Complaints, Investigation and Sanctions Procedure

The purpose of this document is to establish a procedure for the establishment, communication, knowledge, investigation and resolution of complaints made by Aguas Group Employees, Suppliers, Clients and third parties outside the Company, with respect to acts that may constitute violations of internal regulations of the Aguas Group companies, the Aguas Group Code of Ethics, Law N° 20,393, which establishes criminal liability for legal persons, the Aguas Group's Crime Prevention Model, the Anti-Corruption Policy and its associated procedures, or acts that constitute conduct involving Sexual Harassment, Labor Harassment, Discrimination and/or Unfair Situations.

This procedure is part of the Aguas Group's Compliance Management System and is complementary to the Code of Ethics, Compliance Policy, Anti-Corruption Policy and associated procedures and other internal policies, especially the Crime Prevention Model Law N° 20,393.

This Procedure applies to all the companies that make up the Aguas Group (Aguas Andinas S.A., Aguas Cordillera S.A., Aguas Manquehue S.A., Empresa de Servicios Sanitarios de Los Lagos S.A., Gestión y Servicios S.A., Análisis Ambientales S.A., Ecoriles S.A. and Aguas del Maipo S.A.), and must be observed by all persons who are part of such companies at all levels (directors and employees), acting in Chile or abroad.

The documents that complement and/or serve as reference for this procedure are:

1. Code of Ethics.
2. Compliance Policy
3. Anti-Corruption Policy.
4. Anti-Corruption Management System Manual.
5. Crime Prevention Model.
6. Gifts, Invitations and Travel Procedure.
7. Conflict of Interest Management Procedure.
8. Donations and Sponsorships Policy.
9. Donations Committee Procedure.
10. Internal Regulation on Order, Hygiene and Safety.
11. Individual work contract.
12. Protocol on Sexual and Occupational Harassment matters.

The following is a list of definitions of terms used in this document.

Sexual Harassment: Unlawful conduct that does not conform to human dignity and is incompatible with conduct at the Company. Sexual harassment, according to Article 2 of the Labor Code, is understood to mean "when a person improperly performs, by any means, sexual solicitations, not consented to by the recipient and that threatens or impairs his or her employment status or their opportunities in employment. " For these purposes, sexual harassment behavior may be considered as verbal, nonverbal or physical behavior of a sexual nature, especially when creating an intimidating, hostile, degrading, humiliating or offensive environment, regardless of gender.

It can occur from a senior position to a subordinate, or from a subordinate to a senior position, but also among peers, and even to or by third parties, such as clients, suppliers, contractors, interns and others.

Occupational Harassment: Unlawful conduct that does not conform to human dignity and is incompatible with conduct at the Company. Occupational harassment is understood, according to Article 2 of the Labor Code, as "any conduct that constitutes repeated aggression or harassment by the employer or by one or more employees against another employee or employees, in any manner, and which results in harm, mistreatment or humiliation for the person or persons affected, or threatens or impairs their employment status or employment opportunities." For these purposes, acts of harassment in the workplace may be considered as conduct or behavior that, regardless of its cause or origin, and which, in a systematic and recurring manner, entails, within the employment relationship, an impairment or dignity of the employee, trying to subject them emotionally and psychologically, and pursuing to annul their capacity, professional promotion or permanence in the workplace, creating a hostile environment and negatively affecting their work environment and the person employed.

Code of Ethics: Document containing the Company's mission and objectives, values, principles and guidelines regarding the conduct expected by the Aguas Group regarding its employees within the Company, as well as the promotion of good corporate governance practices and of commercial and labor relations between members of the company, as well as relations with its suppliers, contractors, subcontractors and third parties.

Bribery: Consents to offer or consent to give a national public official an economic or other benefit, for the benefit of a third party, to carry out the actions or incur the omissions referred to in Articles 248, 248(a) and 249 of the Criminal Code or for having performed or incurred them. Similarly, it is a bribe to offer, promise or give a foreign public official an economic or other benefit, for the benefit of a third party, to take action or to commit an omission with the goal of obtaining or maintaining, for themselves or another, any undue business or advantage in the context of any international transactions, in accordance with Article 251(a) of the Criminal Code.

Compliance Officer: The person responsible for managing the risk of compliance with obligations related to the corporate ethics of Aguas Group companies, through the development of appropriate policies and procedures based on risk management. Is also the Crime Prevention Officer (EPD in Spanish) for the purposes of what is required by Law N° 20,393 and the Ethics Officer for Aguas Group companies. For the purposes of the Complaints Procedure, they will be responsible for ensuring compliance and carrying out investigations, and may delegate the performance of all or part of the investigative proceedings to another executive or member of the Compliance area when they deem it appropriate, or a professional outside the Aguas Group if the complexity of the complaint and/or investigation so warrants. In the event the accused is the Compliance Officer, the investigation will be placed under the responsibility of the Corporate Legal Affairs Management of Aguas Andinas S.A.

