BIC - 2018 Registration document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Our societal responsibility [NFPS]

Perspectives ❯ 2019 will be devoted to defining a roadmap based on purchasing’s contribution to the creation of value for BIC, its suppliers and subcontractors. The implementation of this roadmap will then be monitored by the indicator “% of strategic suppliers concerned by at least one responsible purchasing action”. In addition to this roadmap for controlling major risks related to purchasing, BIC is pursuing its program of social audits of contract manufacturers. Ensuring respect for Human Rights 3.5.1.2. in the workplace Challenges ❯ BIC’s reliance on contract manufacturing is relatively low. Overall, 92% of the Group’s net sales are generated by products made in its own factories. 87% of these factories are located in countries with no Human Rights risk according to Freedom House  (1) . BIC works with subcontractors primarily for stationery products in the Consumer business and for Advertising and Promotional Products. Subcontracting gives the Group greater flexibility.

As a result of this review, the BIC Group has identified 346 strategic suppliers among the 15,000 suppliers in its database. An evaluation of the CSR risks related to its suppliers was carried out, the results of which are presented in the Group’s Vigilance Plan (see page 49). Lastly, a review was carried out of the risk control tools already in place within the Group. To meet the requirements of its Responsible Purchasing Charter (see box), BIC currently relies on three main tools: compliance with the Code of Conduct (see page 110); ● audit programs (see page 110); ● ESG evaluations by EcoVadis. From 2011 to 2017, BIC used ● the EcoVadis tool to evaluate the performance of its strategic raw material suppliers based on environmental, social and governance (ESG) criteria. Furthermore, the “Transport Community” uses the tools made available by the Group to help its transport service providers make progress in sustainable development. In 2013, the BIC Code of Conduct was amended to make it applicable to transport carriers and was shared everywhere the Group has operations. In Brazil a booklet presents the Code of Conduct to transport contractors. The “Packaging Community” works with its suppliers in a similar way. In particular, paper and cardboard packaging suppliers are encouraged to obtain SFI, FSC or PEFC certification or to supply packaging containing recycled materials (see page 84). The cross-identification of risks and the review of the risk control programs resulted in the drafting of an initial list of recommendations for improving control over risks related to strategic suppliers and implementing the strategy for maximizing the contribution to the creation of value. These recommendations concern the use of each tool in the system, its perimeter of application, internal responsibilities and roles, and the possibility of implementing additional tools in the future. The Responsible Purchasing Charter The Group seeks to cultivate long-term commercial relationships with its suppliers, establishing responsible relations with them and upholding its commitment to Responsible Purchasing. BIC’s Responsible Purchasing Charter, finalized in 2014, codifies the Group’s relations with its suppliers in keeping with its five shared Values: Ethics, Responsibility, Teamwork, Simplicity and Ingenuity. This charter applies to relations with suppliers and contract manufacturers involved in the production or shipping of BIC ® products. Through the Responsible Purchasing Charter, the Group reminds its suppliers and subcontractors that all of the commitments that BIC has made concerning its own operations apply to their activities as well. This charter is submitted to all suppliers and subcontractors to whom it is applicable.

PERMANENT WORKFORCE BY CATEGORY OF COUNTRY IN RELATION TO HUMAN RIGHTS RISK (1) IN 2018 – BIC GROUP

2%

Not free countries

Partly free countries 11%

87%

Free countries

GLOBAL CONTRACT MANUFACTURERS BY COUNTRY IN RELATION TO HUMAN RIGHTS RISK (1) IN 2018 – BIC GROUP

31.5%

Free countries

Not free countries 60.5%

8%

Partly free countries

Source: “Freedom in the World 2018”, a study by the non-governmental organization Freedom House. (1)

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •