NATIXIS -2020 Universal Registration Document

2020 NON-FINANCIAL PERFORMANCE REPORT Managing environmental, social and governance risks

Managing environmental, 6.5 social and governance risks

2019

2018

2020

224

189

150

Number of transactions analysed by the ESR Risk team Percentage of assets most exposed to climate transition risk (a)

14.4%

17.9%

13.1%

Coal-related outstandings

€394m (b)

€118m (c)

na

Number of sector policies published

4

4

4

Number of employees trained in ESR risks in business lines and support functions

1,240 1,501

na na

na

na

Number of training hours delivered

Percentage of the total amount of RWA rated "Dark brown" under the Green Weighting Factor methodology (a) Amount of coal exposure taking into account non-dedicated corporate assets and project financing (project financing: €71m for 2020) (b) Amount of coal exposure taking into account project financing only (c)

Incorporating ESG criteria 6.5.1 in financing operations and investments Environmental, Social and Governance (ESG) risks are factored into financing and investment activities as part of a global approach involving the business lines, the ESR Department and the control functions. The approach includes drafting and applying ESR policies in the most exposed sectors, determining excluded sectors, and assessing and monitoring ESG risks on transactions and counterparties using various tools and processes (1) .

Coal industries From October 2015, Natixis undertook to stop financing coal-fired power plants and thermal coal mining around the world. It also undertook to no longer provide general-purposecorporate financing to companies for which coal-fired power plants or thermal coal mines account for over 50% of their activity. This commitment, which was the subject of a sectoral policy covering financing, advisory and Capital Markets activities and other products and services, was strengthened in June 2019, with Natixis extending its exclusion criteria to all infrastructure projects (ports, railways and any other infrastructure or facility) linked to thermal coal. It also lowered the exclusion threshold, which now applies to financing or investing in companies deriving 25% or more of their business from coal-related activities (previously 50%). The sectoral policy also applies to investmentsmade by Ostrum, for all directly managed portfolios, and to Natixis Assurances, for all general-purpose funds. Both Ostrum and Natixis Assurances have stopped investing in industrial companies deriving 25% or more of their business from coal-fired power plants and/or thermal coal mining. Mirova prohibits all investments in the fossil fueslector.

Implementation of ESR policies in sensitive sectors

6

ESR policies have been drawn up and included in the risk policies applied by the business lines working with the most sensitive sectors. These policies cover the following sectors:

2020 KEY EVENT Natixis accelerates its complete exit from the coal sector

On May 18, 2020, Natixis made a commitment to no longer support companies developing new coal-fired power plants or thermal coal mines, and will completely withdraw from thermal coal in 2030 for EU countries and other countries in the OECD and 2040 in the rest of theworld. A new detailed policy was published on October 27, 2020. For its investment activities, Ostrum is trengthening its coal exit strategy. https://www.natixis.com/natixis/fr/politique-sectorielle-rse-applicable-a-l-industrie-du-charbon-octobre-2020-en-anglais-rep_95305.html

https://www.natixis.com/natixis/jcms/ala_5415/en/environmental-and-social-risk-management (1)

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020