NATIXIS_REGISTRATION_DOCUMENT_2017

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

Duty of care in purchasing In September 2017, Natixis' Purchasing Department joined forces with BPCE Procurement, the Groupe BPCE economic interest group dedicated to purchasing. Natixis is working alongsideBPCE Procurementas part of a concertedapproach in the bancassuranceindustry,with the help of three other banking groups, to map out ESR risks in purchasing activities. This tool, scheduled for delivery in late March 2018, will be used to measure the following risks, by country and by category of purchase:

Environmental risks associated with Natixis’ operations have been ruled out, as its business is not likely to generate serious adverse impacts on the environment. Furthermore, the bank alreadyappliesstrict environmentalregulationsin Europeand the US, and has launched several initiatives to limit its impact (e.g. certified buildings, use of resources, waste management, eco-friendlybusinesstravel,etc.). In terms of human rights risks, the HR working group used the UN definition of Human Rights: “Human rights are rights inherent to all human beings, regardlessof race, sex, nationality, ethnicity, language, religion, or any other status. Human rights include the right to life and liberty, freedom from slavery and torture,freedomof opinionand expression,the right to work and education and many more. Everyone is entitled to these rights, withoutdiscrimination.” Regarding the risks incurred by Natixis employees and service providers,the decisionwas made to further efforts on the areas deemedmost important in view of Natixis’ businesses:working conditions (compensation,working hours, dismissal conditions, maternity leave), prevention of discrimination, and personal safety. These issues are already strictly governed by a number of prevailing regulations in France, including in particular labor law, the personaland propertysafety policy, and the ProfessionalRisk AssessmentDocument. Internal agreements have also been signed, covering the followingissues in France: union law; a collectivebargaining; a genderequality; a professional integration and retention of employees with a disabilities; qualityof life at work. a Natixis also has severalestablishmentsoutsideFrance,however, and it is necessary to ensure that employees and service providersworking outside France and Europe are not subject to major occupationalhealthand safetyrisks. Using the map of country risks establishedby the Procurement working group, efforts were begun to identify the human rights, safety and environmental risks incurred by our employees/serviceproviders in all 48 of the bank's countries of operation. In 2018, the bankwill focus specificallyon countrieswhere these risks are highest and on countries with more than 100 Natixis employees,regardlessof the level of risk. Research will be carried out on local regulations in these countries, occupational health and safety conditions applicable for Natixis employees, and the use of local external service providers. Managing risks in our financing activities For several years now, Natixis has addressed the human rights and environmental risks incurred by some of its financing activities, most notably by applying the Equator Principles for project financing and policies applied to sensitive sectors (see Chapter 6.3.3) .

Fair practices and ethics

Fraud and corruption Protection of personal data Copyright and patents

Environment

Consumption of natural resources Pollution (air, water, ground) Biodiversity Carbon emissions Waste management Health and safety Working conditions Discrimination Forced labor and modern-day slavery Child labor

Human rights

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The tool maps out risks by drawing on the expertise of the chosen supplier for each purchasing category, in addition to statistics on each country, in accordance with recognized standards. Natixis’ ESR Department helped verify the sources and indicators for risks to the environment, health and safety, and humanrights. Based on the resulting risk map and purchasesmade by Natixis, the next target will be purchasing categories presenting the highestlevels of risk. Existing suppliers for Groupe BPCE (including Natixis) in these categorieswill be assessed for their ESR performance,with the results shared with the suppliers. Based on the results, an improvementplan can be established, subject to review at the six-monthpoint. To get the duty of care plan up and running, training courseswill be provided by BPCE Procurement to help buyers become familiar with the new tools (risk mapping, ESR assessment, implementation of appropriate risk prevention or mitigation plans). Furthermore, an indicator will be defined to monitor the percentage of calls for tender including an ESR assessment of biddingsuppliers. Duty of care in everyday operations To map out risks associated with its employees and establishments, Natixis set up two other working groups comprisingthe Logisticsand HumanResourcesDepartments. The large majority of its employees and establishments are locatedin France(73%and 75%, respectively).

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Natixis Registration Document 2017