Corporate Governance for ESG

Doral’s management is responsible for developing, approving, and updating the Company’s vision, values, strategy, policies, and goals for advancing ESG. The Company has established a strategic framework alongside a series of concrete goals in the field of ESG that are material to its activity. These frameworks have been approved by the Company’s board of directors.

The ESG domain within the Group is led by the Vice President of Corporate Responsibility and ESG, who convenes the ESG Forum every two months, reports regularly to the CEO, and provides ongoing updates to management and the board of directors, at least once a year. The ESG Forum is also responsible for formulating, updating, and managing ongoing work plans aimed at implementing initiatives and moves within the Company to achieve its goals in this area. Additionally, some of Doral’s directors are involved in the Company’s work processes, including interactions with stakeholders.

In 2023, the board of directors and company executives participated in a dedicated training session, which, among other things, focused on ESG aspects. Moreover, the board engaged in a discussion on ethics and its application within the Company. The board directs and monitors the Company’s activities to advance ESG and approves the annual ESG report to ensure it addresses all critical issues for the Company and its stakeholders.

During 2023, the Company’s management and board of directors discussed a detailed action plan for implementing work plans and initiatives to advance ESG, considering the risks and opportunities facing the Company. The focus areas of the discussion include:

• Environment – Doral actively engages in discussions regarding environmental issues, climate change and its economic and other impacts as part of its regular activities as a company involved in green energy. The significant effects of greenhouse gas emissions, climate change, and local/regional/global geopolitical events influence the Company’s operations and the growing need for renewable energy facilities domestically and globally. At least once every quarter, Doral’s CEO presents the Company’s activities, including environmental issues, global processes, market trends, and opportunities, to the board members. Furthermore, the board has established an Environmental Risk Management Policy emphasizing compliance with legal requirements and the mitigation of adverse effects on the Company’s operations. The responsibility for risk management primarily rests with the CEO and the management team, who monitor regulatory advancements relevant to the Company’s operations.
• Social – The Company has set as a goal to promote gender diversity in its board of directors, recruiting women to new positions alongside promoting women to management positions, and in general promoting their role in the renewable energy sector through its ‘Women in Energy ‘ program. Furthermore, the establishment of renewable energy projects in peripheral areas creates jobs and develops human resources in those regions. Doral maintains partnerships with the settlement and land-use sectors, promotes community relations and support, including infrastructure improvements, support for sports teams and athletes, and creating new job opportunities. Updates on progress in these areas are presented to the Company’s management and board as part of an annual report.
• Governance – The Company’s Code of Ethics and policy documents adopted and approved by the board outline its vision, values, and commitment to prioritizing material ESG issues. To ensure compliance, the Company has conducted surveys on both securities and internal audit compliance. Based on the survey findings, the Company has implemented robust work processes, including the formulation and adoption of procedures, and provides training to employees on these subjects. Furthermore, the board of directors, through the audit committee, regularly engages in discussions concerning risk management and sustainability risks at a minimum frequency of once per year. Since late 2021, the Company has implemented an internal enforcement plan. This plan involves, among other measures, the evaluation of the board of directors’ effectiveness by the Company’s enforcement officer, who conducts competency assessments for the CEO and directors. The examination also includes the composition of the board and its committees, the expertise of external directors, and the appointment of directors with accounting and financial experience.