TCFD REPORT 2021 TACKLING CLIMATE CHANGE 36 CLIMATE-RELATED RISK MANAGEMENT money invested by Natixis Investment Managers. Given the size and the diversification of its own investment portfolio, the potential impact of climate risk from this area appears limited. Insurance risks and reinsurance access The increased frequency and intensity of extreme weather events could lead to an increase in the claims ratio for the Property & Casualty (P&C) insurance business. Considering Natixis Assurances' diversified business portfolio and exposure  concentration on France, the impact remains limited in the short/ medium-term  but could become significant in the event of a major deterioration in the climate  situation. In such a scenario, the ability to obtain reinsurance of certain climate risks could be hampered,whichwouldtranslatetogreaterriskexposureforNatixis. Asset management fund relative performance The impact of climate risks on the valuation of financial assets exposed to extreme weather events or an acceleration in the energy transition could lead to underperformance of an investment fund versus its benchmark and indirectly result in a loss of income. Natixis is exposed to this risk via the activities of Natixis Investment Managers and its affiliates. Nevertheless, the wide range of activities and asset management strategies of the funds managed by the affiliates of Natixis Investment Managers limits the potential impact of this risk. Direct impacts Liquidity and structural balance sheet risks Impairments of financial instruments linked to extreme weather events can have an impact on quality liquid assets held as a liquidity buffer. More generally, such adjustments can impact the main balance sheet aggregates, resulting in losses for Natixis. A downgrade in Natixis’ extra-financial rating could also adversely affect the access toandcostoffinancingitsactivities. Strategic risks The transition linked to climate change is already influencing the behavior of market players and Natixis clients. As a result, the medium-term viability of certain business lines and business models could be called into question if the necessary adaptation and/ordiversificationdonotoccur. Faced with this risk which is already significant, Natixis has placed energy transition concerns at the heart of its 2024 strategic plan in terms of developing products to meet clients’ new expectations and managing its exposure to climate risks. Natixis’ capacity to execute its strategy and keep pace with the energy transition will remainessentialtomaintainingitscompetitivepositioninthemedium/long-term.