NATIXIS -2020 Universal Registration Document

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

For a more detailed description of Natixis’ CSR (Corporate social responsibility)policy and commitments,see Chapter 6 “Non-financial performancereport”of this universalregistrationdocument,as well as section 6.4 for a description of the management of environmental, social and governance risks. A change in the businessmix of Natixis’ lending activities in favor of transactionswith a positive climate and environmental impact could have a negative impact on Natixis’ performance due to lost opportunities in sectors presenting a material environmental impact. Postponing this adjustment in its portfolios could negatively affect the credit quality. But keeping borrowers with a material climate impact in its loan book could have a negative impact on its credit quality should stricter regulations be imposed. Lastly, the ECB published its best practice guide for addressing climate risks in autumn 2020. We anticipate that this will be accompanied by a strengthening by the EBA of the regulations regarding the fight against global warming. This increase could penalize activities with a strong impact on the climate (directly through operational constraints for Natixis' clients or through the increase in the price of carbon allowances). Insofar as the energy transition will probably take place over a long period, the strengthening of these regulations could have an adverse effect on some of Natixis' activities such as financing and investment activities in the hydrocarbons, raw materials and transport sectors, for example. Natixis’ ability to attract and retain qualified employees is critical to the success of its business and failure to do so may significantly affect its performance Natixis employs over 16,900 people around the world (excluding financial investments), located as follows: 66.6% in France, 11.9% in the EMEA region, 16.4% in the Americas and 5.1% in Asia-PacificT.he performance of Natixis’ activities is closely linked to its people. Indeed, Natixis’ businessmodel is based on areas of expertise, which requires the recruitment of qualified employees. Moreover, stepped-up regulations on the back of the 2008 financial crisis require Natixis to strengthenand align its businesses to regulations - an area of expertise that requires drawing from a tight job market (scarce and mobile profiles). Natixis’ success relies in part on its ability to retain key people, be they at management level, leaders or staff, and to continue to attract highly qualified professionals and talents. A high turnover or the departureof talent could affect Natixis’ skills and know-how in key areas, which could reduce its business outlook and consequently affect its financial results. Unfavorable economic or market conditions and an economic environment of persistently low interest rates can weigh on Natixis’ profitability and financial position Natixis is the Groupe BPCE subsidiary operating in Asset & Wealth Management, Corporate & Investment Banking, Insurance and Payments. These businesses are sensitive to changes in the financial markets, and more generally to economic conditions in France, Europe and the rest of the world. Adverse economic conditions in Natixis’ main markets could have the following negative impacts in particular:

Natixis could encounter difficulties in identifying, implementing and integrating its policy in the context of acquisitions or joint ventures Natixis could consider opportunities for external growth or partnership.AlthoughNatixis intends to conduct an in-depth analysis of the companies it will acquire or the joint ventures in which it will participate, it is generally not possible to conduct an exhaustive review. As a result, Natixis may have to bear commitments not initially foreseen. Likewise, the expected results of an acquired company or joint venture may prove to be disappointing and the expected synergies may not be achieved in whole or in part, or the transaction may result in higher costs than expected. Natixis may also encounter difficulties when integrating a new entity. The failure of an announced external growth operation or the failure to integrate a new entity or a joint venture is likely to significantly affect Natixis’ profitability. In particular, the recognition of goodwill during these external growth transactions could lead, in the event of a lasting deterioration in profitability, to a write-down in the financial statements (during periodic tests) or to recognize a loss in the event of disposal. At the end of December 2020,the amount of goodwill of Natixis represented €3.2 billion, distributed among the various divisions of Natixis but mainly concentrated within the Asset & Wealth Management division. Over the recent period, significant impairments of goodwill or losses on disposals have concerned Coface (in 2016 and 2020) and H2O (in 2020). In the case of joint ventures, Natixis is exposed to additional risks and uncertainties insofar as it may depend on systems, controls and persons beyond its control and may, as such, incur its liability, suffer losses or damage to its reputation. In addition, conflicts or disagreements between Natixis and its partners within the joint venture may have a negative impact on the benefits sought by the joint venture. Preventing risks linked to climate change could have a negative impact on the performance of Natixis’ activities that operate in sectors with a negative environmental and climate impact Natixis has committed to adhering to the Paris Agreement to limit global warming to below 2°C by the end of the century. Natixis has announced numerous initiatives to support the energy transition towards a low-carbon economy, and includes initiatives to reduce financing in sectors with a material climate impact. Accordingly, Natixis has committed to stop financing companies whose main activities include the exploration, production, transportationand storage of oil sands. Natixis has also committed to stop financing projects to explore and produce oil in the Arctic region and, since May 2020, projects and companies active in shale oil and gas production. Lastly, in 2015 Natixis committed to stop financing the exploration, production, transportation and storage of coal, and includes companies for which these activities represent 50% of their business. In 2019, this percentagewas lowered to 25%. This policy was topped up with a timetable to withdraw fully from thermal coal production by 2030 for facilities in Europe and OECD countries, and by 2040 in the rest of the world. In 2019 Natixis adopted Green Weighting Factor – a tool that uses a color scale to rate a loan book’s exposure to climate risk. The aim is to encourage the lending businesses to favor clients and projects whose operations have a less harmful climate impact and at an identical credit risk.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020