Managing environmental and social risks in financing operations and investments

Equator Principles

1200px-Equator Principles logoAs 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. 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 6.3.3.). Natixis EP reporting 2017

 

ESR Policies for Sensitive Sectors

 

  • Coal: 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.  

Sector policy applicable to the coal industry

 

  • Oil and Gas
    • Tar sands: Natixis pledges to no longer finance tar sand oil projects and companies whose business is over 30% reliant on tar sands. This commitment also applies to Natixis Assurances.  
    • Arctic: Natixis pledges to no longer finance oil exploration and production projects in the Arctic.

Sector policy applicable to Oil & Gas industry

 

  • Defense : Natixis applies a set of criteria in the defense industry and pledges to no longer finance companies involved in in the production, storage, and trade of land mines and cluster bonds. This commitment also applies to Ostrum AM and Natixis Assurances.

 Sector policy applicable to the defense industry 

 

  • Tobacco : Natixis pledges to no longer finance the tobacco industry. This policy also applies to the open-ended funds of Ostrum AM, Natixis Assurances and Mirova. 

Sector policy applicable to the tobacco industry

 

In addition, internal ESR policies apply to the most sensitive sectors, including, nuclear, palm oil and mining & metals.

 

Managing Climate Risks

Risques climatiques

As a significant actor in the financing of the global economy, Natixis is exposed to climate risks, through both its direct 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.

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[1]”, 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 has committed to implement in 2018 an internal "green supporting-penalizing factor" in order to incentivize the origination of financings supporting transition towards a low-carbon economy, and penalize financings which incur environmental risks. This mechanism will apply to all Natixis' financings worldwide.

Bonus-malus illustration



[1] Description of the “Carbon Impact Analytic” methodology