NATIXIS - 2018 Registration document and annual financial report

6 NON-FINANCIAL PERFORMANCE REPORT Managing environmental & social risks In accordance with Article 173, Provision VI of the Energy Transition for Green Growth Act, establishing new ESG reporting obligations, certain Natixis subsidiaries have conducted extensive efforts to measure the carbon footprint of their portfolios. Ostrum AM, Mirova and Natixis Assurance use the “Carbon Impact Analytics method, co-developed by Mirova and Carbone 4, to calculate their portfolios’ carbon footprint in terms of CO 2 emissions (see section on Natixis’ alignment with Paris Agreement objectives) . This innovative approach covers generated emissions, prevented emissions and overall contribution to the fight against climate change. It assesses investments made relative to a benchmark scenario and compared to the principal market indices. Applied to the strategies managed by Mirova, the methodology shows that the investments made by the Natixis subsidiary go below the 2°C scenario and are much better than the main benchmark indices. Physical risks Climate change results in increased frequency and/or intensity of extreme weather events, such as hurricanes, storms, droughts, and flooding. The economy stands to suffer from these physical risks, and some sectors and geographic regions are already proving vulnerable to such events, which can result in major financial losses (supply chain breaks, operating losses), alter the value of assets and affect borrower solvency. This could have a knock-on effect on credit and investment portfolios. Despite this, financial institutions lack the tools needed to analyze portfolio exposure to physical risks. Natixis has therefore committed to the ClimINVEST initiative launched by a consortium of European climate change experts, notably I4CE and Météo France. This project seeks to co-design and co-produce tools, in conjunction with financial institutions, to facilitate the inclusion of physical climate change risks in decision-making processes. The methods and tools developed will subsequently be made public to ensure these are approved by as many institutions as possible.

Low-carbon strategy Natixis believes it has a responsibility to actively combat climate change and has developed a proactive strategy aimed at reducing its direct and indirect impacts on the environment resulting from its financing and investment activities. Direct impact: Each year, Natixis measures its carbon footprint (see Chapter 6.5.3) and takes a number of measures to limit its own impact on the climate, namely: carbon neutrality of power consumption via renewable energy a supply contracts;

energy-efficient buildings; a eco-friendly business travel; a reduced paper consumption; a waste management. a

Indirect impact generated by its business lines: Natixis draws on its investment and financing operations as its key means of action the fight against climate change, both in terms of risk management and business opportunities. Natixis applies a low-carbon strategy across all of its business lines: Asset & Wealth Management, Corporate & Investment Banking, Insurance and Specialized Financial Services (see Chapter 6.3.2) . Green Weighting Factor: To step up its transition to green a finance, Natixis is developing a tool to gradually bring its financing activities into line with the Paris Agreement goals for the climate. (see Chapter 6.3.2); Green growth financing: Natixis is a major player in a renewable energy and sustainable infrastructure financing, and in green bonds; Investment products helping to combat climate change: NIM a also finances renewable energy via investment funds proposed by its affiliates; Climate risk projects financed by Natixis: As a signatory of a the Equator Principles, Natixis incorporates climate change into the environmental impact assessments conducted on its major projects: borrowers are required to present an analysis of the possible alternatives to their projects, and to report annually on the project's CO 2 emissions once it is in operation; Exclusion of carbon-intensive issuers: Since 2015, Natixis a has ceased all financing and investments in the coal sector and has also undertaken to stop financing oil sands and oil exploration in the Arctic (see Chapter 6.4.1).

484

Natixis Registration Document 2018