BIC - 2018 Registration document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Responsibility concerning our products [NFPS]

maintaining the level of 90% of BIC’s cardboard packaging ● coming from certified and/or recycled sources; targeting the level of 90% of BIC’s plastic packaging being ● PVC-free. Certified and/or recycled sourcing for cardboard packaging In order to increase the use of certified or recycled cellulose fiber in its packaging, BIC works closely with its packaging suppliers to help them obtain certification and improve their supply processes. Certifications can be: FSC (Forest Stewardship Council), SFI (Sustainable Forestry Initiative) or PEFC (Pan European Forest Certification). As of January 2014, the Group has reached its previously defined goal of having 90% of its packaging come from certified sources and/or containing more than 50% recycled fibers. At the end of 2018, the Group’s rate was 94.16% overall. This result reflects the efforts made on several continents and in the concerned factories to select suppliers that are engaged in a long-term responsible approach. PVC-free plastic packaging The elimination of PVC in BIC Group packaging was completed several years ago for the factories in Europe and in the U.S., where 99% of the packaging is now PVC-free. The elimination of PVC packaging is also well advanced in Mexico. Depending on the type of packaging, the transition from PVC to PET can entail a few simple adjustments of the machine settings or, in other cases, a complete reworking of the packaging system. For this reason, the “Packaging Community” works with the factories and R&D, getting the marketing teams involved as far upstream as possible. This transition, initiated by BIC many years ago, allows the Group to meet the demands of certain distributors. For example, one major distributor in the U.K. will no longer stock products whose packaging contains PVC. The BIC Group takes advantage of every opportunity to replace plastic packaging by cardboard in its products. Two examples provide an apt illustration of this learning curve initiated by the Group: In 2018, the BIC ® 4-Couleurs™ Velvet, marketed in Europe ● since the end of December, was designed with all-cardboard packaging. This solution offers consumers the possibility of touching the product directly and eliminates the blister, for a savings of 1 ton of plastic; In the U.K., the plastic presentation tray for shaver packs has ● been replaced by a cardboard tray, for a savings of 16.5 tons of plastic. BIC Group actively seeks to reduce the weight and volume of its packaging through multiple targeted actions around the world in accordance with local distribution models. For example, in the U.S. in 2018, BIC continued its participation in Walmart’s “Packaging Scorecard” program, which puts the focus on seven “Rs” for progress: Remove, Reduce, Reuse, Recycle, Renew (use renewable materials), Revenue (look for savings), and Read (educate consumers). The packaging center in Charlotte (U.S.) has continued to reduce consumption of packaging per product sold, raising the proportion of blister packs made directly on the production lines to 80%. Priority #2: Reducing the quantity of packaging per product sold

Following the products distributed in North America and Oceania in 2017, the packaging for the entire BIC ® Soleil line has been optimized for better visibility on the shelf while reducing the quantity of plastic used. This modification has made it possible to reduce the use of plastic by 20% and optimize shipping costs and the related CO 2 emissions (by about 15%). Priority #3: Reducing packaging waste The Group is taking action to increase the recycling rate of packaging production waste in the packaging center facilities. The Charlotte site in the U.S. has already reached the program’s goal of 100% waste recycling. The site is now focusing on the reduction of waste due to packaging obsolescence. The “Packaging Community” also seeks to reduce the amount of waste generated by the destruction of stocks of obsolete packaging. In Australia, since 2013, BIC has been a member of the Australian Packaging Covenant (APC), a governmental initiative to promote the development of more sustainable packaging systems, increase recycling and reduce packaging waste – three priorities shared by BIC Group. BIC Australia has defined several goals in this area.

Performance ❯ 94.02% 83.46%

94.16%

94.34%

87.90%

88.46%

2018

2016

2017

Percentage of plastic packaging that is PVC-free Percentage of cardboard packaging from certified and/or recycled sources

(1) Cello Pens excluded.

These indicators cover all packaged BIC ® products delivered to the Group’s customers all over the world (except pallets): consumer packaging (pouch, blister, cardboard box), outer/inner, shrink-wrap, displays, etc. It is calculated on material weight. Perspectives ❯ BIC will pursue its programs to reduce the amount of materials used in its product packaging as well as the packaging waste generated by its factories. The Stationery category plans to launch an action plan in 2019 to reduce the consumption of packaging materials. Based on a survey of good practices and innovations conducted within the category in 2018, this plan will be shared with the other categories in 2019 through the “Packaging Community.”

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •