The Project will not support Exclusion List activities, coal-related activities, private K-12 education, or E&S higher-risk activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) retrenchment; or e) significant occupational health and safety risks. The E&S risks associated with the Fund’s investment activities are considered to be medium and can be readily addressed through mitigation measures. These risks typically include life and fire safety, safeguarding and gender-based violence (GBV), waste and hazardous waste management, pollution prevention, resource efficiency, biodiversity management and conservation, and occupational health and safety, among others. As such, the Project has been categorized as FI-2 according to IFC’s Sustainability Policy. The applicable E&S requirements for this Project will be the IFC Exclusion List, host country E&S laws and regulations, the IFC Performance Standards as applicable, and higher E&S risk activities screening.

The Reputational and Residual Risk screening of the pipeline companies did not indicate any E&S related risks or media criticism of the Bank.

The Bank of Industry Limited (BOI) has an Environmental, Social and Governance (ESG) Policy, that outlines their commitment to sustainability, responsible banking, and alignment with global best practices. From an environmental perspective, the ESG Policy addresses resource efficiency, climate change mitigation, pollution prevention, biodiversity protection, and compliance with environmental laws. Concerning social aspects, the Policy addresses human rights, diversity, health and safety, equity, women’s empowerment, and financial inclusion. The Policy emphasizes ESG integration, capacity building, collaborative partnerships, and regular reporting. The ESG Policy was revised and approved by BOI Board in March 2026. The changes were to reflect amendments to the E&S structure, with ESG now being a function of the Sustainability department, as opposed to the risk department. Other changes were to better refine the Bank’s approach to project monitoring activities, the inclusion of donor agencies in E&S management, and updates to the grievance management processes at BOI level.

In addition to an ESG Policy, BOI has in place an Environmental, Social and Governance Risk Management Framework. The ESG risk framework was developed in 2020 and was recently updated to align with the ESG Policy. The framework provides a comprehensive guide for identifying, assessing, mitigating, and monitoring ESG risks associated with the Bank's lending, investment, and internal operations. The risk management process includes the screening of all projects against the exclusion list, then projects are categorized according to the potential risk level. Other tools applied as part of the framework include the exclusion list, ESG risk assessment grids, due diligence questionnaires and sector-specific ESG risk guidelines.

BOI has capacity for E&S management. There is a Chief Sustainability Officer in place, supported by relevant staff members. In line with the 2026 ESG Policy, E&S risk management is now a function of the Sustainability Department. Revisions are being made to the ESG framework to reflect this change. BOI anticipates finalizing changes to the framework by end of quarter three in 2026. The Bank has life and fire safety plans in place.

To support the implementation of the ESMS, following commitment, IFC will review the first three E&S due diligence reports that the Bank undertakes for their transactions, and reporting to IFC will occur at least once per annum.