Complaint: The communication made to the Compliance Officer of any conduct that is contrary to the company's regulations, any Reportable Event, or any suspicious or questionable transaction due to the procedures established for operations within the company.

Complainant: Any natural person, Aguas Group Employee, Supplier, client or a third party outside the company, who notifies the Compliance Officer of a complaint through the complaint channels established by the Aguas Group.

Accused: Any natural or legal person, whether Aguas Group Employee, contractor, subcontractor, supplier, or a third party outside the company, against whom a complaint has been filed through the complaint channels established by the Aguas Group.

Discrimination: Acts of discrimination, according to Article 2 of the Labor Code, are "distinctions, exclusions or preferences based on race, color, sex, age, marital status, union affiliation, religion, political opinion, nationality, national ancestry, socio-economic status, language, beliefs, participation in trade union organizations, sexual orientation, gender identity, affiliation, personal appearance, illness or disability, or societal origin whose purpose is to nullify or alter equality of opportunity or treatment in employment and occupation. However, distinctions, exclusions or preferences based on the qualifications required for a particular job will not be considered discrimination."

Crime Prevention Officer (EPD in Spanish): The Crime Prevention Officer is the officer especially appointed by the senior management of the Aguas Group companies for the design, implementation and control of the Crime Prevention Model as provided by Law N° 20,393. This position is carried out by the Aguas Group Compliance Officer, with the exception of Empresa de Servicios Sanitarios de Los Lagos S.A., for which the responsibility of the Crime Prevention Officer rests with the Legal Affairs Manager.

Financing of Terrorism: Consists of the act, carried out by any means, directly or indirectly, of requesting, collecting or providing funds for the purpose of being used in the commission of any of the terrorist crimes indicated in Article 2 of Law 18,14 .

Renounceable Events: Any situation that implies a violation of the company's internal regulations, the Aguas Group Code of Ethics, Law N° 20,393, which establishes criminal responsibility for legal entities, the Aguas Group's Crime Prevention Model, the Aguas Group’s Anti-Corruption Policy and its associated procedures; or conduct that constitutes Sexual Harassment, Occupational Harassment, Discrimination and/or Unfair Situations.

Money Laundering: Money laundering means any act aimed at hiding or concealing the illicit origin of certain property, knowingly arising from the commission of crimes related to illicit drug trafficking, terrorism, arms trafficking and other compliance with the provisions of article 27 of Law N° 19,913.

Crime Prevention Model (CPM): This system contains the guidelines for implementation and operation of the Crime Prevention Model in accordance with Law N° 20,393, which is designed to implement a model of organization, administration and supervision with the purpose of preventing, through risk identification and management of controls, the commission of the crimes of bribery, money laundering, financing of terrorism and reception, as well as all crimes that are added to the catalog of Article 1 of Law N° 20,393, which may affect the Aguas Group, in compliance with the provisions of said law.

Company Regulation: Refers to internal procedures and policies, such as the Internal Regulation on Order, Hygiene and Safety, Code of Ethics, Crime Prevention Model Law N° 20,393, Anti-Corruption Policy and its associated procedures, and other policies and procedures established by the Aguas Group, particularly those related to corporate ethics and those that prohibit all types of Sexual Harassment, Occupational Harassment, Discrimination and/or unfair situations.

Anti-Corruption Policy and Associated Procedures: The Aguas Group companies have an Anti-Corruption Policy whose purpose is to serve as a guide for Aguas Group employees at all levels, guiding them with respect to what the company expects and demands from their behavior in relation to third parties, including business partners, the company's own employees and, especially, public officials.

The procedures associated with the Anti-Corruption Policy are as follows:

1. Interaction with Public Officials and Lobbying Procedure.
2. Gifts Invitations and Trips Procedure.
3. Conflict of Interest Management Procedure.
4. Anti-Corruption Management System Manual.
5. Complaints, Investigations and Sanctions Procedure.
6. Donation and Sponsorships Policy.
7. Donations Committee Procedure.
8. Internal Regulation on Order, Hygiene and Security.
9. Crime Prevention Model Law No° 20,393

Service Provider/Provider: These are natural or legal persons that provide goods or services to the Aguas Group.

Complaint Procedure: Mechanism through which the Compliance Officer handles a complaint, from once they become aware of it until official notification of any transgressions within the Aguas Group regarding Renounceable Events and other situations that involve breach of Aguas Group Regulations.

Reception: Reception means any act by which a person, having knowledge as to the origin, or not being able to deny not having knowledge, either possesses, transports, buys, sells, transforms or commercializes items arising from theft, robbery, reception, misappropriation and/or theft of livestock. Likewise, all negligent conduct of those who acquire or own said assets will be considered as reception.

Internal Regulation on Order, Hygiene and Security (RIOHS): This is the instrument by which the employer regulates the obligations and prohibitions to which the employees are subject, in relation to their work, permanence and life at the Company, according to what is prescribed in Articles 153 et seq. of the Labor Code.

Ethics Officer: The person responsible for managing the appropriate means for applying the Code of Ethics, and for exercising the necessary authority to ensure compliance. The position is held by the Compliance Officer, except for Empresa de Servicios Sanitarios de Los Lagos S.A. where the responsibility of the Ethics Officer rests with the Personnel and Corporate Affairs Manager.

Sanction: Corporate disciplinary measures that affect a employee's career path imposed as a result of violating the Company Regulations and determined in the Law and the corresponding policies and procedures approved by the Organization, including the Code of Ethics , the Internal Regulation on Order, Hygiene and Safety, the Crime Prevention Model, the Anti-Corruption Policy and its associated procedures, and, of course, the individual work contract.

Unfair situation: Refers to any inequity in the employment opportunities that are presented to Employees.

Employees: All those people who have a Work Contract signed with any of the companies of the Aguas Group.

This Complaints Procedure incorporates a complaint management system based on four pillars or fundamental principles, namely: (i) expedited, (ii) confidentiality, (iii) responsibility and (iv) effectiveness.

In order to achieve this, it is essential that the companies that make up the Aguas Group have a complaints procedure which, while safeguarding due process and the rights of all the participants involved, obtains results in the shortest possible time, respecting at all times the confidentiality of the process as well as the identity of those involved. Reprisals against those who act in good faith, make complaints, appear as witnesses, or assist and/or participate in an investigation are expressly prohibited.

The guidelines that inform the Group's complaints procedure are defined by the following characteristics:

a.- Written acts: All acts of the procedure will be put down in writing by the managers, with records kept for a period of 5 years. These documents will be held in the custody of the Aguas Group Compliance Officer, who must keep a file to that effect that indicates the case number, identity of the parties involved, evidentiary background, pronouncement of the termination of the complaint, and the penalties applied or the record of the information, if applicable.

b.- Confidentiality: Acceptance of the complaints shall be kept with the maximum reservation regarding both the identity of the complainant(s) and the person or people accused, and other background information (witness statements, documents or other means of proof), towards third parties outside the investigation. Notwithstanding the foregoing, the investigation may be brought to the attention of judicial, administrative and/or public authorities, if required through a formal request duly substantiated, or if necessary according to the type of complaint, and/or when it is requested through any litigating party in a judicial or administrative venue. Likewise, the Boards of Directors of the Aguas Group and the Integrity and Compliance Committee will be informed every six months about the status of ongoing investigations. Finally, general data about the investigations, such as their annual number, type of complaint, and a brief reference of the facts investigated, may be referred to in the different annual reports given by Aguas Group companies, such as the Sustainability Report, DJSA (Down Jones Sustainability Assessment), Prohumana, among others.

c.- Rights and guarantees: The Aguas Group recognizes the the rights and guarantees of both its employees and third parties established in the Constitution and the laws in force, particularly due process.

Likewise, any investigative diligence provided by the Compliance Officer or the investigator designated by the Compliance Officer shall be adequate, necessary and proportional to the nature of the employment relationship, the fundamental rights of the employee and the facts investigated in the context of the complaint received.

Operation and Dissemination of Complaints Procedure: The Compliance Officer will be responsible for informing employees within the Aguas Group about the procedure, ensuring complete and timely information is made available to each employee through the relevant legal instruments and periodic training within the Company. Likewise, regarding suppliers and contractors, the Compliance Officer is responsible for establishing and maintaining the dissemination mechanisms that contemplate the policies and procedures making up the corporate ethical structure of the Aguas Group.

Receipt of Complaints: The Compliance Officer is responsible for receiving and channeling allegations of violations of the company's legal norms and internal regulations, as well as those related to the Crime Prevention Model, Code of Ethics, Compliance Policy, Anti-Corruption Policy and its associated procedures; and any acts that can be classified as Sexual Harassment, Labor Harassment, Discrimination and/or Unfair Situations.

