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For over 75 years, BIC® has met consumer needs and desires with high quality, simple, and affordable products and has become one of the most recognized global consumer goods brands, with products sold in more than 160 countries. Our vision is to bring simplicity and joy to everyday life, as we seek to create a sense of ease and delight in the millions of moments that make up the human experience.

Over time, the Group faced rapidly-changing industries and consumption trends affecting its three categories, as consumers habits and their interaction with brands continuously evolved. BIC’s mission to offer high quality products to consumers everywhere and meet their fast-changing needs, led the Group’ transformation from a manufacturing and distribution-led into a consumer-centric company.

BIC’s Horizon strategy was launched in November 2020 to genuinely transform BIC’s business, creating innovative products and services of tomorrow with an increased focus on consumer needs and sustainability. The goal was not only to amplify our core capabilities, but to go beyond them into higher-growth adjacent segments to ensure long-term sustainable growth and profitability. Horizon is embedded in the Group’s everyday operations and strategic goals.

As part of this transformation, BIC reframed its three core categories through a heightened consumer lens to tap into a stronger growth trajectory:

• ●in Stationery, BIC evolved its focus to “Human Expression”, responding to shifting consumer habits and expanding into the faster-growing Creative and Digital Expression markets;
• ●in Lighters, BIC expanded to “Flame for Life”, focusing on all consumer lighting occasions, including those non-related to tobacco, and driving towards a more balanced model between volume and value. Flame for Life is intended to drive incremental growth and maintain profitability, powered by trade-up and personalization, innovation, and a push toward sustainability;
• ●in Shavers, BIC decided to capitalize on its assets, ground-breaking innovation and manufacturing capabilities to leverage its “Blade Excellence” with the objective to maximize these assets by building a selective new business – named BIC Blade-Tech – as a high precision blade manufacturer for other brands.

Embedded in BIC’s Horizon plan are the following strategic and financial targets:

BIC is one of the leading players in the stationery, lighter, and shaver markets. Guided by our long-term vision, we provide high-quality, affordable products to consumers everywhere. This consistent focus has helped make BIC® one of the world’s most recognized consumer products goods company, with products sold in more than 160 countries.

BIC’s Horizon strategic plan launched in November 2020, aimed at driving sustainable growth by reframing our three categories to expand our total addressable markets in fast-growing segments:

In line with its Horizon strategy, BIC’s historical Stationery category evolved towards “Human Expression” to go beyond core Writing Instruments into Creative and Digital Expression. BIC constantly innovates to further strengthen its presence in both existing and adjacent segments.

Human Expression encompasses Writing and Coloring Instruments, Creative Expression which includes Arts and Crafts, Skin Creative and Digital Expression. Human Expression is a mid- single-digit growth market, which should reach c.50 billion euros by 2025 (4).

Since the launch of the BIC® Cristal® pen in 1950, BIC has continuously diversified its Stationery product range through more added-value products and innovative launches and with an increased focus on sustainability.

To name a few in the last three years, BIC launched an anti-bacterial pen BIC® Clic Stic® PrevaGuardTM, a tattoo body marker BIC® Bodymark, a new coloring range called Intensity, its first rechargeable metallic ball pen BIC® Cristal® Re’New™. In 2020, BIC acquired Rocketbook® the leading brand in Reusable Digital Notebooks. In 2022, BIC diversified further its brand portfolio, with the acquisition of Inkbox, the leading brand of high quality semi-permanent tattoos (high-quality 2-4 days decals), and Tattly, a US startup innovating in the field of high-quality temporary decals (2-4 days), which will diversify BIC's offering in the rapidly growing Skin Creative market. In the Digital Writing segment, BIC acquired AMI (Advanced Magnetic Interaction), a French innovative startup. AMI will strengthen BIC's R&D capabilities in Digital Expression.

In 2022, BIC’s global product portfolio included writing, marking (classic, permanent and temporary tattoo markers), correction, coloring, drawing instruments, semi-permanent tattoo, and smart reusable notebooks.

BIC’s historical market Writing and Coloring Instruments amounted to 18 billion(5) euros in 2021. The segment is expected to grow at around 5% CAGR 2021-2025(6) driven by the rising demand from developing countries and innovation which will fuel growth in the Developed countries. Although the market remains highly fragmented, with many local players and family-owned businesses, it is dominated by four players (BIC, Newell Brands, Pilot and Shanghai M&G Stationery) with each recording an estimated market share over 5%. BIC is the number 2 global manufacturer with 8.2% market share, benefiting from leading positions in both Developed and Developing Markets.

Over the years, BIC strengthened its presence in Writing and Coloring Instruments' market through innovative launches enabling market share gains in key countries, whether it be in core writing instruments or in added-value products. 

(In value – Euromonitor  2021)

While BIC’s portfolio is currently concentrated in historical core Writing Instruments segments, the Group’s ambition is to shift towards more added-value and adjacent segments such as the Creative and Digital Expression markets. In 2022, 24% of Human Expression Net Sales came from the Creative and Digital Expression segments.

The Arts and Crafts market is a large, mid-single-digit growth market (estimated at 10.6 billion euros in 2021)(7). The market is expected to grow by 3% (CAGR 2021 – 2025) thanks to the increasing demand of both kids’ and teens’ market as well as from adults asking for more creativity. Kids’ crafts account for more than 50% of the total. It includes a variety of sub-segments including Finger-painting, Watercolors, Kits, Crafting Accessories, Modeling Clay and Slime .

The Skin Creative market estimated at 7.4 billion euros(1) includes the permanent tattoos and the “Do it Yourself” Skin Creative segments. The fast-growing “Do it Yourself” Skin Creative segment includes temporary tattoo markers, temporary decals, henna tattoos and semi-permanent tattoos. It is expected to exceed 1.3 billion euros(1) in 2031, powered by the increasing desire of young consumers to be more fluid with their appearance and to express themselves using their body as a changeable canvas. Market players are mostly non-branded small companies.

• ●BIC entered the Skin creative market in 2018 through the launch of Bodymark®, an innovative temporary tattoo marker to address consumers’ attitudes shift towards self-expression, individuality and creativity.
• ●The acquisition of Inkbox in 2022 elevates BIC to a leadership position in the Do-It-Yourself Skin Creative industry and further enhances the Group’s existing portfolio of recognized consumer products, where different brands address diverse types of consumer groups. With its unique ability to customize, Inkbox further strengthens BIC’s DTC business and reinforces existing digital and social media engagement capabilities.  
• ●In August 2022, the Group acquired Tattly, a US startup innovating in the field of small high-quality 2-4 days decals, diversifying BIC’s offering in the rapidly growing Skin Creative market and particularly in the kids' segment.

The Digital Writing market was estimated at 6 billion euros in 2021(1). As technology is improving and becoming more affordable, this market should grow by 6% CAGR 2021-2025(1) to weigh above 7 billion euros. It encompasses four main sub-segments: reusable notebooks, smart pens, slate tablets, and stylus for tablets:

• ●BIC’s entered into Digital Writing through the acquisition of Rocketbook® in 2020, the leading smart and reusable notebook brand in the U.S.;
• ●In 2022, BIC strengthened its R&D capabilities in Digital Writing with the acquisition of AMI (Advanced Magnetic Interaction), a French company specialized in the augmented interaction technology. AMI has designed the ISKN Repaper digital tablet, which allows users to capture paper writing and drawing in an electronic format.

BIC was built on the amazing power of its Brand, which is one of the world’s most popular household names. Over time, other brands have been added to our portfolio, most of them using BIC as an umbrella to drive attractiveness and consumer engagement, including Tippex®, WiteOut® and, more recently BodyMark® by BIC.

With Horizon, BIC started to migrate to a “house brands” strategy, where each brand has a different meaning for consumers. The acquisitions of Rocketbook and more recently Inkbox and Tattly further strengthens this approach. BIC’s Human Expression division now offers a diversified panorama of brands, where consumers can each see themselves reflected and find their “own” brand favorites.

BIC’s mission is to offer products available to consumers every day and everywhere, supported by its historical strategy “A BIC seen is a BIC sold”.

BIC products are sold through a comprehensive range of channels worldwide as the Group pursues its objective to be an omnichannel specialist both offline and online. Products can be found in retail mass-market distributors, eCommerce channels (pure players, market places, B2B and B2C omnichannel retailers), traditional stores and Office Product suppliers (through contract or office superstores).

In the retail mass-market channel, Back-to-School season remains a key period. BIC offers consumers a tremendous range of school and college products through numerous displays, theatralization (for example the iconic school bus display in Europe) and merchandising tools.

Office & school supply remains a critical distribution channel where BIC has a strong position thanks to the quality, reliability and value for money positioning of its product, all even more important for companies, administrations and schools.

With the launch of BIC’s Invent The Future transformation plan in 2019, BIC strengthened its distribution network by reinforcing its e-commerce positions. In 2022, BIC maintained its leading positions in Stationery online in key markets: the Group ranked number 1 in France with 21% market share, number 2 in the UK with 18% market share, and number 3 in the U.S. with almost 13% market share (in value YTD December 2022).

In line with its Horizon strategy, BIC’s historical Lighter category evolved to “Flame for Life”, focusing on all lighting occasions. Flame for Life aims to balance volume with a more value-driven model, powered by trade-ups, personalization and innovation, to respond to changing consumer trends, while focusing more on sustainability.

The worldwide pocket lighter market is estimated at 13.1 billion units (4.7 billion in value) (8).

(BIC estimates  – in value)

BIC is No. 1 worldwide in branded pocket lighters in value, with approximately 55% in value in 2021 (excluding Asia) with leading positions in key geographies including North America, Latin America and Europe. The competitive advantages supporting BIC’s leadership position include safety, quality, strong brand awareness, automated and highly efficient manufacturing process, and a solid distribution network.

(BIC Estimates)

BIC is well-known for providing safe, high quality and compliant lighters to consumers worldwide. A lighter is pressurized gas in a plastic reservoir that is lit by a flame. It can present a real danger if it is not designed and manufactured properly. The consequences can be severe and are often unknown by consumers. International Safety Standards protect consumers from unsafe lighters.

Two key standards apply to pocket lighters:

• ●international lighter safety standard ISO 9994, which sets out the basic safety requirements for a lighter. ISO 9994 is mandatory in major markets such as Canada (1989), Russia (2000), Brazil (2002), South Africa (2002), Argentina (2003), Thailand (2003), Mexico (2004), South Korea (2005), the 27 members of the European Union (2006), Japan (2011), Indonesia (2011) and Turkey (2012);
• ●child-resistant requirements. A child-resistant lighter is purposely modified to make it more difficult to operate by children. Under this standard, the basic requirement is that a lighter cannot be operated by at least 85% of children under 51 months. Child-resistant legislation is mandatory in major countries such as the U.S. (1994), Canada (1995), Australia (1997), New Zealand (1999), the 27 members of the European Union (2006), Japan (2011), South Korea (2012) and Mexico (2016).

Low-cost lighters too often fail to comply with safety standards. Since the late 1980s, lighter models imported from Asian countries have gained market share. They currently account for over half of the global market (in volume).

