BIC_REGISTRATION_DOCUMENT_2017

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY Our societal responsibility

Ensuring respect for Human 2.5.1.2. Rights in the workplace Challenges ♦ BIC’s reliance on contract manufacturing is relatively low. Overall, 90% of the Group’s net sales are generated by products made in its own factories. 85% of these factories are located in countries with no Human Rights risk according to Freedom House.  (1) BIC works with subcontractors primarily for stationery products in the Consumer business and for Advertising and Promotional Products. Subcontracting gives the Group greater flexibility.

International Labor Organization (ILO). The Group is committed to upholding socially responsible behavior in all its operations. The principles in this document are applied at all production facilities, whether owned by the Group or operated by contract manufacturers, and BIC conducts audits to ensure its implementation. The Code of Conduct is based on the following 10 principles: a safe and healthy work environment; ● fair wages and reasonable working hours; ●

no child labor; ● no forced labor; ● no discrimination; ● freedom of association; ●

PERMANENT WORKFORCE BY CATEGORY OF COUNTRY IN RELATION TO HUMAN RIGHTS RISK (1) IN 2017 – BIC GROUP

legal compliance; ● no animal testing; ● environmental responsibility; ● publication of the Code. ●

2%

Not free countries

Partly free countries 18%

This Code of Conduct applies to BIC factories, which are mainly located in South Africa, Brazil, Spain, the U.S., France, Greece and Mexico. It also applies to contract manufacturers, which are primarily located in China, Brazil, Vietnam, Japan and Italy. The social audit program Compliance with the Code of Conduct is verified by an audit program covering all the factories where BIC® products are manufactured. BIC has had a specific audit program in place for more than 15 years to ensure worldwide compliance with its Code of Conduct by contract manufacturers . The program applies to both global contract manufacturers and contract manufacturers under local contracts producing BIC® products for local markets for BIC Consumer Products and BIC Graphic (Advertising and Promotional Products). Regular audits are conducted every two years to verify that standards are maintained at a satisfactory level. Audits are carried out by third party Auditors. In 2014, BIC Group ● introduced a new tool called the Workplace Condition Assessment (WCA) platform. Considered the next generation in social auditing, the WCA gives brands and manufacturers improved performance measurement tools and more meaningful results, while helping improve workplace conditions. This assessment tool is based on national laws, integrating ILO standards and existing best practices, and is consistent with the BIC Group Code of Conduct. The WCA comprises more than 180 evaluation criteria covering a range of topics: child labor, forced labor, discrimination, harassment, freedom of association, working hours, salaries, employment contracts, health and safety and environmental responsibility.

80%

Free countries

GLOBAL CONTRACT MANUFACTURERS BY COUNTRY IN RELATION TO HUMAN RIGHTS RISK (1) IN 2017 – BIC GROUP

36%

Free countries

Not free countries 55%

8%

Partly free countries

Approach ♦ An approach guided by the BIC Group Code of Conduct To ensure respect for Human Rights in the workplace, BIC has implemented a Code of Conduct . This document comprises a set of professional and social principles derived from the standards of the

Source: “Freedom in the World 2017”, a study by the non-governmental organization Freedom House. (1)

89

BIC GROUP - 2017 REGISTRATION DOCUMENT