NATIXIS_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIAL RESPONSIBILITY Management of ESG risks in our business lines

Analysis of reputational risk associated with involved parties For all the financing transactions referred to above, and also when deemednecessaryfor any other transaction,an analysis is performed to determine whether the borrowing company, its operator or main shareholderhas a history of poor management in its operations, from an environmental, social or health and safetystandpoint. With the goal of establishinglasting relationswith its clients, the purpose of this assessment 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 necessaryto envisageappropriatemeasures. Overview of financing transactions over the last three years 212 transactions were subject to an assessment, E&S risk monitoring and/or reputational risk analysis over the last three years, including89 transactionsin 2017 alone, up 35%compared to 2016.

Implementation of ESR policies for sensitive sectors

For the most sensitivesectors,ESR policiesfor internaluse were establishedand integrated into the Risk Policies of the business linesworkingin the sectorsin question. To date, ESR policies have been set up for financingactivities in the followingsectors,basedon the guidelinesset out below: Defense: very specific criteria apply to each transaction, a setting out rules for the types of equipmentaccepted and the eligibility conditions of import and export countries. These criteria are an addition to Natixis’ exclusion policy (see next inset) ; Nuclear: compliance with the strictest international security a rules (IAEA, etc.), reliability of technologies,demonstrationby the host country and the operator of their capacity to control and operatetheir nuclearindustry,basedon specificcriteria; Oil, gas and mining industries: selection of operations that a demonstrate their operators’ ability to manage the environmental, social, health and safety aspects of their activities, in adherence with current regulations, international standards (IFC, World Bank) and industry recommendations and best practice. Oil sands and oil projects in the Arctic are excluded (see next inset) ; Mobile assets used for offshore oil and gas production: a adherenceto maritimeand sector-specificregulations;selection of assets according to operator quality, their country of establishment (ensign) and the certifying body according to well-established and recognized classifications; Palm oil: traceability and compliance with best practice and a applicablestandards. Exclusion policies Exclusionpolicies are announcedto the public and implemented in differentsectors: Controversial weapons: Since March 2009, Natixis has a refused to finance, invest in or offer services to companies involved in manufacturing, storing or trading antipersonnel mines and clusterbombs. This policy applies to the financing of these companies, to a proprietary investment, as well as to third-party asset managementby NatixisAssetManagement; Coal sector: Since October 2015, Natixis has undertaken to a stop financing coal-fired power plants and thermal coal mining around the world. Natixis also no longer provides general-purpose corporate financing to companies for which coal-firedpower plants or thermal coal mining account for over 50%of their activity.

BREAKDOWN OF THE 212 TRANSACTIONS BY ■ GEOGRAPHIC AREA (CONSOLIDATED DATA FOR 2015, 2016 AND 2017)

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31% North & South America

29% Asia-Pacific

23% Middle East and Africa

17% Europe-CIS

BREAKDOWN OF THE 212 TRANSACTIONS BY SECTOR ■ (CONSOLIDATED DATA FOR 2015, 2016 AND 2017)

13% Renewable energy 7% Other

16% Mining

21% Electricity (excl. renewable energy)

26% Oil & Gas

17% Infrastructures

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Natixis Registration Document 2017