BIC has been defending its position in this competitive landscape since its creation and advocates for enhanced lighter safety and quality. BIC® lighters comply with even more stringent safety, quality, and performance requirements. For example, the gas reservoirs of BIC® lighters are made from POM (PolyOxyMethylene), a high-performance resin with very high impact resistance. This means that BIC® lighters contain more gas, allowing more ignitions thanks to their wall’s thinness. They are also filled with pure isobutane, which ensures the flame’s stability throughout the lighter’s life.

BIC offers a wide range of high-quality Pocket and Utility lighters manufactured with the highest safety standards.

While BIC’s shift to balance more volume with value in the model for its Lighter business started years ago, this was accelerated with the launch of the Horizon plan. More recently the following developments were made to support this transformation:

• ●the acquisition of Djeep in June 2020, which strengthened BIC’s portfolio in the added-value segment of decorated lighters;
• ●the launch of  EZ ReachTM, BIC’s first pocket Utility lighter, in July 2020. The product has already reached 5.4% of the US pocket lighter market (Source: IRI YTD December 2022). Utility lighters (including BIC® EZ ReachTM) accounted for 11% of BIC’s 2022 Lighter Net Sales;
• ●the deployment of Revenue Growth Management strategy to drive efficiency in promotional and pricing activities.

In 2022, added-value lighters, including BIC®EZ ReachTM, Djeep®, utility and decorated lighters, represented 38% of BIC’s total Lighter Net Sales, on track to reach the Group's 50% objective by 2025.

An important pillar of BIC’s Flame for Life strategy is to drive growth by expanding to all flame occasions through incremental usages, as lighters have extensive non-smoking-related usages among different consumer activities. For the last six years, BIC lighter teams have undertaken extensive research to deepen their knowledge of the different flame usages. One of the main findings confirmed that candles and cooking are the most important non-tobacco-related flame usages in developed and developing regions (Ipsos study for Calyxis – October 2021). These lighting occasions represent a growth opportunity for BIC, well-positioned to answer the usages non-related to tobacco through the strength of its brand.

BIC® lighters are sold through traditional distribution channels (such as convenience stores and tobacconists), retail mass-market distribution stores, and online in the United States. Both online and offline, in-store visibility is key to driving impulse purchases, and part of BIC’s historical strategy “A BIC seen is a BIC sold”.

In the traditional channel, which is the leading channel for lighters, BIC is the undisputed leader driven by full-distribution based on strong routes-to-market, and relevant customer and consumer programs driving value to the business. Counter displays and trays help BIC showcase large ranges of decorated lighters and innovations such as BIC®EZ Reach, addressing everyday needs while generating impulse instore purchases.

In the mass-market channel, BIC focuses on relentless store visibility: at the check-out with classic pocket lighter ranges but also throughout affinity aisles such as candle and barbecue where EZ Reach and Utility lighters are highly attractive to consumers.

In e-commerce, in 2022, BIC continued to expand its BIC.com website in the U.S. driven by the “Design my BIC” offer enabling consumers to create sets of personalized lighters. They can also find exciting special editions, mono-color sets and brand new series of lighters.

BIC’s Blade Excellence division focuses on reinforcing its one-piece business with consumer-driven and sustainable added-value products and capitalizing on our advanced R&D and manufacturing capabilities through the creation of BIC Blade-Tech, the Group's B2B business for the wet shave market.

The wet shave market was about 10.9 billion euros in 2021 and accounted for around 48% of the hair removal segment(9) in value . The estimate 2021-2025 CAGR(10) for Total Wet-Shave market is +4.9%.

(Euromonitor – 2021- In value)

The Wet-Shave market is split into three product segments: double-edge, one-piece and refillable. On the highly competitive environment of the one-piece and refillable segments, growth is mostly driven by new products which offer improved performance and added features. A constant ability to innovate is key to maintain a leadership position. With that objective, BIC has made the shift towards premiumization to gain market share on value-added segments, while keeping BIC's strength in offering products at the right value.

The global landscape is dominated by three legacy brands (Gillette, BIC®, Edgewell) though over the last decade “disruptors”, primarily in the US launching as direct-to-consumer brands, have emerged.  While such brands have expanded presence by securing distribution in brick and mortar,  they are not directly competing with BIC given their refillable segment focus.

BIC is the No. 3 worldwide player, with almost 7% share(11) of the total wet shave segment. In the non-refillable segment (disposable), BIC ranks n°2 worldwide with 22% market share (12). The Group holds key positions in Europe, in the United States and in Latin America.

In the 1970s, BIC revolutionized wet shaving when it launched the first one-piece shaver: the single blade “classic”.

Over the last decade and supported by the implementation of the Horizon strategy, BIC has focused its innovation, sales and marketing efforts on the high performance three, four, and five-blade sub-segments, offering  thus a complete range of female and male products:

• ●for Men: BIC® 3, BIC® Comfort 3®, BIC® Easy/Hybrid 3-blade, BIC® Flex range, and BIC® Flex Hybrid range;
• ●for Women: BIC® Pure 3® Lady, BIC® Soleil® range including Bella®, Glow®, Balance and Miss Soleil; BIC® Soleil Escape, BIC® Click Soleil 5;
• ●for Men and Women: at the end of 2022, BIC launched BIC® EasyRinse online in the US market, a new razor for men and women featuring a first-of-its-kind blade design and patented anti-clog technology. This new product will be rolled out throughout 2023, in stores in the U.S.

In 2022, 63% of Blade Excellence Net Sales was generated with added-value products.

In line with Horizon strategy, BIC also innovates with new products centered on sustainability and tailored to consumer evolving trends. As such, BIC recently launched:

• ● BIC® BAMBOO shaver in 2021: a five-blade Hybrid Flex 5 with a movable head and a handle made from responsibly sourced bamboo;

• ●an innovative hybrid shaver range in Europe in 2021 made with recycled plastic handles and sold with recyclable packaging;
• ●BIC® Click Soleil 5 in 2022: a razor for women with a handle made from 40% recycled material and co-developed with the raw material supplier Avient.

With Horizon, BIC created BIC Blade-Tech, aimed at leveraging BIC’s leadership position as a high precision manufacturer to power other brands and thus expand our addressable market into the total wet shave market, estimated to reach 13 billion euros for 2025(13). A team including a commercial sales force dedicated to this new business, was created in 2021. BIC Blade-Tech started to ship its first customers, including both new and already established brands, in September 2021. In August 2022, BIC added a third customer to its portfolio. Based in India, this customer sells “powered by BIC” products for men. Overall, the new B2B business is successfully ramping up and contributed to 15% to the Blade Excellence division's growth in 2022. As planned, BIC Blade Tech is also accretive to the overall division’s profitability.

Include various strategic and tactical operations:

• ●DAPE 74 Distribution, which sells to tobacco shops in France;
• ●BIC® and non-BIC®-branded products: these include batteries, and a line of shaving preps, all of which are designed to grow the BIC® Brand in key markets;
• ●advertising and promotional products in Europe.

Introduction

BIC actively and dynamically manages its risks. The goal is to enhance the Group’s ability to identify, manage, prevent, mitigate and monitor key risks that could affect the Group's:

• ●employees, customers, shareholders' interest, assets, environment or reputation;
• ●ability to achieve its targets;
• ●ability to stay true to  its values; and
• ●ability to comply with laws and regulations including codes of ethics.

This approach is built around identifying and analyzing the main risks to which the Group is exposed. 

A description of the risk management system can be found in Section 2.4. Risk management and internal control procedures implemented by the Company and Insurance.

The risks set out below are not the only risks faced by BIC. The risks set out below do not constitute a comprehensive enumeration of all risks that the Group is potentially exposed to. Unforeseeable events may also impact the Group’s legal, financial or reputational capabilities.

BIC has taken a series of measures to mitigate the risks. One of these, described in Section 2.4.4 Insurance. Coverage of risks, is covering risks through adequate insurance policies.

Ukraine 

The Group closely monitors the potential consequences of the Ukraine crisis, on its activities.

In 2022, Russia and Ukraine accounted for 2.8% of BIC total Net Sales. Following the onset of the war, BIC paused all media, advertising, hiring, and capital investment in Russia, with the goal to ensure that this business disruption had as little impact on affected team members as possible. Simultaneously, BIC limited its product selection at retail to basic essential items only and remained diligent in complying with all regulatory decisions, including European and U.S. sanctions. BIC remains in complete control of its brand and intellectual property in Russia to counter any potential moves for brand appropriation. The Group has no industrial presence in these two countries. Please refer to “Risks related to Supply Chain” and “Risks related to IT security”.

In accordance with French Act no. 2017-399 of March 27, 2017, on the duty of vigilance of parent companies (“the Act”), BIC developed and implemented the following elements of a Vigilance Plan:

These elements include the necessary due diligence measures to identify risks and to help prevent:

• ●Infringement of Human Rights and fundamental freedoms;
• ●Health and safety hazards; and
• ●Environmental damage.

They target the major risks arising from:

• ●Group activities; and
• ●The activities of its subcontractors and suppliers with which it has an established business relationship to the extent such activities are connected with this relationship.

For the purposes of this section, the Group complies with the principles outlined in Part II of the Risk Management and Internal Control Systems – Reference Framework updated in July 2010 by the Working Group chaired by Olivier Poupart-Lafarge and established by the AMF. This represents a partial adoption of the full text that also provides an Application Guide for Internal Control Procedures for the Accounting and Financial Information Published by the Issuer.

The related specific control activities are the responsibility of the local subsidiaries. Those subsidiaries continuously adapt them in response to current circumstances, drawing guidance from the Group Accounting and Controllers’ Manuals. The Application Guide has not been formally compared to existing procedures and processes, but the Group does not expect material differences given the similarities between the Application Guide and these two manuals.

Risk management is a continuously evolving system that looks to the Group’s activities, processes and assets.

Risk management encompasses a set of resources, behaviors, procedures and actions that are tailored to the characteristics of the Company and that enable managers to keep the Group’s risks at an acceptable level.

Risk represents the possibility of an event occurring that may affect:

• ●the Company’s ability to achieve its business goals and core strategy;
• ●the Company’s ability to abide by its values, ethics, laws and regulations;
• ●the Company’s personnel, assets, environment or reputation.

Risk management also helps Company management to:

• ●create and preserve the Company’s value, assets and reputation;
• ●safeguard decision-making and the Company’s processes to achieve its objectives;
• ●ensure that the Company’s actions are consistent with its values;
• ●mobilize the Company behind a shared vision of the main risks.

The process also incorporates the definition of internal control as a Company-wide system, defined and implemented by the Company to ensure that:

• ●laws and regulations are complied with;
• ●the instructions and guidelines issued by Executive Management are followed;
• ●the Company’s internal processes are working properly, particularly those involving the protection of its assets. Assets are understood to be both tangible and intangible (know-how, brand, image or reputation) and are used throughout existing Company processes;
• ●financial information is reliable.

In general, internal control contributes to:

• ●corporate oversight;
• ●the efficiency of its operations; and
• ●the efficient utilization of its resources.

The first objective refers to all applicable laws and regulations governing the Company and that are part and parcel of its daily activities to ensure compliance.

The second addresses the guidance given to staff to ensure they understand what is expected of them, and their scope of responsibility. This communication process is built around the Company’s objectives, cascaded down to the team members.

The third objective covers all operational, industrial, commercial and financial processes. 

