B3 SA Brasil Bolsa Balco: 7/19/22068-2022-VPC-External CommunicationPublic Consultation on Methodology Change to the Corporate Sustainability Index (ISE B3)

July 19, 2022 068/2022-VPC

EXTERNAL COMMUNICATION

Listed B3 Participants

Re.: Public consultation on the change in Corporate methodology

Durability index (ISE B3)

On May 31, 2022, via external communication 052-VPC-2022, B3 submitted for public consultation, for appreciation and comments from its participants and other interested parties, a proposal to modify the ISE B3 score in order to encompass reputational risk. ESG (RepRisk Index – Peak RRI) when composing the Corporate Sustainability Index (ISE B3) portfolio.

B3 would like to thank all participants for their comments regarding the public consultation. The feedback we received was very important to our thoughts on improving the ISE B3 methodology.

The public consultation received 33 comments, related to the proposal to modify the criterion for inclusion of the RepRisk Peak index in the ISE B3 score.

As shown in the following table, most respondents were against incorporating the RepRisk Peak Index into the ISE B3 score, mainly due to the following points: (I) the reputation index would be given a higher weighting than the other ESG pillars; (ii) there would be more complexity in the calculation

This document takes effect from the date of its publication. The specified validity periods apply.

This free French translation of the original Portuguese version is provided for informational purposes only, has no1 been reviewed by B3’s legal counsel and is therefore not legally binding. Any questions arising from this free translation

should be clarified by consulting the original Portuguese version. In the event of any discrepancy between this free translation and the original Portuguese version, the original Portuguese version shall prevail.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

068/2022-VPC

the ISE B3 score; (iii) as this is an overall assessment, the sector analysis would not be the best indicator of the Brazilian context; and (iv) there would not be enough time for companies to prepare before the change in methodology.

Positions on the change in methodology

For, with

Because without

sectoral

sectoral

adjustment

For,

adjustment

(Appendix I and

conditional

(Annex I of

Annex II of

on

Versus

Undecided

External

External

important

Communication

Communication

changes

at 052-2022-

at 052-2022-

VPC)

VPC)

Total

5

3

3

21

1

Conclusions and next steps

After a broad analysis of the responses and comments, B3 has decided not to change the ISE B3 methodology at the next rebalancing, scheduled for January 2023, as planned in the public consultation.

However, over the next year, B3 will work with all market agents on further discussions on aspects of the current methodology, including those related to reputational aspects, seeking to maintain ISE B3 as the ESG benchmark for the market. Brazilian.

This document takes effect from the date of its publication. The specified validity periods apply.

This free French translation of the original Portuguese version is provided for informational purposes only, has no2 been reviewed by B3’s legal counsel and is therefore not legally binding. Any questions arising from this free translation

should be clarified by consulting the original Portuguese version. In the event of any discrepancy between this free translation and the original Portuguese version, the original Portuguese version shall prevail.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

068/2022-VPC

Further information can be obtained from the Referenced Products Department by telephone on +55 11 2565-7748 and from the Sustainable Development Department by telephone on +55 11 2565-5309 or by e-mail at [email protected]

Viviane El Banate Basso

Deputy Managing Director – Issuers,

Custodian and OTC

This document takes effect from the date of its publication. The specified validity periods apply.

This free French translation of the original Portuguese version is provided for informational purposes only, has no3 been reviewed by B3’s legal counsel and is therefore not legally binding. Any questions arising from this free translation

should be clarified by consulting the original Portuguese version. In the event of any discrepancy between this free translation and the original Portuguese version, the original Portuguese version shall prevail.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Shirlene J. Manley