NATIXIS - Universal registration document and financial report 2019

NON-FINANCIAL PERFORMANCE REPORT Business line contributions to green and sustainable growth

Thematic investment in natural capital 6.3.3.3

The LDN Fund aims to generate positive environmental and socio-economic impacts alongside financial returns. By addressing land degradation, the LDN Fund aims to deliver the following benefits:

Since 2017, Mirova has used an investment platform specialized in preserving biodiversity and natural capital developed both in-house and via the acquisition of Althelia Ecosphère, which was finalized in 2019. Mirova develops innovative investment solutions to mitigate and adapt to climate change, and to protect local regions, biodiversity, soil and marine resources, with €300 million invested in natural capital. In response to the depletion of natural capital and land degradation as global issues (relating to food security, human life and ecosystems), the Land Degradation Neutrality (LDN) Fund is an example of the type of innovative public-private partnerships needed to finance the SDGs. The Fund was created by the United Nations (1) and Mirova as a source of transformative capital bringing together public and private investors to fund triple bottom line (economic, social and financial) projects that contribute to Land Degradation Neutrality. The LDN Fund will invest in three crucial sectors: sustainable agriculture, sustainable forestry, and other projects such as green infrastructure or ecotourism as opportunities arise.

land degradation neutrality; V climate change mitigation; V climate change adaptation; V

improved livelihoods; V improved biodiversity. V

The LDN Fund continued to raise funds throughout 2019, with commitments totaling $150 million and a target of $300 million. The LDN strategy was selected in the Real World Impact Initiative of the Year category at the UNPRI 2019 awards alongside four other finalists, reflecting international acknowledgement of the innovative and relevant nature of this strategy. After financing its first project in Peru — to provide agroforestry systems for small coffee producers — three new land restoration projects were put forward in Bhutan, Indonesia and Kenya, involving 30,000 small farmers, with the aim of restoring over 45,000 hectares of degraded land and capturing nearly 2 million tons of CO 2 . The LDN Fund will use its investments to apply sustainable land management practices on 500,000 hectares of land around the world, to reduce CO 2 by 35 Mt, and to create or improve jobs for over 100,000 people.

2019 KEY EVENT Mirova launches a new strategy to protect the Amazon

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Mirova plans to allocate $100 million in sustainable financing to protect, restore or improve living conditions for indigenous populations and to preserve biodiversity in the Amazon. The strategy is managed by Mirova Natural Capital in partnership with the US Agency for International Development (USAID).

Unhealthy oceans threaten all life on earth and have a particularly strong impact on small island nations and vulnerable coastal communities. Decades of poor management have led to the over-exploitation and degradation of ocean resources, in particular fish stocks and coral reef ecosystems. Improving the management of these natural resources can enhance productivity and operational efficiency and generate attractive returns for all stakeholders. The Althelia Sustainable Ocean Fund (SOF) managed by Mirova, invests in companies that harness the ocean’s natural capital sustainably, build resilience in coastal ecosystems and create sustainable economic growth. SOF holds a mixed portfolio of assets in the sustainable marine products sector, the circular economy and conservation. The fund focuses on emerging markets and small island nations. It was launched in 2018 and has raised nearly all of its target of $100 million, with more than $92 million raised as of the end of 2019. It will invest in around twenty sustainable projects such as sustainable offshore aquaculture and technology to reduce bycatch

and the capture of juvenile fish such incidental capture accounts for 40% of fish caught around the world. SOF’s investments are having substantial positive impacts in terms of socio-economic development and the preservation of natural resources. The fund has set the following goals for its ESG impact: climate: protection of over 17,500 hectares of mangrove forest V from deforestation and degradation (over 9 million tons of CO 2 e captured), production of 177,000 tons of fish protein (which has a smaller carbon footprint than beef); livelihoods: creation or continuation of over 5,500 jobs in V vulnerable coastal communities and indirect support for over 14,000 additional jobs in related value chains and businesses; ecosystems: direct protection and sustainable management of V over 175,000 ha of marine protected areas in ecosystems with high environmental value.

United Nations Convention to Combat Desertification (UNCCD). (1)

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019