The final objective relates to the preparation of reliable financial statements (2). The reliability of such information depends on the quality of the associated internal control procedures and system (see reporting procedures Section 2.4.2.4 Internal Control procedures) that should ensure:

• ●the segregation of duties principle, enabling a clear separation between input, operating and retention duties;
• ●that function descriptions provide guidance regarding the identification of the source of the information and materials produced;
• ●the ability to check that operations have been performed in accordance with general and specific instructions and have been accounted for to produce financial information that complies with relevant accounting standards.

Risk management and internal control, as defined in this report, apply to SOCIÉTÉ BIC as Group parent company and all Group consolidated entities.

The internal controls in place have been designed for all entities to reflect:

• ●the existing organization;
• ●the objectives set out by the Board of Directors and the Executive Committee (see Section 2.4.3 Risk Management and Internal Control Participants, Specific Structure(s) in Charge/Respective Roles and Interactions); and
• ●compliance with laws and regulations.

Supporting principles and systems have been set up in all relevant areas and subsidiaries, considering local specificities and regulations. These principles are also known to and followed by the various centralized Group departments.

The Risk Management principles also apply to any entity joining the Group. Whenever possible, the Group asks its subcontractors and suppliers to also comply with these principles. For instance, SOCIÉTÉ BIC asks its suppliers to follow the safety rules for team members that apply within the Group.

Even with the most efficient organization there are inherent limitations in risk management and internal control. Risk management and internal control systems cannot therefore provide an absolute guarantee that the Company’s objectives will be met. The major existing limitations are outside developments and uncertainties, the subjective nature of people’s decisions and potential human error.

Moreover, any time a control activity is to be implemented, the comparative cost/benefit must be considered, ensuring reasonable coverage of the necessary controls.

BIC’S sustainability reporting general characteristics

For convienience please see below the items required by French executive order No. 2017-1265 of August 9, 2017(1) in the following chapters of BIC's  management report: 

In 2020, BIC released its first Climate-Related Performance Report in keeping with the guidelines proposed by the Task Force on Climate-related Financial Disclosure (TCFD). This report is now part of Section 3.2.1. Consequently, this section follows the headings suggested by the TCFD.

BIC identifies information expressly required in the Non-Financial Performance Statement with the initials [NFPS] and [NFPS Risk X]. The Group also includes all the action plans related to its Sustainable Development Program including those that do not directly help prevent or reduce a major risk. The Group has, however, reorganized this chapter to prioritize the information directly relating to the Non-Financial Performance Statement.

In 2022, BIC decided to adjust its current Non-Financial Performance Statement structure to meet the upcoming Corporate Sustainability Reporting Directive’s (CSRD) Sustainability reporting standards. 

A summary table of the Non-Financial Performance Statement can also be found in Section 3.5.1.

Main CSR risks and opportunities are outlined in Section 3.1.3.

Launched in 2003, BIC’s Sustainable Development Program continues to evolve and address major environmental and human issues as well as stakeholder expectations. It also benefits from advances in R&D, innovation, and evolutions in the Group’s operations.

This exhaustive program encompasses all key sustainability issues as well as related risks(2) that BIC must address to fulfil its Corporate Responsibilities. A unique reporting system is used to monitor the Group’s performance for continual improvement. Since 2018, the program has been guided by the five ambitious commitments that make up “Writing the Future, Together”. In 2020, this program was reinforced with additional commitments that will fundamentally transform the way the Group uses plastic. Furthermore, in 2022, BIC announced its Greenhouse Gas (GHG) emission reduction targets, taking the Group a step further in its consumer-centric approach, grounded in Sustainable Innovation, to respond faster and more impactfully to consumer demands and the important topics of this generation.

Through its Sustainable Development Program, the Group also contributes to the United Nations (UN) Sustainable Development Goals (see Section 3.1.1.5).

In 2017, BIC defined ambitious commitments that enable the Group to create value over the long-term for the benefit of all stakeholders. This effort is based on the principles of its Sustainable Development Program, namely assessing the materiality of the issues and incorporating the UN Sustainable Development Goals. It also takes into account regulatory requirements and consultations with stakeholders, as well as lessons drawn from regular benchmarking.

The vision  defined is set out in “Writing the Future, Together,” driven by BIC’s ambition for sustainability (see Section 3.1.1.2) and comprises five commitments which are an integral part of the Group’s strategic Horizon plan.

The table shown above charts how “Writing the Future, Together” contributes to the UN SDGs. The Group primarily contributes to the two SDGs below, mainly through the products it manufactures and markets, and through its monitoring and compliance program, which ensures that its products are safe and comply with health and environmental standards (see Section 3.3.4).

SDG 8. Decent work and economic growth. BIC contributes through the development of products and production modes that favor the efficient use of resources, including recycled materials (see Section 3.2.3.2).

SDG 12. Responsible consumption and production. BIC contributes through the Company’s eco-design program, which provides consumers with information to help them make their purchasing choices.

Furthermore, the Group contributes to the following UN Sustainable Development Goals within the direct scope of its operations or its sphere of direct influence:

SDG 1. End poverty;

SDG 3. Good health and well-being;

SDG 4. Quality education;

SDG 5. Gender equality;

SDG 6. Clean water and sanitation;

SDG 7. Affordable and clean energy;

SDG 9. Industry, innovation and infrastructure;

SDG 10. Reduced inequalities;

SDG 13. Climate action;

SDG 14. Life below water;

SDG 15. Life on land;

SDG 16. Peace, justice and strong institutions.

The Group contributes by:

• ●making simple, reliable products that meet essential needs available to everyone;
• ●undertaking initiatives that provide support for its team members;
• ●offering various products and programs to promote access to education;
• ●reducing the environmental impact of its factories;
• ●ensuring respect for Human Rights in its own factories and by its suppliers and subcontractors; and
• ●through the actions of the BIC Corporate Foundation.

BIC’s stakeholders’ engagement strategy is executed by the Head of Investors Relations and BIC’s management. The strategy’s objective is to establish and strengthen relationships with financial investors and multi-stakeholder initiatives by regularly participating in ESG conferences, roadshows and webinars. This strategy serves to anticipate stakeholders’ expectations and identify future collaborations as well.

In 2022, the stakeholder engagement strategy’s key milestones included:

• ●UN Global Compact Communication on Progress submission;
• ●French Climate pledge renewal;
• ●ranking fifth in the Labrador Transparency Awards which reward the Company’s communications in terms of transparency and quality; and
• ●inclusion in Axylia’s 2022 Vérité40(3) (Truth Index 40), affirming the Company’s ability to cover its “CO2 bill”.

In addition, year-on-year, BIC fulfils its commitment to answer questions from the following non-financial ratings agencies:

Vigeo, Sustainalytics, MSCI, GAIA,  FTSE, ISS ESG.

2022 results include(4):

• ●AAA MSCI rating;
• ●achieving the “Prime” ISS ESG Corporate rating; and
• ●ISS ESG 1 Quality in the Environmental Category.

In 2022, BIC continued its materiality matrix update by incorporating the double materiality aspect to this assessment. The results from this double materiality matrix will inform the Group’s sustainability disclosures in the years to come in compliance with the upcoming Corporate Sustainability Reporting Directive.

[NFPS risk 2] In 2022, BIC completed a physical and transitional climate change risk analysis of its value chain. The Company identified the following upstream and downstream transitional and physical risks related to climate change among its main CSR risks:

The challenge related to global warming is also a source of opportunities for BIC. These include:

Anthropogenic climate change constitutes one of humanities main challenges in the 21st century.

BIC’s longstanding commitment to sustainability started well ahead of the Paris Agreement, with its 1st Life Cycle Product Analysis in 1994. BIC has been working to reduce its environmental impact for more than 20 years and integrated climate change into its business strategy through risk and mitigation plans, tracking of Greenhouse gas (GHG) emissions for all Scopes, and publicly disclosing its annual GHG emissions. These actions to increase environmental performance transparency were rewarded by a confirmed A- leadership 2022 CDP score on Climate Change. BIC continues its commitment to the French Business Climate Pledge.

Throughout the years, BIC’s sustainable development efforts resulted in the "Writing the Future, Together" Sustainable Development program launched in 2018, which established five major environmental, social and societal commitments with additional commitments to transform the Group’s plastic use defined in 2020. This program supports BIC's innovation process and increased the use of renewable electricity. 

In 2022, BIC announced ambitious Greenhouse gas (GHG) emission reduction targets. Building on the Company’s "Writing the Future, Together" Sustainable Development program and years of innovation resulting in long-lasting products with a light environmental footprint, these targets reinforce BIC’s contribution to creating a sustainable future for all.

The fight against climate change is an integral part of the BIC Sustainable Development Program. Issues concerning sustainable development and climate change are incorporated into the Group’s decision-making processes and the related risks are included in the Group risk mapping by the Risk Management Department. Examples include working to embed CO2 mitigation thresholds into EMA(6) (BIC’s product development and circular design tool) and the role of the “Writing the Future, Together” steering committee who is responsible in overseeing the global sustainable development commitments across the Company (products, packaging and GHG emission reduction roadmap) each quarter.

Every year the Executive Committee reviews the implementation of the “Writing the Future, Together” program, which includes goals that contribute to the fight against climate change (commitments #1, #2 and #4). In 2020, the Group achieved its commitment #2 to use 80% renewable electricity for its plants and offices. As a result, a new target of 100% renewable electricity was set for 2025.

Direct operations, upstream and downstream climate-related risks are incorporated into the Group-wide processes for risk identification, evaluation and management. The Risk Management Department is in charge of identifying and analyzing risks.

The identification process highlights risks arising from both external and internal sources. The key consideration for identification is the potentially significant impact on the Group’s strategy, objectives, personnel, assets, environment and/or reputation. To enable a fluid approach, the risk identification and analysis process comprises two complementary components: a “bottom-up” free approach and a “top-down” structured approach. This two-fold approach makes it possible to identify redundancies and discrepancies.

The Executive Committee is responsible for managing the risks identified in BIC’s major risk mapping. Updates on the progress of the action plans for addressing certain key risks are also reviewed at meetings of the Board of Directors.

The Executive Committee and the central Group departments, including the Legal Department and the Sustainable Development Department, monitor the risks on an ongoing basis.

BIC is committed to ensuring that its facilities, including both factories and offices, operate in an environmentally responsible way. BIC strives to reduce the impact of its manufacturing operations and optimize product shipping.

BIC exerts strong environmental control over its entire supply chain and favors in-house production over contract manufacturing: 92% of the Group’s net sales are generated by products manufactured in its own factories.

To manufacture its products, BIC uses raw materials (plastics, inks, paperboard, metals, etc.), consumes resources (water, energy) and produces waste. The Group is aware of the environmental impact of its production activities and is committed to minimizing it. While demand for raw materials is mainly determined by product design (see Section 3.2.3 Circular economy and waste), BIC’s factories are tasked with optimizing water and energy consumption, as well as reducing greenhouse gas (GHG) emissions and waste production.

In 2022, Sustainable Development, Risk and Corporate Stakeholder Engagement departments performed a study on the physical and transitional risks due to climate change to better understand these risks in BIC’s value chain. Each team member is involved in the internal control processes and risk management activities in accordance with his/her respective knowledge and has access to the information used to design, operate, and monitor the internal control system. For example, BIC’s capital expenditures (CAPEX) planning process can include climate change impacts for specific investments needed based on past events such as flooding.

In 2022, BIC employed the RCP 2.6 and SSP2 to build a bespoke transition scenario as well as the RCP 6 and SSP3 and SSP4 to build a bespoke physical scenario to evaluate physical and transitional risks. The results were communicated to relevant leadership members. Consequently, for the sites most at risk, the Group plans to review any measures already implemented to counter the risk and define an action plan when appropriate.

Furthermore, the assumptions of the selected scenarios can serve in the identification of policies specific to BIC’s sector to be implemented at the national or global level. This includes, for example, policies on plastics, marine litter and disposable products, like the European Strategy for Plastics in a Circular Economy, as well as the environmental labeling regulation on consumer products in France or Europe.

In 2022, BIC committed to reducing 50% of Scope 1 GHG emissions and 100% of Scope 2 GHG emissions by 2030. These objectives are in line with the Paris Agreement target requirements and backed by the near completion of the 100% purchase of renewable electricity objective on all sites by 2025 (76% in 2022). Scope 3 objectives pledge an overall 5% reduction by 2030, of which -30% for the Flame for Life division.

Scope 1 and 2 targets were defined employing the Paris Climate Protocol principles under the1.5°C pathway methodology. The Group’s Scope 1 and 2 engagement exceed established recommendations. The Scope 3 target weighted a 2.0°C pathway methodology and will be reviewed every year by the sustainable development teams.

The implementation of innovative and scalable action plans to achieve BIC’s GHG emission reduction targets will require investments which are fully embedded into BIC’s operational strategy. These action plans presented in the following sections describe BIC’s ongoing efforts in several key areas as well as their progress.

Electricity consumption at BIC facilities accounts for 8%(7) of the Group’s total emissions. Through the commitment “Writing the Future, Together” – #2 Acting Against Climate Change, BIC aims to use 100%(8) renewable electricity by 2025.

Building on its experience, BIC established a roadmap for this goal. This roadmap reflects a strategy in which each country or facility reviews its opportunities for sourcing renewable electricity, consistent with their regulatory and operational constraints. In keeping pace with the frequent market and regulatory changes affecting this sector, BIC is focusing on renewable energy certificates(9), green contracts and long-term Power Purchase Agreements as well as electricity production potential of certain facilities.

Key actions taken throughout the years and in 2022:  

• ●in France, BIC purchased renewable energy certificates (Guarantees of Origin – GoO) for all its factories and the Clichy headquarters. This means that all BIC® products manufactured in France were produced using renewable electricity;
• ●in Greece, GoO certificates have been purchased for all the BIC Violex facility’s electricity consumption since 2016 and in 2022, a Power Purchase Agreement (PPA) for renewable energy was signed;
• ●in Spain, the BIC Iberia and BIC Graphic Europe facilities have been using renewable electricity through the purchase of certificates (GoO) since 2018 as well as renewable electricity produced from site owned solar panels;
• ●in the United States, the purchase of renewable wind energy certificates (U.S. RECs) covers the energy needs of most American facilities;
• ●in Brazil, the Manaus facility has been using wind energy or hydrolic since 2018 through the purchase of iREC certificates and solar panels have been installed in 2021;
• ●in Mexico, BIC has completed a Power Purchase Agreement (PPA) tender for renewable electricity. The Tlalepantla facility is expected to install solar panels by the end of the year;
• ●in South Africa, the purchase of GoO certificate covers all the factory’s consumption;
• ●since 2018, 100% of the lighter factories have been powered by renewable electricity, and research is underway to develop the self-sufficiency of the facilities (recovery of waste heat, development of photovoltaic and solar thermal energy, etc.);
• ●the Cello Stationery Products site has installed solar panels since 2019.

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.

BIC has factories worldwide, which tends to limit the need for product shipping. For example, over 80% 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 2022, due to global supply chain challenges and to mitigate business risk and support our customer service levels, 1.84% of total tonnage was shipped by air which accounted for 56% of the 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. Bic believes that  specific effort focused on each transport flow is the best way to provide high-quality, competitive shipping while reducing  environmental impact.

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

The emissions in this category are mainly related to the Group’s purchases of materials, especially plastics (69%).

In 2020, BIC announced two new ambitious goals as part of its “Writing the Future, Together” program. These two goals, which are also part of the Group’s Horizon corporate strategy plan, will help significantly reduce its GHG emissions:

• ●by 2025, 100% of BIC consumer plastic packaging will be reusable, recyclable, or compostable;
• ●by 2030, BIC aims for 50% non-virgin petroleum plastic for its products, with a goal of 20% by 2025.

These goals will be worked on through the implementation of the Group’s “4 Rs” philosophy (described in Section 3.2.3.2) and could help reduce its GHG emissions by about 10% (at constant perimeter).

The energy used to heat water when using shavers is the largest source of emissions, accounting for 34% of the total. BIC is exploring how to reduce this and hopes to put forward concrete plans in the coming years.

To manufacture and distribute its products, BIC uses raw materials (plastics, inks, packaging, metals, etc.), consumes resources (water, energy), produces waste and uses transportation services, all of which are responsible for greenhouse gas emissions.

The reduction of renewable energy percentage is due to the increase of production volumes in 2022 , leading to increased energy consumption at the sites that are still not using green energy (PPA, GoOs, green contracts, etc.) as well as the introduction of BIC Nigeria into the environmental reporting scope.

BIC implemented energy efficiency programs in its factories for many years. As a result, the Group has improved its energy efficiency by 10.5% in ten years.

Twenty-one energy efficiency projects were launched in 2022 of which 12 were completed during the year. The projects included light bulbs replacement with LED bulbs, processes optimization, energy studies and new and more energy efficient equipment installation. 

IT support departments have a direct impact on the environmental footprint of the facilities. In 2022 this approach included the following actions:

• ●encouraging  online meeting tools to reduce business travel;
• ●electricity consumption reduction due to the French data center's new location in the new Group's headquarters;
• ●switch from physical phones to virtual phones in Shelton headquarter;
• ●sharing Green IT best practices to BIC employees.

In 2020, BIC reviewed its method for evaluating scope 3 emissions. This was to provide an annual report on all types of emissions related to its operations in addition to those on which the Group has communicated in previous years (purchasing of raw materials and intra-Company transport). This effort was undertaken in line with the GHG Protocol.

The biggest sources of emissions for BIC are:

• ●the product use phase. The main impact is from the consumption of energy to heat water used in shaving;
• ●the impact of the raw materials purchased, in particular the impact of plastics used in the products;
• ●the impact related to the end-of-life of products after their use by the consumer.

A study of BIC’s global carbon footprint shows the following breakdown of greenhouse gas emissions:

In this section, the Group discloses the information required by the European regulation 2020/852 of June 18, 2020.

BIC is committed to the ecological transition. However, its core activities do not directly correspond to those retained in the delegated act on climate change adaptation and mitigation, for which the highest emitting activities on scopes 1 and 2 with a potential for transformation have been prioritized. Thus, the share of BIC’s eligible revenue for the year 2022 is zero. 

BIC aspires to have a set of eligible and aligned revenue sources once the delegated acts with the technical criteria for the remainder of the EU environmental objectives are established, notably under the transition to a circular economy objective.

For detailed results please visit Annex I,  II and III (Section 3.5.5).

BIC’s eligible but not environmentally sustainable (not Taxonomy-aligned activities) capital and operating expenditures relate primarily to expenditures associated with the following European green taxonomy activities (and their code) contributing to climate mitigation and adaptation:

• ●3.6 Manufacture of other low carbon technologies;
• ●6.5 Transport by motorbikes, passenger cars and light commercial vehicles;
• ●7.7 Acquisition and ownership of buildings;
• ●9.1 Close to market research, development and innovation;

These capital and operating expenditures include the following BIC projects(12):

• ●Investments in technologies that mix virgin plastic material with recycled plastic material;
• ●Investments in electric industrial vehicles;
• ●Investments in office building leases;
• ●Operating expenditures in research and development programs to reduce the use of virgin plastic in our products as well as programs to reduce the environmental impact of the usage of BIC® products.

As a result, BIC’s share of Taxonomy-eligible but not aligned capital expenditures for the year 2022 amounts to 18.95% out of a total of 136 million euros (see Note 9 to the Consolidated Financial Statements, Chapter 6.1). The slight increase in eligible capital expenditures in 2022 is due to a new lease for BIC's Headquaters in Clichy, France.   

The share of Taxonomy-eligible but not aligned BIC operating expenses for the year 2022 amounts to 0.06% out of a total of 487 million euros (see Note 4 to the Consolidated Financial Statements, Chapter 6.1) hence insignificant.

BIC’s environmentally sustainable activities (Taxonomy-aligned) capital expenditures relate primarily to expenditures associated with the following enabling European green taxonomy activities (and their code) contributing to climate mitigation:

• ●5.5 Collection and transport of non-hazardous waste in source segregated fractions;
• ●7.3 Installation, maintenance and repair of energy efficiency equipment;
• ●7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings);
• ●7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings;
• ●7.6 Installation, maintenance and repair of renewable energy technologies;
• ●9.3 Professional services related to energy performance of buildings.

These capital expenditures include the following BIC projects(13):

• ●Investments in the installation of conveyors that enable the auto recycling of non-hazardous waste back to the manufacturing process;
• ●Investment in lighting system replacement as well as guardhouse boiler replacements;
• ●Investments in charging stations for electric vehicles;
• ●Investments in smart meters for gas, heat, cool and electricity;
• ●Investments in air renewal management;
• ●Investments in carbon and energy audits.

The share of Taxonomy-aligned BIC capital expenditures for the year 2022 amounts to 0.15% out of a total of 136 million euros.

The share of Taxonomy-aligned BIC operating expenses for the year 2022 amounts to 0% out of a total of 487 million euros.

For detailed results please visit Annex I  II and III (Section 3.5.5).

It should be noted that in accordance with the European taxonomy, the operating expenses taken into account are defined as direct non-capitalizable costs and include research and development costs, building renovation costs, maintenance and repair costs, rents presented in the income statement and any other expenses related to the day-to-day upkeep of the assets.

Likewise, it should be noted that in 2022 BIC invested in key sustainable projects ineligible under the EU Taxonomy activities. These investments include the purchasing of new energy efficient machines as well as the development of the first-ever disassembling and recycling machines for lighters. 

The revenue, capital expenditures and operating expenses considered cover all of the relevant BIC activities corresponding to the financial consolidation scope.

The financial data is taken from the accounts as of December 31, 2022 and the revenue and capital expenditures can therefore be reconciled with the financial statements.

Companies in which the Group exercises joint control or significant influence are excluded from the calculation of the ratios defined by the delegated act known as “Article 8” of the taxonomy regulation(14).

BIC’s assessment of its business activities, eligible and aligned costs and investments and the determination and allocation of revenue, Capital expenditure (CapEx) and operating expenditure (OpEx) with reference to the climate delegated acts of the taxonomy, have been carried out in the following manner.

In 2021 BIC compiled the NACE codes of its subsidiaries and compared them with those of the activities listed in the taxonomy’s delegated climate acts and found no matching codes. 

