NATIXIS - Universal registration document and financial report 2019

6 NON-FINANCIAL PERFORMANCE REPORT

Business line contributions to green and sustainable growth

Business line contributions 6.3

to green and sustainable growth

In line with the sustainable development objectives of its New Dimension strategic plan, all of Natixis’ business lines develop innovative financial products and services designed to service its clients’ environmental and social ambitions. Several key initiatives were launched over the past two years to drive the transition of each business line towards sustainable finance: the signing of the Principles for Responsible Banking, the introduction of the Green Weighting Factor, the internal working group on natural capital and biodiversity, the integration of environmental, social and governance (ESG) criteria throughout Asset Management strategies, Natixis Assurances’ strategy of aligning its investments with the goals of the Paris Agreement. In the past two years, Natixis has contributed to many innovations in sustainable finance including the first certified green real estate loan and the first green syndicated loan, the first social bond issue by a

private company, and the first fund to invest in sustainable ocean management. This pioneering strategy was once again rewarded by industry recognition in 2019. For example, Natixis was named Most Innovative Investment Bank of the year by The Banker. In 2020, Natixis intends to consolidate its leading role in sustainable finance innovation, through the full implementation of its Green Weighting Factor and by expanding ESG investing further across all Natixis investment businesses. Natixis is pursuing its strategic objective to double sustainable finance revenues, by expanding the range of sustainable finance products and services offered to Corporate & Investment Banking clients, launching new investment solutions in its Asset Management affiliates, and developing sustainable investments and products for its insurance business. Offering clients investment and financing solutions that effectively address the Sustainable Development Goals is a key priority. Nineteen Natixis Investment Managers affiliates, which together hold 90.1% of total assets managed by Natixis Investment Managers affiliates, had signed the PRI as of December 31, 2019, namely: AEW CILOGER, AEW Capital Management, Alliance Entreprendre, Dorval Asset Management, DNCA, Flexstone Partner, Harris Associates LP, Investors Mutual Limited, Loomis Sayles, Mirova, MV Credit, Naxicap Partners, Ossiam, Ostrum AM, Seeyond, Seventure Partners, Thematics Asset Management, WCM Investment Managers, and Vega Investment Managers. In 2019, Natixis Investment Manager also signed the PRI on behalf of the federation of investment firms it represents. Ostrum AM (€274.1 billion in assets under management at December 31, 2019) has been a PRI signatory since 2008 and was rated A+ on all its investments in the 2019 assessment cycle (on 2018 performance). This excellent score was well above the median of Ostrum AM’s peers. AEW CILOGER (€31.6 billion in assets under management at December 31, 2019), a Natixis Investment Managers affiliate specialized in real estate Asset Management in Europe and a PRI signatory since 2009, enhanced its governance in 2019, allowing it to obtain an A+ rating for strategy and governance. It enhanced its governance by setting up a dedicated ESG Committee in 2019 with 13 members representing its different business lines and countries in which it does business. This Committee meets each quarter to harmonize ESG practice, ensure that all members of staff observe ESG policies, and encourage local initiatives in this area. Naxicap Partners, the French Private Equity specialist, also boasts an A+ rating for strategy and governance, reflecting the high standards of the ESG policy it applies at each stage of its investment process.

Sustainable growth: financing the transformation in society 6.3.1 Natixis uses the Sustainable Development Goals as a reference framework for all the initiatives stemming from its commitment to society. The 17 Sustainable Development Goals for 2030 are the benchmark for measuring progress achieved by governments and private sector companies, including financial institutions.

A growing number of Natixis’ Asset Management companies observe the Principles for Responsible Investment (PRI)

6.3.1.1

Natixis examines ESG criteria closely when preparing its investment strategies, as sustainable development issues allow it to provide investors with value-creating solutions over the long term. In 2019, Natixis Investment Managers, which groups the expertise of 25 affiliate Asset Management companies around the world and ranks among the world’s biggest asset managers (€934 billion in assets under management at December 31, 2019), pursued its pledge to take Environmental, Social and Governance (ESG) issues into consideration in the investment models each of its affiliates develops. Recognition of ESG criteria, which have been an integral part of the investment strategies of Ostrum AM and Mirova since their creation, is gaining ground among all of Natixis Investment Managers’ affiliates. The Principles for Responsible Investment (PRI) were published by the United Nations in 2006 as a voluntary commitment encouraging institutional investors and asset managers to incorporate ESG in the management of their portfolios. In 2019, 2,372 signatories with $86.3 trillion in assets under management had adopted the PRI (1) .

Source: unpri.org (1)

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019