BIC - 2019 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Environmental responsibility concerning our operations [NFPS]

Raising awareness and measuring emissions Like any function involving the supply chain, the optimization of shipping is a responsibility shared by several teams within BIC, from production to delivery, as well as sales and warehouse management. Since 2014, the “Transport Community” has been working closely with the categories (Stationery, Lighters, Shavers) and a steering working group tasked with identifying solutions to achieve significant and long-term reductions in air freight. In 2019, the Transport Community continued to consult with experts and work in cooperation with customers. Transport companies that are committed to sustainable development are also regularly consulted. The specific monitoring of air transport was introduced in 2014, with quarterly reports to the management teams in each zone. With this regular monitoring, the Transport Community is focused on this issue at the highest levels. A detailed analysis of these reports has allowed the Transport Community to identify worldwide flows and to define three key actions for their optimization. Cost and flow optimization and the promotion of initiatives to foster sustainable development are included in the criteria for choosing transport service providers in new calls for tenders. Optimizing shipments and routes In shipping, the main leverage points for decreasing emissions are the reduction of the distances traveled, the choice of transportation mode and load optimization. BIC’s logistical teams work on all three points in cooperation with other departments within the Group, such as Production and Sales, and service providers. Following the completion of a project to map all intra-Group flows, a study is being conducted to pool shipments on a Group-wide scale. Certain flows were optimized in 2019, and the Group’s new organization should make it possible to expand this optimization considerably. Selecting responsible carriers Logistical operations are carried out by transport companies chosen by BIC. Therefore, their equipment, methods and management systems are determining factors in the level of GHG emissions, including the age of the vehicles, training in the techniques of eco-driving, the use of speed governors, tire technology, emission measurement capacities, etc. In conjunction with the Group’s responsible purchasing policy, BIC selects carriers that can reduce the ecological footprint of its shipping operations. For example, in the U.S. and Canada, the Group only works with carriers that have received SmartWay ® certification, a program designed by the U.S. Environmental Protection Agency. To encourage its transport service providers to adopt responsible practices, BIC has incorporated the reduction of GHG emissions in its criteria for selecting carriers. Lastly, to foster its carriers’ commitment to corporate responsibility, BIC extended its Code of Conduct to logistics service providers. The amended Code was made available to all the Group’s transport teams worldwide, to be put into practice with their service providers. To support their carriers’ efforts, in 2015 the Brazilian teams developed a methodology for auditing a transporter’s commitment in relation to the requirements of the BIC Code of Conduct, with the goal of rewarding the most committed carriers.

ANNUAL DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS (SCOPES 1 AND 2) NORMALIZED TO PRODUCTION – IN TONS OF CO 2 EQUIVALENT/TON – BIC GROUP

1,070

1,033

1,014

2019

2017

2018

3.3.1.6

Reducing the carbon footprint of our

transportation activities

Challenges ❯ The objective of BIC’s shipping management system is to ensure the availability of its products to around 4 million points of sale all over the world, thus maximizing customer satisfaction, while at the same time reducing the environmental impact of its transport activities and optimizing costs. BIC engages in two types of transport for its products: “Inter-site shipping” which refers to factory-factory and ● factory-warehouse shipments (inter- and intra-continental); “Distribution shipping” which refers to shipments from the ● factories or warehouses to the end customer. Due to the environmental and financial impact of air freight, the key challenge for the Group is to use this form of shipping as little as possible. Even though it accounts for only 0.66% of the total tonnage shipped, air freight is the transport method that generates the most GHG: in 2019 it represented 51% of the Group’s total emissions from transport. Approach and progress made in 2019 ❯ BIC Group has factories all over the world, which tends to limit the need for shipping its products. For example, 81% of the products sold in Europe are manufactured on that continent. In addition, BIC has chosen to outsource its transport operations while maintaining a high level of internal expertise in the management of service providers, flow engineering and transport management tools. A specific effort focused on each transport flow is the best way to provide high-quality, competitive shipping while reducing the environmental impact. Led by BIC’s Transport Community, which unites the Group’s shipping managers, the approach is comprised of three main tactics: raising awareness and controlling emissions; ● optimizing shipments and routes; ● selecting responsible carriers. ● BIC pays close attention to the proportion of this type of transport, with the goal of continuing to keep it below 2.3% for intra-company transport. In 2019, the share of air freight, in tons/kilometer, was 0.75%.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •