NATIXIS_REGISTRATION_DOCUMENT_2017

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

Business line contributions to green 6.2 and sustainable growth

2017 drew to a close with the One Planet Summit, where the commitments undertaken in the 2015 Paris Agreement on Climate were ramped up and players in both the public and private sector launched a powerful drive to combat global warming. Participating States established tight deadlines calling for the implementationrules of the Agreementto be finalizedby the end of 2018. Meanwhile, a number of private-sector players, including Natixis, set ambitious targets in terms of investments in low-carbon technologies (e.g. French Business Climate Pledge) and supervision of carbon-intensive industries (e.g. ClimateAction100+). The event also paved the way for the Paris Agreementto enter the real economy,by invitingthe participationof corporationsand the financeindustry. Financial players boast substantial leverage to make this transition happen, with the influence to steer their investments and financing activities towards sectors and projects with a reduced impact on the environment.To this end, they will need Renewable energy is on the rise and constantly setting new records in terms of installed capacity: 161 GWwere installed in 2016 (153 GW in 2015), totaling 2,017 GW in installed capacity, i.e. 9% more than in 2015 according to the InternationalEnergy Agency. PV power accounted for the lion's share of installed capacity in 2016 (47%), followed by wind farms (34%) and hydropower (15.5%). In 2016, renewable energy made up 62% of new electrical facilities, confirming its growing share of the global energy mix. This trend was driven by energy policies and the decline in production costs, making renewable energy increasingly competitive with coal-fired electrical power. Today, 24.5% of global electricity generation comes from renewable energy sources,and should increaseto 28%by 2021. Futuregrowthwill also be led by the growing share of electricity in the global energymix. China has consolidated its position as the undisputed leader in solar PV power, representingnearly half of additional capacities, and in wind power, with China claiming over 40% of new installations. For its part, France ranks among the Top 10 countries equipped with renewable energy facilities, having recentlyrecordeda modestimprovementin its ranking(+0.6 GW in solar powerand +1.6 GWin wind power).

to conduct an extensive analysis of the way they allocate financing and how to gradually decarbonize their investment portfolios. The purpose of “green finance” is to support companiesand/or projects that benefit the environment, for example by cutting down on pollution and carbon emissions, improving energy efficiency,and attenuatingand adaptingto climatechange. Responsiblefinancehas a broaderobjective,namely to meet the challenges of establishing a sustainable society on both the social and/or societal fronts, for example by bringing solidarity-basedproductsto market. Natixis has long been committed,alongsideits customers,to the developmentof a sustainable global economy. Drawing on its differentbusinesslines, it boastsa panel of expertisecoveringall thechallengesand issuesof environmental andsocialresponsibility, and severalESR franchisesare developmentdriversin accordance with its newstrategicplan: renewableenergyfinancing,a rangeof responsible investment solutions incorporating ESG criteria, developmentof greenbonds,andsustainable realestate. Renewable energy financing Natixis supports the developmentof renewableenergies around the world through its local offices, particularly in Europe, the Middle East, Australia, and North and South America. Financing activity was very robust in 2017, especially in the fast-growing offshorewind powersectorand in the MiddleEast, whereNatixis has secureda positionas a top-tiercreditorsupportingrenewable energy projects. Natixis is No. 3 in the MENA (Middle East and North Africa) region, according to the rankings established by leading publication IJ Global. In the Corporate & Investment Banking division, the Global Infrastructureand Projects (GIP) team financed 14 new deals in 2017 for a total amount of €6.89 billion (of which €2.218 billion arrangedby Natixis)and a total capacityof 4,851 MW: four offshorewind farmswith a total capacityof 1,715 MW; a three onshorewind farmswith a capacityof 404 MW; a sevensolar PV projectswith a capacityof 2,732 MW. a At end-2017,renewableenergyaccountedfor almost75%of the loans grantedby GIP in the electricitysector.

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SUPPORTING THE DEVELOPMENT OF THE ENERGY TRANSITION 6.2.1 AND COMBATING CLIMATE CHANGE

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Natixis Registration Document 2017