BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Responsibilities related to our supply chain [NFPS]

RESPONSIBILITIES RELATED 3.5. TOOUR SUPPLY CHAIN  [NFPS]

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. 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

THE RESPONSIBLE PURCHASING

The ambition of the purchasing strategy is 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 was carried out in 2019 in order to identify suppliers that are considered strategic for BIC 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. ● As a result of this review, the Group has identified 292 strategic suppliers among the 15,000 suppliers in its database. Progress made in 2019 ❯ In 2019, BIC Purchasing department reached the second benchmark in fulfilling commitment #4 of “Writing the Future, Together”, proactively involving suppliers, with the following measures: a new organization that designates a single buyer for each ● purchasing family in charge of supervising all phases of supplier relations; the introduction of a guide for assessing and selecting ● strategic suppliers based on their approach and CSR performance. For each purchasing family, this guide lists the CSR challenges, the stipulations to include in the specifications and the criteria for evaluating the supplier’s response. Each supplier is given a “CSR rating”, which is used to select the suppliers who make the strongest contribution to the Group’s purchasing strategy;

APPROACH

3.5.1.1

Challenges and opportunities related to

responsible purchasing In the course of its operations, BIC works with more than 15,000 suppliers and subcontractors. For the Group, being a responsible company means maintaining control over the entire value chain. 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. 3.5.1.2 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. The Responsible Purchasing Charter

3.5.1.3

Writing the Future, Together – #4 Proactively involving suppliers

Approach ❯ Beyond the stipulations of its Responsible Purchasing Charter, 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.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •