NATIXIS - 2018 Registration document and annual financial report

6 NON-FINANCIAL PERFORMANCE REPORT

Business line contributions to green and sustainable growth

ODD 8: Decent work and economic growth ODD 10: Reduced inequalities 2018 Key event Strong growth in the Mirova Solidaire fund

The Mirova Solidaire fund recorded strong inflows in 2018, at €20 million, and its assets under management amounted to €183 million at the end of the year. The fund extended its investments to emerging countries for up to 5% of net assets, whereas previously it invested only in projects or unlisted companies with a high social and/or environmental impact in the euro zone. The fund supports microloan providers via the inclusive financing solution, Helenos, based on a public-private partnership that fosters the growth of individual enterprises and solidarity companies founded by persons excluded from the job market. As an example, Helenos financed the FAER foundation in Romania which works in rural areas of Transylvania. It mainly helps farmers invest to expand their activities.

Social impact finance 6.3.1.5 Natixis supported the development of several emblematic social impact financing solutions in 2018: social bonds, loans for projects with social goals, fixed income structured products. A social bond finances only projects that have a positive social impact on one or more target populations. The projects financed by social bonds include vital infrastructure such as access to clean water, access to basic services like education, and maintaining or developing employment. Since the ICMA launched the Social Bonds Principles in 2017, the volume of social bonds has quadrupled, rising from $2.1 billion in 2016 to $8.8 billion at year-end 2017 (ICMA, 2018). The market is growing fast but it remains small in relation to the green bonds market. Natixis arranged the issuance of three social bonds in 2018.

ODD 8: Decent work and economic growth BPCE: issuance of the first social bond for local economic development The inaugural issuance of €300 million in green bonds by BPCE in 2015 was followed by the issuance of social bonds. In September 2018, BPCE and Natixis successfully issued the first social bond for local economic development. This issue was part of Groupe BPCE’s Sustainable Bond Framework and it follows two other human development bonds issued earlier in 2018 in Japanese yen. ODD 1: No poverty ODD 3: Good health and well-being African Development Bank: social bond In 2018, Natixis participated in the issuance by the African Development Bank of a 10-year social bond for €1.25 billion. This bond finances projects for vulnerable people in Africa: excluded and unemployed persons with no access to healthcare.

ODD 2 : Zero hunger ODD 12: Responsible consumption and production 2018 Key Event First corporate social bond issue

Natixis worked with Danone on the first ever corporate social bond issue in 2018, raising €300 million over seven years and reflecting growing investor interest in ethical and responsible investments. The food company was the first corporation to complete such a deal aligned with the Social Bond Principles. The proceeds will be assigned to projects with a positive social impact for Danone’s stakeholders, for example to encourage responsible farming practices and empower communities and social entrepreneurs.

In 2018, Natixis jointly steered and coordinated a working group on this subject within the French Observatory for Corporate social responsibility (ORSE). It published an initial report on ways to develop the social bonds market and will continue its work in 2019.

Danone: a loan with social objectives Natixis took part in a €2 billion syndicated loan for Danone that factors in environmental and social criteria. This credit facility includes an innovative payable margin adjustment mechanism that will be reviewed at least once a year based on ESG metrics: the average ESG rating by Vigeo and Sustainalytics and the percentage of sales by subsidiaries covered by B Corp. certification (high level of ESG performance).

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Natixis Registration Document 2018