BPCE - 2018 Registration document

NON-FINANCIAL PERFORMANCE REPORT A range of services to meet the challenges facing our customers

Launch of carbon neutral strategies Mirova believes that players with a large carbon footprint incur a risk of underperformance over the long term that is poorly captured by the market, while players offering low carbon solutions have outperformance potential that is also not acknowledged by the market. Based on this conviction, Mirova developed and launched a range of carbon neutral strategies in 2018. The purpose of these strategies is to build a carbon neutral portfolio that will capture market inefficiencies while limiting market risks by seeking to limit tracking error and sector bias, subject to the carbon neutral constraint. Its carbon neutral strategies therefore aim to offer a low carbon investment solution that generates financial performance on the listed equities market in a given region to investors seeking to contribute to financing a low carbon economy. Mirova has developed a metric to measure the impact on employment Mirova’s Insertion Emplois Dynamique fund, which was launched in 1994, was one of the first solidarity-based “90/10” funds dedicated to job creation in France. At the end of 2014, Mirova made the ambitious choice to change the fund’s strategy to focus it entirely on job creation in France. Since the change, not only does the solidarity allocation (10% of assets) finance structures with a positive social impact across the country in conjunction with France Active, but also the equity allocation (90% of assets) invests in listed companies driving job creation in France over 3 years, based on analysis performed by Mirova. To measure the impact on job creation in France, Mirova designed a proprietary methodology to examine in detail the investments made in the fund’s listed and unlisted allocations. The analysis detects companies’ job creation dynamic upstream and allows the fund to support this dynamic with its investments. For listed companies, the fund manager and Mirova’s ESG analysts carry out targeted research into companies’ offices and forthcoming investments and hold discussions with issuers to assess the prospect of job creation over the next three years. The report demonstrates that the employee headcount in the listed companies in which the fund invests increased by an average of 10% over the review period (December 2014 – December 2017), while it was stable for CAC 40 companies overall. The portfolio’s ESG profile also improved over this period, and its carbon impact declined sharply, with the climate scenario implied by its investments (expected temperature rise) estimated at +1.5°C in June 2018, compared with +4.4°C at the end of 2014. From a financial point of view, between December 2014 and September 2018 the fund achieved a net gain of +26.6%, with net inflows totaling € 220 million. The Insertion Emplois Dynamique fund currently has € 576 million in assets under management. The fund is exposed to a risk of capital loss, equity risk, discretionary management risk, currency, interest rate and credit risks, counterparty risk, liquidity risk and price risk.

to understand and incorporate climate issues: systematically ● integrate the climate in direct talks with the management of the companies in which it invests; to reduce exposure to carbon intensive sectors through its ● investment policy for the coal sector; to offer our clients tailored products and services: Ostrum Asset ● Management has developed investment solutions that incorporate climate issues and also offers reporting on its portfolios’ carbon footprint; Ostrum Asset Management uses the Carbon Impact Analytics (1) ● method co-developed by Mirova and Carbone 4 to calculate the carbon footprint of portfolios. This innovative approach covers emissions generated within the company’s entire scope of responsibility, as well as avoided emissions and the overall contribution to climate change prevention. Furthermore, Ostrum Asset Management has published a carbon report in the annual report of its main funds since December 31, 2016, in accordance with the requirements of the French Energy Transition Act; to engage in dialog and lobbying and support investor statements ● to encourage issuers and politicians to take climate issues on board. INTEGRATION OF ESG CRITERIA IN PRIVATE EQUITY ACTIVITIES Through its six asset management companies, Natixis provides a comprehensive range of products and services across the private equity business worldwide. Three of these companies specialize in direct investment in unlisted companies: Naxicap Partners, Alliance Entreprendre (growth capital and business transfers in France and Europe) and Seventure Partners (venture capital in France). Three companies offer advisory and investment management services: Euro-Private Equity in Europe, Caspian Private Equity in the United States and Eagle Asia Management in Asia. Since 2015, Euro Private Equity and Naxicap Partners have been signatories of the Principles for Responsible Investment (PRI). In addition to the PRI, Naxicap Partners made a commitment to the IC20 (2020 Climate Initiative) to contribute to the COP21 goal of limiting global warming to two degrees. This involves taking climate change into account over the entire investment period and measuring the portfolio’s direct and indirect carbon footprint by 2020 for companies having a material impact on the climate. Euro Private Equity has established a responsible investment policy outlining its commitments as an asset management company, including its due diligence, post-investment and reporting commitments. It works in partnership with Mirova, Natixis Investment Managers’ responsible investment subsidiary, to help incorporate ESG criteria in its investment policy. For Euro Private Equity, Mirova played an advisory role in the drafting of its ESG charter and development of an analysis chart to assess the ESG engagement of portfolio managers subject to review. Naxicap Partners has implemented an ambitious ESG integration policy and formalized an ESG charter, including criteria for excluding certain industries and activities. It put together a four-person ESG team: a Head of ESG focused exclusively on this function was hired, two members of the Investor Relations team devote part of their time to ESG, and one member of the Management Board coordinates the team’s activity.

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Ostrum Asset Management: engagement for the climate

Ostrum Asset Management has launched a number of initiatives ranging from measuring the carbon footprint of its portfolios to steering investors towards sectors working to develop solutions to climate change. These initiatives are founded on four major pillars:

To learn more about this methodology: http://www.mirova.com/Content/Files/Mirova/Recherche/EstimatingPortfolioCoherenceWithClimateScenarios. (1)

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Registration document 2018