7 GOVERNANCE OF CLIMATE CHALLENGES TCFD REPORT 2021 TACKLING CLIMATE CHANGE Supervision by the Board of Directors The Board of Directors discusses, approves and monitors the climate strategy presented by Natixis Senior Management. To guarantee effective monitoring of climate challenges, the Board of Directors is advised by three separate committees: the Risk Committee, the ESR Committee and the Compensation Committee. The latter approves the integration of non-financial criteria and climate concerns in company director compensation. The ESR Committee of the Board of Directors was created at end-2020 with the following mandate: • reviewing Group strategy and commitments to ESR and climate strategy; • monitoring the actions carried out by Natixis to reduce its own footprint and that of its financingandinvestmentactivities; • spearheadingawareness-raisingactionswithemployees,particularlyclimateissues; • observing the integration of non-financial criteria, including climate challenges, into company director compensation; • examiningESRriskrelatedtoinvestment,businessperformanceandreputation; • overseeing reporting on these challenges through the Non-Financial Performance Statement (NFPS); • analyzingtheGroup’snon-financialperformanceratings. The Chair of this Committee is an independent director. The Committee has four members including two independent directors and two directors from the shareholder network, one Banque Populaire company director and one Caisse d’Epargne company director. The Natixis General Secretary (to whom the ESR department reports) also participates in Committee meetings. Moreover, one of the independent directors chairs the Risk Committee of the Board of Directors to guarantee consistency in the actions undertaken by these two Committees. The Chair of the Committee is an expert in environment and climate concerns thanks to her participation in other companies’ ESR Committees. The director representing the Caisse D’Epargne network is also a member of the BPCE Group strategic working group covering environmental challenges. Training on environmental and climate themes is also provided to directors on a halfyearly basis as part of overall training programs for directors working for the ESR department and Risk division as well as for specialist teams in the relevant business lines. The Chairman of the Natixis Board of Directors is also Chief Executive Officer of BPCE Group and reports to the BPCE Group Supervisory Board on climate themes. Monitoring of climate challenges is organized with three specialist committees Training is provided to directors on a halfyearly basis 1