BPCE_REGISTRATION_DOCUMENT_2017

6 SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION A range of services to meet the challenges facing our customers

By combining these three sources, the main limitations of existing approaches can be eliminated, giving an easy-to-interpretoutcome by offering an assessment of the portfolio under review in terms of degrees Celsius. Based on the methodologyused, all assets can be assessed by taking into account the direct activities of the company and its suppliers as well as the use of its products.The aim is not only to assess the risks

but also the opportunities associated with the energy transition by providing a measurement of emissions avoided (alongside emissions generated) by the company’s activities, relative to a benchmark scenario. At the portfolio level, the aggregation of emissions generated and avoided is examined to produce an adequacy level in relation to the climate scenarios established by international

institutionssuch as the IPCC or theIEA.

APPLICATION OF THE CARBON METHODOLOGY TO A SELECTION OF INDICES ➡

S&P 500 +3.7°C

MSCI World +4°C

MSCI Europe +4.7°C

CAC 40 +5.5°C

Barclay Euro Aggregate Corporates +4.4°C

Avoided (tCO²/m€) Generated (tCO²/m€)

98.3

146.5

216

272.5

184.3

-11.4

-14.9

-16

-16.2

-13.7

The results of this methodology raise an interesting point. While Europeaninitiativestend to be more advancedin terms of awareness and transparency of sustainable development issues than those of their North American peers, the carbon performance of the correspondingindex does not necessarily follow this trend. The S&P 500, for example, has a much lower carbon footprint than the MSCI Europe or the CAC 40. This difference is largely attributable to the predominanceof the technology sector on the S&P 500, which ends up “diluting” the intensityof generatedemissions. From a more global standpoint, we can observe that none of the indices reviewed satisfy the 2°C scenario, despite it being the only one capable – by international consensus – of avoiding the most serious consequencesof climate change. This observationunderscores the need to propose solutions leading to massive capital reallocation and supporting theenergy transition.

engaging in dialog and lobbying to encourage issuers and ● politicians to take climate issues on board through shareholder engagement, financial center engagement and lobbyinginitiatives; measuringand reporting the carbon footprint of portfolios:Natixis ● Asset Managementuses the Carbon Impact Analytics (1) method to calculate the carbon footprint of portfolios, co-developed by Mirova and Carbone 4 (see presentation of Mirova above). This innovative approach covers generated emissions within the company’s entire scope of responsibility, avoided emissions and overall contribution to climate change prevention. Furthermore, Natixis Asset Management has published a carbon report in the annual report of its main funds since December 31, 2016, in accordancewith the requirementsof the French Energy Transition Act; reducing portfolio exposure to the most carbon-intensivesectors: ● in line with the commitmentmade by its parent company, Natixis Asset Management has defined a sector-based carbon policy applicable to all directly managed portfolios. This policy excludes mining companies that employ mountain top removal, one of the most aggressiveforms of coal extraction. In 2017, Groupe BPCE recorded no provisions or guaranteesto cover environmental risks in its financial statements.

Natixis Asset Management: engagement for the climate

Natixis Asset Management has launched a number of initiatives ranging from measuring the carbon footprint of its portfolios to steering investors towards sectors working to develop solutions to climate change.These initiatives are founded on four major pillars: contributingto the fight againstclimatechangeby offeringa range ● of funds spanning multiple asset classes via its subsidiary Mirova, with the aim of funneling investor funds into pro-climate solutions;

To learn more about this methodology: http://www.mirova.com/Content/Files/Mirova/Recherche/EstimatingPortfolioCoherenceWithClimateScenarios. (1)

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Registration document 2017