NATIXIS - Universal registration document and financial report 2019

6 NON-FINANCIAL PERFORMANCE REPORT

Strategic outlines and organization of the ESR policy

Natixis has applied Groupe BPCE’s risk rating policy, based on the risk analysis methodology established by the Group Risk, Compliance and Permanent Control division, which established: a universe of ESR risks broken down into three types: governance, V products and services, and internal operations. These risks were identified in terms of regulations, industry practice, ESG rating agencies’ assessment criteria and requests from clients and investors; a methodology for ranking the risks by their frequency and severity; V an assessment of the corresponding risk management systems. V The list of risks and their materiality was reviewed together with the Natixis Risk Department in 2019 to take into account upgrades in the tools used to measure risks that are specific to Natixis, in particular the Risk Appetite Framework. Compliance risks, conduct risks and cybersecurity risks, are recognized as material risks that could significantly impact Natixis’ financial performance (liquidity, solvency and profitability), its strategic development or its reputation. In 2019, the social and environmental risks related to financing activities were included in the review of the Risk Appetite Framework. Environmental risks cover both physical and transition climate risks, which are considered material, and other environmental risks (impact on biodiversity, pollution, natural resources). The risk analysis process placed these risks in a gross risk matrix that identifies the most important risks in terms of their severity and probability of occurrence.

Strategic pillars of ESR 6.1.2 As a key source of financing for the economy, Natixis has a role to play in the transition to sustainable development, and since 2017 it has decided to further its Environmental and social responsibility (ESR) ambitions. ESR is one of the main cross-business drivers used to achieve the goals of the New Dimension 2018-2020 strategic plan, which is aimed at creating long term value. It is backed by enhanced governance, with the establishment of a dedicated department reporting directly to a member of the Senior Management Committee. Drawing on a strong, widely recognized range of expertise, Natixis’ objective in terms of ESR requires the commitment of all of its business lines (CIB, Asset and Wealth Management, Insurance, Payments) and support functions, and incorporates all aspects of ESR: environmental, social and economic topics. It involves an assessment of the social and environmental risks run by Natixis’ business lines, while driving performance and development: ESR will fuel the Company’s strategic dialog with clients and support their own transition to a more sustainable model, with the development of innovative offers. In accordance with the new requirements of the non-financial performance report, Natixis has described its business model (see Introduction to this universal registration document) and identified the main risks and opportunities arising from the social and environmental impact of its activities, the respect for human rights, and the fight against corruption and tax avoidance.

Employability and business line transformation Employee and executive diversity

Impact on society Working conditions

Conduct risks Compliance risks Cyber risks

> 3 YEARS < 3 YEARS

Shareholder rights Procurement Direct physical risks Environmental footprint

Executive compensation Employer attractiveness Voting and engagement policy

Climate risks*

Other environmental risks* Social risks*

OCCURENCE

Other non-priority risks

Other non-priority risks

Very rare

LOW

MEDIUM

HIGH

Very rare

SEVERITY

* Linked to our financing activities The gross risk matrix identifies eight major risks that are managed using a set of risk management processes, which are assigned key performance indicators.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019