BIC - 2018 Registration document

RISKS

Extra financial risks [NFPS]

RISKS RELATED TO CLIMATE CHANGE

Risk Identification

Risk Mitigation

Major risks related to Climate Change are: increasing regulation on carbon or energy directly or indirectly impacting • our operations or those of our suppliers and contract manufacturers; disruption or interruption of production activities due to extreme weather • conditions or availability of natural resources (water, energy, etc.) directly impacting our factories or those of our suppliers and contract manufacturers; development of new regulations and standards regarding product • environmental impact assessment and communication (including the carbon impact) as well as consumer behavior changes impacting the Group sales.

To limit the financial consequences of these risks and transform some of them into long-term opportunities, since 2003 the BIC Group has a Sustainable Development Program, as well as an Environment, Health & Safety (EHS) Policy. In 2017, the BIC Group decided to go one step further and increase its efforts by defining ambitious commitments. Among the 5 commitments of “Writing the future, Together” , two contribute more directly to addressing the issue of Climate Change: By 2025, BIC will use 80% renewable electricity. With this commitment, • the BIC Group is seeking to reduce its greenhouse gas emissions by purchasing renewable energies and will also study the potential production of renewable electricity on-site. It is part of a long-term vision to operate on 100% renewable electricity. It supplements the BIC Group’s continued efforts on energy consumption reduction and energy efficiency to limit its emissions. In 2018, the BIC Group has renewable energy certificates (GoO or REC) to cover 68% of its electricity consumption and 47% of its indirect greenhouse gases (scope 2). By 2025, the environmental and/or societal footprint of BIC® products • will be improved (2025 Commitment #2 Acting against climate change). The goal is to deploy a comprehensive eco-design process within each of our categories. In the framework of its eco-design approach, the BIC Group aims at limiting the environmental impacts of its products (including the carbon impact) by minimizing the use of non-renewable raw materials by, for example, minimizing the quantity of materials used, the use of alternative materials or the development of refillable products. Besides, in 2018, BIC Group launched a study to review the physical risks linked to Climate Change for all its sites and some contract manufacturers and suppliers. For the sites with higher risks, the BIC Group will define a relevant action plan taking into account mitigation plan already in place. The Group Sustainable Development Program is presented in Chapter 3: “Our environmental, social and societal responsibility”. 3.3.1.3 Writing The Future, Together – #2 Acting against climate change.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •