NATIXIS - 2018 Registration document and annual financial report

NON-FINANCIAL PERFORMANCE REPORT Managing environmental & social risks

A questionnaire will be sent out to platforms in the APAC, Americas and EMEA regions to identify standard working conditions in the targeted countries, as well as the specific conditions applicable to Natixis employees and external service providers in the following areas:

climate risks liable to have a direct impact on Natixis are a addressed in the Business Continuity Plan (BCP), which includes the management of extreme weather events (e.g. storms, heatwaves, flooding of the Seine, etc.) that could affect the Company’s premises around the world. Maximum impact is estimated in the operational risks map, and results in a VaR figure (95% and 99% Value at Risk) that factors in scenario analyses and external data, the quality of the BCP and insurance; the environmental/climate risks linked to our business a operations are progressively being taken into account insofar as Natixis’ clients may themselves be subject to climate risks: these include physical risks (exposure to physical consequences caused directly by climate change) and transition risks (exposure of certain sectors to the adjustments brought about by the transition to a low-carbon economy). Pursuant to Article 173 of the French Energy Transition Act, Natixis is required to report on the climate risk management tools it has put in place and on its low-carbon strategy. Measuring the climate change risks associated with our activities: physical and transition risks Since 2016, Natixis has been part of a working group to improve the incorporation of these risks: specifically, and in line with the Autorité de Contrôle Prudentiel et de Résolution (ACPR—French Prudential Supervisory Authority for the Banking and Insurance Sector), BPCE and Natixis participated in a working group addressing Article 173, Provision V of the Energy Transition for Green Growth Act of August 17, 2015, with a view to drawing up stress test scenarios. The working group reviewed the sectors most exposed to physical risk and to transition risk. In 2018, Natixis joined the UN Environment Programme Finance Initiative (UNEP-FI) to address climate risks involving 16 international banks. Their aim is to meet the challenges of implementing some of the recommendations made by the Task Force on Climate-Related Financial Disclosure (TCFD) by establishing a joint methodology for conducting stress tests on climate change-related risks (physical and transition risks). Transition risks Transition risks can arise where a company’s business model needs to be adapted to a low-carbon economy; be it due to the introduction of strict carbon regulations, a change in customer behavior, or technological innovation. These changing market conditions can give rise to stranded assets or a significant loss in revenue, thereby exacerbating the Company’s credit risk. In 2018, Natixis took the innovative step of introducing a Green Weighting Factor, to support its clients in the shift towards lower carbon activities and in gradually lowering their carbon footprint. Climate transition risk will now be systematically taken into account in the assessment of financing opportunities (see section on Green Weighting Factor: an innovative solution for a greener financing portfolio) .

working hours; a remuneration; a conditions of dismissal; a maternity leave; a welfare protection. a

With respect to personal and property safety, a security road map will be rolled out internationally in 2019, notably including country risk monitoring tools with a view to ensuring the safety of Natixis employees and external service providers across all our business locations. Managing risks in our financing activities For several years now, Natixis has addressed the human rights and environmental risks incurred by some of its financing activities, most notably by applying the Equator Principles for project financing or specific sector-based policies applied to sensitive sectors. In addition to these due diligence procedures, Natixis has begun work on measuring the social and environmental risks borne by its clients when they first make contact with the bank. Using questionnaires tailored to each sector and gradually applied to existing and new clients, the project aims to compile a client ranking system based on duty of vigilance categories. (cf. Chapter 6.4.1) . Whistleblowing system The whistleblowing system forms an integral part of Natixis’ Code of Conduct and is based on a company-wide policy which sets the minimum standard to be applied throughout Natixis group. In July 2018, Natixis S.A., published an updated version of its existing whistleblowing system, to reflect the latest regulatory changes. The whistleblowing system is available to any person holding an employment contract with Natixis, as well as to employees of external service providers or subcontractors (cf. Chapter 6.2.1) .

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CLIMATE RISKS 6.4.3

As a financial institution and major economic player, Natixis is exposed to climate risk in the running of its operations and business activities. Incorporating climate risk is a key priority for the bank, given its potential impact on our organization and our financing and investment activities. Natixis has taken a series of measures to adapt to the consequences of climate change:

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Natixis Registration Document 2018