BIC_REGISTRATION_DOCUMENT_2017

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY Our societal responsibility

Cartography of suppliers, subcontractors and service providers To apply its Responsible Purchasing Charter, BIC has developed three risk management programs: compliance with the Code of Conduct (see page 89), audit programs (see page 89) and ESG evaluations by EcoVadis (see below).

EXAMPLE OF RISK MANAGEMENT PROGRAMS FOR SUPPLIERS AND SUBCONTRACTORS INVOLVED IN THE PRODUCTION AND/OR SHIPPING OF BIC ® PRODUCTS

ESG Evaluation by EcoVadis

Code of Conduct

Audit program

Raw materials suppliers (plastics, metals, packaging and inks)

X

Contract manufacturers, licensed manufacturers, manufacturers of BIC®-brand promotional products

X X

X

Transport carriers

Evaluation of suppliers’ ESG performance and collaboration for continuous improvement

Ensuring perennial supplies The Purchasing departments are responsible for implementing the supply risk management approach and monitoring the resulting action plans. The buyers and suppliers ensure the steady supply of raw materials for their factories as well as secondary and recycled raw materials (reliability of sourcing, availability, price volatility). All people involved in supplier relations work closely together to keep the system running smoothly and share best practices. Performance ♦ 48: Average score of the strategic D suppliers assessed by EcoVadis according to sustainable development criteria 50% of BIC’s suppliers have been working D with the Group for more than 10 years Perspectives ♦ As part of “Writing the Future, Together” BIC Group has made responsible purchasing one of its five commitments : “By 2025, BIC will work responsibly with its strategic suppliers to ensure the most secure, innovative and efficient sourcing.” BIC will identify its "strategic suppliers" according to criteria relating to innovation, finance, and security.

Since 2011, BIC has assessed its raw materials suppliers according to environmental, social and governance (ESG) criteria with the help of the EcoVadis firm, to evaluate those that pose risks. The EcoVadis scoring system is comprised of 21 indicators in four areas: Environment, Social, Ethics and Suppliers/Supply Chain. The evaluation consists of assessing the suppliers’ policies, actions undertaken and results achieved in terms of sustainable development. The supplier is rated in each area and given an overall score with a maximum of 100. These assessment campaigns focus on strategic raw materials purchasing categories: Plastics, Metals, Packaging (France and Greece) and Inks. In all, 301 strategic suppliers have been registered on the platform, and 174 of them have responded to the questionnaire. The average score is 48 out of 100, which is higher than the EcoVadis average of 42. Among the suppliers that have been reassessed, 63% have improved their score. The “Transport Community” uses the tools made available by the Group to help its transport service providers make progress in sustainable development. In 2013 the BIC Code of Conduct was amended to make it applicable to transport carriers. The updated Code was shared everywhere the Group has operations. In Brazil a booklet presents the Code of Conduct to transport contractors. The “Packaging Community” also works with its suppliers in a similar way. In particular, paper and cardboard packaging suppliers are encouraged to obtain SFI, FSC or PEFC certification or to supply packaging containing recycled materials (see page 62).

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BIC GROUP - 2017 REGISTRATION DOCUMENT