BIC - 2018 Registration document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Environmental responsibility concerning our operations [NFPS]

3.3.2.

OUR TRANSPORTATION

Reducing other forms 3.3.1.5.

of environmental impact

ACTIVITIES

Impact on biodiversity BIC Group’s effect on biodiversity takes place primarily through its land use (industrial, logistical and administrative sites) around the world. To evaluate this impact, BIC relies on a “site approach”. A cartographic analysis of the physical surroundings of each BIC  (1) factory has been carried out in 2011. The majority of BIC’s factories are in non-sensitive (in most cases industrial) zones, and neither their land use, nor their operations, pose any evident risk to their surroundings. In places where there are specific obligations, the management systems address the problem and enable follow-up. Three hives were installed at the headquarters site in Clichy (France) in partnership with Ekodev, and four hives are managed by a local beekeeper at the BIC Écriture 2000 site in Marne-la-Vallée (France). Through its partnership with Ekodev, BIC also sponsors a melipona hive in the Yucatan region of Mexico as part of an effort to reintroduce this bee to its natural habitat. Air, water and soil release that seriously affect the environment The nature of BIC Group’s manufacturing operations, primarily the molding and assembly of plastic products and printing of products, has a relatively low local environmental impact compared with other manufacturing sectors. Nevertheless, the BIC Sustainable Development Program, based on the EH&S Policy (see page 86), requires each site to measure, evaluate and reduce every significant form of environmental impact. Conditions for use of soil In Europe and the U.S., where most of the Group’s sites are located, whenever an industrial site is closed, BIC ensures that plant decommissioning is performed in accordance with local laws and best environmental practices. When appropriate or when required by law, BIC carries out studies of the soil and subsoil, although most sites are not subject to compulsory examination. Such studies of pollution at European plants used over many years demonstrate that the Group’s business does not have a significant impact on soil and subsoil. For French plants subject to specific regulatory requirements, the policy for preventing the risk of soil pollution is an integral part of the operating plan. Noise and odor impact Odor is considered an insignificant aspect in the Group’s product molding, assembly and printing activities. As far as noise impact is concerned, measures are taken within the property limits in the context of local regulations. If noise pollution is brought to the Group’s attention in the future, studies will be conducted and any appropriate corrective actions implemented.

Challenges ❯ The objective of BIC’s shipping management system is to ensure the availability of its products to around 4 million points of sale all over the world, thus maximizing customer satisfaction, while at the same time reducing the environmental impact of its transport activities and optimizing costs. BIC engages in two types of transport for its products: “Inter-site shipping” which refers to factory-factory and ● factory-warehouse shipments (inter- and intra-continental); “Distribution shipping” which refers to shipments from the ● factories or warehouses to the end customer. Due to the environmental and financial impact of air freight, the key challenge for the Group is to use this form of shipping as little as possible. Even though it accounts for only 0.6% of the total tonnage shipped, air freight is the transport method that generates the most GHG: in 2018 it represented 43% of the Group’s total emissions from transport. Approach and progress made in 2018 ❯ BIC Group has factories all over the world, which tends to limit the need for shipping its products. For example, in the Consumer business in Europe, 82% of the products sold on a given continent are manufactured on that continent. In addition, BIC has chosen to outsource its transport operations while maintaining a high level of internal expertise in the management of service providers, flow engineering and transport management tools. A specific effort focused on each transport flow is the best way to provide high-quality, competitive shipping while reducing environmental impact. Led by BIC’s Transport Community, which unites the Group’s shipping managers on each continent, the approach is comprised of three main tactics: raising awareness and controlling emissions; ● BIC pays close attention to the proportion of this type of transport, with the goal of continuing to keep it below 2.3% for intra-company transport. In 2018, the share of air freight, in tons.kilometers, was 0.93%. Raising awareness and measuring emissions Like any function involving the supply chain, the optimization of shipping is a responsibility shared by several teams within BIC Group, from production to delivery, as well as sales and warehouse management. Since 2014, the “Transport Community” has been working closely with the categories (Stationery, Lighters, Shavers) and a steering working group tasked with identifying solutions to achieve significant and long-term reductions in air freight. In 2018, the Transport Community continued to consult with experts and work in cooperation with customers. Transport companies that are committed to sustainable development are also regularly consulted. The specific monitoring of air transport was introduced in 2014, with quarterly reports to the management teams in each zone. optimizing shipments and routes; ● selecting responsible carriers. ●

Cello Pens is not in the scope of this study. (1)

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •