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ii ii2 iii i hill iii iii dlllii iii ii i ii mmmmmm Pensions and OPEB Lexington's pension and OPEB liabilities on a reported basis are smaller than the debt burden and,though manageable at this time, represent a potential future credit challenge.The town participates in the Lexington Retirement System,a single-employer defined benefit plan,and makes annual required contributions based on at least its proportional share.The town is still on track to fully fund its pension obligations by 2030 after which the town will more aggressively fund its OPEB obligations. Currently OPEB is funded at about $1.9 million annually with an increase of$50,000 each year.The town's teachers participate in the Massachusetts Teachers Retirement System in which the town receives on-behalf payments toward that liability that is covered by the Commonwealth. IIIII eAlHng t iiiii Illll utw i f IIIIIMNmm IIIII°SG C ii hill t IIIII iiiii-n Ip t Scoiiire IN le ti tira III ow C III Exhibit 5 ESG Credit Impact Score C S 2 NONE= Neutral-to-Low �i l RAc r �i'A PAc r For an issuer scored CIS-2 (Neutral-to-Low), its ESG attributes are overall considered as having a neutral-to-low impact on the current rating; i.e.,the overall influence of these attributes on the rating is non-material. Source:Moody's Investors Service The City of Lexington's ESG credit impact score is neutral-to-low(CIS-2), reflecting neutral to low environmental exposure, neutral to low social risk and a strong governance profile that supports the city's credit rating, resilience and capacity to respond to shocks. Exhibit 6 ESG Issuer Profile Scores ENVIRONMENTAL SOCIAL GOVERNANCE S 2 Neutral-to-Low Neutral-to-Low Positive JJy��J�� Illllllllllllllllllllll��ii�� IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII JJy��J��t Illlllllllllllllllllllll�ii�� IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII JJy��J��t IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Illlllllllllllll�ii��llllllllll Source:Moody's Investors Service Lexington's E environmental issuer profile score is neutral to low(E-2).The city's carbon transition, natural capital,and water and pollution risks are modest. Given Lexington's geographical location, physical climate risk is also neutral to low with no material exposure to sea level rise and moderate exposure to shocks from extreme weather events such as hurricanes and nor-easters. *il Lexington's S social issuer profile score is neutral-to-low(S-2). Lexington benefits from favorable educational attainment and health and safety. City residents have access to basic services and risks associated with demographics, labor and income and housing are limited. iiGove��riin&ll ice Lexington's G governance issuer profile score is positive (G-1).The city has a favorable institutional structure,transparency and disclosure.The city also consistently approves and releases its budgets and audited financial statements in a timely manner. Lexington's 5 6 b ui t,j a uir 2(�)2 3 ��f��i w uirm e if Illl..,�ie!niii�ii uii„'m g�,,t o uu illM A:IIINllii es!�s a le