Investigation: The Compliance Officer will be responsible for investigating complaints submitted through the complaint channel available on the Intranet and corporate websites, as well as concluding investigations with concrete recommendations and action proposals to the respective heads, delegating all or part of the investigative proceedings to another member of the Compliance area, or another executive qualified for such purposes, when deemed it appropriate, including someone external to the Aguas Group if the complexity of the complaint and/or research merits it. In the case of the Empresa de Servicios Sanitarios de Los Lagos, the investigation may preferably be delegated to the Crime Prevention Officer and/or the Ethics and/or Internal Audit Officer.

Resolution of the investigation: Those responsible for issuing a statement regarding the conclusions and proposals for sanctions, dismissal, filing and/or improvement, which the Compliance Officer include in the Final Report of the Investigation, will be the following Aguas Group executives:

1. The CEO, the Corporate Manager of People, Organization and Innovation and the Corporate Manager of Legal Affairs, who may be joined by the executive who exercises managerial and supervisory functions regarding the complainant and/or the accused and whose knowledge is able to ponder the facts and resolve the complaint that the investigation is about. In the event that the accused or complainant is part of the said executives, this one will have no participation in the pronouncement on the conclusions of the investigation.
2. In the case of Empresa de Servicios Sanitarios de los Lagos S.A. those responsible for issuing the pronouncement will be the CEO, the Legal Affairs Manager and the Personnel and Public Affairs Manager, the latter two provided they have not exercised investigative functions during the complaint. Those appointed may join the executive who exercises managerial and supervisory functions with regard to the complainant and/or the accused and who, because of his/her knowledge, is able to weigh on the facts and resolve the complaint addressed by the investigation. In the event that the accused or complainant includes one of the said executives, the executive shall not participate in determining the investigation’s conclusions.

The decision on recommendations and proposals of the Compliance Officer shall be taken by majority vote.

All complaints made by the Complaints Channel or Line available on the Intranet of Aguas Group companies and their respective web portals will be entered through a pre-established form.

The complainant must provide a detailed description of the facts that substantiate it, especially the date, time, place and way of taking cognizance of such facts.

To the extent possible, the complaint should contain the following information:

1. Place where the event occurred (branch, office, address, city, etc.).
2. Area of the company where the denounced event occurred.
3. Approximate date on which the observed event occurred.
4. Detailed description of the facts observed.
5. Names and positions of persons involved in the denounced facts.
6. Names and positions of possible witnesses of what happened.
7. Approximate amount related to what happened (if possible and corresponding).
8. All background information the complainant has and that allows for clarification of the facts or facilitates the investigation.

In the case of a complaint that alleges Sexual Harassment conduct, the complainant may enter it through the aforementioned Complaint Channel or Line, or directly to the corresponding Labor Inspector. If the Employee affected by the harassing behavior opts for the latter, he/she cannot file a complaint with the company.

However, they will be permitted to enter complaints through other means, such as by sending e-mail, addressed only to the mailbox created for this purpose ([email protected]), seeking and avoiding its disclosure or publicity to third parties, or through formal complaint letters addressed to the Compliance Officer, and/or in person at the Compliance Officer's office.

Once a complaint has been received by the Compliance Officer through the established Complaints Channel, the Compliance Officer will formally initiate the investigative process by either assuming the investigation personally or by referring it to a member of the Compliance group or a suitable executive for the investigation, which may be external to the Aguas Group if the complexity of the complaint and/or investigation warrants it.

If the alleged facts refer to conduct allegedly constituting Sexual Harassment, the Compliance Officer may, in their sole discretion, refer the case and forward the background to the respective Labor Inspector in order for that entity to carry out the investigation. In the latter case, the background will be sent within 5 business days and inform the complainant in writing.

If the facts denounced so warrant, and especially with respect to acts constituting Sexual Harassment, the company will take the necessary safeguarding measures regarding those involved, especially in favor of the Employee affected by the fact investigated, with the purpose of preventing further illegal acts from occurring. Considering the seriousness of the alleged acts and the possibilities derived from working conditions, safeguarding measures may include, inter alia, separation of physical spaces if the employees involved perform their functions in the same place and in the redistribution of time of the working day, among others.

The person accused must have knowledge of the facts that are imputed to him and the opportunity to defend himself, before the investigation is terminated (unless it is not possible to contact the employee and a fact is credibly proven by other means that warrants his immediate dismissal).

After the investigator is designated, the person responsible for the investigation will seek to gather all the necessary background information to carry out the investigative process, being able to summon interested parties to make a statement, requesting information that is deemed necessary from any area of the company, and, in general, conducting all relevant proceedings to carry out an investigation that complies with all the principles set out in number 5 of the present proceeding and that is appropriate, necessary and proportional to the nature of the employment relationship, the fundamental rights of the employees and the facts investigated in the context of the complaint received.

