NATIXIS // 2021 Universal Registration Document

ACCOUNTABILITY REPORT ENVIRONMENTAL AND SOCIAL RESPONSIBILITY 2021 Managing environmental, social and governance risks

Climate risks 7.3.3 The environment and climate emergency is one of the biggest challenges facing the world’s economies and every one of us. The financial sector can and must spearhead the ecological transition by channeling funds into a sustainable economy. As a provider of financial solutions, Natixis has a role to play in this movement.

As a financial institution and major economic player, Natixis is exposed to climate risk in the running of its operations and business activities. Taking this climate risk into consideration is crucial for Natixis in all its areas of business: Asset Management,Financingand investments, Insurance and Payments. Aware of the challenges that climate change poses to the planet, society, its customers and its own business model, Natixis has implemented a series of measures to change its operational strategy.

2021 KEY EVENT Publication of the first TCFD report In October 2021,Natixispublishedits first climatereport following the recommendations of the Task Force on Climate-Related Financial Disclosures. This report details the actions implemented to support the transition to a low-carboneconomy and adaptation to the effects of climate change. Climate risk mapping Natixis has systematically identified and assessed the materiality of the impacts of climate-related risks. This exercise is based on Natixis’ risk mapping and a qualitative assessment of the materiality of the impactsby the ESR and risk experts, in the short/mediumterm (< 5 years) and in the long term (5 to 30 years). The results of this work are presented in the TCFD report published in October 2021 (1) . Integration of climate-related risks into the risk appetite framework The categories "climate risk/transitionrisk" and "climate risk/physical risk" have been added to Natixis’ risk inventory. The transition risk was considered material, including in the short term, given the potential reputational impacts, the risks related to changes in the regulatory and legal framework, and the strategic risk related to market changes in response to the climate transition. The physical risk is also consideredmaterial, in particular to take into account the increase in expected long-term impacts. As part of the risk appetite and the risk identificationprocess, the assessment of the materiality of these risks will be reviewed annually and may be refined using new measurement methodologies. In order to monitor the transition risk, an indicator reflecting the proportion of exposures rated “dark brown” by the Green Weighting Factor methodology was introduced as part of the risk appetite. In 2022 it will be subject to a quantitative limit.

In this first TCFD report, Natixis is committed to ambitious objectives, such as reducing its financing of oil and gas exploration-production activities by 15% between 2020 and 2024, and arranging new financing of €9 billion on renewable energy over the same period. https://www.natixis.com/natixis/fr/1er-rapport-tcfd on-climate-lpaz5_133744.html Establishment of processes to identify, quantify and manage climate-related risks Within the operational scope: As part of the operational risk management system, Natixis annually assesses its resilience to extreme climate risks (example scenarios: storms, heat waves, Seine floods, etc.) for its activities in France and internationally. The impacts of these scenarios are reflected in the measurement of a VaR (Value at Risk) taking into account external data, the quality of the BCP (Business Continuity Plan) and insurance policies. Within Corporate & Investment Banking, Natixis has gradually deployed several tools to assess and manage its exposure. This approach will be strengthened in the coming years, in particular by completing the risk quantification and physical risk monitoring system. Natixis has chosen to exclude from its financing and investment V activities sub-sectors or borrowers that do not meet its appetite for climate-related risks. Exclusion lists for the coal and oil and gas sectors have been implemented. (see section 6.3.1) . Natixis assesses the effects of its transactionson the climate by V assigning a climate rating either to the asset or project financed, or to the borrower in the case of general purpose financing. This rating (or “Green Weighting Factor color rating”) is derived from an estimate of the impact of the transactionon the climate and takes into account all significant environmental externalities, such as water use, pollution, waste and biodiversity. This proprietary tool systematically integrates transition risk into the bank’s financing activities. Based on the Green Weighting Factor rating, an internal capital allocation mechanism links the amount of internal capital allocated to each transaction (analytical credit RWA) to its positive or negative impact on the climate and the environment. 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% (see section 7.2.2) .

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021