TCFD REPORT 2021 TACKLING CLIMATE CHANGE 27 PUTTING CLIMATE AT THE HEART OF OUR BUSINESS STRATEGY risks and opportunities. Thisanalysis is based on a company-specific proprietary model. Through this approach, DNCA assesses (i) companies’ exposure to physical climate and transition risks according to their sector and geographic footprint and (ii) their strategy to transition and adapt to climate change. DNCA also develops climate theme funds. DNCA INVEST BEYOND CLIMATE Launched in April 2020, this DNCA SRI fund places climate challenges at the heart of its investment strategy based on a two-level analysis: • an analysis of Transition conducted on the way in which the Company decarbonizes its own activities to achieve a minimum trajectory of 2°C (carbon footprint on scopes 1, 2 and 3, revenue from carbon-intensive activities, alignment of 2°C according to Science-Based Targets initiative (SBTi) scenarios); • an analysis of Contribution to measure the positive contribution made by the Company’s products and services (revenue from ecological transition activities, R&D spending or green capex, CO 2 emissions avoided). DNCA Invest Beyond Climate meets the requirements of the Paris Agreement by excluding companies with a negative green contribution and limiting the share of companies without contribution to 30% (“neutral” activities). As an affiliate specializing in sustainable asset management, Mirova (€20bn in assets under management as of 12/31/2020) has developed a method for measuring the carbon footprint (scopes 1, 2and 3) of issuers in different business sectors since 2015. In doing so, the firm is able to focus its investment strategy and manage the global footprint of its asset management portfolios. Since 2018, the methodology has been enhanced to integrate portfolio “temperature” assessment and alignment with the climate scenarios set in the Paris Agreement. To achieve this, Mirova uses climate scenarios from the Intergovernmental Panel on Climate Change (IPCC) and investment projections from the International Energy Agency (IEA). Since 2019, Ossiam (€4bn in assets under management as of 12/31/2020) established a framework for measuring its asset management portfolios’ transition risk and comparing it with their benchmark. In 2020, the asset manager launched the first low-carbon sovereign bond fund to promote investment in countries that emit less carbon per capita. In parallel, Ossiam rolled out a new ESG voting policy which applies to all assets under management and systematically includes a climate component. This makes it possible to vote against members of the Board of Directors or approve the financial statements of issuers whose inclusion of climate challenges isdeemedinsufficient.Workonportfolios’temperaturetrajectoryisunderway. Real estate asset management specialists, AEW CILOGER (€34bn in assets under management as of 12/31/2020) and AEW Capital Management (€21bn in assets under management as of 12/31/2020), integrate transition risks throughout the investment lifecycle. The climate impact of portfolio buildings is systematically assessed and managed on an annual basis by measuring their energy use (an increasing proportion of the real estate portfolio is equipped with remote reading meters) and share of energy used from renewable sources as well as water use and waste management. smart sustainable solutions