In relation to the interviews and the declaration of those involved, in other words the Complainant, witnesses and the Accused, the person in charge of the investigation will safeguard the confidentiality of the diligence and the content of the declaration in the terms established in 5b of the present procedure. It will also inform the Complainant and the Accused and/or witnesses of the following rights:

1. In the case of the interview/declaration of the Complainant and the Accused, they will be informed prior to the completion of this procedure of their right to attend accompanied by an Aguas Group Union Manager, by their Headquarters and/or by a third party they trust, who will sign the declaration together with the Complainant or Accused, also being obliged to keep the necessary reservation.
2. In the case of the interview with the Complainant, Accused and witnesses, the person responsible for the investigation will let them know their right to provide all documentation that supports the claims on which their statement is based.
3. In the case of the interview with a victim of conduct constituting Sexual Harassment, their declaration and all investigative activities that require their appearance, will be made in the presence of the employee determined by the Personnel and Work Environment Management determines in order to ensure that the person concerned is granted deferential, just and equal treatment, in accordance with the subject matter investigated.

If the Accused accepts the facts that are presented to him, the Compliance Officer will simply recommend to the respective management the imposition of the corresponding sanction.

During the investigation, the Compliance Officer, or the person to whom the investigation has been delegated, may request the information deemed relevant by any personnel of the Company, especially those Employees who have been personally affected by the facts investigated, who must collaborate and provide the required material as soon as possible.

All actions or steps carried out or designated by the Compliance Officer during the investigation period are subject to strict reservation and cannot be disclosed to any person, except for the exceptions already mentioned in the present proceeding.

The investigation will have a maximum duration of 120 business days (excluding Saturdays, Sundays and holidays), during which the investigation must be finalized as indicated by an action signed by the person responsible for the investigation and the Compliance Officer, in case the investigation has been delegated.

If the investigation refers to facts allegedly constituting Sexual Harassment, it must be concluded within 30 business days.

Upon completion of the investigation, the Compliance Officer, within 10 business days, shall communicate their findings to the executives responsible for resolving the investigation, recommending that the investigation be dismissed or, in the case of a finding of noncompliance, application of a sanction established in the Law and/or in the individual work contract and/or the Internal Regulation of Order, Hygiene and Security, and/or other internal regulations of the companies that make up the Aguas Group, such as the Code of Ethics, Compliance Policy, Anti-Corruption Policy and Associated Procedures, Crime Prevention Model, among others.

The recommendation shall be justified and shall contain all the background that served as the basis for the decision.

Those responsible for resolving the Compliance Officer’s proposal must decide on the suggested decision within 15 working days following the proposition for dismissal or application of a specific sanction. If necessary, they may request new investigations.

Notwithstanding the provisions of the preceding paragraphs and of any investigations directed by the Company, the Compliance Officer, upon becoming aware of a fact constituting those crimes referred to in Law N° 20,393 or any other that constitutes an offense, must immediately make the information available to the General Management, in order to evaluate the relevant legal actions, if appropriate.

The results of any internal investigation involving acts constituting Sexual Harassment will be sent to the respective Labor Inspector, so that, if deemed appropriate, will make the corresponding observations. If the complaint has been submitted to the Labor Inspector, whether by the person concerned or by the company submitting the complaint, the conclusions of the investigation carried out by the Labor Inspector shall be brought to the attention of the company and, in accordance with the merits of the report, the company must, within the following 15 working days counted from the reception of the same, arrange and apply the corresponding measures or sanctions.

Given that the information brought to the attention of the Compliance Officer as a result of a complaint, or collected by the Compliance Officer during an investigation process, may be considered “sensitive,” all necessary measures should be taken to safeguard their due reservation and confidentiality, except as provided in 5(b) of the present procedure. Accordingly, such information may only be disclosed by the Compliance Officer in order to fulfill the functions entrusted to them, or to enable the investigation procedure in question to be timely and effective.

This procedure will be reviewed by the Compliance Officer at least on an annual basis and must incorporate the necessary modifications regarding deadlines and procedures, in order to make the procedure more expeditious and transparent in accordance with its principles.

In addition, the Compliance Officer will be in charge of ensuring compliance with this procedure, and will report at least every six months to the Board of Directors of said compliance in their periodic report to senior management, as well as to the Integrity and Compliance Committee of the Aguas Group.

An internal communications channel has been set up on the intranet and via email ([email protected]) available to all employees to answer and resolve doubts about application of this procedure.