NATIXIS - 2018 Registration document and annual financial report

6 NON-FINANCIAL PERFORMANCE REPORT Natixis is also active in green bond investments through its Natixis Investment Managers affiliates. At year-end 2018, Ostrum AM managed green bond investments totaling €2.4 billion in 155 funds and investment mandates. Of the €1.8 billion in fixed income assets under management by Mirova, €1 billion is invested in green bonds. One of its flagship strategies, applied by the Mirova Global Green Bond Fund, invests solely in green bonds (€294 million).

Business line contributions to green and sustainable growth

As well as green bond issuance, in 2018, Natixis also offered two types of green loans: loans earmarked to finance environment-related projects (term loans) and syndicated loans meeting ESG criteria (green revolving credit facilities or green RCF). This activity expanded sharply in 2018, with twelve deals finalized.

ODD 13: Climate change Innovation in 2018 €4 billion green RCF for EDF Natixis was Green Structuring Advisor on an innovative transaction for EDF. The syndicated loan’s pricing mechanism incorporated the ESR goals set in EDF’s CAP 2030 strategic plan: direct CO 2 emissions, use by EDF clients of its online consumption monitoring tools, increase in its fleet of electric vehicles.

Development of low carbon 6.3.2.5 structured products ODD 13: Climate action

of securities comprising the indices factors in each issuer’s climate score and is based on a transparent method designed by experts in CIB’s Green Hub. The range of climate indices managed by Natixis grew in 2018 with the launch of the Euronext (R) ECO5E index. A new range of three Responsible Investment indices sponsored by Euronext was also created, with the latest being launched in September 2018. The methodology was based on the approach followed by Mirova/ISS-Oekom, which reconciles value creation and sustainability. Outstanding amounts sold by Natixis on the Climate and ESG indices total €1.2 billion.

A number of innovative sustainable investment solutions were produced in 2018, including fixed income structured products, climate indices, and ESG indices. Since 2015, Natixis has developed a range of climate indices to meet the need for investment in sectors contributing to the energy and ecological transition in different regions. The selection

Innovation in 2018 The first Green Repack structured note for a French sovereign issue The French €9.7 billion green OAT 2039 is currently the biggest green sovereign bond ever issued in Europe. Proceeds will finance projects with a positive environmental, social and societal impact. In 2018, Natixis produced the first green structured note offering investors exposure to both the green OAT 2039 and to a bespoke coupon structure. The environmental qualities of the OAT 2019 Green Repack product were certified by Vigeo-Eiris.

Aligning with the objectives 6.3.2.6 of the Paris Agreement ODD 13: Climate action

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 and the climate data specialist Carbone4 co-developed a method for measuring the carbon footprint of issuers in different business sectors, named Carbon Impact Analytics (CIA). The CIA model focuses primarily on two indicators:

The Green Weighting Factor created in 2018 will allow Natixis to decarbonize its balance sheet and gradually align the impact of its financing activities with the objectives of the Paris Agreement, i.e. to limit the global temperature rise at the end of the century 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 (1) .

See introduction on the Green Weighting Factor in Chapter 6.3.1. (1)

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Natixis Registration Document 2018