NATIXIS // 2021 Universal Registration Document

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

Financing the energy transition and combating climate 7.2.2 change GWF: an innovative solution for a greener loan book 7.2.2.1

credit process and lending decision making; V credit risk assessment: the GWF is used to monitor the bank’s V overall climate transition risk as well as for projecting the balance sheet until 2050 as requested by the French banking regulator ACPR as part of an inaugural climate stress test exercise; strategic dialogue with clients and the resulting structuring of V sustainable financial products; active portfolio management, including distribution and V securitization; commercial strategic planning, including client tiering, priority V setting and identification of sustainable financing opportunities. Since the implementation of the tool within the systems and credit processes of Natixis CIB in 2019, the bank's processes and activities were transformed.Also, a major step was achieved this year with the definitionof granular color mix targets for the CIB and the translation of these into ambitious temperatureobjectives: 2.5 o by 2024, 2.2 o by 2030 and 1.5°C by 2050, thus actively contributing to Groupe BPCE’s “Net Zero” commitmentby 2050. These objectiveshave been set out for each business line in the 2024 Strategic Plan. The GWF has thus evolved from an innovative, operational and decision -making tool at the transactional level to a real tool for managing the transition. These commitments are based on transaction/customer level modeling, which requires business lines, platforms and sector teams to achieve GWF color mix and temperature objectives, and thus leads to the deployment of clear and documented action plan. This involves analyzing forward-looking scenarios and transforming the bank’s capital allocation, client mix, businessmix with clients, as well as the design of products to support their transition. The bank’s transition will depend on three key variables: the customer mix, what Natixis does with its customers and the pace of customer transition. This involves using industry knowledge, as well as Natixis’ technological and climate expertise, to guide both the capital allocation and the product range in order to have an impact on the bank’s temperature trajectory. To do this, Natixis has developed a number of use cases for GWF: credit decision-making; V balance sheet management, including distribution asnedcuritization; V long-term projections of the portfolio up to 2050 through climate V stress test exercises; prioritization of strategic customers. V The first CIB budget assessment exercise in color and temperature for 2022 was launched in autumn 2021, as well as the definition of a governance and action plans to steer this trajectory. Quarterly monitoring will be carried out in a very granularmanner at the level of the business lines, strategic industriesand geographicalplatformsof the CIB. business and strategic intelligence; V strategic dialogue with customers; V monitoring of risks related to the climate transition; V

Recognizing its responsibility as a financial actor, Natixis has committed to align its balance sheet with the objective of the Paris Agreement. By joining the Collective Commitment for Climate Action (CCCA) as part of the PRBs in 2019 and via BPCE’s commitment to the NZBA, Natixis has committed to mobilizing its products, services and relationships to facilitate the economic transition necessary to achieve climate neutrality. The Green Weighting Factor (GWF) is a unique proprietary tool developed by Natixis and deployed since September 2019 to all its financings in order to achieve several objectives: accelerate the transitionof its activities towards sustainablefinance and encourage its clients to improve their environmental footprint, systematically integrate the risk of climate transition into its financing activities, manage its climate alignment and, finally, prepare future climate regulations. This internal tool has enabled Natixis to set climate impact targets for each of its activities in 2021, and should ultimately enable the bank to meet its commitment to align its balance sheet with the Paris Agreement objective. The tool includes both (i) a comprehensive methodology to assess the climate impact and climate transition risk of each financing (rated on a 7-level color scale from brown to green), and (ii) an internal capital allocation mechanism that links the amount of internal capital being allocated of each transaction to its level of positive or negative impact on climate change (and other environmental impacts when material). All loans with a green color rating receive a discount of up to 50% in their weighted assets, while the weighting of loans with a negative impact on the climate and the environment is increased by up to 24%. The GWF thus adapts the expected return of each transaction according to the environmental impact of the financed object (project, asset, non-dedicated financing), which promotes a change of behavior within the teams in order to develop sustainable finance. This is an internal mechanism that has no impact on the regulatory RWAs. The GWF rating methodology was finalized in 2019 for all sectors financed by the bank, with the exception of the financial sector. After the methodological development and a proof of concept phase, the GWF was implemented in the bank’s IT systems and incorporated in the bank’s processes along the lending value chain. It is now deployed on a global scale. As of December 31, 2021, the GWF tool was applied to the entire bank balance sheet excluding the financial sector, i.e., €178 billion of total assets outstanding,and nearly 89% of exposures were already assessed. Fully integrated into the bank’s lending process, the GWF is a real tool for decision -making, strategic dialogue and incentives for operations. It is used in particular in the following cases:

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021