In 2022, each BIC business unit (GI&I(15), Group Supply Chain and Lighters) proceeded to identify potential eligible capital and operating expenditures by employing existing internal sustainability criteria which included: energy reduction, decrease in raw material use and an overall positive impact on the environment among others. This allowed the sustainable development teams to perform a preliminary selection of potential eligible capital and operating expenditures. Subsequently, the sustainable development teams scanned the EU Taxonomy compass to classify these potential eligible capital and operating expenditures. Once the eligibility was established, the internal teams proceeded with the alignment assessment of these capital and operating expenditures. The Group assessed the project compliance with the substantial criteria for each of the EU Taxonomy activity as well as the do no significantly harm criteria when applicable. The climate adaptation do not significantly harm criteria was assessed at a Group level as a result of a Group physical climate risk analysis carried out in 2022 (see Section 3.2.1.1). The minimum safeguards were screened at a Group level to ensure alignment with the four key topics: Human rights, bribery and corruption, taxation and fair competition.

The sustainable development teams in consultation with the Finance Department obtained the corresponding eligible and aligned Capital expenditures (CapEx) and Operating expenditures (OpEx). These results were verified by the EU Taxonomy project coordinator and discussed with the interested parties. Once approved, these amounts collected in local currency were uploaded onto the Group’s financial consolidation system to guarantee a coherency with the Group’s consolidated financial statements and published in the Non-Financial Performance Statement Taxonomy annex I, II and III (see Section 3.5.5).

For over 75 years, BIC has been creating ingeniously simple and joyful products that are a part of every heart and home. The hard work and dedication of the Group’s team members from across the globe has been key to the success as a business.

The Group’s workforce of 15,000 people supports operations in more than 160 countries, with approximately 4 million sales outlets worldwide. This makes BIC a truly global business, reflecting the diverse backgrounds and experiences of the communities where BIC’s products are available globally.

As the Group perpetuates its vision of bringing simplicity and joy to everyday life for consumers in collaborative, sustainable and responsible ways, the BIC Human Resources team, along with senior leaders, continues to foster a shared corporate culture that is deeply rooted in our BIC Values, philosophy and rich history.  All team members clearly understand how their work directly influences the Group’s organizational success as the team guide BIC into the future. 

In 2022, BIC prioritized several key initiatives to help align its organization with the Invent The Future strategy and Horizon Plan, including:

As BIC continues to re-imagine everyday essentials, BIC recognizes the importance of building highly skilled, capable teams. At BIC, self-starters, problem solvers and innovative thinkers come together to reach our consumers in new, sustainable and responsible ways.

For the year ended December 31, 2022 BIC had 10,580 permanent team members, 781 fixed-term contracts (FTC) and an average of 4,441 temporary staff in 45 countries.

Learn more about how BIC has built diverse, collaborative and results-driven teams in 2022 and continues to evolve its people-focused approach to business, below.

Aligned with the Invent The Future strategy, BIC continued to focus on the continued transformation of the business and ensuring the right organization is in place to support the growth ambitions outlined in the Horizon Plan.

To achieve these goals, the Group’s global workforce will need to adapt to evolving business processes and meet consumer needs. Now, more than ever, it is critical that BIC’s team members come together to bring their unique perspectives, experiences, and ideas. In 2022, the workforce increased globally, further reflecting the communities where our products are available worldwide. 

Now, more than ever, bringing the best and brightest minds to BIC has become mission critical. As the Group continues its business transformation, the Recruitment Center of Excellence (COE) works to support the expansion of its teams worldwide.

With team members sitting across the globe, the Talent Acquisition team continues to reinforce best-in-class recruitment techniques/processes and has expanded the breadth and depth of their work with the key initiatives outlined below, in 2022:

• ●Crafted and launched Employee Value Proposition (EVP) both internally and externally via the Group’s careers website and blog, after conducting leadership and recruiter interviews and solicited employee feedback globally via surveys, to provide messaging framework to position BIC as an employer of choice with candidates and further engage current team members.
• ●Launched a new, global Applicant Tracking System (ATS) and Candidate Relationship Management (CRM) software (SuccessFactors), to manage recruitment activity, streamline application and screening processes, feedback solicitation and increase pipelining capabilities. In addition to process improvement, this new system offers increased visibility into data and key metrics. 

• ●To continue to position BIC as an engaged employer, the HR teams continue to post content and respond to reviews on Glassdoor. BIC’s overall score averaged at 4.1 out of 5 for the year, a 2.5% increase from 2021. 
• ●In the spirit of continuously improving upon the recruitment process, HR teams measure satisfaction and effectiveness through several team member surveys, specifically focusing on the experiences of candidates, new hires and hiring managers. They received an average net promoter score of 56, falling into the “Great” category for satisfaction.
• ●BIC continued to support the development of the next generation entering the workforce through university recruiting efforts for internship in the United States and Latin America and apprenticeship programs in Europe. The Group provides students with real-world world experience and bolsters interest in full-time career opportunities with BIC post-graduation.
• ●To bolster team comradery and focus on continuous improvement, Talent Acquisition leadership recognizes team members quarterly with “Recruiter of the Quarter” and “Recruiting Team of the Quarter” awards. Team members use these sessions to share best practices and key learnings from their peers.

BIC began simply and humbly – with a vision and a pen. The intent was to address an unmet consumer need: smooth, effortless writing that was both affordable and could free the hand for Creative Expression. The result was BIC making the art of writing accessible for all. By providing millions of people with access to a high quality, everyday item offering significant Value, the BIC® Cristal® ball pen became a symbol of accessibility for people everywhere.

After creating a revolution in writing, BIC went on to innovate in pocket lighters, setting new, ever-improving standards for enhanced consumer safety. BIC continued its innovation journey in Shavers, bringing convenience and ease of access to the category.

At the heart of BIC is great pride in enhancing the daily lives of consumers with simple, well-designed solutions for everyday use. We advocate for sustainability through smart design, the long life and versatility of our products, and our philosophy of minimalism. We strive for excellence in all aspects of our operations, from ensuring precision manufacturing and the highest safety standards, to delivering high quality products, with a focus on customer satisfaction.

The entrepreneurial family heritage has created a foundation for team members to re-imagine consumer solutions. They are passionate about engaging with consumers and customers and honoring the diversity of the communities we serve. As a result, our brand is universally recognized and trusted as a beacon of reliability and value.

BIC’s ambition is to create a sense of ease and delight in the millions of moments that make up the human experience. It is this passion for bringing simplicity and joy to people worldwide that drives the team members each day.

BIC reimagine everyday essentials, designing products that are part of every heart and home.

BIC believe we positively impact the world by offering sustainable solutions that respect the planet through smart design and the creation of products that last.

BIC creates high quality, safe, affordable, essential products, trusted by everyone.

BIC continues to reinforce its Vision and Values as well as the Horizon Strategy through a variety of communications channels. Live and virtually recorded Town Hall meetings as well as our intranet platform provide team members with business and market updates on a timely basis. In April 2022, the Horizon Leadership Summit, hosted in Barcelona, provided 100 leaders from around the world with the tools and resources needed to fully understand their role in the successful execution of the strategy, creating a true OneBIC feeling after two years of limited in-person exchanges due to the pandemic. The leaders present in Barcelona have taken the materials from the summit and deployed the learnings and the knowledge throughout the organization, with regional and local summits being held around the world.

As part of the continued commitment to the team members, Vision and Values, BIC reintroduced the“BIC Team Member Recognition Awards.” This new annual recognition program was launched in 2021 to shine the spotlight on the incredible achievements and successes from our teams around the world.

Award categories were inspired by objectives associated with the Horizon Plan, putting strategy and the team members who are executing against it front and center. The awards fall into two categories:

• Group Excellence Awards:
  • ●team members around the Globe nominated over 300 of their colleagues for leadership consideration across the following awards: BIC Leader Award, Rising Star Award, Global Citizen Award, and Business Partner Award.
  • ●leadership nominated and selected winners for the OneBIC Team Award;
• Functional Capability Excellence Awards: Leadership across the Company selected the winners for the Country of the Year: E-commerce, Country of the Year: RGM, Customer-driven Supply Chain, Procurement, Plant Safety, Plant Efficiency, Free Cash Flow, M&A/New Business Partnership

For the Group, workplace safety means ensuring the physical and mental well-being of team members by preventing accidents and occupational diseases.

For BIC, the health and well-being of team members also means reducing the incidence of work-related diseases, primarily musculoskeletal disorders and psycho social risks (PSR) such as stress. BIC keeps a close watch on these issues and constantly strives to reduce all forms of job-related suffering.

To this end, in conjunction with the above-mentioned approaches, programs to promote well-being at work are coordinated Group-wide and rolled out locally as required by each facility.

[NFPS Risk 4] BIC has identified “health-safety in the workplace” as one of the major CSR risks resulting from its operations. BIC’s operations, both industrial and commercial, expose workers to various occupational risks (physical, chemical, psychosocial, biological, ergonomic) that differ from function to function (headquarters, factories, sales force). Managing this risk is an opportunity to position BIC as a desirable employer through an ambitious health and safety policy.

For the Group, a commitment to improving safety in the workplace is key to team member engagement. This helps build loyalty.

The information on health and safety in the workplace presented in this chapter covers all the Group’s operations.

Safety in the workplace is a fundamental priority for BIC. The “Writing the Future, Together” program embodies this commitment by targeting zero accidents at all BIC facilities by 2025.

The Group uses all available means:

• ●health and safety management;
• ●ongoing improvement of working environments;
• ●working time arrangements;
• ●raising awareness of safety issues.

Inspired by the “Vision Zero” approach developed by the International Social Security Association(23), the Group is developing a program that incorporates health, safety and well-being at work, at every level. The goal is to achieve zero sick leave days due to on-site accidents for everyone who works for BIC.

This is based on the ISSA’s Seven Golden Rules:

• take leadership – demonstrate commitment;
• identify hazards – control risk;
• define targets – develop programs;
• ensure a safe and healthy system – be well-organized;
• ensure safety and health in machines, equipment and workplaces;
• improve qualifications – develop competence;
• invest in people – motivate by participation.

This “zero accidents” goal requires extra effort on the Group’s safety culture and policies across all operations, and includes the implementation of specific local actions.

BIC adopts a Health & Safety program that allows it to guarantee a working environment that protects the physical integrity of team members. In keeping with its Environment, Health & Safety (EH&S) Policy, BIC strives to prevent or at least reduce health and safety risks for its team members, subcontractors and those living or working near its production facilities.

The Group rolls out safety management systems at its production facilities. Each facility has an EH&S manager in charge of the roll-out of the EH&S Policy and following up efforts to reduce health and safety risks faced by team members. They report to the industrial directors.

Within the Global Supply Chain business unit, the Group’s health-safety program is built around a number of tools that continue to evolve in line with the organization's needs:

• ●the “e-EHS Suite” platform, which monitors and manages workplace accidents (evaluating risks, recording and documenting accidents, defining corrective action plans), allowing each entity in the organization to define an effective action plan;
• ●safety reporting extended to all BIC facilities (factories and headquarters);
• ●an Environment, Health & Safety reference system, also called the EH&S maturity reference system;

• ●safety watch (behavioral observation visits) are conducted in factories. Carried out with the team members, these visits consist of questioning unexpected behavior in a spirit of ongoing improvement and dialogue;
• ●Global Safety Call, a monthly conference call with the factory directors, their EH&S managers and the management team.

