BPCE_REGISTRATION_DOCUMENT_2017

RISK REPORT 3.12 Climate risks

Climate risks 3.12

Organization 3.12.1

Mindful of its responsibility to promote a lower carbon footprint economy, Groupe BPCE and as such takes committed actions to incorporateclimate risk and implementmeasures to reduce this risk. The Group endeavorsto identifyand manageclimate change risk as it does all other risks incurredin its activities,and has includedit in the 2018-2020 strategic plan. Like all French bankinggroups, GroupeBPCE takes part in the work of the ACPR, in accordancewith Article 173, paragraphV, of the French Energy Transition for Green Growth Act. Since 2016, the general credit risk policy has included climate risk and incorporated Corporate Social Responsibility as a major risk developmentpriority.Climaterisk is also addressedin the macro-level mappingof risksincurredby Groupinstitutions. The Group CSR approach was formally established and approved by the ExecutiveManagementCommittee,includingthe reductionof its direct and indirect environmentalimpacts. Groupe BPCE then rolled out measures aimed at reducing these risks in all aspects of its business. Indirect impacts: a review of green growth markets, through the identificationand ● assessment of each of the economic sectors affected, the analysis of the current positioningand performanceof the Group’s banks on Groupe BPCE confirmed its commitment by aiming for transparent sector risk policies which also incorporateESG criteria (environment, social and corporate governance). Accordingly: the Group made this one of the ambitions of the “financing a ● responsible economy” project in the 2018-2020 strategic plan; a one-day event on climate risk and green financingwas organized ● for the risk and compliance functions, and attended by renowned experts in the field, including the ACPR, Banque de France, members of the European Commission’s High Level Expert Group (HLEG), and Financefor Tomorrow(Paris Europlace); four working groups combining experts from the Risk, Compliance ● and Permanent Control division (DRCCP) and CSR experts from various Group institutions were formed to develop an action plan on the following issues: extreme weather events, - incorporation of ESGrisks inthe credit policy, -

these markets, and the assessment of the business development potential for the Group’s banks; internal CSR policies have been drawn up and included in the risk ● policies of the Natixis business lines working with the highest-risk sectors (defense, nuclear, energy/mining, and palm oil). On October 15, 2015, Natixis also committed to no longer financing coal-fired power plants or thermal coal mines anywhere in the world, given the current state of technologies; the financing of renewable energy and thermal renovations, ● throughall of the Group’s main sales networks; a range of green savings and lending products offered to its ● customers. Direct impacts: annual measurement of carbon emissions stemming from energy, ● travel, real estate and procurement for all Group companies; establishmentof action plans aimed, for example, at improvingthe ● energy efficiency of office buildings and reducing the impact of employee travel. Details on these actions are given in Chapter 6 of this document on the Group’s social, environmental and societal information. identification and monitoring of greenassets, - global governance of climate risk through Group institutions. - These efforts will expand on the risk analysis centered around the duty of vigilance and the Sapin II Act. On December 11, 2017, Natixisannouncednew commitmentsin favor of the environmentand the climate. In 2018, Natixis will implement an internalgreen incentivemechanismto further the alignmentof its financing programs the objectives of the Paris Agreement and its contributionto the transitiontowardsa low-carbon economy. Natixis is also committedto no longer financingoil extractedfrom oil sands or companies whose activities are mainly based on the production of oil derived from oil sands. Natixis is also committedto no longer financing the explorationand production of oil inthe Arctic. Natixis Assurances is involved in initiatives supporting the fight against global warming announced by the French Insurance Federation (the FFA)on December7, 2017.

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Activities in2017 and strategicguidelines 3.12.2

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Registration document 2017