NATIXIS -2020 Universal Registration Document

6 2020 NON-FINANCIAL PERFORMANCE REPORT Managing environmental, social and governance risks

Analysis of reputational risk associated with involved parties For all the financing transactions referred to above, and also when deemed necessary for any other transaction, an analysis is performed to determine whether the borrowing company, its operator or main shareholder has a history of poor management of its operations, from an environmental, social or health and safety standpoint.

In the interest of establishing lasting relations with its clients, the objective is to raise awareness among the business lines – before a credit decision is made – of all the situations that can give rise to reputational risk, and where necessary to consider appropriate measures. This analysis will be systematically applied when the screening solution described below is rolled out.

A more robust client-assessment system To identify, assess and monitor the environmental, social and governance (ESG) risks of its corporate clients, Natixis has set up a complementary tool, ESR Screening .

2020 KEY EVENT Implementation of an environmental, social and governance (ESG) risk screening tool for corporate clients This new system in place in all regions includes two levels of assessment integratedwith existing risk management systems. The first level ranks clients in a risk categorybased on the context in which they do business, the maturityof their ESR risk management system, any controversiesto which they may be exposed and the type of business relationshipthey maintain with Natixis. The second level performs an in-depth analysis of the most material ESG risks. The analysis focus on counterparties identified as being the most at risk and most ofteninvolves direct discussions with the client. The system is integrated throughout client onboardingand loan approval processes to allow the systematicanalysis of ESG risks. It involves the business lines, Compliance, and the Risk and ESRdivisions. The assessmentprocesswill gradually be applied to the portfolio of existing clients, taking into account the schedule for periodic renewals of financing authorizations.

2020 KEY EVENT Deployment of an ESG risk training campaign

To support the launch of the ESR Screening process, a far-reachingtraining and acculturationwork was carried out throughoutthe year. In particular,an ESG risk trainingcampaignwas set up for target populationswithin the business lines and the Risk division. This campaign, led by Ernst & Young experts, brought together nearly 750 employeeswho were trained in ESG risks in the business sectors in which they operate. In total, Natixis employees attended 1,501 hours of traininogn ESG risks in 2020.

Duty of vigilance 6.5.2 The French law on the duty of vigilance requires Natixis to prepare, publish and implement a duty of vigilance action plan containing measures that can identify and prevent the risks of violating human rights and basic freedoms, harming the environment, and endangeringoccupationalhealth and safety, that are associatedwith the activities conducted by Natixis as well as its subsidiaries, subcontractors and suppliers. Launched in 2017, the duty of vigilance project is overseen by Natixis’ ESR Department and involves several other departments: Purchasing, Human Resources, Logistics, Compliance and Legal.

Several additional projects were initiated at the same time, with the aim of establishing a duty of vigilance plan for Natixis employees at its own offices, and also for its purchases of products and services. Work was also begun to expand the due diligence procedures implemented in respect of the bank’s financing activities. As such, particular attention is paid to climatic risks: physical and transition risks (see Chapter [6.5.3]) . Lastly, Natixis’ Compliance Department has adapted the bank’s whistleblowing system to take new regulations into account (including, in particular, the duty of vigilance, but also the Sapin II law) (see Chapter [6.2.]) .

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020