Chapter Three: Instructions on Sustainable Finance

The Board of Directors of the Central Bank, in its meeting held on October 26, 2022, decided that all banks operating 1 in the Arab Republic of Egypt must comply with the following:

.1 "Incorporating sustainable finance policies into the bank's credit and investment policies through the relevant sectors, as well as establishing implementation procedures for them, in accordance with the Guiding Principles for Sustainable Finance issued pursuant to the Circular Letter dated July 18, 2021. The Central Bank must be provided with those policies and procedures no later than October 1, 2023.

.2 The bank's Board of Directors must monitor the extent of compliance with the implementation of policies and implementation procedures related to sustainable finance and approve the reports prepared in this regard.

.3 Establish an independent department for sustainability and sustainable finance reporting to the Chief Executive Officer (Managing Director) or their deputy, no later than April 1, 2023, which must include expertise in credit and risk fields to coordinate internally among the bank's different sectors.

.4 Monitor the application of the Guiding Principles referred to in item (1) above, which shall be within the responsibilities and work of the sustainability and sustainable finance department.

.5 Prepare the following periodic reports and provide them to the Sustainability Department of the Central Bank on a periodic basis:

1/5 Report on the implementation of the Guiding Principles: Prepared semi-annually, reviewing the steps taken towards implementing the Guiding Principles for Sustainable Finance mentioned above, by a maximum of July 31 and January 31 of each year, starting from July 2023.

2/5 Quantitative report on sustainable finance activities in the credit portfolio: Prepared quarterly, starting from July 1, 2023.

3/5 Sustainability Report: Prepared annually, approved by the bank's Board of Directors or its equivalent for branches of foreign banks, and includes the bank's activities related to sustainability and the efforts made to achieve them. This report must be prepared for the Global Reporting Initiative (GRI) - minimum level - at least, in cooperation with one of the offices approved by the Initiative mentioned, no later than March 31 of each year, starting from 2024.

.6 Engage an environmental consultant approved by the Ministry of Environment to assess the environmental risks of major corporate projects to be financed, in order to consult their opinion in the credit decision, starting from July 2023.

Accordingly, the attached form must be completed on the date mentioned in item 1/5 above.

Letter from the Governor of the Central Bank of Egypt dated November 3, 2022 1 1 And in cooperation with one of the offices approved by the Initiative mentioned above.

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