In 2022, the Group identified two key focus areas to achieve the Zero Lost Time Incidents target by 2025:

• ●setting up a machine safety level threshold across all sites, and;
• ●increasing the safety culture maturity among our team members.

Based on these key focus areas, the Group launched several initiatives in 2022, including:

• ●performing internal audits by the central Environmental Health and Safety (EH&S) team in the vast majority of the facilities. The audit topics were specific per site, based on checklists communicated in advance. Detailed reports were shared with all stakeholders at the end of the audit. The action plan progress is monitored on monthly basis;
• ●updating the Group’s EH&S policy, signed by the CEO and shared to all facilities;
• ●launching a key performance indicator campaign to encourage team members to dynamically report unsafe events. Thanks to this campaign which began in July 2022 and lasted until September the Group saw a decrease of 33%(24) in incidents recorded versus the same period last year;
• ●reestablishing ISSA’s Seven Golden Rules, which are customized to each facility’s major hazards and risks and woven into management responsibilities;
• ●organizing safety days to engage and train team members on EH&S topics;
• ●reviewing critical standards such as incidents investigation, reporting and change management;
• ●sharing lessons and best practices in the EH&S SharePoint which is open to all internal stakeholders;
• ●choosing certain reported incidents as examples to be shared among all facilities to promote knowledge sharing and implementation of key measures when required;
• ●organizing safety stand downs to raise team members’ awareness about serious incidents;

• ●instituting monthly training sessions for EH&S teams on advance technical subjects;
• ●inviting external stakeholders to train EH&S team members on machine safety as well as to discuss relevant EH&S topics;
• ●implementing machine safety assessments at all facilities;
• ●prioritizing action plans to improve machine safety across all facilities.

Across all BIC facilities, accidents resulting in lost work time for BIC team members are mainly caused by same-level falls and the handling of materials and machines. In 2022, BIC recorded 60 lost-time injuries for BIC paid employees and 10 more for external temporary workers, while 50 facilities had 0 accidents. These results show no decrease in the number of incidents for BIC employees this year and a significant increase of the incidents where external temporary workers are involved.

The incident rate for BIC employees and temporary workers was 2.09, while the severity rate remained stable  at 0.10 from 0.11 one year ago.

The development and implementation of actions plans continued in 2022 with a view to an increased safety culture and a decrease in this rate. A Safety Focus Action Plan for the Top 5 Factories was executed in 2022 which included:

• ●analyzing the incidents in 2022, especially those with high number of lost workdays, and seek patterns;
• ●based on the findings of the incidents analysis, decide on focused actions, prioritizing those that eliminate the risk;
• ●set targets, monitor, and act upon the leading indicators (first aid cases, near misses, behavior based safety);
• ●communicate strongly the importance to the teams and urge leadership teams to drive by example.

Most of the occupational diseases, which so far have only been monitored in France, are related to musculoskeletal disorders.

Well-being at work is defined by the World Health Organization (WHO) as “a state of mind characterized by a satisfactory harmony between the skills, needs and aspirations of the worker on the one hand and the constraints and possibilities of the work environment on the other”.

The Group strives to build a collaborative, performance-oriented environment while preserving the health and well-being of team members in the workplace.

This has led, in particular, to the development in some countries of agreements with trade unions based on principles such as work-life balance.

The Group is actively involved in preventive actions in terms of safety, occupational health and well-being such as preventing and monitoring occupational diseases, psychosocial risks, etc., and relays public health prevention campaigns (Pink October, World Mental Health Day, etc.).

For example, during the month of October for “Pink October” in France, actions, webinars, video Yoga classes took place to raise women’s awareness of breast cancer screening.

On October 10, 2022, for World Mental Health Day, great initiatives were set up in some countries. In Australia and New Zealand, with their partner for two years, Smiling mile, employees were invited to take a break to imagine and create using our product “BIC Intensity”. In Kenya, boxes with anti-stress products were distributed to employees.

BIC East Africa, conducted medical checkups for all team members as well as provided a toll-free counselling line linked to the local medical insurance. This facility is subscribed to ICAS, an international counselling service provider. This facility offers medical insurance to team members and their dependents. They established a benevolent fund that is run by team members to support them in the event of the loss of a loved one, in addition to a benefit geared to ease the financial burden on team members when they lose a dependent or a parent.

An Employee Assistance Program (EAP) has been in operation for several years in the United States (at BIC CORPORATION), in France (the PASS program), in the Asia-Pacific region and in Latin America. Set up for the benefit of BIC team members and their families, this service offers a 24-hour helpline plus the possibility of face-to-face meetings with professionals.

BIC's absenteeism rate remains low, and we continue to actively monitor data across all sites in order to adapt action plans to local situations.

At BIC, development goes beyond just training. The team members are empowered to take ownership of their career paths and have access to the opportunities and resources they need to grow.

[NFPS Risk 9] BIC has identified risks related to the skills of its team members among its primary CSR risks. This was especially true of the most experienced team members. BIC relies on the specific skills of its experienced team members, in particular in industrial operations. The loss of experienced team members could slow the Group’s development plans and prevent the Group from implementing its strategy. For BIC, managing these risks is an opportunity to develop programs that favor the employability of our team members within and outside the Company.

In 2022, BIC implemented a new approach to learning at BIC. The Group is delivering focused capability growth by creating simple, engaging and personalized experiences for its team members through a variety of mediums (i.e., e-learning, virtual instructor-led training, programmatic learning and learning journeys). All offerings are aligned with business priorities and team member development needs. The development programs strive to help team members build community on a global scale, put their learnings into practice and empower participants to share their unique experiences and perspectives with one another.

The People & Culture team continued to re imagine learning at BIC. The new learning strategy is driven by the transformation of the organization and team member expectations of development opportunities. Several of the key initiatives for 2022 are highlighted below:

• ●designed and launched BIC’s new learning ecosystem for all team members. The launch of a new learning experience platform (Degreed) in combination with a new learning management system (SuccessFactors), provides team members the opportunity to build the right skills with a skills profile that they own, learning opportunities tailored to their goals and interests, and content curated (from millions of resources) to boost learning in the flow of work;
• ●designed and launched our new Signature Series:

• ●continued the launch of several functional training courses designed by internal and external subject-matter experts to develop Horizon capabilities. Several interactive courses were delivered in the areas of e-Commerce, Revenue Growth Management, Negotiation, Finance and Marketing; 
• ●continued the Group’s Global Mentoring Program. This program is intended to accelerate team member growth through a structured Mentor-Mentee development experience, train and prepare key talent on effective ways to be a successful mentor and provide a structured Mentor-Mentee relationship. This continues to be a staple program, driving capability growth and peer to peer feedback;
• ●the Group Commercial Capabilities CoE designed and launched the Commercial Academy in 2022. The pilot program provided 140 plus members of our salesforce (all levels) with the best-in-class tools and resources they will need to effectively contribute to our Horizon Strategy, specifically focused on growth insights, selling tailored solutions and executing with excellence; 
• ●continued to implement several upskilling programs to meet the development needs of our manufacturing population. Programs focused on four main priorities: reinforcing the importance of Environment, Health & Safety (EHS) with preventative measures and training, deploying lean methods (value stream mapping/six sigma) to increase efficiency and engagement, supporting the digital transformation of our processes, and launching processes and tools to increase workforce flexibility and to better manage production activity.

The total number of training days increased from 2021 due to the addition of several programs aligned to our continued commitment to the professional development of our team members globally. 

Talent Review sessions were facilitated by the People and Culture Team in partnership with Human Resource Business Partners (HRBP) in every business unit across every function. The sessions focus on effective and consistent identification of critical roles and High Potential team members and ultimately stronger emphasis on aligning talent to the roles that are most critical for business success. Analysis of the Group’s bench strength and development needs for BIC’s High Potential team members are key outputs that directly impact the priorities of the Group’s learning and development strategy. This visibility of BIC’s High Potentials has fostered movement of the best talent in roles that drive the most value.

The remuneration policy at BIC is designed to recognize performance, rewarding team members with fair and competitive remuneration, in line with market conditions.

BIC proposes a coherent compensation and benefits policy that is designed to attract, motivate and retain our talent by being:

• ●Competitive and equitable

The Company deploys a policy across all team members that combines both market competitivity and internal equity. Internal equity is measured using a global classification system.

Comprehensive salary survey data from specialized consultancy firms is used so that our team members receive a total remuneration package in line with the market in which they work.

BIC ensures that all entities respect local legislation with regard to minimum salary levels as defined either by law or by collective bargaining agreements.

Gender pay equity is considered a priority across the Company, and specific attention is paid to establishing pay equity in areas of the organization where a gap is identified. During the annual salary review process, the regional and business management teams are encouraged to pay particular attention to the topic, and a portion of the budget is dedicated to promoting diversity and ensuring equitable pay for a same level of responsibility.

• ●Short-term and long-term incentives
• Recognizing both individual and the collective performance of the teams is an essential part of our total remuneration policy.
• Short-term incentives exist in two forms:
  • ●monthly or quarterly incentives for the sales force, based on both financial and non-financial criteria, helping to drive profitable growth in all areas of the world with a motivated sales team;
  • ●an annual short-term incentive plan for all non-sales, management level (cadre) team members across the world. Payout is based on collective financial criteria and individual performance objectives, designed to drive the realization of the Horizon strategy. The financial objectives defined at Group level, and cascaded into the regions, are identical to those used to calculate the annual short-term incentive of the Chief Executive Officer, and the Executive Committee.
• The long-term incentive plans to which all senior managers are eligible are designed with a 3-year vesting period and ambitious objectives, driving the long-term success of the Company by focusing on Free Cash Flow, Innovation and Sustainability.
• Recognizing the contribution of all team members to the success of our Horizon transformation journey, the Board of Directors, based on the recommendation of the Management Team, granted in October 2021 five free shares to over 11,000 team members worldwide, giving them the opportunity to share in the value that will be created by the future success of the Company (Plan Sharing Horizon).
• The free shares will be delivered in October 2023, at the end of the two-year vesting period decided at the time of grant.
• ●Benefits
  • ●Health care and life insurance
  • At BIC, health care and the protection that we provide our team members and their families is a priority. For this reason, in 2022 a worldwide audit of existing plans and coverage was undertaken. The audit allowed the identification of areas of improvement on these topics, and in 2023 the action plans will be quantified for implementation over the period 2023-2025.
  • ●Wellbeing in the workplace
  • The Company seeks to provide a collaborative workspace for its team members, turned towards performance yet contributing to the overall well-being of our team members in the workplace.
  • This orientation has led, in certain countries, to the signing of agreements with the employee representatives, covering topics such as work-life balance, remote working and other related topics.
  • Around the world, the Company actively engages in preventive action plans around health and safety and well-being., including workshops on the prevention of work-related illness, managing stress and ensures that any government campaigns are actively relayed to our team members. In France, for example, Pink October saw team members being offered a month of webinars on the prevention of breast cancer, alongside on-line yoga classes and other on-site sporting activities. World Health Day, celebrated on October 10, saw local initiatives in several sites around the world. In Romania, awareness workshops were held, Australia and New Zealand continued their 2 year partnership with Smiling Mile and invited team member to take some time out to imagine and be creative with our BIC Intensity products. Our Kenyan team distributed a goodies box with anti-stress products to team members.
  • These initiatives and more will be relayed at a global level in 2023, with the intention of creating a regular calendar and enhanced visibility around well-being for all our team members.

