BIC - 2020 Universal Registration Document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Ethics and business conduct across the value chain [NFPS]

ETHICS AND BUSINESS CONDUCT ACROSS 3.5. THE VALUE CHAIN [NFPS]

The societal challenges undertaken by BIC include maintaining control over its entire value chain, recognizing the importance of its suppliers and subcontractors’ involvement in meeting the corporate responsibility to uphold ethics and Human Rights in the workplace and to fight corruption. To meet these challenges, the Group’s operations and subcontracting activities integrate its new general Code of Conduct, its Code of Ethics, its Anti-Corruption Policy and, since 2020, its Supplier Code of Conduct.

3.5.1

THE RESPONSIBLE PURCHASING

3.5.1.2

Writing the Future, Together –

#4 Proactively involving suppliers BIC has set the goal of making its responsible purchasing approach a central element of its Purchasing function. This ambition is codified in the following commitment: by 2025, BIC will work responsibly with its strategic suppliers to ensure the most secure, innovative and efficient sourcing. The ambition of the purchasing strategy is to maximize purchasing’s contribution to the creation of value for BIC, its suppliers and subcontractors by: securing the created value: ensuring continuous supply and ● consistent quality, consumer safety, regulatory compliance, brand protection; increasing the created value: performance and costs, ● manufacturing processes, the development of new customer benefits with no technological or material disruption; creating additional value: innovation that benefits ● consumers, overhaul of the processes. A complete review of the supplier database was carried out in 2019 in order to identify suppliers that are considered strategic for BIC based on four criteria: representing high volumes of purchases for BIC; ● continuity of operations if the supplier ceases to function; ● single-source supply; ● a significant impact on BIC’s growth. ● In 2020 the BIC Group identified an average of 300 strategic suppliers from among the constantly evolving roster of 15,000 suppliers in its database.

APPROACH

In the course of its operations, BIC works with more than 15,000 suppliers and subcontractors. For the Group, being a responsible company means maintaining control over the entire value chain. The Purchasing Department analyzes all risks related to the sourcing of products and services: stock levels, sourcing zones, single sourcing, etc. 3.5.1.1 In 2020 the BIC Group created a new Supplier Code of Conduct. This Code, which has been shared with all suppliers, explains the Group’s responsible purchasing approach, its commitments to its suppliers and the commitments that it requires from them. The latter encompass all aspects of sustainable development: integrity in business conduct, human rights and labor laws, health and safety, environmental impact, and the development of a sustainable supply chain. The Supplier Code of Conduct also integrates the former Responsible Purchasing Charter, which codifies the Group’s six basic Values: Ethics, Responsibility, Teamwork, Simplicity, Ingenuity and Sustainable Development. All suppliers and subcontractors, as well as their suppliers and subcontractors, must comply with the Supplier Code of Conduct. All suppliers must also comply with all national and local provisions, laws and regulations in force on their respective markets. When local laws or standards differ from the current Supplier Code of Conduct, the BIC Group requires that its suppliers comply with the stricter standards and principles. In a spirit of ongoing improvement, the BIC Group is committed to working with its suppliers and supporting them in their efforts to meet and exceed the standards of the Supplier Code of Conduct. This Code is one component of the overall BIC Group Code of Conduct, which also emphasizes the importance of the Group’s responsible purchasing approach. The Supplier Code of Conduct is included with the calls for tenders issued by the BIC Group and is appended to its contracts. The Supplier Code of Conduct

121

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •