NATIXIS // 2021 Universal Registration Document

ACCOUNTABILITY REPORT ENVIRONMENTAL AND SOCIAL RESPONSIBILITY 2021 Business line contributions to green and sustainable growth

Financing and social impact investing

7.2.1.6

Sustainable bonds raise funds that may only be used to finance or refinance a series of green or social projects (only social projects for social bonds). The projects financedby social bonds and sustainable bonds include vital infrastructure such as access to clean water, access to basic services like education and healthcare and maintaining or developing employment. The volume of social bonds issued in 2021 amounted to US$215 billion, almost 1.4 times more than in 2019, and 26 times more than in 2017 ($7.9 billion), the year in which the Social Bonds Principles were launched by the ICMA. The COVID-19 crisis has brought social considerations back to the forefront of the thematic or impact financingmarket: while containmentmeasuresworsen poverty, exacerbate social inequalities and put a strain on the resilience of companies, Social bonds emissions were very well receivedby the market, as evidencedby the substantial oversubscription of order books. Natixis, sole structurer of Unédic’s social issue Carried out as part of the Social Bond Principlesof ICMA (2) , this issue representedto date (May 2020) the largest social bond ever issued in the world, all issuers combined. Worth €4 billion and maturing in 2026, the transaction was a great success with investors: at its close, the order book stood at €7.75 billion. Since then, Natixis has supported Unédic in two new issues in 2020 (June and October) and two new issues in 2021 (February and July). Also, Natixis IM’s affiliate, Ostrum AM, has invested €361 million in these social bonds. This inaugural issue, which took place in the context of an unprecedentedhealth and economic crisis, will mainly be dedicated to financing the crisis response measures deployed by Unédic: reinforcement of the traditional unemployment insurance schemes and the introduction of an exceptional partial activity mechanism covering more than 12 million private sector employees. Unprecedented in terms of their scale, these schemes help to preserve the employment and income of more than one in two private employees in France, and to protect people affected by the particularly difficult economic context. Since then, Natixis has supported CADES in three new social bond issues in 2021 (January, March and September). The funds raised through the issuanceof social bonds by CADESwill be allocated to the financing and/or refinancing of social security deficits, deficits caused by decreases in revenue (economic conditions, deferral or exemption of charges), and/or increases in expenses (materialization of social risks, greater use of benefits).

The market is growing strongly but remains modest in size compared to the environmental bond market, (US$180 and US$553 billion respectively for social and green bonds) (1) . In 2021, Natixis participated in the arrangement of the issues of 86 sustainablebonds and social bonds (109 tranches). The total size of these issues amounted to €103.5 billion (Natixis share of €18.5 billion). In terms of social bonds, Natixis supported Unédic and CADES in their issues related to the COVID-19 crisis.

2021 KEY EVENTS Inaugural social issues in the context of COVID-19

Natixis has been very active in the development of several emblematic types of financing to respond to this new type of crisis, but also to address the SDGs.

CADES social issue: historical interest of investors

In September 2020, as a structurer and order-maker, Natixis supported the Caisse d’amortissementde la dette sociale (CADES) in its first issue since the start of the health crisis, inaugurating its social bond program drafted in accordance with the Social Bonds Principles. This issue received a second opinion from VigeoEiris, which awarded it its highest rating (“advanced”), in line with best market practices. On the investment side, AEW, a subsidiary of Natixis IM specializing in real estate investments, has invested in the low-rent housing segment, and in 2021 launched a fund dedicated to institutional clients: the AEW US – Essential Housing Fund. The fund invests only in rental housing assets, accessible to average to modest revenue tenants with regulated rents, which are naturally affordable or under voluntary regulation. Natixis co-chaired the working group on Sustainability-linkedBonds Principles (SLBP) under the responsibility of the ICMA, defining the tools to support clients in a long-term transition. These principles define five essential componentswhen issuing such bonds: selection of key performance indicators, definition of sustainableperformance objectives, characteristics of the obligation, reporting and verification. These bonds can be used by issuers that play an important role in the transition but are not able to issue green bonds or are reluctant to do so. They also make it possible to integrate the entire corporate strategy and align it with the SDGs.

7

Source Bloomberg. (1) International Capital Market Association. (2)

473

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021