2021 Universal Registration Document

NON-FINANCIAL PERFORMANCE STATEMENT: OUR ENVIRONMENTAL, SOCIAL AND SOCIETAL RESPONSIBILITY

Our industrial facilities and offices [NFPS]

GHG EMISSIONS FROMPURCHASES OF PRODUCTS ANDMATERIALS – IN TEQCO 2 – BIC

BIC has factories worldwide, which tends to limit the need for product shipping. For example, over 78% of the products sold in Europe are manufactured there. BIC uses two types of transport for its products: “inter-site shipping” which refers to factory-factory and ● factory-warehouse shipments (inter- and intra-continental); “distribution shipping” which refers to shipments from ● factories or warehouses to the end customer. Due to the environmental and financial impact of air freight, the Group is striving to minimize its use. In 2021, due to global supply chain challenges and to mitigate business risks and support our customer service levels, 2.82% of total tonnage was shipped via air transport which accounted for 70% of Group’s total emission from the transport of the year. BIC pays close attention to air freight, with the goal of continuing to keep it under 2.3% for intra-company transport. BIC has chosen to outsource its transport operations while maintaining a high level of internal expertise in the management of service providers, flow engineering and transport management tools. A specific effort focused on each transport flow is the best way to provide high-quality, competitive shipping while reducing the environmental impact.

347,000

292,000

232,000

2021

2019

2020

The carbon footprint of our transport operations The goal of BIC’s shipping management system is to ensure product availability while: maximizing customer satisfaction; ● reducing the environmental impact of its transport operations; ● and optimizing costs. ●

The responsible shipping approach comprises three objectives, whose actions are described in the following table:

Objectives of the responsible shipping approach

Actions taken

Raising awareness and controlling emissions

Since 2014, a steering working group has been tasked with identifying solutions to significantly reduce air freight over the long-term. This involves bringing together all relevant functions and working closely with teams across categories and worldwide. Transport companies that are committed to sustainable development are also regularly consulted.

Specific monitoring of air transport began in 2014, with quarterly reports to the management teams in each region. In 2020, a system to oversee air freight was rolled out Group-wide. This system requires multiple explanations and approvals prior to authorization of any air shipment. Furthermore, in 2020 and 2021, BIC launched and carried out a project to capture all its downstream transportation flows and thereby better track the associated emissions. Initial results are expected in early 2022. Optimizing shipments and routes The main leverage points in shipping to reduce emissions are cutting the distances travelled, the shipping mode used and load optimization. BIC’s logistical teams work on all three points in cooperation with other Group departments (such as Production and Sales) and service providers. Selecting responsible carriers Logistical operations are carried out by transport companies selected by BIC. Their equipment, methods and management systems are thus determining factors in the level of GHG emissions. These include: the age of the vehicles; • eco-driving training; • the use of speed governors; • tire technology; • emission measurement capacities, etc. •

In conjunction with the Group’s responsible purchasing policy, BIC selects carriers that can reduce the environmental footprint of its shipping operations. For example, in the United States and Canada, the Group only works with carriers that have received SmartWay ® certification, a program designed by the Environmental Protection Agency in the United States. To encourage its transport service providers to adopt responsible practices, BIC has incorporated the reduction of GHG emissions as a criteria for selecting carriers.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •

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