BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

IN FINANCING AND INVESTMENTS IN SENSITIVE SECTORS: Natixis has set up a risk monitoring team to supervise policies in sensitive sectors. ESG principles are factored into all these policies and exclusion criteria apply. These policies cover the following sectors: coal, defense, tobacco, oil and gas. They are published on the Natixis website. https://www.natixis.com/natixis/jcms/ala_5415/en/environmental -and-social-risk-management Internal CSR policies also cover the nuclear, mining and metals and palm oil sectors. In June 2019, Natixis toughened the exclusion criteria in its coal sector policy. THE GREEN WEIGHTING FACTOR: MANAGING THE CLIMATE IMPACT OF NATIXIS’ CORPORATE & INVESTMENT BANKING ACTIVITIES In 2018, in accordance with the announcements made at Climate Finance Day in December 2017, Natixis was one of the first banks in the world to use a solution to manage the climate impact of its balance sheet, going beyond simple disclosures. The bank ultimately aims to align its financing activities with the objectives of the Paris Agreement on Climate Change. It has given itself one year to set out the goals of its transition. The Green Weighting Factor has been fully incorporated into the bank’s existing loan approval process and systems since September 16, 2019. It is based on an extremely detailed approach to each sector. Each transaction is assigned a rating. The rating is based on an assessment of the impact of the financing solution on the climate and also takes into account its main non-climate environmental impacts (water, pollution, waste, biodiversity). By adjusting the expected return on each loan depending on its impact on the environment and the climate, Natixis encourages its teams to favor green financing solutions (for an equivalent level of credit risk). This is a concrete

way of contributing to the United Nations Sustainable Development Goals regarding climate change and the environment. For further information, please see the Natixis universal registration document, Chapter 6.3.2.1 “Green Weighting Factor: an innovative solution for a greener financing portfolio”. IN RETAIL BANKING ESG criteria Work has begun on determining specific ESG criteria for different sectors of activity, allowing each sector’s ESG impact to be analyzed. French and international certification and standards applicable to the sector under consideration are examined to confirm the counterparty’s commitment to take better account of ESG issues. The taxonomy for green finance From 2020, the details of the European taxonomy will systematically be incorporated into these analyses so as to assess the possible application of indicators set at a European level. IN INVESTING ACTIVITIES In 2019, Natixis Investment Managers, which groups the expertise of 25 affiliate asset management companies (€934 billion in assets under management at December 31, 2019), pursued its pledge to take Environmental, Social and Governance (ESG) issues into consideration in the investment models each of its affiliates develops. Natixis has developed different methods for measuring the impact of its portfolios. The table below provides a summary of the methods used and the results obtained. For further information, please see the Natixis 2019 universal registration document, Chapter 6.3.2.6 “Aligning with the objectives of the Paris Agreement”.

Company Calculation method

Percentage of portfolio

Carbon footprint

Global warming scenario

Mirova

Proprietary model

84.6% of portfolio

Assessment of the carbon footprint Global warming due to portfolio = 1.5°C

DNCA

Carbon footprint (scope 1 and 2 emissions) for companies in the portfolio tCO 2 eq/€m in revenues First estimate of carbon intensity of companies in the portfolio (scope 1 & 2 emissions) tCO 2 eq/€m invested

69% of portfolio

195 tCO 2 eq per €m in revenues

Naxicap

54% of the portfolio Net Asset Value

62 tCO 2 eq per €m invested (based on 2018 data)

Ossiam Carbon footprint measurement tCO 2 eq/€m in revenues

12.3% of assets under management

3 funds: 241 tCO 2 eq per €m in revenues Mandate: 209 tCO 2 eq per €m in revenues

Portfolios not listed above are not currently subject to a consolidated assessment in terms of their alignment with global warming scenarios or carbon footprint. In 2018, Natixis Assurances made a commitment to combat climate change by aligning its investment policy with the 2°C global warming scenario set in the Paris Agreement. Each year,

Natixis Assurances will devote nearly 10% of its new investments to green assets, with a target of 10% of its total investments being in green assets by 2030. At the end of 2019, over €980 million had been invested in green assets over the year. Its commitment covers all its investment portfolios (excluding unit-linked policies).

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