BIC is a truly global business, with a workforce reflecting the diverse backgrounds and experiences of the communities where its products are available worldwide.

As stated in the BIC Code of Conduct, the Group values diversity, equity and inclusion (DE&I) and does not tolerate discrimination and harassment based on grounds such as:

• ●age;
• ●race;
• ●religion;
• ●color;
• ●ethnicity;
• ●national origin;
• ●disability;
• ●sexual orientation;
• ●gender;
• ●gender identity;
• ●gender expression;
• ●marital status;
• and any other characteristics of which legal protection is afforded by local law.

The Group wants to create an environment in which employees, suppliers, business partners and its communities feel valued and respected. As an organization, BIC looks to be a positive change agent throughout the many communities it operates in across the globe.

At BIC, cultural and individual diversity is considered an essential part of team culture, which is why the Group strives to foster an inclusive environment for all. In its continued commitment to diversity, equity and inclusion, BIC seeks to:

• ●take action to ensure that BIC teams reflect as closely as possible the diversity of the Group’s customers and consumers around the world;
• ●welcome our team members, giving them a sense of responsibility through a culture of inclusion founded on practices of responsible leadership and management;
• ●encourage the diversity and dynamism of its teams as drivers for innovation and a key factor for its success.

The Diversity, Equity & Inclusion Credo, which was signed by the CEO and the CHRO in May 2019, reinforces BIC’s commitment to Diversity, Equity, and Inclusion by appreciating that the blending of different backgrounds, experiences and perspectives in a collaborative environment which values open perspectives, will make the organization stronger and better prepared for the challenges ahead. It is shared by all the Group’s entities worldwide and has been translated into the main languages used in the Group.

As part of its Diversity, Equity & Inclusion strategy, BIC has made a number of declarations, including:

• ●signing the UN Standards of Conduct for Business “Tackling Discrimination against Lesbian, Gay, Bi, Trans, & Intersex People(25);
• ●social media posts from the CEO and CHRO to recognize Global Pride Month 2022 and International Women’s Day;
• ●in January 2021, Gonzalve Bich, BIC’s CEO, joined the “CEO Action for Diversity and InclusionTM” (26), the largest CEO-driven business commitment of its kind. By taking this pledge, Gonzalve Bich is committing to take action to ensure the Company’s culture celebrates and welcomes diverse perspectives and experiences and encourages open conversations about DE&I.

The global DE&I strategy has set a series of strategic objectives and KPIs to measure progress in the areas of belonging, attraction, promotion and influence:

Belong: create a culture where all team members feel comfortable that they can bring their full selves to work. Notable achievements in 2022 include:

• ●launch of full engagement survey measuring engagement, inclusion, trust, and manager effectiveness. All business units have developed action plans to address key areas and improve participants' sense of belonging, engagement, etc.;

• ●launched and promoted a new Employee Resource Group toolkit to encourage the formation of networks of team members that share common characteristics and backgrounds. These groups advocate for themselves, and in addition to fostering their own professional development, are a valuable resource to BIC, providing information about their identities, undertaking community outreach, opening new networks for recruiting, and serving as a visible sign of BIC’s commitment to a diverse, equitable and inclusive workplace. As a result 5 new employee-led resource groups (ERGs) have been formed to promote local DEI initiatives in North America:

• ●150 plus team members from the Allyship Program/ERGs participated in the deployment of the Group’s DE&I strategy, by organizing local events to celebrate several diversity days such as Black History Month, International Women’s Day, Pride Month, Veterans Day and many others. Team members across the globe had the opportunity to participate in local and global events, such as speakers series, panels, training, etc.;
• ●conclusion of the three-part Inclusive Leadership Series for all level 4 and above team members that launched in 2021. In the first workshop, “Conscious Inclusion”, the participants built a shared understanding of inclusive leadership, explored ways to lead teams toward conscious inclusion and to develop a greater sense of belonging and trust at BIC. The second workshop explored the role leaders play to effectively influence and establish an inclusive culture at BIC. The third and final workshop, focused on further building resilience as leaders, boosting optimism in teams and encouraging activism at BIC and beyond.

Attract: increase representation of women and other underrepresented minorities (as defined by country leadership teams) beginning at entry level through external recruitment and internal promotions. Notable achievements in 2022 include:

• ●design and launch the new employment brand that highlights key attributes that will attract and retain female talent;
• ●to mitigate bias when searching LinkedIn for recruitment sourcing initiatives, the Group has chosen to hide the names and pictures of potential candidates when sourcing the site;
• ●talent acquisition team members participated in an Unconscious Bias/Stereotype training to reinforce key learnings from 2021 trainings on eliminating bias from hiring processes.

Promote: increase diversity in Director and above roles to better represent the workforce focusing on female representation in level 4 and above positions to 40% in 2027. Notable achievements in 2022 include:

• ●launch of Human Capital Management System – SuccessFactors – to improve its talent identification and management process and the data to support these processes;
• ●57% of all hires in 2022 were female;
• ●delivered gender balanced slate of candidates in level four and above positions;
• ●reached 32% female representation in level 4 and above leadership roles by continuing to attract and retain female talent.

Influence: improve visibility, demonstration and celebration of BIC’s commitment DE&I externally. Notable achievements in 2022 include:

• ●continued participation in the “Break the Ceiling Touch the Sky Summit” in New York (U.S.), India and Dubai which offered companies an opportunity to learn DE&I best practices and connect with women leaders from around the world;
• ●our  Human Resources Director for India, our Senior Manager of Marketing for West Africa & Nigeria, and our Human Resources Director for MEA were recognized by the House of Rose Professional as the “Most Inspirational Women in Leadership” across Asia, Africa and the Middle East; 
• ●additionally, our General Manager for Cello, General Manager for the Middle East and our Group Commercial Officer were each featured on the House of Rose Professional's “Break the Ceiling Touch the Sky” 2022 list of Male Champions for Gender Equality; 
• ●senior leader involvement and speaking engagements in Network of Executive Women, Break the Ceiling Touch the Sky and Enactus.

BIC strives to use all the means available to engage in dialogue with its team members. In this spirit, it sets up the initiatives on listening to team members as mentioned in Section 3.3.1.6. To maintain its team members’ engagement and remain attentive to their expectations, the Group strives to cultivate a high-quality social dialogue, either directly with the management or with the team members themselves, their representatives, or labor union representatives at unionized sites.

In every country where the Group has operations, it complies with all applicable collective agreements. In addition, each subsidiary strives, insofar as its resources allow, to improve working conditions by:

• ●offering wages above the legal minimums;
• ●through superior team member benefits;
• ●through investments to improve the working environment.

The topics discussed in the negotiations are related either to local obligations or to the previously mentioned management points. For example, many mechanisms to promote safety and health in the workplace and new working conditions like remote work have been initiated through social dialogue.

The following table gives a few examples of such agreements.

BIC strongly believes that in order to succeed as a business, the Company must uphold the strongest standards and principles at all times – acting responsibly, with the planet, society and future generations in mind.

[NFPS risk 6] BIC has identified risks related to corruption among its main CSR risks. The risk of corruption and unfair practices can lead to legal actions against the Group and major consequences in terms of reputation and attractiveness. Assessing, mapping and managing this risk is an opportunity for BIC to further develop its culture of ethics within the Group.

This follows the methodological recommendations of the Global Reporting Initiative (GRI). The GRI indicators used herein are included in the cross-reference table of ESG information on page 331.

In accordance with Articles L. 225-37 et seq. and L. 22-10-9 and L. 22-10-10 of the French Commercial Code, this chapter deals with the conditions under which the work of the Board of Directors is prepared and organized, including the organizational principles that guarantee a balance of powers. It also describes the components of the remuneration of corporate officers, including the remuneration policy in accordance with the above-mentioned provisions of the French Commercial Code, as well as the transactions in BIC shares declared by corporate officers in 2022.

This chapter has been prepared with the support of the:

• ●Remuneration Committee;
• ●Nominations, Governance and Corporate Social Responsibility (CSR) Committee; and
• ●Audit Committee.

It includes the Corporate Governance Report referred to in Article L. 225-37 of the French Commercial Code, as approved by the Board of Directors on February 14, 2023.

The Corporate Governance cross-reference table (page  Cross-reference table of the corporate governance report) indicates the sections of the Universal Registration Document corresponding to the sections of the Corporate Governance Report that do not appear in this chapter.

According to the “comply or explain” rule provided for in Article L. 22-10-10 of the French Commercial Code and Article 28.1 of the AFEP-MEDEF Corporate Governance Code, Société BIC refers to the provisions of the AFEP-MEDEF Corporate Governance Code.

Since its creation, the Company has been a limited liability company ("société anonyme") with a Board of Directors. Its strong family shareholdership allows it to evolve and adapt, to any new challenges and requirements in connection with its stakeholders. The composition of the Board of Directors reflects this family heritage, through the representation of the family shareholding and the presence of Independent Directors in compliance with the principles of corporate governance.

The Group’s history is deeply rooted in an entrepreneurial spirit. This has led to inventive expansion into new categories and dynamic expansion into new regions. We consider entrepreneurship to be in our DNA. It is vitally important for the Board and the Chief Executive Officer to foster that spirit and keep it alive for future generations.

The Board works with the Chief Executive Officer to build a vision and a set of expectations and guidelines. This includes setting our growth aspirations, determining what lines of business we should be in, setting our margin expectations, and determining how to pursue our goals.

The Chief Executive Officer and his team construct the long-term strategy and annual plans to achieve these goals. In turn, the Board reviews these plans, challenges them, and ultimately approves them. Upon approval, the Board becomes jointly accountable with the Chief Executive Officer for the execution of the Company’s long-term strategy.

The purpose of BIC is to create high quality, safe, affordable, essential products trusted by everyone. Our Vision is to bring simplicity and joy to everyday life. Our Values are Integrity, Ingenuity, Responsibility, Sustainability, Simplicity and Teamwork.

The Board is also responsible for monitoring the performance of the Company. Establishing expectations and scope of activity is one of the most important Board functions. It is the Chief Executive Officer’s responsibility to provide the necessary information, analysis, and insight for the Board to effectively carry out its duties.

The information includes:

• ●macro-economic trends;
• ●competitive environment;
• ●new technologies;
• ●potential acquisitions;
• ●Analyses of strengths, weaknesses, opportunities, and threats (so called “SWOT” analyses);
• ●ROI projections; and
• ●retrospective analysis.

Our behavior is at all times consistent with the values and the DNA of BIC: responsibility, simplicity, agility, entrepreneurship, anti-bureaucratic spirit, quick decision-making, long-term thinking, measured risk taking, respect of the strong family heritage and the Company’s code of conduct, belief in the Brand, product-focus, manufacturing excellence, low production costs, consistent high quality, solid balance sheet.

Since 2018, Chair of the Board and Chief Executive Officer are two separate functions. Gonzalve Bich holds the position of Chief Executive Officer since May 16, 2018. His mandate was renewed following the Annual Shareholders’ Meeting of May 18, 2022. Succeeding John Glen in May 2022, Nikos Koumettis was appointed by the Board as Non-Executive Chair on the same date.

