TCFD REPORT 2021 TACKLING CLIMATE CHANGE 19 PUTTING CLIMATE AT THE HEART OF OUR BUSINESS STRATEGY Investment policy on seed money in asset management Since 2020, Natixis Investment Managers has supported itsaffiliates in seed money, which is allocated as a priority to strategies integrating ESG issues. As of 12/31/2021, 28% of seed money is invested in ESG strategies (27 ESG funds), with more than 70% achieving the SRI label. CORPORATE & INVESTMENT BANKING Green Weighting Factor approach The Green Weighting Factor (GWF) is a unique proprietary tool developed by Natixis for several purposes: accelerating its transition to sustainable finance, systematically integrating climate transition risk into its financing activities, monitoring its climate alignment,andpreparingforfutureclimateregulation. This internal granular tool has enabled Natixis to set climate impact targets for each of its activities over the 2021-2024 period of its strategic plan, ultimately meeting its commitment to align its balance sheet with the Paris Agreement's 1.5°C scenario by 2050 withintermediatetargetsin2024and2030(seeIndicators& Targetssection). The tool includes both (i) a comprehensive methodology to assess the climate impact and climate transition risk of each financing (rated on a 7-level color scale from brown to green), and (ii) an internal capital allocation mechanism that links the amount of internal capital being allocated of each transaction to its level of positive or negative impact on climate change and other environmental impacts when material (biodiversity, water, pollution, waste). By using a favorable or adverse adjustment to risk-weighted assets (Credit Risk-Weighted Assets), the GWF adapts the expected return of each transaction A powerful tool for innovation and steering our climate impacts The twentieth century was built on fossil fuels. Most of our modern-day activities depend on them in some way or another. Economically, fossil fuel abandonment will not just shift investment from coal to renewable energy. Far from it. All sectors will be weakened or disrupted. In order to navigate through this new scenario and identify both high-risk and well-positioned players, it is imperative that we carefully assess all counterparties from a climate perspective. Exclusion policy is not the only answer. We are pleased to support the Green Weighting Factor mechanism implemented by Natixis CIB. This methodology is part of a broad and relevant approach to the issue and we hope there is more to come. Jean-Marc Jancovici Associate at Carbone 4, Chairman of the Shift Project, Professor at Mines ParisTech Sustainable investment in liquidity reserves