11 GOVERNANCE OF CLIMATE CHALLENGES TCFD REPORT 2021 TACKLING CLIMATE CHANGE Natixis’ Risk division will soon strengthen these measures by establishing a department in charge of climate risks with the mandate of coordinating the rollout of the framework applicable to climate risk. This department will work alongside the other risk departments and other internal stakeholders with a view to introducing consistent and exhaustive monitoring of such risks. Further out, it will also review high-stakes transactions from the climate risk appetite perspective as well as monitoring asset portfolio exposure to climate risks and internal and external reporting of these risks. With respect to Natixis Investment Managers and Natixis Assurances, the climate risk supervisory framework is largely based on taking account of ESG criteria in the investment and engagement process. Departments responsible for ESG topics within each of the entities support implementation of these mechanisms and ensure consistency with the overall Natixis ESG policy. Compensation policy Since 2019, compensation of Senior Management Committee members includes a Long Term Incentive plan indexed to meeting ESR criteria (10% indexed). Granting of this long-term inventive is conditional on improvements in Natixis’ non-financial rating with three external and independent rating agencies (Vigeo-Eiris, ISS Oekom and Sustainalytics). Moreover, Natixis’ ESR strategy is also used to determine the annual variablecompensationoftheChiefExecutiveOfficer. Apart from Senior Management, several compensation mechanisms also include ESR criteria: • a Natixis share ownership agreement includes ESR criteria (paper and energy consump - tion); • additional specific ESR targets are included in certain profit-sharing agreements at Natixis subsidiaries; • lastly, all of the employee savings plans (PES and PERCO) are SRI-labeled for new subscriptionssinceApril2021. Creation of a climate risk department 5