b'Sustainable Finance Framework 20222.2 Process for project evaluation and selectionOverall accountability for the framework will sit with ourThis can be to: Sustainability Panel. Include additional eligible projectsShould applicable The panel is responsible for coordinating and implementingloans be repaid or new projects identified.our Environmental Sustainability Strategy. Comprised ofRemove eligible projectsShould disclosed projects stakeholders from all directorates of the business includingbecome noncompliant with our strategic objectives.heads of departments and senior leadership. The panel ensures that the actions outlined in the strategy are beingThe panel is also responsible for the oversight of any social appropriately integrated into policies, plans and activities.or environmental risks associated with the eligible projects. The panel feeds into the Board Treasury Committee whoWhere relevant, mitigants will be developed to address any have ultimate oversight and governance of this framework,possible materially adverse social and/or environmental will approve eligible projects and oversee the projectrisks associated with eligible projects. We expect this to be a portfolio, and manage proceeds and reporting requirements.twostage process where risks are firstly monitored to assess The Sustainability Panel will ensure that projects areseverity followed by a tradeoff analysis versus the benefits. effectively managed by the respective business areas and are appropriate in scale and theme. We expect this to be a twostage process: risks will firstly be The framework will be reviewed periodically to ensuremonitored to assess severity, followed by a tradeoff analysis continued compliance with current market standards. Theto assess the net benefits.framework will be updated in accordance with the latest standards and republished as necessary.The framework review will also incorporate a check on suitability, ensuring relevance to CHP, with projects or investments excluded, should they no longer comply with the standards and working practices documented within framework. There may also be circumstances where projects listed require updating.2.3 Management of proceedsWe recognise the need to be transparent and our Finance teamPending the full allocation of proceeds to eligible projects, will ensure net proceeds from the applicable funding instrumentthe balance will be invested in cash or shortterm liquidity will be tracked and reconciled to the disclosed eligible project(s) money market instruments in accordance with our Treasury referenced under the framework. Where the funding instrumentManagement Policy. Proceeds will be segregated in a dedicated is a Bond, Private Placement or Term Loan, we intend to fullyaccount until allocation. allocate the proceeds to eligible projects within 36 months following receipt of the proceeds.Eligible projects will be selected in accordance with the use of proceeds criteria and the evaluation and selection process Whilst it is our intention to raise finance for new projects, wepresented above. may need to use the proceeds for refinancing activity and the framework supports this. Additionally, should we seek to reallocate and assign proceeds to existing eligible projects, we intend to look back no more than 18 months from the appropriate receipt of proceeds.16'