BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Responsibility concerning our products [NFPS]

Marketing compliant products that are safe for human health and the environment To guarantee consumer safety, the Group Insights & Innovation Officer, the Group Supply Chain Officer and the Group Lighter General Manager are responsible for marketing safe products that comply with regulations. To this end, they rely on: BIC Group’s commitment to ensure that its products comply ● with regulations and are safe for health and the environment (see above); monitoring by dedicated regulatory watch teams (see above); ● a product safety qualification process for all products before ● they are launched in the market (see below). This solid, longstanding organization is constantly being adapted and expanded to take changing regulations into account. The Executive Committee and management teams are systematically kept abreast of new developments in product safety and regulations. In 2019, in parallel with the launch of the Bodymark™ by BIC ® temporary tattoo marker, the Group developed a process for the qualification of cosmetic products. The Product Safety teams have also developed a process for approving the use of recycled plastic raw materials in the production of BIC ® products. These materials are recuperated from a very wide range of consumer products, making it impossible to provide traceability for the substances they contain. This new process allows the Group to qualify each batch of recycled material before it is used in BIC ® products, helping ensure consumer safety. Systematic testing and evaluation programs Before they arrive on the market, all BIC ® products, including modified products, must pass a full program of safety qualification tests. These tests and evaluations make it possible to assess potential hazards and to identify the chemical substances present, evaluate their risk level, verify their compliance with standards, and identify any adaptations of the formulas or substitutions that might be needed to reduce risks. BIC faces competition from several low-cost lighters that too often do not comply with international safety standards. According to tests conducted by independent accredited laboratories, more than three-quarters of the lighter models in the European market fail to meet standards. The Group has initiated actions to raise awareness among the various parties involved.

In 2010, emphasizing the consequences for consumer safety, BIC filed a complaint against the Netherlands with the European Commission for non-enforcement of EU safety standards for lighters. As a result, the Commission opened an infringement procedure against the Netherlands. In March 2012 and then in July 2014, the country was served formal notice to explain its failure. The procedure remains pending. In April 2019, the Association des Brûlés de France (French burn victims’ association) participated in a hearing with the European Parliament after petitioning the European Commission regarding the lack of progress in the regulatory compliance of lighters in Europe. In July, BIC lodged a complaint with the European Ombudsman concerning the European Commission’s misadministration of the infringement proceedings initiated in 2010 against the Netherlands. The Ombudsman deemed the complaint admissible and has begun an investigation to determine whether the Commission has taken an undue amount of time to address the case. approach  [NFPS] Writing the Future, Together – #1 Fostering sustainable innovation in BIC ® products Assessment according to the Sustainable Scorecard: 249 product ranges; • 443 formulas; • 45 specific tests. • Results of the product safety 3.2.2.4 approach In the coming years, the Group will continue to adapt its working methods and means to maintain its own standards and level of compliance concerning product safety. BIC will continue to expand its regulatory watch activities to remain ready to adapt its processes, products and formulas as needed. In 2020, as part of the Group’s transformation plan, training will be offered on regulatory obligations and product safety. Training will continue on an international scale, at the industrial sites in South Africa and Tunisia (Bizerte) and in China at the sales office in Shanghai. Systematic testing 306 products have been tested by independent laboratories. Perspectives: The product safety 3.2.2.5

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •