2021 Universal Registration Document
RISKS MANAGEMENT
Description and mitigation of main risk factors
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), 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. Climate-related performance report. Level of risk impact: Potential Impact on BIC: Examples of Risk Mitigation: The potential impacts on BIC include: rarefaction and price volatility of plastics; • brand image depreciation linked to “single-use” and “Plastic” bashing from • consumers; increased regulations on Plastics impacting BIC’s direct or indirect • operations; carbon regulations affecting operating costs; • disruption or interruption of production activities due to extreme weather • conditions; environmental Labelling of products impacting sales. • a comprehensive Sustainable Development Program, aimed to limit the • environmental impact of BIC’s activities covering BIC activities, products, and supply chain, complemented in 2018 by Writing the Future, Together commitments, including: improving the environmental and/or societal footprint of BIC ® • products (2025 Commitment: #1 Fostering sustainable innovation in BIC ® products). This ambition is based on deploying a comprehensive eco-design process fully integrated into each product category’s innovation processes. Through this commitment, BIC will mitigate two risks: the Plastic challenge and the Carbon footprint of its products, the use of 100% renewable electricity by 2025. 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; a circular economy approach fully embedded into BIC’s historical • approach to its product, including its 4R philosophy (Reduce, Recycled or Alternative, Refillable, Recyclable); Ambitious commitments on plastics: • 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; In 2018, BIC launched a study to review the physical risks linked to Climate Change for all of its sites and some contract manufacturers and suppliers. The analysis included 248 globally located assets – including manufacturing centers, offices, residential buildings, warehouses and land that BIC either owns or rents or is owned by a third-party supplier. The climate hazards included in the analysis were – heat stress, water stress, floods, sea-level rise, and hurricanes and typhoons (tropical cyclones). The most prevalent hazards for BIC were noted as floods and heat stress – covering about 14% and 12% of the assets in the portfolio respectively. Many of the exposed facilities are owned by third parties or rented. All these initiatives and those mentioned in the Group’s Sustainable Development Strategy presented in Chapter 3 contribute to mitigating the risks.
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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •
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