BIC - 2018 Registration document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Our societal responsibility [NFPS]

OUR SOCIETAL RESPONSIBILITY [NFPS] 3.5.

In September 2015, the United Nations adopted a new Sustainable Development Program comprising 17 worldwide goals for combating poverty, inequality and injustice. These goals emphasize the crucial role of universal access to education and hygiene. The Group strives to meet these challenges through its local economic presence, with about four million points of sale offering BIC® products worldwide, and through its global presence: BIC manufactures and distributes its products in 160 countries, supplying the most developed marketplaces as well as some of the most impoverished ones (see page 82). The societal challenges undertaken by BIC also include respect for ethics and Human Rights in the workplace and the fight against corruption. To meet these challenges, BIC’s operations and subcontracting activities integrate its Code of Conduct, Code of Ethics and, since 2016, its Anti-Corruption Policy. Lastly, BIC seeks to support local communities through the development of philanthropic policies that favor involvement at both the Group and the individual level.

3.5.1.

FULFILLING OUR RESPONSIBILITY ACROSS OUR ENTIRE VALUE CHAIN

Policies, approach and measures implemented ❯ Writing the Future, Together – 3.5.1.1. #4 Proactively involving suppliers BIC has set the goal of involving its suppliers proactively and has codified this ambition in the following commitment: by 2025, BIC will work responsibly with its strategic suppliers to ensure the most secure, innovative and efficient sourcing. In 2018, BIC reached the first milestone in fulfilling this commitment by conducting a comprehensive review of its system, based on its longstanding approach of ESG evaluations of strategic suppliers and audits of contract manufacturers. In 2018, the BIC Group’s purchasing teams were mobilized to define the ambition of the purchasing strategy, namely: to maximize purchasing’s contribution to the creation of value for BIC, its suppliers and subcontractors by: securing the created value (ensuring continuous supply and ● consistent quality, consumer safety, regulatory compliance, brand protection); increasing the created value (performance and costs, ● manufacturing processes, the development of new customer benefits with no technological or material disruption); creating additional value (innovation that benefits ● consumers, overhaul of the processes). A complete review of the supplier database has been carried out in order to identify suppliers that are considered strategic for the BIC Group based on four criteria: representing high volumes of purchases for BIC; ● continuity of operations if the supplier ceases to function; ● single-source supply; ● a significant impact on BIC’s growth. ●

Challenges, risks and opportunities ❯ The vast majority of BIC ® products, representing 92% of the Group’s net sales, are produced in BIC factories. BIC’s corporate organization prevents it from diluting its responsibility when it calls upon subcontractors: all purchased or subcontracted products and their suppliers are subject to stringent prior qualification processes in terms of quality, safety and social criteria. In the course of its operations, BIC works with about 2,000 suppliers and subcontractors. For the Group, being a responsible company means maintaining control over the entire value chain. To this end, the Purchasing Departments analyze all risks: stock levels, diversification of suppliers and sourcing zones, risks associated with the country and the rarity of the resource. BIC also strives to extend the high standards that it applies in its own operations, in terms of quality, respect for the environment, ethics and Human Rights, to all the parties involved in the production and distribution of its products. Its demands encompass factors like compliance with deadlines, cost control, quality and innovation, but also include adherence to the Group’s values and commitments in terms of sustainable development. The BIC Group has identified the following risks as major CSR risks  (1) resulting from its operations: “human rights (child labor, ILO standards)”; ● “fair practices (corruption).” ● The risks identified by the BIC Group in its supply chain are detailed in section 2.3 of the registration document, “Vigilance Plan.”

The main CSR risks related to the activities and use of BIC Group’s goods and services are presented in the chapter “Risks” on pages 44 to 48. (1)

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •