NATIXIS - Universal registration document and financial report 2019

6 NON-FINANCIAL PERFORMANCE REPORT

Business line contributions to green and sustainable growth

Development of low carbon structured products 6.3.2.5

2019 saw strong activity on the core range of climate indices developed since 2015, in particular on the Euronext ECO5E index launched in 2018 and the Climate Orientation, Solactive Climate and Energy Transitions indices. Structured solutions based on these indices took on innovative forms — structured notes, green bonds and equity linked bonds — to

meet the need for investment in sectors contributing to the energy and ecological transition with a range of solutions for both retail and institutional investors in different geographical regions. Outstanding amounts sold by Natixis on the Climate and ESG indices total €2.4 billion.

2019 KEY EVENT Natixis and Groupama launch a climate index-linked green bond fully committed to the energy transition Natixis and Groupama Gan Vie, a Groupama subsidiary, joined forces to launch the first green bond that is fully committed to the energy transition. The product is indexed to the Euronext ® Climate Objective 50 Euro EWD5 (ECO5E) index which received a Deal of the Year award by Structured Retail Products (SRP) (1) . It comprises 50 euro zone stocks selected for their environmental commitment and their capacity to offer products and services compatible with a low carbon economy. The funds collected will be invested solely in wind, solar, hydroelectric and biomass projects that respect responsible management criteria. Inflows amounted to €360 million as of the end of 2019.

Aligning with the objectives of the Paris Agreement 6.3.2.6 The Green Weighting Factor (GWF) created in 2019 will allow Natixis to decarbonize its balance sheet and gradually align the impact of its financing activities with the central aim of the Paris Agreement, i.e. to limit the global temperature rise to +2°C in relation to the pre-industrial era. Natixis intends to achieve this long-term objective while continuing to finance all economic sectors by increasing the presence of green solutions in its financing activities and helping its clients in the transition to lower carbon activities (2) . Natixis has given itself one year from the launch of the GWF initiative in September 2019 to determine the speed of its transition. Additional work is ongoing to translate the color ratings under the GWF methodology into a temperature scenario to allow Natixis set a target date for aligning its loan book with the central aim of the Paris Agreement.

climate scenarios from the Intergovernmental Panel on Climate V Change (IPCC); investment projections from the International Energy Agency (IEA). V Combining data from these three sources produces results that are easy to interpret by providing an assessment in degrees Celsius corresponding to the climate scenario implied by a portfolio’s investments. Using this method, Mirova estimates that the climate scenario for all its equity, bond and infrastructure portfolios stands at 1.5°C, compared with 4.5°C for the MSCI Europe index and 3.8°C for the MSCI World index (4) . Aware of the importance and urgency of the climate challenge, DNCA has factored climate issues into its investment approach with the conviction that the ecological transition is both a risk factor and a source of investment opportunities. Its climate approach is based on the work and recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD). The analysis, which uses a proprietary model, assesses the risks facing the issuer and any opportunities associated with its positioning on the ecological transition. The model draws on qualitative evidence and quantitative data: the issuer’s exposure to climate risk depending on its business V sector and geographical footprint. an assessment of the issuer’s climate strategy. V For the SRI fund range (Beyond range), specific indicators have been developed in addition to traditional carbon measures to assess each fund’s position regarding the financing of fossil fuels and green activities.

Natixis is contributing to the objectives of the Paris Agreement in all its financing and investment activities by applying its exclusion policies on the coal industry, oil sands and oil exploration in the Arctic (see Chapter 6.4.3 Climate risks) . As well as applying exclusion policies, several Natixis entities have also committed to aligning their investments with the goals of the Paris Agreement. In 2015, Mirova developed a method for measuring the carbon footprint of issuers in different business sectors. The methodology (3) has been enhanced since 2018 to assess portfolio alignment with the climate scenarios set in the Paris Agreement, using: carbon footprint data from an external provider (scope 1, 2 and V 3 emissions);

https://www.structuredretailproducts.com/Event/Awards/a011t00000jfnpcaax?Tab=2 (1) See introduction on the Green Weighting Factor in Chapter 6.3.2.1. (2) http://www.mirova.com/Content/Documents/Mirova/publications/VF/DocRecherche/ImpactClimatDesPortefeuilles2018.pdf (3)

Data at September 30, 2019. (4)

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019