NATIXIS - 2018 Registration document and annual financial report

6 NON-FINANCIAL PERFORMANCE REPORT Managing environmental & social risks Broader objectives are also pursued through this policy: assessing Natixis suppliers using social and environmental a responsibility criteria related to their products, services or eco-designed products; encouraging suppliers to be more transparent in describing the a environmental characteristics of their products. In 2017, Natixis participated in a joint initiative involving several French Banking and Insurance companies and signed the Responsible Purchasing Charter. The aim of the charter is to encourage the suppliers of the signatory banks to implement duty of vigilance measures as part of their overall ESR approach. The charter sets a series of commitments that both parties are required to observe, based largely on the basic principles of the United Nations Global Compact in the areas of human rights, labor, the environment and anti-corruption. (1) Regarding the enforcement of the duty of vigilance law, Natixis alongside BPCE Procurement took part in a concerted effort in the bancassurance industry to map out ESR risks in purchasing activities, involving three other banking groups. The tool, which was delivered in June 2018, enables the following risks to be measured by country and by category of purchase: industries; promoting official environmental certifications and a

supplier action plan to be implemented where ESR grade is a below average; monitoring of supplier action plan. a This process was applied in 2018 (e.g. Servers category) and further consultation efforts are scheduled for 2019 (works, vehicles). Concerning purchases made by Natixis directly in certain sensitive categories (e.g. building work, furniture, promotional objects, etc.), steps have been taken by the Real Estate and Logistics Department to question its main suppliers. In 2019, this process shall also be applied to purchases made by Natixis offices abroad. To get the vigilance plan up and running, training courses will be provided by BPCE Procurement to help buyers become familiar with the new tools (risk mapping, ESR assessment, and implementation of appropriate risk prevention or mitigation plans). Duty of vigilance in everyday operations To map out risks associated with its employees and establishments, Natixis set up two other working groups comprising the Logistics and Human Resources Departments. A large majority of Natixis’ employees and establishments are located in France (83% and 75%, respectively). The environmental risks associated with Natixis’ operations have been ruled out, as its business is not liable to generate serious adverse impacts on the environment. Furthermore, the bank already applies strict environmental regulations in Europe and the US, and has launched several initiatives to limit its impact on the environment (e.g. certified buildings, use of resources, waste management, eco-friendly business travel, etc.). Regarding the risks incurred by Natixis employees and service providers in terms of human rights, the decision was made to extend efforts in areas deemed most important in view of Natixis’ businesses: working conditions, prevention of discrimination, and personal safety. These issues are already strictly governed by a number of prevailing regulations in France, notably including labor law, the personal and property safety policy, and the Professional Risk Assessment Document. A whole host of internal agreements have also been signed in France (relating to union law, collective bargaining, gender equality, the professional integration and retention of employees with disabilities, and quality of life at work). Natixis also has a large number of establishments outside France, however, and it needs to ensure that employees and service providers working outside France and Europe are not subject to major occupational health and safety risks. Natixis has decided to focus on countries in which it has a headcount (excluding financial holdings) of more than 100 employees and on countries deemed to be at risk on the country risk map, based on three indicators: gross national income per inhabitant in dollars: GNI/inhabitant a (source: World Bank) ; weekly working hours (source: International Labor a Organization) ; the index of “violence and repression of workers” (source: a ITUC (2) ) .

Fair practices and ethics

Fraud and corruption Protection of personal data Copyright and patents

Environment

Consumption of natural resources Pollution (air, water, ground) Biodiversity Carbon emissions Waste management Health and safety Working conditions Discrimination Forced labor and modern-day slavery Child labor

Human rights

The tool maps out risks by drawing on the expertise of the chosen supplier for each purchasing category, in addition to statistics on each country, in accordance with recognized standards. Of the more than 100 purchasing categories in the banking sector, the mapping system identified 13 types of high ESR risk-type purchases. These are to be the subject of targeted duty of vigilance measures: Under the new consultation procedures conducted by BPCE Procurement in sensitive categories, suppliers are assessed on the basis of their ESR performance: ESR questionnaire based on the risk map sent to the supplier; a the supplier must detail their action plan to deal with the a identified ESR risks;

ESR/Procurement together assess this response; a ESR grade built into the supplier's overall grade; a

https://back.bpce-achats.fr/storage/documents/9YMh2ecdXFSrAUhMOp4SKfZWh64bfInkxPnW5izi.pdf (1) The International Trade Union Confederation represents 340 affiliated organizations across 163 countries. (2)

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Natixis Registration Document 2018