The Chair of the Board is in charge of leading the Board and its Committees, as well as for its governance and for ensuring that they operate in accordance with their mission. The Chief Executive Officer oversees business operations and reports to the Board of Directors. The responsibilities of the Board of Directors, the Chair and the Chief Executive Officer are described in more detail in § 4.1.4.1 – Relationships between the Board and General Management (§ Limitations on the powers of General Management).

The Executive Committee reports to the Chief Executive Officer. The complete organization chart of the Group’s Executive Committee is presented in § 2.4.3.2 – The Executive Committee.

Since Chair of the Board and Chief Executive Officer are two separate functions, the Board’s Internal Regulations(1) do not require the appointment of a Lead Director. Nevertheless, if necessary, and if or when the Chair does not meet all the independence criteria recommended by the AFEP-MEDEF Corporate Governance Code, the Board may decide to appoint a Lead Director for the duration of the non-independent Chair’s term of office. The Lead Director is then chosen from among the Independent Directors.

In 2021, considering that John Glen, interim Non-Executive Chair, no longer qualified as an Independent Director, the Board of Directors decided to appoint Elizabeth Bastoni as interim Lead Independent Director. 

At its meeting on May 18, 2022, the Board of Directors appointed Nikos Koumettis as Chair of the Board. Considering the new governance, and in particular the fact that Nikos Koumettis is an Independent Director, the Directors no longer deemed the function of Lead Director necessary and terminated the mandate of Elizabeth Bastoni as Lead Director at the Board Meeting of May 18, 2022.

The Company considers that its practices are compliant with the recommendations of the AFEP-MEDEF Corporate Governance Code in all respects.(2)

The Board of Directors follows the general guidelines, drawn up within the framework of the recommendations of the AFEP-MEDEF Corporate Governance Code, for the determination, review and implementation of its compensation policy.

In accordance with the French Commercial Code (16), this section of the report of the Board of Directors details the remuneration and benefits provided to Corporate Officers for or during FY 2022, as well as the applicable remuneration policy.

At the 2023 Shareholders’ Meeting, shareholders will be asked to vote on the following resolutions:

• ●approval of the information on the remuneration of Corporate Officers for 2022;
• ●approval of the remuneration of Gonzalve Bich, Chief Executive Officer, for 2022;
• ●approval of the remuneration policy for Executive Corporate Officers for FY 2023;
• ●approval of the remuneration of John Glen, Chair of the Board up to May 18, 2022;
• ●approval of the remuneration of Nikos Koumettis, Chair of the Board from May 18, 2022;
• ●approval of the remuneration policy for the Chair of the Board for FY 2023;
• ●approval of the remuneration policy for Directors for FY 2023;
• ●approval of the envelope for the compensation to be allocated among members of the Board of Directors for 2023.

The remuneration policy for Corporate Officers is determined by the Board of Directors upon the recommendation of the Remuneration Committee and following the principles and criteria in the AFEP-MEDEF Code of Corporate Governance. The remuneration policy follows the Code in all aspects.

The Board of Directors ensures that the remuneration policy is directly aligned with the Company’s overall strategy and is in line with Shareholders’ interests to support the Company’s performance and competitiveness over the medium and long-term. Social and environmental issues related to the Company’s business are also taken into account.

The remuneration policy for Executive Corporate Officers of SOCIÉTÉ BIC is based on the same total rewards philosophy that applies to all BIC Group team members and the framework criteria set out in the Code of Corporate Governance. The policy is based on the principles of comprehensiveness, balance between the remuneration components to ensure pay for performance, comparability, consistency, clarity of the rules, and proportionality. The Chief Executive Officer is currently the only Executive Corporate Officer in activity, but the remuneration policy described in this document would apply to any future Executive Corporate Officer that could be nominated.

FY 2022 Net Sales increased by 21.9% at actual currencies, 11.0% on a comparative basis and 13.8% at constant currencies. All divisions and regions contributed to the growth. Main drivers included volume increase, favorable mix, and the successful implementation of price increases in all regions as expected.

FY 2022 Gross Profit margin decreased by 2.5 points to 48.3% as reported, and by 2.8 points excluding Inkbox. Input cost inflation (-5.7 pts) and unfavorable FX (-0.8 pts), mainly EUR/USD hedging rate (-1.1 pts), were partially offset by favorable fixed cost absorption (+1.5 pts), pricing (+2.1 pts), and the positive contribution of Inkbox (+0.3 pts).

FY 2022 adjusted EBIT margin was 14.0%, a decrease of 1.3 pts compared to FY 2021 as reported and 0.6 pts excluding the impact from 2022 acquisitions. Net Sales operating leverage (+4.3 pts) was more than offset by Gross Profit margin decrease (-2.8 pts), the increase in Brand Support (-0.8 pts), OPEX and others (-1.3 pts), and the negative impact from 2022 acquisitions (-0.7  pts). 

Total input cost inflation (including raw material, sea and air freight costs and electricity prices) weighed 105 million euros on FY 2022 adjusted EBIT. The Full Year impact was more than offset by volume increases, price adjustments, and cost savings. 

As a result, FY 2022 Adjusted EBIT was 311.7 million euros, a 11.4% increase versus prior year.

FY 2022 non-recurring items included:

• ●5.2 million euros  related to acquisition costs, and 2020 Rocketbook and Djeep acquisitions' price adjustments;
• ●3.0 million euros related to an impairment on Ukraine operations.

• Brand support, OPEX and other expenses include Net Sales operating leverage impact. Other expenses include notably freight & distribution and R&D.

FY 2022  finance  revenues/costs decrease was mainly due to Argentina hyperinflation impact in Q4 2022.

FY 2022 effective tax rate was 28.1% vs. 29.8% in 2021 and 2022 Net Income Group share stood at 208.9 million euros versus 314.2 million euros last year.  2021 Net Income Group Share benefitted from the positive impact of BIC’s Clichy headquarters' sale (France).

At the end of December 2022, the Group’s Net Cash position stood at 359.9 million euros. Net Cash from operating activities was positively impacted by a strong operating cashflow of 428.0 million euros. The increase in working capital was due to higher inventory levels, of which 45 million euros of input cost inflation, partly offset by efficient cash collection of Trade Receivables and increase in Trade Payables. Net Cash was also impacted by the acquisitions of Inkbox (February 2022), Tattly (July 2022), and AMI (September 2022). 

The Board of Directors of SOCIÉTÉ BIC proposes the distribution of dividends primarily based on:

• ●Group earnings;
• ●its investment policy;
• ●balance sheet strength; as well as
• ●comparisons with industry peers.

BIC does not foresee a material change in this dividend distribution policy.

At the Annual Shareholders’ Meeting on May 16, 2023, the Board of Directors will propose 2.56 euros of Ordinary Dividend per share for 2022. The Dividend pay-out ratio was 50% for 2021 and will be 50% for 2022.

The dividends paid for the last three fiscal years were as follows:

Regarding industrial investments, BIC has split its manufacturing activities into two areas for several years:

• ●first, in continuous quality improvement for each production line, including ongoing investments in manufacturing processes and new technologies;
• ●second, in the specialization of focused production sites.

In 2006, it opened a distribution subsidiary in Turkey, and acquired PIMACO, Brazil’s leading manufacturer and distributor of adhesive labels.

In December 2008, BIC announced its intent to acquire Antalis Promotional Products entities (Sequana group). The acquisition was completed on March 11, 2009, with an agreement for a total enterprise value of 33.5 million euros. After the purchase of Antalis Promotional Products, in June 2009, the Group announced the acquisition of Norwood Promotional Products. The acquisition was completed on July 6, 2009.

On January 21, 2009, BIC and Cello announced they had signed a definitive agreement whereby the Group acquired 40% of the Cello Writing Instrument business for 7.9 billion Indian rupees. Under the agreement, BIC had a call option in 2013 to increase its stake to 55%. This agreement was partially completed on March 5, 2009, for 3.8 billion Indian rupees.

In April 2009, BIC launched a worldwide cost reduction plan in response to the market slowdown. This initiative negatively impacted the full year 2009 EBIT by 34.4 million euros. The impact on profit was partially offset by the negative goodwill from the acquisition of Antalis Promotional Products. The net impact was 24.1 million euros.

On November 30, 2011, the Group acquired the assets of Angstrom Power Incorporated, a company specializing in the development of portable fuel cell technology.

In February 2012, the Group acquired land for the construction of a writing instrument facility in the fast-growing African and Middle-East region. Located in Tunisia (region of Bizerte). The total investment was 12 million euros.

In September 2013, the Group completed the acquisition of 40% of the final (7th) Stationery Cello Group entity for 3.7 billion Indian rupees (43.3 million euros)(16). On September 27, 2013, the Group announced it had exercised the call option on September 17 to increase its stake in the seven Cello Pens entities from 40% to 55% for 2.9 billion Indian rupees (35.2 million euros)(17).

In October 2013, BIC acquired land in Nantong, China (North of Shanghai) for the construction of a Lighter facility. The total investment is around 14 million euros.

In July 2014, BIC purchased shares to increase its stake from 55% to 75% in the seven Cello Pens entities for 4.3 billion Indian rupees (approximately 53 million euros)(18). This was as a result of the exercise by Cello Group of its put option in March 2014, allowing it to sell 20% of Cello Pens to the Group.

In October 2015, BIC presented an investment proposal intended to modernize its industrial facilities in the North of France (Pas-de-Calais). Planned for a five-year period, the project includes a 12 million euro investment to extend the production facility at Samer.

In December 2015, BIC increased its stake in Cello Pens to 100% for 5.4 billion Indian rupees (approximately 74 million euros)(19).

In October 2017, the Indian subsidiary BIC Cello acquired land and buildings for a new writing instrument facility in Vapi (Gujarat state). The total investment is around 28 million euros.

On December 31, 2018, BIC announced the transfer of the manufacturing facilities of Haco Industries Kenya Ltd. in Kenya and the distribution of Stationery, Lighters and Shavers in East Africa to BIC. This acquisition is in line with BIC’s continued growth strategy in Africa, one of the most promising markets for BIC® products worldwide.

On January 16, 2019, the Indian subsidiary BIC Cello inaugurated the new writing instrument facility in Vapi (Gujarat state).

On October 23, 2019, BIC completed the acquisition of Lucky Stationery in Nigeria (LSNL), Nigeria #1 Writing Instrument manufacturer. This acquisition is consistent with BIC’s continued growth strategy in Africa.

On July 1, 2020 BIC acquired Djeep. This acquisition aims to strengthen BIC’s position in the pocket lighters market and offers substantial growth opportunities in Europe and North America.

On December 15, 2020, BIC acquired Rocketbook, the leading smart and reusable notebook brand in the United States, entering the Digital Writing segment, a fast-growing market.

On  February 1, 2022, BIC completed the acquisition of Inkbox, the leading brand of high quality semi-permanent tattoos.

On August 2, 2022, BIC announced having completed the acquisition of Tattly a leading decal brand, diversifying BIC’s offering in the rapidly growing Skin Creative market. 

On September 6, 2022, BIC completed the acquisition in France of AMI (Advanced Magnetic Interaction), strengthening BIC's R&D capabilities in Digital Expression.