BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Responsibility concerning our products [NFPS]

Three priorities for reducing the impact of our packaging Priority #1: Selecting responsible packaging materials With the aim of reducing its environmental footprint resulting from the production of packaging, the Group has set two goals, one on cardboard packaging and one on plastic packaging: 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 2019, the Group’s rate was 95.7% 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. In 2019, BIC in North America launched a program to transition the materials used in its primary packaging toward more recycled materials. 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. All products packaged locally in South Africa now use PVC-free packaging. 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. BIC takes advantage of every opportunity to replace plastic packaging by cardboard in its products. A few examples of progress made in 2019 exemplify the Group’s learning curve in this area: In Europe: the BIC ® 4-Color™ gift packs sold as a limited edition on ● BIC.com and e-tail sites are made of 100% FSC certified cardboard; the new display unit for the BIC ® Intensity Medium felt-tip pen ● is 100% cardboard; the new permanent display unit for lighters is made of 100% ● FSC certified wood.

In Brazil: lighters became the first category to achieve 100% PVC-free ● packaging; a project was launched to replace the plastic packaging of the ● BIC ® 4-Color™ Fine and BIC ® 4-Color™ Metallic with cardboard while increasing the number of pens per box. The production of this new packaging will begin in 2020, for an estimated savings of about 1.2 tons of plastic. Priority #2: Reducing the quantity of packaging per product sold 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. In Europe, 14 tons of cardboard were saved by the introduction of large cardboard sheets that can be reused as many as ten times, replacing small, single-use sheets. 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 (1) ❯

95.7%

94.2%

94.3%

92.1%

88.5%

87.9%

2019

2017

2018

Percentage of plastic packaging that is PVC-free (1) Percentage of cardboard packaging from certified and/or recycled sources (1)

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 intends to pursue its programs to promote the use of packaging materials with reduced environmental footprints (paper or recycled PET for blister packs), reduce the packaging for its products and reduce packaging waste in its factories.

Cello Pens excluded (1)

87

• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •