminate the guidelines to all residents and the community, install safety signs around the perimeter of the safety buffer zone, and develop and distribute a brochure accessible to pre-literate readers, detailing permissible and restricted activities around the wind turbines to ensure safety, compliance, and proper operation of the WPP (ESAP #7).

PS5: Land Acquisition and Involuntary Resettlement 

The Intipampa solar expansion project, consisting of approximately 100 ha of solar panels and an additional transformer bay to be located in the existing substation, is located in an arid region of Southern Peru on unused government land located within the pre-existing land easement (obtained in 2017 for the currently operating solar plant). It is located 5.5 km in a direct line from the nearest community. No community land was needed or acquired for the project. Being an expansion of an existing solar plant, there will be no need to build additional access roads or transmission lines. EEP will renew its lease agreement for Intipampa for the expansion project.

The Chilca BESS is located within the pre-existing Chilca 1 gas-fired power plant’s project boundaries. No physical/economic displacement has occurred to date as a result of construction of EEP’s BESS or Intipampa projects.

The Dunas and Huambos Wind Farm, located in the Cajamarca Region, is located primarily along the road Right of Way in a sparely populated mountainous region and consists of 7 wind turbines (Dunas), 7 wind turbines (Huambos), access roads and a substation. The land acquisition, characterized as land lease agreements, was conducted by the Project developers, Grenergy, and was acquired by EEP in March 2024.

As part of ESAP item #8 EEP will enhance its gap-assessment of the WPP lease agreements part of the ongoing social information update to ensure alignment with PS5. This will involve conducting standardized current valuations of all land use (at replacement value), assessing loss of earnings, and evaluating potential impacts on livelihoods. Based on the gap-assessment results, EEP will create a Land and Easement Action Plan. This plan will update lease agreements to ensure compensation is in line with PS5 requirements, including any potential economic displacement or loss of land use. EEP will implement a communication strategy, and will work with a trusted third party identified by local landowners, if requested.

To address safety risks as determined by the noise/shadow flicker impact assessments and setback distance for blade throw or tower collapse (see ESAP items #4, #5 and #7), EEP will design a household resettlement plan in line with IFC PS5 developed, and will be implemented in consultations with affected households where required (ESAP item #9).

To ensure alignment with PS5 in assets that will be financed by IFC,  EEP, for ESAP item #10, will enhance its existing Land Management Plan to include the following elements:  (i) defining the principles for land acquisition or lease to include valuation and compensation at replacement value; equity and transparency in compensation process; avoidance of forced eviction; assessment of alternatives to physical or economic displacement; livelihood restoration where needed;  and (ii) developing “Resettlement Action Plans” or “Livelihood Restoration Plans” in case of physical or economic displacement; (iii) assurance of access to grievance mechanism for affected people.

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 

Only the Intipampa expansion and the WPP are relevant for PS6.  The Intipampa Solar Plant expansion is located within the Sechura Desert ecoregion (WWF), within arid desert plains on the Pacific slope, roughly 6 km southeast of the city of Moquegua, in Moquegua Department, southern Peru.  The approximately 100 ha expansion area of this solar plant contains Natural Habitat, consisting of extremely arid desert, with very little vegetation.  Biodiversity baseline studies were conducted to support preparation of an ESIA, which included rescue/relocation programs for 3 cactus species, two lizard species, and one mouse, none with elevated IUCN conservation status.  These measures, including the monitoring of the relocation requested by the environmental permit, are deemed sufficient to meet No Net Loss requirements. 

The Duna and Huambos WPP is located within the Marañón Dry Forests ecoregion, which is part of the Tropical and Subtropical Dry Broadleaf Forests biome (WWF) at middle elevation (2200-2400m above sea level) in Cajamarca Department.  The Project area is composed entirely of Modified Habitat, consisting of a mix of residential areas and roads, small farms, and pastureland for domestic livestock, with scattered exotic tree plantations interspersed throughout, especially near homes, gardens, and orchards.

The Projects’ substation and the 4 westernmost turbines of the WPP overlap the Mishahuanga Key Biodiversity Area (KBA).  One of the priority biodiversity values of the KBA is an endangered restricted range lizard (Stenocercus arndti) that can be found in modified habitat. The Company will conduct a Critical Habitat Assessment (CHA), per ESAP item #11, to determine whether or not the Project has been sited in Critical Habitat for this, or any other species, and if so, will implement additional conservation actions, as there are no expected operational impacts for these species..

The Duna & Huambos WPP is likely to cause collision fatalities of birds and bats during operations, though no such fatalities have yet been detected in one year of monthly checks that have been conducted by facility staff since these facilities commenced operation.  In order to manage bird and bat collision impacts in a manner that is aligned with PS6, per ESAP Item #12, the Company will employ a qualified, third party contractor to develop and implement a Biodiversity Management Plan, consisting of (i) a bird/bat post-construction fatality monitoring (PCFM) protocol, to be implemented for a minimum of 3 years; and (ii) an adaptive management framework (AMF), elaborating a set of science-based, Project- and receptor-specific fatality thresholds which, if exceeded, will trigger a requirement for the Project to implement additional collision impact mitigation measures.  Both the PCFM protocol and the AMF will conform to the guidance presented in IFC-EBRD-KfW’s Good Practice Handbook (2023) for post-construction bird/bat fatality monitoring.

 EEP has a corporate Stakeholder Relations Policy that outlines the basic principles for identification, mapping and engagement of stakeholders. The Management of Project’s Stakeholders further details guidelines to develop a Stakeholder Engagement Plan for each project to including stakeholder mapping, ongoing consultation and dissemination of information. It also establishes responsibility for managing the relationships, channels, and frequency of contact. 

As per ESAP item #13, as part of its E&S management system, EEP will implement its Management of Project’s Stakeholders Engagement Policy and will develop (i) Site-specific Stakeholder Engagement Plans (SEPs) in line with PS1, as applicable, for the projects under IFC use of proceeds to consult with potentially affected communities and relevant stakeholders; and (ii) an enhanced Grievance Mechanism (PQR) to identify and address their concerns which will explicit a) the right to submit anonymous grievance, and b) the steps to process community grievances related to GBV. .

The WPP, solar and BESS assets in IFC Use of Proceeds do not impact indigenous lands or communities. Peruvian legislation recognizes Indigenous Peoples (IPs), determines the rights and obligations of these groups and has requirements to address potential impacts and implement mitigation measures. When IP communities are potentially impacted by EEP’s projects or operations related to assets financed by the IFC, an informed consultation and participation process will be executed in compliance with the "Indigenous Peoples Framework," to be developed as per ESAP item #14.

EEP has contributed with the equivalent to 1% of the incomes that would be generated from energy production over 25 years from the Dunas and Huambos WPP.

External Communications and Grievance Mechanism

The Company has a dedicated external communications mechanism (PQR) to receive and address inquiries, requests and complaints from external parties, with a focus on communities. Inquiries, requests and complaints are collected through the online process, in person in local offices, directly with staff, during community relation’s meetings, by telephone or email or in suggestion boxes located at municipal centers. The PQR is managed by the community relation’s department.  Complaints are registered, categorized and responded in a maximum of 15 days, while 2 weeks are allowed for complainants to respond to the proposed resolution.                                                   

Contact Person: Cecilia Rabitsch

Company Name:  ENGIE Energia Peru

Address:  Republica de Panamá Avenue 3490

Email:  Cecilia.Rabitsch@engie.com

Phone:  +51 6167979