Environmental and Social Risk Management
Managing environmental and social risks in our businesses
As a signatory of the Equator Principles, Natixis assesses the E&S risks of projects to be financed and takes care of the quality of due diligences aiming to manage, minimize and offset related impacts. Natixis publishes an Equator Principles' annual report (download 2018 reporting).
For the other types of financing, Natixis assesses and monitors its clients’ E&S risks in sensitive sectors, as described in the Registration Document (Part 6.4.).
ESR Policies for Sensitive Sectors
Natixis is committed to excluding financing and investing in sectors that are the most sensitive with regard to both human and environmental impacts.
In June 2019, Natixis amended its coal policy by tightening its exclusion criteria. Natixis has committed not to finance projects related to thermal coal (power station, mine, port or transport infrastructure), and companies whose activity is relying by 25% or more on thermal coal. This commitment also applies to Ostrum AM, Mirova, and Natixis Assurances.
Oil & Gas
- Tar sands: stop financing of tar sand oil projects and companies that mainly operate in tar sands. This commitment also applies to Natixis Assurances.
- Arctic: end financing of oil exploration and production in the Arctic.
Exclude companies involved in the production and trade of land mines, cluster bonds, nuclear, biological and chemical weapons.
Stop financing of the tobacco industry. This policy also applies to Ostrum AM, Natixis Assurances and Mirova.
In addition, internal ESR policies apply to the most sensitive sectors, including, nuclear, palm oil and mining & metals.
Managing Climate Risks
As a significant actor in the financing of the global economy, Natixis is exposed to climate risks, through both its operations and client business activities.
Climate risks that may directly impact Natixis are dealt with by a business continuity plan (BCP), including extreme weather events likely to affect its premises worldwide, such as storms, heatwaves, flooding of the Seine in Paris, etc.
Ostrum Asset Management is increasingly developing responsible investment at two levels : with ESG issues being integrated in its investment analysis process and exclusion policies applied to 93% of assets managed, and 21% of assets under management relying on ESG criteria, using a best in class strategy.
Environmental and climate risks of our business activities are being gradually integrated in our overall risk analysis to take into account that Natixis’ clients may be subject to, and/or contribute to climate risks.
Using a proprietary carbon foot printing methodology co-developed by Mirova and consultant Carbone 4, “Carbon Impact Analytic”, several Natixis entities are measuring and actively managing the carbon footprint of their portfolios.
Ostrum Asset Management in particular is measuring the carbon impact of its main funds. Natixis Assurances has also published its ESG investment policy, which includes measuring the carbon footprint of its investments.
A key climate innovation : the “Green Weighting Factor”
In anticipation of a probable future regulatory change, Natixis is implementing an in-house mechanism that links analytical capital allocation to the degree of sustainability of each financing. It promotes deals that have an affirmative environmental impact while penalizing negative impact. This mechanism will gradually apply to Natixis' new financing deals across all business sectors from 2019 onwards.