NATIXIS // 2021 Universal Registration Document

ACCOUNTABILITY REPORT ENVIRONMENTAL AND SOCIAL RESPONSIBILITY 2021 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 has become systematic since the implementation of the screening tool described below.

Environmental, social and governance (ESG) risk screening tool for corporate clients

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. This new system in place in all regions includes two levels of assessment integrated with existing risk management systems. The first level ranks clients in a risk category based on the context in which they do business, the maturity of their ESR risk management system, any controversies to which they may be exposed and the type of business relationship they 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 Duty of vigilance 7.3.2 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 endangering occupationalhealth 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: Corporate & Investment Banking, Purchasing, Human Resources, Logistics, Compliance and Legal. This vigilance plan covers Natixis employees in its own locations, as well as suppliers for the purchase of products and services. In addition, the procedures to be carried out as part of the bank’s financing activities are strengthened each year. Particular attention is paid to climate risks, as evidenced by the new strategic guidelines, operational measures and the TCFD reporting prepared by Natixis in 2021 (see section 6.3.3) . 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).

the most at risk and most often involves direct discussionswith the client. The system is integrated throughout client onboarding and loan approval processes to allow the systematic analysis of ESG risks. It involves the business lines, Compliance, and the Risk and ESR divisions. The assessment process will gradually be applied to the portfolio of existing clients, taking into account the schedule for periodic renewals of financing authorizations.

Regarding the risks incurred by Natixis employees and service providers in terms of human rights , the decision was made to extend efforts in areas deemed most important in view of Natixis’ businesses: working conditions, prevention of discrimination, and personal safety. These issues are already strictly governed by a number of regulations in France (representing more than 65% of Natixis employees) including labor law, the personal and property safety policy, and the Professional Risk Assessment Document. Internally, numerous agreements have also been signed within the scope of Natixis France (relating in particular to remote working, employee savings schemes, profit-sharing and supplementary health guarantees). Internationally, the working conditions of Natixis employees comply with or improve local regulationsat the various sites under corporate governance. With regard to salaries, compensation surveys are regularly conducted to verify their competitivenessin their reference market. Overall, maternity leave is more favorable than local regulations. In 2021 in France, beginning on July 1, paternity and childcare leave was increased from 11 to 25 days for a single birth and from 18 to 32 days for multiple births. Natixis has decided, in line with its actions in favor of parenthood and professional equality, to finance this leave in full. Internationally, it is planned to roll out a similar measure before the end of 2024, namely paternity and childcare leave (also called second parent leave in some countries) of a minimum of four weeks. This deploymentwill be decided by each of the entities and will be done in accordancewith local regulationsand in addition to them. The safety and security of Natixis’ employees and service providers are of vital importance. In 2019, the Security Departmentat Natixis in Paris rolled out solutions for all its offices focused on two major aspects: early warning and self-assessment. Early warning systems are essential to be able to anticipate and respond quickly to risks and dangerous situations. To allow this, security managers can now access an early warning system on the internet that analyzes safety and security risks arising from geopolitical events.

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Duty of vigilance in everyday operations

The environmental risks associated with Natixis ’ operations are discounted as its business is not liable to generate serious adverse impacts on the environment. Furthermore, the bank already applies strict environmental regulations in Europe and the United States, and has launchedseveral initiatives to limit its impact on the environment (e.g. certified buildings, reduced use of resources, waste management, eco-friendly business travel, etc.).

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021