DESCRIPTION ANDMITIGATION 2.2. OF MAIN RISK FACTORS
Risks related to Plastic and Climate Change Plastics and Climate Change are two major risks for BIC.
The plastic risk covers the upstream with the use of this material in BIC ® products, contributing to the depletion of a non-renewable resource, and • therefore subject to rarefaction and price volatility, and, downstream with the issues of pollution related to plastic waste. In addition to these stakes, and although BIC ® products are not single-use, there is a growing regulatory environment regarding plastics and the increasingly negative perception by consumers and citizens. Climate Change risks are related to increased carbon regulations, impacting BIC directly or indirectly through its suppliers or contract manufacturers • (especially on energy and plastics that are usually fossil fuel-based), and to the disruption or interruption of production activities, due to extreme weather conditions or availability of natural resources (water, energy, etc.). The development of new regulations and standards regarding product environmental impact assessment and communication (including the carbon • footprint) can also drive consumer behavior changes and impact Group sales. See § 3.7. BIC’s Climate Report. Level of risk: high Potential Impact on BIC: Examples of Risk Mitigation: rarefaction and price volatility of plastics material (and potential • impact of carbon regulations); brand image depreciation linked to plastic usage in the products; • single-use “Plastic bashing” from consumers; • increased regulations on Plastics impacting BIC’s direct or indirect • operations; carbon regulations affecting operating costs (specific tax for • production activities, energy costs, raw material costs…); disruption or interruption of production activities due to extreme • weather conditions; environmental Labelling of products impacting sales. • since 2003, a Sustainable Development Program, to limit the environmental • impact of BIC’s activities covering BIC activities, products, and supply chain; a circular economy approach fully embedded into BIC’s historical approach to • its product with its 4R philosophy (Reduce, Recycled or Alternative, Refillable, Recyclable); the announcement in 2020 of ambitious commitments that will radically • transform how BIC uses plastics and will contribute to reducing BIC environmental and carbon footprint: by 2030, BIC aims for 50% non-virgin petroleum plastic for its products, • with a goal of 20% by 2025, by 2025, 100% of BIC consumer plastic packaging will be reusable, • recyclable, or compostable; the launch in 2018, of “Writing the Future, Together” strategy, with ambitious • commitments:
by 2025, the environmental and/or societal footprint of BIC ® products will • be improved (“2025 Commitment: #1 Fostering sustainable innovation in BIC ® products”). The ambition is based on the deployment of a comprehensive eco-design process fully integrated into each product category’s innovation processes. Through this commitment, BIC will contribute to mitigating two risks: the Plastic challenge and the Carbon footprint of its products, by 2025, BIC will use 80% renewable electricity. With this commitment, the • Group is seeking to reduce its greenhouse gas emissions by purchasing renewable energies and will also study the potential production of renewable electricity on-site. It is part of a long-term vision to operate on 100% renewable electricity. It supplements BIC’s continued efforts on energy consumption reduction and energy efficiency to limit its emissions, in 2018, BIC launched a study to review the physical risks linked to Climate • Change for all its sites and some contract manufacturers and suppliers. All these initiatives and those mentioned in the Group’s Sustainable Development Strategy presented in § 3.2.1, contribute to mitigating the risks.
• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •