BPCE_REGISTRATION_DOCUMENT_2017

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

Assessment and monitoring of E&S risks and management systems

INTEGRATION OF ESG CRITERIA IN PRIVATE EQUITY ACTIVITIES Through its six asset management companies, Natixis provides a comprehensive range of products and services across the private equity business worldwide. Three of these companies specialize in direct investment in unlisted companies: Naxicap Partners, Alliance Entreprendre (growth capital and business transfers in France and Europe) and Seventure Partners (venture capital in France). Three companies offer advisory and investment management services: Euro-Private Equity in Europe, Caspian Private Equity in the United States and Eagle Asia Management in Asia. Since 2015, Euro Private Equity and Naxicap Partners have been signatories of the Principles for Responsible Investment (PRI). In addition to the PRI, Naxicap Partners made a commitmentto the IC20 ( Initiative Carbone 2020 ) to contribute to the COP21 goal of limiting global warming to two degrees. The aim is to reduce the greenhouse gas emissions of its equity interests and publishing the direct and indirectcarbon footprintof portfoliocompanies by 2020. Euro Private Equity established a responsible investment policy outlining its commitments as an asset management company with regards to due diligence, post-investmentand reporting. It works in partnership with Mirova, the responsible investment arm of Natixis Asset Management, to help integrate ESG criteria in its investment policy. For Euro Private Equity, Mirova played an advisory role in the drafting of its ESG charter and developmentof an analysis chart to assess the ESGengagement of portfoliomanagerssubject to review. Naxicap Partners has implemented an ambitious ESG integration policy and formalizedan ESG charter, including criteria for excluding certain industries and activities. It put together a four-person ESG team: a Head of ESG focused exclusively on this function was hired, two membersof the InvestorRelationsteam devote part of their time to ESG, and one member of the ManagementBoard coordinatesthe team’s activity. NaxicapPartners’formalizedESG policy details the steps that must be followed in the investment process, which are strictly monitored by the Middle Office, including: the obligation to conduct a pre-investment ESG analysis, the performance of an ESG audit by external specialists, the inclusion of an ESG clause in the shareholders’agreement,the preparationof an action plan discussed by company Supervisory Boards, and an ESG vendor audit when the investment is sold. Each company’s ESG performance is monitored, based in particularon annual data collectionon specific indicators.A report published once a year, available online, summarizes and analysesthe data, while highlightinginterestinginitiativesand points of improvement. INCORPORATING ENVIRONMENTAL AND SOCIAL (E&S) CRITERIA IN FINANCING AND INVESTMENT ACTIVITIES Incorporationof environmentaland social criteria in the Corporate& Investment Banking division’s financing business lines is assessed by the new CSR Department, which monitors the quality of the assessment and monitoring of E&S risks in transactions, analyzes reputationalrisk of interestedparties, and implementsCSR policies in sensitivesectors.

Equator Principles As a signatoryof the Equator Principlessince December 2010, Natixis applies an industry-wide methodology recognized by 92 member banks and financial institutions,aimed at evaluatingthe E&S risks of the projects it finances and assessingthe quality of the management systems used by its customers to manage, minimize, and remedy the impacts they causeas best they can. This methodology is applied to the financing of investments associatedwith new projects or with extensions of existing projects, mainly (for Natixis) in the infrastructure, energy (oil and gas), electricity and renewable energy, mining and metals sectors around the world. An organizational structure based on the principle that both the business lines and the CSR division are involved in assessing and managing transactions has been set up to assess the quality of existing E&S documentation prepared by the customer (or the customeradvisorif the documentationhas not yet been drawn up), to measure and classify potential E&S impacts and risks by importance, and call upon the servicesof externalconsultanciesif required.It also provides for the drafting of an action plan for impact mitigationand correction measures, which is included in the financial documentation.Compliance with the action plan is monitored over the life of the financing facility. A summary of key issues used to assess a project is part of Natixis’ credit approval process. Details of the analysis and decision-making process, the resources used and full information on transactions audited in this way are available in the annual Equator Principles report (published before July 31 each year and available on the Natixis website at https://www.natixis.com/natixis/jcms/ala_5415/en/environmental- and-social-risk-management). Mindful of the great diversity of customertransactionsand financing solutions, Natixis ensures the same level of vigilance on the underlying E&S risks of certain types of transactions outside the scope of theEquator Principles. Such transactions include acquisition financing transactions not associatedwith an investmentprogram, financing that is, by nature, for multiple purposes, transactions involving portfolios of assets too large for adedicated assessment, or certain kinds of assets. In each of these cases, the quality of the governance and managementof the E&S risks inherentto the industryin questionare assessed on the basis of current international best practices and standards,and the services of external consultantsare called upon if necessary. Assessments performed beyond the scope of the Equator Principles

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Analysis of reputational risk associated with interested parties

For all the financing transactions referred to above, and also when deemed necessaryfor any other transaction,an analysis is performed to determine whether the borrowing company, its operator or main shareholderhas a history of poor managementin its operations,from an environmental, social or health and safety standpoint.

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Registration document 2017