B3 S A Brasil Bolsa Balcão : 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 Methodology Change to the Corporate

Sustainability Index (ISE B3)

On May 31, 2022, via External Communication 052-VPC-2022, B3 submitted for public consultation, for appraisal and comments by its participants and other interested parties, a proposal to change the ISE B3 Score in order to encompass the ESG reputational risk (RepRisk Index - Peak RRI) value when composing the Corporate Sustainability Index (ISE B3) portfolio.

B3 wishes to thank all of the participants for their input regarding the public consultation. The comments that we received were very important for our reflections on ISE B3 methodology enhancement.

The public consultation received 33 feedbacks, related to the proposal to change the criterion for RepRisk Peak Index inclusion in the ISE B3 Score.

As set out in the following table, most of the respondents were against incorporating the RepRisk Peak Index to the ISE B3 Score, mainly due to the following points: (i) the reputational index would be granted a heavier weighting than the other ESG pillars; (ii) there would be more complexity in the calculation

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

This free translation into English from the original version in Portuguese is available for information purposes only, has not1 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 version in Portuguese. In the event of any discrepancy between this free translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

068/2022-VPC

of the ISE B3 Score; (iii) as it is a global assessment, the sectorial analysis would not be the best indicator for the Brazilian context; and (iv) there would not be sufficient time for the companies to prepare prior to the methodology change.

Positions on the methodology change

	For, with	For, without
	sectorial
	sectorial
	adjustment	For,
	adjustment
	(Annex I and	conditional
	(Annex I of
	Annex II of	upon	Against	Undecided
	External
	External	significant
	Communicati
	Communicati	changes
	on 052-2022-
	on 052-2022-
	VPC)
	VPC)
Total	5	3	3	21	1

Conclusions and next steps

After broad analysis of the answers and comments, B3 decided not to make changes to the ISE B3 methodology at the next rebalancing, scheduled for January 2023, as set out in public consultation.

However, over next year B3 will work with all of the market agents on new discussions about aspects of the current methodology, including those related to reputational aspects, seeking to keep ISE B3 as an ESG reference for the Brazilian market.

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

This free translation into English from the original version in Portuguese is available for information purposes only, has not2 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 version in Portuguese. In the event of any discrepancy between this free translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

068/2022-VPC

Further information can be obtained from the Listed Products Department by telephone on [phone] and from the Sustainability Department by telephone on [phone] or by email at [e-mail]

Viviane El Banate Basso

Chief Operating Officer - Issuers,

Depositary and OTC

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

This free translation into English from the original version in Portuguese is available for information purposes only, has not3 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 version in Portuguese. In the event of any discrepancy between this free translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION