IBERSOL | Integrated Management Report - 2024

CORPORATE GOVERNANCE REPORT Extreme events The increasingly frequent occurrence of extreme natural events threat- ens people’s safety and the continuity of activities. The Ibersol Group has ISO certifications that guarantee high standards of health, and oc- cupational safety, in addition to complying with all the legal rules for physical safety and civil protection. Use of natural resources The Group depends on the use of natural and energy resources for its operation (namely electricity, gas and water), but is aware of the im- pacts that events such as extreme drought and price volatility in the energy market can have on its operation and results, so it maintains in- ternal policies and specific initiatives for a more efficient use of those resources. . Financial Risks Foreign exchange risk The Ibersol Group adopts a natural hedging policy regarding exchange rate risk, using financing in local currency. The exposure to exchange rate risk is limited, since the Group is mainly present in the Iberian mar- ket and has little volume of purchases outside the euro zone. The most relevant exchange rate risk comes from operations in Angola, where de- valuation of the Kwanza could affect the value of assets and the Group’s results. However, the financing contracted by the Angolan subsidiaries is denominated in the local currency and the Group monitors the credit balances in foreign currency on a monthly basis and adopts a partial hedge through Treasury Bonds of the Republic of Angola, denominated in foreign currency. In 2024, several issuances of Treasury Bonds in USD took place, in which the Group subscribed to securities in three of them. Interest rate risk The Group holds significant interest-bearing assets arising from Angolan Government Treasury Bonds denominated in US dollars and, in addition, term deposits amounting to €106 million as at 31 December, arising from 282