BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Environmental responsibility concerning our operations [NFPS]

ENVIRONMENTAL RESPONSIBILITY 3.3. CONCERNING OUR OPERATIONS  [NFPS]

As an industrial leader in the manufacture of consumer products, BIC is committed to ensuring that its sites, including both factories and offices, operate in an environmentally responsible way. BIC Group strives to reduce the impact of its manufacturing operations and optimize the shipping of its products. BIC exerts good environmental control over its entire manufacturing chain, in particular due to two factors. First, it favors in-house production over contract manufacturing: 92% of the Group’s net sales are generated by products manufactured in its own factories. Secondly, 81% of its products sold in Europe are also manufactured there.

3.3.1

PARTICIPATING IN THE FIGHT AGAINST CLIMATE CHANGE  [NFPS]

Challenges, risks and opportunities  [NFPS] 3.3.1.1 [NFPS risk 2] Among its main CSR risks, BIC has identified the following risks related to climate change: increasing regulation on carbon or energy directly impacting ● the Group’s operations or those of its suppliers and contract manufacturers;

the disruption or interruption of production activities due to ● extreme weather conditions or availability of natural resources (water, energy, etc.) directly impacting the Group’s factories or those of its suppliers and contract manufacturers; the development of new regulations and standards regarding ● product environmental impact assessment and communication (including carbon impact) as well as consumer behavior changes impacting the Group’s sales.

EVALUATING THE PHYSICAL RISKS FOR BIC REGARDING CLIMATE CHANGE

In 2018, using an analysis model based on risk statistics and the geographic locations of the sites, the physical risks linked to climate change (risks resulting from high temperatures, flooding, storms and typhoons, hydric stress and rising sea levels) were evaluated for each BIC site and for certain subcontractors and major suppliers. For the sites most at risk, the Group plans to define an appropriate action plan, incorporating any measures already implemented to counter the risk.

The challenge related to global warming is also a source of opportunities for BIC, such as: innovating in terms of energy supply, in particular through ● “Writing the Future Together” commitment #2: Acting against climate change, and by streamlining energy costs; improving the products’ environmental performance, in ● particular through “Writing the Future Together” commitment #1: Fostering sustainable innovation in BIC ® products; standing out on the markets by offering products with a ● reduced carbon footprint. #2 Acting against climate change  [NFPS] Fighting climate change has always been an integral part of BIC’s Sustainable Development Program. In 2019, BIC renewed its signing of the French Business Pledge, joining 98 other French companies in a pledge to fight climate change. Policies: Writing the Future, Together – 3.3.1.2

BIC codifies this ambition in the following commitment: by 2025, BIC will use 80% renewable electricity. Building on the experience acquired in recent years at certain of its sites, BIC defined a roadmap for its goal of 80% renewable energy by 2025, as part of a long-term vision of achieving 100% renewable electricity. This roadmap reflects a strategy in which each country or site examines its opportunities for sourcing renewable electricity, taking their regulatory and operational constraints into account. It serves as a guide for the countries and sites, which must also keep pace with the frequent market and regulatory evolutions that affect this business sector. To bring about a far-reaching change in its purchasing process for electricity, BIC is putting the focus on renewable energy certificates  (1) , green contracts and long-term Power Purchase Agreements, and is investigating the production potential of certain sites. In addition to the use of renewable electricity, BIC is pursuing its investments and actions to improve its sites’ energy efficiency and strives to limit its GHG emissions from other significant sources (scope 3), in particular by optimizing its transportation activities (see section 3.3.1.6 Our transportation activities ).

Renewable electricity is defined as electricity generated by biomass sources (including biogas), geothermal, solar, water (including hydroelectrical) or (1) wind power.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •