BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Responsibilities related to our supply chain [NFPS]

3.5.2.2

BIC’s human rights in the workplace

a responsible purchasing training program integrated into ● the global buyers training curriculum. This program, which is mandatory for all members of the purchasing teams, is available to all team members in the BIC University catalogue. Its rollout began in late 2019 and all purchasing team members will have completed the program by the end of 2020. The CSR-based suppliers assessment and selection guide comes on top of the three main tools that BIC uses to ensure compliance with its Responsible Purchasing Charter: compliance with the Code of Conduct (see page 110); ● Perspectives ❯ In order to monitor progress toward goal #4, proactively involving suppliers, the purchasing teams intend to implement an indicator specifying the percentage of strategic suppliers involved in at least one responsible purchasing action. To that end, in 2020 they plan to define pertinent “responsible purchasing actions” for each purchasing family in relation to the goal of ensuring “the most secure, innovative and efficient sourcing”. These responsible purchasing actions can be already underway (buyer training, assessment and selection of suppliers based on CSR performance, etc.) or in development, such as innovation for the substitution of plastics in packaging, supplier awareness of BIC’s responsible purchasing approach, etc. The groundwork undertaken in 2019 will be used to define a roadmap and establish goals for each buyer in each product family. audit programs (see page 110); ● ESG evaluations by EcoVadis. ●

policy  [NFPS] Limiting contract manufacturing

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. 83% of these factories are located in countries with no Human Rights risk according to FreedomHouse  (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.

PERMANENTWORKFORCE BY CATEGORY OF COUNTRY IN RELATION TOHUMAN RIGHTS RISK  (1) IN 2019 – BIC GROUP

2%

Not free countries

Partly free countries 11%

87%

Free countries

CONTRACT MANUFACTURERS BY CATEGORY OF COUNTRY IN RELATION TOHUMAN RIGHTS RISK  (1) IN 2019 – BIC GROUP

3.5.2

ENSURING RESPECT FOR HUMAN RIGHTS IN THEWORKPLACE  [NFPS] Challenges, risks and opportunities related to non-respect of human rights in the workplace  [NFPS]

33%

Free countries

3.5.2.1

Not free countries 58.5%

[NFPS risk 5] Among its main CSR risks, BIC has identified risks related to the non-respect of human rights (child labor, international conventions, ILO): non-compliance with fundamental human rights such as child labor, discrimination or forced labor may result in legal action against BIC and major consequences in terms of reputation and attractiveness. Controlling its value chain is also a source of opportunities for BIC, such as: controlling quality, cost and production conditions by ● manufacturing most (92%) of the Group’s products in its own factories; strengthening relations with strategic suppliers in order to ● ensure the most secure, innovative and efficient sourcing; identifying opportunities for partnerships in order to meet the ● environmental and product development challenges of tomorrow.

8.5%

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 - 2019 UNIVERSAL REGISTRATION DOCUMENT •