NATIXIS_REGISTRATION_DOCUMENT_2017

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

2017 Key Event Launch of the Climate Risk Impact Screening (CRIS) method

The CRIS method, designed by Carbone 4, is used to assess the physical risks incurred by financial players as a result of climate change. This method is an operational response to growing demand for information on the potential impacts of climate change on infrastructures, businesses and even national economies. CRIS aims to provide physical risk indicators, covering individual issuers and portfolios, based on seven direct climate hazards and nine indirect climate hazards, 60 sector vulnerability profiles and 210 sovereign vulnerability profiles. The method is applicable to multi-asset investment portfolios (stocks and corporate bonds, infrastructure and sovereign bonds).

Low-carbon strategy Natixis believes it has a responsibilityto actively combat climate change and has developed an active strategy aimed at reducing its direct and indirect impacts on the environmentresulting from its financingand investmentactivities. Direct impact: Each year, Natixis measures its carbon footprint (see Chapter 6.4.1.2) and takes a numberof measuresto limit its own impacton the climate,namely: carbon neutrality of power consumptionvia renewableenergy a supplycontracts;

Investment products helping to combat climate change: a Mirova, the investment firm of Natixis Asset Management specializedin socially responsibleinvestment,offers a range of vehicles dedicated to the fight against climate change (see Chapter 6.2.2) . Climate risk managementof projects financed by Natixis: a As a signatory of the Equator Principles, Natixis incorporates climate change in its environmentalimpact assessmentsof its major projects: borrowers are required to present an analysis of the possible alternatives to their projects, and to report annuallyon the project'sCO 2 emissionsonce it is in operation. Exclusion of carbon-intensiveissuers: Since 2015, Natixis a has ceasedall financingand investmentsin the coal sector and has also undertaken to stop financing oil sands and oil explorationin the Arctic (see Chapter 6.3.3) . New initiativeto steer the new businessportfoliotowards a greenerprojects: Green IncentiveMechanism. From a broader standpoint, Natixis believes that adjusting the tools used to steer its business lines would have a positive influenceon the structureand impact of its financingactivitiesby strengthening their alignment with the goals of the Paris Agreementand its contributionto the transition to a low-carbon economy.To this end, the bank has taken steps to implementan internalGreen IncentiveMechanism.

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energy-efficientbuildings; a eco-friendlybusinesstravel; a reducedpaper consumption; a wastemanagement. a

Indirect impact generated by its business lines: In addition, Natixisdrawson its investmentand financingoperationsas its key meansof action in the fight againstclimatechange,both in terms of risk managementand businessopportunities.Natixis applies a low-carbon strategy in all its business lines: Corporate & Investment Banking, Specialized Financial Services, Asset Managementand Insurance. Green growth financing: Natixis is a market leader in a renewableenergy and sustainableinfrastructurefinancing,and in greenbonds (see Chapter 6.2.3) .

2017 Key Event Launch of an internal Green Incentive Mechanism In honor of Climate Finance Day held in late 2017, Natixis CEO Laurent Mignon announced that Natixis would be rolling out an internal Green Incentive Mechanism. Without waiting for regulations to change, Natixis will begin applying a new internal mechanism in 2018 aimed at incorporating environmental risks and promoting greener financing compared to more traditional financing operations. The mechanism will apply to all Natixis financing activities in Corporate & Investment Banking and Specialized Financial Services around the world.

The mechanism'spracticaldetailswill be clarifiedafter an impact study is performed, based as much as possible on existing market taxonomies. The ultimate goal is to better integrate physical and transition risks associated with the expected enhancementof public climatepoliciesin an effort to achievethe goals of the Paris Agreement.

It will subsequentlylead to a modificationof the indicatorsused for capital allocationand oversightof Natixis’ business lines. The Green Incentive Mechanismwill also improve the internal ROE on projects with a positive impact on the climate and environment.

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Natixis Registration Document 2017