NATIXIS - Universal registration document and financial report 2019

NON-FINANCIAL PERFORMANCE REPORT Managing environmental, social and governance risks

DNCA factors climate issues into its investment policy by drawing V on the work and recommendations of the Taskforce on Climate-related Financial Disclosure (calculation of each company’s climate risk exposure and assessment of its climate strategy). DNCA aims to extend its climate impact analysis to all its equity and corporate bond investments by the end of 2020; Ossiam has established a framework for measuring its portfolios’ V transition risk and comparing it with their benchmarks. Funds that benefit from this measure have a goal of achieving a 40% reduction in their absolute greenhouse gas emissions, carbon intensity and potential emissions arising from fossil fuel reserves (in relation to their benchmark); Naxicap Partners has signed up to the International Climate V Initiative to help achieve the objectives of the Paris Agreement. An initial estimate of its carbon intensity (scope 1 and 2 emissions) was completed in 2019. Physical risks Climate change increases the frequency and/or intensity of extreme weather events such as hurricanes, storms, droughts, and flooding. The economy stands to suffer from these physical risks, and some sectors and geographic regions are already proving vulnerable to such events, which can result in major financial losses (interruptions in the supply chain, loss of operations), alter the value of assets and affect borrower solvency. This could have a knock-on effect on credit and investment portfolios. Despite this, financial institutions lack the tools needed to analyze portfolio exposure to physical risks. Natixis has therefore committed to the ClimINVEST initiative launched by a consortium of European climate change experts, notably I4CE and Météo France, to produce ideas for such solutions. This project seeks to co-design and co-produce tools, in conjunction with financial institutions, to facilitate the inclusion of physical climate change risks in decision-making processes. The methods and tools developed will subsequently be made public to ensure they are approved by as many institutions as possible. An initial simulation on a portfolio of real estate loans was performed at the end of 2019. Several activities such as the insurance and real estate financing business lines, in partnership with the ESR Department, met with localized climate data providers to discuss solutions for measuring physical risks for specific portfolios.

Low carbon strategy

Natixis believes it has a responsibility to actively combat climate change and has developed a proactive strategy aimed at reducing its direct and indirect impacts on the environment resulting from its financing and investment activities. Direct impact: Each year, Natixis measures its carbon emissions (see Chapter 6.5.3) and takes a number of measures to limit its own impact on the climate, namely: carbon neutrality of power consumption via renewable energy V supply contracts; Indirect impact generated by its business lines: Natixis draws on its investment and financing operations as its key means of action the fight against climate change, both in terms of risk management and business opportunities. Natixis applies a low carbon strategy across all of its business lines: Asset & Wealth Management, Corporate & Investment Banking, Insurance, and Payments (see Chapter 6.3.2) . Green Weighting Factor : To step up its transition to green finance, Natixis is developing a tool to gradually bring its financing activities into line with the Paris Agreement goals for the climate. Green growth financing: Natixis is a major player in renewable energy and sustainable infrastructure financing, and in green bonds. Investment products helping to combat climate change: Natixis Investment Managers also finances renewable energy via the investment funds proposed by its affiliates. Managing climate risk in projects financed by Natixis (see chapter 6.4.1): As a signatory of the Equator Principles, Natixis incorporates climate change into the environmental impact assessments conducted on its major projects. Borrowers are required to present an analysis of the possible alternatives to their projects, and to report annually on the project’s CO 2 emissions once it is in operation. This framework was strengthened by the EP IV amendment which take account physical and transition risks as set out in the TCFD ans the Paris Agreement. Exclusion of carbon-intensive issuers: Since 2015, Natixis has ceased all financing and investments in the coal sector and has also undertaken to stop financing oil sands and oil exploration in the Arctic. energy-efficient buildings; V eco-friendly business travel. V

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019