TCFD REPORT 2021 TACKLING CLIMATE CHANGE 35 CLIMATE-RELATED RISK MANAGEMENT • Chronic physical risks refer to direct losses driven by longer-term shifts in climate patterns (rising sea levels, chronic heatwaves, changes in precipitation patterns and increased  variability, unavailability / disappearance of specific resources) which may gradually  hamper productivity in a given sector. • Transition risks refer to the economic and financial impacts of implementing low-carbon  business models (impossibility of exploiting more oil reserves, shift in consumer preferences  from high-carbon products, sharp increase in production costs with the introduction of carbon pricing and energy taxes, technological improvements or innovations that support  thefightagainstclimate change,etc.). Note that Natixis considers liability risks — corresponding to the damages and interests a legal entity would incur in the event of being held liable for the consequences of climate change — as a sub-category of physical and transition risks. CLIMATE RISK MAPPING Natixis conducted a systematic identification and materiality assessment of climate risk impacts. This exercise leveraged existing Natixis' risk mapping and relied on a qualitative analysis of themateriality of impacts by ESR and risk experts in the short/medium-term (<5years)andlong-term(5-30years). The analysis led to distinguish between indirect impacts, resulting from Natixis exposure to other entities (clients, assets, etc.) exposed to climate risks, and direct impacts to which Natixis is exposed through its own activities. Indirect impacts Counterparty credit quality and collateral valuation Physical and transition risks may lead to a deterioration in the ability of borrowers to repay their debt and a deterioration in collection rates (higher probability of default and higher losses resulting from default). The level of exposure to these risks depends heavily on the activity sector of the counterparty and the geographic location of its activities. While certain counterparties are exposed across some or all of their activities, Natixis benefits from the diversification impact at the financing portfolio level, which limits the impact of these risks. Long-term, this impact could become significant in a scenario of a rapid deterioration in the climate situation or in the event of an accelerated transition. Financial assets valuation Extreme or repeated weather events or an accelerated energy transition could lead to asharpcorrectioninthevaluationoffinancialassets(equities,commodities). In the long run, Natixis’ Global Markets business, specifically its commodities business line, could be exposed to significant loss risk linked to market events caused by climate change related risks. Furthermore, Natixis could also be impacted by its exposure to financial assets  sensitive to climate risk held via the euro fund of Natixis Assurances or via seed Direct and indirect impacts mapping