TCFD REPORT 2021 TACKLING CLIMATE CHANGE 45 CLIMATE-RELATED RISK MANAGEMENT INSURANCE Life insurance The sustainable investment strategy of Natixis Assurances includes, by nature, sustainability risk management (see Section 2. Strategy). Natixis Assurances recognizes that climate change risks can considerably impact investments and aims to manage these risks appropriately. The management of sustainability risks and their potential negative impacts on Natixis Assurances’ portfolio is conducted using approaches focused on normative and best-in-class sector exclusions, which form the basis of its ESG commitment (tobacco, coal, controversial weapons, tar sands and companies with negative sustainable development ratings) 8 . Aside from risk management, Natixis Assurances is also committed to contributing positively to Sustainable Development Goals (SDGs). Thiscommitment is reflected in its selective ESGpolicy: based on Mirova’s ESGanalysis, Natixis Assurances aims to improve theESGprofileofinvestmentsunderdiscretionarymandatesandindedicatedfunds. This policy, which mirrors the “negative” exclusions approach, aims to increase the share of sustainable assets in the portfolio, composed by “positive” issuers (positively contributing to SDGs) and “committed” issuers (very positively contributing to SDGs). Property & Casualty Insurance The Property & Casualty (P&C) insurance portfolio for private individuals and professionals via home, automotive and professional multi-risk coverage is exposed to claims linked to weather events. An analysis of existing contract portfolio is carried out regularly to identify and measure risks, in particular those related to weather events (flooding, drought, storms, etc.), as well as qualifying their geographical spread and adjusting subscription policy. In 2020, Natixis Assurances participated in climate stress tests organized by the supervisory authorities to identify long-term portfolio climate risk. In a drive to reduce the balance sheet impact of climate disasters, Natixis Assurances transfers part of the risk, including climate risk, to global reinsurers using various reinsurance arrangements. To support its clients and limit the consequences of weather events, Natixis Assurances sends text messages to clients likely to be affected by a climate risk event to alert them, so that they can protect themselves and their assets. When claims are made, in an effort to speed up processing, Natixis Assurances has strengthened its specialist teams for the filingandmanagementofclaimsandtoquicklymobilizeexpertnetworks. 8. See https://www.assurances.natixis.com/upload/docs/application/pdf/2021-03/natixis_rapport-investissement_ esg_2020_vdef.pdf